Vice-chancellors at higher education institutions must assess industry demands and the labour market to ensure graduates are prepared for areas where there is a demand for more skilled workers, says Datuk Seri Dr Zambry Abd Kadir.

The Higher Education Minister said the current lack of skilled workers was due to the mismatch in skills driven by changes in industry that are now more sophisticated following the Covid-19 pandemic.

“There is such a huge potential for investors to come to Malaysia, but our capacity (of electrical and electronics graduates) is limited to 5,000 (a year).

“Therefore, I have held a meeting with (Investment, Trade And Industry Minister) Datuk Seri Tengku Zafrul Abdul Aziz and the vice-chancellors of universities in the country to plan a solution to the constraints.

“That is why, in terms of numbers, there is demand in certain sectors as mentioned by Tengku Zafrul,” he told reporters after a networking luncheon with the diplomatic missions in Malaysia on Monday (Feb 5).

His response came following Tengku Zafrul’s comment in a video posted on X on Feb 3 that the number of local graduates in the high-tech sector was insufficient to meet the demands of investors.

Zambry was at the luncheon to brief foreign diplomats about the Malaysian higher education landscape and his goals as the new Higher Education Minister.

The ministry, he said, aims to strengthen bilateral ties with foreign institutions, which can enhance Malaysia’s higher education presence on a global scale.

“Over the past three years, there has been an average 6% increase in the number of international students in Malaysia, with a diverse representation from 167 countries around the world.

“Through strategic investments in infrastructure, faculty development and internationalisation initiatives, we aim to position Malaysia as a prominent destination for higher education, attracting students, scholars and researchers worldwide,” he said.

Source: The Star

Efforts to meet industry demand for skilled grads underway, says Zambry

The proposal to allow foreign graduates of local institutes of higher education (IHE) to work temporarily in the country in certain fields such as the high-tech sector could further boost Malaysia’s education sector as an income generator for the country.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said that this year foreign students in Malaysia are estimated to spend RM7.3 billion a year.

“The Ministry of Investment, Trade and Industry (MITI) has been working with the Ministry of Higher Education, the Ministry of Human Resources, the Ministry of Science, Technology and Innovation as well as various other agencies to increase the number of students and skilled workers in the high-tech field.

“As an example are collaborative projects that improve the skills of our graduates such as training programmes with industry,” he said in a video posting on X (previously known as Twitter) today.

Tengku Zafrul said such skilled workers are needed now.

“Investors cannot wait four more years. For example, the electrical and electronics industry needs 50,000 engineers. Our IHE so far only produces 5,000 graduates a year. So to meet the demand of the industry will take time.

“If investors want graduates in artificial intelligence (AI), for example, we cannot provide them candidates with political science degrees. After all, they (foreign graduates) also understand our work culture, which makes them the right choice,” he said.

He added that by allowing foreign graduates of local institutes of higher education to work temporarily in the country, the local industry will get the necessary supply of skilled manpower.

“Local IHE (can) be empowered in the international arena and our local graduates will continue to be given opportunities when they are ready,” he added. 

Source: Bernama

Tengku Zafrul: Proposal to allow foreign graduates to work a short-term solution to address shortage of skilled workers

Investors cannot wait much longer for Malaysia to produce more skilled workers as they are needed now, says Datuk Seri Tengku Zafrul Abdul Aziz in response to objections to allow foreign tertiary education graduates to temporarily work in Malaysia.

“Investors cannot wait four more years.

“For example, the electrical and electronics industry needs 50,000 engineers. Our institutes of higher learning so far only produces 5,000 graduates a year. So, to meet the demand of the industry will take time,” he said in a video posted on X yesterday.

“If investors want graduates in artificial intelligence (AI), for example, we cannot provide them candidates with political science degrees,” Tengku Zafrul said as reported by Bernama.

“After all, they (foreign graduates) also understand our work culture, which makes them the right choice,” he said.

He added that by allowing foreign graduates of local institutes of higher education to work temporarily in the country, the local industry will get the necessary supply of skilled manpower.

“Local IHE (can) be empowered in the international arena and our local graduates will continue to be given opportunities when they are ready,” he added.

Tengku Zafrul said his ministry as well as the ministries of Higher Education, Human Resources, Science, Technology and Innovation are working to increase the number of students and skilled workers in high-tech fields.

He was responding to a statement by the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) on Friday.

Cuepacs had objected to any proposal to let foreign graduates work in Malaysia to address the shortage of skilled manpower.

Its president, Datuk Adnan Mat, said the proposal not only negates opportunities for locals, but also undermines the country’s efforts to produce highly-skilled local graduates.

He said the policy of allowing foreign graduates to fill vacancies in the high-tech sector is a step backwards and may result in local graduates receiving lower wages and increasing the unemployment rate in the future.

“Various programmes have been introduced by local higher education institutions (HEIs) at considerable investment to produce highly-skilled graduates in line with the government’s aspirations.

“The country is currently on the right track in producing such graduates and no longer needs to depend on foreign labour,” he said.

Source: The Star

Investors cannot wait for M’sia to produce enough skilled labour

Malaysia’s economy is set to grow by up to 5% this year, thanks to the expected rise in local and foreign investment, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the implementation of key strategic plans by the government over the past year have placed Malaysia in an ideal position to continue its growth this year.

“Our effective investment strategies have paid off well with data from January to September 2023 showing that we have attracted RM225bil in investments, a 6.6% increase from before,” he said in his keynote address at the 2024 Global Economic and Strategic Outlook Forum here yesterday. He noted that the investments came from 3,949 different projects and are expected to create 89,495 new jobs.

“This will continue to reinforce the country’s strong performance and position in services, manufacturing and primary industries within the region.

“The implementation of key strategic plans like the Madani Economy, New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), and Mid-Term Review of the 12th Malaysia Plan, will further catalyse both foreign direct investments and domestic direct investment in 2024,” he said.

He added that planned major transit infrastructure projects such as the Klang Valley LRT3 and East Coast Rail Link (ECRL) were also set to become major economic drivers. Together with the proposed Johor-Singapore Special Economic Zone and Special Financial Zone in Forest City in Johor, he said this was set to strengthen various key sectors including education, finance and tourism.

Fadillah, who is also the Energy Transition and Public Utilities Minister, called for increased collaboration between the private sector and civil society, which would accelerate the country’s push towards sustainability.

“These partnerships will offer a powerful platform for innovation, information sharing and driving meaningful change,” he added.

Over 100 industry players and leaders attended the forum, which had two interactive sessions on general economic outlook as well as another on the corporate outlook.

The forum was held by the KSI Strategic Institute for Asia Pacific (KSI), along with the institute’s 2024 Global Corporate Excellence and Sustainability Awards ceremony.

The awards saw Star Media Group (SMG) take home the Global Media Excellence Award for International News and Features, which was received by SMG chief content officer Datin Paduka Esther Ng.

The awards were handed out by Fadillah along with KSI president Tan Sri Michael Yeoh, KSI chairman Tan Sri Datuk Majid Khan, and KSI deputy chairman Datuk Seri Mohamed Iqbal Rawther.

Source: The Star

Foreign investment boost

Despite the challenges posed by ongoing geopolitical issues and economic risks, Malaysia is uniquely positioned to punch above its weight, as it did in the past, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He noted that 2024 may yet be another unpredictable year, with unrest and conflicts in Europe and the Middle East, and that it is hard not to be concerned about their far-reaching effects.

“There is also a lot of talk about political changes worldwide, and it is interesting to see how these might play out. People are also worried about high interest rates, which affect the cost of living. We will see how these impact the global economy as the year progresses.

“I believe there will be a big focus on the United States (US) and China relations. As their economies are huge, whatever happens, there can sway things globally, ” he said.

Fadillah was speaking at the 2024 Global Economic and Strategic Outlook Forum today, jointly organised by the KSI Strategic Institute for Asia Pacific, the Economic Club of Kuala Lumpur, and the World Digital Chamber.

In his speech, the Energy Transition and Public Utilities Minister also pointed out the world is witnessing climate change in action, the geopolitical complexity of various events of late, the US-China trade wars, the Covid-19 pandemic, Russia’s actions in Ukraine, and the Gaza conflict.

“All these things are piling up and creating more uncertainty, which is difficult to fathom.

