Minister in the Prime Minister’s Department Dr Zaliha Mustafa said that at least 32 investors, foreign and local from diverse industrial sectors have expressed keen interest in investing in this duty-free island.

“The investors hail from China, Korea, and Malaysia,” she shared in an exclusive interview with Bernama, marking her first year as Minister overseeing federal territories.

Dr Zaliha said her recent visit to China aimed to explore business opportunities for Labuan.

“As of today, at least 32 companies from China, Korea, and Malaysia have shown interest in investing here,” she said.

While the Federal Territories Department oversees the development of Labuan, Putrajaya, and Kuala Lumpur, Dr Zaliha pointed out that it lacks a dedicated investment arm and instead relies on InvestKL to facilitate investment discussions.

“We are collaborating closely with the Ministry of Investment, Trade, and Industry, which has assured their support. Future investments in Labuan will be linked through InvestKL for seamless handling,” Dr. Zaliha said.

Addressing critical infrastructure needs, Dr Zaliha emphasised the importance of reliable water and power supply to build investor confidence.

“Ensuring a stable supply of these essential services is crucial. We also support proposals to expand the manufacturing sector in Labuan, as it will boost economic activity, increase exports, and create jobs for locals,” she added.

Dr Zaliha noted the need to diversify beyond the traditional oil and gas and financial sectors, which have long been the pillars of Labuan’s economy.

“The over-reliance on these sectors is a common concern among Labuan’s residents. We are open to exploring sustainable industries that can create employment and stimulate local businesses,” she added.

Source: Bernama

Labuan attracts interest from 32 investors across key sectors, says Dr Zaliha

Bilateral trade between Malaysia and South Korea until November has hit RM100.6 billion, mainly in the electrical and electronics (E&E) sector, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said there are 400 registered South Korean companies that are currently investing in Malaysia, with Korean companies having employed more than 50,000 Malaysians in the country from 1980 until September this year.

The minister said this in his speech during the opening ceremony of Ediya Coffee’s first store in Malaysia at the Elmina Lakeside Mall here.

Commenting on the Korean-brand coffee outlet, Tengku Zafrul said Ediya Coffee plans to open 300 stores in Malaysia within three to five years. “(But) I think what is important are the opportunities that it creates. We have talked about job opportunities, upskilling opportunities for the young and strengthening the franchise industry in Malaysia,“ he added.

Meanwhile, Ediya Coffee Services Sdn Bhd chief executive officer Mohd Hafiz Ab Rahim said the company plans to open 50 branches throughout Malaysia next year. Ediya Coffee is a leading coffee chain in South Korea that was founded in 2001 and currently has more than 4,000 branches in South Korea.

Source: Bernama

Bilateral trade between Malaysia, South Korea hits RM100.6b as of November – Tengku Zafrul

Malaysia is expected to record continued robust economic growth in 2025, driven primarily by advancements in its digital economy, manufacturing, and construction sectors.

The latest insights from Randstad Malaysia’s 2025 Job Market Outlook and Salary Trends Report underscore the increasing demand for skilled professionals, as companies expand operations and investments within the country.

Randstad Malaysia country director Fahad Naheem said demand for talent with specialised skills is on the rise as businesses grow. 

“We’re seeing a significant need for skilled professionals proficient in technologies such as artificial intelligence (AI), data analytics, and digital infrastructure. Additionally, digital integration is happening in corporate sectors, including legal, human resources, shared services, marketing, and accounting. 

“With these developments, employers are raising their hiring expectations, particularly in digital literacy and commercial acumen,” he said. 

A recent survey by Randstad Malaysia revealed that 59 per cent of employers plan to expand their teams in 2025, while 31 per cent will focus on maintaining their current headcount. 

It also stated that 41 per cent of employers expect the most hiring activity in technology, and 26 per cent of respondents plan to invest in hiring professionals for digital transformation and AI roles. 

In addition to digital growth driving tech-related hiring, 36 per cent of employers anticipate hiring sales and business development professionals to drive revenue growth. 

“We are also seeing traditional corporate functions like marketing and human resources taking on more commercial responsibilities, either to optimise resources or establish clearer revenue generation targets.”

However, 56 per cent of employers cited a lack of skilled talent as their top hiring challenge. 

Many organisations are also grappling with rising salary expectations amid tighter budgets.

In response, 52 per cent of companies in Malaysia plan to increase their hiring budgets in 2025, recognising that candidates with in-demand skills now have greater leverage during negotiations.

“As we look ahead to 2025, employers will likely face stiffer competition when hiring top talent in Malaysia. Many organisations are in growth mode and investing in recruitment and workforce development to boost productivity and drive higher revenue growth. 

“With our access to a large pool of pre-screened professional talent and deep understanding of workforce trends, we’re committed to helping employers find the right talent—one that values lifelong learning, agility, and adaptability,’ added Naheem.

Source: NST

Strong economic growth for 2025, led by digital economy, manufacturing, and construction

Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction (ECRL) Sdn Bhd (CCCECRL) today created an operating company (OpCo) with a 50:50 interest ratio for the purpose of operating and maintaining the East Coast Rail Link (ECRL) project.

The matter was agreed at the signing ceremony of the joint venture agreement between MRL and CCCECRL for the operation and maintenance of the ECRL rail network here.

It was witnessed by Transport Minister Anthony Loke and Chinese Ambassador to Malaysia Ouyang Yujing.

In his speech at the event, Loke said the joint venture agreement allows both parties to share costs for ECRL operations as well as facilitate the exchange of technical knowledge and expertise.

“MRL and CCCECRL will each bear 50 per cent of the risk in OpCo if ECRL operates with a deficit.

“MRL will fully own ECRL’s assets on behalf of the Malaysian government throughout the operational phase of ECRL to ensure that national interests are protected at all times and enable local empowerment in this national infrastructure,“ he said.

MRL is the owner of the ECRL project while China Communications Construction Co Ltd (CCCC) is responsible as the engineering, procurement, construction and operation contractor (EPCC).

At the beginning of this year, the Cabinet gave the green light to the establishment of an OpCo for the purpose of operating and maintaining the ECRL which also has the potential to ease the government’s financial burden.

He said the joint venture agreement drives the direction of national infrastructure in strengthening modern, efficient and environmentally friendly transport services for the well-being of the people and increasing the competitiveness of the national economy.

“This agreement is in line with the government’s desire to empower the country’s rail sector to increase train services and open up job opportunities for the youth, especially related to engineering in the industrial and locomotive sectors,“ he said.

Loke said the ECRL project has reached a proud overall level of progress, which is 76.06 per cent as of November 2024.

“This progress is within the ECRL project target for this year and is on track with the schedule for the completion of the first phase line from Kota Bharu to the Gombak Integrated Terminal in December 2026, and the second phase line between Gombak and Port Klang by December 2027,“ he said.

On whether the ECRL project will be extended to Thailand, Loke said he hoped the project could be connected to the country in question.

“We hope that it can be linked to Thailand. It already reached Kota Bharu. So it’s just 20km away from the Malaysian-Thai border in Rantau Panjang.

“So eventually, of course, our hope as far as the Ministry of Transport is concerned, we want to link it to Thailand. Because that will then link it to the entire Thailand railway network,” he added.

The 665 km long ECRL project involves 59 tunnels and construction works covering Kelantan, Terengganu, Pahang and Selangor.

