Companies have been moving factories from China to South-east Asia, anticipating Donald Trump would slap high tariffs on Beijing if he regained the White House, a move set to accelerate with his election win, industrial park developers in the region say.

Trump, who won a resounding victory on Tuesday, has threatened 60 per cent tariffs on goods coming into the US from China, much higher than the levies of 7.5 per cent to 25 per cent he imposed in his first term, a major risk for the world’s second-largest economy.

South-east Asia — with auto and electronics factories from Thailand to Vietnam and Malaysia — will likely benefit at China’s expense, said two executives, two business groups, a lawyer and an analyst in the region.

Developers of industrial parks are adding Chinese speakers and preparing land tracts for factories, a sign of how Trump, who takes office in January, could reshuffle global supply chains.

As Trump geared up his campaign to retake the presidency earlier this year, calls from Chinese customers flooded WHA Group, one of Thailand’s largest industrial estate developers, said CEO Jareeporn Jarukornsakul.

“There was (already) a relocation to South-east Asia, but this round is going to be more intense,” she said, referring to Trump’s 2017-2021 first term.

WHA is expanding its sales force and adding Chinese speakers to teams overseeing maintenance and administration of industrial parks spanning more than 12,000 hectares (30,000 acres) in Thailand and Vietnam, Jareeporn said.

Of the 90 factories that have opened this year in industrial parks run across South-east Asia by Thailand’s Amata Corp, some two-thirds have been companies relocating facilities from China, said Vikrom Kromadit, the developer’s founder and chairman.

Trump ‘needs some friends’

Trump will be a “big punch” to China, potentially doubling the number of firms looking to move from there into Amata’s 150 square km of industrial estates in four South-east Asian countries, Vikrom said.

Construction begins this month on an Amata industrial park in Laos, where China has built a high-speed rail line connecting Kunming in southwestern China to the Laotian capital Vientiane, he said.

Thailand, a regional automobile manufacturing hub, has drawn over US$1.4 billion (RM6.14 billion) in investment from Chinese automakers into its fast-expanding electric vehicle industry.

“We want a lot of investment from China so we can sell to America,” said Thai Commerce Minister Pichai Naripthaphan.

“I believe this will happen,” told reporters yesterday. “The Americans love us, the Chinese love us — we don’t have to choose sides.”

Malaysia, hoping to draw over US$100 billion in new investments to its semiconductor sector, could benefit from a realignment of supply chains, said leaders of two business groups.

“This shift could provide Malaysia with new opportunities to capture a larger share of exports to the United States and other key markets,” said Soh Thian Lai, president of the Federation of Malaysian Manufacturers.

But risks persist, particularly with some indications that Trump may consider tariffs on imports from countries across the region, said Leif Schneider, head of international law firm Luther in Vietnam.

Vietnam, a major exporter to the US with US$90 billion bilateral trade surplus between January and September, is bracing for volatility under Trump.

“Trump will have to choose — you can be anti-China, but you’ll need to have some friends in South-east Asia,” said WHA’s Jareeporn. “He is a negotiator, so we will negotiate.”

Source: Reuters

Malaysia poised to gain as companies shift production from China amid Trump’s tariff threat

Donald Trump’s re-election as the United States (US) President is expected to accelerate the China Plus One strategy, benefitting Malaysia through higher investments and enhanced export potential, particularly in sectors such as electronics, machinery, and palm oil.

Making this prediction, CIMB Securities senior economist Vincent Loo said Trump’s return to the White House solidifies a trajectory of heightened tariffs and protectionist policies, including a proposed 10 per cent tariff on all imports and a specific 60 per cent tariff on Chinese goods.

“With escalating US-China trade tensions, Malaysia could see increased export demand from US companies looking to source products outside China, creating export growth opportunities in high-value sectors,” he said in a research note today.

Loo said foreign direct investment (FDI) in Malaysia is expected to rise as companies seek stable manufacturing bases in the ASEAN region, with the country emerging as a competitive destination owing to its infrastructure and relatively lower production costs.

“However, renewed trade uncertainty may lead to risk-off sentiment in financial markets, prompting investors to seek safe-haven assets, supporting a stronger US dollar and accentuating capital outflows from emerging markets, including Malaysia,” he added.

He noted that increased tariffs on Chinese goods may prompt US companies to shift sourcing from China to Malaysia, increasing demand for Malaysian exports of semiconductors and electronic components.

However, if trade tensions escalate, overall demand might decline, curtailing exports to both the US and China.

Similar to electrical and electronics (E&E) exports, Loo said Malaysia’s machinery and appliance exports stand to gain as the US seeks alternatives to Chinese products.

“However, heightened tariffs and trade barriers could raise costs and reduce global trade demand, impacting Malaysia’s trade volume,” he added.

Meanwhile, Trump’s “America First” energy policy, with an emphasis on boosting US production, could lower global energy prices, diminishing the value of Malaysia’s mineral fuel exports, said Loo.

CIMB Securities maintained its forecast of Malaysia’s gross domestic product (GDP) at 5.2 per cent for 2024 and 5.0 per cent for 2025 although its export-import outlook may face upside risks owing to increased volatility of trade flows and fluctuations in foreign exchange levels.

“We continue to expect an external demand recovery driven by the global tech upcycle, as well as strong domestic spending supported by robust investments and resilient consumer spending,” said Loo.

The ringgit is anticipated to experience near-term volatility, but this would ultimately hinge on the US

Federal Reserve’s policy decisions, he said.

Meanwhile, Hong Leong Investment Bank (HLIB) said the proliferation of the China Plus One strategy would benefit Malaysia’s electronic manufacturing services sector as brand owners shift or diversify their manufacturing from China, while increased FDI to Malaysia would benefit sectors such as construction, industrial property and real estate investment trust.

It also said more economic fluidity and market volatility are expected under a Trump presidency given his rather confrontational “shoot from the hip” style.

“This isn’t entirely a bad thing, noting that Malaysia did benefit from the ongoing US-China trade war. However, the key risk this time around is if he drags the entire world into it as well with his proposed blanket 10-20 per cent tariff – the US was Malaysia’s third largest export destination in 2023 at 11.3 per cent,” it added.

For now, the investment bank is maintaining its end-2024 FTSE Bursa Malaysia KLCI target at 1,700.

“Our investment themes on tourism recovery, energy transition, Johor’s developmental reinvigoration and disposable income boosting measures should be fairly insulated the US election outcome – while trade war beneficiaries could see revived interest,” said HLIB. 

Source: Bernama

Trump presidency to enhance Malaysia’s export potential, FDI inflows

An increase in investment inflows, improved tax collection relative to the 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 Ray Choy said 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 today.

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 is not just about whether PMI is below or above 50, but about the cyclical improvements we have 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,” Choy said.

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

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.

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

On the fiscal deficit target, Choy said 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,” he said.

Commenting on the ringgit’s performance, Choy said 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.

“This is drawing global investors to Malaysia-denominated assets,” he said.

