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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Malaysia, India sign eight MOUs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Malaysia aims to diversify economic diplomacy through BRICS – PM Anwar

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

Chinese firms explore Sabah investment opportunities

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

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

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

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

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

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

Anwar is expected to launch the framework on Oct 4.

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

MITI unveils initiatives for stronger industrial supply chain

Malaysia needs to continue playing its role as a ‘neutral’ country with a strong ecosystem in the technology sector to ensure the country remains an investment destination.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s economy is open and has established cooperative relations with all countries.

“Southeast Asia is neutral, has good demographics, a growing, stable and peaceful economy.

“Malaysia and Singapore are two countries that have been involved in the semiconductor sector for a long time — Malaysia is over 50 years old and we have a good ecosystem, almost complete and mature.

“So, that’s one of the reasons we see investment also increasing in this sector,” he said on the Agenda Awani programme titled ‘Tech War’, Tesla and Investment Magnet broadcast by Astro Awani on Tuesday.

He said the increase in investment inflows was also supported by recent data which showed Malaysia recorded approved investments of RM83.7 billion in various fields in the first quarter, representing an increase of 13 per cent from RM74.1 billion in the same period last year.

“We expect the Gross Domestic Product (GDP) to grow 5.8 per cent in the second quarter of 2024 with the manufacturing sector growing by 4.7 per cent, boosted by the electrical and electronics (E&E) sector, especially semiconductors,” he said.

Tengku Zafrul said that in terms of trade, Malaysia has 16 Free Trade Agreements (FTAs) including multilateral and bilateral, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

“We have various FTAs ​​with all groups, for example the BRICS (Brazil, Russia, India, China and South Africa) is not an economic block but a grouping that discusses global south issues.

“We are also together with the United States in the Indo-Pacific Economic Framework (IPEF). Recently we are looking to start discussions with the European Union on the Malaysia-EU Free Trade Agreement (MEUFTA).

“In my opinion, almost all of our blocs are together because our country is a country with an open economy and is also small compared to its main trading partners, the United States and China,” he said.

Source: Bernama

Malaysia needs to continue as ‘Neutral’ country to become primary investment destination – Tengku Zafrul

The standoff between the United States and China presents opportunities for Malaysia’s electrical and electronics (E&E) and renewable energy sectors, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said globally, investors in industries such as electric vehicles and solar power are focused on securing sensitive trade goods.

“At the heart of today’s tech Cold War lies a battle over the semiconductor supply chain and Malaysia’s 50-year-old sector places us in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain for us to export more higher-value products,” he said in his keynote address at PRAXIS 2024 here on Tuesday (Aug 13).

He said Malaysia has already welcomed global investors such as Infineon, Intel and Texas Instruments who have also increased their investments in Malaysia, citing Malaysia’s agile technology supply chains.

Aside from efforts on skilled talent development, Tengku Zafrul said Malaysia must also apply data-driven solutions.

He added that a proposal to establish an Integrated Digital Platform consisting of a Supply Chain Intelligent Management System, Business Continuity App and Virtual Centre of Excellence, was also presented to the National Investment Council on Tuesday.

“Together, these will map, gather and analyse real-time data from the supply chain of critical industries in Malaysia and show clearly how one sector’s supply chain supports another sector,” he said.

In terms of record investments, Tengku Zafrul also said Malaysia achieved a record high of RM330bil last year and RM83.7bil in the first quarter of this year.

He added that between 2021 and Q1 this year, the realisation rate of approved investments stood at about 80%.

He attributed this to diligent follow-ups by agency-led initiatives such as the Malaysian Investment Development Authority (Mida) Invest Malaysia Facilitation Centre, among others.

Trade-wise, he said Malaysia’s total exports last year surpassed RM1 trillion for the third year running, despite a cyclical downturn in the semiconductor industry and commodities.

“I am equally proud to share that for the first half of 2024, our total trade reached RM1.4 trillion, the highest ever for the period.

“The country has also recorded over two decades of uninterrupted quarterly trade surpluses, with E&E products and other manufactured goods massively contributing to exports,” he said.

Separately, Institute of Strategic and International Studies (Isis) Malaysia chairman Datuk Prof Dr Mohd Faiz Abdullah said the policy solutions put forward at the research sessions will be combined with cutting-edge research and analyses from the country’s researchers and knowledge partners.

“These policy papers will be made publicly available for all, and we will deliver them to the desks of all stakeholders to advance better policy solutions for the country,” he said in his welcoming remarks at PRAXIS 2024.

The Isis Malaysia website describes PRAXIS as its flagship public policy conference, designed to bridge ideas and translate theory into practice.

It has been held since 2011, bringing together policymakers, the private sector, civil society and academia to discuss topics of national interest.

