Prime Minister Datuk Seri Anwar Ibrahim is scheduled to hold a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva here Sunday.

Anwar, who is also the Finance Minister, will also meet with representatives from the Malaysian and Brazilian semiconductor industries and participate in a roundtable session with Brazil’s captains of industry on the second day of his visit here.

The Prime Minister will also participate in the first oil celebration of Malaysia’s Yinson Holdings Bhd’s floating, production storage, and offloading (FPSO) unit, Maria Quitéria, which achieved its first oil production on Oct 15, 2024.

This milestone marked the commencement of the project’s firm charter, under which contracted day rates will be paid to the group’s unit, Yinson Production, for a period of 22.5 years until 2047.

FPSO Maria Quitéria is the second asset delivered by Yinson Production for its client, Petrobras, following the delivery of FPSO Anna Nery in May 2023. FPSO Maria Quitéria has a production capacity of 100,000 barrels of oil per day (bpd) and a storage capacity of one million barrels.

The day will end with the Prime Minister having dinner with Malaysian diaspora and friends of Malaysia.

Anwar arrived in this vibrant coastal city on Saturday after attending the APEC Economic Leaders Week (AELW) in Lima, Peru for his first official visit to Brazil and as a guest country for G20.

Malaysia, along with 16 other countries, including Chile, Qatar, Egypt, Singapore, Spain, United Arab Emirates, and Vietnam are guest countries for the G20 Summit. Anwar’s visit was made at the invitation of Brazilian President Lula da Silva.

The Prime Minister is accompanied by Foreign Minister Datuk Seri Mohamad Hasan and Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz.

The Malaysian delegation also includes Deputy Minister of Natural Resources and Environmental Sustainability Datuk Seri Huang Tiong Sii, Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir, and other senior Malaysian government officials.

In 2023, Brazil, the largest country ini South America, was Malaysia’s 20th largest trading partner, 29th largest export destination, and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination, and largest import source.

Source: Bernama

PM Anwar to meet Brazilian president, captains of industry

The state government is planning to introduce several initiatives under the Speed Selangor Policy next year, with a focus on emerging and advanced industries, aimed at streamlining processes and facilitating investor entry.

Menteri Besar Dato’ Seri Amirudin Shari said these efforts are in line with the administration’s objective of becoming a top choice for both domestic and international investors across Asia.

Amirudin added that the initiative can help Selangor create quality, dignified job opportunities more quickly.

“Every day and week saved is precious time for our workforce — whether they are youths, graduates, or Selangor residents already employed — to advance more quickly and contribute to strengthening the state’s economy.”

“In line with this, starting next year, the administration will introduce several initiatives under the Speed Selangor Policy, focusing on emerging industries,” he said when tabling the 2025 Selangor State Budget at the assembly here today.

“They include artificial intelligence (AI), supporting industries, semiconductors including electrical and electronics, the development of industrial parks, housing including affordable categories, aerospace, and advanced manufacturing.”

Amirudin said once focus is established on these industries, it will be expanded to involve all government processes to boost the ease of doing businesses in Selangor.

Among others, the Menteri Besar said the approval period for planning permits for industrial areas will be reduced from the current three-and-a-half months to 14 days, provided the specified criteria are met.

“For fast-track planning permit applications, all local councils will standardise their procedures, and approvals will be issued within seven days. This policy will be implemented by April 2025 at the latest.

“Processes and procedures that can be enhanced through the use of AI technology and automation will be expedited,” he said.

Meanwhile, the Industrial Green Lane approach for planned industrial areas will allow construction projects that are 80 per cent complete on site to be granted a business licence within 24 hours after the Certificate of Completion and Compliance is issued.

Separately, Amirudin said the state will develop a high-impact project management system, with an allocation of RM600,000, to ensure the success of projects initiated by the state government or those done in collaboration with private entities.

“This system will monitor every project phase, from the announcement stage, the agencies involved, allocated budgets, to planning and implementation, including any issues causing delays.

“This initiative will enhance the administration’s ability to manage high-impact projects as outlined in the First Selangor Plan and any other future plans.

“The system will also serve as a reporting platform to enhance government accountability to all stakeholders, providing an official, accurate, and reliable source of information on state government projects.”

Amirudin added that the state government has also allotted RM523,800 to enhance the state’s online tender system.

Source: Selangor Journal

Speed Selangor Policy to drive investment, create more jobs — MB

Malaysia’s strategic location, coupled with forward-looking and progressive policies, makes it an ideal hub for business and collaboration, especially for French stakeholders aiming to tap into the Asean market, said Malaysia’s Ambassador to France, Datuk Eldeen Husaini Mohd Hashim.

Positioned in the heart of South-east Asia, he noted that Malaysia boasts a robust and diversified economy, offering unparalleled access to the rapidly growing Asean bloc.

“Having said this, there is a need for deeper engagement with our French counterparts to enhance understanding of the South-east Asian region through the Asean bloc.

“As Malaysia prepares to assume the Asean chairmanship in 2025, we (the embassy) are committed to championing this vision,” he told Bernama, in conjunction with a networking event held in Paris, France, to celebrate Malaysia’s heritage and prospects in the country.

Guided by the Madani concept, Eldeen said the embassy is committed to driving inclusive and sustainable growth that ensures no one is left behind.

He said the highlight of the event was the launch of the Malaysia Business Club, an initiative aimed at fostering stronger business ties between Malaysia and France.

“This initiative provides a dedicated platform for Malaysian and French businesses to connect, explore opportunities, and foster cross-sector collaborations.

“Positioned as a precursor to a future formal association, the club aims to strengthen bilateral trade and investment ties,” Eldeen said.

Under the theme “Inclusivity and Sustainability”, he pointed out that the event served as a prelude to Malaysia’s Asean chairmanship in 2025 and underscored Malaysia’s pivotal role in promoting Asean’s collective vision, while simultaneously strengthening bilateral relations with France.

Eldeen added that the event was held yesterday in collaboration with the Mairie du XVI (City Council of the 16th Arrondissement) and was attended by approximately 200 guests, including Excellency Mayor Jeremy Redler, members of parliament, officials from the National Assembly and Ministry of Foreign Affairs France (MFA), French business leaders, cultural practitioners, and other government officials.

On Sept 12, Bernama reported that the Malaysian Embassy in Paris plans to establish a business association for Malaysian entrepreneurs in France by the end of this year to build business ties and pave the way for new opportunities with one of Europe’s largest economies.

Source: Bernama

Malaysia aims to strengthen French ties with new ‘Business Club’ initiative, says ambassador

The Bandar Teknologi Maju Perlis project in Chuping, set to begin next year, is expected to create around 2,000 direct job opportunities in technology fields.

Communications Minister Fahmi Fadzil said the project, costing US$11 billion (US$1 = RM4.47), is expected to begin phased operations by mid-2027.

He added that the project would also empower the country’s Technical and Vocational Education and Training (TVET) sector through collaborations with public institutions of higher education such as Universiti Malaysia Perlis (UniMAP) and other TVET institutions.

