Investment landscape remains robust with positive outlook in short to medium term

MALAYSIA is poised to record absolute annual foreign direct investment (FDI) inflows of more than RM50 billion by 2030, according to UOB Global Economics and Markets Research.

This is supported by the robust FDI performance so far this year, with Malaysia having secured US$3.1 billion in FDI inflows alone in the first half, or a 17.9 per cent increase from US$2.6 billion recorded a year ago.

UOB Research said in the absence of any unexpected economic shocks, it expected FDI inflows to sustain the average longterm 15-year growth trend of 3.6 per cent per annum in the medium term, or around RM51.6 billion annually by 2030.

It added that despite a challenging and complex global environment, Malaysia’s investment landscape remained robust with a positive FDI outlook in the short to medium term.

The Malaysia Investment Development Authority approved almost RM1 trillion worth of investments between 2021 and March this year, with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments at RM461.8 billion (46.6 per cent) and primary sector investments totalling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, about 21.1 per cent in the planning phase, and the balance are unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31.

UOB Research said various catalytic projects identified in national masterplans, such as the New Industrial Master Plan 2030, National Energy Transition Roadmap and Midterm Review of 12th Malaysia Plan, would further enhance opportunities for investments in Malaysia’s high-growth, high-value sectors.

The planned Johor-Singapore Special Economic Zone and Malaysia’s five regional economic corridors will also work to bring in more investments.

To date, Malaysia has also implemented 16 free trade agreements (seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership, Indo-Pacific Economic Framework, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

However, it cautioned that the possibility of expanded universal United States tariffs, export controls and secondary sanctions to countries that were part of the China “Plus One” strategy remained a key risk, particularly for Malaysia and other Asean members that had benefited from diverted “China-US” flows.

The United Nations Trade and Development, in its World Investment Report 2024, also said the global environment for international investment “remains challenging” due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting multinational enterprises to stay cautious on overseas expansion.

Source: NST

‘Annual FDI set to hit RM50B by 2030’

Since gaining independence in 1957, Malaysia has undergone a remarkable economic transformation, evolving from a primarily agriculture-based economy to a diversified and resilient one.

This journey of growth and development is a testament to strategic planning, adaptability, and visionary leadership, laying the foundation for sustained prosperity.

Malaysia’s economic trajectory has not only ensured continued progress but has also positioned the country for a future focused on sustainability and innovation.

The Early Years: Agriculture and Commodities

In the years following independence, Malaysia’s economy was predominantly reliant on agriculture and commodities.

Rubber and tin were the backbone of the economy, with the former being the country’s largest export.

In fact, by the 1960s, Malaysia was the world’s leading producer of both rubber and tin.

The reliance on these commodities, however, made the economy vulnerable to global price fluctuations, a risk that the government quickly recognised.

As Malaysia embarked on its nation-building journey, there was an urgent need to diversify the economy to ensure long-term sustainability and resilience.

This marked the beginning of a series of strategic initiatives aimed at transforming the economic landscape.

The Shift to Manufacturing: The 1970s and Beyond

The 1970s marked a pivotal era in Malaysia’s economic transformation.

Recognising the limitations of an agriculture-based economy, the government, under the New Economic Policy (NEP) launched in 1971, began to shift the economic focus towards industrialisation.

The NEP aimed to reduce poverty and restructure society to eliminate the identification of race with economic function, which had been a source of tension.

This period saw the establishment of free trade zones, attracting foreign direct investment (FDI) and promoting export-oriented industrialisation.

The government also invested in infrastructure, such as roads, ports, and industrial estates, to support the burgeoning manufacturing sector.

Sunway University economics professor Dr Yeah Kim Leng noted that to reduce its high dependency on the agricultural sector, particularly plantation export commodities in the 1960s, Malaysia embarked on an FDI-led electronics and light manufacturing export development strategy in the early 1970s.

This was followed by a government-led heavy industries import substitution strategy in the 1980s.

“In the decades that follow, Malaysia benefitted from the rise in global trade and investment.

“The manufacturing industries integrated into regional production networks and global supply chains that expanded with rising globalisation.

“Led largely by FDI inflows, the shift up the value chain was however impeded by low domestic research and development (R&D) investment, weak technology transfers, inadequate indigenous technological capabilities and skills shortages,” he told Business Times.

Yeah also pointed out that the decade following the 1998 Asian Financial Crisis was marked by low private investment, which hovered around 10 per cent to 12 per cent of gross domestic product (GDP) compared to above 30 per cent before the financial crisis.

However, he noted that the surge in investment over the last two years has raised private investment-to-GDP levels to 16 per cent to 18 per cent, closer to the desired 20 per cent to 25 per cent level for a vibrant and fast-growing economy.

By the late 1970s and early 1980s, Malaysia had become a significant player in the global electronics and electrical products market.

The Penang Free Trade Zone (FTZ), established in 1972, became a hub for multinational corporations like Intel and Hewlett-Packard, propelling the nation into the global manufacturing arena.

IDEAS Malaysia economist and assistant research manager Doris Liew said Malaysia’s industrialisation in the 1980s was significantly driven by the “Look East Policy” and the Penang FTZ played a pivotal role in attracting FDI.

She noted that over the decades, Malaysia has established itself as  a prominent hub in the manufacturing sector, encompassing electrical and electronics (E&E), automobiles, chemicals, and appliances.

“This strong manufacturing ecosystem positions Malaysia advantageously in the face of increasing global demand for high-tech manufacturing, including artificial intelligence (AI), wafer fabrication, and energy transition-heavy industries like battery processing.

“Maintaining an open trade policy and a business-friendly environment will be crucial to sustaining Malaysia’s competitiveness in these sectors,” she said.

Doris pointed out that in the north, Kulim has already benefited from Penang’s spillover effects and will continue to see such benefits.

“Meanwhile, in the central region, the Selangor integrated circuit (IC) design park targets high-value manufacturing, such as IC chip design.

“In the south, the Singapore-Johor special economic zone (SEZ) offers the potential to benefit from the strong spillover from Singapore and establish a third manufacturing zone,” she said.

The success of the manufacturing sector not only reduced Malaysia’s dependence on agriculture but also contributed significantly to employment, income growth, and urbanisation.

By the 1990s, manufacturing accounted for nearly 30 per cent of the country’s GDP, with exports of manufactured goods driving economic growth.

The Rise of the Service Sector: 1990s to Present

As Malaysia continued its economic journey, the 1990s heralded another shift—this time towards the service sector.

Recognising the need to further diversify and add value to the economy, the government began promoting services such as finance, tourism, education, and information and communication technology (ICT).

The Multimedia Super Corridor (MSC), launched in 1996, was a significant milestone in this transition.

The MSC was envisioned as a high-tech hub, attracting global technology companies and fostering local innovation.

This initiative marked Malaysia’s entry into the digital economy, positioning the country as a leader in ICT in the region.

The financial services sector also saw rapid growth, with Kuala Lumpur emerging as a regional financial centre.

The development of Islamic finance further solidified Malaysia’s reputation in the global financial markets, with the country becoming a leading centre for Islamic banking and sukuk issuance.

Looking Forward: Malaysia’s Future Economy

As Malaysia charts its course into the future, several key themes are expected to shape its economic trajectory: the green economy, the silver economy, and continued economic reform.

In terms of green economy, environmental sustainability is set to be a cornerstone of Malaysia’s future economic strategy.

The government has recognised the need to transition to a low-carbon economy, with initiatives aimed at promoting renewable energy, energy efficiency, and sustainable practices across industries.

The  Malaysia Renewable Energy Roadmap (MyRER) outlines ambitious targets for increasing the share of renewables in the energy mix, positioning the country as a leader in green technology in the region.