The joint venture agreement was signed today by MRL chief executive officer Datuk Seri Darwis Abdul Razak and CCCECRL managing director Kong Qi.

Also present was Chief Secretary Tan Sri Shamsul Azri Abu Bakar who is also the chairman of the board of directors of MRL.

Source: Bernama

MRL, CCCECRL jointly operate and maintain ECRL project

Only 1.6% of approved investment projects from 2021 to March 2024 have not been implemented, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In a post on Instagram and X, previously Twitter, he said on Tuesday that 98.4% of the investment projects have either been completed, are work-in-progress, or are in their planning stage.

“What does this statistic mean? It means that once an investment is approved, it’s as good as done — it is just waiting to be implemented. Rarely, an approved investment is not carried out.

“Approved investments mean the companies’ applications to invest in Malaysia have been approved by the Malaysian Investment Development Authority (MIDA),“ he said.

He emphasised that memoranda of understanding (MoUs) are not considered approved investments.

“Applications from companies to carry out business activities are approved under the Industrial Co-ordination Act 1975. If a company has a shareholder capital of at least RM2.5 million or employs at least 75 full-time workers, it must first apply for a manufacturing licence,“ he explained.

Tengku Zafrul also said companies need to submit company details, the industry it is involved in, project location, products produced, its implementation period, annual costs, and shareholder details to MIDA.

“Additionally, applications to invest in Malaysia also require information on the number of jobs to be created, and the percentage of workers in management, technical, and skilled worker categories.

“We want to create high-paying jobs for the people. If the majority of workers are unskilled, how will Malaysia progress in the long term?” he added.

Tengku Zafrul emphasised the importance for companies intending to invest in Malaysia to declare their sources of raw materials and components used in the production of their main products or projects.

“We are a country that encourages the use of locally produced components. Why? Because when new factories use local components, existing local companies can raise output.

“Additionally, new companies can be established to meet the needs of these factories. Only in this way can our country’s ecosystem be developed. We also want to know the markets for their products, if they are to be exported or for domestic use. If they are meant to be exported, the country’s national income will rise. Companies must also provide their projected revenue,“ he said.

He said another crucial aspect is research and development (R&D), whereby companies investing in Malaysia must have an R&D component to develop local technology.

“Therefore, the process of approving investments is not as easy as it seems. It must meet all the stipulated aspects before a manufacturing licence is granted. If it is just an MoU submission, the application will not be approved.

“That’s why when certain parties undermine the approved investment data, they do not understand how complicated the process is. Many conditions must be met, and this shows the seriousness of those who truly want to invest in our country,“ he said.

Source: Bernama

Only 1.6% of approved investments have not been implemented between 2021 and March 2024 – Zafrul

MVV City, a planned smart modern city, will help transform Negri Sembilan into a high-income economy poised to attract more foreign and local investors, says Datuk Seri Aminuddin Harun.

The Mentri Besar said the project would also strengthen the foundation for a state that is economically vibrant, socially inclusive, and environmentally sustainable.

“Today, we stand at a pivotal moment in the story of Negri Sembilan, a story defined by resilience, vision and progress,” he said at the groundbreaking ceremony here on Tuesday (Dec 17).

“The development of MVV City is not just a project, it is a bold statement of what we can achieve when vision meets determination and collaboration.

“This remarkable achievement reflects more than infrastructure as it is the embodiment of a shared vision of the Federal Government, the state government and Matrix Concepts Holdings Berhad.

“(It will) fuel a future built on vision, purpose, and boundless possibility,” he added, expressing his appreciation to Putrajaya for its support in bringing the MVV City vision closer to fruition.

Also present were state exco members, NS Corporation chief executive officer Norazhar Musa, Matrix Concepts chairman Datuk Mohamad Haslah Mohamad Amin and its founder and group executive deputy chairman Datuk Seri Lee Tian Hock.

MVV City’s first phase development covering 952ha and with an estimated gross development value of RM15bil will be jointly developed by Matrix Concepts and NS Corporation.

The MVV City spans a total of 3,560ha.

Integrating new technologies and prioritising green energy industries, MVV City will be located within Parcel B (Smart County) of the Malaysian Vision Valley 2.0 (MVV2.0) economic corridor covering 153,411ha (1,534sq km).

With a total gross development value (GDV) of RM2 trillion, MVV 2.0 is divided into six major development parcels.

These are the NS High Tech Industrial Park (Parcel A), Smart County (Parcel B), NS Aerospace Valley (Parcel C), Integrated Maritime Hub and Coastal Corridor (Parcel D), Unmanned Vehicle Valley (Parcel E), and NS Semiconductor Valley (Parcel F).

MVV City will be the first to be developed and serves as the flagship project of MVV 2.0.

Aminuddin said the MVV City project would include several development sectors including housing, commercial and industrial zones, as well as education and innovation centres.

These sectors, he said, would form a resilient ecosystem to face economic challenges and improve quality of life.

“MVV City will be the first integrated city in the MVV 2.0 area which will be built based on sustainable practices and innovative designs, and bring together advanced infrastructure and smart technology to improve everyday life.

“As a rapidly growing ecosystem, MVV City will become the centre of high-tech industrial zones, premium residential areas, dynamic business centers, and world-class educational institutions, especially higher education institutions that will shape future leaders with modern innovation and technology,” he said.

Envisioned as a model city of the future, it will be driven by innovation and a strong commitment to environmental, social and governance (ESG) principles

Aminuddin said the public-private strategic collaboration between NS Corporation and Matrix Concepts has proven to be effective as a catalyst for national development and has brought many benefits to the people and the government.

“Matrix Concepts’ focus on industrial and integrated development, including the building of residential properties will ensure that MVV City will not only spur investment activity but also create equitable opportunities to participate in and benefit from economic growth and development.

“I am confident that based on Matrix Concepts’ excellent track record proven through the success of its Bandar Sri Sendayan flagship project, it will be a solid foundation for MVV City’s growth and success,” he said.

Strategically situated close to airports, sea ports and rail network, MVV City will boast exceptional connectivity.

In his speech, Mohamad Haslah thanked the state government for giving the public-listed company, which was one of the country’s top 10 developers, the mandate for the joint collaboration with NS Corporation.

“Together, we are not only building a city, but a legacy that pulses with life, ambition and boundless possibilities and one that will inspire generations to come.

“The development of MVV City will witness an important milestone in a transformative journey that is not only focused on the construction sector and infrastructure development, but rather shaping the universal future,” he said.

Mohamad Haslah also emphasised that Matrix Concepts, which had a market value of RM660mil when listed on the local bourse in 2013 that grew to almost RM3bil within a decade, was not just into building houses but remained steadfast in creating holistic and sustainable communities.

He said Matrix Concepts, which had experience in a diverse portfolio covering the property development, construction, healthcare, hospitality, and education sectors, aims to drive development towards a more sustainable and innovative future within the MVV.

“This is our commitment to the state government. The success of MVV City will be shaped by our unwavering commitment to the community, our relentless pursuit of excellence and our drive for innovation

“MVV City will be designed to be a dynamic hub where innovation, enterprise and community come together.

“It will offer a developed economic zone in addition to business centers, and educational institutions such as the establishment of Technical and Vocational Education and Training (TVET) facilities,”he said.

He said Matrix Concepts will among others build a 40ha industrial area, a 70ha area for commercial lots and 15,000 residences in the first phase over a 12-year period.