Source: The Star

US-China tech impasse opens up opportunities for Malaysia, says Zafrul

Some 80% of approved investments between 2021 and the first quarter of this year have been realised, says the Investment, Trade and Industry Minister.

Tengku Datuk Seri Zafrul Tengku Abdul Aziz (pic) attributed this to diligent follow-ups by agency-led initiatives such as the Malaysian Investment Development Authority’s Invest Malaysia Facilitation Centre.

He said the country achieved a record high RM330bil in terms of approved investments in 2023 and a 13% year-on-year increase in the first quarter of 2024.

On trade, he said Malaysia’s total exports surpassed RM1 trillion for the third-year-running last year, while total trade reached RM1.4 trillion for the first half of 2024, making it the highest ever for the period.

“Compared with many of our regional neighbours, Malaysia has shown its ability to punch well above its weight in the movement of goods across borders. This is also attributed to Malaysia’s commitment to the rules-based framework of global trade through its membership of an extensive ecosystem of free trade agreements,” he said at PRAXIS 2024 here yesterday.

PRAXIS is the Institute of Strategic and International Studies (ISIS) Malaysia’s flagship public policy conference, designed to bridge ideas and translate theory into practice.

Despite the achievements, Tengku Zafrul said there was considerable room for improvement.

This includes enhancing the utilisation rates of free trade agreements like the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) among Malaysian firms.

He also highlighted the need to empower more small and medium enterprises to participate in international trade, and build resilience by economic diversification.

Separately, Tengku Zafrul said the standoff between the United States and China presents opportunities for Malaysia’s electrical and electronics (E&E) and renewable energy sector.

He said globally, investors in industries such as electric vehicles and solar power are focused on securing sensitive trade goods.

“At the heart of today’s tech Cold War lies a battle over the semiconductor supply chain and Malaysia’s 50-year-old semiconductor sector places us in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain for us to export more higher-value products,” he said.

He said Malaysia has already welcomed global investors such as Infineon, Intel and Texas Instruments who have also increased their investments in Malaysia, citing the country’s agile tech supply chains.

Aside from efforts on skilled talent development, Tengku Zafrul said Malaysia must also apply data-driven solutions.

He added that a proposal to establish an Integrated Digital Platform consisting of a Supply Chain Intelligent Management System, Business Continuity App and Virtual Centre of Excellence, was also presented to the National Investment Council yesterday.

Meanwhile, ISIS Malaysia chairman Datuk Prof Dr Mohd Faiz Abdullah said the policy solutions put forward at the PRAXIS 2024 sessions will be combined with cutting-edge research and analyses from researchers and knowledge partners.

“We commit that these policy papers will be made publicly available for all, and we will be delivering them to the desks of all stakeholders to advance better policy solutions for the country,” he said.

Source: The Star

‘Country achieved record high in approved investments’

Malaysia needs to strategically acquire and develop its own technology to be counted among developed nations, said Deputy Investment, Trade and Industry Minister (Miti) Liew Chin Tong. 

The deputy minister said that while foreign direct investment (FDI) is necessary, it is not an end in itself, and Malaysia needs to be strategic in its approach.

“Malaysia thinks that FDI is almost everything, and I think that mindset has to change,” he said. 

He said in the Madani Economic Framework, Prime Minister Datuk Seri Anwar Ibrahim highlighted that for over 20 years, investment has constituted only about 20% of the gross domestic product (GDP). 

“In contrast, during the early days of economic growth, it constituted around 40% of GDP. At one point in 1997, it rose to about 45%.

“While there were instances of overheating, the key takeaway is that investment is crucial and foreign investment is necessary, but we need to be strategic in our approach,” he said. 

Liew said this in his keynote address at the National Consultation on Green Industrialisation in Malaysia: Integrated Policy Strategies for a Sustainable Future meeting organised by the United Nations Trade and Development (Unctad) intergovernmental organisation and Khazanah Research Institute (KRI) here on Tuesday. 

He stressed that industrialisation cannot be just about exports; instead, it has to have some form of mission to solve societal problems.

“The New Industrial Master Plan 2030 [NIMP 2030] lists down four missions namely advance economic complexity; tech up for a digitally vibrant nation; push for Net Zero; safeguard economic security and inclusivity, which are all key to transforming Malaysia’s industry into one that is of high productivity, high skill, and most importantly, high wage,” he said.

Liew highlighted a comparison made by Seoul National University professor of economics, Prof Keun Lee, on the semiconductor sectors in Taiwan, Shenzhen and Penang, where the sector in Penang is still mainly driven by foreign firms.

“In comparison, the sectors in Taiwan and Shenzhen have acquired much more technologies and innovations,” he said.

Meanwhile, Liew said he is glad to see government-linked investment companies (GLICs) paying more attention to the semiconductor industry in Malaysia.