“Our youth will gain skills to support the operations of this technology city while also becoming proficient in utilising AI (artificial intelligence) technology,” he told a press conference here today.

Earlier, Fahmi had accompanied the Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail, who attended an agreement signing ceremony on Bandar Teknologi Maju Perlis, a joint venture between Sirage Capital Sdn Bhd and Skyvast Sdn Bhd.

Fahmi also said that the project would include infrastructure to accommodate an up to 1.25 Gigawatts (GW) AI data centre, which would operate off-grid, not relying on existing power networks.

“They will utilise energy sources such as solar, battery storage, or gas turbines to ensure the 1.25GW data centre can operate efficiently,” he explained.

“This strategic investment in Chuping is unique because it is one of the places with the highest sunlight exposure in Malaysia, supported by the suitable topography for the development of Bandar Teknologi Maju Perlis,” he explained.

According to Fahmi, the off-grid concept is expected to attract many companies aiming to ensure their investments receive green ratings.

He said the Communications Ministry is confident that this development would contribute to the country’s digital economy transformation, particularly in Perlis.

“This is a game-changer, a project that will put Perlis on the global map for AI data centres. The Ministry will provide support, including discussions on aspects like submarine cables to facilitate the construction of data centres in Perlis,” he said.

Source: Bernama

Bandar Teknologi Maju Perlis to offer over 2,000 jobs in technology fields – Fahmi

Prime Minister Datuk Seri Anwar Ibrahim has conveyed the government’s readiness to collaborate with and assist the new Hong Kong Economic and Trade Office (HKETO) in Kuala Lumpur, whose establishment was announced by Hong Kong early this year.

“This will further strengthen the ties and cooperation between Malaysia and the Hong Kong Special Administrative Region (HKSAR),” he told reporters after a bilateral meeting with HKSAR chief executive John Lee Ka-chiu here on Friday.

During the meeting, the two leaders had the opportunity to consider collaborations in the areas of investment, trade, education, tourism, semiconductor, information technology, financial services and people-to-people relations, he added.

Hong Kong also invited Malaysia to learn about transportation technology and participate in its science, technology and innovation hub development project, including a science park.

Also present during the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Malaysian Ambassador to Peru Ahmad Irham Ikmal Hisham.

Anwar is on an official visit to Peru where he is attending the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week. During the visit, bilateral meetings were also scheduled with leaders of some APEC member economies.

In February this year, the Foreign Ministry said in a statement that the move to open the HKETO in Kuala Lumpur highlights the strong economic and trade ties between the HKSAR and Malaysia.

The decision for this initiative came after Anwar, who is also the Finance Minister, made the proposal to Lee during their bilateral meeting in Putrajaya in July 2023.

“Being strategically located in Southeast Asia, Malaysia continues to solidify its position as a key partner for Hong Kong – as the two sides seek to further expand and deepen the existing trade, investment, and economic collaborations,” the statement said.

The strength of this partnership is evident in the robust trade figures between the two sides.

In 2023, Malaysia and Hong Kong enjoyed total trade of RM105.09 billion (US$23.03 billion) — comprising exports valued at RM89.84 billion (US$19.69 billion) and imports worth RM15.25 billion (US$3.34 billion) — with the trade balance being in Malaysia’s favour.

Both sides have been actively engaging one another during the exchange of high-level visits.

“The opening of the HKETO in Kuala Lumpur not only signifies a new chapter in Malaysia-Hong Kong relations, but also adds significance to the 50th anniversary of Malaysia-China diplomatic ties,” the statement said.

Source: Bernama

Malaysia prepared to work with new Hong Kong Economic and trade office, says PM

Japan has expressed its support for Malaysia as the Chair of ASEAN in 2025, while Putrajaya intends to continue its Look East Policy, particularly in education and technology transfer, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that during a bilateral meeting with his Japanese counterpart, Shigeru Ishiba, they also assessed the progress of cooperation between the two countries in various fields, including trade, energy transition, security and defence, maritime, education, and culture.

“We also discussed issues related to the South China Sea and the current situation in Myanmar,” said Anwar following the meeting on Friday, on the sidelines of the 2024 APEC Summit here.

Anwar said he also gave assurance to Ishiba that Malaysia will certainly strengthen its relations with Japan during its ASEAN Chairmanship, which will begin on Jan 1, next year.

“Malaysia gives priority to its relations with Japan. I am thankful that since you assumed leadership as (Japan’s) Prime Minister, you have taken a very positive position in terms of promoting bilateral relations with Malaysia.

“Once, we assume ASEAN Chairmanship, we will certainly strengthen the relations with you,” he said.

Anwar said Japan is one of the first countries to support Malaysia’s industrial advancement and his MADANI Government intends to continue cooperation in this area.

He said he had also invited Ishiba to visit Malaysia as soon as possible.

“I hope that the relationship between Malaysia and Japan will continue to be strengthened, thereby attracting more investments for the progress and economic potential of the country,” he added.

Also present at the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Malaysia’s Ambassador to Peru, Ahmad Irham Ikmal Hisham.

Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years, with total trade between the two countries valued at RM156.64 billion (US$34.39 billion) in 2023.

As of 2023, a total of 2,810 projects by Japanese companies have been implemented in Malaysia, with investments amounting to RM102.11 billion (US$29.67 billion).

Source: Bernama

Malaysia-Japan bilateral meeting touches on ASEAN, look east policy – PM Anwar

A “scoping exercise” to strengthen the Malaysia-New Zealand Free Trade Agreement (MNZFTA) will cover new areas of cooperation such as digital trade and halal recognition, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In a posting on his X account on Friday, Tengku Zafrul said he is confident that close cooperation between Malaysia and New Zealand will open up new opportunities for the people of both countries as well as strengthen regional economic competitiveness.

Tengku Zafrul, who is in Peru to accompany Prime Minister Datuk Seri Anwar Ibrahim to the 31st Apec Economic Leaders’ Meeting (AELM), met with New Zealand Trade Minister Todd McClay to discuss opportunities to strengthen economic ties between the two countries.

“We discussed opportunities to strengthen economic ties between Malaysia and New Zealand. With strong bilateral trade relations, New Zealand is Malaysia’s second largest trading partner in the Australasia region, with trade value reaching US$2.54 billion [RM11.38 billion] in 2023,” he said.

Malaysia and New Zealand are also targeting a 50% increase in bilateral trade by 2030, especially in the high-value manufacturing sector and the digital economy.

Source: Bernama

Malaysia, New Zealand committed on having ‘scoping exercise’ to strengthen FTA

Malaysia stands ready to align its policies to match new demands and ever-evolving industries in a multi-pronged approach to continuously attract high-value investments.

For instance, Malaysia is now talking about assessing the entire policy on water conservation, Prime Minister Datuk Seri Anwar Ibrahim said, citing the high demand for water by data centres.

“We have never encountered such a high demand for water except now by these data centres. I don’t know what they do with it, but they have been asking for more water, more energy,” he quipped at the session titled, “Opportunities and Challenges in the AI Revolution”, APEC CEO Summit here Thursday.

