The New Zealand Malaysia Business Association (NZMBA) and the Singapore Business Association New Zealand have signed a memorandum of understanding (MoU) with the Auckland Business Chamber to enhance economic cooperation among New Zealand, Malaysia, and Singapore.

The MoU, inked recently at the Auckland Business Chamber, New Zealand’s largest business network, aims to boost economic collaboration between the three countries, focusing on trade, investment, and business networking.

It is expected to leverage the strengths of each nation to create a robust framework for sustainable economic growth.

Malaysian High Commissioner to New Zealand, Mazita Marzuki, said this MoU opens up new avenues for collaboration, particularly in the agriculture sector, which is of mutual interest.

“As Malaysia prepares to chair Asean in 2025, we are committed to fostering a vibrant economy and strengthening regional cooperation,” she said in a statement made available to Bernama.

She also highlighted the significance of the official visit of New Zealand Prime Minister Christopher Luxon to Malaysia from September 1-3, as both countries enjoy warm diplomatic ties spanning over 67 years.

Chief executive officer of the Auckland Business Chamber and former National Party leader of New Zealand, Simon Bridges, said New Zealand has always valued its relationships with Malaysia and Singapore.

“This MoU is a testament to our commitment to deepening these ties and exploring new avenues for economic cooperation,” he said at the signing event, which was also attended by Singapore High Commissioner to New Zealand, William Tan.

Meanwhile, NZMBA president Dave Ananth said the MoU acknowledges the strong existing relations between the countries and sets the stage for greater economic collaboration.

“I am hopeful it will lead to more trade and investment opportunities between New Zealand and Malaysia,” he said.

Dave also highlighted the potential for increased business exchanges and the sharing of expertise among the three nations.

The agreement is expected to significantly impact the economies of all three countries by enhancing market access, reducing trade barriers, and encouraging the exchange of knowledge and technology.

Bilateral trade between New Zealand and Malaysia has been rising, with 2023 seeing significant trade volumes.

Malaysia remains one of New Zealand’s key trading partners in South-east Asia, with exchanges including agricultural products, manufactured goods, and technological services.

Source: Bernama

Malaysia, New Zealand and Singapore ink MoU to supercharge economic cooperation

Negri Sembilan (NS) is on the right track towards becoming a developed state after recording an encouraging growth in its Gross Domestic Product (GDP).

A 1.8 per cent GDP growth was recorded last year, compared with 5.6 per cent the previous year.

Menteri Besar Datuk Seri Aminuddin Harun said despite facing a challenging global economic environment, NS was able to achieve positive GDP growth.

He said the services sector was the main contributor with a strong performance of 4.5 per cent, offsetting the moderate growth of the manufacturing sector at 1.2 per cent, in addition to the 4.9 per cent contraction in the agricultural sector.

“The good performance of the services sector was supported by the increase in tourist activity, as Negri Sembilan recorded a significant rise in domestic tourist arrivals in 2023 with an annual growth of 30.2 per cent, jumping to 15 million tourists, compared with 11.5 million in 2022.

“Among the large-scale activities organised was the NS Fest held from July 27 until Aug 3, which recorded 969,000 visitors throughout the eight days of the programme.

“In line with Visit Negri Sembilan Year 2026, the state government will increase the development of tourism products based on the determination of tourism segments,” he said.

To strengthen productivity and drive the state’s progress, Aminuddin said the state government is focusing on high-tech industries involving seven clusters.

These are semiconductors, aerospace, maritime, driverless vehicles, electric vehicles, smart cities and oil and gas logistics hubs.

Commenting on the inflation rate, the Menteri Besar said NS recorded a moderate rate last year at two per cent, compared with 2.8 per cent in 2022.

This followed lower global commodity prices, gradually recovering supply disruptions, price controls and subsidies for selected goods.

In addition, the Labor Force Participation Rate (KPTB) in the state increased by one percentage point to 66.1 per cent in 2023, compared with 65.1 per cent in 2022, with the people’s monthly income also improving.

Regarding investment, Aminuddin said NS recorded the highest investment of RM10.1 billion for 2023.

According to him, this figure exceeded what was targeted, and even exceeded the highest ever recorded in 2022, which was RM8.9 billion.