“The semiconductor industry used to be treated as a private-driven investment. Now, the industry has been thrust into the spotlight amid the current geopolitical fight between China and the United States due to the growing necessity of having access to advanced chips to power everything from smartphones to electric vehicles.

“Clearly, the ability to think critically about the way to position and accelerate advancements in semiconductors will have significant implications for trade, investment and geopolitics in the years to come,” he said. 

Liew said that it is also crucial to develop horizontal industrial linkages within Malaysia.

“For example, the mature semiconductor industry in Malaysia should form a basis for developing the automotive industry, including electric vehicles (EVs) and agritech,” he said.

Liew added that Malaysia is at the brink of a second economic takeoff built upon the development of a high productivity, high skills, and high wage model. 

Recently, the Ministry of Finance announced that six GLICS, Khazanah being one of them, have pledged to invest RM120 billion in domestic direct investments (DDI) over the next five years in high-growth, high-value industries, including the energy transition sector and advanced manufacturing, particularly in semiconductors.

Source: Bernama

Malaysia must be strategic in acquiring and developing technology to be developed nations

Malaysia, as a middle power, can play its role in global supply chain security amid the United States-China tensions, particularly via its electrical and electronics and renewable energy (RE) sectors.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said globally, investors in industries such as electric vehicles (EV) and solar power are focused on securing sensitive trade goods.

“The emergence of competing supply chains, and both countries’ (the United States and China) efforts to decouple from each other’s economies, has reshaped the dynamics of both international trade and investments,” he said in his keynote address at the Isis Praxis 2024 Conference today.

On Malaysia navigating this turbulent terrain, Tengku Zafrul said understanding the clear division within the global tech ecosystem has been crucial in positioning Malaysia as a preferred investment destination, particularly for semiconductors.

“China’s ‘Made in China 2025’ initiative seeks to establish dominance in crucial technologies such as artificial intelligence (AI), robotics, RE, EV, aerospace and biotechnology. In response, the US has restricted critical exports and domestic innovation investments through initiatives such as the CHIPs Act.

“As a result, many investors are seeking diversification across regions and sectors, as a risk-mitigation measure. Security concerns and over-reliance have led both economies and their regional partners to invest more in separate, rival tech supply chains,” he said.

Tengku Zafrul said at the heart of today’s Tech Cold War lies a battle over the semiconductor supply chain, and Malaysia’s 50-year-old semiconductor sector places the country in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain to export more higher-value products.

“We have already welcomed global investors such as Infineon, Intel and Texas Instruments who have increased their investments in Malaysia, due to our agile tech supply chains. Indeed, as technology continues to evolve, investors are also considering the transformative potential of emerging technologies such as generative AI,” he said.

To that end, Tengku Zafrul said, Malaysia is courting investments in related assets such as robotics, AI-powered logistics suppliers and industrial real estate — in short, hardware, software and applications across the AI ecosystem — to help global investors mitigate risks.

“Indeed, the semiconductor industry is the backbone of today’s biggest technologies, including AI, electric vehicles and factory automation. It is also pivotal in securing economic prosperity and national security for tech superpowers such as China and the US, especially as Taiwan still dominates semiconductor manufacturing worldwide,” he said.

According to the minister, analysts have estimated that government initiatives, such as the CHIPS Act, may inject roughly US$100 billion (RM444.9 billion) into the semiconductor industry across the US, Europe and Asia, of which Malaysia has the industrial capacity, the track record and the rule of law to successfully reap that opportunity.

“Malaysia can truly become a ‘middle-power broker’ to support the security of the global tech supply chain. This is why the NSS has earmarked over RM25 billion over the next decade to strengthen and upscale Malaysia’s semiconductor sector through talent development, targeted initiatives for local companies, and incentives to promote investment in high value-added front-end activities.

“Aside from our efforts on skilled talent development, Malaysia must also apply data-driven solutions. Hence, the continued need for strategic, deliberate and conscious action by policymakers like the Investment, Trade and Industry Ministry,” he said.

Source: Bernama

‘Malaysia can be middle power in global supply chain amid US-China tensions’

Johor is poised to be the country’s growth engine with the Johor-Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ) in Forest City as key drivers.

RHB Research said JS-SEZ is designed to foster stronger business connections and improved connectivity between the two countries.

“We view all these positively, as it indicates that both the Malaysia and Singapore governments are working well together, and Johor may be able to capture a stronger inflow of investments from Singapore going forward,” it said.

The country’s third largest state by gross domestic product contribution, economic growth for Johor is expected to continue to surpass the national gross domestic product (GDP) average, said RHB Research.

It said Johor stands out with its strategic location, advanced infrastructure, and a diverse economic landscape that includes robust manufacturing activities and a strong services sector.

