Johor continues to record positive investment figures through the first quarter of this year, despite the recent decline of the ringgit against the US dollar.

Johor Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said the state recorded 200 high-impact projects, that included foreign investments, during the first quarter period.

“Until March 31, the state government has approved more than 200 projects.

“The four sectors that have received the most investment are electrical and electronics manufacturing, food processing, chemicals and petrochemicals.

“Despite the decline in the ringgit’s value, the rate of economic growth and investment in the state still showed an increase,” Lee told reporters after the Rahmah Ramadan Bazaar Walkabout Programme and breaking fast event at Taman Perling here yesterday.

Also present was the Domestic Trade and Cost of Living Ministry’s state director Lilis Saslinda Pornomo.

Earlier, Lee was commenting on Johor’s promising investment figures despite the ringgit’s depreciation which usually signals the likelihood of lacklustre economic growth.

The Paloh assemblyman said that Johor’s promising development shows that the state government is confident of surpassing the record of 751 approved investment projects worth RM43 billion recorded throughout the past year.

He added that the state government is also optimistic about a rapid economic recovery through several large infrastructure projects that are in the works, including the widening of the North-South Expressway which will start in June, followed by the widening of the Senai-Desaru Highway which will start in September.

“At the same time, we will also be co-signatories for the Malaysia-Singapore agreement on the Johor-Singapore Special Economic Zone and the special financial zone initiative in Forest City.

“With the various infrastructure development as well as private sector cooperation, we expect Johor’s economy to improve and to some extent contribute to the national economy,” he said.

Last month, it was reported that the recent depreciation of the ringgit was largely driven by the strengthening of the US dollar and the uncertainty of China’s economic growth.

The Finance Ministry said that this factor also affects other regional currencies.

Source: Malay Mail

Johor exco says state continues to record positive investment numbers despite ringgit’s decline

The government is calling on local companies to explore new markets via the country’s free trade agreements (FTAs), said Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz.

The minister said the Malaysia External Trade Development Corporation (MATRADE) has been tasked to focus on securing new markets.

“We are also looking at the EU now and we want to initiate discussions on the EU-Malaysia FTA. I hope the FTA will bring in something. Soon (we are also going) to resume the FTA (talks) with South Korea,” he said at the ministry’s breaking of fast event with orphans, organised by Mamee-Double Decker (M) Sdn Bhd.

Speaking on the halal industry, Tengku Zafrul said the industry is an important part of MITI’s focus via the Halal Development Corporation (HDC) and that the companies involved should feel free to work closely with the agency in expanding their businesses in this area.

“We just did a roadmap for HDC for halal development. The target for the global halal market is worth US$5 trillion and we want to make sure that we capture it as we are in a good position (to capture the market share),” he added.

Source: Bernama

Govt calls on Malaysian companies to take advantage of FTAs and explore new markets

The East Coast Economic Region (ECER) Development Council (ECERDC) has realised investments totalling RM41.4 billion up to March 2024, or 84 per cent of the RM49 billion target under the ECER Master Plan 2.0 (EMP 2.0).

These investments have created 68,000 job opportunities and 23,000 entrepreneurial opportunities in ECER, Prime Minister Datuk Seri Anwar Ibrahim said in a post on his Facebook page today.

“During the same period, ECERDC also achieved RM55.2 billion in committed investments, or 79 per cent of EMP 2.0’s target of RM70 billion,” he posted after chairing the first ECERDC meeting for 2024, which was also attended by the Menteris Besar who sit on the council.

Anwar, who is also the Finance Minister, said he emphasised the important role played by economic corridor authorities in investment facilitation along with the Malaysian Investment Development Authority.

He said governance for planning and completing projects through the economic corridor authorities also needs to be refined by the relevant ministries prior to approvals.

Therefore, the meeting has agreed to establish an executive committee (exco) to study and make decisions on all operational matters for ECER development.

“The formation of this exco will enable the ECERDC to focus more on strategic and policy matters in the ECER socioeconomic development,” he added.

Source: Bernama

PM: Investments worth RM41.4b realised by ECERDC up to March 2024

The country recorded foreign investment amounting to RM188.4 billion last year, marking a 15.3% increase from 2022, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said domestic investment contributed RM141.1 billion, reflecting a 35.1% increase from the previous year.

Foreign investment accounted for 57.2% of the total investment of RM329.5 billion approved in 2023, while domestic investment represented the remaining 42.8%.

“We aim to expedite the realisation of approved investments to maximise their spillover effects on the national economy.

“By actualising the approved investments, we can create better job opportunities with higher wages for Malaysians,” Liew said during a question-and-answer session in the Dewan Negara on Monday.

He was replying to Senator Datuk Lim Pay Hen’s query regarding the amount of investment successfully secured by the government throughout 2023.

According to Liew, the country previously recorded high investment amounts without prioritising localisation.

“This time, the government aims to ensure that incoming investments generate quality jobs with higher wages, and prioritises localisation to benefit local entrepreneurs from foreign investment,” he added.

Source: Bernama

Malaysia saw RM188.4b foreign investment, RM141.1b domestic investment last year, says Liew

The United States (US) Ambassador to Malaysia Edgard D Kagan has expressed confidence in the continued investments of American firms in Malaysia, attributing their interest in the country’s market potential and its integration into global trade networks.

He underscored the enduring economic partnership between the US and Malaysia and highlighted the significant investments and job opportunities generated by American companies in the region.

“We are very proud that US investments in Malaysia have created over 300,000 jobs,” he said on Bernama TV’s The Nation programme on Monday.

He said Malaysia has benefited extraordinarily from global trade and has prospered as a result of its engagement in international trade.

“One of the things that became very clear during the pandemic was that there were challenges in areas, for instance, like supply chains, which traditional trade didn’t really address,” he said.

Kagan also highlighted the importance of Malaysia’s participation in the Indo-Pacific Economic Framework (IPEF) and emphasised Malaysia’a role in shaping international trade norms and standards.