“Manufacturing is the most important sector because it recorded 75 per cent, equivalent to RM7.6 billion, while the services sector contributed 25 per cent (RM2.5 billion),” he said.

In terms of foreign investment, Aminuddin said the state received RM6.04 billion for 2023, with the largest investment from Sandvik Equipment Sdn Bhd from Sweden for the manufacturing of battery packs in Sendayan.

Similarly, the value of domestic investment also recorded a positive performance of RM4.05 billion for the manufacturing and selected services sectors.

Aminuddin said the state government is focusing on high-tech projects and intends to open more strategic industrial areas.

The state government is also providing investment incentives, including setting a premium payment discount rate of 15 per cent for 30 days from the date of receiving Notice 5A or 7G from the District Land Office beginning Jan 1 this year.

Meanwhile, the Menteri Besar said a study on the happiness index in 2024 showed that all residents of Negri Sembilan were satisfied with all the components which were evaluated, giving the state a score of 4.75.

“Port Dickson was awarded one of the 10 Happiest Cities in Malaysia while Tampin received the Happiest Community Town award,” he said, adding that the state government is channelling various assistance to all disadvantaged and needy community groups in the state.

“The assistance and initiatives provided are among the government’s continuous efforts and commitment to improving the living standards of the people of this state,” Aminuddin said.

Source: NST

Negri Sembilan on track to achieve developed state status

Investment landscape remains robust with positive outlook in short to medium term

MALAYSIA is poised to record absolute annual foreign direct investment (FDI) inflows of more than RM50 billion by 2030, according to UOB Global Economics and Markets Research.

This is supported by the robust FDI performance so far this year, with Malaysia having secured US$3.1 billion in FDI inflows alone in the first half, or a 17.9 per cent increase from US$2.6 billion recorded a year ago.

UOB Research said in the absence of any unexpected economic shocks, it expected FDI inflows to sustain the average longterm 15-year growth trend of 3.6 per cent per annum in the medium term, or around RM51.6 billion annually by 2030.

It added that despite a challenging and complex global environment, Malaysia’s investment landscape remained robust with a positive FDI outlook in the short to medium term.

The Malaysia Investment Development Authority approved almost RM1 trillion worth of investments between 2021 and March this year, with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments at RM461.8 billion (46.6 per cent) and primary sector investments totalling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, about 21.1 per cent in the planning phase, and the balance are unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31.

UOB Research said various catalytic projects identified in national masterplans, such as the New Industrial Master Plan 2030, National Energy Transition Roadmap and Midterm Review of 12th Malaysia Plan, would further enhance opportunities for investments in Malaysia’s high-growth, high-value sectors.

The planned Johor-Singapore Special Economic Zone and Malaysia’s five regional economic corridors will also work to bring in more investments.

To date, Malaysia has also implemented 16 free trade agreements (seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership, Indo-Pacific Economic Framework, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

However, it cautioned that the possibility of expanded universal United States tariffs, export controls and secondary sanctions to countries that were part of the China “Plus One” strategy remained a key risk, particularly for Malaysia and other Asean members that had benefited from diverted “China-US” flows.

The United Nations Trade and Development, in its World Investment Report 2024, also said the global environment for international investment “remains challenging” due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting multinational enterprises to stay cautious on overseas expansion.

Source: NST

‘Annual FDI set to hit RM50B by 2030’

Since gaining independence in 1957, Malaysia has undergone a remarkable economic transformation, evolving from a primarily agriculture-based economy to a diversified and resilient one.

This journey of growth and development is a testament to strategic planning, adaptability, and visionary leadership, laying the foundation for sustained prosperity.

Malaysia’s economic trajectory has not only ensured continued progress but has also positioned the country for a future focused on sustainability and innovation.

The Early Years: Agriculture and Commodities

In the years following independence, Malaysia’s economy was predominantly reliant on agriculture and commodities.

Rubber and tin were the backbone of the economy, with the former being the country’s largest export.

In fact, by the 1960s, Malaysia was the world’s leading producer of both rubber and tin.

The reliance on these commodities, however, made the economy vulnerable to global price fluctuations, a risk that the government quickly recognised.