“We believe the government-led catalytic developments as well as an influx of foreign and domestic direct investments will help to lift the construction, data centre, energy, petrochemicals, industrial, tourism sectors, in addition to a positive spill over to the property market,” it said in note.

The firm said the work progress on the RTS Link project has significantly boosted buyers’ confidence, given the visibility of growth prospects for Johor.

The RTS Link is a game changer, as increased cross-border traffic and the powerful “SGD factor” should benefit the local real estate sector, including housing, retail, and hospitality.

It said demand for rental and housing in the central region of Johor is likely to grow more significantly in the coming years, while the influx of new investments will translate into higher affordability in the long run.

“Major developers remain confident in the long- term outlook with Johor continuing to be an important market.

“We like UEM Sunrise Bhd and Sunway Bhd in the Johor property space. For construction, we highlight Sunway Construction Bhd, Kerjaya Prospek Group Bhd, and Malaysian Resources Corp Bhd. “Other beneficiaries of the Johor growth story include Tenaga Nasional Bhd, YTL Power International Bhd, AME Real Estate Investment Trust and VS Industry Bhd,” it added.

Source: NST

Johor will be Malaysia’s next growth engine thanks to Johor-Singapore SEZ and Forest City SFZ

Johor is set to be the next growth engine for Malaysia, driven by two high-impact projects, namely the Johor-Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ) in Forest City, according to RHB Research.

The research house pointed that government-led catalytic developments as well as an influx of foreign and domestic direct investments will help to lift the construction, data centre, energy, petrochemicals, industrial and tourism sectors, in addition to a positive spillover to the property market.

“We believe that Johor’s economic growth will continue to surpass the national average, fuelled by its robust manufacturing sector, sustained strength in its services industry, advantageous location and well-developed infrastructure, as well as supportive policies from both state and federal governments. Johor has a well-developed infrastructure that includes ports, airports, road network and utilities, complemented by competitive business operation costs,” RHB said in its Johor Market outlook report on Monday.

Currently, Johor ranks as the third-largest economic contributor in Malaysia — behind Selangor and Kuala Lumpur — and second largest contributor to Malaysia’s trade.

The state accounts for 9.5% of the country’s gross domestic product (GDP). About 29% or RM753.1 billion of national total trade in 2023 came from Johor.

In recent years, RHB said Johor’s GDP growth has outpaced the national average, expanding by 4.1% year-on-year (y-o-y) in 2023, compared to Malaysia’s 3.6% y-o-y growth, driven by the services and manufacturing sectors, which contribute 84% of Johor’s GDP.

“Johor’s services sector has experienced the fastest growth among Malaysian states over the past five years. Several economic and demographic factors fuel the services sector there — consumer spending and retail trade are buoyed by a rising middle class and increasing per capita income,” it added.

Favourable FDI destination

Meanwhile, major ports like the Port of Tanjung Pelepas (PTP) and Johor Port provide excellent connectivity for export and import activities, with PTP standing out as one of Malaysia’s busiest ports and largest trans-shipment hubs, handling a significant portion of the nation’s container traffic and serving as a key gateway for regional and global trade.

“Johor continues to be a leading investment destination in Malaysia for 2023, attracting significant interest from domestic and international investors.

The state’s appeal is driven by its robust infrastructure such as ports and road networks while being well-equipped with utilities services as well as abundant labour.

“In 2023, the Malaysian Investment Development Authority (Mida) approved 751 projects in Johor totalling RM43.1 billion — accounting for 13% of the national figure. These projects are expected to create 19,053 new jobs,” the research house added.

On the other hand, Johor’s manufacturing output in 2023 grew by 2.8% y-o-y, surpassing the national average of 0.7%, driven by a diverse sector portfolio including electrical and electronics, automotive, and petrochemicals, with significant foreign direct investment in the Iskandar Malaysia region bolstering its industrial parks and multinational presence.

“This flagship economic zone is designed to attract high value industries and global investors, offering tax incentives, specialised business parks, and a business-friendly regulatory environment,” it said.

Besides, the ongoing RTS Link project in Johor, with an estimated investment of RM3.7 billion, was 77.6% completed as of May 2024 and is on schedule to begin operations by early 2027. This cross-border rail service, spanning some four kilometres, will connect Bukit Chagar (Malaysia) to Woodlands (Singapore), accommodating up to 10,000 passengers.

Increasing appetite for property in Johor

Additionally, the RTS Link is poised to be a game changer, boosting cross-border traffic and leveraging the “SGD factor” to benefit Johor’s local real estate sector, including housing, retail and hospitality.

Demand for rental properties and housing in Johor’s central region is expected to rise significantly, with new investments likely to enhance long-term affordability.

“Major developers remain confident on the long term outlook with Johor continuing to be an important market.” it said.