Commenting on this, Yeah said the National Energy Transition Roadmap (NETR) has provided the policy direction and strategies to effect the shift to renewable energies, decarbonisation, carbon capture, storage and utilisation (CCSU) and efficient energy utilisation that underpin a green economy.

He added that there are green economy investment opportunities that are integrated with a circular economy driven by sustainable production and consumption where the carbon footprint, resource usage and wastes are minimised.

“The main challenges in undertaking green investments include high cost, access to financing and availability of technology which are either too costly or unproven,” he noted.

Doris said Malaysia’s NETR outlines ambitious plans to achieve net zero emissions. Numerous opportunities exist for greening the economy, including Tenaga Nasional Bhd’s (TNB) initiative to decarbonize the grid and the growing use of sustainability-linked financial instruments in the financial sector.

“The transportation sector also offers significant potential for greening. As the electric vehicle (EV) cars are gaining traction, there is also room for growth in electric buses, trains, and bicycles. Additionally, creating more walkable cities can contribute to reducing carbon emissions.

“However, challenges remain. A lack of expertise and skilled workforce in sustainability-related fields hinders widespread adoption of green technologies and practices. Moreover, carbon reporting can be resource-intensive, particularly for Malaysia’s 900,000 small and medium enterprises (SMEs),” she added.

With an ageing population, Malaysia is also focusing on the silver economy—leveraging the potential of the elderly as a source of economic growth.

This includes promoting healthcare, wellness, and financial services tailored to the needs of the elderly, as well as encouraging lifelong learning and active ageing.

The silver economy is expected to create new opportunities in various sectors, from healthcare to real estate.

Yeah suggested that Malaysia can further prepare its economy by tapping into the female labour force, which currently has a participation rate below its peer countries, and gradually raising the retirement age to 65.

He also stressed the importance of establishing old age social protection schemes and planning for higher spending on healthcare and aged care, where private sector investment can play a critical role in contributing to overall GDP growth.

Nevertheless, economic reform is expected to continue to be a key driver of Malaysia’s growth, with a focus on enhancing productivity, improving governance, and fostering innovation.

The government’s Shared Prosperity Vision (SPV) 2030 aims to ensure that all Malaysians benefit from the country’s economic progress, addressing income disparities and promoting inclusive growth.

Yeah also noted that Malaysia needs to expand the infusion of technology across all sectors and raise investment in R&D and innovations to escape the ‘middle-income trap’.

According to a recent World Bank report, these steps are crucial for ensuring that Malaysia continues on its path toward becoming a high-income nation.

Meanwhile, Doris highlighted that while the country faces challenges with brain drain, there is an increasing need to consider attracting foreign workers for both blue-collar and white-collar roles to help drive various industries.

She emphasised that this should be done cautiously to ensure that local workers are not put at a disadvantage.

“Foreign workers should be brought in as a complement to the domestic workforce, supporting continued economic growth.

“As the population ages, government spending on healthcare and social welfare will increase. Ensuring robust economic growth and government revenue is essential to sustain the care economy,” said Doris.

Source: NST

Malaysia’s major economic transformation since 1957

Malaysia is on track to see more than RM50 billion in foreign direct investments (FDI) by 2030, in the absence of any unexpected economic shocks.

UOB Global Economics and Markets Research in a note today said it anticipates FDI inflows, in ringgit terms, to sustain its average long-term 15-year growth trend of 3.6 per cent per annum in the medium term.

This will translate into absolute annual FDI inflows of around RM51.6 billion (or about US$13.5 billion) by 2030.

“Our projection is supported by the 2024 year-to-date performance of FDIs, whereby Malaysia has attracted a total of US$ 3.1 billion FDI inflows in the first half of 2024 (1H24), which was 17.9 per cent higher than US$2.6 billion recorded in 1H23,” it added.

UOB Research said, despite a challenging and complex global environment, Malaysia’s investment landscape remains robust, and prospects are encouraging with a positive FDI outlook in the short-to-medium term.

Between 2021 and Mar 2024, the Malaysia Investment Development Authority (Mida) has approved almost RM1 trillion worth of investments with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments amounted to RM461.8 billion (46.6 per cent) and primary sector investments totaling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, while about 21.1 per cent are in the planning phase and the balance of 1.6 per cent remain unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31, this year.

UOB Reserach said various catalytic projects in the national masterplans, such as New Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap, will further enhance opportunities for investments in Malaysia’s high-growth high-value (HGHV) sectors.

Johor-Singapore Special Economic Zone (JS-SEZ and the country’s five regional economic corridors will also work to bring in investments. along with Malaysia’s efforts to grow its trade ties.

To date, Malaysia has implemented 16 Free Trade Agreements (FTAs, seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership (RCEP), Indo-Pacific Economic Framework (IPEF) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The report did however caution that the possibility of expanded universal US tariffs, export controls and secondary sanctions to countries that are part of China “Plus One” Strategy remains a key risk particularly for Malaysia and other Asean members who have benefited from diverted “China-US” flows.

The United Nations Trade and Development (UNCTAD) in its World Investment Report 2024 said the global environment for international investment “remains challenging” in 2024 due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting some multinational enterprises to stay cautious on overseas expansion.

Source: NST

Malaysia on track to bring in more than RM50b in FDI by 2030 – UOB Research

The uptrend in the semiconductor industry and the rollout of various construction projects in the second half (2H) of 2024 are expected to continue supporting Malaysia’s economic growth, said MIDF Amanah Investment Bank Bhd.

In a research note, MIDF also anticipated the export recovery to continue in 2H 2024, driven by foreign demand for both electrical and electronics (E&E) and non-E&E products.

“Export growth accelerated to 12.3 per cent year-on-year (y-o-y) in July 2024, marking the fastest growth in more than 1.5 years, driven by stronger domestic exports (18 per cent y-o-y), supported by higher shipments of palm oil and palm oil products, as well as rebounds in exports of E&E and petroleum products.

“By destination, exports grew faster to major destinations except China and Hong Kong,” it said today.

MIDF said Malaysia’s gross domestic product (GDP) growth accelerated to 5.9 per cent y-o-y in the second quarter (2Q) of 2024, marking the fastest expansion in six quarters, compared to 1Q 2024 of 4.2 per cent y-o-y.

It noted that the great GDP performance also surpassed the advance estimate of 5.8 per cent y-o-y.

“For 1H 2024, the economy expanded 5.1 per cent y-o-y, stronger than the 3.0 per cent y-o-y in 2H 2023.

“The robust performance was driven by sustained resilience in domestic demand, improvements in manufacturing activities, and recovery in external trade,” it said.

Therefore, MIDF predicted that Malaysia’s economic growth to grow stronger at 5.0 per cent this year, given the robust growth in 2Q 2024.

“Despite the more optimistic view on the domestic economic picture, we will keep a close look at several factors which could derail the growth outlook, such as weaker growth in China, recession risk in the US, the recent escalation in geopolitical tensions, and potential disruptions to the global supply chain and trade flow.

“Although inflation has been generally under control, the potential uptrend in price pressures from planned policy changes could hurt consumer sentiment and their discretionary spending,” it said.

Source: Bernama

Malaysia’s growth set to be buoyed by semiconductors and construction projects in second half of 2024, MIDF says

UOB today signed a Memorandum of Understanding (MOU) with Invest Johor, the state’s investment agency, to drive investment opportunities into the upcoming Johor-Singapore Special Economic Zone (SEZ).

UOB also signed a second MoU today with China’s Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

Under the partnership with Invest Johor, UOB will collaborate with the state investment agency to jointly promote and facilitate investment opportunities into the Johor-Singapore SEZ. This will be done by targeting high value, high technology and high impact investments from priority sectors such as electrical and electronics, advanced manufacturing and engineering, digital economy, green economy, life science and med-tech, electric vehicles, aerospace and port and logistics.