Meanwhile, the MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates is the latest instalment of its MARC360 series, where economic experts, policymakers, and industry stakeholders explored Budget 2025 and its expected impacts on Malaysia’s economic landscape.

The session featured presentations and insights from prominent voices in economic and fiscal policies, including the Finance Ministry’s Fiscal and Economics Division’s deputy undersecretary (economic research) Nirwan Noh, Moody’s Ratings’s senior sovereign risk analyst Christian de Guzman, and the Center for Market Education’s chief executive officer Carmelo Ferlito.

Source: Bernama

Malaysia’s GDP growth for 2024, 2025 boosted by investment inflows, strong business confidence

Prime Minister Datuk Seri Anwar Ibrahim reaffirmed Malaysia’s commitment to strengthening collaboration with China, emphasising both trade and broader global objectives.

During his courtesy call on President Xi Jinping at the Great Hall of People, Anwar expressed his gratitude for China’s continued support and emphasised the importance of shared values and vision between the two nations.

“I have followed you closely, Mr. President, especially your brilliant speech at the BRICS summit. Your support for our partnership with BRICS has been invaluable. More importantly, your vision for global security and development resonates deeply with us,“ said Anwar, referring to China’s President.

He further noted that China’s emphasis on “values and civilisation” sets it apart from many other world leaders, underscoring China’s passion for not only its people but also for the welfare of humanity.

“This is why we view China not just as a leader of the East but as a voice for the Global South, one that champions the interests of the developing world.”

The Prime Minister also highlighted the deepening ties between Malaysia and China, focusing on areas such as trade, investment, digital technology, energy, and training.

He said Malaysia particularly appreciates China’s willingness to embrace the nation as a partner in these key sectors.

“I spoke at Peking University earlier today on how I view China’s vision for a shared future, something that many developed countries have yet to embrace,“ he added.

“Your vision of a global community where China’s success is understood and shared with the international community is a powerful example of leadership.”

Looking ahead, Prime Minister Anwar also discussed Malaysia’s upcoming ASEAN chairmanship and the region’s growing ties with the Gulf Cooperation Council (GCC) and China.

He highlighted a notable achievement in ASEAN’s diplomatic efforts: the ASEAN-GCC-China partnership, which he believes will play a pivotal role in shaping the future of global trade and cooperation.

Despite challenges, the Prime Minister assured that Malaysia would continue to act in its national interest, citing the country’s independent decision-making process on issues such as 5G technology.

“We have decided that Chinese 5G technology will be a key part of Malaysia’s digital infrastructure, a choice made to benefit our country,“ he said.

The Prime Minister concluded his remarks by expressing confidence in the success of ASEAN’s future initiatives, with China’s involvement being essential to ensuring the region’s prosperity.

“We look forward to your continued support, Mr. President, as your presence is critical to the success of ASEAN,“ he said.

This statement reflects Malaysia’s increasingly strategic position on the global stage, positioning itself as a key player in both regional and international affairs.

Anwar arrived in Beijing on Wednesday, the last stop of his working visit to China from Nov 4 to 7. He arrived in Shanghai on Monday to attend the 7th China International Import Expo (7th CIIE).

Source: Bernama

PM Anwar: Malaysia committed to strengthening collaboration with China beyond trade

From January to September 2024, Malaysia’s halal product exports increased to RM45.04 billion compared to RM39.36 billion in the same period in 2023.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said Malaysia’s ability to dominate the halal market is still constrained by the low issuance of halal certificates by the Malaysian Islamic Development Department (JAKIM).

“Early analysis carried out under Halal Industry Master Plan 2030 (HIMP 2030) estimated the global halal market to be worth RM5 trillion,” he said when winding up the debate on the Supply (Budget) Bill 2025 at the policy stage for the Ministry of Investment, Trade and Industry (MITI) in the Dewan Rakyat today.

Liew was clarifying the issue of the Halal Development Corporation Bhd (HDC) and Malaysia External Trade Development Corporation(MATRADE) merger raised by several members of Parliament from the government bloc.

He said the merger between HDC and MATRADE was justified as part of the effort to increase the export value of halal products and to seek new markets, as MARTRADE has a network of ready markets that local halal industry players can capitalise on.

“MITI believes the merger will increase the HDC-MATRADE synergy and optimise ready resources, especially to promote the halal industry to become more effective and competitive.

“At the same time, efforts to develop a local halal champion to penetrate the export market will be focused on serious industry players,” he added.

Source: Bernama

Malaysia records RM45.04b in halal product exports from January to September 2024 – MITI

Malaysia stands ready for a new era of investment, supported by a clear vision for economic transformation and a commitment to attracting investments aligned with the nation’s high-growth and sustainable future, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the government is committed to making Malaysia a top-tier investment destination, attracting high-value investments, as articulated in the New Investment Aspiration. 

“As announced in the 2025 Budget, the MADANI Economy framework will continue its focus on reinvigorating the economy, driving reforms, and prospering the nation,” he said in his speech at the InvestMalaysia Portal launch today.

Among the growing investment landscape in Malaysia are the National Semiconductor Strategy (NSS), and the National Energy Transition Roadmap (NETR), as well as the New Investment Incentive Framework which is expected to be announced in the first quarter of 2025.

The framework aims to open new avenues for investors, including tax incentives and strategic investment funds.

Additionally, government-linked investment companies have collectively pledged to channel RM120 billion over the next five years in domestic direct investments towards high-growth and high-value industries, he said. 

“Collectively, these reforms were built on the back of our solid fundamentals, strengthening our resilience and maximising the growth potential of local supply chains – positioning Malaysia as an ideal, high-returning, and safe investment destination,” he said. 

Meanwhile, the government has launched the InvestMalaysia portal (www.investmalaysia.gov.my) to provide investors with essential information on investing in Malaysia. 

The portal aims to reinforce Malaysia’s standing as a competitive and appealing investment destination by showcasing opportunities in the country’s financial markets to both domestic and international investors. 

“Investors can obtain comprehensive information on Malaysia’s economic and investment policies, as well as gain real-time insights on not just the investment opportunities that Malaysia has to offer, but also the relevant steps to make the most of them. 

“The portal will also redirect investors to the right path and links to the relevant agencies’ websites based on their investments of choice. Ultimately, the goal is to empower investors to independently assess Malaysia’s economic prospects and explore investment opportunities the country can offer,” he said. 

He concluded that the InvestMalaysia Portal marks a significant advancement in bridging the gap between investment intention and action, simplifying access for investors, and making Malaysia’s investment landscape more navigable and rewarding. 

“Together, the Investor Relations Office and the InvestMalaysia portal would act as navigators for portfolio investors looking to participate in the Malaysian market,” he said.

Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said the platform is akin to an arbiter of Malaysia’s macroeconomic strength and investment potential.

“In this post-abundance world, often, it is not information that we lack but rather a mechanism to help us decide and evaluate our choices. This effort is imperative for Malaysia as we accelerate structural reforms to strengthen Malaysia’s long-term economic prospects,” he added.