Mohamad Haslah said the Kuala Lumpur-Singapore High-Speed Rail project will also have a stop in the MVV2.0 if the government goes ahead with its construction.

“The development of this infrastructure will witness socio-economic growth and create a dynamic economic cluster along its corridor, in addition to changing the way of living, working and travelling in a more planned way,” he added.

Source: The Star

Bold vision for MVV 2.0 will transform Negri into high-income economy, says MB

Malaysia and Thailand have reaffirmed their commitment to enhance investment and bilateral trade, through the Joint Task Force on Trade and Investment, with a target of US$30 billion by 2027.

Prime Minister Datuk Seri Anwar Ibrahim said that while the target may seem ambitious, the significant economic potential in both Thailand and Malaysia makes it an objective that both countries must work towards.

During a joint press conference with Thailand’s Prime Minister Paetongtarn Shinawatra today, Anwar said the northern provinces in Malaysia need additional focus and investment, similar to the needs of the southern provinces in Thailand.

Paetongtarn is on an official visit to Malaysia from Dec 15-16.

During her official visit, Paetongtarn also saw the exchange of a Memorandum of Understanding (MoU) on rubber between Malaysian Rubber Board director-general Datuk Dr Zairossani Mohd Nor and the Rubber Authority of Thailand’s acting governor Sukatus Tarngwiriyakul.

Paetongtarn said that in terms of economic cooperation, both countries will focus on efforts to trade and invest in border connectivity, the digital economy and tourism.

She also highlighted the potential for cooperation in the rubber and halal industries, which could benefit both nations.

“Additionally, we will work towards the trade target of US$30 billion by 2027. For the border areas, we discussed the need to address the flood problems faced by both countries, and we will continue to work closely to improve border road and rail connectivity to facilitate more trade and people-to-people interactions.

“After the meetings, we witnessed the signing of two important MOUs on rubber and cultural cooperation. I am confident this will strengthen our economic and people-to-people relations,” she added.

Source: Bernama

Malaysia, Thailand reaffirm commitment to enhance bilateral trade & investment, targeting US$30b by 2027

Malaysia and Thailand have agreed to strengthen their economic collaborations, encompassing the rubber, tourism, halal and digital industries, the energy grid and gas supply, as well as in border management.

In a joint statement released by the Ministry of Foreign Affairs today, Prime Ministers Datuk Seri Anwar Ibrahim and Paetongtarn Shinawatra encouraged relevant authorities of both countries to explore deeper cooperation through the Memorandum of Understanding (MoU) between Digital Economy Promotion Agency of Thailand and Malaysia Digital Economy Corporation signed in 2023.

According to the statement, this is to create a conducive environment that attracts angel investors to support potential technology companies in both countries.

The two Prime Ministers also welcomed further discussion by officials from both countries on the ‘Six Countries, One Destination’ scheme proposed by Thailand.

“On a similar note, both countries agreed to explore potential joint campaigns to co-promote Visit Malaysia 2026 and Amazing Thailand Grand Tourism Year 2025 initiatives, expressing support for each other’s tourism campaign,“ it said.

Both leaders have also agreed to develop a greater complementarity of the industry in both countries, in cognisant of the fact that the global Halal economy may reach US$5 trillion by 2030.

“This includes the continuation of joint export promotional activities on Halal goods and services; the exchanges of best practices and business know-how; research and development of Halal products as well as more active collaboration involving Malaysian and Thai public and private sectors.

“Malaysia is open to supporting Thai officials in developing a local Halal ecosystem by offering courses under the Malaysian Technical Cooperation Programme. This initiative would provide an opportunity for Thailand to gain insights into Halal standards and practices while helping to strengthen its Halal sector,“ the statement said.

Both leaders also commended the progress in cross-border infrastructure development projects that aim to promote connectivity between both countries, and called on the relevant agencies from both Malaysia and Thailand to ensure the timely completion of the projects.

“Both sides acknowledged the importance of the Bukit Kayu Hitam-Sadao checkpoints as the busiest and largest economic, tourism and transport gateway between Malaysia and Thailand.

“As such, the Prime Ministers called on the relevant agencies to accelerate the construction progress of the road linking the Immigration, Customs, Quarantine, and Security (ICQS) Complex in Bukit Kayu Hitam and the Sadao Customs, Immigration and Quarantine (CIQ) Complex according to each country’s respective timeline so that the cross-border flow of goods and passengers can be further enhanced.”

The Prime Ministers also encouraged authorities to expedite the possible cooperation to link the Special Border Economic Zones (SBEZs) between Malaysia and Thailand, particularly the Bukit Kayu Hitam SBEZ in Kedah; the Chuping Valley Industrial Area in Perlis; the Pasir Mas Halal Park in Kelantan; and the Special Economic Zone (SEZ) in the Southern Industrial Estate in Songkhla and the SEZ in Narathiwat.

“The two Prime Ministers are pleased with the ongoing cooperation through the Malaysia-Thailand Joint Development Area (MTJDA), which continues to guarantee a healthy supply of gas sales to Malaysia and Thailand and provide a positive impact on livelihoods through job opportunities and spurring the local economy.

“Thailand also expressed its appreciation to Malaysia for the support during the gas supply shortage in 2023, which helped to ensure Thailand’s energy security,“ said the statement.

In addition, both Prime Ministers reaffirmed their support of the existing energy cooperation and initiatives, which are central to the shared vision of a more integrated, sustainable and secure energy future for the region, including under the ASEAN Power Grid Initiative.

To promote greater linkages as well as increase cross-border flows of goods and passengers between Malaysia and Thailand, as well as the overall region, the Prime Ministers have entrusted relevant agencies to accelerate the progress on the proposed integrated double-track rail link between Ipoh-Padang Besar and Padang Besar-Hat Yai, and the high-speed rail alignment in both countries.

“Both Prime Ministers concurred that the facilitation of road- and rail-based movement of goods and passengers is paramount to the increasing of bilateral trade volume between Malaysia and Thailand as well as achieving ASEAN regional integration.

“In this regard, they urged the relevant agencies on both sides to expedite the negotiations on the MOUs on the cross-border transportation of goods and passengers,“ the statement said.

Concurrently, both sides agreed to facilitate permit requirements for plant-based goods transiting through Thailand via the ASEAN Express freight train service between Malaysia and China.

Source: Bernama

Malaysia-Thai to deepen border, halal, tourism, digital, energy, gas supply collaborations

The East Coast Rail Line (ECRL) project has achieved 76.06% progress as of November, Malaysia Rail Link (MRL) Sdn Bhd chief executive officer Datuk Seri Darwis Abdul Razak said.

The progress was on track to ensure that the project will be completed in December 2026 for the Kota Bharu to Gombak Integrated Terminal and then to Jalan Kastam in December 2027, he added.

“As such, Pahang specifically, has recorded significant progress with 78.82% work progress as of November 2024.

“ECRL is a high-impact project that will connect industrial parks, ports, major cities and tourism zones in addition to improving connectivity with the present rail network in Peninsular Malaysia,” he said at the signing of a memorandum of understanding (MOU) between UCYP University and MRL Sdn Bhd here on Monday by Darwish and UCYP University vice-chancellor Prof Datuk Dr Muhammad Fauzi Mohd Zain, witnessed by Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail.

Darwis said that the ECRL project will enter the preparation for operation phase and it is estimated that nearly 1,500 locals will be needed as the workforce in various expertise, including technical, management and operations.