Source: The Edge Malaysia

RHB bullish on Johor as Malaysia’s next economic powerhouse

The Johor government has proposed for the Forest City Special Financial Zone (SFZ) to be included within the Johor-Singapore Special Economic Zone (JS-SEZ).

Johor’s Investment, Trade, Consumer Affairs, and Human Resources committee chairman Lee Ting Han said the proposal was discussed internally and it would be submitted to the JS-SEZ working committee for further deliberation.

“The Forest City master plan, launched in 2016, aimed to develop the area into an integrated zone focusing on medical, tourism, education, and real estate sectors.

“There was also a plan to transform an island into a duty-free zone, which was realised this year with government support, making Forest City Island One duty-free.

“The SFZ was announced by Prime Minister Datuk Seri Anwar Ibrahim about a year ago, and has been progressing well,” he said in a statement today.

Lee said Forest City’s strategic location and alignment with its master plan made it an ideal choice for the SFZ.

He added that they were now incorporating the financial sector into Forest City’s development, and said the existing infrastructure was nearly complete.

Forest City’s proximity to Singapore, a major international financial and logistics hub, presents a significant opportunity to complement Singapore’s offerings.

“Our focus is on attracting investors to the SFZ and addressing the need for soft infrastructure like talent and connectivity.”

Lee added that the state government intended to elevate Johor’s financial industry, which has traditionally been conventional, by introducing advanced banking, capital, and bond products.

The initiative is expected to complement Singapore’s financial sector and potentially establish a new industry in Johor.

“We anticipate more details on the SFZ incentives by the end of August, before the signing of the JS-SEZ agreement between Malaysia and Singapore,” Lee said.

“We are proposing that the Forest City SFZ be integrated into the JS-SEZ to ensure it benefits from the same incentives.”

He said folding in the SFZ within the JS-SEZ would formalise cooperation between Malaysia and Singapore, enabling more concrete collaborations.

One of the proposals under consideration was for financial investors in Singapore to expand their operations into Forest City.

Since the SFZ announcement, the Johor government had engaged with various financial institutions, both domestic and international, to explore opportunities.

“Many industry players are eager to invest in the SFZ, but they are awaiting the announcement of incentives.

“We aim to position Forest City as a hub for launching financial products into international markets,” Lee said.

Source: NST

Forest City’s SFZ to be integrated into Johor-Singapore SEZ

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz expressed confidence in Malaysia’s ability to withstand a potential recession in the United States (US), citing the nation’s recent economic performance as evidence.

Despite rising unemployment in the US, Tengku Zafrul highlighted several positive domestic economic indicators.

These include controlled inflation and a second-quarter growth forecast of 5.8 per cent, which contribute to an optimistic outlook for Malaysia.

However, he emphasised the need for Malaysia to prepare for worst-case scenarios by focusing on resilient industries.

“As an open economy with a trade-to-GDP ratio of 130 per cent, we must ensure our economy is diverse, not just in terms of products and GDP, but also in our markets,“ he told the media today.

Tengku Zafrul made these remarks following the National Consultation Meeting on Green Trade, organised by Khazanah Research Institute in collaboration with the United Nations Conference on Trade and Development.

When asked if the worsening situation in the US would impact the recently announced National Semiconductor Strategy (NSS), Tengku Zafrul clarified that the NSS is a long-term programme extending until 2030.

“If there is an external shock, we need to be prepared. However, it’s important to remember that this is a long-term target. There will be fluctuations, but the overall trajectory will remain upward.

“We are focusing on resilient industries, and the semiconductor sector is particularly robust. The growing use of artificial intelligence (AI) will continue to drive demand for microchips, energy, and data centres, making these resources as essential as water and electricity,“ he said.

Earlier in his speech, Tengku Zafrul highlighted the importance of extending green financing to all companies in Malaysia, particularly small and medium enterprises (SMEs), to foster industry development and green trade.

“Large corporations, including multinationals and major local companies, do not face financial challenges. However, SMEs require financial support to meet upcoming stringent requirements, particularly when exporting to foreign markets,“ he said.

He added that the government is in discussions with various stakeholders, including the financial and banking sectors, to prioritise loans that support these companies.

Source: Bernama

Malaysia poised to withstand US recession – Tengku Zafrul

The Perlis government has approved 12 new investments in the state amounting to RM2 billion since November 2022, the State Legislative Assembly sitting was told today.

Perlis Menteri Besar Mohd Shukri Ramli said of the total, seven companies have been granted approval to invest in the Chuping Valley Industrial Area (CVIA), with an investment value of RM1.75 billion. These investments span the manufacturing, industrial, and renewable energy sectors, including solar energy.

“The state government considers more than just the financial value of investments. We also evaluate how investments will bring greater economic spillover to the local community,” he said.

He said this in his reply to a question from Saad Seman (PN-Chuping), in a question and answer session today.