“My political observation is that there are many interesting elections around the world this year, like the US presidential race with Joe Biden and possibly Donald Trump in the mix.

“Then there is India where Narendra Modi is seeking another term, and Taiwan’s new President-elect, who is pro-US and (this will) most certainly affect the US-China relations.

“Nearer to us is Indonesia’s election, which is another interesting one, with the new president succeeding President Joko Widodo,” he said.

In spite of these potential issues and uncertainties, Fadillah remains rather optimistic, as amid a tough 2023, Malaysia managed to avert a recession and mitigate inflation, and this gave the people hope.

For 2024, Malaysia’s economy is expected to grow healthily between four to five per cent, as forecasted by the Finance Ministry.

The government is taking steps to reduce fuel subsidies and tweak fuel prices to keep inflation in check. Additionally, the job market is strong, supported by a positive business outlook, low unemployment, and steady increases in real wages.

“The government continuously provides substantial fiscal support with a development expenditure allocation of RM90 billion in Budget 2024. Our focus areas include industrial development, green investments, infrastructure, and public utility enhancements,” he said.

On another note, Fadillah said effective investment strategies have paid off and, based on the January-September 2023 data, had attracted RM225 billion in investments, a 6.6 per cent increase from the same period a year ago.

These investments were from 3,949 projects and are expected to create 89,495 new jobs, reinforcing Malaysia’s strong performance and position in services, manufacturing, and primary industries.

The implementation of key strategic plans like the Madani Economy framework, the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), and the mid-term review of the 12th Malaysia Plan will further catalyse both foreign direct investment and domestic direct Investment in 2024.

Meanwhile, bolstered by political stability, as evidenced by the government’s two-thirds majority in Parliament, Malaysia is exceptionally well-positioned for a prosperous future as this allows the government to engage in strategic planning, implement robust economic policies, and nurture a dynamic, resilient economy.

On another note, Fadillah said the nation reaffirmed its commitment to carbon neutrality by 2050. It aims to reduce greenhouse gas emissions by 45 per cent by 2030 in line with the Paris Agreement.

This ambitious goal is being pursued through the NETR and the NIMP to ensure a just and inclusive transition towards a sustainable, low-carbon economy.

“As a Sarawakian, please let me briefly mention that Sarawak is leading Malaysia’s charge against climate change. The historic Environment Bill passed in November last year makes Sarawak the first nationwide to legislate such proactive measures.

“This bill is not just a plan but an actionable path forward in setting a rigorous standard for businesses in emissions reporting and paving the way for green energy advancements and sustainable development. I am hopeful when Sarawak moves, Malaysia will also move,” he said.

Moving into 2024, the need for collaboration in climate action is more pressing than ever before. Hence, Fadillah is calling for public-private-people partnerships to collectively accelerate the progress to combat climate change to achieve sustainable development goals.

“These partnerships offer a powerful platform for innovation and information sharing and drive meaningful change. By working together and leveraging each other’s strengths and resources, we can create impactful and lasting solutions to the environmental challenges we all face,” he said.

Source: Bernama

Malaysia is positioned to punch above its weight — DPM

India will prioritise cooperation with Malaysia in the digital economy sector, placing it at the core of bilateral engagement in moving forward, says Indian High Commisioner to Malaysia, B.N.Reddy.

He said this will be achieved by establishing the Malaysia-India Digital Council and operationalising the Malaysia-India Startup Bridge.

Expressing confidence in the evolving relations between the “New India” and “Madani Malaysia,” Reddy emphasised that these ties would gain increased relevance and significance.

“Indian Prime Minister Narendra Modi announced New India’s determination to become a developed country by 2047, a year India will be celebrating the 100th year of independence.

“Malaysia will become an important partner in our journey as India becomes a developed country,” he said in his speech during the reception on the 75th anniversary of India’s Republic Day here last night, which was graced by Second Finance Minister, Datuk Seri Amir Hamzah Azizan, and members of the diplomatic corps.

Reddy underscored that the India-Malaysia relationship is rooted not only in shared interests but also in deep values, democracy, rule of law, and a preference for a rule-based international order.

He described it as a natural and innovative partnership, foreseeing 2024 as a promising year for deepening bilateral ties, especially under the stable government led by Malaysian Prime Minister Datuk Seri Anwar Ibrahim.

Highlighting the frequent high-level engagements between the two countries, Reddy mentioned that 12 ministerial and deputy ministerial visits had taken place since December 2022, including a joint commission meeting in New Delhi in November last year.

He also emphasised the significant role played by the 2.7 million people of Indian origin in Malaysia, considering them a living bridge for mutual engagement.

The diplomat acknowledged the substantial contribution of Indian expats, around 15,000 in number, to the Malaysian economy, highlighting that this year, the Bharat Club, a society formed by Indian expats, is celebrating its 50th year of establishment.

Reddy also mentioned the presence of about 115,000 Indian workers employed in Malaysia. During his speech, Reddy shared positive statistics about India’s progress, noting that 250 million people in India have come out from multidimensional poverty in the last nine years.

He highlighted the deep roots of the digital economy in India, with unprecedented digital transformation in play, while stressing that India has produced 111 unicorns and boasts the world’s third-largest startup ecosystem, with 120,000 startups developed in seven years.

The current India-Malaysia bilateral trade stands at US$20 billion, with plans to expand to US$25 billion by 2025.  Additionally, with approximately 200 flights per week to 11 destinations in India and visa-free travel for Indian nationals, India is emerging as the fastest-growing source country for tourists in Malaysia.

“Tourist numbers from India touched almost half a million during the first nine months of 2023, marking an 88 per cent increase compared to 2022,” said Reddy.

Source: Bernama

India places digital economy at the core of bilateral engagement with Malaysia

Sabah offers lucrative opportunities for environmental, social and governance (ESG) conscious global investors, according to Invest Sabah Bhd.

Invest Sabah chief communications officer Datin Nirvana Jalil Ghani said the state is currently focusing on promoting ESG investments into Sabah.

“The government allocates about RM30 million annually to Sabah for forest preservation. And this expenditure does not include other investments. As you can see, in terms of research, governance, and more, we are moving towards a completely green approach. That’s why, even regarding the investments we bring into Sabah, our focus is on green technology and anything related to environmental sustainability,“ she told SunBiz.

Nirvana pointed to the uniqueness of Sabah which lies in the fact that 59% of Malaysia’s mangroves are located in the state which offers research and investment opportunities for local and international investors.

“In terms of rainforest, Sabah boasts the second oldest rainforest globally and the oldest tropical rainforest,” she added.

Currently, the state is seeking investment in manufacturing, tourism, agriculture, human capital, and infrastructure and utilities.

Furthermore, although the state government has a policy against exporting raw materials, it invites investors to explore opportunities by investing in and establishing processing factories in Sabah. This encompasses among others a range of industries, including cocoa, timber, and biomass.

For manufacturing, Sabah has Kota Kinabalu Industrial Park (KKIP), which is wholly owned by the state government. An integrated industrial park covering 8,320 acres, it comprises several components, including industrial, commercial, R&D and institutions, residential and tourism development.

Sabah is located within the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area with international direct flights to Kota Kinabalu from China, Hong Kong, Macau, Taiwan, the Philippines, Brunei, Singapore and South Korea.

There are 2,309 flights arriving at Kota Kinabalu International Airport (KKIA) a month, which equates to 77 flights per day or three flights per hour. On an average day, there is at least one flight arriving every 20 minutes (August 2023).

From January to May 2022, there were 558,169 registered tourist arrivals compared with 102,965 in the previous year.

In 2019, more than nine million passengers passed through KKIA, making it the second busiest airport in Malaysia after Kuala Lumpur International Airport (KLIA) in terms of passenger and aircraft movements and the third busiest in terms of cargo handled.

The state’s major trading partners are Peninsular Malaysia (RM16.4 billion export, RM18.4 billion import), China (RM7.6 billion export, RM3.1 billion import), Australia (RM4.1 billion export, RM275 million import), European Union (RM3.4 billion export, RM861 million import), and India (RM3.5 billion export, 460 million import).

Source: The Sun

Sabah out to attract ESG-conscious global investors

The Investment, Trade, and Industry Ministry (Miti) has engaged relevant ministries and agencies like the Human Resources Ministry, the Higher Education Ministry, and the National Technical and Vocational Education and Training (TVET) Council to increase Malaysia’s skilled workforce.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said the engagements would come up with the proper planning needed to ramp up the number of skilled Malaysian workers.