He noted that the MOU was fitting with efforts to develop a skilled workforce needed for the ECRL project and the setting up of the Pahang Rail Academy as a training centre focused on the rail and related industries.

“As a start, the development of a training module based on the Chinese railway system will be assisted and implemented together by ECRL project main contractor, China Communications Construction (ECRL) Sdn Bhd (CCCECRL) and Liuzhou Railway Vocational Technical College (LRVTC), a training institute in China.

“LRVTC is a renowned and experienced railway vocational institute in Liuzhou, China. This college is focused on railway engineering, technology and management and has complete training facilities,” Darwis said.

The partnership will bring a positive implication to the development of human capital, produce competitive talent and workforce capable of fulfilling the needs of a project like ECRL, he added.

Source: Bernama

ECRL project reaches 76% completion as of November — MRL

Malaysia and India have continued to solidify a strong economic relationship, with India being Malaysia’s 10th largest trade partner and while Malaysia is India’s 13th largest.

Over the years, bilateral trade has diversified beyond primary commodities such as palm oil and mineral oil, with significant growth in electrical equipment, machinery, copper products and organic chemicals.

This diversification reflects deeper integration into each other’s value chains, indicating a positive shift towards intraindustry trade.

Research and Information Systems for Developing Countries India Professor Pankaj Vashisht said bilateral foreign direct investment has also seen progress, with a combined total of about US$6 billion (RM26.7 billion).

He said Malaysian firms have invested US$3.3 billion in India, particularly in infrastructure, with commitments of an additional US$7 billion, while Indian firms have invested about US$2.7 billion in Malaysia.

“Despite these advancements, challenges remain. Trade is still concentrated in a limited number of products, with the top 12 items accounting for over half of exports on both sides.

“Moreover, trade potential remains underutilised, with actual trade valued at US$20 billion compared to an estimated potential of US$34 billion. Issues such as tariff and non-tariff barriers, low free trade agreement utilisation (at only 25-30%), and high compliance costs have limited progress.

“Addressing these challenges – especially through digital trade facilitation and interoperability of single-window systems – could significantly improve trade efficiency,” he said at the India-Malaysia Trade KL Conference 2024 on Saturday.

Pankaj said new opportunities are emerging for bilateral cooperation, namely in areas such as digitalisation and e-commerce. Both countries are advancing digital infrastructure and offering platforms for SMEs and MSMEs to integrate into global value chains.

There is also financial technology (fintech), in which India’s thriving fintech sector can collaborate with Malaysia’s growing fintech landscape to create innovative solutions.

“Under renewable energy, joint efforts in solar, bioenergy, and green energy projects can accelerate sustainability goals and combat climate change. As for semiconductors and critical minerals, leveraging Malaysia’s established semiconductor sector and India’s growing initiatives presents mutual opportunities.

“Both nations can collaborate to ensure mineral security and advance semiconductor manufacturing. By addressing trade barriers, enhancing digital cooperation, and tapping into emerging sectors, Malaysia and India have the potential to unlock significant economic opportunities and strengthen their long-standing partnership,” Pankaj said.

Asean-India Economic Council chairman Datuk Ramesh Kodammal said India is poised to strengthen defence cooperation with Asean countries, including Malaysia.

He said that during his visit last year, India’s former defence minister Rajnath Singh discussed advancing collaboration in thesector with Malaysia’s defence minister.

“India has already made strides by supplying defence equipment to the Philippines, marking its growing influence and commitment to regional security. Malaysia, recognising this opportunity, has shown a clear interest in furthering its defence ties with India.

“Strengthening such cooperation can enhance Malaysia’s defence capabilities while contributing to regional stability and security within Asean. This partnership signals a strategic alignment, offering mutual benefits as both nations navigate evolving regional and global defence landscapes,” Ramesh said.

Source: The Sun

Malaysia-India economic ties on solid footing but challenges remain

The state recorded investment collections amounting to RM66.8 billion as of September, surpassing the RM55 billion target set for this year, said Menteri Besar Dato’ Seri Amirudin Shari.

He said the report released by the Investment, Trade, and Industry Ministry positioned Selangor as attracting the most investments.

“Malaysia has recorded the highest total collection in history, with RM254 billion nationwide in the first nine months.

“Selangor was recorded as the state attracting the most investments, with RM66.8 billion. By the end of September, we had already exceeded the RM55 billion target,” he said during the state-level Christmas celebration and annual open house yesterday night.

Amirudin added that his administration is currently focusing on the Second Selangor Plan (RS-2), expected to be tabled next year or in 2026, in addition to several other projects, including the Greater Klang Valley project.

“This project not only involves infrastructure like roads, lighting, and drainage but will also see the redevelopment of old areas to attract new investments. We need stability and cooperation from all parties.

“Two days ago, I met with the Transport Minister, and we came up with the idea to extend the Kita Selangor Rail from Sabak Bernam to Sepang so that the people can travel with ease. Stability is essential to ensure all of this proceeds without disruption,” he said.

On Wednesday, the Menteri Besar announced that Selangor had recorded a revenue collection of RM2.593 billion so far, exceeding the target value of RM2.2 billion by 18 per cent this year.

This achievement reflects the dedication of civil servants and the administrative team, as well as the confidence of local and international investors in the current administration.

Source: Selangor Journal

Selangor surpasses RM55 bln target in September with over RM66 bln in investments – MB

Malaysia remains committed to increasing productivity, increasing national income and making Malaysia a more attractive destination for high-value investments.

The Budget 2025, presented on October 18 by Datuk Seri Anwar Ibrahim, focuses on advancing Ekonomi Madani through reforms, reducing bureaucracy, and addressing rising living cost.

It primarily supports key initiatives including the New Industrial Master Plan (NIMP), National Energy Transition Roadmap (NETR), and Bumiputera Economic Transformation Plan.

Fiscal policies will align with the Public Financial Management and Fiscal Responsibility Act, alongside targeted subsidy reforms. Governance improvement will be guided by the National Anti-Corruption Strategy and streamlined processes.

The Budget 2025 supply bill is built on the Ekonomi MADANI framework, focusing on reinvigorating the economy; driving reforms; and prospering the rakyat.

The government aims to drive sustainable growth and innovation with strategic investments and targeted policies.

This includes promoting green technology, energy efficiency, and supporting SMEs and mid sized companies.

The team with Public Investment Bank Bhd (PublicInvest Research) said in spite of a gradual reduction in fiscal deficit, the government continues to maintain an expansionary budget with the highest ever announced for 2025 at RM421 billion.

This covers RM335 billion operating expenses and RM86 billion development spending.

In addition, public-private joint ventures worth RM9 billion as well as domestic direct investment by GLIC companies worth RM25bn would bring the total development expenditure to RM120 billion in 2025.

The government will continue its fiscal reform agenda to broaden its revenue base as the share of tax collection in GDP remains the lowest in the region at 12.6 per cent versus the average of 14.6 per cent in 2023.

Hence, Budget 2025 would entail progressive expansion of tax revenue and targeting of subsidies only to the majority of people in need.

The government will stimulate growth through PPPs by prioritising strategic infrastructure projects such as the Johor-Singapore RTS Link, the expansion of Kulim Hi-Tech Park and other state specific developments such as the Integrated Green Industrial Park in Perak.

These projects will improve connectivity and increase Malaysia’s attractiveness as an investment hub.

Exports and trade facilitation

To increase the country’s income, Malaysia’s export facilitation will focus on enhancing the competitiveness of its industries.