Saad wanted to know the number of investors which the state government has received so far, how many are involved with CVIA, and the total in Malaysian Ringgit earned from these investments.

Mohd Shukri said that factors such as job creation, opportunities for small businesses due to increased demand for industrial labour, and the potential for developing new growth centres, were key considerations in evaluating investment proposals.

He expressed confidence that, through ongoing efforts, cooperation with relevant agencies, and support from elected representatives, Perlis will continue to attract further investments over the next three years, driving economic growth in the state.

Source: Bernama

12 investments worth RM2 billion approved since November 2022 – Perlis MB

The strengthening of the ringgit reflects the fundamentals of the country’s economy and policies, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Despite tough policy implementation decisions, confidence has grown among both foreign and local investors.

“We look at the capital market and stock market, showing that investors are confident about the prospects of Malaysia.

“Additionally, the first quarter gross domestic product (GDP) growth and the second quarter advanced estimate of about 5.8 per cent. All these are the basis of the ringgit strengthening,” he said when asked about the ringgit’s performance.

Tengku Zafrul was speaking to the press after the groundbreaking ceremony of Vantage Data Centers’ second campus today. Also present was Digital Minister Gobind Singh Deo.

At 8am, the ringgit traded slightly higher at 4.4200/4300 against the US dollar, compared to Monday’s close of 4.4240/4305.

Economists noted that the ringgit has made impressive gains this year, appreciating 4.1 per cent against the US dollar.

The minister is also optimistic about achieving this year’s GDP growth target of four to five per cent, crediting the government’s persistent efforts.

“We have seen trade increase by 8.4 per cent in the first six months of this year, with investments up by 13 per cent. If we can sustain these (trends), we should be able to meet our GDP growth target of four to five per cent this year,” he said.

However, Tengku Zafrul acknowledged that the ringgit’s gains are partly due to a weakening US dollar, following a weak employment report and the prospect of US rate cuts.

Source: Bernama

Tough policy decisions boost investors’ confidence — Minister

Sabah is ready to transform into a hub for technological advancement by encouraging innovation and the integration of technology, said chief minister Datuk Seri Hajiji Noor.

He said that the government intends to create an ecosystem that supports the growth of small and medium enterprises (SMEs), promotes digital transformation, and foster a culture of innovation.

“The state government’s commitment to economic growth is unwavering and we are also implementing an open-door policy for investors, while exploring new economic resources including the Blue Economy which will bring a new dimension to Sabah’s economy.

“Our focus now is to create a conducive environment for business development, attract domestic and foreign investments, and ensure our workforce is equipped with the skills needed to meet future demands,” said Hajiji.

He was speaking at the opening ceremony of Malaysian Technology Development Corporation’s Road to Growth (R2G) Sabah edition today.

Hajiji said that in the 12th Malaysia Plan and the SMJ Development Direction Plan, Science, Technology and Innovation (STI) have been identified as one of the important catalysts driving socio-economic development.

He expressed hope that the R2G 2024-Sabah programme can help produce more innovative researchers and entrepreneurs.

He said the state government welcomes the move by the Ministry of Science, Technology and Innovation (Mosti) in introducing the Local R&D Products and Services Utilisation Programme (MySTI), an initiative that will benefit entrepreneurs, universities, research institutions and the government in utilising local innovation and R&D products.

Hajiji said the initiative will also stimulate the growth of local industries, especially in Sabah in the field of technology, which is among the new economic resources that have been identified.

“I want all these opportunities to be taken and utilised as best as possible by universities, research institutions and entrepreneurs in this state to register and obtain the MySTI logo marking,” he said.

Hajiji emphasised the importance of adapting to the changing economic landscape and called on universities, research institutions, and entrepreneurs to take advantage of these new opportunities.

He also hoped that the MTDC R2G programme will empower the local workforce with necessary skills for a technology-based economy and drive innovation across various industries in Sabah.

Source: Malay Mail

Hajiji: Sabah set to become technology hub as it targets tech-driven economy

Malaysia has emerged as the most important country for businesses in the Association of South-east Asian Nations (Asean) and Greater China looking to venture into over the next three years, according to the UOB Business Outlook Study 2024 released today.

The annual study, now in its fifth year, surveyed more than 4,000 small and medium-sized enterprises (SMEs) and large enterprises across seven markets, including over 500 Malaysian businesses and found them optimistic about the country’s growth prospects.

“The UOB Business Outlook Study indicates that local businesses are gearing up for a period of growth as they are bullish on Malaysia’s economic potential.

“Overseas businesses are looking to expand into Malaysia due to the country’s strong economic fundamentals and attractiveness as a regional business hub,” UOB Malaysia CEO Ng Wei Wei said in a statement accompanying the study.

Ng highlighted several factors contributing to this optimism, including the China+1 strategy, the upcoming Johor-Singapore Special Economic Zone, and the upcycle of the global semiconductor industry.