Source: Bernama

Malaysia ready for new investment era with clear economic vision – MOF

Malaysia’s strategic position and appeal as an investment destination, supported by a skilled workforce and government policies, were among the topics discussed by Prime Minister Datuk Seri Anwar Ibrahim with potential Chinese investors today.

Anwar, who is on a working visit to China, began the third day of his trip in Shanghai with a dialogue session organised by Khazanah Nasional Bhd (Khazanah) this morning.

The session brought together two Chinese investors, including representatives from Chengwei Capital, a leading venture capital firm with unique expertise and resources in the global semiconductor industry.

He also met with representatives from NRL Capital, a science and engineering company founded by individuals pivotal in the successful development of high-tech industrial clusters across China.

During the meeting, potential collaborations in technology and innovation investments in Malaysia were explored with the investors.

The investors are expected to partner with Khazanah to develop next-generation Malaysian companies and enhance Malaysia’s role in global supply chains, especially within high-tech sectors.

At the same time, Anwar held a closed-door, one-to-one business meeting with several Chinese companies from the banking, energy and chemical sectors.

This includes Bank of China, SinoChem, SICC Co, SEMCORP and Zhejiang Jiahua Energy Chemical Industry Co.

The prime minister also participated in a roundtable session with 24 ‘captains’ of industry.

Anwar is scheduled to depart for Beijing at 4pm today to visit the Huawei Executive Briefing Centre before a courtesy call with President Xi Jinping tomorrow.

The prime minister’s working visit to China is at the invitation of his counterpart, Li Qiang, to attend the 7th China International Import Expo (7th CIIE) in Shanghai.

For 15 years since 2009, China has been Malaysia’s largest trading partner. 

In 2023, total trade with China was valued at RM450.84 billion (US$98.80 billion), contributing 17.1 percent to Malaysia’s global trade.

As of September this year, the total trade was recorded at RM355.15 billion (US$76.72 billion).

In the first half of 2024, a total of 15 manufacturing projects were implemented with investments totalling RM1.2 billion (US$252.5 million).

Source: NST

Anwar highlights Malaysia’s strategic role as investment hub with Chinese investors

Chinese investors and companies are showing greater interest in Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.

“This is a very positive development,” he told Malaysian media after a roundtable session with over 20 industry leaders here today.

The Prime Minister said there were discussions on national policies, including on regulations and investment.

“I see rising enthusiasm and interest (shown by investors and companies from China),” he said.

Asked about potential investments secured during his visit, Anwar said: “We will announce the figure tomorrow.”

He started the day by attending a dialogue with Chinese investors, organised by Khazanah Nasional Bhd.

“It has been exhausting as there have been back-to-back meetings since morning, but I think it is beneficial,” he said.

Separately, the Prime Minister’s Office (PMO) said Anwar engaged in several productive discussions with Chinese investors on the third day of his working visit to China.

The investors include Chengwei Capital, a prominent venture capital firm with proprietary global semiconductor expertise and resources; and NRL Capital, whose founders have played instrumental roles in the successful development of hi-tech industrial clusters in China.

The PMO said the discussions anchored on Malaysia’s centrality and its attractiveness as an investment destination given its talented workforce and supportive government policies.

It said Anwar also discussed potential collaborations with these investors with regard to investing in technology and innovation in Malaysia.

“These investors will look at collaborating with Khazanah Nasional in building next-generation Malaysian companies to further boost Malaysia’s prominence in global supply chains, particularly in high technology sectors.

“This will drive the Madani Economy vision of fostering innovation and making technology more accessible and inclusive to all,” the PMO said in a statement today.

Besides attending the dialogue and roundtable sessions, Anwar also met with several companies in one-to-one business meetings.

They comprised representatives from the Bank of China, SinoChem, SICC Co Ltd, Semcorp, and Zhejiang Jiahua Energy Chemical Industry Co Ltd.

He is set to depart for Beijing this afternoon.

He is accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, and Human Resources Minister Steven Sim Chee Keong.

Anwar’s working visit to China is at the invitation of Premier Li Qiang, to attend the 7th China International Import Expo (CIIE) in Shanghai.

CIIE is a trade fair organised by the China government that provides a platform for countries involved in the Belt and Road Initiative to promote and export goods and services to the country.

For 15 years since 2009, China has been Malaysia’s largest trading partner.

In 2023, total trade with China was valued at RM450.84 billion, contributing to 17.1 per cent of Malaysia’s global trade.

As of September, total trade stood at RM355.15 billion.

In the first half of 2024, 15 manufacturing projects were implemented with investments totalling RM1.2 billion.

This trip marks Anwar’s third visit to China as Prime Minister, after his maiden visit in March 2023 that was followed by another in September the same year.

However, this is his first visit to Shanghai.

His four-day working visit will end in Beijing tomorrow.

Source: Bernama

Anwar sees rising interest in Malaysia among China investors, firms

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has joined Prime Minister Datuk Seri Anwar Ibrahim in congratulating Donald Trump on his victory in the United States (US) presidential election.

Republican candidate Trump, 78, defeated Democrat Kamala Harris in the 2024 US presidential election held on Tuesday.

Tengku Zafrul in his posting on his ‘X’ platform today said that the US and Malaysia have an enduring economic as well as trade partnership.

“The US has consistently been one of Malaysia’s top trading partners and one of the largest investors in our country. Our people-to-people ties, spanning generations, extend across various areas like education, as well as family and friendships.

“I am keen — especially with Malaysia assuming the 2025 Chairmanship of ASEAN — to work with my counterparts in the new administration to strengthen and add mutual benefit to our relationship, whether on a bilateral or multilateral basis,” he said.

Source: Bernama

United States to remain top trading partner, largest investor in Malaysia – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim led a Malaysian delegation in one-on-one meetings with four leading companies in Shanghai before continuing his visit to Beijing today.

The Prime Minister, currently in China, said the sessions started with a meeting with a Bank of China delegation led by its chairman Ge Haijiao.

“Our discussion involves opportunities to strengthen Malaysia-China financial cooperation, including local currency trade settlements.

“This was followed by the petrochemical company Sinochem delegation, led by general manager Liu Chun, who expressed their intention to import chemicals for the manufacture of personal care products, cosmetics and the like, in line with Malaysia’s capabilities and strong network of manufacturers and suppliers, especially in the petrochemicals field,” he said in a post on X (formerly Twitter).

Anwar added that the next meeting was with SICC Co. Ltd, a leading semiconductor company that also expressed its intention to expand into Southeast Asia.

The delegation also met with SEMCORP, the world’s largest manufacturer of lithium-ion separator films, which wants to explore establishing a hub to meet the growing demand for electric vehicle components in the region.

“This series of discussions illustrates Malaysia’s growing attractiveness as a competitive investment destination, and the Madani Government wants to continue to attract quality investments, thereby creating more highly skilled jobs,” he said.

This is Anwar’s maiden visit to Shanghai and his third to China.

The Prime Minister made his maiden visit to the country in March 2023, followed by September the same year.

The four-day working visit will end in Beijing on November 7 and is at the invitation of his counterpart Li Qiang to attend the 7th China International Import Expo.