Strategic export hubs will expand to include semiconductors, pharmaceuticals and green technology, leveraging Malaysia’s strengths in these sectors. Efforts will be directed towards streamlining the approval process and reducing bureaucratic inefficiencies.

PublicInvest Research noted that a total of RM40 billion has been allocated to the economic sector in 2025, aimed at enhancing national competitiveness by improving infrastructure and supporting investment.

“Key subsectors receiving the largest allocations include transport, environment, and trade and industry,” it said in its analysis.

“The transport subsector, receiving RM17.6 billion, focuses on enhancing connectivity in rural areas and alleviating congestion in more developed regions.

“Notable projects include the construction of a bridge and road from Ng Belawai to Song-Kapit in Sarawak, and an additional lane for the PLUS Highway (Phase 3: Simpang Renggam-Machap) in Johor.

“Ongoing projects include the Pan Borneo Highway Sabah and the Sabah-Sarawak Ring Roads.”

To drive future industrial growth and support Malaysia’s sustainable energy transition, RM3.1 billion will be allocated to the trade and industry subsector, with RM200 million for the NIMP 2030 and RM306 million for the National Energy Transition Roadmap (NETR).

Digital infrastructure

Malaysia will continue to advance its digital infrastructure through the implementation of 5G technology by Digital Nasional Berhad (DNB).

This second 5G network is expected to drive competitiveness in the ICT sector, create new opportunities for high-income jobs, attract advanced technology investments and drive the adoption of 5G in line with Malaysia’s aspirations as the ASEAN Chair 2025.

Analyst Jeffrey Tan from RHB Investment Bank Bhd (RHB Research) noted that improvement in Malaysia’s broadband connectivity remains a key thrust with continued allocations for rural areas, schools, and public universities under the Point of Presence (PoP) projects.

“These projects aim to close the digital gap in rural areas by using schools as a hub for the provision of fibre broadband infrastructure – hence, enabling schools, government premises, and surrounding housing areas to have access to fibre broadband services,” he said.

Funded by the Communications Ministry, Phase 1 of these PoP projects – which involved an allocation of RM673 million for 677 locations nationwide – have been largely completed.

Meanwhile, Phase 2 at RM3.9 billion – which commenced in Dec 2022 and involves 3,693 sites – is ongoing with target completion of end 2025.

“The PoP projects will see a further allocation of RM800 million under Budget 2025, with a RM100 million allocation under a new fibre broadband infrastructure connectivity programme for schools in villages and rural areas.”

Meanwhile, several initiatives in green technology and renewable energy continue to be introduced to increase the country’s productivity. Malacca Securities Sdn Bhd (Malacca Securities) noted that the facilitation fund for the NETR will be raised from RM100 million to RM300 million.

A total of RM100 million was allocated for solar and hydrogen energy projects in Terengganu. Budget 2025 also introduced carbon tax, affecting iron and steel and energy in Malaysia by the year 2026 aims to encourage the use of low carbon technology.

“We are positive for the solar and electronic vehicles segment as green energy policies are extended,” Malacca Securities said.

Improving energy security

To support productivity, the government will focus on energy security, ensuring reliable and affordable energy supply, and investments in sustainable energy projects.

PublicInvest Research analyst Khairul Fahmi saw that generally, Budget 2025 is fine tuning the implementation of the NETR to achieve Net Zero aspiration in 2050.

About more than RM300 million under the budget is allocated for the National Energy Transition Facility fund as compared with RM100 million in 2024.

The budget highlighted two projects that have entered implementation phase, which are the Kenyir Hybrid Hydro Floating Solar farm to power up 1000MW to the grid (half of the capacity to be used for the first green hydrogen hub project in Terengganu) and the 2,000MW Large Solar Scale, which is is currently in bidding stage until December 2024.

Meanwhile, five initiatives have been introduced to enhance renewable energy (RE) accessibility.

They include the extension of Net-Energy-Metering (NEM) scheme until 30 June 2025 (from the current 31 December 2024) to encourage household rooftop solar; and the the continuation of Green Technology Financing Scheme (GTFS) amounted to RM1.0bn for the period until 31 December 2026.

Also, UEM Lestra and TNB to invest RM16bn to increase transmission and distribution network capacity and decarbonisation within industrial areas.

An initiative will enable corporations to access renewable energy from selected independent power producers (IPP) via Third Party Access (TPA) i.e Corporate Renewable Energy Scheme (CRESS) Programme.

Budget 2025 also introduced a special programme to focus on dual function RE design concepts such as agrivoltaic to reduce negative impact of RE power plants on food production.

Ssource: Borneo Post

Malaysia committed to attracting high value investments

The country’s policy consistency and adaptability have encouraged investors to implement longer-term commitments while equipping the nation with the capacity to navigate evolving global challenges effectively, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said Malaysia’s commendable performance in securing RM254.7 billion in approved investments during the first nine months of 2024 is a testament to investors’ unwavering confidence in our economic policies and direction.

“This 10.7 per cent year-on-year growth and the creation of over 159,000 jobs speak volumes of Malaysia’s strategic frameworks and our concerted efforts to attract high-impact investments for sustainable growth,” he said in a post on his official X account today.

Tengku Zafrul noted that as the nation progresses towards becoming one of the top 30 global economies by 2033, the MADANI government is steadfast in its commitment to fostering an environment where both domestic and international investors can thrive.

“Our focus extends beyond achieving investment targets; we are laying the foundation for a sustainable and inclusive economy that will empower all Malaysians,” he added.

Source: Bernama

Malaysia’s policy consistency, adaptability attract long-term investment commitments – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim said today Malaysia welcomes investments from Denmark in high-value sectors.

In a Facebook post, he said the investments in green energy, renewable energy, digital economy and healthcare from the country were welcomed by the government.

This followed a visit by Danish Foreign Minister Lars Løkke Rasmussen in Parliament this afternoon.

“I also appreciate the investors from Denmark who have established regional hubs here, especially Maersk and United Plantations,” he said.

Additionally, he said that during the visit, the aspects of bilateral relations and cooperation between the two countries were discussed between him and Rasmussen.

He also welcomed the reopening of the Danish embassy in Kuala Lumpur last August.

Source: NST

Anwar welcomes Danish investments in high-value sectors

After missing the chance to achieve high-income nation status twice, Malaysia is on track to achieve it between 2027 and 2029.

Economy Minister Rafizi Ramli said the 13th Malaysia Plan (13MP) would be geared towards ensuring Malaysia achieved the target.

“We missed the opportunity to achieve high-income nation status twice in 2012 and 2016 due to the circumstances then.

“Based on the projections, we were close to achieving high-income nation status.

“Nevertheless, we have done well. If we can keep up the momentum, we can achieve high-income nation status as early as 2027.”

He said this after the Libat Urus Rancangan Malaysia Ketiga Belas programme with the state government at the Setia Spice Convention Centre in Bayan Lepas here.

Present was Chief Minister Chow Kon Yeow.

Elaborating, Rafizi said the threshold for high-income nation changed every two years.

He said for example, the gross national income per capita was US$14,000 in 2022.

“We were not far from the threshold then.

“If we can maintain our economic growth and grow as fast as other nations, then we are on track to achieving high-income nation status.”

Earlier, Rafizi said the 13MP would focus on further developing the artificial intelligence industry.

He said the government needed to see how to build the overall ecosystem.

“Our presence now is in the data centre (sector).