As Malaysia embarked on its nation-building journey, there was an urgent need to diversify the economy to ensure long-term sustainability and resilience.

This marked the beginning of a series of strategic initiatives aimed at transforming the economic landscape.

The Shift to Manufacturing: The 1970s and Beyond

The 1970s marked a pivotal era in Malaysia’s economic transformation.

Recognising the limitations of an agriculture-based economy, the government, under the New Economic Policy (NEP) launched in 1971, began to shift the economic focus towards industrialisation.

The NEP aimed to reduce poverty and restructure society to eliminate the identification of race with economic function, which had been a source of tension.

This period saw the establishment of free trade zones, attracting foreign direct investment (FDI) and promoting export-oriented industrialisation.

The government also invested in infrastructure, such as roads, ports, and industrial estates, to support the burgeoning manufacturing sector.

Sunway University economics professor Dr Yeah Kim Leng noted that to reduce its high dependency on the agricultural sector, particularly plantation export commodities in the 1960s, Malaysia embarked on an FDI-led electronics and light manufacturing export development strategy in the early 1970s.

This was followed by a government-led heavy industries import substitution strategy in the 1980s.

“In the decades that follow, Malaysia benefitted from the rise in global trade and investment.

“The manufacturing industries integrated into regional production networks and global supply chains that expanded with rising globalisation.

“Led largely by FDI inflows, the shift up the value chain was however impeded by low domestic research and development (R&D) investment, weak technology transfers, inadequate indigenous technological capabilities and skills shortages,” he told Business Times.

Yeah also pointed out that the decade following the 1998 Asian Financial Crisis was marked by low private investment, which hovered around 10 per cent to 12 per cent of gross domestic product (GDP) compared to above 30 per cent before the financial crisis.

However, he noted that the surge in investment over the last two years has raised private investment-to-GDP levels to 16 per cent to 18 per cent, closer to the desired 20 per cent to 25 per cent level for a vibrant and fast-growing economy.

By the late 1970s and early 1980s, Malaysia had become a significant player in the global electronics and electrical products market.

The Penang Free Trade Zone (FTZ), established in 1972, became a hub for multinational corporations like Intel and Hewlett-Packard, propelling the nation into the global manufacturing arena.

IDEAS Malaysia economist and assistant research manager Doris Liew said Malaysia’s industrialisation in the 1980s was significantly driven by the “Look East Policy” and the Penang FTZ played a pivotal role in attracting FDI.

She noted that over the decades, Malaysia has established itself as  a prominent hub in the manufacturing sector, encompassing electrical and electronics (E&E), automobiles, chemicals, and appliances.

“This strong manufacturing ecosystem positions Malaysia advantageously in the face of increasing global demand for high-tech manufacturing, including artificial intelligence (AI), wafer fabrication, and energy transition-heavy industries like battery processing.

“Maintaining an open trade policy and a business-friendly environment will be crucial to sustaining Malaysia’s competitiveness in these sectors,” she said.

Doris pointed out that in the north, Kulim has already benefited from Penang’s spillover effects and will continue to see such benefits.

“Meanwhile, in the central region, the Selangor integrated circuit (IC) design park targets high-value manufacturing, such as IC chip design.

“In the south, the Singapore-Johor special economic zone (SEZ) offers the potential to benefit from the strong spillover from Singapore and establish a third manufacturing zone,” she said.

The success of the manufacturing sector not only reduced Malaysia’s dependence on agriculture but also contributed significantly to employment, income growth, and urbanisation.

By the 1990s, manufacturing accounted for nearly 30 per cent of the country’s GDP, with exports of manufactured goods driving economic growth.

The Rise of the Service Sector: 1990s to Present

As Malaysia continued its economic journey, the 1990s heralded another shift—this time towards the service sector.

Recognising the need to further diversify and add value to the economy, the government began promoting services such as finance, tourism, education, and information and communication technology (ICT).

The Multimedia Super Corridor (MSC), launched in 1996, was a significant milestone in this transition.

The MSC was envisioned as a high-tech hub, attracting global technology companies and fostering local innovation.

This initiative marked Malaysia’s entry into the digital economy, positioning the country as a leader in ICT in the region.