He was accompanied by Foreign Minister Datuk Seri Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

Meetings with companies in Shanghai an opportunity to attract quality investments — PM

Malaysia is set to launch a new investment incentive scheme by mid-2025, that aims to introduce stricter regulations for foreign investors to meet localisation requirements.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said the ministry is currently working with the Malaysian Investment Development Authority (Mida) and the Ministry of Finance (MOF) to propose the new scheme.

“This aligns with the National Investment Aspirations (NIA), as we will impose stricter rules to ensure that foreign direct investment benefits the local economy,” Liew told the Dewan Rakyat during an oral question-and-answer session on Wednesday.

Liew was responding to Bayan Baru Member of Parliament Sim Tze Tzin, who asked if the government would follow Indonesia’s approach of suspending sales of Apple’s iPhone 16 for allegedly failing to meet domestic content requirements.

In response, Liew stated that Malaysia might not adopt as stringent a measure as Indonesia, given Malaysia’s relatively smaller domestic market compared to the archipelagic state.

Indonesia’s population size exceeds 260 million, while Malaysia’s is just over 34 million.

“In drafting any policy, Malaysia needs to consider both the domestic and international markets,” Liew noted.

Nevertheless, Liew emphasised that under the current policy, Mida requires foreign firms receiving incentives from the authority to adhere to localisation programmes. These requirements include purchasing equipment locally or partnering with local contractors, as part of efforts to boost the domestic economy.

Source: The Edge Malaysia

Liew: Malaysia to introduce stricter localisation requirement for foreign investments

Malaysia should capitalise on the growth opportunities presented by BRICS while addressing the challenges ahead to enhance its competitiveness on the global stage, say industrialists.

Small and Medium Enterprises Association of Malaysia (Samenta) national president Datuk William Ng foresees a significant increase in trade missions, coupled with enhanced diplomatic and economic representation, following the country’s admission as a partner nation of BRICS.

He believes this will lead to greater overall trade and investment opportunities within the international bloc.

“Our inclusion as a partner country is an important first step in that direction. It offers Malaysian businesses greater opportunities in member countries that go beyond free trade agreements.

“It will also reinforce Malaysia’s standing as a non-aligned economy in an increasingly polarised world,” he said.

BRICS, originally comprising Brazil, Russia, India and China, was established in 2009 as a cooperation platform for emerging economies, with South Africa joining in 2010.

The grouping has since expanded to include Iran, Egypt, Ethiopia and the United Arab Emirates.

This year, Malaysia has been one of 13 nations officially added as a partner country to the bloc that collectively accounts for one-fifth of the global trade.

The other 12 are Indonesia, Thailand, Vietnam, Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkiye, Uganda and Uzbekistan.

However, none of these countries have achieved full membership yet.

Looking ahead, Ng called for efforts to reduce non-tariff barriers among BRICS member and partner economies to encourage a smoother flow of people and goods.

“One low-hanging fruit to achieve is to negotiate visa-free movement across the bloc, if not for all travellers, then at least for business purposes.

“With the expected greater business exchanges via trade missions and perhaps the ‘upgrading’ of diplomatic and economic representations, we hope to see more trade and investments across the bloc,” he said.

Federation of Malaysian Manufacturers Penang (FMM Penang) chairman Datuk Seri Lee Teong Li said while Malaysia’s participation in BRICS presents exciting new opportunities, it also brings a set of challenges that need to be carefully considered.

“The business community feels cautiously optimistic but recognises the potential benefits and preparations for competitive challenges.

“There would be access to new market and trade opportunities, as BRICS membership could open doors for Malaysian businesses to access new and diverse markets in major economies like Brazil, Russia, India, China and South Africa, which collectively have substantial demand for various goods and services,” he said.

Lee also noted that Malaysia can reduce reliance on traditional trade partners.

“We can expect an increase in foreign direct investment (FDI), with member countries looking to expand in South-East Asia, and this will benefit local industries through capital inflow, technology transfer and job creation.”

He added that if BRICS pursues a shared currency or alternative trade mechanisms, local companies might benefit from lower transaction costs and reduce dependence on volatile currency exchange rates to enhance trade stability.However, Lee said regulatory and cultural differences are aspects to be looked into.

“Entering BRICS markets requires navigating varied regulations, business practices and cultural differences.

“Businesses may need support in these areas to fully capitalise on BRICS opportunities,” he said.

BRICS represents about 40% of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion, or 26.2% of the world’s GDP, nearly matching the economic strength of the Group of Seven (G7).

Source: The Star

‘BRICS set to bring more opportunities and competition’

MALAYSIA and China are great friends committed to strengthening their partnership and advancing the region’s economic prosperity, said Prime Minister Datuk Seri Anwar Ibrahim.

During a bilateral meeting with Chinese Premier Li Qiang yesterday, Anwar expressed Malaysia’s deep appreciation for China’s support in various areas, including Malaysia’s participation in BRICS.

“I think things are going exceptionally well. We have expanded into all areas, including cooperation in the economy, education, technical and vocational education and training, military understanding and cooperation in protecting our borders.

“We are now two great friends. I look forward to when I assume the chairmanship of Asean. I hope we can work together to strengthen

Asean-China relations and help grow the Asean economy.”

Anwar thanked Li for visiting Malaysia in June to commemorate the 50th anniversary of diplomatic relations between the two countries.

He said since the visit, discussions on several issues and major investments had progressed at an accelerated pace.

“You spent so much time exchanging ideas with the Malaysian business community, the public and academics.

“For weeks, the media will be covering that you can become a threat to the Malaysian prime minister,” Anwar said in jest.

The bilateral meeting was held on the second day of Anwar’s working trip to China. During the 30-minute meeting, the leaders exchanged views on regional and international issues of mutual concern and interest.

Present at the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

During the meeting, several memoranda of understanding were exchanged, including one on cooperation between the Malaysian National News Agency and the China Media Group.

Li’s June visit to Malaysia marked a significant step forward in bilateral relations. It was his first visit to Malaysia since taking office in March last year.

Analysts said the visit would elevate the comprehensive strategic relationship between the two nations to new heights.

Earlier in his keynote address at the opening of the 7th China International Import Expo, Anwar said as the world’s fifth largest economy, Asean had the potential to be the driving force behind inclusive socio-economic growth that leads the way to an unprecedented era of sustainable and shared prosperity.

“As you have seen here in China, where it promotes good governance and combating and rooting out corruption, as well as implementing socio-economic and industrial reform agendas, we are also leaving no stone unturned.

“We continue to be inspired by Premier Li Qiang’s extraordinary success in battling poverty, which clearly signifies a major achievement in social re-engineering.”

Anwar said Malaysia aims to enhance regional cooperation and promote an inclusive role based on the regional framework as it assumes the Asean chairmanship next year.

He said Malaysia would embrace the forward-looking and shared future principles that China championed to organise the Asean Summit.

Source: NST

Malaysia, China ties a boon for region

Several industrial firms in China are eyeing investment opportunities in Labuan, particularly within the island’s financial and development sectors.

Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa emphasised the significance of these interests, underscoring Labuan’s potential as a viable economic hub in Asia.

Dr Zaliha said her recent visit to key Chinese cities – Hangzhou, Shanghai, and Shenzhen – was instrumental in building relationships and fostering investor interest.

“During my visit, we engaged with potential investors who are keen to explore business opportunities in Labuan, particularly in financial and development fields,” she told reporters after the Labuan Para SUKMA athlete incentives presentation here tonight.

Dr Zaliha also stressed the importance of sustained engagement with these interested investors to ensure that proposed ventures come to fruition.

“Follow-ups with these parties are crucial to converting these discussions into concrete business investments that will benefit the island,” she said.

In support of Labuan’s growth, Dr Zaliha said Prime Minister Anwar Ibrahim has designated the island as a priority area within the national agenda to address basic amenities and security improvements.

Dr Zaliha said the Finance Ministry (MoF) has committed to providing funds, either directly or through various ministries, to support Labuan’s socio-economic development.

She also provided updates on several task forces set up to advance Labuan’s tourism, transhipment capabilities and connecting Labuan to Sabah via a bridge.

“The tourism task force is not only focused on enhancing Labuan’s tourism offerings but also aims to improve accessibility for tourists and locals alike.

“The transhipment task force is actively progressing, and the bridge linking Labuan to Sabah’s mainland is advancing with the Works Ministry approving a RM500,000 allocation for an initial feasibility study.

“These task forces are fully operational, and several key discussions have already taken place,” Dr Zaliha said.

Source: Bernama

Chinese investors eye opportunities in Labuan – Zaliha Mustafa

The Forest City Special Financial Zone’s 15 per cent income tax rate and streamlined visa policies are expected to attract top-tier talent, particularly in high-demand sectors.

Iskandar Investment Bhd (IIB) chief executive officer, Datuk Idzham Mohd Hashim, said the incentives will not only transform Johor’s economic landscape but will also draw investors in sectors such as technology, finance, and services.

“The lower tax burden makes Johor a more attractive option for both local and international talent, especially when compared to other regional hubs,” he told the New Straits Times yesterday, adding that the income tax rate is below the maximum rates in Singapore, Thailand, Indonesia, and Vietnam.

The Forest City Special Financial Zone (FC-SFZ) will ensure Johor gains an edge over other regional hubs, establishing the state as a prime destination for both local and international talent by reducing the tax burden and simplifying visa processes to attract skilled professionals.

Idzham said that the long-term visa options are designed to facilitate easier relocation, allowing talent to settle, work, and contribute to Johor’s economy. The policy is expected to streamline hiring for companies, enhancing the local workforce through foreign expertise and knowledge transfer.

For investors, Johor’s competitive tax rate offers significant cost-saving benefits, positioning areas like Medini as ideal locations for regional headquarters, particularly in sectors such as financial services, digital technology, and research and development.

“Johor is developing a fertile environment for both start-ups and multinationals to scale and innovate,” Idzham added, emphasising FC-SFZ’s role in attracting businesses with cutting-edge infrastructure and an expanding talent pool.

“Located close to Singapore, Johor’s strategic position, alongside the Johor-Singapore Special Economic Zone, provides businesses with a compelling alternative for regional expansion. These initiatives align with IIB’s vision to position Johor as a key player in the Asean economic landscape, cementing its reputation as a competitive investment destination within Malaysia and beyond,” he said.

Meanwhile, Johor Investment, Trade, Consumer Affairs, and Human Resources Committee chairman, Lee Ting Han, said that FC-SFZ is set to become a magnet for global talent, attracting professionals from high-tech and innovative sectors. This will help to transform Forest City into a hub for growth, creativity, and job opportunities.

The reduced tax rate is a core component of the government’s strategy to attract international expertise and encourage knowledge-based industries to establish operations within the SFZ.

Skilled workers in sectors such as global business services, financial technology, and information technology are expected to benefit the most, giving Johor an edge in driving innovation and boosting economic development.

This policy is designed to meet the rising demand for talent as more multinational corporations (MNCs) and start-ups look to the region for expansion.

In addition to the competitive tax rate, the introduction of multiple-entry visas is seen as a game-changer for foreign professionals. These visas will allow for easier and more flexible movement for those working in or investing in the SFZ, significantly reducing administrative hurdles.

The streamlined process will not only make it more attractive for talent to relocate but will also enable business owners and investors to engage in cross-border activities with greater efficiency.

Source: NST

New incentives in Forest City set to draw top talent and investors

Economic ties between Sweden and Malaysia have flourished over the years, with Swedish foreign direct investment (FDI) in Malaysia soaring to US$1.43 billion (US$1=RM4.37) to date from US$113 million in 2014.

Sweden’s Ambassador to Malaysia, Niklas Wiberg, is optimistic that this remarkable growth would only get better, as Malaysia’s importance as one of Sweden’s key partners in Southeast Asia was further pronounced particularly after the rebound in economic activity post-pandemic.

“Sweden’s economic ties in Malaysia are very diversified through robust trade, investment and collaboration in various sectors,” he told Bernama in an exclusive interview since his posting about two months ago.

Wiberg presented his credentials to His Majesty Sultan Ibrahim, King of Malaysia, as the Ambassador of Sweden to Malaysia on Oct 21, 2024.

His previous posting was in Rome, Italy, following which he took over his posting here on Aug 15, 2024, succeeding Dr. Joachim Bergström.

Wiberg said the trade relationship between the two nations showcased a healthy balance in 2023, with Swedish exports to Malaysia reaching about US$388 million while imports from Malaysia amounted to US$449 million.

“This trade (balance) reflects a diversified exchange, with Swedish exports to Malaysia largely consisting of machinery and mechanical appliances (29%); vehicle parts including railway parts (13%); equipment within vehicle sectors (12%); and pharmaceutical products (11%),” he said.

Swedish imports from Malaysia primarily included electrical machinery and equipment (19%); rubber and related products (14%); vegetable fats and oils (13%); as well as chemical products (13%).

“We have a robust economic exchange in industries such as manufacturing, technology, green energy, and telecommunications. After the pandemic, we have seen increased economic ties with cooperation in green technology, digital innovation and high-tech manufacturing,” he added.

Focus on the semiconductor sector

When asked about potential sectors for growth, Wiberg highlighted the semiconductor industry as a key area of growth for both countries, noting Sweden’s rising demand for Malaysian semiconductors and integrated circuits.

“I think the semiconductor area for Malaysia is perhaps an area that has been most visible where we see alternatives coming forward to the market we traditionally have had.

“There is also a great deal of competence and experience from Swedish companies within the semiconductor industry, and they are also looking at areas around Penang for further investments because this cluster has grown stronger in Malaysia,” he said.

“This is crucial for maintaining and developing Sweden’s own technology and manufacturing sectors in both Malaysia and Sweden, as well as for companies from Europe that are looking for alternatives,” he added.

The ambassador also noted that Malaysia is an appealing location for companies aiming to diversify and strengthen the resilience of their value chains or rather de-risking to diversify trade.