Notably, a “green lane” will be jointly established, with UOB designated as a partner to assist with foreign direct investments in these prioritised sectors to accelerate their investments. UOB will also provide advisory and banking services to companies looking to invest in Johor as part of the MoU.

The MoU was signed by Invest Johor’s CEO, Natazha Bin Hariss and UOB Malaysia’s CEO, Ng Wei Wei, at the Asean Conference held in Singapore today. The ceremony was witnessed by Johor Menteri Besar, Datuk Onn Hafiz Ghazi, and UOB’s deputy chairman and CEO Wee Ee Cheong.

Onn Hafiz said, “From our engagements with key stakeholders of the Johor-Singapore SEZ, expectations are very high. This will require us to step up our game, provide excellent service and ensure that we not only meet, but exceed these expectations. Today’s MoU between Invest Johor, the state’s lead investment agency and UOB, one of Asean’s leading financial institutions with over seven decades of experience in assisting investors in Malaysia, is one example of our seriousness and focus in improving the investor experience in Johor.”

Wee said, “UOB is pleased to work with like-minded partners to support businesses in navigating the diverse Asean region. Our strategic partnerships with regional government investment agencies and trade associations have successfully connected enterprises such as Lingang Group to cross-border investment opportunities, benefitting businesses across multiple sectors. We remained committed to serving as an effective gateway to the region for companies expanding into the region.”

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

Source: The Sun

UOB partners Invest Johor to drive foreign direct investments into Johor- Singapore SEZ

Malaysia and Saudi Arabia discussed efforts to further enhance bilateral relations today, according to Foreign Minister Datuk Seri Mohamad Hasan.

In a Facebook post, he mentioned that the discussion took place during a courtesy visit by Saudi Arabia’s Minister of Haj and Umrah, Dr. Tawfiq Fawzan Al-Rabiah, along with his delegation, at Wisma Putra, Putrajaya.

He stated that the topics discussed included increasing investments in Malaysia, adding more flights between Kuala Lumpur and Jeddah, and increasing the number of scholarships for Malaysian students to study in Saudi Arabia.

He also mentioned that the Saudi-Malaysia Consultative Council has been agreed upon to be co-chaired by the Foreign Ministers of both countries.

Source: Bernama

Malaysia, Saudi Arabia Discuss Strengthening Ties and Investment

The Sabah government is focusing on efforts to increase its visibility among foreign investors towards achieving its goal of becoming an industrial state by 2040, according to Sabah Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe.

Speaking to Bernama on the sidelines of The Business Show Asia here, he said that besides participating in more conferences and exhibitions, the state government is also ensuring the local manpower and facilities are industry-ready.

“I found out through programmes like today’s, at the international level, that many people actually don’t know about Sabah and what we can offer. So it is important for us to increase Sabah’s visibility.

“Another one is training. If we want high quality investment, we need high quality manpower, so we are working with several training institutes to train Sabahans, so that they can contribute to the industry that we are going to tap into such as the green sector and renewable energy,” he said.

Phoong said that to increase its visibility, Sabah will also introduce two new industrial parks in Kota Belud and Kimanis, to add to the already established three major parks — Kota Kinabalu Industrial Park (KKIP), POIC Lahad Datu, and Sipitang Oil and Gas Industrial Park (SOGIP).

“These developments are part of our broader strategy to expand our industrial infrastructure and support economic diversification and industrialisation,” he said, adding that the state had total investments of more than RM11 billion in 2022 and 2023.

At the event, Phoong witnessed the signing of a letter of intent (LoI) between Sabah’s KKIP Aviation Training Centre (KATC) and Singapore’s DroneDash Technologies for collaboration in training on drones for cargo delivery services.

KATC chief executive officer Datuk Dr Mohd Dali Isa said that through the future collaboration, DroneDash will provide its expertise to train Sabah youths at KATC as drone engineers, technicians and pilots “so that they know how to operate relatively large-scale drones for cargo handling”.

“For now we have not yet determined the number of trainees who will be involved in this programme which is still in the planning stage,” he said.

This initiative will equip the local workforce with essential skills, support the existing industrial parks and contribute to the development of two new industrial parks in Sabah, driving innovation to the state.

Meanwhile, Phoong also witnessed the memorandum of agreement (MoA) signing between Hong Xin Food Sdn Bhd and Alkemal Singapore Pte Ltd on the distribution of the former’s Tem Tem Tempeh Chips in Singapore’s market.

The chips available in original and Tadong (red rice) variations will now be available at 30 Sheng Siong Supermarket outlets, a leading retail chain in the republic.

Hong Xin Food founder Cherry Ding Chew Li said she hoped the agreement will help to increase visibility of the brand and products, as well as attract more investors.

“We are a young startup opened in December 2021 during the pandemic, started manufacturing from home and with more demand, we already have a factory in Kota Kinabalu, with small-scale production for now. We hope with more investors, we can increase our production and export to more countries,” she said.

Also present was Malaysia’s High Commissioner to Singapore Datuk Dr Azfar Mohamad Mustafar.

Source: Bernama

 

Sabah plans to increase its visibility, attract more FDI

Malaysia has enjoyed five decades of rapid and inclusive economic growth, bringing the country within reach of high-income status, said a chief economist.

Organisation for Economic Cooperation and Development (OECD) Economics Department director Dr Luiz de Mello said the economy has achieved an impressive average yearly growth of over six per cent since the 1960s. 

He added that Malaysia has been ahead of regional peers in terms of per capita incomes and has been able to consolidate this lead. 

Luiz said while incomes were only one-third of the World Bank’s threshold for high-income countries in 1989, they are set to surpass that threshold by 2028.

“Significant policy reforms in the 1980s allowed Malaysia to attract large inflows of foreign direct investment, turning it into a global chips and electronics manufacturer.

“Growth and productivity could be strengthened further by easing restrictive regulations and creating a more level playing field between state-owned enterprises and private firms. 

“This would bring particular benefits for services and for small and medium enterprises (SMEs),” he said in a presentation at the launch of the 2024 OECD Economic Survey of Malaysia today.

Luiz noted that with higher incomes, however, surging demands for better public services require different policies from those that were successful in the past. 

He said the public sector will have to deliver more and become more effective, which calls for improved economic governance.

He also emphasised that filling the substantial gaps in the current social protection system requires increased expenditure. 

On Malaysia’s growth, Luiz said the country’s growth is accelerating, mostly driven by expanding domestic demand. 

He added that exports are set to rebound amid stronger external demand, and inflation has fallen below historical averages but is expected to rise as energy subsidies are withdrawn.

“The economy has shown resilience in the face of shocks, including the pandemic, supply chain bottlenecks, and the economic implications of Russia’s war of aggression against Ukraine.

“Growth is projected to reach 4.9 per cent in 2024 and then 4.7 per cent in 2025. 

“Buoyant domestic demand and new opportunities in technology-intensive sectors and the expected rebound in exports will encourage private investment despite higher financing costs,” he said.

On monetary policy, Luiz said the monetary authorities started a tightening cycle in 2022 as inflation approached five per cent, driven by global energy prices and currency depreciation.

“With inflation near its two per cent long-term average, the current monetary policy stance seems adequate and provides room to accommodate a temporary increase in inflation as energy subsidies are withdrawn. 

“At the same time, monetary authorities should stand ready to raise rates to counter possible second-round effects from higher energy prices,” he noted.

Source: NST

Malaysia to achieve high-income status soon: OECD director

The Pahang government is considering expanding the Fast 8 (F8) initiative, which accelerates the approval of high-impact investment project permits from 24 months to eight months.

This initiative, originally introduced by the Kuantan City Council, is proposed to be extended to other local authorities in the state.