“One example is that we are discussing allowing students studying in Malaysian universities, like engineering students, to work. Currently, they are not allowed to work.

“We can look at areas where there are not enough Malaysians, especially in the value-added services and high technology sectors, and allow the students to work for a period of time. We have not gone to the cabinet yet.

“That is one interim solution, but we also need to entice our workers and students abroad to come back; we have many (workers and students abroad),” he told the press after the Miti Dialogues 2024 today.

Tengku Zafrul also stressed that as investment inflows come in, investors need skilled manpower.

“For example, when we recently opened the AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd’s plant in Kulim, Kedah, they needed 6,000 engineers while Intel needed 5,000 engineers.

It is positive, but at the same time, our country needs to ensure that the talents are there,” he said.

Meanwhile, Miti is finalising a few free trade agreements (FTA), including with the United Arab Emirates (UAE), which is expected to be concluded by the end of June this year.

“One of the exports is textile. There is a certification of halal textile. In fact, China and Indonesia are doing that. Malaysia does not have that yet.

“We have asked the Halal Development Corp, together with the Malaysian Islamic Development Department (Jakim), to come out with a standard for halal textile,” Tengku Zafrul added.

The Miti Dialogues 2024 saw the attendance of almost 300 people from 24 ministries and Miti’s agencies, including representatives from 103 associations, chambers of commerce, and business councils.

The day saw a dynamic exchange of views and discussion on strategies, solutions and stronger execution to further enhance Malaysia’s industrial, trade and investment ecosystem, premised on the New Industrial Master Plan (NIMP) 2030 as the overarching policy.

Source: Bernama

MITI working with relevant ministries, agencies to boost skilled workers

As Asean countries stand to chart stronger economic growth this year compared to some of their developed peers, Malaysia as a member of the Asean bloc is in a favourable position to attract more foreign direct investment (FDI).

Economic experts expect the country to see improvements in FDI and to an extent compete with some of its regional peers in the FDI space.

According to world investment statistics compiled by the United Nations Conference on Trade and Development (UNCTAD), Malaysia’s FDI inflow in 2020 amounted to US$3.2bil or 2.6% of the total FDI inflow to Asean countries.

It climbed to US$12.2bil in 2021 and US$16.9bil in 2022, raising its share of Asean’s total to 5.7% and 7.6% respectively. Malaysia’s ranking in FDI size among the 10 Asean countries also rose incrementally from sixth placing in 2020 to fifth in 2021 and fourth in 2022.

Economics professor at Sunway University Yeah Kim Leng told StarBiz Malaysia has not fared too badly in attracting FDI but it has been overtaken consistently by Indonesia and Vietnam in recent years.

He said the size of FDI relative to gross domestic product (GDP) is a better measure to compare the ability to attract FDI across countries. Based on this measure, the country’s FDI in 2022 amounted to 4.2% of GDP and placed it in fourth position behind Vietnam (4.4%), Cambodia (12.4%) and Singapore (32.3%).

He said as one of the two upper middle-income Asean countries, Malaysia’s 4% to 5% annual real GDP growth projected for this year is better than its income peer, Thailand, as well as high-income Singapore and Brunei.

“Countries that have reached a high income level as defined by the World Bank find it hard to sustain growth above 2% to 3% per annum.

“Unsurprisingly, the rest of Asean member countries which are in the lower middle-income category are growing at 5% to 7% per annum, as the growth rate is faster with a smaller income base.

“Malaysia is on the cusp of joining the high-income nations within the next two to three years.

“Barring another major global setback, the country’s ability to maintain trend-level growth is assured by the new administration’s focus on strengthening governance and undertaking the necessary fiscal reforms and structural upgrading to unleash new sources of growth emanating from greening and digitalising the economy,” Yeah noted.

Juwai IQI global chief economist Shan Saeed said in terms of FDI, competition is getting tough in the Asean region. He said there are five major countries which are competing for FDI in the region, namely, Malaysia, Indonesia, Vietnam, Thailand, and the Philippines.

“We expect FDI to move into various countries according to the strength and productive labour force. For example, in Malaysia, we expect FDI inflows into the manufacturing, electrical and electronics, real estate, technology and eCommerce sectors.

“For Indonesia, the company expects inflows into mining, technology, electric vehicles and services.

“Vietnam is anticipated to attract FDI into manufacturing, real estate and technology, while Thailand into manufacturing, technology, financial services and real estate. FDI into the Philippines will be in services, manufacturing and real estate.

“Having said that, Malaysia will be able to compete with other neighbouring countries because of its productive labour force, stable rules and regulation, and above all its strategic geography.

“When it comes to global FDI, Malaysia remains germane for many players in the region for long-term investments,” he noted.

To further spur FDI into Malaysia, Shan said maintaining macroeconomic stability, enhancing the skills of the labour force, leveraging technology, maintaining economic policy consistency and achieving growth stability were vital.

AmBank Group chief economist Firdaos Rosli said from the perspective of portfolio investments, Malaysia would likely benefit from the flow of foreign capital coming into emerging markets amid the anticipation of rate cuts by the Federal Reserve (Fed) and other major central banks in 2024.

However, he said it may come in lower than anticipated if the major central banks’ higher-for-longer interest rates narrative were to persist beyond the first half of this year. As it stands, in 2024, he expects a higher foreign inflow into Malaysian equities but slower into the bond market than in 2023.

“In terms of approved manufacturing and services investments, generally, the approved investment numbers will remain healthy in 2024.

“With the New Industrial Master Plan 2030 (NIMP 2030) announced last year, I assume that the Malaysian Investment Development Authority (Mida) and other relevant investment authorities will ramp up their promotional activities to encourage more FDI into Malaysia.

“It all boils down to the time frame these approved investments turn into realised investments in the coming months and quarters.

“This outlook is contingent upon various factors and not from government approvals alone,” he said.

In terms of Malaysia’s FDI versus its Asean neighbours for this year, Firdaos thinks Malaysia would still be trailing behind other more “attractive” investment destinations such as Singapore, Indonesia, Vietnam and the Philippines. The entire trade and investment ecosystem needs a holistic review, i.e. beyond NIMP 2030 alone, should Malaysia aim to edge up versus its neighbours.

To strengthen or attract more FDIs into the country, he said the government should further mainstream the said plans into policies.

“Investors may need to understand how these plans would impact their existing and future investments concerning the overall cost of doing business. Furthermore, it is still too early to conclude whether the plans could strategically position Malaysia’s investment attractiveness higher than its peers,” Firdaos said.

Meanwhile, Asean economist at HSBC Yun Liu said Malaysia has been topping Asean as one of the main beneficiaries of consistent and quality FDI inflows, especially in the tech manufacturing space. This would provide hopes for the local trade sector to emerge stronger when the trade tide turns, she noted.

Tax incentives, FDI-friendly policies, free trade agreements, ease of doing business, and labour cost effectiveness would further spur FDI inflows into Malaysia, she said.

“A better trade prospect along with resilient domestic demand will drive Malaysia’s growth in 2024. While a turn in the global electronics cycle has not translated into the country’s external sector yet, Malaysia is poised to be a main beneficiary, albeit even slightly delayed than regional peers, she said.

At the same time, Liu expects all Asean countries to see accelerating growth in 2024, with Malaysia expected to come in the middle of the pack. “Our 2024 growth forecasts is Vietnam at 6%, Philippines (5.3%), Indonesia (5.2%), Malaysia (4.5%), Thailand (3.8%), and Singapore (2.4%),” she said.

Juwai’s Shan said he is upbeat of Malaysia’s FDI as the nation’s growth model would be driven by two major variables in the GDP equation: consumption and investment.

He said Malaysia is one the key players when it comes to manufacturing. Many global players want to leverage its strategic geography, educated, and productive labor force. Moreover, trade and commerce would bolster the GDP outlook at the macro level.

“We at Juwai IQI expect trade volumes to stay higher in the range of 10% to 15% in 2024. Tourism has become an economic tool to buttress the local businesses and keep the consumption pattern moving for the economy. This bodes well for FDI inflows,” Shan said.