“After this, we need to ensure we build the value chain to encourage local companies to participate.

“The economic opportunity is huge. Our focus is Penang as the state is at the forefront.”

Source: NST

Rafizi: Malaysia on track to achieve high-income status

According to Lee Ting Han, Johor state EXCO member for investment, trade, consumer affairs & human resources, 11 companies have expressed interested in setting up operations in Forest City’s Special Financial Zone (SFZ) as of November. Of which, eight have expressed their interest to set up family offices — four of whom hail from Malaysia, while the others are from Singapore, Indonesia and Taiwan, says Lee at a media doorstop on Dec 11. 

Under the newly announced SFZ, several incentives have been announced. These include a 0% corporate tax rate for family offices, a 0% to 5% corporate tax rate and a 15% flat income tax rate for knowledge workers. Lee says that as at December, the Malaysian ministry of finance is working on making the incentive packages legally binding, which is scheduled to be in place by 1Q2025.

Forest City isn’t the only area that is attracting investments. In July, The Edge Singapore reported that data centres with capacity of 1GW are being built in Johor. DC Byte reports that capacity is now at 1.5GW.

Bernama says 10 data centres had begun operations as of October this year, while seven were in the process of development in Johor.

Gregory Seow, Singapore head of global banking, and global head of financial institutions group, group global banking, Maybank, says: “We’ve spoken to many clients and they have discussed some pain points.”

Infrastructure, security, ease of clearing customers, ease of payment and free movement of capital were some of the pain points discussed by Seow with his clients. “Forest City is supposed to be the administrative headquarters, and the authorities are proposing a financial hub. But connectivity is required,” Seow observes. 

Some projects require just Johor state’s approval, some may need federal approval. “That complicates the issue. I hope they have navigated those issues back in April. Prime Minister Anwar also demonstrated his support. Banks like ourselves want to be the go-to bank,” Seow says.

One of the projects that requires federal approval is Johor’s Autonomous Rapid Transit (ART) system which is required to link commuters from the Johor-Singapore Rapid Transit System (RTS) that is operational from end-2026.

“More importantly, our Singapore-based clients have signalled interest. Last month, I had a chairman-level lunch with a very established conglomerate in Hong Kong. They signalled their interest in obtaining a piece of land [in Johor] and getting contracts. The Chinese companies are debating whether they should go to the Eastern Economic Corridor (EEC) in Thailand, or here,” Seow says. 

In October, Asean and China successfully concluded the negotiations for the Asean-China Free Trade Area (ACFTA) 3.0 upgrade. The upgraded agreement aims to modernise and enhance the existing trade framework by deepening commitments in traditional areas while introducing new domains of collaboration, including the digital economy, green economy, supply chain connectivity, competition and consumer protection, and support for micro, small, and medium enterprises (MSMEs).

OCBC Global Market Research says investment flows from Hong Kong and China into Malaysia are likely to continue in 2025. Investment commitments from China and Hong Kong into Malaysia’s manufacturing sector have been broadly stable over the past few years it indicates. “The initiation of the [JS-SEZ] can catalyse further diversification out of China into the SEZ,” OCBC Global Market Research says.

PM Anwar visited China from Nov 4 to 7 while Malaysian Agong Ibrahim Sultan Iskandar also visited China from Sept 19 to 22. “With US-China trade tensions rising, the risk is that Malaysia is caught between the rock and the hard place. This was implied when Deputy Trade Minister Liew Chin Tong, suggested that Chinese companies avoid using Malaysia as a base to ‘rebadge’ products between the rock and the hard place,” OCBC cautioned. 

Source: The Edge Singapore

Forest City manages to attract family offices; Johor continues to attract investments

Selangor, Malaysia’s economic powerhouse, is on track to surpass its RM50 billion investment target for this year, driven primarily by growth in the manufacturing and services sectors. 

In the first half of the year alone, the state’s approved investments reached RM34.9 billion.

According to Datuk Paul Khong, group managing director and head of Savills Malaysia, Selangor’s impressive progress over the past three decades has been fuelled by advancements in economic development, infrastructure, urbanisation, as well as education and healthcare. 

Its strategic location within the Klang Valley, coupled with its status as the country’s most industrialised and urbanised state, continues to underpin this growth, he said.

In 2022, Selangor contributed 25.5 per cent to Malaysia’s gross domestic product (GDP)—a historic milestone—representing a 0.7 per cent increase from the previous year. 

The Malaysian Investment Development Authority (MIDA) reported that last year, Selangor outperformed its RM45 billion investment target by recording RM55.3 billion in total investments.

Khong said that the state’s growth is propelled by its strategic focus on economic diversification and its logistical and industrial strengths. 

High-growth sectors like aerospace, logistics, and halal industries are significant contributors to GDP and employment, he told Business Times.

”Under the 2025 Budget, the expansion of Port Klang and investments in renewable energy infrastructure reflect the state’s commitment to fostering a resilient and sustainable economic model,” Khong said.

He also said that i-City is a testament to the state’s commitment to high-tech urban and economic development.

Khong described i-City as the country’s premier smart city, integrating residential, commercial, recreational, and technological elements into a self-sustaining ecosystem. 

In 1997, then acting prime minister Datuk Seri Anwar Ibrahim launched i-City, sparking the transformation that would define the future.

Fast forward today with cutting-edge Internet of Things infrastructure, i-City has become a magnet for IT firms and international investors, solidifying Selangor’s leadership in the digital economy, Khong said.

Khong said that the latest addition to i-City, SkyCity Tower, features Malaysia’s tallest glass water slide, further enhancing the recreational and architectural appeal of Selangor. 

He said that Selangor also continues to boast its development trails in Petaling Jaya, Subang Jaya, and, of course, its main state capital of Shah Alam, which holds many landmark developments all around.

He said that i-City, which is the most modern “smart city” and integrated township development within Shah Alam and also ranked well in the country, is also a “statement and testimony” of the high-tech developments in Selangor itself.

i-City is a “game-changer” in Selangor’s urban and economic landscape. It is the “flagship smart city,” which integrates residential, commercial, recreational, and technological components into a self-sustaining urban ecosystem.

The project emphasises cutting-edge technologies, which include IoT-enabled infrastructure that attracts IT firms and international investors, thus cementing Selangor’s role as a leader in the digital economy.

Khong said that the latest introduction of SkyCity Tower in i-City also features Malaysia’s tallest glass water slide, which adds to the software offerings available in recreational aspects and the architectural landmarks of Selangor. i-City has a strong appeal as a tourism destination, forming a reputable hub for modern and sustainable urban developments.

A market insider noted that Shah Alam, Selangor’s capital, is a key investment destination due to its robust economic activity and industrial presence. 

Infrastructure projects like the Light Rail Transit 3 (LRT3) line are expected to boost connectivity, drive up property values, and attract more buyers and tenants, he said.

“The i-City development in Shah Alam exemplifies Selangor’s push toward high-tech urbanisation,” the insider said.

He said that Shah Alam’s transformation owes much to the visionary leadership of the Selangor Ruler, Sultan Sharafuddin Idris Shah.

“Under his guidance, Shah Alam has evolved from a modest administrative centre into a thriving international hub, embodying innovation, cultural diversity, and sustainable growth. The Ruler’s foresight has been pivotal in shaping Selangor’s transformation. 