IPEF encompasses 14 countries in the Indo-Pacific region, representing about 40% of global gross domestic product (GDP).

It was set up under US President Joe Biden’s administration to address long-term economic issues, enabling partners to nimbly respond and keep pace with new global challenges and opportunities.

The 14 countries are Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the US and Vietnam.

He said these countries are extraordinarily important and are not limited to those that are part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comprising Malaysia, Vietnam, Brunei, Singapore, Indonesia, Thailand and the Philippines.

“We are going to grow,” Kagan said, referring to the IPEF.

“I think that having a seat at the table, helping shape the outcomes, reflects Malaysia’s long-standing engagement on trade,” Kagan said.

He also pointed out that Malaysia’s long-standing engagement in helping set the norms that govern international trade sends a signal to investors that Malaysia wants to be part of setting the highest possible standards.

“You can see the impact of that by the initiatives, the additional flows of investment from American companies into Malaysia since the IPEF was announced,” he said.

Kagan also highlighted the strong US-Malaysia economic ties, citing over RM150 billion worth of foreign direct investments (FDIs) since 2021. The US is the top investor in Malaysia.

Source: Bernama

Malaysia’s market potential drives continued US investments — Ambassador

The implementation of targeted subsidies in the future, as considered by the government, will not affect foreign investments in the country, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the implementation, if carried out, would not affect foreign investments because investors have invested for the long term.

The investors, he said, focus more on looking at the policies as well as national policies that are consistent before deciding to invest in this country.

“For example, I mention the semiconductor sector…this sector started in the 1970s and it has been 50 years, and that is the focus for our investors to see how the country’s policies are, if consistent, they will invest.

“In terms of costs, we are still low compared to other countries because most companies do not receive targeted subsidies.

“Therefore, even if the subsidies are withdrawn for large companies, they and also investors will compare us with other countries, and our country is still attractive in terms of costs,” he told reporters after the Ihya Ramadan and Iftar event at Masjid Jamek Al Ansar, Felcra Changkat Lada near here, today.

Tengku Zafrul said this when asked if the implementation of targeted subsidies that is being considered by the government would affect foreign investments in Malaysia.

Earlier, he presented contributions to the asnaf group and prospective Hajj pilgrims at the event.

Meanwhile, regarding the Malaysia-Korea Free Trade Agreement (MKFTA), Tengku Zafrul said both parties will begin discussions at the officials’ level in May this year.

“We have just agreed to resume our negotiations because in 2019 the negotiations were suspended due to issues that we felt were not favourable to our side.

“In the discussions before we resume, the Korean side has agreed to consider and understand sensitive issues, especially in sectors we feel are important in the country, so we resume.

“There are no details yet, maybe after the May meeting I can provide an update,” he said.

On March 26, 2024, the Investment, Trade and Industry Ministry announced that Malaysia and South Korea have resumed the MKFTA, which is set to increase bilateral trade and investment between the two countries.

According to the ministry, both countries are also parties to the ASEAN-Korea FTA and the Regional Comprehensive Economic Partnership (RCEP) agreement.Apart from that, regarding the electric vehicle (EV) charging stations in the country, Tengku Zafrul said his discussions with the relevant parties found that they are confident in building more charging stations due to high demand.

“I am trying to ensure that we can achieve the targets,” he said.

Tengku Zafrul was reported saying that the ministry would review the target of 10,000 EV charging stations operating in the country by 2025 as previously set. 

Source: Bernama

Targeted subsidies implementation will not affect foreign investments, says Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim stressed today that Malaysia must have clear and responsible investment policies to attract foreign investors.

He said when he was in Germany to lead a Malaysian delegation on an official visit recently, many investors wanted an explanation from Malaysia regarding its policies.

“As a result, many have expressed their interest to invest in Malaysia, and they want to come to Kulim and Johor,” he said in his speech before breaking fast at Masjid Al-Muttaqin here.

“Many investors have picked Sarawak in terms of energy transition.”

He noted that Sarawak has a clear policy, coupled with political stability and strong leadership that concentrates on the development of the country, adding that it knows how to choose green and renewable energy that is required by the world.

“Then there is the question of digitalisation that the state government is currently undertaking.

“I raise this issue because sometimes we, especially in Peninsular Malaysia and among the Muslim community, are still stuck with old issues…always wanting to quarrel and be angry at other people,” he said.

The prime minister took a swipe at social media that blew out of proportion minor differences.

“We should learn from Sarawak. The state is peaceful, we see here all the communities are here. The Malays, Dayaks, Melanaus, Orang Ulu and Chinese live peacefully and in harmony,” he said referring to those who attended the event.

He said this means that there exists a spirit of racial unity in Malaysia, and certainly Sarawak has this kind of spirit.

“That is why I have said earlier that when there is political stability in Malaysia we can concentrate on implementing our main policies,” he said.

Source: Malay Mail

Malaysia must have clear and responsible investment policies to attract foreign investors, says PM Anwar

Selangor has attracted the highest investment value in Malaysia, totalling RM231.7 billion between 2019 and 2023, according to recent data by the Ministry of Investment, Trade and Industry (Miti).

In a written parliamentary reply, its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Selangor’s investment haul contributed 18 per cent of the total RM1,285.5 billion approved nationally during the period.

This was followed by Penang (RM221.5 billion or 17.2 per cent) and Johor (RM162.4 billion or 12.6 per cent).

Combined, the three states accounted for nearly half (47.9 per cent) of all approved investments in Malaysia from 2019 to 2023.

“Of the overall 24,231 projects (from total investment), it is expected to create 611,705 new job opportunities, with foreign investment contributing RM709.5 billion (55.2 per cent), while domestic investment amounted to RM576 billion (44.8 per cent),” said Tengku Zafrul in a written reply dated March 27, responding to a question from Paya Besar MP Datuk Mohd Shahar Abdullah, who asked the ministry to provide investment values and returns by state and district from 2013 to 2023.