The survey found that more than seven in 10 Malaysian businesses are positive about the current business environment, with 76 per cent expecting improved business performance this year.

The most optimistic sectors include industrials, oil and gas (90 per cent), and manufacturing and engineering (80 per cent).

Despite the positive outlook, many businesses are still recovering from the economic slowdown and are concerned about inflation and higher operating costs.

The survey also revealed that almost 80 per cent of Malaysian businesses aim to expand overseas to boost profits and enhance their international reputation.

Asean and mainland China were highlighted as the top two markets for expansion, with Indonesia being the most important country for local businesses to venture into, followed by Singapore, Thailand, and Brunei.

The survey emphasised the importance of sustainability, with over eight in 10 local businesses acknowledging its significance in attracting investors.

However, only 39 per cent of these businesses have implemented sustainability practices, with the manufacturing and engineering sector leading the way at 53 per cent.

The UOB survey found that companies are requesting more financial support, such as tax incentives, sustainable financing options, and easier access to funding to encourage better adoption of sustainability.

They are also seeking training programs to reskill employees on sustainability initiatives, which are vital for attracting investment and fostering growth.

Source: Malay Mail

UOB study shows Malaysia is top country for Asean and Greater China businesses

Malaysia’s target to achieve high-income status is realistic, given its solid growth trajectory, economic stability and strong investor confidence.

Its economic growth will continue to be driven by contributions from key states such as Selangor, Sarawak, Kuala Lumpur, and Penang over the next three to six years, said Juwai IQI global chief economist Shan Saeed.

“Selangor currently contributes 25 per cent to the nation’s gross domestic product (GDP), Sarawak is set to rise strongly and become a major contributor to the economy, while Penang remains as the manufacturing hub,” he told Bernama.

Overall, he expects Malaysia’s GDP growth to be around 4.0-5.0 per cent in the next three to five years, supported by a stronger ringgit, as the local note is expected to range between RM4.10 and RM4.40
versus the US dollar.

“The budget deficit target remains under 3.5 per cent with disciplined fiscal policy,” said Shan.

He opined that growth in information and communication technologies (ICT), oil and gas (O&G), real estate, electrical and electronics (E&E), e-commerce, and logistics sectors will support Malaysia’s bid for high-income status.

Malaysia is already a significant player in the E&E market, exporting to countries like China, the United States, Singapore, Hong Kong, and Japan.

At the same time, the O&G sector continues to be crucial to the nation’s economy, with a strong ecosystem supporting both domestic and regional value chains.

Under the New Industrial Master Plan 2030 (NIMP 2030), the country aims to transform into a high-technology nation by 2030,positioning itself as a dynamic ICT hub in Southeast Asia.

Recently, World Bank Malaysia lead economist, Apurva Sanghi said five Malaysian states, namely Selangor, Sarawak, Penang, Labuan and Kuala Lumpur, have surpassed the 2023 high-income threshold of US$14,005 (US$1=RM4.56).

According to his posting on X, Kuala Lumpur has the highest at US$29,967 gross national income (GNI) per capita, followed by Labuan (US$19,117), Penang (US$16,660), Sarawak (US$16,650) and Selangor (US$14,291).

Meanwhile, states with the lowest GNI per capita are Kelantan (US$3,850), Perlis (US$5,490) and Kedah (US$6,027).

He noted that Malaysia could reach high-income status by 2030, emphasising the need for faster reforms to speed up the transition.

Economy Minister Rafizi Ramli recently said Malaysia could attain high-income nation status from 2027 if the national economy grows 4.0-5.0 per cent every year and the ringgit strengthens to around RM4.20 against the US dollar.

Source: Bernama

Malaysia On Track For High-income Status

Malaysia and the United Arab Emirates (UAE) have reached an agreement that would improve bilateral trade and investment between the two nations.

The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is anticipated to be implemented by the end of 2024.

“The MY-UAE CEPA, a comprehensive CEPA, encompasses areas such as trade in goods; trade in services; investment facilitation; digital trade; micro and small medium enterprises; economic cooperation, and others.

“Notably, it introduces Malaysia’s first chapter on Islamic Economy in a CEPA, paving the way for collaboration with UAE in the areas of Halal certification, Islamic finance, and digital,” it adds.

Malaysia’s delegation was led by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, while the UAE was represented by His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Tengku Zafrul stated that this agreement represents Malaysia’s first Free Trade Agreement with a country from the Gulf Cooperation Council (GCC).

“Given the robust trade growth and rising industrial linkages between our countries, particularly in the areas of renewable energy, digital economy, and electric mobility,.

“I am confident this CEPA will further strengthen our bilateral trade and investment ties. I look forward to the agreement entering into force by the end of 2024,” he said.