“We cannot rely on trade with one partner, but we have to seek several countries that have the same competence. It does not only apply to China; it applies to many countries around the world, as COVID-19 and the war in Ukraine have taught us that we must be reliable and therefore rely on several partners in order to safeguard the critical value chains,” he said.

Malaysia was able to sustain its supply of crucial semiconductor components and automotive chips to certain countries during the Covid-19 disruptions, compared to the manufacturing capacity of semiconductors in Europe.

Swedish investments and employment in Malaysia

Currently, the largest Swedish companies operating in Malaysia include IKEA, SIBS, Ericsson, Essity, Aptilo Networks, Mölnlycke, ABB, Sandvik, Volvo Trucks, Volvo Car, and Scania.

Wiberg noted that these companies collectively generate around 7,000 jobs in Malaysia, mainly in high-tech and capital-intensive sectors.

“These companies’ focus has shifted towards innovation and science, playing a vital role in Malaysia’s industrial processes,“ he said.

Future prospects and trade agreements

Wiberg expressed optimism about the future of bilateral trade relations, particularly with the impending resumption of negotiations on the stalled Free Trade Agreement (FTA) between the European Union (EU) and Malaysia.

“We believe that this is a crucial step that can lead to mutually beneficial negotiations on sustainability and other important issues,“ he said.

The renewed dialogue offers an opportunity to strengthen economic ties and support the transition towards greener technologies and digital innovation.

As such, Wiberg said Swedish companies are well-prepared to lead this transition, underlining the importance of regional trade agreements within a European framework.

On March 22, Prime Minister Datuk Seri Anwar Ibrahim, during his official visit to Germany, had said that it was about time for Malaysia and the EU to rekindle discussions on an FTA to further strengthen bilateral relations and regional integration.

Negotiations for the FTA began in October 2010, with eight rounds held until September 2012, but stalled following Malaysia’s reservations over palm oil, procurement policies, subsidies, and the EU’s sustainability clauses.

Based on EU data, bilateral trade with the EU totalled €44.7 billion (RM218.14 billion) in 2023, making it Malaysia’s fourth-largest trading partner after China, Singapore, and the United States.

Trade between both countries is dominated by industrial products, machinery and appliances.

Wiberg believes that future prospects for bilateral trade and investment are promising, as Malaysia and Sweden work toward enhancing their collaboration and reinforcing their positions in the global economy.

Source: Bernama

Sweden-Malaysia economic ties flourish, FDI soars and semiconductor sector emerges as key growth area

DYNAMIC economies worldwide are capturing the attention of western financial institutions, but a new research shows that few are creating as much excitement as Malaysia.

The South-east Asian nation, which is best known as a commodity exporter and manufacturing hub, is benefiting from companies’ determination to mitigate risks generated by ongoing trade tensions.

“Supply chain diversification is a really important global theme,” says Saif Malik, CEO, UK at Standard Chartered, who has lived and worked in Malaysia.

“Geopolitical risk has prompted many companies to re-evaluate which markets they invest in, and that is playing out in places such as Malaysia. The country’s vibrant multiculturalism is a strong advantage on the world stage.”

Research conducted by Standard Chartered in the first quarter of 2024 and based on a survey of 400 banks, investment managers and asset owners headquartered in Europe and the Americas, revealed that 25% of respondents have plans to invest or grow business in Malaysia in the next 12 months.

Out of all dynamic markets worldwide, only Mainland China and India scored more highly.

Money is already pouring into Malaysia.

In 2023, foreign investment was Rm329.5bil (Us$69.5bil), which was a record for the country and a 23% increase year on year.

Gross domestic product (GDP) growth forecasts of 4.3% in 2024 are bolstered by Malaysia’s “track record of fiscal prudence and a credible monetary policy framework”, according to the International Monetary Fund.

How Malaysia benefits from supply chain migration

“Malaysia is benefiting from supply chains migrating away from Taiwan and Southern China because it invested in creating an electronic supply chain base all the way back in the 1970s,” says Chris Clube, co-portfolio manager of the Global Emerging Markets Equity Fund at asset manager Federated Hermes.

“It has a long history of producing high-tech goods, so there is an ecosystem that already exists. Malaysia also benefits from being both Englishspeaking and Chinese-speaking.”

These attractions have led a number of manufacturing companies to establish themselves in

Malaysia for the first time or to expand their existing activities, and the semiconductor sector is a particular area of focus. Examples include US chip giants Micron and Intel, and European semiconductor companies ams

nd

OSRAM and Infineon.

Malaysia’s northern region of Penang, whose free trade zone and busy shipping port attracted Intel in 1972, continues to offer attractive tax incentives to overseas investors.

But southern Malaysia is also seeing increased investment, and the Malaysian semiconductor industry as a whole has shifted its value chain towards more advanced technology.

In 2023, Malaysia accounted for more US microchip imports than any other country in the world.

Manufacturing does appear to be an ongoing priority for investors.

In the Standard Chartered research, 53% of investors who are intending to invest in Malaysia say that manufacturing is one of the most attractive opportunities.

Green policies and political support are attracting investors

Investors are also looking at other sectors.

For example, 55% see opportunities to invest in the infrastructure sector as Malaysia’s economy expands rapidly.

And 42% see potential in renewable energy.

Malaysia has one of the most ambitious decarbonisation plans in Asia, with a target of net-zero emissions by 2050.

Consultancy Mckinsey has identified the sustainability opportunity in Malaysia as one of Asia’s most attractive, saying the country has a strong position in areas such as carbon capture and storage, renewables, biofuels and hydrogen: “Malaysia has a significant opportunity to become a major player in green business growth and sustainable development in Asia.”

Policymakers are trying to exploit this potential, according to Clube.

“The state governments are very good at making overtures towards international businesses,” he says.

“They can provide very favourable terms – whether on land, on credit or on other incentives to set up in the country.”

Investors will hope that the central government also continues to offer this kind of support.

Prime Minister Datuk Seri Anwar Ibrahim has moved in that direction by launching the New Industrial Master Plan 2030, which aims to increase the manufacturing sector’s GDP by 6.5% a year through to 2030, and the National Energy Transition Roadmap, which seeks to restructure the economy along more sustainable lines.

Such initiatives can be crucial in underpinning investors’ confidence.

According to the research, 34% of investors in Malaysia say that political stability is one of the criteria they consider when they select investment and business development destinations.

Only quality of infrastructure, which was chosen by 37% of investors and where Malaysia is also investing – is a bigger concern.

By capitalising on its strategic advantages in manufacturing and green technologies, Malaysia is positioning itself as an increasingly attractive destination for western financial institutions.

Source: The Star

How Malaysia is wooing overseas investors

Selangor’s approved investment rose to RM34.9 billion for the first half of this year, state executive councillor for investment, trade and mobility Ng Sze Han revealed.

He said this involves the manufacturing and services sectors, which have shown promising growth. 

“Up to June, approved investment value in both sectors rose to RM34.9 billion. 