AmBank’s Firdaos said he is optimistic on the Asean region. In terms of GDP growth, he expects the region to fare better in 2024 compared to the prior year and higher than global and advanced economies. He said the gradual recovery in global trade would lend support to Asean’s growth.

“The International Monetary Fund’s (IMF) October projections expect Asean to grow at 4.2% in 2023 versus 4.5% in 2024, whereas the Asian Development Bank (ADB) believes that the region’s growth is coming in at 4.3% and 4.7%, respectively. The Philippines, Vietnam and Indonesia will likely lead the region’s fastest-growing economies in 2024, while other economies are expected to fare better this year amid a gradual recovery in global trade and a healthy labour market.

“I expect Malaysia to experience some “rebound” this year as semiconductor exports recover in time. Ambank is pencilling Malaysia’s growth to come in at 4.5%, with the overnight policy rate (OPR) remaining static at 3%, but downside risks remain amid an inflationary outlook.

“The government’s planned subsidy rationalisation is still hazy because the magnitude of the eventual floating of RON95 to inflation remains largely unknown. As such, we are looking at inflation ranging from 2.5%-3.5%, but if price pressures intensify, it may come in around the mid-to-high side of the said range,” Firdaos said.

Source: The Star

Higher FDI expected

Selangor aims to continue achieving more robust growth in the gross domestic product (GDP) and will be able to compete with major cities in Southeast Asia by 2025 with several development projects launched since 2022, says Menteri Besar Dato’ Seri Amirudin Shari.

Citing Selangor’s economic growth of 11.9 per cent in 2022, which surpassed Malaysia’s 8.7 per cent, Amirudin expressed his optimism that the state would be able to repeat its economic success this year.

“This year, we expect to achieve better GDP growth than national. And InsyaAllah (God willing), with the plans that I had presented in 2022, by 2025, not only are we aiming to uphold our economic performance, but we will also be able to compete with cities in Southeast Asia such as Jakarta, Bandung, Phnom Penh, Bangkok or other developing areas,” he said in his speech at the Gombak Parliament Hari Prihatin Rakyat: Entrepreneurship and Cultural Carnival, here today.

Amirudin, who is also the Gombak MP, shared some of the state government’s plans for development opportunities, such as the Sabak Bernam Development Area (Sabda) under the First Selangor Plan (RS-1), involving the development of high-value crops on an area of 1,317 hectares and estimated to generate up to RM248 million in revenue annually.

Announced in July 2022, some of its projects include the development of the Sekinchan Seafood Landing Complex, R&R facilities and the Air Manis business hub.

Meanwhile, on a separate matter, Amirudin lauded Yayasan Hijrah Selangor (Hijrah) for producing successful entrepreneurs under its programme.

However, the Menteri Besar reminded the participants to pay off their outstanding loans, emphasising that the funds would be redistributed to other eligible entrepreneurs.

“This is a loan, not a grant. Repayment is mandatory since the funds are redistributed for future use to create a productive cycle that promotes entrepreneurial growth,” he said.

On January 11, Hijrah chief executive officer Datuk Mearia Hamzah said that the agency is engaging with collection agents to retrieve outstanding loans that have ballooned to over RM100 million from some 16,000 businesses since 2015.

She said some 300 borrowers have been identified to have not fulfilled a single loan repayment and have since been blacklisted in the country’s credit reporting agency CTOS.

State executive councillor for entrepreneurship Mohd Najwan Halimi said on November 14 of last year that over 15,000 borrowers had fallen behind on their repayments, accounting for 22 per cent of the RM135 million in total loans.

He said 58,885 individuals have received loans through the programme, totalling RM780 million.

Source: Selangor Journal

MB: Selangor aims stronger GDP growth, compete with major regional cities by 2025

The Investment, Trade and Industry Ministry (Miti) has assured that it will assist Perlis to further boost the investment sector regardless of political differences for the development of the state so that it contributes to the economic development of the country.

Deputy Minister Liew Chin Tong said the ministry viewed Perlis as a huge potential in the field of the border economy, involving the halal product industry as well as the semiconductor sector that can increase investments in the state.

“Our halal products are recognised and accepted by Muslims all over the world including Southern Thailand and this I think is an advantage. I hope Miti and especially the Halal Development Corporation (HDC) can assist Perlis,” he told reporters after paying a courtesy call on Perlis Menteri Besar Mohd Shukri Ramli at the State Legislative Assembly Complex today (January 23).

On the semiconductor industry, Liew said that the engineering and electricity technology faculty as well as the electronics technology and engineering faculty at the Universiti Malaysia Perlis (UniMAP) provide the state with an advantage in developing the semiconductor industry.

There is already cooperation between (semiconductor) companies in Penang and in Kulim with Perlis, especially in Chuping.

“There is potential if there is cooperation between the semiconductor companies and by using the advantages of UniMAP, the semiconductor (industry) opportunity is quite bright for Perlis,” he said.

Meanwhile, Mohd Shukri describes the meeting with Liew as interesting with Liew suggesting the state government increase investments in Perlis.

Source: Bernama

MITI gives assurance to help Perlis boost investment sector

By Ong Kian Ming

The signing of the memorandum of understanding (MoU) on the Johor-Singapore Special Economic Zone (JS-SEZ) between Malaysia and Singapore on Jan 11, 2024, was well received on both sides of the border. The intention behind the JS-SEZ is to re-catalyse economic development in Johor under the leadership of prime ministers Datuk Seri Anwar Ibrahim and Lee Hsien Loong, with a new mandate and fresh ideas. The imminent installation of the Sultan of Johor as Malaysia’s new King also provided fresh impetus for a new cooperation narrative between the two countries, one where Johor plays a key role. However, a few key elements are needed to facilitate these good ideas and effective implementation, especially given the lack of details in the MoU.

First, the role of the Johor government must be explicitly outlined. It is not surprising that the first initiative listed in the press statement by Singapore’s Ministry of Trade and Industry (MTI) was the establishment of “a one-stop business/investment service centre in Johor to facilitate the application process for various approvals and licences necessary for Singapore businesses to set up in Johor”. This is clearly a pain point for Singapore businesses wanting to invest in Johor and being able to overcome it should be a priority for the JS-SEZ. Its resolution must involve the local and state governments in Johor.

Second, the private sector must play a meaningful role in designing and implementing the MoU. Many government-linked companies (GLCs) in Malaysia and Singapore are waiting to see how they can align with the direction set by the MoU. There are opportunities for these GLCs to cooperate with one another — similar to how Malaysia’s Khazanah Nasional has collaborated with Singapore’s Temasek on joint development projects in Iskandar Malaysia and Marina Bay, Singapore — and for these GLCs to cooperate with private partners from either side of the border. A well-designed MoU framework, with investments from a few “anchor” GLCs (including entities belonging to the Johor government) will provide guidance for such collaborations. If done well, this has the potential to further unleash human and financial capital in both countries.

Third, if not already in place, there needs to be a well-thought-out framework to discuss the finer details of the JS-SEZ at the working level involving the right agencies and ministries so that creative and potentially game-changing ideas can be discussed, filtered and brought up to the ministerial level.

The hard work of executing the plan outlined in the MoU lies with both countries’ civil services. For example, to facilitate passport-free travel between Johor and Singapore, both immigration authorities, together with their ministries of home affairs, must jointly discuss the parameters of this initiative. Other agencies and ministries can be brought to the discussion table depending on the mandate discussed between the two ministers in charge — Rafizi Ramli for Malaysia and Gan Kim Yong for Singapore. Once that mandate is clear, both ministers and their ministries must coordinate and avoid working in silos within their own government and between the national governments.

Fourth, there must be measurable key performance indicators (KPIs) for the projects and parties identified. For example, passport-free travel for citizens of both countries ideally would be implemented by end-2025, in time for the rollout of the Johor Bahru-Singapore Rapid Transit System (RTS) linking JB and Woodlands in 2026. Notionally, a pilot design could be tested in late 2024 or early 2025, perhaps in conjunction with the rollout of the Malaysian Digital ID with the relevant tech agencies (Ministry of Science, Technology and Innovation in Malaysia and Government Technology Agency in Singapore) working in close collaboration. Another example: timelines for the joint development of smart and green industrial parks with state-of-the-art data centres and deployment of artificial intelligence (AI) capabilities in autonomous vehicle testing between Malaysian and Singapore GLCs can be spelled out by the relevant parties. A final example would be to allow for the easier deployment of fintech solutions safeguarded by financial sandboxes in both countries, approved by Bank Negara and the Securities Commission Malaysia, and the Monetary Authority of Singapore.