State Local Government, Housing, Environment and Green Technology Committee chairman, Datuk Mohammad Fakhruddin Mohd Ariff said this effort is also part of a broader move to facilitate business management and improve existing systems and procedures.

“Efforts to enhance business processes have been carried out with dedication, including the establishment of the Ease of Doing Business (EODB) Committee chaired by the State Secretary (Datuk Seri Zulkifli Yaacob).

“We understand that the business world is increasingly challenging, and a state’s ability to streamline business processes is crucial in attracting investors and ensuring continuous economic growth,“ he said when opening the EODB Planning Clinic organised by PlanMalaysia Pahang here today, which was attended by over 200 participants including developers, consultants and stakeholders..

Meanwhile, Mohammad Fakhruddin noted that Pahang is one of the top-performing states, ranked second nationally for facilitating the development permit process according to the Doing Business in Malaysia 2020 report.

“However, we cannot be complacent with this achievement. We must continue striving to improve our ranking over time and remain responsive to the needs and expectations of investors and entrepreneurs,“ he said.

Source: Bernama

Pahang plans to expand Fast 8 initiative to expedite investment permit approval

The Northern Corridor Economic Region (NCER) attracted RM15.26 billion in investments and added 1,700 job opportunities in Kedah during the first seven months of this year.

Northern Corridor Implementation Authority (NCIA) chief executive Mohamad Haris Kader Sultan said the figure significantly surpasses the RM5.43 billion in investments realised during the same period last year.

He said this was made possible through the collaboration of the NCIA, the Malaysian Investment Development Authority (MIDA), and the Kedah government.

“This strong performance is evidence of the effectiveness of the NCER Strategic Development Plan, and NCIA is confident that the overall performance this year will surpass Kedah’s 2023 performance.

“This year, NCIA also introduced the FaCi@NCER initiative to expedite the investment realisation process in the NCER by connecting various stakeholders through a comprehensive approval chain process,” he said in a statement today.

Haris said the announcement of NCER’s investment performance in Kedah was made during the State Steering Committee meeting chaired by Menteri Besar Datuk Seri Muhammad Sanusi Md Nor.

Following the meeting, Sanusi officiated the NCIA’s Kedah Medical Device Ecosystem Appreciation Ceremony, recognising the contributions of industry players, including Richter Rubber, KHTP Sterilisation, Diptech Industries, and Ideal Care.

Haris said the medical device industry is a crucial component of the high-value manufacturing sector, which has seen significant growth in Kedah, particularly in Kulim High Technology Park (KHTP) and the industrial areas surrounding Sungai Petani.

“Since 2019, NCIA has successfully garnered RM34.8 billion, creating over 16,000 job opportunities in the high-value manufacturing sector in Kedah. Of this amount, RM1.56 billion was contributed by the medical device industry, generating more than 1,600 skilled and semi-skilled job opportunities,” he added.

Haris said Kedah is poised to become a preferred medical device manufacturing hub, not only locally, but also globally in future, under the NCER strategic development plan.

Source: NST

NCER attracts RM15.26 billion in investment, adds 1,700 jobs in Kedah

The Ministry of Investment, Trade, and Industry (MITI) is pivotal in strengthening national unity by driving efforts to attract and secure investments for the country.

Citing investment examples, MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the ministry will ensure that each of the billions in investments brought into the country will result in prosperity that can be felt by all levels of society.

He said this while speaking at a solo exhibition by Muhamad Zaim titled “Resolute”.

The minister said the art exhibition emphasises the importance of unity, strength, and national pride as the pillars of a strong Malaysia.

“A country that is independent, free, and sovereign can easily be empowered to build wealth and prosperity for its people.

“For me, freedom in Malaysia means that no matter where we come from, what our race is, or where we are in life, we need to be treated as ‘free’ or ‘Merdeka’, so that we can build our prosperity,” he said.

Tengku Zafrul said the exhibition conveys an important message: without unity, it is indeed difficult to build a strength that can be proud of and to build a strong, prosperous, and sovereign Malaysia.

Tengku Zafrul also cited his first book, “Weathering the Economic Storm”, which discusses the Responsive, Responsible, and Reformist approach.

He said that good governments must be “Responsive” to the needs of all their people – nurses, teachers, artists, and others – to enable everyone to contribute to achieving the country’s MADANI vision in their unique way.

“This must always be coupled with the need to be “Responsible” – to do the right thing to fulfil the dreams, aspirations, and potential of the rakyat.

“Finally, we must also be “Reformist” to ensure Malaysia can continue to prosper for future generations,” he said.

Source: Bernama

MITI plays key role in national unity by spearheading investment initiatives – Tengku Zafrul

Malaysia and India are looking to enhance their economic relationship through an upgraded Free Trade Agreement (FTA) following Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to New Delhi.

During their bilateral meeting, Anwar and his Indian counterpart Narendra Modi discussed close cooperation in several areas such as the digital economy, semiconductor manufacturing, artificial intelligence, infrastructure, food security and tourism.

“We will elevate whatever cooperation that we have towards a more comprehensive cooperation to cover all these pillars,” Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told Bernama.

He said the Malaysia-India Comprehensive Economic Cooperation Agreement (Miceca), which was signed in 2011 and covers mainly trade and investment, will be upgraded.

“Both prime ministers have given us the timeframe of three months to revert on what are the areas that we want to focus on, and establish the parameters for the upgrade,” said Zafrul, who travelled to India with Anwar.

The range of topics discussed between Malaysia and India during Anwar’s visit also creates significant potential business opportunities in emerging technologies, renewable energy, chemicals and petrochemicals and manpower development.

Trade between Malaysia and India topped US$16.5 billion (RM72.2 billion) last year.

India is Malaysia’s 11th largest destination for exports and 12th largest source of imports.

In changing trade trends, Malaysia’s exports of electrical and electronics products to India have grown significantly while the share of primary commodities has declined from two-thirds two decades ago to one-third of all exports now.

Similarly, Indian exports, which had a big share of agricultural items earlier, now have a large amount of petroleum products and engineering goods.

The semiconductor sector holds huge potential for cooperation with India, Anwar emphasised in his speech at the Indian Council of World Affairs think-tank on August 20.

Anwar said Malaysia is the world’s sixth largest semiconductor exporter and “our country’s expertise lies particularly in the assembly, testing, and packaging segments of the semiconductor value chain” whereas India’s capabilities in software are “almost unparalleled”.

Source: Bernama

Malaysia, India to upgrade bilateral FTA — Zafrul

Malaysia has emerged as a rising star in Southeast Asia, with investors increasingly drawn to the country thanks to the MADANI government’s business-friendly policies, said Housing and Local Government Minister, Nga Kor Ming.

He said that improving economic growth, political stability, and strengthening currency are also factors that attracted investors to Malaysia.

“The ringgit has outperformed its regional counterparts to become the best-performing Asian currency thus far this year, after appreciating over five per cent year-to-date,” he said in a statement today.

Meanwhile, the stock market has demonstrated strong momentum, with the FBM KLCI climbing more than 12 per cent year-to-date.

Malaysia’s economic growth has also exceeded expectations, expanding by 4.2 per cent in the first quarter of 2024 (1Q 2024) and 5.9 per cent in 2Q 2024, fuelled by robust private spending, foreign investment influx and strong export performance.

“Malaysia is now back on the right track,” added Nga.

Source: Bernama

Malaysia emerges as a bright spot in ASEAN

President of the Sabah China Chamber of Commerce (SCCC), Datuk Frankie Liew, pointed out that it is now the best time for China businessmen to invest in Sabah due to favorable timing, geographic advantages and human factors.

He said this is specially under the current protectionist and trade-war attitudes of Western countries, global free trade is increasingly narrowing. Malaysia, Sabah and China need to establish closer relationships to enhance their economic and food security through diplomatic and trade networks and supply chains.