“Recognising Shah Alam’s potential as a dynamic city, the Ruler made a landmark decision in 2008 to designate i-City as an International Zone. This bold move set the stage for a technologically advanced ultrapolis that redefined the future of the capital city,” he said.

Source: NST

Selangor set to exceed RM50bil investment target

Malaysia has successfully recorded total approved investments valued at RM254.7 billion from various economic sectors for the first nine months of this year, marking an increase of 10.7 per cent compared with RM230.2 billion for the same period in 2023.

Prime Minister Datuk Seri Anwar Ibrahim said this amount involves 4,753 projects, which are expected to generate 159,347 new job opportunities.

“This was informed during my chairing of the National Investment Council (MPN) Meeting No. 8/2024 regarding the investment performance,” he said in a post on X today.

The Prime Minister said MPN had also agreed and confirmed the Guidelines for the Development of Sustainable Data Centres, which include metrics for Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).

He added that these guidelines would be applied as eligibility requirements for tax incentives under the Digital Ecosystem Acceleration Scheme (DESAC), an initiative to improve policies related to efforts to drive investment in the country’s data centres.

“The Madani Government continues to improve existing policies and create new policies to enhance the nation’s competitiveness,” said Anwar.

Source: Bernama

Malaysia records approved investments of RM254.7bil in first 9 months of 2024 – PM

Local suppliers can reduce risks and enhance their export competitiveness by leveraging business opportunities with Malaysia’s Free Trade Agreement (FTA) partners in trade deals with the US, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry said that in line with the National Semiconductor Strategy (NSS), Malaysian companies are encouraged to “move up the industry value chain” by increasing their research and development (R&D) activities.

“Collaborating with major industry players, particularly from the US, can enhance local industry’s capabilities in microchip innovation and the development of new technologies in high-demand sectors such as artificial intelligence (AI) and 5G,” Miti said in a written response on Parliament’s website on Monday.

The ministry said this in reply to a question from Senator Dr A Lingeshwaran regarding the potential impact on Malaysia following Donald Trump’s successful re-election as the US president.

According to Miti, Trump has announced plans to impose new tariffs of up to 25% on imports from Mexico and Canada, along with an additional 10% tariff on all goods imported from China starting next year.

The ministry added that Malaysia, like other nations, is likely to experience shifts in trade patterns as global supply chains realign.

At the same time, it is confident that Malaysia’s position as a neutral and non-aligned country could further strengthen the nation’s bilateral relations with the US.

“This approach would encourage US companies to continue investing in Malaysia as part of their risk-mitigation strategies amidst ongoing geopolitical tensions.

“Indirectly, this ensures a positive outlook for Malaysia, underpinned by its strong fundamentals and the adoption of globally favourable trends,” it added.

Source: Bernama

Local suppliers can boost export competitiveness in US trade via other FTAs — MITI

The significant increase in investments, especially in the cutting-edge technology sector, should be utilised by local companies so that the people will continue to be given the appropriate opportunities.

Prime Minister Datuk Seri Anwar Ibrahim said CG Global Profastex Manufacturing Sdn Bhd, located in the Prai Industrial Zone, Penang, is one of the good examples that has successfully penetrated the global market.

“I extend my congratulations and encouragement to all the people of CG Global (of which 80% of the workforce are women) for successfully penetrating the global market, and is, among other things, the result of support programmes and incentives from the government,” he said through a post on X.

On Saturday, he had the opportunity to visit CG Global — a Bumiputera-owned small and medium enterprise (SME) that is a leading manufacturer in the provision of a spectrum of CEM (contract electronics manufacturing) services.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry always focuses on ensuring that female entrepreneurs have the same space and opportunity to grow as other businesses led by male entrepreneurs.

“As the leader of the Economic Pillar during the Asean 2025 chairmanship, Miti will continue to highlight proactive initiatives that prioritise gender equality in entrepreneurship in line with the Asean 2025 theme of “Inclusivity and Sustainability,” he said through a post on X.

Tengku Zafrul, who also participated in the visit, said CG Global is a bumiputera women-owned SME that has been operating since 2016.

“When it was first established, it only provided services for multinational companies around Penang and Ipoh.

“But now its business is almost 100 per cent export-based, with customers from various countries such as the United States, Australia, France, the UK and China,” he said.

He explained that CG Global employees are 100% indigenous, and almost 80% of the employees are women, of which 90% are diploma and degree holders.

“This is in line with one of the priorities of our economic success, which is to ensure that women entrepreneurs are not marginalised in Asean,” he added.

Source: Bernama

PM: Significant increase in tech sector investments should benefit local firms

The Free Trade Agreement (FTA) between Malaysia and South Korea is expected to be finalised next year, subject to political stability in South Korea, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said the FTA negotiations have already started.

“South Korea’s political situation is indeed uncertain for now; it is yet to be determined whether it will affect the FTA negotiations.

“Nevertheless, we have started FTA negotiations and if the political process in South Korea does not affect negotiations, it will be signed next year,“ he said in response to a question from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) who asked if South Korea’s crisis will affect the FTA negotiations at the Dewan Rakyat today.

During Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to South Korea, both countries expressed their commitment to expedite any delayed negotiations with the agreement expected to be signed during President Yoon Suk Yeol’s return visit to Malaysia.

Meanwhile, Liew said the New Investment Incentive Framework, expected to be announced as early as the first quarter of 2025, will ensure that investment companies receive incentives based on a set evaluation score.

“This evaluation score will determine the type of incentives given to investors, based on their contribution to the economy according to the six main aspects set out in the National Investment Aspiration,“ he said.

Source: Bernama

Malaysia-S. Korea FTA expected to be finalised next year – Liew

Malaysia is set to drive an inclusive and sustainable economic agenda as it assumes the chairmanship of Asean in 2025, focusing on equitable distribution of the economic benefits of regional integration, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He emphasised that Malaysia’s leadership under the theme “Inclusivity and Sustainability” will ensure that Asean’s economic growth extends to all, including women, youth, and micro, small, and medium enterprises (MSME).

“Malaysia is determined to ensure the economic wins of regional integration benefit all, including women, youth and MSMEs. We are creating pathways for the greatest participation from these groups in Asean’s development next year,” he said at the Asean-Malaysia Business Forum 2024 today.

On Priority Economic Deliverables (PED) to boost Asean’s standing, Tengku Zafrul said under the Economic Pillar, the Asean chairmanship will focus on four key PED which are enhancing trade and investment, creating an inclusive and sustainable pathway, promoting integration and connectivity, and building a digitally resilient Asean.

“Our proposed PEDs will be instrumental in establishing Asean as a global economic leader. With Asean projected to grow to a GDP (gross domestic product) of US$4.5 trillion (RM20 trillion) by 2030, this is a pivotal time to deepen economic integration and resilience,” he explained.

Tengku Zafrul noted that the PED will address key areas, including upgrading free trade agreements, fostering sustainable investments, and promoting digitalisation through the Asean Digital Economy Framework Agreement.

“Special attention will be given to the semiconductor supply chain, Asean tourism and climate financing,” he added.

The minister highlighted specific programmes to empower marginalised groups.

“Initiatives like the ‘Women in Trade and Industry’ programme and the Asean Women Entrepreneurs’ Network aim to provide greater regional access for female entrepreneurs. We want to ensure Malaysian women entrepreneurs have greater access to opportunities within Malaysia and Asean. Events like the Asean Women Economic Summit 2025 will serve as platforms for collaboration and growth.”