Last, the processes of discussion and implementation must be well defined. It would be a good signal to the market if regular, say quarterly, updates by both ministers on the MoU’s progress and key initiatives could be made. If anything, these updates can provide internal and external pressure for relevant stakeholders to take concrete steps.

It is interesting that Singapore MTI’s press release mentioned seven exploratory initiatives “apart from the agreement”, including a one-stop business/investment service centre in Johor, the adoption of digitised processes for cargo clearance at the land checkpoints and joint promotion events between Johor and Singapore to promote trade and investments into the JS-SEZ.

This is a clear sign that Singapore wants to push ahead with certain initiatives as part of “beefing up” the MoU so concrete collaborations can be undertaken to build up trust and momentum in bilateral cooperation. Malaysia should look at this as an opportunity to put concrete proposals on the table even as the finer details of the MoU are being ironed out.

The initial excitement over this phase of bilateral cooperation, illustrated by the popular “wefie” of smiling prime ministers Anwar and Lee wearing hard hats on the day the MoU was announced, is palpable. The weight of expectations shows that ministers Rafizi and Gan have their work cut out for them.

Ong Kian Ming was an associate senior fellow at ISEAS-Yusof Ishak Institute and director of the Philosophy, Politics and Economic (PPE) programme at Taylor’s University, Malaysia. He is a former deputy minister of international trade and industry. This commentary first appeared on ISEAS-Yusof Ishak Institute’s blog, Fulcrum.

Source: The Edge Markets

Making the Johor-Singapore Special Economic Zone work

Malaysia’s growth of 3.8% in 2023 is beatable this year, on the back of a better global environment, says HSBC.HSBC’s South-East Asia and India, global private banking and wealth chief investment officer James Cheo said he is positive that the 4.5% economic growth is achievable with stabilisation of inflation and a stronger anticipated consumer consumption.

“Consumption has always been a pillar of growth for Malaysia and with inflation becoming more stable, it will put more money in our hands to spend, which will drive the economy,” he said during a media briefing at HSBC’s Wealth and Investment Outlook for the first half of 2024, yesterday.

According to Cheo, tourism will also see a push, particularly from arrivals from China, although it will not be the same as pre-pandemic levels.

Compared to the rest of the Asean region, he said Malaysia is garnering the lion’s share of tourist arrivals and this will continue to boost the economy.

He added that the green shoots of recovery from the electronic cycle is another positive factor for the economy.

“Malaysia’s strong semiconductor production and commodities market will give investors a good reason to invest into the country. From a foreign direct investment perspective, the chain orientation works well for the country because the Asean economy is linked together and offers plenty of opportunities,” he said.

However, Cheo said in terms of Malaysia’s risk assets, there are some headwinds on the horizon due to the interest rate differential.

“The US federal fund rate is at 5.25% while Malaysia’s overnight policy rate is at 3%, so there will definitely be a dollar strength that we’re up against. This is why I’m a little selective because naturally we find that capital will gravitate towards the United States because of this,” he said.

On investment themes, the bank identified four key drivers that will highlight the growth and income opportunities in the region for 2024. Cheo said the first was Asia’s supply chain being reshaped, as North Asian industry leaders have cleverly diversified their supply chains to go beyond China.

He said the second theme will be how India is a burgeoning economy and one to watch closely because of its demographic and potential.

“India delivered stronger-than-expected growth in manufacturing and services last year, with strong foreign direct investment inflows and booming exports. About 40% of the world’s global capability centres are in India, offering a boost to its economy and job market,” he said.

He said Indonesia has also offered solid growth and is one of the more favourable investment stories in Asia, supported by its large, young and growing population.

The third theme is on the rising wealth and middle-class consumers in Asia; while the fourth theme is on capturing peaking Asian yields.

Source: The Star

HSBC: 2024 to be a year of recovery for Malaysia

Melaka attracted RM4.77 billion in approved investments in the third quarter of 2023, said Chief Minister Datuk Seri Ab Rauf Yusoh.

Citing the figure by the Malaysian Investment Development Authority (MIDA), the chief minister said he believes Melaka could reach the RM5 billion investment target set for every year.

“We have worked hard to make Melaka an investment-friendly state. We hope more investors will invest here this year,” he said in his speech during the opening ceremony for Audemars Microtec (Malaysia) Sdn Bhd’s production facility in Angkasa Nuri Industrial Park in Durian Tunggal here today.

Also present were Audemars Microtec (Malaysia) Sdn Bhd chief executive officer Mirko Audemars, Science, Technology, Innovation and Communication State Exco Datuk Fairul Nizam Roslan and MIDA Deputy Chief Executive Officer S. Sivasuriyamoorthy.

The chief minister noted that there are 60 semiconductor factories in Melaka, reflecting Melaka’s image as a popular choice for electrical and electronics investments in the region.

“The industrial and manufacturing sectors are the backbone of Melaka’s economic development. In 2022 they contributed 37.2 per cent to the state’s gross domestic product (GDP). Currently, there are more than 185 thousand workers in Melaka’s industrial sector,” he said.

Commenting on Audemars Microtec’s presence in Melaka, Ab Rauf said the Swiss company invested RM50 million to set up its operations in the state, specifically in supplying precision micro-components to many of the world’s leading medical device manufacturers.

“The micro-components production in Melaka is inclusive of those critical key components that enable the functionality of the smallest and most sophisticated implantable, interventional and wearable medical devices.

“Audemars’ production site in Melaka covers a total area of 0.33 hectares and will focus on the manufacture of micro-coils and micro-magnets.

“I am very glad to hear that Audemars Malaysia will, at its full capacity, provide 200 jobs for the people of Melaka,” he added.

Source: Bernama

Melaka draws RM4.77 bln in approved investments in third quarter of 2023

Malaysia aims to become a key destination for high-end manufacturing and services, with electrical and electronics, aerospace, medical devices and pharmaceutical, and chemicals among the key focus for sector development, said Deputy Investment and International Trade Minister Liew Chin Tong.

He said that Malaysia’s initial economic take-off before 1997 positioned the country as a high-end manufacturing nation in Asia, and there is a renewed focus on regaining that status, possibly this year or in the coming years.

“Our factories are not only for producing ordinary products but also for high-end manufacturing, including semiconductors and other fields. And our economy is not only for regular services but for high-end services such as regional headquarters, legal services, environmental services, or engineering services,” he told reporters at the 7th China International Import Expo Malaysia (CIIE) promotion event yesterday.

He said it is Malaysia’s aspiration that the country is recognised and considered by companies worldwide, including companies from China, that the nation is unique and can produce services and manufacturing activities that are considered high-end.

“While China was the world’s factory, Malaysia was overlooked. But now, due to the somewhat uncomfortable relationship between China and the United States, Chinese and Western companies are seeking or forming second supply chain alternatives apart from China. Malaysia can take advantage of this opportunity and become a destination for Foreign Direct Investment and Domestic Direct Investment,” he said.

In his speech, Liew said that in the context of high-end manufacturing and services, there is a call for greater integration between government and private entities.

“Our responsibility is to improve Malaysia’s regulations and propose initiatives that create a positive impact on Malaysia-China businesses, focusing on high-end manufacturing and services within the policy and legal frameworks.

“Economic alignment and collaboration between businesses are very much emphasised, and events like CIIE provide a platform for Malaysian entrepreneurs to engage with Chinese businesses, facilitating trade relations and benefiting both nations,” he said.

He added the key point is to encourage substantive cooperation, assist mutual understanding through exhibitions and expos, and foster an understanding of each other’s regulations and economic controls.

Liew said that this year, amid global political and economic uncertainties, there is a strong emphasis on kickstarting economic development.

“Prime Minister Datuk Seri Anwar Ibrahim consistently underscores the importance of economic progress and comprehensive development,” he added.

Source: The Sun

Liew: Malaysia wants to be key destination for high-end manufacturing, services

The government aims to make Malaysia a destination for high-end manufacturing and services to attract more foreign direct investments and domestic investments.

Deputy Investment, Trade and Industry Minister, Liew Chin Tong said it is important for investors to be aware that Malaysian factories can produce high-end products, including semiconductors.