“The services sector experienced a remarkable 178 per cent surge compared to last year,” he said in a Facebook post last night, after chairing a Standing Committee on Investment, Trade, and Industry meeting. 

Ng said in the meeting, he emphasised the need for all agencies to focus on facilitating investments in Selangor, especially in light of current international geopolitical uncertainties.

“This situation presents a strong opportunity for Malaysia to become a strategic destination for investors. 

“For Selangor, with advanced infrastructure such as airports, ports, a comprehensive road and rail network, the state has clear added value and advantages over other locations. 

“I hope all agencies will work together to implement policies and plans so that our investment figures and trade values continue to rise for the benefit of Selangor and its people.

Last year, Selangor recorded an overall investment of RM55.3 billion, outperforming initial forecasts and surpassing its initial target of RM45 billion, according to the Malaysian Investment Development Authority (Mida). 

Mida had said that the manufacturing sector witnessed a noteworthy year-on-year increase, with investments totalling RM19.3 billion in 2023, compared to RM12.2 billion in 2022. 

Ng had said then that Selangor has recorded a total of RM90.4 billion in domestic investment between 2021 and 2023.

During the same period, foreign investment recorded RM47.57 billion, of which RM21.53 billion was from the manufacturing sector, and the remaining RM26.04 billion was from the services sector. 

Source: Selangor Journal

Selangor approves RM34.9 bln in investments in first half of 2024

The Johor government has held meetings with several renowned South Korean companies, which can potentially bring strategic investments valued at US$190 million (US$1=RM4.38) into the state.

Menteri Besar Datuk Onn Hafiz Ghazi, who is on a four-day working visit to Seoul starting Oct 28, said the state government delegation led by him has had the opportunity to meet companies such as Hanwha Solutions Corporation, a Fortune Global 500 multinational known for innovations in clean energy and chemicals.

The delegation also met with global food company SPC Group, which has famous franchise brands such as Paris Baguette, as well as CJ CheilJedang Group, producer of halal Korean food in Malaysia, he said in a Facebook post today.

Onn Hafiz said these potential investments would create high-income jobs as well as economic spillover and development that would enhance the prosperity of the people in Johor.

“I believe all these companies have confidence in Johor’s potential as a strategic investment destination. Johor offers not only huge business opportunities but also a conducive ecosystem for long-term growth given its (strategic) position and continued support,” he said.

In a separate post, he said the delegation also participated in a seminar to discuss potential investment opportunities in Johor, especially in view of the development of the Johor-Singapore Special Economic Zone (JS-SEZ).

The seminar titled “Unlocking regional growth: Business opportunities in JS-SEZ” saw the participation of 83 renowned Korean companies from various industries, thus becoming a strong platform to promote Johor as a top choice for investors who seek a strategic and sustainable destination.

“At this seminar, I shared various strategic initiatives that the state government is or will be implementing with the cooperation of the Federal Government in relation to the JS-SEZ development in order to attract high-quality investments.

“Various preparations are being carefully made that reflect Johor’s seriousness in ensuring the success of this important agenda, such as the setting up of the Invest Malaysia Facilitation Centre Johor (IMFC-J) as a ‘one-facilitation centre’ and the development of the Johor Talent Development Council (JTDC),” he added.

Onn Hafiz also expressed confidence that Johor is the right springboard for investors to expand their business in the ASEAN region due to its strategic position as well as the attractive incentives offered by JS-SEZ, in addition to providing broad growth opportunities and direct access to the global market, which make it an ideal choice for long-term investments.

Source: Bernama

Johor stands to gain US$190 million potential investments from South Korean firms

Johor has engaged with 83 notable companies in South Korea in efforts to promote the upcoming Johor-Singapore Special Economic Zone (JS-SEZ).

Mentri Besar Datuk Onn Hafiz Ghazi, who led a delegation consisting of the state’s top officials and mayors, said he engaged with the businesses in a seminar titled “Unlocking Regional Growth: Business Opportunities in JS-SEZ” on Wednesday (Oct 30).

“Those in attendance came from various industries and the seminar was a strong platform to promote Johor as the strategic and sustainable choice destination for investment.

“We also discussed the opportunities that can be explored with the implementation of the JS-SEZ,” he said of the meeting, which was part of the state government’s working visit to South Korea.

Onn Hafiz said he also shared about the state and federal government’s collaboration in developing the JS-SEZ to attract more high-quality investments.

He added that various measures have been planned and executed to reflect Johor’s seriousness in making the JS-SEZ a success such as the establishment of the Invest Malaysia Facilitation Centre Johor as a one-facilitation centre, as well as the setting up of the Johor Talent Development Council.

“With our strategic location and attractive incentives set to be offered under the JS-SEZ, I am confident in Johor as the right location for investors to expand their business in the Asean region.

“The state is also expected to open up growth opportunities and direct access to the global market, which is ideal for long-term investments,” Onn Hafiz added.

He also hoped the visit would bear positive fruits and bring more benefits to Johoreans.

Source: The Star

Johor engages with 83 companies in South Korea to promote Johor-Singapore Special Economic Zone

Prime Minister Datuk Seri Anwar Ibrahim says Malaysia now has reached a stage at which it may be selective in terms of the type of investment coming into the country.

“Previously, we welcomed all data centres (to invest in Malaysia); now, we don’t.

“We will accept data centre investments only if they include a centre of excellence, artificial intelligence, and training exposure. Otherwise, we will not accept them.

“We have an advantage here because we have reached a point where we can be more selective about the type of investments we receive,” Anwar said at the Malaysian Madani Scholars Forum: The Energy Sector as a Catalyst for Sustainable and Inclusive Socioeconomic Growth.

He said the achievement was attributed to good relationships between Malaysia and many countries in the world.

Despite the good relations with various countries, Anwar reminded the importance for Malaysia to balance the factor with its support towards Palestine amid the conflict between the country and Israel currently.

“I know that sometimes when it comes to our stance on Gaza, we must also consider the country’s interests but to me, when young children and women are killed daily, there are limits.

“That is why I mentioned in the Cabinet meeting that on the issue of Gaza, we will still express our position strongly—whether in front of (Joe) Biden (U.S President) or (Antony) Blinken (U.S Secretary of State) —because I believe they have disregarded all humanitarian considerations.

“At the same time, we must balance this to ensure that investments can grow so that our country remains strong.

“So, we must also build internal strength.

“But building internal strength does not mean to oppose others, but rather to protect our nation’s interests, security, and future,” he said.

Source: NST

Now we can be more selective in accepting investments, says PM

The government, through the East Coast Economic Region (ECER) Development Council (ECERDC), will continue to focus on attracting private investments and realising high-value investment projects in the region, especially the Pahang Technology Park (PTP) and Gambang Halal Park (GHP).

Deputy Economy Minister Datuk Hanifah Hajar Taib said Synapse Network Sdn Bhd, a Malaysian registered entity of a Toronto, Canada-based company, has inked a 10-year lease agreement with ECERDC to transfer its existing operation from Hong Kong to PTP.