In 2023, the UAE became Malaysia’s second-largest trading partner in the West Asia region, with bilateral trade increasing by 5.4 per cent to US$8.67 billion (RM39.63 billion) compared to the previous year.

Malaysia’s main exports to the UAE included electrical and electronic products, jewellery, palm oil and palm oil-based agricultural products, palm oil-based manufactured products, and processed foods.

On the other hand, major imports consisted of crude petroleum, petroleum products, jewellery, metal manufactures, and chemical products.

In terms of investment, 2023 saw 34 manufacturing projects in Malaysia involving Emirati participation, valued at US$0.4 billion (RM 1.5 billion).

These projects, covering sectors such as machinery and equipment, Halal pharmaceuticals, chemicals and chemical products, and food manufacturing, have created 2,039 jobs in Malaysia.

Dr. Thani mentioned that Malaysia is a long-standing and trusted trade partner, similar to the UAE, as both countries aim to boost their economic prospects through expanded trade and targeted investment.

“As the fourth largest economy in the Southeast Asia region, and with economic growth in 2024 set to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists, and business leaders, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services.

“I look forward to working together with Tengku Zafrul to secure a swift ratification of the CEPA and to realise long-lasting benefits for us both—and our respective regions,” he added.

Source: NST

Malaysia, UAE to increase bilateral trade and investment

Chief Minister Chow Kon Yeow is leading Penang’s investment and trade mission to the United States (US) from Sunday until Aug 14, to renew ties and forge relationships with the corporate headquarters of American investors in Penang.

Penang Chief Minister’s Office said in a statement that the mission organised by InvestPenang, the Penang state investment promotion agency, also aims to encourage the expansion of their Penang sites and attract new investments.

“Additionally, the mission seeks to update American companies on the latest developments and opportunities available in Penang, including information on recent advancements in infrastructure and policy changes, to facilitate investment.

“By enhancing visibility and further promoting Penang as a prime location, the mission also targets potential investors in the electrical and electronics (E&E), semiconductor, equipment, medical devices, integrated circuit (IC) design, digital global business services (DGBS) and digital economy industries,” the statement said on Sunday.

Throughout their visit, Chow and delegates will participate in a series of meetings and site visits to the corporate headquarters of American investors, to showcase the state’s strengths, innovations and commitment to being a resilient and sustainable investment location.

Meanwhile, Chow, who is also the finance, economic development, land and communications state executive councillor, expressed enthusiasm on the investment and trade mission, besides looking forward to strengthening relationships with American investors.

“[I] eagerly anticipate the positive outcomes resulting from this mission,” he added.

According to the statement, during the chief minister’s absence due to this investment and trade mission, Penang’s administrative affairs will continue to operate seamlessly.

Dubbed as the “Silicon Valley of the East”, Penang recorded RM71.9 billion in investment inflows in 2023, the highest in Malaysia, driven by foreign direct investments, which accounted for RM61.7 billion or 85.8% of state’s manufacturing investment inflows.

Source: Bernama

Penang CM leads investment and trade mission to US

JP Morgan says the Johor-Singapore special economic zone (SEZ) will likely be a multi-year growth story just as how Shenzhen SEZ has developed over the past 45 years.

It also said the Johor-Singapore SEZ provides high-growth sector specific opportunities, outside of property land bank play.

The SEZ is promising given a more conducive regulatory and policy environment with proactive collaboration, the US investment bank added.

The firm expects regulatory harmonisation and tax incentives to pave the way.

“The JS-SEZ has had several working visits by the country officials, and government agencies have been involved in discussions and feedback sessions with private-sector representatives, with proactive follow-up actions.

“If the JS-SEZ moves ahead, it is likely to be a multi-year growth story with refinements along the way, just as how Shenzhen SEZ has developed over the past 45 years,” it said.

JP Morgan noted that the development of the SEZ aligned with its increasingly constructive outlook in Malaysia.

“The positive response to the Johor-Singapore SEZ initiative is evident in rising property share prices, with the KL Property index overall up 65 per cent since July 2023 and companies with large land-banks in Johor having seen two to four times share price increases,” it said in a note. 

The firm highlighted five sectors that have value proposition and growth potential namely real estate investment trusts, infrastructure and transportation, healthcare, renewable energy and tech-related.

It also noted that connectivity via the Rapid Transit System (RTS) Link marks the start of more infra projects to unlock the full economic potential of the SEZ. 

The Johor-Singapore SEZ officially commenced with a Memorandum of Understanding (MOU) signed on Jan 1 this year.

Negotiations are in their final stage for a legally binding Memorandum of Agreement expected in September, with fiscal package incentives to be incorporated into the 2025 Budget announcement on Oct 18.

Source: NST

Johor-Singapore SEZ may turn into multi-growth story like Shenzhen: JP Morgan