Other panellists in the session were Microsoft vice-president of Data & AI, Zia Mansoor, Vobile chief executive officer Yangbin Wang, and Google vice-president, government affairs & public policy, Karan Bhatia.

Also present at the session were Foreign Minister Datuk Seri Mohamad Hasan and International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The event took place at the Grand National Theatre of Peru and was moderated by APEC Business Council (ABAC) Canada member, Jan De Silva.

Besides this, there is also a need for skilling, up-skilling, training and exposure, changing the curriculum in universities, colleges, and schools. To this end, Malaysia is successful because the government listens, Anwar said.

“When our friends from Microsoft, Google, and Huawei come to us, we tell them to give us some time, let us listen to the requirement you have,” he said.

Hence, public policy and governments cannot assume that they can go on inviting and attracting this sort of investment without being prepared to undertake major initiatives which would allow these agencies of investment to come in, added the Prime Minister.

Anwar, who is also the Finance Minister also acknowledged that the progress the country made in attracting investments was not without its set of challenges and bottlenecks.

“We were also stuck with some bureaucratic rules and we have to be able to coordinate or bypass this. And then the system is not only the state governments, we have municipalities. So, how do you cut across all this?

“But, if we could do it with one particular major investor. Then, it would just spread out,” he explained in the 45-minute session.

On a question about how this could be done in the context of ASEAN, Anwar said it requires effective coordination.

“We have a bigger framework, somewhat similar incentives, and we complement each other because other countries have the expertise, but no water, and some have energy. So, we are keen to have this sort of collaboration more effectively.

“I am proud to say that within ASEAN, we are already talking about an ASEAN grid, that will help, for example, create or provide more energy,” said the Prime Minister.

Malaysia will be the ASEAN chair in 2025.

Source: Bernama

Malaysia stands ready to align policies to match new demands, industries – PM Anwar

As ASEAN Chair in 2025, Malaysia is committed to increasing regional integration and benefitting from stronger cooperation, including in the halal industry, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said through the latest memorandum of understanding, Malaysia will support Peru’s efforts to develop a halal certification framework, thereby strengthening Peru’s position in the rapidly growing global halal market in various industries. “I am confident that this cooperation will bring great economic benefits and open up new opportunities for the people of both countries,“ he said in a post on X today.

He said the Ministry of Investment, Trade and Industry (MITI) had held a roundtable meeting that brought together 17 Malaysian companies and 18 Peruvian companies, opening opportunities for cooperation in important sectors such as finance, renewable energy, halal, and logistics. “With a comprehensive range of free trade agreements (FTAs), Malaysia is not only the gateway to the ASEAN market, but also offers wider access to Peruvian companies to expand in the Asia-Pacific region,“ he added.

The minister is attending the 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week (AELW) 2024 in Lima, Peru.

Source: Bernama

Tengku Zafrul: Malaysia committed to regional integration including for halal industry

Small and medium enterprises (SMEs) play a crucial role in driving economic growth within the Asia-Pacific Economic Cooperation (APEC) region, particularly when it comes to fostering inclusive development, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said inclusive growth is not only a kind of growth that large companies and multinationals can enjoy, but it must also be equitable.

“(This is) why we need to get the involvement of SMEs and the youth, as well as the involvement of women enterprises,” he said during a recent interview with the Heat, a daily talk show under the China Global Television Network (CGTN) America.

Tengku Zafrul said that during the APEC summit this year, inclusive growth will be among the topics to be discussed to ensure that all segments of businesses can gain market access, for example, through digital and green platforms.

The interview was uploaded to the CGTN America YouTube Channel here today.

Tengku Zafrul said that 79 per cent of Malaysia’s trade was with APEC member economies last year.

He also cited the fact that 70 per cent of Malaysia’s working population is employed by SMEs, including women-owned enterprises and micro SMEs.

With Malaysia assuming ASEAN chairmanship next year, he said the country is planning to conclude the Digital Economic Framework Agreement, which will see e-commerce as one platform with streamlined guidelines, policies, and laws, enabling small companies to participate in payments, for example, and many more.

“So, this is similar for APEC economies. We need to make sure that even urban and non-urban areas are integrated in terms of access to markets.

“And I think it is important that this (inclusive growth) is being discussed because we are always talking about growth with large countries versus smaller countries, countries that are more developed versus less developed,” said Tengku Zafrul.

However, he stressed that at the same time, the grouping needs to look at the growth of countries, within regions, between big and small companies, and other enterprises like social enterprises and women’s enterprises.

Tengku Zafrul is currently in Lima, Peru, along with the Malaysian delegation led by Prime Minister Datuk Seri Anwar Ibrahim, who is on an official visit to the capital, attending the 31st APEC Economic Leaders’ Week from Tuesday.

Today, APEC member economies represent a population of around three billion people, nearly 30 per cent of the global population.

They constitute almost 60 per cent of the global gross domestic product and facilitate nearly 50 per cent of global trade.

Source: Bernama

SMEs play crucial role in driving growth in APEC economies, fostering inclusivity – Tengku Zafrul

Malaysia’s businesses must now adapt the US regulatory and environmental, social and governance (ESG) compliance standards to remain competitive in one of the world’s largest markets.

This necessity is underscored by Malaysia’s strong trade relationship with the US, which is characterised by a 19.8% trade surplus and robust export growth, highlighting the nation’s competitiveness, according to the American Malaysian Chamber of Commerce (Amcham Malaysia) chief executive officer Datuk Siobhan Das.

During her presentation on What does it take to export to the US and participate in the US Global value chains today?, Siobhan said the US remains a critical export destination for Malaysian goods, ranging from petroleum products to machinery and palm oil.

“However, evolving consumer expectations and new regulations such as California’s SB 253 mandate [Passed in October 2024] for emission disclosures, require Malaysian exporters to realign their operations.

“If your customer demands ESG requirements, it is incumbent on suppliers to either meet those compliance areas or opt out of the market,” she said at the Malaysia External Trade Development Corporation (Matrade) webinar entitled “Remain relevant with ESG or exit US market” held on Wednesday. 

She added that Malaysian businesses must understand their customers’ needs to succeed in the US supply chain.

Highlighting the importance of due diligence, Siobhan noted that compliance issues, such as forced labour concerns and the US Customs Border Protection’s enforcement measures, could severely impact trade.

“Malaysia’s reputation as a trusted trading partner depends on adhering to these requirements,” she said, urging companies to ensure transparency and traceability in their supply chains.

New US regulations, including the Green New Deal and stricter enforcement under acts such as the Foreign Corrupt Practices Act (FCPA) and the Lacey Act, pose additional challenges, she noted.

Siobhan said Malaysian exporters must also account for emerging tariffs and sanctions amid shifting geopolitical dynamics, particularly with the potential implications of a new US administration.

“Despite these challenges, Malaysia’s role in global supply chains remains significant.