For MSMEs, Tengku Zafrul said the emphasis will be on supporting their green transition and export expansion, leveraging frameworks such as the i-ESG Framework and regional trade agreements such as the Regional Comprehensive Economic Partnership.

“Youths, women, and MSMEs will play a critical role in Asean’s economic trajectory. We are ensuring that they are not just participants but active contributors to Asean’s growth story,” he added.

Additionally, Tengku Zafrul underscored Asean’s rise as a global economic powerhouse.

“Currently the world’s fifth-largest economy, Asean is expected to become the fourth largest by 2030, fuelled by robust GDP growth, trade momentum and a growing population exceeding 800 million by 2045. Asean is becoming a neutral base for global supply chains amid geopolitical shifts. Malaysia’s chairmanship offers a vital opportunity to attract investments and expand intra-Asean trade, which now stands at 25%.”

Looking ahead, he emphasised the importance of unity and collaboration among Asean nations to navigate global challenges.

“How Malaysia steers Asean in 2025 will have an impact that lasts well beyond our lifetimes. This is our chance to ensure Asean’s prosperity is inclusive, equitable and sustainable,” he said.

As Asean gears up for its next phase of economic integration, Tengku Zafrul noted that Malaysia’s leadership will be crucial in ensuring that the benefits are shared by all segments of society, fostering growth and resilience across the region.

Source: The Sun

Malaysia, as Asean chair, to focus on equitable distribution of economic benefits in region

The significant increase in investments, especially in the cutting-edge technology sector, should be utilised by local companies so that the people will continue to be given the appropriate opportunities.

Prime Minister Datuk Seri Anwar Ibrahim said CG Global Profastex Manufacturing Sdn Bhd located in the Prai Industrial Zone, Penang is one of the good examples that has successfully penetrated the global market.

“I extend my congratulations and encouragement to all the people of CG Global (of which 80 per cent of the workforce are women) for successfully penetrating the global market, and is, among other things, the result of support programmes and incentives from the government,” he said through a post on X.

Today (Dec 7), he had the opportunity to visit CG Global – a bumiputra-owned small and medium & enterprise (SME) that is a leading manufacturer in the provision of a spectrum of CEM (contract electronics manufacturing) services.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry always focuses on ensuring that female entrepreneurs have the same space and opportunity to grow as other businesses led by male entrepreneurs.

“As the leader of the Economic Pillar during the Asean 2025 chairmanship, MITI will continue to highlight proactive initiatives that prioritise gender equality in entrepreneurship in line with the Asean 2025 theme of “Inclusivity and Sustainability,” he said through a post on X.

Tengku Zafrul also participated in the visit, said CG Global is a bumiputera women-owned SME that has been operating since 2016.

“When it was first established, it only provided services for multinational companies around Penang and Ipoh.

“But now its business is almost 100 per cent export-based, with customers from various countries such as the United States, Australia, France, the UK and China,” he said.

He said CG Global employees are 100 per cent indigenous, and almost 80 per cent of the employees are women of which 90 per cent are diploma and degree holders.

“This is in line with one of the priorities of our economic success, which is to ensure that women entrepreneurs are not marginalised in Asean,” he added.

Source: Bernama

PM: Significant increase in technology sector investments should benefit local companies

Malaysia can leverage its mature digital infrastructure and skilled workforce to become the focal point for regional headquarters of multinational companies (MNCs) and high-skilled services and manufacturing.

Strategic advisory firm, Bower Group Asia, associate director, Darryl Tan, said that Malaysia — as chairman of ASEAN in 2025 — and each Southeast Asian country, has a niche in the global value chain that they can leverage.

He cited how Singapore serves as the regional headquarters for many MNCs, while Malaysia serves as a high-skilled service and manufacturing hub for these companies, and Indonesia and Vietnam focus more on the manufacturing side of the value chain.

As chair of ASEAN in 2025, Tan emphasised that many of the strategies outlined by Prime Minister Datuk Seri Anwar Ibrahim support the vision of leveraging each member country’s advantages.

“Together, they can make ASEAN a competitive hub,” he said in response to questions raised during the Bernama Global news programme on Wednesday (Dec 4), by host Jessy Chahal, regarding the topic “Southeast Asia’s markets: Navigating Challenges and Opportunities in 2025”.

This includes fostering digital adoption at every level of the supply chain, increasing regulatory cooperation as well as increasing logistical linkages to enable smoother transactions of goods and expertise across borders.

Tan said Putrajaya should also leverage its significant investments in renewable energy to attract companies that want to set up environmentally sustainable manufacturing plants in the region.

He highlighted that Malaysia should take advantage of its regulatory and policymaking experience — for example, in the digital and energy sectors — and share this knowledge to foster stronger regulatory cohesiveness across the region.

“Deeper economic integration within the region will allow ASEAN to position itself as a hub for businesses at every level of the supply chain,” he said.

Asked about Malaysia’s economic outlook, Tan said the country would benefit from the overall tech boost, as “we are a major exporter of semiconductors and electrical and electronics (E&E) products”.

There will be stable growth next year, with the economy expanding by 4.5-5.5 per cent supported by the continued demand for E&E goods, as multinational companies invest heavily in new technologies, particularly artificial intelligence (AI).

Contributing to Malaysia’s stability will also be the sustained domestic demand.

Despite the government’s plans to further rationalise petrol subsidies next year, he said any spillover effects from the increase in the cost of living would be offset by government initiatives, including the increase in the minimum wage and the rise in civil servant salaries.

Source: Bernama

Malaysia can emerge as regional focal point for multinational firms in ASEAN – Economist

ASEAN countries have the potential to capitalise on significant opportunities in the digital economy, manufacturing, and supply chains led by BRICS countries, which are dialogue partners of the region, said the Ministry of Investment, Trade and Industry (MITI).

Its Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the digital economy sector holds great potential, particularly due to rapid advancements in technologies such as artificial intelligence (AI), as well as the demographic trend in ASEAN where nearly half of the population is under 30-years-old.

“If we look at the cooperation with BRICS countries in the field of e-commerce, we can see that financial technology and digital innovation can open new pathways to strengthen trade initiatives in our efforts with other ASEAN countries and BRICS,” Tengku Zafrul said during the Minister’s Question Time session in the Dewan Rakyat today.

He was responding to a supplementary question from Young Syefura Othman (PH-Bentong) on how Malaysia can leverage the market potential controlled by BRICS members (whose membership has grown from Brazil, Russia, India, China, and South Africa to also include Egypt, Ethiopia, Iran, and the United Arab Emirates) and which sectors present the biggest opportunities for ASEAN.

Tengku Zafrul also said that as the chair of ASEAN in 2025, Malaysia will also have the opportunity to create synergies with dialogue partners, including BRICS countries.

“The manufacturing value chain in Malaysia and ASEAN can be enhanced through cooperation with BRICS countries, China, and India.

“Therefore, the government plans to enhance free trade agreements (FTA) with dialogue countries, including China and India, during the ASEAN chairmanship next year,” he said.

Additionally, the ASEAN chairmanship in 2025 will also discuss knowledge transfer and resource sharing, said Tengku Zafrul.

“Thus, strengthening supply chain resilience can be achieved through diversification in the manufacturing sector, and we aim to reduce disruptions caused by geopolitical uncertainties, thereby boosting the region’s competitiveness,” he added.

Source: Bernama

ASEAN has potential in digital economy, manufacturing, and supply chains led by BRICS members – MITI