In terms of other states, Kuala Lumpur received RM159.8 billion, followed by Kedah (RM129.9 billion) and Sarawak (RM104.8 billion).

Sabah, Perak, and Negeri Sembilan accumulated RM62.4 billion, RM39.6 billion, and RM39.4 billion in investments, respectively.

Meanwhile, Pahang, Melaka, and Terengganu recorded RM36.9 billion, RM25.9 billion, and RM12.6 billion, respectively.

Smaller contributions in states such as Kelantan, WP Putrajaya, WP Labuan, Perlis, and others recorded a total of RM45.7 billion in investments.

Source: Selangor Journal

Selangor leads in investment growth, RM231.7 bln recorded from 2019 to 2023

Malaysia remains steadfast in its commitment to reforming the economy while embracing innovation and sustainable development, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah said under the visionary leadership of Prime Minister Datuk Seri Anwar Ibrahim, Malaysia is embarking on an ambitious agenda of economic transformation driven by the principles of inclusivity, innovation, and sustainability.

“Central to our vision is the BRI (Belt and Road Initiative), which presents unprecedented opportunities for collaboration between Malaysia and China in various fields, including infrastructure development, connectivity, trade facilitation, and people-to-people exchanges.

“By leveraging the synergies between our economies and harnessing the transformative power of the BRI, we can unlock new avenues of growth, create jobs, and improve the livelihoods of our people,” he said in his keynote address at The Silk Road and Asian Civilisation Forum 2024 here, today.

Also present were Deputy Investment, Trade and Industry Minister Liew Chin Tong, Communist Party of China’s (CPC) International Liaison Department Minister Liu Jianchao, and Chinese Ambassador to Malaysia Ouyang Yujing.

Fadillah said that at the heart of Malaysia-China bilateral relations lies a robust framework of trade and investment that has served as the cornerstone of economic cooperation between the two nations.

He said in 2023, China continued to be Malaysia’s largest trading partner and had remained so for 15 consecutive years since 2009, taking up 17.1 per cent share of Malaysia’s total trade.

“China was also Malaysia’s largest import source, absorbing 21.3 per cent share of total imports. Imports from China stood at RM258.63 billion with major imports comprising E and E (electrical and electronics) products, machinery, equipment and parts, as well as chemicals and chemical products,” he said.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said Malaysia is fully committed to promoting green energy and environmental sustainability as integral components of its development agenda.

He said Malaysia and China were also poised to lead the way in promoting green energy and renewable resources, and both nations are committed to investing in clean energy technologies, such as solar, wind, and hydroelectric power.

“Through collaborative efforts and knowledge-sharing initiatives, we aim to harness the vast potential of green energy to reduce greenhouse gas emissions, mitigate the adverse effects of climate change, and create a more sustainable future for our planet.

“By prioritising innovation and sustainable development in the energy sector, Malaysia and China are not only contributing to global efforts to combat climate change but are also unlocking new opportunities for economic growth and prosperity,” he said.

Source: Bernama

Belt and Road Initiative central to Malaysia’s economic makeover

The Melaka government is on track to meet its RM10 billion investment target this year by focusing on 10 key industries.

State Economic Planning, Finance, Land Affairs, Non-Government Agencies, Investment, Industry and Development of Technical and Vocational Education and Training (TVET) Committee chairman Datuk Khaidhirah Abu Zahar said the sectors include electrical and electronics, automotive, aerospace, oil and gas, renewable energy, halal manufacturing, biotechnology, machinery and equipment, pharmaceuticals and shipping.

“This target is a challenge to ensure that Melaka remains relevant as a prime investment destination in the country.

“To achieve this goal, the Academy in Industry (AiI) programme is one of the initiatives that can boost the growth and productivity of the industrial sector in the state,” she told reporters here today.

Khaidhirah added that the AiI programme can help improve the quality or skills of the workforce, especially for the industrial sector to reduce dependence on foreign labour and enable Melaka residents to fill the jobs offered by industry.

She called on more industries in the state to participate in the AiI programmes as it shows the serious commitment of the state government to attract more foreign investors to the state. 

Source: Bernama

Melaka aims for RM10b investment, focuses on 10 key sectors, says exco

The government aims for the Northern Corridor Economic Region (NCER) to record RM367.8 billion in realised investments by 2030 through three new focus areas.

Prime Minister Datuk Seri Anwar Ibrahim said NCER plans to become a world-class economic and technological hub through three new areas of focus — advanced services, high value manufacturing and modern agriculture.

He said the two drivers of change that will support the plan are Environmental, Social and Governance (ESG) practices and applying digital usage.

At the 31st Northern Corridor Implementation Authority (NCIA) meeting he chaired on Wednesday, the prime minister said he had examined the main issues related to the NCER Strategic Development Plan 2024-2030.

“From 2021 to 2022, NCER contributed 34% (RM197 billion) of the total approved investments,” he noted in a post on X (formerly known as Twitter) on Wednesday.

Anwar said the meeting also discussed the “Facilitation@NCER” initiative to drive and realise investments in the corridor region. “This will involve coordination with the Malaysian Investment Development Authority (Mida) for ease of access to information, management of investment relationships, adjustment of services and use of the On-Track digital management platform,” he added.

The meeting was also attended by Deputy Prime Minister and Minister of Rural and Regional Development Datuk Seri Dr Ahmad Zahidi Hamidi as well as the relevant menteris besar as NCIA council members.

Source: Bernama

PM: Govt eyeing RM368b in realised investments for NCER by 2030

The Northern Corridor Economic Region (NCER) will be developed into a world-class economic and technological hub, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said this will be realised through a focus on three industries, namely advanced services, high-value manufacturing, and modern farming.