Liew stated this on Friday at a trade and economic seminar in Yanbian Korean Autonomous Prefecture, Jilin Province, with Yanbian Prefecture’s enterprises, SCCC and the Sabah Economic Advisory Council.

He expressed great honor for being able to once again receive the endorsement of Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe to lead the SCCC and represent the business community of Sabah in this official delegation.

“We believe that this visit will not only facilitate direct connections with strong and sincere political and business enterprises but also precisely align with potential projects and industries. We hope to learn from the local leaders and with their guidance and advice, ensure a fruitful and beneficial trip. China, with its vast territory and rich resources, complete industrial and supply chains, ample capital, high-level research, and excellent talent, is currently one of the global economic engines, a leader in Southeast Asia, and a partner we look forward to learning from and collaborating with,” he pointed out.

He noted that since China’s rise, it has been the largest trading partner for Southeast Asia, including Malaysia and Sabah. This year marks the 50th anniversary of diplomatic relations between Malaysia and China, a milestone for further deepening and broadening overall trade cooperation.

He emphasized that the current Malaysian unity government led by Prime Minister Datuk Seri Anwar and the Sabah People’s Alliance (GRS) government led by Chief Minister Datuk Seri Hajiji Noor uphold a neutral “pro-China” stance, resolutely defending friendly and partnership relations with China despite pressures and temptations from Western powers.

“Our advantage lies in our multilingual and multicultural background, relatively mature educational levels, and good interactions and diplomatic relations with ASEAN and Western countries. Sabah is also a gateway to the nearly two billion population market of China and ASEAN. Sabah has a predominantly small and medium-sized economic system, with major sectors in services, tourism, oil palm cultivation, and mining of oil and natural gas. Recently, under the new government and with the strong promotion by Hajiji and Phoong, Sabah is rapidly industrializing, attracting substantial investment and technology from China and South Korea, making us optimistic about future development. Additionally, Sabah has significant development potential in agriculture, fisheries, food industry, new energy, and infrastructure. We are also an important base for bird’s nest production, with abundant herbal resources, a summer-like climate, ample rainfall, and no major natural disasters.

“We believe there are many points of intersection and complementary advantages. Currently, electric vehicles are not yet widespread in Sabah. Leveraging ASEAN and regional free trade advantages, we hope to establish bases or centers for new energy vehicles in Sabah to serve as a hub for the ASEAN region.”

Liew also mentioned that although SCCC’s core service is to promote investment and trade between Sabah and China, it also strengthens its advantages by maintaining close ties with ASEAN countries, including Indonesia, the Philippines and Brunei, to form partnerships and share resources and information. With these conditions, we can not only facilitate investment from Chinese enterprises and investors into Sabah but also assist in entering the ASEAN market, helping sincere and capable enterprises maximize their benefits.

SCCC will actively participate in domestic and international conferences and exhibitions to showcase Sabah’s advantages and potential, connect with international business networks, and achieve mutual benefits and prosperity.

Liew announced that the Sabah government will hold the first Sabah-China Expo and Sabah-China Business Summit from November 22 to 24 at the Sabah International Convention Centre (SICC) in Kota Kinabalu.

SCCCis honored to be a co-organizer and will invite representatives from various provinces and cities in China to participate and discuss future business opportunities in Sabah, known as the “Land Below the Wind.”

Liew emphasized that they will continue to fully cooperate with the policies and directions of the Malaysian and Sabah governments, promote investment and recruitment, and assist Chinese enterprises in establishing technology, production capacity, and resources in Sabah to become a crucial link in the global industrial and supply chains, bringing greater economic benefits and a better life to both regions.

“Many people may have heard of Malaysia and know that China and Malaysia have been close partners for 50 years, but many are not very familiar with our small Southeast Asian country and mistakenly think that Kuala Lumpur is the capital of Malaysia and that all matters can be handled through Kuala Lumpur.

“In fact, Malaysia is a federal country consisting of Peninsular Malaysia, Sabah and Sarawak, geographically divided into West Malaysia (the Malay Peninsula) and East Malaysia (Sabah and Sarawak), separated by the South China Sea. It takes nearly three hours to fly from Kota Kinabalu, the capital of Sabah, to Kuala Lumpur in West Malaysia.

“Due to this geographical separation, valuable information between China and Sabah is often delayed or not fully communicated, causing missed opportunities and suboptimal investment cooperation. Under the Malaysia Agreement 1963 (MA63), the Sabah government has a high degree of autonomy, with many important powers, including land, natural resources and immigration rights, directly managed and approved by the Sabah government. A few years ago, the Malaysian and Sabah new governments were working to restore the equality of the ‘Malaya, Sabah and Sarawak’ partners.

“In 2019, with the encouragement and support of the Sabah government, various industries in Sabah, especially those with ideas and initiatives to promote trade and investment between Sabah and China, were called upon to establish a specialized business organization to represent and safeguard bilateral interests between Sabah and China, and proactively promote and implement trade and investment activities, information and resource interaction, assistance and communication,” he said.

The objectives of the Sabah China Chamber of Commerce are as follows:
Promote economic, trade and other industrial and commercial exchanges and cooperation between Sabah and the People’s Republic of China;
Provide members with information related to bilateral economic, trade and other industrial and commercial activities between Sabah and the People’s Republic of China;
Offer a platform for business information, financial and trade information exchange, including organizing various exhibitions, forums, training activities and investment guidance services, to establish and develop business cooperation;
Jointly safeguard the legitimate rights and interests of members and provide assistance and suggestions for problem-solving when needed;
Promote a healthy business culture and foster a prosperous and harmonious society.

The core members of the Chamber come from various sectors in Sabah including real estate development, plantations, agriculture, tourism and hospitality services, construction sector, building materials, creative design, media, education, e-commerce, and cultural industries.

SCCC has two main wings: the Young Entrepreneurs Committee and the Women Entrepreneurs Committee, bringing together local young talents and female elites, nurturing future successors. The Chamber also has branches in Hubei and liaison offices in Guangzhou, Shengzhou, and other places to assist in promoting cooperation and communication and delivering timely and accurate information.

SCCC has signed a partnership memorandum with Jin Lihua, chairman of Hunchun Huairui Ginseng Bioengineering Co Ltd and has established a liaison office in Jilin Province, with chairman Chen Pengyu appointed as the representative.

Meanwhile, Park Cheol, a researcher from the Yanbian Korean Autonomous Prefecture Foreign Affairs Office, mentioned that the visit by SCCC will enhance understanding and relationships, and contribute to industry exchanges and business opportunities in Yanbian Korean Autonomous Prefecture.

SCCC deputy president Brett Chua invited Yanbian enterprises to participate in the Sabah China Economic Forum and Sabah China Expo to showcase their products.

Meanwhile, Datuk Thomas Logijin, the permanent secretary of the Industrial Development and Entrepreneurship Ministry, visited Hunchun City to observe the production process of Huairui Ginseng Bioengineering Co Ltd.

He welcomed Huairui Ginseng Bioengineering to invest and set up factories in Sabah, and promised to provide all necessary assistance, including coordination with various departments.

Jin Lihua, chairman of the Jilin Functional Foods Association and Huairui Ginseng Bioengineering Co Ltd, stated that Changbai Mountain in Jilin Province and Heilongjiang, which is connected to Russia, is the source of ginseng. He plans to invest in Sabah and establish contact. He expressed that the visit by the Sabah delegation will deepen understanding of ginseng and encouraged cooperation.

Source: Borneo Post

Now best time for China to invest in Sabah

Penang’s holistic electrical and electronics (E&E) ecosystem is seen as a huge advantage by multinational corporations (MNCs) when making investment decisions to expand their existing operations in the state.

Chief Minister Chow Kon Yeow said his recent investment and trade mission to the United States on August 4-14 mostly focused on visiting companies that already have operations in Penang as well as some companies that have the potential to invest.