“The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) provides Malaysian exporters a competitive edge, allowing them to tap the US market,” she said.

She, however, said businesses must avoid risks associated with transshipment practices and comply with country-of-origin rules.

“Compliance is not just about fulfilling regulatory requirements. It is also about protecting Malaysia’s reputation and ensuring continued trade success to the US,” Das added.

She also emphasised the importance of leveraging technology to enhance supply chain traceability and mitigate risks.

“As the US consumer market increasingly prioritises sustainability and ethical practices, Malaysian exporters must proactively address these expectations to remain competitive.

“The alignment with ESG principles not only boosts brand reputation but also attracts new business opportunities and mitigates regulatory risks,” she said.

Earlier, Matrade senior director Raja Badrulnizam Raja Kamalzaman said in his opening remarks that ESG is no longer a peripheral topic but has become integral to corporate operations across industries.

“Businesses that fail to adopt ESG practices risk losing market share and face regulatory backlash, which could ultimately lead to their exit from the US market,” he said.

He noted that compliance with sustainable practices such as utilising eco-friendly materials and minimising waste can significantly enhance the marketability of Malaysian exporters.

Source: Bernama

Malaysian businesses urged to prioritise ESG compliance to compete in US market

Continuous investment in infrastructure projects is helping Malaysia strengthen its position as a regional trade and investment hub while boosting global competitiveness.

Deputy Economy Minister Datuk Hanifah Hajar Taib said the government remains committed to infrastructure projects such as highways, ports, and airports, aiming to achieve a gross domestic product growth target of five to six per cent under the 12th Malaysia Plan (12MP).

“The availability of robust transport infrastructure facilitates the smooth movement of goods and people, contributing to public welfare and accelerating economic activities, including tourism, travel, and import and export,” she told the Dewan Rakyat in a question-and-answer session today.

However, Hanifah noted that project distribution remains constrained by budget and financial capacity, alongside considerations such as sustainability, urgency, criticality and public safety.

She was responding to a question from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) on key infrastructure plans to support Malaysia’s economic growth and competitiveness globally.

Hanifah added that the infrastructure plan also benefits underserved areas like rural regions in Sabah and Sarawak through enhanced basic infrastructure, increased mobility, and improved digital connectivity, optimising land use for the rural economy.

“Key indicators set under the 12MP Mid-Term Review for Sabah and Sarawak include a target of 98 per cent coverage for clean water access and 99 per cent for electricity access.

“Additional indicators are the construction and upgrading of 700 km of rural roads, new sites for digital infrastructure, and increased internet connectivity points in rural schools,” she added.

Source: Bernama

Malaysia ramps up infrastructure to strengthen global competitiveness

The latest AHK World Business Outlook Fall 2024 Survey conducted among German companies in Malaysia reveals an optimistic forecast for 2025, with positive sentiment about both current conditions and prospects.

The survey highlights key insights reflecting the resilience and growth expectations of German businesses operating in Malaysia.

When asked to assess the current performance of their company, 92% of German businesses in Malaysia report conditions as “good or satisfactory”, which marks a significant increase of 10% compared to the same period last year.

Strong economic development and confidence among German businesses in Malaysia are expected to continue into next year, with 97% of respondents describing the outlook for 2025 as “favourable or stable”.

While Malaysia has always been recognised for its strong economic foundation, this year’s survey results demonstrate a significant boost in confidence, surpassing expectations from last year’s outlook and highlighting the continued resilience of Malaysia’s economy.

Reflecting this confidence, more than 63% of companies expect positive business development over the next 12 months, while 35% anticipate the current stability will be maintained. Only 1.8% predict a decline in performance, showcasing a predominantly positive outlook for the year ahead.

Additionally, four in 10 companies intend to increase investments in the coming year, suggesting a commitment to further growth within the business community.

Employment plans also appear to be promising, with almost half of the German companies in Malaysia indicating plans to ramp up hiring. An equal percentage (47%) intend to retain their current workforce, emphasising a dual approach to growth and stability in human resources.

While the survey paints a generally encouraging outlook for businesses in Malaysia, respondents identified several challenges that could potentially impact their economic development in the coming years.

Survey participants view demand, economic policy conditions, and lack of skilled workers as potential challenges. These insights underscore the need for ongoing vigilance and strategic planning as companies navigate both opportunities and uncertainties in a highly competitive and volatile global market.

Overall, the findings of the survey illustrate a strong confidence among companies in Malaysia, highlighting a positive trajectory for business development and economic growth in the coming year.

Malaysian-German Chamber of Commerce and Industry (MGCC) executive director Jan Noether said, “The results of the AHK World Business Outlook Fall 2024 Survey align perfectly with our expectations for the future of German business in Malaysia. The strong sentiment and optimism reflected in the survey highlight the positive situation we are experiencing here and underscore our confidence in Malaysia’s economic stability and growth prospects. German companies are comfortable and committed to the Malaysian market, with a clear outlook for continued success and expansion in the year ahead. Moreover, Malaysia’s stable economic environment and supportive policies play a key role in stimulating further investment, reinforcing our belief in the country as a reliable and attractive hub for business growth.”

In Malaysia, the survey was conducted between Sept 23 and Oct 16, with 111 respondents from MGCC member companies, comprising mostly German companies with branches or subsidiaries in Malaysia, primarily from the manufacturing, trade, and services sectors.

The survey is part of the broader AHK World Business Outlook, a biannual global research initiative conducted by the German Chamber of Commerce and Industry. It surveys member companies from the network of German chambers of commerce abroad (AHK), which represent more than 40,000 companies in 93 countries.

Source: The Sun

German companies in Malaysia optimistic about prospects in 2025, survey shows

Deputy prime minister Datuk Seri Dr Ahmad Zahid Hamidi has arrived in the United Arab Emirates (UAE) capital to kickstart his seven-day official work visit.

The special aircraft carrying Zahid landed at the Al Bateen Airport at 3.12pm local time.

He was welcomed by the UAE Energy and Infrastructure Minister Suhail Mohamed Al Mazrouei and Malaysian ambassador designate to the UAE Tengku Datuk Sirajuzzaman Tengku Mohamed Ariffin.

It is Zahid’s inaugural official work visit to the UAE since becoming deputy prime minister on Dec 3, 2022.

Meanwhile, Tengku Sirajuzzaman said Zahid is expected to highlight the various initiatives under the Madani Economy Frame aimed at providing a conducive environment to attract foreign investors to Malaysia.

“He will also meet with industry players and stakeholders in the UAE that include the fields of education, artificial intelligence (AI) and natural disaster management which is Space42, as well as NAFFCO FAZO (National Fire Fighting Manufacturing FZCO – a Middle East based firefighting products manufacturer).

“Zahid is scheduled to launch the participation of Malaysia International Halal Showcase (MIHAS) in Middle East Organic and Natural Product Expo at the Dubai World Trade Centre on Nov 18.

“Malaysia’s participation will strengthen MIHAS’s status as a globally recognised trade exhibition and at the same time, position the country as a leading player in the international halal landscape,” he said in a media briefing with Malaysian reporters.