It should also be highlighted that the country provides top-tier, high-end services such as legal, environmental and engineering, as well as services for regional headquarters, he said.

Speaking to reporters after an event to promote the 7th China International Import Expo (CIIE), he said Malaysian companies should participate in more international exhibitions as part of efforts to highlight Malaysian capabilities.

“Events like CIIE provide a platform for Malaysian entrepreneurs to engage with Chinese businesses, facilitating trade relations to the benefit of both nations,” said Liew.

He added that the key point is to encourage substantive cooperation, assist mutual understanding through exhibitions and expos, and foster an understanding of each other’s regulations and economic controls.

In his speech earlier, Liew also emphasised the need for greater integration between government and private entities in the context of high-end manufacturing and services.

“Our responsibility is to improve Malaysia’s regulations and propose initiatives that create a positive impact on Malaysia-China businesses, focusing on high-end manufacturing and services within the policy and legal frameworks,” he added.

The 7th CIIE will be held in Shanghai, China in November this year.

Source: Bernama

Government aims to make Malaysia high-end manufacturing, services destination

HSBC Malaysia anticipates the local electrical and electronics (E&E), domestic consumption and tourism sectors to drive the local economy’s gross domestic product (GDP) to grow to 4.5%, higher compared with 2023.

Global private banking and wealth (Southeast Asia and India) chief investment officer James Cheo (pic) reckoned that Malaysia’s GDP grew to around 3.8% last year and expects the growth momentum to continue this year.

He said the local economy is expected to remain healthy in 2024, underpinned by resilient consumer and investment spending. At the same time, he also said that the positive fillip for the economy will come from the nascent recovery of the global electronic cycle and the resumption of global tourism travel.

“The external environment looks a little bit better, there’s improvement in the global electronics cycle … the pick up in electronic cycles is still in early days. Nevertheless, I think that will play out in 2024, it will benefit Malaysia, (driving its) electronic exports.

“Domestic consumption is always quite strong in Malaysia, that’s always a pillar of growth, it will continue to be robust. With inflation starting to stabilise, hopefully it will put more money in the hands of consumers to spend more,” Cheo said during HSBC’s wealth and investment outlook briefing for the first half of 2004 yesterday.

He added that the Malaysian tourism sector would likely expand this year. In Asean, he reckoned that compared with other countries within the region, Malaysia is “capturing the lion’s share, in terms of tourists, especially from China, which is actually very positive”.

“While we might not see that recovery of Chinese tourists pre-pandemic, but it will still be an improvement compared to last year. Putting all these together, we expect Malaysia to grow by about 4.5% which is respectable and quite solid …. from that perspective, its going to be positive,” said Cheo.

Furthermore, HSBC expects Bank Negara Malaysia to keep its policy rate at 3% for the rest of the year.

“We forecast the ringgit to stay stable at RM4.55 against the US dollar by the end of 2024,” he said.

On supply chain reconfiguration, Cheo said geopolitical tensions, trade fragmentation and technology restrictions are accelerating global supply chain diversification across the region.

In order to mitigate geopolitical risks and alleviate the impact of trade tariffs, western multinational corporates have implemented the “China+1 strategy” by building new production facilities in India and Asean to supplement their supply chain in China, he said.

“The whole trend of supply chain reorientation works very well for Malaysia as global investors or global multinationals start to think about the entire Asean as a whole consumer market. Ultimately, the Asean economies are linked together to the Regional Comprehensive Economic Partnership.

“Malaysia has (various) strengths, such as its semiconductor production and commodities markets. So there is a fairly strong proposition, as investors consider investing in Malaysia. Overall, it should be a good year for the Malaysian economy,” Cheo said.

He said HSBC it sees promising secular growth opportunities in India and Asean, driven by structural tailwinds from strong foreign and domestic private investments, young demographics, technology boom and green transformation.

“India has consistently delivered stronger-than-expected growth in manufacturing and service activities throughout 2023, with strong foreign direct investment inflows and booming services exports powering employment, private consumption and productivity gains.

“Forty per cent of the world’s global capability centres are in India, offering a strong boost to the country’s service exports and the job market,” he added.

Cheo said Indonesia offers solid growth and is one of the more favourable investment stories in Asia, supported by its large, young and growing population with rapid urbanisation as well as robust private consumption as its key growth engine.

”Indonesia further benefits from upgrading of its manufacturing value chain. The country’s abundant reserves of green minerals and metals are vital inputs for the electrical vehicle and battery industries,” he added.

Source: The Sun

E&E, local consumption, tourism to lift M’sian GDP growth in 2024 to 4.5%: HSBC

Japanese foreign direct investment (FDI) has played a pivotal role in Malaysia’s economic success with 2,778 manufacturing projects worth a total of RM91.89 billion implemented as of June 2023.

Grant Thornton Malaysia PLT Specialist Japanese coordinating director Toshihiko Takagi said the positive impact for Malaysia includes job creation, technology transfer and infrastructure development.

“Japan needs to grow together with other countries as it is currently experiencing a low birthrate and an ageing population. Malaysia has a high GDP (gross domestic product) growth rate of 8.7% in 2022, making it a leading investment destination,” he told SunBiz in an exclusive interview.

Currently, he said, there are 1,602 Japanese companies in Malaysia, comprising 764 manufacturing firms, primarily specialising in electrical and electronic product manufacturing.

“Toyota cars established UMW Toyota Motor with UMW Holdings and others in 1982. In addition, Daihatsu Motor, a subsidiary of Toyota, operates Perodua. Perodua employs about 11,500 employees and 70,000 people in total at suppliers and authorised dealers.

“As a retail company, Malaysian people are also familiar with Aeon. It has over 17,000 employees and the Aeon group consists of many stores including 34 merchandise stores, and 28 Aeon Malls,” he said.

Takagi said the bilateral relationships forged have played an important role in supporting Malaysia, particularly in areas such as employment and the development of living infrastructure.

He said Malaysia is an attractive destination for Japanese investment due to among others its political stability, robust legal and regulatory frameworks, access to skilled labour, and market potential.

“As mentioned, Malaysia has a high GDP growth rate of 8.7% in 2022. The market is expected to grow as the middle-income group is increasing,” he added.

Additionally, Takagi said the level of education in Malaysia is high, and the quality of human resources is considered to be excellent, making it easier to attract talented people in technical fields.

“Malaysia has an advanced logistics environment. In particular, Kuala Lumpur, with its concentration of airports, ports and railways, is strongly positioned as a logistics hub in the Asia-Pacific region, making it a very attractive environment for manufacturing and logistics companies,” he added.

Notably, the Johor Singapore Special Economic Zone (JS-SEZ) announced recently will be attractive for foreign companies, Takagi said.

“Detailed information on this is not available, but it is hoped that the system will be attractive to foreign companies, including Japanese companies,” he added.

He mentioned specific industries that are particularly attractive to Japanese investors and how they align with the country’s development goals and comparative advantages.

“In Japan, AI and IoT are considered major investment opportunities. In Malaysia, industry4WRD has been announced and the environment is conducive to cooperation and growth with Japan.

“One example is Hitachi’s acquisition of a Malaysian company for AI and SaaS to expand our IoT business in 2020. Further companies are expected in the form of collaboration, JV and M&A,” said Takagi.

He said Malaysia offers incentives such as pioneer status, investment tax allowance and the upcoming Global Services Hub Tax perk (which offers companies that establish global service centres in Malaysia a reduced income tax rate for up to 10 years).

The Principal Hub (Global Services Hub tax incentive after 2024), he remarked, is likely to become even more attractive in the future as Asean is expected to grow.

Malaysian Investment Development Authority’s presence in Tokyo and Osaka also provides support for Japanese businesses, said Takagi.

Furthermore, he added, Malaysia addresses sustainable and responsible investment, including environmental considerations, social impact, and corporate governance practices which aligns with Japan.

“Disclosure of sustainability information became mandatory in Japan on 31 January 2023. Listed companies are required to disclose proactively, and sustainability has become an extremely important issue in terms of dealing with business partners and securing human resources,” Takagi said.

Source: The Sun

Japan FDI plays pivotal role in Malaysia’s economic success: Grant Thornton

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has called upon Sarawakians to actively enhance their skills so as to work together with the investors, both local and international.