“A lot of these companies have plans to expand their business by constructing new facilities on vacant land at their current sites.

“From our visits there, I gathered that they are satisfied with what Penang has to offer because our ecosystem can support their growth plans,” he told a press conference after officiating the Malaysia MADANI Penang Indian E&E SME Summit 2024 here, today.

He added that Penang, also known as the Silicon Valley of the East, has established a strong foundation for the E&E industry to thrive given its strong talent pool, supportive government, infrastructure and enabling policies.

Nevertheless, Chow said the state would not rest on its laurels and will continue to introduce new initiatives in the coming months to further invigorate our E&E industry ecosystem.

Towards this end, he said the state government is introducing the ‘Penang Silicon Design @ 5km+’ initiative which comprises four major projects, namely the IC Design and Digital Park, Penang Chip
Design Academy, Silicon Research & Incubation Space, and the Penang STEM Talent Blueprint.

“With such efforts in place, we aim to position Penang as a leading hub for semiconductor innovation and design, reinforcing our strategic role in Malaysia’s ambitious goals.

“By advancing our capabilities and fostering a robust ecosystem, we seek to attract global investments, create high-value jobs, and drive technological advancements that will benefit our state and nation,” he said.

Commenting on the one-day event today, Chow said the summit provided a unique opportunity to shape the future of local small and medium enterprises (SMEs), particularly Indian-owned businesses, and served as a catalyst for meaningful change, thereby helping to steer Penang towards greater economic
diversity and technological innovation.

Source: Bernama

Penang’s Holistic E&E Ecosystem Main Factor For Reinvestment By MNCs -Chow

Investment, Trade and Industry Ministry says it has secured RM8 billion of potential exports and RM4.5 billion of potential investment during Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India from Aug 19-21.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz was part of the Prime Ministerial delegation.

According to the ministry, the potential exports are in sectors such as palm oil and palm oil-based products, chemicals and chemical products, oil and gas and aircraft spare parts.

A commitment of RM4.5 billion in investment was secured from Indian companies in sectors such as information technology, logistics, chemical and pharmaceutical sectors.

“These potential investments are expected to create more than 3,000 high-value job opportunities in the next two to there years,” it said today.

The ministry also hosted a roundtable meeting between Anwar and 31 prominent captains of industry from among major Indian industry players in various sectors such as information technology, pharmaceutical, transportation, semiconductor and fintech services.

This high-level gathering in New Delhi served as a catalyst for fostering strategic partnerships, promoting investment and trade opportunities, while deepening bilateral cooperation between the two nations.

In his opening remarks, Anwar reiterated Malaysia’s commitment to strengthening ties with India across various fronts, particularly in trade and investment.

He said Malaysia’s strategic position as a gateway to the Asean market where robust infrastructure, and vibrant business ecosystem are key factors that make it an attractive destination for investors seeking new opportunities for growth and diversification.

Anwar also held one-on-one meetings with Tata Consultancy Services (TCS), HCL Technologies Ltd (HCLTech) and Emami Agrotech Ltd.

Both TCS and HCLTech discussed their plans to expand their workforce and create training programs for Malaysians, including fresh graduates, women, and public officers, focusing on IT and artificial intelligence (AI) skills.

Emami Agrotech, one of the largest manufacturers of biodiesel in Eastern India and a key exporter of biodiesel to Europe and other Southeast Asian countries, had expressed their intention to import more palm oil from Malaysia.

Meanwhile, Tengku Zafrul said the positive outcome on the workforce expansion plans by TCS and HCL Technologies in Malaysia is also a welcome move.

The ministry, through the Malaysian Investment Development Authority (MIDA), will do its best to facilitate their expansion, he added.

“We will also continue to intensify efforts to attract quality digital investments – such as data and cloud-based technologies – to create more opportunities for our small and medium enterprises (SMEs) and higher-paying jobs for our people,” he noted.  

Tengku Zafrul also witnessed the exchange of seven memorandam of understandings (MoUs) between Malaysian companies and their Indian partners, to be realised within a span of one to five years.

The MoUs cover various areas of interest, including green technology, innovation, waste management, start-ups, railway infrastructure as well as promotion of trade and investment.

India was Malaysia’s largest trading partner, export destination and import source among the South Asia countries in 2023.

Total trade between the countries was recorded at RM75.39 billion (US$16.53 billion) in 2023.

Source: NST

Malaysia secures RM8bil potential exports, RM4.5bil potential investments from PM’s India visit

Malaysia will lead the coordination between Asean countries and India to improve aspects of the free trade agreement (FTA) between the two parties, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said a delegation from Malaysia will visit New Delhi in November to attend an FTA-related consultation session on behalf of Asean with India, given that Malaysia will assume the position of Asean chair in 2025.

“We target next year when as chair of Asean we will not only be able to finalise the revision of the FTA between India and Asean which is already in place, but also to improve it.

“Malaysia is given this responsibility to coordinate,” he told Bernama when met at the sideline of the 2024 Umno General Assembly here on Thursday.

He said this when commenting on the success of Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India recently, where Indian Prime Minister Narendra Modi hoped that the review of the free trade agreement between Asean and India would be completed within the specified time period.

India and Asean have held several rounds of negotiations to make changes to the Asean-India Trade in Goods Agreement (AITIGA) to make the agreement more trade-friendly and beneficial for businesses across the region.

The negotiations began in May 2023.

Source: Bernama

Malaysia to lead coordination of Asean-India FTA review in November — Zafrul

Malaysia and India today solidified their bilateral relations with the exchange of eight memorandums of understanding (MOUs).

The MOUs cover a broad range of sectors, including worker recruitment, traditional medicine, digital technologies, culture, tourism, and public administration.

Prime Minister Datuk Seri Anwar Ibrahim, who departed on a three-day official visit to India yesterday, and his India counterpart Narendra Modi witnessed the MOU exchange at Hyderabad House here.

Hyderabad House is used by the India government for official functions, particularly high-level meetings and banquets involving visiting foreign dignitaries.

The first MOU, concerning the recruitment, employment, and repatriation of workers, was inked and exchanged between Human Resources Minister Steven Sim Chee Keong and India External Affairs Minister S. Jaishankar.

A second MOU, on ayurveda and other traditional systems of medicine, was exchanged between Foreign Affairs Minister Datuk Seri Mohamad Hasan and his counterpart Jaishankar.

An MOU on cooperation in the field of digital technologies was exchanged between Digital Minister Gobind Singh Deo and Jaishankar.

An MOU on cooperation in the fields of culture, arts, and heritage, was exchanged between Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing and Jaishankar. Tiong and Jaishankar also exchanged another MOU on tourism cooperation.

An MOU on public administration and governance reforms was exchanged between the Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz and India External Affairs Ministry secretary (east) Jaideep Mazumdar.

An MOU on cooperation in the fields of youth and sports was exchanged between Mohamad and Jaishankar.

And finally, an MOU between the International Financial Services Centres Authority and the Labuan Financial Services Authority (LFSA) was exchanged between LFSA chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzillah and India High Commissioner to Malaysia B.N. Reddy.

At the ceremony, India-Malaysia CEO Forum co-chair Tan Sri Kuna Sittampalam, presented the Report of the 2nd India-Malaysia CEO Forum to Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

These deals are expected to strengthen strategic partnership between the two nations, promote cooperation across various fields, and create new opportunities for mutual growth and development.

Source: Bernama

Malaysia, India sign eight MOUs

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia aims to diversify its economic diplomacy efforts by participating in the intergovernmental organisation BRICS and enhance its collaboration with member countries through shared initiatives and strategic partnerships.

Malaysia has applied to join BRICS, a grouping of large emerging economies that was established in 2009 as a cooperation platform for emerging economies comprising Brazil, Russia, India, and China, with South Africa joining the group in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE) joined the organisation as new members.