“The two catalysts for change that will support this endeavour are environmental, social, and governance (ESG) practices and digitalisation,” Anwar said after chairing a Northern Corridor Implementation Authority meeting.

Anwar said the government aims to realise RM367.8 billion in investments in the NCER by 2030.

Earlier, Anwar said he chaired the NCIA meeting which was also attended by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Menteris Besar of the northern states including Perak, Kedah, Perlis, and Penang.

The meeting discussed the NCER strategic development plan 2024-2030.

“Between 2021 and 2022, the NCER has realised 34 per cent (RM197 billion) from approved investments.

“The meeting also discussed the “Facilitation@NCER” initiative to further catalyse and realise investments in the NCER,” said Anwar, adding this involved coordination by the Malaysian Investment Development Authority (MIDA).

Source: NST

Northern Corridor Economic Region to be world-class economic and tech hub, says PM

The Small and Medium Enterprises Association (Samenta) Malaysia has expressed confidence in the ability of the government’s plans for the Northern Corridor Economic Region (NCER) to bolster the economy.

Its national president, Datuk William Ng, said capitalising on Penang’s “lion’s share” of the country’s Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) over the past decade is a strategic move to stimulate growth in neighbouring states.

“With the semiconductor and medical devices sectors spurring growth in Kedah and Northern Perak, and considering the region’s rich natural attractions such as ancient forests, pristine beaches, and archaeological sites, the northern states are poised to become a tourism hub,” he told the New Straits Times.

However, Ng said it is essential to have unity among state governments — especially given their diverse political affiliations — in driving economic progress.

“This entails maintaining policy transparency and continuity, as well as instilling confidence in both local and foreign investors that their investments will be secure, irrespective of changes in administration.

“If successfully executed, the Northern Corridor has the potential to replicate the growth seen in the Klang Valley and stem the outflow of talent to both the Klang Valley and neighboring countries.”

Earlier, Prime Minister Datuk Seri Anwar Ibrahim said the NCER will be developed into a world-class economic and technological hub.

Anwar said this will be realised through a focus on three industries: advanced services, high-value manufacturing, and modern farming.

He said the government aims to realise RM367.8 billion in investments in the NCER by 2030.

Source: NST

Samenta upbeat on govt plans for NCER

Since the start of the US-China trade war in 2018, companies reliant on China’s manufacturing surge have been actively exploring alternatives to diversify their supply chains. Southeast Asia has emerged as a prime destination for several compelling reasons. The region boasts a youthful workforce, varied industry specialisations, abundant raw materials and a strategic geographical position that facilitates efficient service to both Western and Eastern markets. Notably, media reports highlight that a substantial 60% of Samsung mobile phones are currently manufactured in Vietnam, while Apple has shifted a portion of its latest iPhone production to India.

The momentum behind the relocation of industries away from China is fuelled by a combination of factors. First, the persistent trade tensions between the US and China show no signs of abating, even amid the Covid-19 pandemic. These tensions have expanded beyond traditional trade realms to encompass high-tech, finance, geopolitics and other sectors. Many multinational firms are increasingly concerned about potential high sanction risks that the US might impose on their operations in China.

Secondly, the global supply chain disruptions and shortages experienced by advanced countries during the pandemic have prompted governments and companies to re-evaluate the security of their supply chains, especially those heavily reliant on China. Furthermore, China’s de facto nationwide lockdowns in the latter half of 2023 have intensified the determination of multinational firms to diversify their supply chains rather than solely relying on China. This cautious approach was spurred by the recognition that concentrating all operations in China entails significant risks.

The pandemic also exacerbated the challenges within China’s business environment. In addition to strict human mobility restrictions, Chinese authorities implemented sweeping regulatory measures in 2021, affecting various sectors including real estate, private education, online gaming and financial technology (fintech). This regulatory crackdown has prompted international investors to question the viability of China as a conducive business environment.

What is China + 1, and can Malaysia stand to benefit?

The “China + 1” strategy involves companies diversifying their supply chains by establishing an additional manufacturing or production base outside of China. This strategic approach aims to reduce dependence on China as the sole manufacturing hub, thereby mitigating risks associated with trade tensions, supply shortages and regulatory changes within China.

Is Malaysia well-positioned to benefit from supply chain diversification?

To assess this, we compare Malaysia with its regional counterparts as potential investment destinations for diversification efforts. Among our regional peers actively seeking foreign direct investment (FDI) in the context of supply chain diversification are Indonesia, Thailand and India. According to the International Institute for Management Development World Competitiveness Ranking, Malaysia ranks 27th out of 64 countries. This ranking places Malaysia ahead of Indonesia, Thailand and India, suggesting a favourable environment for investment and business operations.

At a categorical level, Malaysia has the strongest economy and infrastructure among the four countries; however, it trails behind Thailand in government efficiency and records the lowest rank in business efficiency. Government and business efficiency are integral components of soft infrastructure that are crucial for fostering FDI and facilitating business formation. Our shortcomings in these aspects, attributed to regulatory inefficiencies, protectionist policies, brain drain challenges and a lack of local business adaptability to global trends, contribute to our diminished performance in these metrics. These challenges impede our capacity to capitalise on global trends and attract investments seeking destinations beyond China.

A closer examination of the shifts in rankings over the years provides intriguing insights. Despite notable advancements in all fundamental aspects in 2023, our standings in categories, apart from economic performance, demonstrate a decline compared to pre-Covid levels.

This prompts a critical evaluation of the factors influencing our rankings across diverse criteria. While our efforts have evidently improved our economic indicators, strategic reassessment and targeted interventions are needed to address the areas where our performance lags behind pre-pandemic benchmarks.

What builds our past resilience?

This raises the issue of our economic resilience. Our continual strong economic performance today is built upon solid economic foundations that emerge from three key factors.