According to him, Sarawak presents a plethora of opportunities for supply chain collaboration and the state’s diverse resources provide a fertile ground for mutually beneficial partnerships.

Therefore, he highlights the importance of technology transfer, aimed at ensuring that the local expertise would be bolstered through shared knowledge.

“As we extend a warm welcome to OCIM and other investors in Sarawak, it’s imperative for Sarawakians to exert diligent efforts.

“As the host country, we must enhance our skills, facilitating collaborative efforts with overseas guests investing in Sarawak, and perhaps, even delve into learning and appreciating their cultures.

“Tonight, we have the opportunity to observe the convergence of cultures between Koreans and Sarawakians. A meaningful cultural exchange is essential for broadening our understanding beyond borders and fostering teamwork as a unified team,” he said in his keynote address for the Malaysia Korea Charity Gala Night at Damai Lagoon Resort near here last Saturday.

Commending the joint organisers, Sarawak Economic Development Corporation (SEDC) through the Sarawak Cultural Village (SCV) and OCIM Sdn Bhd, Abang Johari acknowledged their efforts being meant for a noble cause.

“I understand all the proceeds will go to charity organisations, and I appreciate the collaboration to help the less-fortunate groups.

“That should be our approach — investment with a focus on good ROI (return of investment), but simultaneously playing a part to help the less-fortunate groups.

“Thank you, and I hope you’d make more money,” he added.

The event’s objective was to raise funds for Yayasan Ilmu Sarawak, a foundation dedicated to knowledge advancements, and the ‘Green Generation’ initiative for a sustainable future.

Additionally, it also meant to support Perkata Sarawak, an organisation focusing on enhancing the care and wellbeing of mentally and physically challenged children and their families.

Among the distinguished guests were Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah and his deputy Datuk Sebastian Ting; Minister for Women, Childhood and Community Wellbeing Development Dato Sri Fatimah Abdullah; former deputy chief minister Tan Sri Datuk Patinggi Dr George Chan; SEDC chairman Tan Sri Datuk Amar Abdul Aziz Husain; OCIM Sdn Bhd chairman Lee Woohyun; and event coorganisers Puan Sri Datin Amar Nur Ashima Aziz and Dr Kim Sooyeon.

Source: Borneo Post

Enhance skills, capitalise on investments, Sarawakians urged

Malaysia’s southernmost state of Johor, particularly its capital city of Johor Bahru, has emerged as a burgeoning hub of economic activity and investment potential. As part of the Iskandar Malaysia economic corridor, Johor Bahru is strategically positioned to capitalise on its proximity to Singapore, Southeast Asia’s financial and trade powerhouse. This strategic location, coupled with Malaysia’s favourable business environment, has attracted a surge of investments in recent years, transforming Johor Bahru into a dynamic and promising investment destination.

UNVEILING THE POTENTIAL: A Glimpse into the Future

Johor Bahru’s investment potential is underpinned by its diverse and thriving economic sectors. The city is home to a burgeoning manufacturing industry, with multinational corporations such as LEGO, Dyson, and Hershey establishing significant operations. The logistics and warehousing sector is also experiencing rapid growth, driven by the increasing demand for supply chain optimisation and regional trade.

Johor Bahru’s development and growth trajectory is further fuelled by several ongoing and planned infrastructure projects. Such as the Johor-Singapore Rapid Transit System (RTS Link) whose completion in 2026 will significantly enhance connectivity between Johor Bahru and Singapore, facilitating cross-border trade, tourism, and investment.

THE SINGAPORE FACTOR: A Flourishing Tourism Sector and Spillover Effects

Singapore’s tourism industry is also a significant factor in Johor Bahru’s growth. As the city state becomes increasingly crowded and expensive, many tourists are opting to stay in Johor Bahru and visit Singapore for day trips. This trend is expected to continue, further boosting the tourism sector in Johor Bahru which in 2019, Johor Bahru recorded over 30 million tourist arrivals, generating over RM15 billion in revenue. Thus making tourism a key driver of growth.

Moreover, Johor Bahru’s strategic location, just across the causeway from Singapore, presents a significant advantage for investors. The city serves as a gateway to Singapore’s bustling economy, providing access to a vast pool of talent, a strong financial infrastructure, and a well-established business ecosystem. This proximity to Singapore, coupled with Malaysia’s lower costs of living and doing business, creates an attractive proposition for companies seeking to expand their operations in the region.

INVEST IN APARTHOTEL PROPERTIES: A Lucrative Opportunity

Aparthotel properties offer a compelling investment opportunity in Johor Bahru. These properties combine the amenities and services of a hotel with the longer-term stay convenience of an apartment, catering to a diverse range of guests, including business travellers, families, and long-term visitors.

Quayside JBCC, operated by Ascott Group’s Oakwood brand, is a prime example of an Aparthotel property in Johor Bahru. Located in the heart of the city’s historic quarter that is nestled in the vibrant waterfront district, Quayside JBCC offers luxurious accommodations, state-of-the-art amenities, and a range of personalised services. All housed within a mixed development that includes retail spaces, a four star international hotel and the Oakwood Aparthotel.

Investing in Aparthotel properties like Quayside JBCC offers investors several advantages:

Strong Demand

Aparthotels are well-positioned to cater to the growing demand for short-term and long-term accommodation in Johor Bahru, driven by the city’s expanding tourism and business sectors.

Diversified Income Stream

Aparthotels generate income from both short-term rentals and longer-term leases, providing investors with a diversified income stream.

Resilient Asset Class

Aparthotels offer a degree of resilience in fluctuating market conditions, as they cater to a wider range of guests covmpared to traditional hotels.

Professional Management

Reputable Aparthotel operators like Ascott Group provide professional management services, ensuring that properties are maintained to the highest standards and that guests receive exceptional service. Thus ensuring a steady and regular income stream.

Aparthotel properties like Quayside JBCC offers investors a lucrative opportunity to participate early in the city’s growth and reap the benefits of its capital growth arising not just from tourism and digital nomads but also from the state’s dynamic and growing manufacturing sector that is bringing an influx of state senior executives and expatriates to Johor.

Source: The Edge Malaysia

A Gateway to Investment Opportunities in Malaysia’s New Southern Nucleus

Malaysia is well-positioned to reap significant benefits from the opportunities arising from the global economic shift, said HSBC Bank Malaysia Bhd (HSBC Malaysia) at the recent HSBC Asian Business Forum.

In a statement on Friday, HSBC Malaysia said organisations must prepare for growth and expansion and step up future-proofing measures to boost competitiveness in 2024.

Its chief executive officer, Datuk Omar Siddiq, said the Asia continues to offer prospects for long-term growth driven by sustained foreign direct investment, a rapidly growing consumer base, and opportunities in the complex manufacturing and services industries.

He added that a good portion of the growth was powered by Asean, which is becoming increasingly significant in the face of several trends, such as the reorientation of supply chains, the rapid acceleration of digitisation, and the fight against the threat of climate change.

“And positioned in the epicentre of several of these trends is Malaysia, which continues to be a top 25 trading nation with substantial investment potential and has long established itself as a prime destination for companies seeking to grow regionally,”  he said.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong officiated the bank’s annual flagship event.

Liew said three factors were critical to Malaysia’s economic growth, namely the nation’s strategic location, pushing its labour out of the middle-income trap and across the high-income threshold and thirdly, focusing on higher growth areas.

HSBC Global Research has recently raised its growth forecast for Malaysia to 4.1% from its previous estimate of 3.8% for 2023. However, it retained its 2024 forecast at 4.5%, accounting for the better outturn in the third quarter and a gradual uplift in the trade cycle.

The bank said that reviving private investment is essential to Malaysia’s continued growth.

“Foreign and domestic direct investment was required to boost exports, generate jobs and promote economic growth,” it said.

HSBC Malaysia said that achieving this would require businesses in the country to make significant investments for expansion, enhance connectivity to fortify ties with other trading partners and pursue more opportunities.

“Companies should consider investing in high-value-added technology, which may include artificial intelligence, big data analytics, and robotics. At the same time, it would also be crucial for companies to reinvent their workforce,” it added.

Source: Bernama

Malaysia well-positioned to reap significant benefits from global economic shift — HSBC Malaysia

Malaysia is a shining star with a strong economic performance and a unique set of challenges, according to the Japan External Trade Organisation (Jetro).