“The company plans to begin construction on 1.21 hectares (three acres) at PTP in the fourth quarter of 2024 and has submitted an application for incentives to ECERDC, which is under consideration by the Finance Ministry,” she said during a Special Chamber session in Parliament today.

Hanifah Hajar said ECERDC is in discussions with two other potential investors, including a Singapore-based company that operates six data centres in three Asian countries including Malaysia.

“This company is studying a business plan at PTP to construct and operate a 250-megawatt (MW) data centre and is expected to finalise its investment decision in the third quarter of 2025,” she said.

The other potential investor, she said, is a joint venture between a local private company and the Pahang State Development Corporation that plans to build a 3MW data centre and is conducting a feasibility study which is expected to be completed in the first quarter of 2025.

Meanwhile, Perodua plans to develop a logistics and vehicle assembly hub on 8.9 hectares (22 acres) in ECER and use the East Coast Rail Link (ECRL) Paya Besar Station as the mode of transport for distributing its vehicles in ECER, she said.

The car manufacturer also intends to use the Kuantan Port for shipping its vehicles to Sabah and Sarawak.

“The discussion between ECERDC and Perodua is ongoing, and Perodua is studying its business and development plans, which are expected to be finalised in 2025,” she explained.

On the investment status of PTP’s Cybercentre, she said ECERDC’s subsidiary Asia Centre of Excellence for Smart Technologies (ACES) is working together with charge point operator Gentari for the operation of four electric vehicle (EV) charging locations, hence supporting the national agenda to increase EV usage.

Hanifah Hajar said ACES has also collaborated with CS Medtec, a local technology company involved in the medical field through innovative 3D printing, to move from Singapore and Thailand to Malaysia, specifically Cybercentre, to meet the increasing local market demand in the medical industry.

As for GHP, she said ECERDC is holding discussions with three potential investors to develop a recreational vehicle assembly hub for the Asian market, conduct food trading and public service
activities, and develop a tropical seeds research park.

Hanifah Hajar said ECERDC also works closely with agencies such as Halal Development Corporation Bhd and the Pahang state government to bring in halal investments to GHP, especially in the food, pharmaceutical and cosmetics industries.

Source: Bernama

ECERDC To Continue Efforts To Attract High-value Investments To PTP, GHP

The Sabah government’s investor-friendly policy has shown promising results, with the state now attracting a growing number of local and foreign investors across various sectors.

Sabah Chief Minister Datuk Seri Hajiji Noor said that this response indicates the state is on the right path for growth through strategic initiatives under the ‘Sabah Maju Jaya’ roadmap.

“For example, today, we see the well-known company McDonald’s Malaysia returning to Sabah to inaugurate its latest restaurant while also announcing future business plans in the state.

“This development not only stimulates local economic activity but also creates more job opportunities for Sabah residents,” he said in his opening remarks at the inauguration of McDonald’s drive-thru Tuaran Town restaurant today.

His speech was delivered by Pantai Dalit State Assembly Member Datuk Jasnih Daya, also executive chairman of Innoprise Corporation Sdn Bhd, representing the Chief Minister at the restaurant opening.

Also attending was McDonald’s Malaysia managing director and local operating partner, Datuk Azmir Jaafar.

Sabah recorded RM11.34 billion in investments last year, making it the seventh-ranked state for investment nationwide.

Hajiji added that the Sabah government encourages joint ventures between franchise businesses and state-affiliated companies to explore mutually beneficial opportunities.

With the opening of Tuaran’s new drive-thru outlet, there are now 22 McDonald’s Malaysia restaurants operating in Sabah, employing approximately 800 people.

This aligns with the company’s commitment to expanding to 36 restaurants across the Land Below the Wind by 2030.

Source: Bernama

Sabah’s investor-friendly policy attracting more investors

The 2025 Budget will encourage further investments and demonstrates the government’s continued efforts to strengthen the country’s economic foundations, said Alliance Bank Malaysia Bhd.

Alliance Bank group chief executive officer Kellee Kam Chee Khiong said it is a progressive budget that has a prudent balance between the economy, sustainability, the adoption of digital investments and wellbeing of the people.  

“The budget is a testament to the government’s commitment to responsible fiscal management and continued priority for effective governance.

“It reflects the government’s intention to drive investments with initiatives such as the New Investment Incentive Framework, which will introduce a strategic investment fund of RM1 billion to enhance local capacity and encourage high-value activities,” he said today.  

The bank said the budget includes key features aimed at prioritising the welfare of the people, accelerating economic growth, attracting greater investments, opening pathways to new markets and fostering digital adoption.

Alliance Bank expects strong economic growth in Malaysia next year.

The government has adjusted the gross domestic product (GDP) growth forecast for 2024 to between 4.8 and 5.3 per cent, with a 2025 projection of 4.5 to 5.5 per cent, indicating positive growth momentum.

“The country’s economic growth rate is driven by healthy labour market conditions.  Positively, Malaysia’s unemployment rate in August 2024 declined further to 3.2 per cent while the labour force continues to increase resulting in a high labour participation rate of 70.4 per cent in August 2024,” it said.

Source: NST

2025 Budget to spur more investments, says Alliance Bank group CEO

Over the last decade, the economic relationship between the United States (US) and Malaysia has grown remarkably, resulting in the creation of more than 312,000 jobs, with being the leading source of foreign direct investment (FDI) in Malaysia.

According to Dave Williams, the Economic Counsellor at the US Embassy in Kuala Lumpur, American companies have announced over RM200 billion in new investments since 2021, with 72 per cent coming from Fortune 500 companies.

“Just this year, Google, Microsoft, Amazon, and Oracle have announced more than US$16 billion (US$1=RM4.34) worth of investments in Malaysia.

“These quality investments not only bolster the local economy but also create thousands of jobs for Malaysians,” he said in response to questions posed by Bernama.

He also said that the recent announcements and groundbreaking of new major investments in Malaysia underscores the strong confidence that US companies have in Malaysia as a prime investment destination.

“US companies are attracted by Malaysia’s highly skilled workforce, widespread English proficiency, strategic location, and robust network of suppliers and supply chain partners,” he said.

He added that Prime Minister Datuk Seri Anwar Ibrahim and other key Malaysian leaders’ participation in the Asia-Pacific Economic Cooperation (Apec) 2023 underscored the fact that Apec remains as important as ever.

“After his return from San Francisco, the Prime Minister announced billions in new investment commitments from US companies, highlighting the tangible benefits of Malaysia’s engagement in Apec,” he said.

On October 24, Malaysia and the US acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on trade and agriculture topics.

“The US welcomed Malaysia’s briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products.

“The countries have also pledged to explore possibilities for cooperation to improve sustainability,” the governments said in a joint statement on the sixth Malaysia-US Senior Officials’ Dialogue recently.

Both countries also highlighted their interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, agriculture, small and medium enterprise development, capacity-building, healthcare cooperation, and vaccine research cooperation.

The US is one of the largest foreign investors in Malaysia, with direct investments totalling US$21.53 billion in 2023.

Source: Bernama

US-Malaysia economic ties generate 312,000 new jobs – Economic counsellor