First, our abundant natural resources have been a significant contributor to our economic prosperity. The oil and gas sector alone constitutes approximately 20% of Malaysia’s gross domestic product  and serves as a primary source of government fiscal revenue. This industry has played a crucial role in supporting various aspects of the economy, funding both operational and developmental expenditure. While lucrative, this coffer is threatened by the escalating global concerns regarding climate change, posing the risk of rendering this sector obsolete and unprofitable in the future.

Secondly, during the past era of good governance, we have successfully established a substantial manufacturing hub, particularly focused on electronics. This strategic move has consistently driven economic growth and employment. The current economic prosperity is a testament to past policies that continuously fuelled our economic engine. Nonetheless, this momentum may wane if we fail to keep pace with evolving global trends.

Thirdly, the rise of Malaysia in the past decades happened in tandem with the lacklustre development of our neighbours. In the epoch of the country’s industrialisation, we were one of the most appealing countries in the region. Our strength lay in political and economic stability, coupled with a young and competitive workforce. However, this landscape is evolving. Vietnam, Indonesia, Thailand and the Philippines have emerged as formidable contenders, challenging Malaysia across various dimensions of economic vibrancy. These countries are offering liberalised trade regulations, young and adaptable workforces, streamlined business setups, accessible foreign visas and a notable absence of protectionist policies, among other factors.

Building up economic fundamentals to drive growth

Foremost, we need to acknowledge that our current strong economic performance is an outcome of our historical legacy. In the face of intensifying global competition, we cannot hinge our progress solely on past achievements.

Adapting to a shifting global landscape demands resilience, competitiveness and dynamism. To harness the advantages of supply chain diversification, we must construct a sturdy economic foundation that propels investment and fosters growth. The fundamental building blocks for achieving this are as follows.

1.     Enhance investment promotion to attract high-value firms: Elevate efforts to draw top-tier anchor companies to Malaysia, particularly in key sectors such as green technology, digital enterprises, agritech, semiconductor manufacturing and the halal industry. This effort will be complemented by tax incentives such as pioneer status, investment tax allowances and reinvestment schemes.

2.     Remove protectionist policies for foreign firms: Tesla’s exemption from the minimum 30% equity ownership by bumiputera should be expanded to include all foreign investments.

3.     Ensure governance and policy stability: Uphold consistency and predictability in trade policies to mitigate uncertainty for businesses, particularly during the period of political transition. A stable regulatory environment is crucial to attract foreign investment and nurture a robust trade ecosystem.

4.     Streamline regulatory processes: Simplify regulatory frameworks and expedite bureaucratic procedures to eliminate barriers that deter foreign investors. A complex regulatory environment or slow bureaucratic processes deter foreign investors who may find setting up business easier in other Southeast Asian nations.

5.     Enhance workforce education and training: Invest in upskilling and reskilling programmes to equip the local workforce with the skills needed for higher-value jobs. Addressing the current reliance on low to middle-skilled labour through broadened educational initiatives will contribute to national workforce development.

6.     Facilitate visa requirements: Implement easier visa processes, including long-term stay visas and foreign worker visas, to attract talent from abroad. Encouraging the influx of foreign workers to complement our existing market should be encouraged to address skill gaps, facilitate knowledge transfer and alleviate manpower shortages.

Malaysia’s strategic location in Southeast Asia and its well-developed infrastructure make it an attractive alternative for companies looking to diversify their supply chains. The country’s strong trade ties, especially within the Asean region, provide an excellent platform for companies to access other regional markets.

To capitalise on the potential of supply chain diversification, it is imperative for the country to enhance its economic foundations, aiming not only to match but surpass the benchmarks set by neighbouring countries. This strategic approach will enable Malaysia to assert itself as a prominent trade partner and sought-after investment destination, not only in the US and China but also across various regional markets.

Doris Liew is an economist, public policy thinker and environmentalist at Penang Institute who regularly observes Asean’s economic development, policy frameworks and regional and international trade dynamics

Source: The Edge Malaysia

Positioning Malaysia to receive FDI from global supply chain diversification

Malaysia and Chile can boost bilateral ties by tapping into new sectors such as renewable energy, tourism, and education while maintaining a positive momentum in the existing areas.

Natalia Arcos, international director of the Chilean government’s export promotion agency ProChile,  said that collaborations in solar and wind energy projects, technology sharing, and the promotion of sustainable policies in the renewable energy sector could significantly benefit both nations.

“In tourism, the countries could develop integrated packages and promote joint tourist destinations. In education, they could facilitate student exchanges and establish joint research programmes, strengthening academic ties,” she told Bernama.

Arcos said that these areas of collaboration would not only broaden the scope of bilateral relations but also promote mutual and sustainable development between the two countries.

Halal certification is vital for Malaysia-Chile trade, given Malaysia’s large Muslim consumer base.

According to Arcos, sectors such as halal-certified food products will likely continue driving trade between the two countries.

Chilean exporters who meet these standards stand to benefit, but maintaining and expanding Chilean product presence in Malaysia requires top-notch quality and adaptability to local preferences.

Arcos emphasised that Malaysia and Chile need to explore new opportunities in emerging industries such as technology and innovation to strengthen their economic ties.

“Collaboration in research and development, as well as knowledge sharing in cutting-edge areas, could boost the competitiveness and capacity of both countries to meet the economic and technological challenges of the future.

“In addition, strengthening ties in sectors such as health, biotechnology, and the digital economy could open new prospects for bilateral cooperation and sustainable economic growth,” she noted.

Arcos said Chile is seeking to diversify its export basket and looking at new opportunities for Chilean exporters. The South American country is currently exporting more than 4,000 goods and services to about 190 destinations worldwide.

She said exports play a vital role in Chile’s economy, serving as a key driver of employment and economic growth.

“Exports are important for Chile, both for employment and economic growth.

“Exports currently contribute 36 per cent of the country’s gross domestic product, involving more than 7,700 companies, of which 35 per cent are small and medium enterprises, and generating more than 1.1 million jobs,” she added.