In Jetro’s survey, called the “Business Conditions of Japanese Companies Operating Overseas in Asia and Oceania” for the financial year 2023 (FY2023), Malaysia stood out among major ASEAN countries as the only nation experiencing a consistent increase in operating surplus.

“The forecast for FY2023 reveals an impressive 67.9 per cent operating surplus, marking a steady climb from 59.7 per cent in FY2021 and 63.0 per cent in FY2022.

“The improved percentage for FY2023 is 34.2 per cent, with expectations of further enhancement in 2024,” the survey said.

It also found that over half of Malaysian companies (50.2 per cent) are considering business expansion, surpassing the 50 per cent mark for the first time in five years.

Jetro said the respondents expressed interest not only in expanding sales but also in the production of high-value-added products and investing in research and development.

“Malaysia’s investment environment is lauded for its ease of communication, with 80 per cent of companies highlighting the absence of language barriers,” it said.

However, risks are centred around human resources, including escalating labour costs, high turnover rates, labour shortages, and recruitment challenges.

“More than 60 per cent of ASEAN countries, with Malaysia leading at 63.5 per cent, face a severe shortage of human resources, particularly professionals and factory workers.

“Malaysian companies are actively automating production lines, showcasing the nation’s top rank in automation efforts and interest in automation within ASEAN,” Jetro reported.

Meanwhile, Malaysia exhibited a growing commitment to environmental, social, and governance (ESG) practices, with 45.4 per cent of companies undertaking decarbonisation initiatives.

“Human rights issues are recognised as a management challenge by a staggering 85.7 per cent of companies, ranking Malaysia first among major ASEAN countries for the third consecutive year,” it stated.

Market development strategies are evolving, with a shift towards local companies for business-to-business (B2B) targets and the upper class for Business-toconsumer (B2C).

The challenges include the small market size, difficulties in government and industry connections, and designing effective marketing campaigns due to ethnic diversity.

The survey noted that Malaysia’s economic landscape showcases remarkable growth in operating profits and a positive inclination towards business expansion and ESG practices.

However, the nation grapples with intricate challenges in human resources and market development unique to its diverse environment.

Source: Bernama

Malaysia shines with strong economic performance, unique set of challenges – Jetro

Selangor’s strategic emphasis on artificial intelligence (AI), particularly through the implementation of its AI Nusantara programme, positions the state, and Malaysia as a whole, as an appealing destination for foreign investors. 

State executive councillor for investment, trade and mobility Ng Sze Han said the programme, which prepares students for the digital future through AI and machine learning education, is crucial in producing a skilled workforce capable of meeting current market demand. 

In return, he said this will attract more foreign direct investments (FDI) into the country. 

Ng said this is also why it is vital for the state to invest in AI technology, which stands as a cornerstone to economic development. 

“AI Nusantara serves to bolster the workforce and enhance expertise, focusing on key areas crucial for FDI,” he said in his speech at the Selangor Digital School’s (SDS) AI Nusantara graduation ceremony at DoubleTree by Hilton Shah Alam i-City, here, today. 

“Notably, it places a strong emphasis on cultivating skills relevant to smart cities and smart mobility, particularly in industries such as electric vehicles and batteries.  

“This strategic emphasis positions Malaysia as an enticing destination for foreign investors seeking to capitalise on advancements in these sectors. Undoubtedly, the existence of a skilled workforce emerges as a pivotal factor in the allure of FDI.” 

AI Nusantara is a comprehensive one-month training and placement initiative by SDS, combining theoretical knowledge with practical application, providing students with the tools to create and develop using AI technology.

It is designed to address the shortage of workforce in the field of AI, particularly in digital marketing and prompt engineering.

Ng said to date, SDS has established collaborations with 55 companies associated with the Internet Alliance — a not for profit association representing Malaysia’s major pool of internet service and ‘middleware’ infrastructure providers — and 50 companies within the Selangor Information Technology and Digital Economy Corporation cooperation network. 

“A total of 105 industry partners have expressed interest in welcoming students who have undergone training in AI,” he said, adding that these companies include Yinson Holdings Bhd, Lazada, Fusionex Group, EasyStore, Razer Merchant Services, and ClickAsia. 

“As we embrace this technological evolution, we concurrently unlock doors to fresh prospects for our local entrepreneurs, create a magnet for investment opportunities, and foster the influx of skilled talent in the realm of AI technology to the heart of Selangor.”

Source: Selangor Journal

Selangor’s focus on AI a draw for foreign investors, says exco

The Johor-Singapore Special Economic Zone (JSSEZ) will be the game changer for Malaysia in the long run, creating opportunities for increased cross-border labour activities and investment flows between the two economies.

Singapore, facing a shortage of labour, heavily relies on foreign workers and with ample savings and capital, Singapore is expected to channel investments into Johor, benefitting both nations in the long term.

Asean+3 Macroeconomic Research Office (AMRO) chief economist Hoe Ee Khor said Singapore is a labour-constrained economy and depends very much on foreign workers.

“While Singapore has a lot of savings and capital, Malaysia will benefit from investment flowing from Singapore into Johor. These will be a long-term boost for both economies,” he told a virtual media briefing during AMRO’s January quarterly update of the Asean+3 Regional Economic Outlook.

Malaysia and Singapore signed a Memorandum of Understanding on January 11, 2024 to work on a JSSEZ to strengthen economic connectivity between Johor and Singapore.

Maybank Investment Bank in its research note said that the JSSEZ will target sectors related to electronics, financial services, business-related services and healthcare.

Both countries will work towards a full-fledged agreement and provide an update at the 11th Malaysia-Singapore Leaders’ Retreat, probably in the second half of 2024, it added.

Elsewhere, Malaysia and Singapore will also work on several initiatives that build towards the JSSEZ.

Although the area which will be designated under JSSEZ remains unknown, Maybank IB suggests that it could be located at Sedenak and/or Iskandar Puteri areas.

There is even a possibility that the JSSEZ could involve the whole Iskandar Malaysia region that spans 4,749km2 covering Johor Bahru, Kulai, Iskandar Puteri, Pasir Gudang and part of Pontian.

This development is seen as a move towards leveling the playing field for all landowners in these regions.

Source: NST

AMRO: Johor-Singapore Economic Zone to be game changer for Malaysia in the long run

The Investment, Trade and Industry (Miti) secured a total of RM2.84 billion in potential investment and RM500 million of potential exports of Malaysian products and services from the trade and investment mission to Milan and Turin, Italy, from January 12 to 16.

In a statement, the ministry said Minister Tengku Datuk Seri Zafrul Aziz, who led the mission, met with renowned Italian companies in the automotive, aerospace, semiconductors, food, biofuel, as well as machinery and equipment sectors and achieved significant milestones in fostering economic ties, as well as attracting potential investments and trade.

Notable companies included STMicroelectronics, EDA Industries as well as Leonardo’s Helicopter and Aircraft Divisions, it said.

“During the closed-door one-to-one meetings, these companies highlighted their investment plans in Malaysia and showcased their commitment to explore new areas of growth for knowledge transfer and the creation of high-value jobs in the country.

“The mission also featured visits to both Leonardo Helicopter and Aircraft Divisions’ facilities in Milan and Turin, respectively.

“The global player in the aerospace industry expressed its keen interest to explore new ventures in Malaysia to support its future regional operations,” said the ministry.

According to Miti, in terms of export potential, Tengku Zafrul also met with Fererro International S.A, a leading food company in the production of chocolate and cocoa-based foods; and ENI Trade and Biofuels S.p.A, a subsidiary of ENI S.p.A which is one of the largest petroleum and gas companies in Italy.

Meanwhile, Tengku Zafrul said the partnerships forged will also contribute significantly to Malaysia’s journey towards becoming a regional hub for advanced technologies and innovation.

“The outcomes of the mission reflect our commitment to enhancing Malaysia’s position in the global supply chain.

“Miti and its agencies, Malaysian Investment Development Authority (Mida) and Malaysia External Trade Development Corporation (Matrade) will ensure the successful realisation of these potential investments and exports, which are key towards fostering sustainable economic growth in Malaysia, as envisaged by the New Industrial Master Plan (NIMP) 2030,” he said.

Source: Bernama

Ministry secures RM2.84bln potential investment from mission to Italy