“India’s distinct and influential role within BRICS is of particular importance, as we recognise that our strong bilateral ties will add significant value to the dynamics of the grouping,” he said in his lecture titled: “Towards a Rising Global South: Leveraging Malaysia-India Ties” at Sapru House, Indian Council of World Affairs (ICWA) here, today.

Anwar, who is also the finance minister, said Putrajaya is confident that its entry into this group will not only strengthen our economic linkages with India but also open new avenues for cooperation across a broader spectrum of industries and policy areas.

Calling such grouping as minilateralism, he said contrary to some views that such arrangements are contentious, Malaysia believes that minilateral mechanisms ultimately work towards delivering public goods to benefit our people and raise living standards.

“In that vein, Malaysia will not shy away from exercising agency and participating in these arrangements as we see fit. Our recent application to join BRICS is a fine example.”

Cumulatively, the gross domestic product (GDP) of BRICS member countries amounted to US$26.6 trillion, which is 26.2 per cent of the world’s GDP, almost the same as the economic strength of the G7 countries.

BRICS member countries have a large population of 3.21 billion, which continues to increase with the inclusion of Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE), which have a total of 333 million people, forming a mega-market that includes as many as 3.54 billion people, or almost 45 per cent of the world’s population.

Anwar arrived in the Indian capital of New Delhi on Monday for a three-day official visit to strengthen the 67-year-old India-Malaysia ties and establish a multi-sectoral cooperation agenda for the future.

Accompanying Anwar on the visit are Foreign Minister Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Zafrul Tengku Abdul Aziz; Tourism, Arts and Culture Minister Tiong King Sing; Digital Minister Gobind Singh Deo; and Human Resources Minister Steven Sim Chee Keong.

This is the prime minister’s first visit to India after assuming office in November 2022.

Total trade between Malaysia and India stands at US$16.5 billion, bolstered by an impressive compounded annual growth rate of 8.5 per cent in the last two decades. (US$1 = RM4.38)

Anwar added that the trade growth trajectory is not just a statistic but a testament to the deepening economic linkages facilitated by frameworks such as the Malaysia-India Comprehensive Economic Cooperation Agreement and the ASEAN-India Free Trade Agreement.

Source: Bernama

Malaysia aims to diversify economic diplomacy through BRICS – PM Anwar

Iskandar Malaysia has seen 70 per cent or RM291.4 billion of its total cumulative investment of RM413.1 billion realised to-date since the economic region’s inception in 2006.

Speaking to Bernama, Iskandar Regional Development Authority (IRDA) chief executive Datuk Dr Badrul Hisham Kassim said this remarkable progress demonstrates that Iskandar Malaysia is on track to achieve its  RM636 billion cumulative investment target by 2030.

“From 2006 to December 2023, the economic region has recorded a cumulative investment of RM413.1 billion, surpassing our RM383 billion target set for the end of 2025,” he told Bernama during the recent Southern Zone MADANI Rakyat 2024 programme at Dataran UTM Skudai, Johor Bahru.

IRDA had set a new 2030 cumulative investment target of RM636 billion for Iskandar Malaysia, after it had successfully surpassed the initial target set during the inception of the economic region.

Badrul Hisham said Iskandar Malaysia will continue to focus on high-value and innovation-driven sectors such as electrical and electronics, aerospace, medical devices, modern farming, electric vehicles, renewable energy and information communication technology, including artificial intelligence data centres.

He said this is also supported by adjacent industries like healthcare and life sciences, financial and business services and the digital creative industry.

“This is in line with the nation’s aspirations, as outlined in the New Industrial Master Plan 2030 and National Energy Transition Roadmap,” he said.

He highlighted that multinational companies such as Insulet, which produces medical devices, and data centres such as Airtrunk, Princeton Digital Group, Wiwynn and Supermicro have all expanded their operations in Iskandar Malaysia recently.

On IRDA’s future direction and the coordination of the Iskandar Malaysia Comprehensive Development Plan III (2022-2030) under the MADANI Economy agenda, he said the government has decided to streamline the economic corridor authorities to focus on efforts to facilitate the realisation of investments.

“Since the Ministry of Economy is now in the process of reviewing and streamlining these functions, we foresee that some changes will be made in our plans and targets soon after,” he said.

The move would enable IRDA to focus on what matters most for Iskandar Malaysia and the people, which is realising investments that will translate into job creation for the people, business for the local businesses and entrepreneurs, and better infrastructure and quality of life, said Badrul Hisham.

Apart from that, he said IRDA will continue to complement the Malaysian Investment Development Authority (MIDA) and Invest Johor by helping to facilitate and ensure that incoming investments can be realised quickly and smoothly.

Commenting on the Johor-Singapore Special Economic Zone (JS-SEZ), Badrul said the Invest Malaysia Facilitation Centre Johor (IMFC-J) which is managed by IRDA, has started its interim operation at its office in anticipation of and to support the creation of the special economic zone.

“The IMFC-J is pivotal in this process, acting as a central facilitator for investments within the JS-SEZ.

“Its role includes expediting approval processes, providing consultation and advisory services, and minimising bureaucratic obstacles by coordinating multiple government ministries and agencies under one roof,” he said.

Source: Bernama

Iskandar Malaysia sees realised investments of RM291.4bil to date

The Northern Corridor Implementation Authority (NCIA), in collaboration with the Malaysian Investment Development Board (MIDA), has successfully secured RM31.38 billion in investments for Penang in the first half of 2024 (1H2024).

NCIA chief executive, Mohamad Haris Kader Sultan said that this impressive achievement reflected investors’ strong confidence in the long-term potential of the Northern Corridor Economic Region (NCER), particularly Penang.

He said the investments encompass key sectors outlined in the NCER Strategic Development Plan, including high-value manufacturing, advanced services, and modern agriculture, creating more than 6,600 jobs in 1H2024.

In a statement today, he said the positive performance will catalyse NCER’s efforts to attract investments and enhance the business ecosystem in 2H2024, leveraging NCER’s regional advantages, especially in the electrical and electronics (E&E) and semiconductor sectors.

Meanwhile, Mohamad Haris also said the NCER Technology Innovation Centre (NTIC) building in Bayan Lepas here has been completed and will commence operations soon.

NTIC is a programme under NCER’s Technology Valley initiative that focuses on activities related to research, product development and specialised design.

The programme also acts as a platform for large local companies, multinational companies, start-ups, individual technocrats and young entrepreneurs to carry out technological and high-value-added activities at NCER and subsequently generate their own intellectual property.

The NTIC is expected to boost innovation, research and development activities as well as enhance the value chain for small and medium enterprises (SMEs), which will further strengthen Penang’s position as a technology and innovation hub in the region.

Mohamad Haris highlighted that 16 Penang SMEs have already benefited from matching grants under the NTIC programme, aimed at improving their value chains through the Centre of Excellence and Technology and Innovation initiatives in 1H2024.

“Besides that,  a total of 144 local workers have been approved to undergo technical skills training under the Advanced Technology Meister Programme (ATMP) initiative,” he added.

Source: Bernama

NCER records RM31.4bil investments in Penang in 1H2024

The immense potential of Sabah’s palm oil downstream industry has recently attracted three Chinese enterprises for an on-site visit in Sabah.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said these Chinese companies are looking into the potential avenues for investment and collaboration in setting up operations in Sabah.

In a statement today, Chan noted that over the past two days, representatives from Grand Oil and Food, Welle Environmental Group and Freepoints Commodities have been in Sabah to gain a deeper understanding of the current state and future prospects of the palm oil downstream sector.

“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry. My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” said Chan.