ProChile is an agency under Chile’s Ministry of Foreign Affairs.

Source: Bernama

Chile keen to boost ties with Malaysia by exploring new trade sectors

Germany has chosen Malaysia to be its export and trade hub, apart from China, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said this comes after the trade war between the United States and China, which had impacted the global economy, especially to countries that export to China, including Malaysia.

“Germany’s policy is to de-risk, meaning to reduce risk and not rely on only one country, so they chose other countries (to trade with).

“So, at this moment, Germany has chosen Malaysia as their export and trade hub, apart from China, and this will help us.”

He said this in his reply to a supplementary question from Jimmy Puah Wee Tse (Pakatan Harapan-Tebrau), who had asked about how the trade war would affect Malaysia’s economic growth.

Anwar added that the Investment, Trade and Industries Ministry (Miti) had seen an increase in official visits from foreign trade ministers, including three this week.

He said the Madani government’s clear policies and stable politics made Malaysia an attractive destination for both domestic and foreign investors.

He said the success that the country achieved in attracting investment was a collaborative effort between Miti, the Foreign Ministry and the whole government machinery.

“Malaysia managed to do this because of our stable politics, and clear Madani Economy policies.

“We have a clear industrial plan, an energy transition plan, a digital transformation plan, and a food security programme.

“Secondly, it is because of the speed of approvals. There have been remarks that there is too much bureaucracy, so at the federal-level, only one agency, which is Miti, that will coordinate,” he added.

Source: NST

Malaysia is Germany’s choice as a trade, export hub

South Korea’s Trade Ministry said Tuesday (March 26) it has agreed with Malaysia to resume bilateral free trade agreement (FTA) talks that have been stalled since 2019.

Trade Minister Cheong In-kyo (pic) and his Malaysian counterpart, Tengku Zafrul Aziz, made the announcement during their meeting in Kuala Lumpur, according to the Ministry of Trade, Industry and Energy, reported Yonhap news agency.

The two countries agreed to seek a bilateral FTA in 2019 but related negotiations have been stalled after holding three rounds of talks that year.

South Korea and Malaysia also agreed to expand the scope of the envisioned FTA to cover new areas, such as service, investment, digital and biotechnology, the ministry added.

Malaysia is the third-largest trade partner for South Korea in South-East Asia.

South Korea already has an FTA with the Association of Southeast Asian Nations (Asean), but the country is seeking to broaden economic ties with individual members through separate free trade deals.

“As the two countries hold a mutually beneficial trade portfolio, the FTA will significantly strengthen South Korea’s ground for trade and investment in the Asean bloc,” the ministry said in a statement.

Source: The Star

S. Korea and Malaysia to resume free trade talks

Malaysia remains a preferred destination for foreign direct investment (FDI) in the region and has attracted increasing interest from multinational corporations aiming to diversify their footprint strategically, says DHL Express Malaysia and Brunei managing director Julian Neo.

Due to the recent geopolitical developments, omni-sourcing has been a key focus for companies across industries as it strengthens supply chain resiliency, he said.

“Contract manufacturers continue to move into the country and we have observed similar expansion by those already here,” he replied to a Bernama question via email.

Citing news report, Neo said Penang alone has attracted over RM60bil in FDI last year, more than the total received for 2013 to 2020 combined.

He said Malaysia’s key strengths include easy access to key Asian markets, robust consumer demand for international goods and services, institutional support, well-developed infrastructure, sound legal framework, English-speaking and digitally native talent, as well as liberal trade agreements.

“Therefore, it is no surprise that the country is rated among the best for globalisation,” he added.

According to DHL Group’s latest Global Connectedness Report launched on March 13, 2024, Malaysia ranks 26th out of 181 economies, attributable to the growth of its trade flows (imports and exports, across both goods and services) and increases in FDI flows (inward and outward).

Asked if the 6% service tax on logistics services that came into effect on March 1, 2024 would affect the company’s business in the country, Neo shrugged off the concern, saying that the service tax only applies to domestic shipments and excludes international ones, which is the main remit of DHL Express Malaysia.

“Regardless, implementation of the service tax has long been a topic of conversation within the logistics industry and we remain in close dialogue with the relevant authorities.

“At the same time, we have maintained open lines of communication with customers to provide the necessary guidance and support towards a smooth transition,” he added.

Source: The Star

Malaysia still a preferred destination for FDI in the region

Three mega projects have the capacity to elevate Perak to be among the major states buttressing national economic growth, said Prime Minister Datuk Seri Anwar Ibrahim.

Expressing his confidence, Anwar said that these three projects – the Automotive High Tech Valley (AHTV) in Tanjung Malim, Lumut Maritime Industrial City (Lumic), and the Kerian Integrated Green Industrial Park – would help Malaysia’s economy emerge strongly in Asia.

“Three mega projects in Malaysia are based in Perak. Perak, compared to Johor, Penang, and Selangor, is slightly lagging behind, but with the programmes and emphasis taken by the Saarani team (Perak Menteri Besar Datuk Seri Saarani Mohamad), we believe that in a few years, Perak will emerge as a major state in this country.

“I was informed earlier that there are still about 4,000 people classified as hardcore poor in Perak, but we believe with the determination of the Menteri Besar’s team, Perak will eradicate poverty in no time,” said Anwar.

Also present were Saarani, Minister of Higher Education Datuk Seri Zambry Abdul Kadir, Majlis Amanah Rakyat (MARA) chairman Datuk Seri Asyraf Wajdi Dusuki and 300 KPTM students.

Anwar said that foreign investments in Malaysia demonstrate that the government’s vocal stance on humanitarian issues does not deter investors from continuing to show trust in the Malaysian economy, thus repositioning the country as a great nation in Asia.

“Why? Because of stable infrastructure, clear economic policies, and political stability. The MADANI economic policy, which prioritises the welfare of the people, adds to investor confidence,” said the Prime Minister.