Tengku Sirajuzzaman said the bilateral relations between Malaysia and the UAE began in 1973 and since then, the ties between the two countries have grown steadily due to close economic relations, mutual respect and cooperation in various fields.

Both countries, he said, held the Joint Committee for Cooperation meeting here on June 4 this year and have recently concluded discussions on the Malaysia-UAE Comprehensive Economic Partnership Agreement.

He said the UAE is Malaysia’s second largest trading partner, the second largest export destination and the second largest import destination from the West Asia region.

Last year, Malaysia’s total trade with the UAE increased by 5.4 per cent from RM37.6 billion (USD8.53 billion) to RM39.63 billion (USD8.67 billion) compared to 2022, he said.

“The UAE is one of the largest foreign investors in Malaysia among West Asia countries and its current major investments include Mubadala Petroleum, Lulu Hypermarket, Medini Development dan Landmark Group.

“Meanwhile, Malaysian investment in the UAE is RM1.4 billion (USD375.9 million) and Malaysian companies operating in the UAE include Petronas, TNB, UEM, Eversendai Corporation, Shing Yang Shipping and Marrybrown.

“Malaysia encourages UAE investors to continue actively exploring investment opportunities in high value projects.

“Among the potential areas that can be explored together with the UAE are pharmaceuticals, digital and green economy, AI, electric and electronics, chemicals and aerospace,” he said.

Source: NST

Zahid to boost bilateral ties with UAE through trade, investment, AI, green tech

Inquiries by Chinese companies for factory and office space in Malaysia have spiked since Americans voted for Donald Trump to return to the White House, driven in part by his campaign pledge to slap 60 per cent tariffs on Chinese goods.

During his first term, Trump’s “America First” policy sparked a trade conflict with China, with tariffs imposed on US$550 billion of Chinese products. The tensions between Washington and Beijing also led to disruptions in global supply chains and fuelled uncertainty in financial markets.

With multinationals seeking alternative suppliers outside China, regional countries, including Malaysia, Thailand and Vietnam, have benefited from the diversification, especially in sectors like semiconductors and medical supplies.

South-East Asia nations are preparing for more turbulence ahead after Trump said a blanket tariff regime would be levied at 10 per cent on all imports.

In Thailand, WHA Group CEO Jareeporn Jarukornsakul told Reuters that the industrial estate giant has been flooded with phone calls from Chinese customers in anticipation of the tariff spike, prompting it to expand its Chinese-speaking sales force.

Similarly, Malaysian real estate sellers have been reporting an uptick in interest in business relocation as Trump’s return to the White House may bring a surge in Chinese companies looking to move supply chains to Southeast Asia to shield their business from the tariff impact.

“The US election results will drive new growth in Chinese business investment in Malaysia and South-East Asia,” Kashif Ansari, Group CEO of real estate firm Juwai IQI, told This Week in Asia.

The firm, which supports companies in business space expansion, has received six inquiries from Chinese entities since last week. “Chinese companies were prepared for this,” Ansari said.

A recent Juwai IQI report found that Malaysia and neighbouring countries have received significant investment so far this year in sectors such as automotive, real estate, and semiconductors, as Chinese capital shifts away from G7 economies to Asia.

The report also noted that nearly all Chinese investments so far this year have gone into building new facilities, marking a significant shift from pre-pandemic trends.

Private Chinese firms are leading the investment push, with only 10 per cent of Chinese investment in Malaysia coming from state-owned enterprises.

“They’re setting up operations here, hiring local talent, and establishing key production facilities in Malaysia,” Ansari said.

Ten Wee Seong, CEO of Seri Pajam Development, the developer of the SPD Tech Valley industrial estate in Negeri Sembilan, reported “significant interest from Chinese companies” in sectors such as semiconductors, electronics manufacturing, and renewable energy.

“Looking ahead to 2025, we anticipate a continued surge in demand for industrial spaces [from Chinese companies] within SPD Tech Valley,” he said.

In May, Hong Leong Investment Bank’s research division noted that while trade wars often harmed the global economy, Malaysia’s neutral stance has helped attract foreign direct investment.

The bank’s report highlighted that during Trump’s first term, Malaysia’s exports to the US grew at an average of 7.7 per cent annually – a faster growth rate compared with its shipments to China.

Approved foreign investments in Malaysia more than tripled to 188 billion ringgit (US$42.5 billion) between the start of the trade war in 2018 and 2023, according to the report.

In congratulating Trump on his election victory last Wednesday, Prime Minister Anwar Ibrahim noted that the US remained Malaysia’s largest source of foreign investment and a vital player in the Asia-Pacific region.

“Malaysia hopes that America will reinvigorate its engagement with South-East Asia,” Anwar said.

Source: South China Morning Post/The Star

With Trump’s victory, Malaysia sees more interest from Chinese firms for business space

Malaysia’s participation in the two Asia-Pacific Economic Cooperation (APEC) meetings in Peru and the G20 Summit in Brazil is expected to open up opportunities to strengthen Malaysia’s economic ties on the global stage.

The presence of Prime Minister, Datuk Seri Anwar Ibrahim, at these two high-profile conferences holds significant potential but also comes with challenges, according to Executive Director of the Malaysian Institute of Economic Research (MIER), Prof Dr Anthony Dass.

Dass said Malaysia should view the APEC summit as a strategic platform to enhance trade with countries in the Asia-Pacific region.

Data shows that around 82 per cent of Malaysia’s total trade in 2022 involved APEC member countries, with major exports such as electronics, palm oil, and petroleum worth approximately USD 250 billion (RM 1.1 trillion).

“The Latin American market, particularly Brazil, which is a member of BRICS, presents an opportunity for Malaysia to diversify its export markets. In 2022, Malaysia-Brazil trade was valued at about USD 3billion (RM 13.2 billion), but sectors such as palm oil, rubber, and electrical products still have significant potential for growth,” he said.

He added that the summit also provides Malaysia an opportunity to demonstrate its commitment to global issues such as climate action.

Malaysia aims to achieve carbon neutrality by 2050 and targets 31 per cent of its energy mix to come from renewable sources by 2025.

Meanwhile, Dass noted that although Malaysia’s participation in the G20 was by invitation, it allows the country to highlight its efforts in the green economy, attracting green investments estimated to reach USD15 billion (RM 66 billion) by 2025.

Additionally, the digital economy, which contributed about 23 per cent to Malaysia’s GDP in 2022, remains a key focus.

Through the MyDIGITAL framework, Malaysia plans to increase the digital economy’s contribution to 25.5 per cent by 2025.

By participating in these summits, Malaysia has the opportunity to establish partnerships with technology leaders that can strengthen its digital infrastructure, contributing an additional USD 25 billion (RM 110 billion) to the economy over the next five years.

In terms of investment, Malaysia is focusing on expanding the renewable energy sector, particularly solar energy, to achieve its target of 31 per cent electricity generation from renewable sources by 2025.