The Chinese delegation first visited Sandakan, where they toured the Sawit POIC Sandakan Industrial Park, guided by Sawit Kinabalu Group, to inspect the facilities and port infrastructure. Sandakan member of parliament Vivian Wong was present too.

“I extend my gratitude to Datuk Frankie Poon, chairman of the Sabah Development Berhad (SDB), and State Assemblyman for Tanjung Papat, for his proactive cooperation and coordination through the Sabah government-linked companies during this visit. This has strengthened foreign investors’ confidence in Sabah’s economy and fostered close collaborative relationships,” Chan added.

Following their visit to Sandakan, the Chinese delegation traveled to Kota Kinabalu to participate in a roundtable discussion led by the Ministry of Plantation and Commodities, involving both federal and state government agencies and the Chinese delegation.

“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.

Additionally, the Chinese delegation expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of Palm Kernel Cake (PKC), and the production of biomass energy and Sustainable Aviation Fuel (SAF) from Palm Oil Mill Effluent (POME) and pre-treat used cooking oil (UCO).

Chan highlighted that as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry. By focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

The roundtable meeting was attended by various state-level agencies, including the Sabah’s Ministry of Industrial Development and Entrepreneurship (MIDE), the Malaysian Palm Oil Board (MPOB) Sabah Region, the Malaysian Investment Development Authority (MIDA) Sabah, the Sabah Economic Development and Investment Authority (SEDIA), POIC Lahad Datu, Sawit POIC Sandakan, the Sabah Environmental Protection Department, and Invest Sabah.

Source: Borneo Post

Chinese firms explore Sabah investment opportunities

Malaysia’s rapid economic growth in the second quarter, at 5.9 per cent and above expectations, reflected the confidence of foreign investors in the country’s potential, said Economy Minister Rafizi Ramli.

He said this also shows that the government’s policies and economic growth narratives have been well received. Therefore, Rafizi said the government needs to continue the growth momentum by intensifying its efforts to attract investors to maintain the international confidence and positive views of Malaysia.

“So what the government is focusing on now is to ensure that not only the narrative and policy are attractive for investment and growth but also to translate that into (investment) immediately and to provide everything necessary. That needs to be done quickly and in an orderly manner.

“(Then) the (growth) momentum can continue and if this happens, we will continue to be seen as a good investment destination in the region and the world,“ he told reporters after the ‘Ask Minister Anything with the Minister of Economy’ session in conjunction with the MADANI Rakyat South Zone 2024 programme at Dataran UTM here today.

He said this when commenting on the announcement yesterday of Malaysia’s economic growth rate in the second quarter which exceeded the initial forecast of 5.8 per cent.

As one of the strategies to maintain the positive economic growth momentum, he said Prime Minister Datuk Seri Anwar Ibrahim will launch the Business Facilitation Framework, which also touches on the efficiency of government services in facilitating business. Rafizi said his ministry took a year and is now in the final stage to complete the framework.

Anwar is expected to launch the framework on Oct 4.

Meanwhile, at the “Ask Minister Anything” session, Rafizi said Malaysia would be recognised as a global middle economic power if its wish to join the intergovernmental organisation BRICS (Brazil, Russia, India, China and South Africa) was accepted.

BRICS consists of a group of countries that include prominent middle economic powers.

“I believe that if Malaysia is admitted to BRICS, it will not affect our international relations with other countries. This is because Malaysia is known as a country that practices neutral principles when dealing with global issues. When accepted, God willing, it is a recognition and their confidence in Malaysia as a middle economic power in the world. This will increase our economic capacity.

“Don’t be confused, we want to join not because of politics but because we want to establish good relations with all countries, including middle economic power countries like Russia, Brazil, India, and others,“ he added.

Source: Bernama

Robust second quarter growth reflects investor confidence in Malaysia’s economic potential – Rafizi

Penang Chief Minister Chow Kon Yeow and delegates from InvestPenang have concluded a 10-day investment and trade mission to the US, strengthening ties with American investors, and offering insights into the future of artificial intelligence (AI) and new technologies.

According to a statement issued by the chief minister’s office, the mission, which was held from Aug 4 to 14, involved a total of 22 official strategic meetings and site visits aimed at encouraging the expansion of the US companies’ Penang operations, and to attract new investments into the state.

“During the meetings, key discussions revolved around the transformative impact of AI across critical sectors, with previews of its potential applications and innovations. 

“The dialogues highlighted Penang’s strategic importance in the global supply chain, particularly in light of current geopolitical tensions,” the office said.

In addition, the discussions also underscored the exceptional capabilities of Penang’s talent pool in sustaining and enhancing the local ecosystem. 

Notably, the office said there was a strong emphasis on the urgent need for renewable energy adoption and Penang’s strategic direction towards environmental, social, and governance principles.

According to the statement, the first four days were spent in San Jose, where the delegation visited companies such as MKS Instruments, Brooks Instrument, Lattice Semiconductor, AMD, Synopsys, Efinix, Agilent, Coherent, SambaNova and Western Digital. 

The delegation then travelled to Seattle, San Diego and Los Angeles for the remaining six days, where they met with Centific, Monolithic Power Systems, Dexcom, Cohu, UST, TTM Technologies, Mattel and potential investors.

“This mission to the US not only offered better insights into the future of AI and new technologies engaged by existing and potential investors, but also served as a significant step towards reinforcing our existing partnerships and laying the groundwork for future growth. 

“The collaborative efforts and feedback gathered during this trip will undoubtedly strengthen economic ties, and ensure continued prosperity for both Penang and our international partners,” the office added. 

Source: Bernama

Stronger investor ties, expansion opportunities following delegation’s 10-day trip to US, says Penang CM’s office

The Ministry of Investment, Trade and Industry (MITI) will implement preventive measures to address potential supply chain disruptions, including the development of a platform to enhance traceability, ensuring the resilience of Malaysia’s industrial supply chain.

MITI also plans to establish initiatives that provide centralised access to guidelines, funding opportunities, and support programmes, while fostering knowledge sharing among industry players.

These measures were decided at the Sixth National Investment Council (MPN) Meeting, which focused on “Building Economic Security Through a Resilient Supply Chain,“ the ministry said in a statement.

Its minister, Tengku Datuk Seri Zafrul Abdul Aziz emphasised the need for responsive strategies to manage and recover from supply chain disruptions, citing findings from its engagement sessions with industry stakeholders and bilateral and multilateral cooperation.

He said the global supply chain is the lifeline of the world economy, with interconnected systems that complement one another.

“Supply chain security ensures the smooth flow of goods, services and inputs across borders and fosters economic growth and universal prosperity.

“The COVID-19 pandemic served as a wake-up call, exposing vulnerabilities and underscoring the importance of a resilient and efficient industrial supply chain,“ he said.

As an open economy, Malaysia is particularly sensitive to supply chain disruptions caused by global geopolitical events and natural disasters, MITI noted.

To maintain the competitiveness of the Malaysian economy, MITI is committed to ensuring that the national industrial supply chain remains resilient and secure against future disruptions, the minister added.

The ministry stressed the importance of a multi-pronged approach to bolster global supply chain resilience.

“Collaboration between governments, businesses, and international organisations is crucial for facilitating information sharing, coordinating responses, and developing uniform standards.

“This includes leveraging technology, diversifying sourcing options, fostering regional cooperation, and enhancing flexibility as key strategies to strengthen supply chains against disruptions,“ MITI said.

MITI also highlighted the need for digitisation to reinforce supply chain resilience and security, drive innovation, and provide a competitive edge in the increasingly complex global market.

“By embracing digital technology, Malaysia can improve its ability to prevent and respond to disruptions, implement robust security measures, and streamline operations for greater efficiency and agility through digitisation, including systems, applications, and virtual centres of excellence,“ the ministry explained.

Source: Bernama

MITI unveils initiatives for stronger industrial supply chain