At the same time, he reminded the youth to set aside politics of hatred.

“Enough with rising hatred politics, let us rise together to become good citizens, increase knowledge, master good fields, and make Malaysia a country to be emulated and admired by the world,” he said.

At the same event, Anwar, who is also the Member of Parliament for Tambun, handed over contributions totalling RM291,000 to 34 mosques and 35 surau within the Tambun parliamentary constituency.

The contributions is hoped will assist the mosque and surau committees in implementing planned Ramadan activities.

The Prime Minister then performed the Maghrib prayer in congregation with the guests present.

Source: Bernama

PM identifies three mega projects to propel Perak’s economic growth

There is a need to be proactive in attracting the right investments to the country, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

He pointed out that among the new and promising economic sectors to attract more investments included green hydrogen, Carbon Capture Utilisation and Storage (CCUS), and renewable energy.

“With this, there must be targeted incentives and steadfast policies to facilitate the growth of these industries,” he said during his meeting with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz in Kuala Lumpur yesterday.

Awang Tengah, who is state International Trade, Industry and Investment Minister, also discussed various matters of common interest with Tengku Zafrul including showcasing Sarawak as the green and renewable energy hub for the region.

Both leaders also agreed to work closely together to attract more investments to Sarawak.

Also present were Awang Tengah’s deputy minister Datuk Dr Malcolm Mussen Lamoh, his ministry’s advisor Dato Sri Naroden Majais and permanent secretary Dulkornain Masron, Regional Corridor Development Authority chief executive officer Datu Ismawi Ismuni, and InvestSarawak chief executive officer Timothy Ong.

Source: Borneo Post

Attracting right investments requires govt to be proactive, says Awg Tengah

Malaysia has experienced a 25 per cent increase in bilateral trade with Canada since 2018, particularly since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the CPTPP has led to a notable uptick in the issuance of Certificates of Origin (CO) by Malaysian businesses for exports to CPTPP partners, including Canada.

“I am pleased to share that Canada is also the second largest export market for trade in services after the US in 2022, valued at RM110 million, with the two largest components being on transport and travel.

“I believe events such as today’s Business Forum could begin or expand collaborative partnerships between our two countries’ businesses and investors, and what better way to do so than through the CPTPP platform and trade missions such as the Team Canada Trade Mission (TCTM),” he said at the launch of the mission here today. 

Beyond CPTPP, Tengku Zafrul said Malaysia is also optimistic on additional trade potential via the Asean-Canada Free Trade Agreement (ACaFTA), of which Malaysia is also a party and coordinating country. 

Malaysia looks forward to ensuring the success of the ACaFTA when Malaysia takes over Asean’s chairmanship in 2025, he added. 

In terms of investments, Tengku Zafrul said Malaysia is proud to host Canadian companies like Celestica and Sun Life which have been thriving here for more than a decade. 

As of today, he said a total of 96 manufacturing projects with Canadian participation had been implemented, with total investments worth US$ 274 million.

“The top three sectors for Canadian investments are E&E, basic metal products, and wood and wood products. I am also delighted to share that these projects have generated employment for 11,027 people.

“The TCTM today is a platform to up our game on both trade and investment. We invite Canadian businesses to consider Malaysia as your main trading and investment partner in this region,” he added.

The trade mission seeks to expand and deepen Canada’s existing partnerships in the region. 

The strategic objective of the mission is to expand trade, investment and supply chain resilience including through expanding Canada’s trade network at home and abroad, paving the way for long-term growth and prosperity.

Source: NST

Malaysia’s trade with Canada jumps 25pct since 2018: Tengku Zafrul

The East Coast Economic Region Development Council (ECERDC) has successfully realised investments worth RM2.4 billion in Terengganu as of March 2024.

Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar said the investments included in the fields of iron and steel manufacturing, napier cultivation, pulp mills and food containers which created 5,000 job opportunities for the locals.

He said the value of the investments represented 57 per cent of the RM4.2 billion investment target set by ECERDC for the state of Terengganu this year.

“ECERDC also managed to attract new committed investments worth RM1.02 billion in the oil; gas and petrochemical sectors (RM940 million); services (RM50 million); tourism (RM20 million) and manufacturing (RM10 million) as of March.

“A total of 65 per cent involved foreign direct investments (FDIs) with the highest investment received from Japan which was RM660 million,“ he said in a statement after chairing a meeting of the Implementation and Coordination Committee (ICC) of the East Coast Economic Region (ECER) here today.

Also present at the ICC meeting were Terengganu state secretary Datuk Seri Tengku Farok Hussin Tengku Abdul Jalil; secretary of the development division of the Prime Minister’s Department, Datuk Jazmanie Shafawi; and ECERDC chief executive officer Datuk Baidzawi Che Mat.

Baidzawi said the ICC meeting also discussed the development of the recreational vehicle (RV) industry in an effort to make Malaysia an RC hub in Asia Pacific by 2025.

According to him, several locations have been identified to be developed as RV parks in Terengganu.

“ECERDC has also signed a memorandum of understanding (MoU) with a leading power generation company from China.

“For the Kuala Terengganu airport road (KTAR) project, progress has reached 37 per cent as of February 2024,“ he said.

Meanwhile, in a separate ceremony, Baidzawi also completed the handing over of Surau Al-Ikhwan Teluk Ketapang to the Department of Religious Affairs of Terengganu and the Teluk Ketapang kindergarten to the Department of Community Development of Terengganu.

He said the two infrastructures worth almost RM1 million under the KTAR project were able to benefit about 2,000 residents around Kampung Teluk Ketapang and nearby areas.

“The surau and kindergarten are part of the KTAR project implemented at a cost of RM28 million by the federal government through the ECERDC.

Source: Bernama

ECERDC has realised RM2.4b investments in Terengganu as of March 2024

Figures of realised investments in Malaysia for 2023 will be made public early next month, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry Minister said the approved investments for last year amounted to RM329.5bil, which was the highest in history.