The G20 summit, which was also attended by international investors, opens up opportunities for Malaysia to attract more foreign investments in this sector.

“By 2022, Malaysia successfully attracted approximately USD 30 billion (RM 132 billion) in Foreign Direct Investment (FDI), mainly in the manufacturing sector. The presence of Anwar at APEC and G20 will help strengthen Malaysia’s position as a hub for semiconductor and electronics manufacturing,” said Dass.

However, the main challenge facing Malaysia is managing the ongoing global geopolitical tensions. The trade conflict between the United States and China, two of Malaysia’s main trading partners, requires a careful approach to ensure that Malaysia can maintain its trade networks without jeopardising the country’s projected GDP growth rate of around 4.5 per cent in the coming years.

The Russia-Ukraine conflict has also affected global energy prices, which in turn has impacted inflation in Malaysia, with an average rate of 3.3 per cent in 2023.

If this conflict persists, rising energy costs could place pressure on the country’s fiscal stability and social spending.

Malaysia also faces the challenge of aligning its priorities with the different agendas of APEC and the G20. APEC focuses more on regional trade integration within the Asia-Pacific, which aligns with Malaysia’s interests, while the G20 is more focused on global economic issues and climate change.

Source: NST

Apec to boost Malaysia’s economic ties

Malaysia is prepared to host the First Coordination Meeting between Malaysia and Saudi Arabia at the Foreign Minister level to discuss further cooperation between the two nations.

This was conveyed by Prime Minister Datuk Seri Anwar Ibrahim during a meeting with Crown Prince and Prime Minister of Saudi Arabia Mohammed Salman Abdulaziz Al-Saud in Riyadh yesterday.

“During the meeting, we touched on various aspects of Malaysia-Saudi Arabia relations that need to be expanded, particularly in the areas of trade and investment, including cooperation in new fields such as artificial intelligence (AI), the green economy, clean energy, and petrochemicals.

“We also exchanged views on regional and international situations of mutual interest,” Anwar shared in a Facebook post.

According to the Prime Minister, he is optimistic that the close relationship between Malaysia and Saudi Arabia will contribute to the prosperity of the Malaysian people as a whole.

During the meeting, Anwar also expressed appreciation for the leadership of the Saudi Arabian government regarding the organisation of the Extraordinary Arab and Islamic Summit, including continuous efforts to support oppressed Muslim communities.

“I also took the opportunity to invite the Crown Prince and Prime Minister of Saudi Arabia to attend the Asean-GCC (Gulf Cooperation Council) Summit in Kuala Lumpur,” he said.

Anwar arrived in Riyadh yesterday to attend the Extraordinary Arab and Islamic Summit.

The Prime Minister’s presence at the summit aims to bring the voice and mandate of the Malaysian people regarding the ongoing atrocities and humanitarian issues related to the actions of the Israeli Zionist regime in Palestine and Lebanon.

Anwar is scheduled to return to Cairo today to continue his four-day official visit to Egypt, which began on Saturday. 

Source: Bernama

PM Anwar: Malaysia to host inaugural coordination meeting with Saudi Arabia, with focus on trade, AI and clean energy

The Sarawak state government has approved RM31.8 billion in foreign direct investments (FDI) for high technology industries such as the electrical and electronics, chemicals and green metal sectors from 2019 to 2023.

State Deputy International Trade, Industry and. Investment Minister Datuk Malcolm Mussen Lamoh said 10 investment projects totalling RM9.3 billion had been implemented.

“The high technology industry projects implemented totalled RM9.3 billion, comprising five electrical and electronics projects, three chemical projects and two green metal projects.

“The state government is also working with the federal government to develop Sarawak as aerospace and semiconductor hubs,” he told the Sarawak State Assembly in today’s question-and-answer session.

Mussen was responding to a question from Razaili Gapor (GPS-Beting Maro) on the status of the high-technology industry FDI received by Sarawak.

Mussen said that the state government is developing the Sarawak Investment Policy to shape the strategy and action plan to improve the state’s attraction as an investment destination of choice and support the high-technology industry.

“The state government is also encouraging strategic cooperation with technical institutions, research centres, higher education institutions and specialised industries such as semiconductors and aerospace to spur innovation and technology development,” he added.

Source: Bernama

Sarawak approved FDI worth RM31.8 bln for high-technology industry from 2019-2023

Malaysia’s welcoming business environment with supportive policies and favourable climate for foreign businesses are among the key factors drawing Chinese companies to establish operations in the country, according to the China Enterprises Chamber of Commerce in Malaysia (CECCM).

CECCM president Ni Qingjiu highlighted that as the two nations celebrate 50 years of diplomatic ties this year, the organisation has observed more opportunities for its member companies to expand in Malaysia.

“This strong partnership has led to a deeper collaboration in key industries like construction, technology and sustainable energy.

“Looking ahead, I see some promising areas where Chinese and Malaysian businesses can collaborate, especially around new technologies and sustainability,” he told Bernama in a recent exclusive interview in conjunction with the upcoming Malaysia-China Summit (MCS) 2024.

The event will be held on Dec 17-19, 2024 at the Malaysia International Trade and Exhibition Centre.

Ni said the CECCM plays an important role in guiding its 348 member companies through local regulations and helping them connect with Malaysian industries.

“CECCM is actively engaging with local authorities to find solutions, and this kind of support makes it easier for them to operate smoothly and build trust in the local business community,” he noted.

Malaysia-China notable partnerships

Ni cited several significant partnerships between Malaysian and Chinese firms, including the collaboration between China’s Geely and Malaysia’s Proton which brought in fresh investments and technology that helped the national carmaker to re-enter the regional market with new models.

“This partnership was mutually beneficial – a win-win situation as Geely gained a foothold in the Asean market while Proton gained advanced automotive technology,” he said.

Other notable cooperation between Malaysian and Chinese companies includes the development of the East Coast Rail Link (ECRL), a mega project under the Belt and Road Initiative involving the China Communications Construction Company (CCCC) and Malaysia Rail Link Sdn Bhd (MRL).

“The project has brought significant investments to Malaysia and created many local jobs, with Malaysian companies contributing to construction and services,” Ni said.

He added that there will be more opportunities for enhanced cooperation for companies in both nations, especially in areas such as the Electric Vehicle (EV) and relevant infrastructure, green technology and renewable energy, advanced manufacturing as well as digital and artificial intelligence-driven technologies.

Malaysia-China Summit 2024 promotes enhanced collaboration

According to Ni, the MCS 2024 is a platform that will offer expanded opportunities for Malaysia and China to strengthen economic, trade, investment as well as cultural ties.

“The summit will serve as a dynamic platform for businesses from both countries to collaborate, explore new trade opportunities, and embrace innovation,” he said.

He added that the MCS 2024 provides a valuable opportunity for business leaders to connect, form partnerships and support the economic growth of both nations, he said.

Ni will be one of the speakers at the MCS 2024 Leadership Conference panel session, which will focus on significant development projects in Malaysia that involve companies from China.