“We will be announcing in the first week of April an update (on realised investments).

“The numbers are being finalised to show how much (investments) has started in terms of the total sum,” said Tengku Zafrul during the Concorde Club meeting at Wisma Bernama yesterday.

The Concorde Club is an informal group of editors and senior journalists who meet with politicians and key policy makers.

Previous guests of the Concorde Club, led by SMG advisor and Bernama chairman Datuk Seri Wong Chun Wai, included Prime Minister Datuk Seri Anwar Ibrahim, Penang Chief Minister Chow Kon Yeow, Opposition leader Datuk Seri Hamzah Zainudin, former premier Datuk Seri Najib Razak and ministers Datuk Seri Mohamad Hasan and Anthony Loke.

According to Tengku Zafrul, the realisation of approved investments usually takes between two and three years.

He said that on average, the annual implementation performance from 2021 to 2023 showed that more than 85% of approved manufacturing projects had been executed.

To ensure that approved investments are realised, the minister said it is imperative to focus on execution.

“That is why the Prime Minister, through the national investment council, is pushing all parties in the government, especially ministries, state governments and local councils to speed up the process,” said Tengku Zafrul.

At present, he said Malaysia is seeing a positive flow of investments and the country should capitalise on its strength, among them the green economy and semiconductor industry.

The approved investments of RM329.5bil last year was 23% higher compared to 2022, which recorded RM264.6bil.

The total approved investments involved 5,101 projects and could potentially create over 127,000 new job opportunities for the people.

The services sector recorded the highest investments, contributing over half or 51.1% of total approved investments at RM168.4bil, followed by the manufacturing sector at RM152bil (46.1%) and primary industries at RM9.1bil (2.8%).

Source: The Star

Tengku Zafrul: Realised investments to be announced early April

In his welcoming remarks at the Madani breaking of fast programme with ambassadors, foreign representatives, and international organisations at Seri Perdana Complex here today, Anwar said he is looking forward to working together with his counterpart, Thailand’s Prime Minister Srettha Thavisin, in other areas.

“We are working with Srettha to have further collaborations. The Foreign Ministry will also be assisting (the country) to ensure collaborations between Asean and bilateral relations with our neighbours will further strengthen,” he emphasised.

Thailand was Malaysia’s seventh-largest trading partner globally in 2023, with total trade of RM113.16 billion (US$24.83 billion).

Anwar also said that besides Thailand, Malaysia is working with Singapore in completing the Johor-Singapore Special Economic Zone (JS–SEZ), with a joint agreement between both countries expected to be inked by year-end.

“This (JS-SEZ) would benefit south Malaysia and Singapore as well,” said Anwar, who is also Finance Minister.

On March 14, the Ministry of Economy announced Malaysia and Singapore are expected to ink the joint agreement during the 11th Malaysia-Singapore Leaders’ Retreat later this year.

Elaborating on Malaysia’s collaborations within Asean, Anwar said Malaysia would expand and deepen collaborations in several areas such as energy transition, digital transformation, public health, and education.

“We are fortunate to pursue this policy and at the same time, we are traveling abroad (within) ASEAN and I have covered all of these countries,” he said.

In 2023, Malaysia’s major trading partners were Asean, China, the United States, the European Union and Japan, which accounted for a 67.7 per cent share of Malaysia’s total trade.

Earlier, Anwar spent time breaking fast with 300 guests from Maahad Tahfiz Sulaimaniyah, Kajang, ambassadors, foreign representatives and international organisations.

Source: Bernama

Malaysia to deepen collaboration with Thailand — PM

 The Ministry of Investment, Trade and Industry (MITI) will continue to accelerate and facilitate the implementation of industrial master plans to ensure that all investments are realised, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said Prime Minister Datuk Seri Anwar Ibrahim has successfully attracted potential foreign investments amounting to RM76.1 billion as of March this year.

Hence, he said it is crucial to implement government measures to achieve Malaysia’s targeted economic growth rate of between four per cent and five per cent this year.

“Various strategies, including the industry masterplans, are primary drivers. So it (Bank Negara Malaysia) is urging for a focus on execution,” he told reporters on the sidelines of the Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

On a question on realisation of investments, Tengku Zafrul explained that investments should take between two and three years to be realised.

“That is why the facilitation centre has been improved and through the National Investment Council, we are pushing for all parties within the government, especially the agencies in the ministries including the local councils to speed up the whole process,” he added.

Tengku Zafrul also said MITI is dedicated to ensuring that approved investments materialise and that investors do not encounter unnecessary difficulties.

“In fact, we are confident that we will start announcing the tracking of this (investments) in a more regular manner.

“Previously, we have done this (investment announcement) every six months and every one year, but we want to increase that and be more transparent so that people are aware of the process that is taking place and where those investments are,” he added.

Tengku Zafrul said the Malaysian Investment Development Authority (MIDA) is expected to produce a monthly report that provides comprehensive information regarding the value of both approved and realised investments.

During Bank Negara Malaysia’s (BNM) Annual Report 2023 release on Wednesday, the central bank called for the expediting of numerous industry master plans launched last year to support economic growth.

Among the master plans announced by the government in 2023 are the New Industrial Master Plan 2030 to transform key sectors such as manufacturing and the National Energy Transition Roadmap to uplift the nation’s renewable energy sector as a growth engine.

BNM has projected Malaysia’s gross domestic product growth at between four per cent and five per cent in 2024 versus 3.7 per cent in 2023, with upside risks stemming from the tech sector upcycle spillover, improved tourism numbers and project roll-outs.

Inflation, after incorporating the targeted subsidy roll-out, is forecast at between two per cent to 3.5 per cent by the central bank for the year, from 2.5 per cent in 2023.

Source: Bernama

MITI continues to accelerate, facilitate investments to achieve economic growth target – Tengku Zafrul