These projects are acting as catalysts for growth in both countries.

“As a strategic partner for MCS 2024, CECCM member companies will be participating in key panel sessions that focus on areas like transformation, investment and green technology.

“Overall, we aim to support Malaysia’s aspirations for sustainable and digital development, while also showcasing the positive contributions that Chinese enterprises are making in the country,” he added

The MCS 2024 is organised by Qube Integrated Malaysia Sdn Bhd in association with the Malaysia External Trade Development Corporation (MATRADE).

Themed “Prosperity Beyond 50”, the summit reflects a strategic initiative to ensure continuous economic growth, societal advancement, and overall well-being, as well as sustained cooperation and synergy between Malaysia and China.

Around 500 exhibitors from Malaysia, China and ASEAN countries are expected to participate in the summit, attracting 10,000 trade visitors and delegates, in addition to a projected RM2 billion worth of potential trade and investments.

Source: Bernama

CECCM: Supportive policies, favourable investment climate attracting Chinese companies to Malaysia

The Madani government’s clear economic policies, supported by encouraging indicators, can attract new investors to drive the country’s economy on the global stage, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said Malaysia was also recognised as a main hub in the semiconductor and green technology sectors in Southeast Asia, thereby positioning the country to play a significant role internationally.

There were several opportunities discussed in a roundtable session last night, he said, which was attended by around 60 industry and business leaders from Egypt, together with the Malaysian business delegation.

They included discussions on palm oil, the automotive industry, pharmaceuticals, medical products, semiconductors, digital technology and renewable energy.

“Among other things, we discussed the potential for investment in several new areas that can be explored through business and trade partnerships with companies in our country, which will further boost the national economy,” he said after attending the session.

Present were Egypt’s Investment and International Trade Minister Hassan El Khatib; Foreign Minister Datuk Seri Mohamad Hasan; and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

While speaking at the session, Anwar said one of Malaysia’s focuses when taking over the Asean chairmanship next year would be to further enhance economic and trade activities among member states.

He said Malaysia, as one of the key players and major producers in the green energy sector, would leverage its strength to boost intra-Asean economic and trade activities.

“As Asean chair, another focus will be efforts to accelerate the expansion of digitalisation among its member countries,” he added.

Source: NST

Madani govt’s clear policies will attract investors, says Anwar

Malaysia and Egypt have significant opportunities to help each other access their respective markets, said Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Aziz.

He said Malaysia serves as a gateway to the dynamic ASEAN economy, and Egypt as an entry point to the Middle Eastern and African markets.

Tengku Zafrul highlighted these opportunities following a meeting with senior management from over 60 leading Egyptian companies and 20 Malaysian companies on Sunday.

He noted that Prime Minister Datuk Seri Anwar Ibrahim emphasised the substantial opportunities not only in the Malaysian market but also in the expanding ASEAN market.

“With Malaysia set to assume the ASEAN chairmanship in 2025, Egypt has the chance to enhance its engagement with the ASEAN region through close collaboration with Malaysia,” he said in a post on X today.

Tengku Zafrul pointed out that sectors such as palm oil, pharmaceuticals, medical devices, energy, food security, infrastructure, and technology have been identified as strategic areas for Egyptian companies to explore.

He also said that through Malaysia’s network of 16 Free Trade Agreements (FTAs), including with ASEAN, the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Egyptian investors have the opportunity to enjoy wider access and attractive incentives to international markets beyond the regional borders, including countries like Japan, Australia, Canada, and Latin America.

“With strong support from MITI and Malaysia’s investor-friendly ecosystem, Egypt is now in an excellent position to leverage this platform to strengthen its presence in this fast-growing region,” said Tengku Zafrul.

He further emphasised that the Malaysia-Egypt partnership holds great potential for exploring new opportunities within ASEAN and expanding more strategic economic engagement.

Tengku Zafrul is currently in Egypt as part of the official four-day visit by Prime Minister Anwar Ibrahim at the invitation of President Abdel Fattah El-Sisi.

Egypt is Malaysia’s fifth-largest trading partner in Africa, with trade value reaching RM3.35 billion in 2023.

Source: Bernama

Malaysia, Egypt have opportunities to access markets in ASEAN, the Middle East, and Africa – Tengku Zafrul

Malaysia is receiving greater foreign interest and investments due to its stability and positive policy reforms, says Citigroup global co-head of corporate banking Jason Rekate.

“There is an influx of investments in high growth sectors such as technology, renewable energy, data centres and semiconductors, with companies from the United States being the largest investors.

“There is also heightened interest from European and Asian countries. We expect a pickup in more strategic merger and acquisition (M&A) activity,” he said in an interview.

US-based Citigroup, which Malaysian corporate banking business is one of the key markets for its Asian franchise, is capitalising on the rapid foreign investment inflows into the country to carve a stronger foothold in the corporate banking arena.

Elaborating on foreign direct investments (FDIs), Rekate said they reached RM85.4bil in the first half of 2024 as many of the corporates used Citigroup’s network when they enter the country or increase their existing investments.

“We have also seen an uptick in investments made in the semiconductor ecosystem, data centres, shared services centres and global billing centres.

“They will continue to increase and remain a focus area for us.

“With the China plus one strategy playing out, where we also see Chinese companies setting up manufacturing bases in new locations to support their Asian and international businesses, Citi Malaysia is well placed to capture the business flows as we support more companies entering the country.”

As Malaysia drives its own environmental, social and governance agenda in technological and green financing initiatives, it will open up new opportunities in green loans and sustainability-linked financing, according to Rekate.

Companies are looking at making incremental investments for manufacturing in other countries to diversify their business under the China plus one strategy.

On the focus areas in corporate banking, Rekate said: “We are deepening client engagement and growing our wallet share with our existing clients.

“Citi continues to work closely with foreign multinational companies who are clients of ours in other parts of the world, as they enter or expand their business presence in Malaysia.

“We will focus on key business corridors where we see maximum opportunity for growth and investment.

“For instance, our Asia-to-Asia corridor strategy has been a huge growth area and will continue to be a focus going forward.”

With the government’s emphasis on attracting FDIs in high-growth sectors, the bank is optimistic that the electrical and electronics ecosystem will grow at a steady pace driven by demand for consumer electronics, automotive and artificial intelligence.

This is a sector that it will focus on in Malaysia, and other parts of the world, as well as the entire supply chain.

The bank also expects opportunities for M&A and capital raising in the healthcare and data centre space as more companies look at Malaysia as a suitable option.

Looking ahead, Rekate said Citigroup saw immense growth opportunities for the country’s economy and multinationals planning to operating here.

The banking group is maintaining its gross domestic product (GDP) growth forecast of 5.2%, implying that the fourth quarter GDP growth is picking up to 5.5% for this year.

Based on official estimates, the economy is projected to grow between 4.5% and 5.5% in 2025, driven by strong domestic demand and strategic investments in critical sectors including technology, manufacturing and renewable energy.

The GDP is projected to be stronger at between 4.8% and 5.3% this year compared with between 4% and 5% previously.

UOB Malaysia acquired Citigroup’s consumer banking business in Malaysia in 2022, resulting in Citigroup’s retail banking and consumer credit card business being transferred to UOB Malaysia.

In terms of the contribution of corporate banking to Citigroup Malaysia’s overall business, Rekate said it formed the bulk of the bank’s business in the country.

“Client relationships are managed by our team of experienced bankers within the corporate banking team.

“They work with our product partners in services and markets who offer our corporate clients a range of sophisticated and innovative services tailored for their business needs, including payments solutions, cash and liquidity management, trade finance, custody and trustee services as well as markets solutions like hedging and foreign exchange.

“This is our annuity business which contributes a steady fee income.

“Then there is the episodic activity where we work with our investment banking partners to deliver capital markets financing and M&A advisory.

“As activity levels in Malaysia increase, and more companies require the services we provide, we expect our local franchise to benefit and grow as our clients grow,” he added.

Source: The Star

Uptick in FDI flows

An increase in investment inflows, improved tax collection relative to Gross Domestic Product (GDP), and a narrower fiscal deficit are positive catalysts expected to drive Malaysia’s economy to grow between 5.0 per cent and 5.5 per cent in 2024 and 2025.

Malaysian Rating Corporation Bhd (MARC) chief economist Dr Ray Choy noted that total approved investments have averaged over RM300 billion – a significant increase compared to the period from 2015 to 2019 when this figure stood slightly above RM200 billion. “This represents a substantial rise in investments over time, reflected in the improvement in GDP growth and an increase in gross fixed capital formation, which indicates additional capacity building in the Malaysian economy,” he said during the virtual MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates event.

Choy further highlighted that Malaysia’s cyclical growth prospects remain strong, bolstered by a relatively elevated manufacturing Purchasing Managers’ Index (PMI) and improving business confidence.

“Malaysia’s PMI has improved. It’s not just about whether PMI is below or above 50, but about the cyclical improvements we’ve observed since the third quarter of 2023.

“This improvement is mirrored across business confidence in services, wholesale and retail trade, as well as in construction and industry,” he said.

In October 2024, the seasonally adjusted S&P Global Malaysia Manufacturing PMI remained unchanged at 49.5, with new orders rising for the first time since June 2024.

S&P Global previously reported that, while the index slightly trailed the neutral 50.0 threshold, it indicated a slight softening in business conditions over the month.

Choy added that global semiconductor trends have shown improvement, benefiting Malaysia as well.

On the fiscal deficit target, Choy stated that the fiscal deficit-to-GDP ratio has shown consistent improvement, with government expenditure as a share of GDP expected to decline due to reduced subsidies and the careful management of development expenditure.

“Malaysia is increasingly utilising public-private partnerships to drive development, effectively managing development expenditure even with a slightly reduced allocation.”

Commenting on the ringgit’s performance, he noted that the currency has performed well year-to-date, and Malaysia stands out for its GDP growth trajectory, which is slightly higher than pre-pandemic levels – an encouraging trend compared to other economies.

Source: Borneo Post

Investment inflows, strong business confidence to support Malaysia’s GDP growth for 2024, 2025

Malaysia and Egypt have agreed to work towards elevating bilateral relations to the level of strategic partnership in the near future, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said both countries are also committed to strengthening bilateral relations in various areas for mutual interest and benefit.

“To achieve this, Malaysia will host the next Joint Commission Meeting and Bilateral Consultation in 2025,“ he said during a joint press conference with Egypt’s President Abdel Fattah El-Sisi after a bilateral meeting between the two leaders at the Al-Ittihadiya Palace here today.

Earlier, Anwar paid a courtesy call on El-Sisi at the palace in conjunction with his four-day official visit to Egypt. The two leaders held a four-eye meeting before the bilateral meeting.

According to Anwar, he and El-Sisi also agreed to expand cooperation in trade and investment, higher education, cultural affairs, defence and security, agro-commodities, and tourism.

He said both countries also will leverage each other’s strengths and explore new potentials such as digital economy, renewable energy infrastructure development, transportation and maritime domain, as well as manufacturing and semiconductor sectors.

“We (Malaysia) are quite fortunate because Malaysia has emerged to be one of the important semiconductor hubs in the region, and we should be able to collaborate in this field.

“As the Chair of ASEAN in 2025, Malaysia expressed its readiness to work closely with Egypt to promote ASEAN-Egypt relations.

“Malaysia also encouraged Egypt to advance its engagement with ASEAN, through its important role and being the founding member of the African Union,” he said.

Anwar also expressed hope to work closely with Egypt and other BRICS members towards its full membership in BRICS and to advance the Global South Agenda after Malaysia was endorsed by BRICS Leaders of the Modalities of BRICS Partner Country Category at the 16th BRICS Summit in Kazan, Russia on Oct 23, 2024.

He said El-Sisi’s support is very important and needed by Malaysia in its application to be a full member of BRICS.

According to Anwar, Egypt has a great tradition of being one of the most profound voices for the global South and is always seen to be one of the leading voices of independence and neutrality.

“And this is consistent with the ASEAN position we call centrality. We engage with all countries, are friends with all countries, but we maintain our independence and we collaborate with all countries, particularly in terms of trade investments,” he added.

Source: Bernama

Malaysia, Egypt to work towards elevating bilateral relations to strategic partnership level

Johor’s economy is expanding into high-growth sectors, including food technology, agritech and renewable energy, showcasing the state’s adaptability to global trends.

State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said these areas reflect Johor’s responsiveness and readiness to embrace change.

“In food tech, we’re exploring sustainable agriculture solutions for domestic and international markets, while agritech enables efficient, technology-driven agricultural production.

“Clean energy is another sector we’re keen to expand, with projects that contribute to a sustainable economic future. We’re also actively seeking partners who can support and accelerate these initiatives, making Johor a leader in responsible growth and innovation,” he said in a Facebook post.

Lee added that Johor’s growth is anchored by partnerships with industry leaders committed to sustainable, high-value development.

“One recent example is our RM500 million collaboration with Fuji Oil Asia Pte Ltd through Johor Plantations Group, a fully owned subsidiary of Johor Corporation.

“Furthermore, our recent discussions with over 80 South Korean companies reflect Johor’s global appeal and our openness to international collaboration,” he said.

He also pointed to an upcoming agreement with Singapore on the Johor-Singapore Special Economic Zone (JS-SEZ), set to be signed on Dec 8 or 9 this year, as a key part of Johor’s broader economic strategy.

“This SEZ is more than just an economic zone; it is a model of economic integration within Asean, designed to facilitate cross-border investments, streamline regulations, and connect regional markets.

“Asean, with a population currently of 700 million, is projected to become the fourth-largest market in the world by 2030, up from fifth today. Our combined GDP is about US$3.8 trillion (US$1 = RM4.38), with intra-regional trade of about US$3.5 trillion,” he added.

Source: Bernama

Johor targets high-growth sectors to drive economic expansion