The financial services sector also saw rapid growth, with Kuala Lumpur emerging as a regional financial centre.

The development of Islamic finance further solidified Malaysia’s reputation in the global financial markets, with the country becoming a leading centre for Islamic banking and sukuk issuance.

Looking Forward: Malaysia’s Future Economy

As Malaysia charts its course into the future, several key themes are expected to shape its economic trajectory: the green economy, the silver economy, and continued economic reform.

In terms of green economy, environmental sustainability is set to be a cornerstone of Malaysia’s future economic strategy.

The government has recognised the need to transition to a low-carbon economy, with initiatives aimed at promoting renewable energy, energy efficiency, and sustainable practices across industries.

The  Malaysia Renewable Energy Roadmap (MyRER) outlines ambitious targets for increasing the share of renewables in the energy mix, positioning the country as a leader in green technology in the region.

Commenting on this, Yeah said the National Energy Transition Roadmap (NETR) has provided the policy direction and strategies to effect the shift to renewable energies, decarbonisation, carbon capture, storage and utilisation (CCSU) and efficient energy utilisation that underpin a green economy.

He added that there are green economy investment opportunities that are integrated with a circular economy driven by sustainable production and consumption where the carbon footprint, resource usage and wastes are minimised.

“The main challenges in undertaking green investments include high cost, access to financing and availability of technology which are either too costly or unproven,” he noted.

Doris said Malaysia’s NETR outlines ambitious plans to achieve net zero emissions. Numerous opportunities exist for greening the economy, including Tenaga Nasional Bhd’s (TNB) initiative to decarbonize the grid and the growing use of sustainability-linked financial instruments in the financial sector.

“The transportation sector also offers significant potential for greening. As the electric vehicle (EV) cars are gaining traction, there is also room for growth in electric buses, trains, and bicycles. Additionally, creating more walkable cities can contribute to reducing carbon emissions.

“However, challenges remain. A lack of expertise and skilled workforce in sustainability-related fields hinders widespread adoption of green technologies and practices. Moreover, carbon reporting can be resource-intensive, particularly for Malaysia’s 900,000 small and medium enterprises (SMEs),” she added.

With an ageing population, Malaysia is also focusing on the silver economy—leveraging the potential of the elderly as a source of economic growth.

This includes promoting healthcare, wellness, and financial services tailored to the needs of the elderly, as well as encouraging lifelong learning and active ageing.

The silver economy is expected to create new opportunities in various sectors, from healthcare to real estate.

Yeah suggested that Malaysia can further prepare its economy by tapping into the female labour force, which currently has a participation rate below its peer countries, and gradually raising the retirement age to 65.

He also stressed the importance of establishing old age social protection schemes and planning for higher spending on healthcare and aged care, where private sector investment can play a critical role in contributing to overall GDP growth.

Nevertheless, economic reform is expected to continue to be a key driver of Malaysia’s growth, with a focus on enhancing productivity, improving governance, and fostering innovation.

The government’s Shared Prosperity Vision (SPV) 2030 aims to ensure that all Malaysians benefit from the country’s economic progress, addressing income disparities and promoting inclusive growth.

Yeah also noted that Malaysia needs to expand the infusion of technology across all sectors and raise investment in R&D and innovations to escape the ‘middle-income trap’.

According to a recent World Bank report, these steps are crucial for ensuring that Malaysia continues on its path toward becoming a high-income nation.

Meanwhile, Doris highlighted that while the country faces challenges with brain drain, there is an increasing need to consider attracting foreign workers for both blue-collar and white-collar roles to help drive various industries.

She emphasised that this should be done cautiously to ensure that local workers are not put at a disadvantage.

“Foreign workers should be brought in as a complement to the domestic workforce, supporting continued economic growth.

“As the population ages, government spending on healthcare and social welfare will increase. Ensuring robust economic growth and government revenue is essential to sustain the care economy,” said Doris.

Source: NST

Malaysia’s major economic transformation since 1957

Malaysia is on track to see more than RM50 billion in foreign direct investments (FDI) by 2030, in the absence of any unexpected economic shocks.

UOB Global Economics and Markets Research in a note today said it anticipates FDI inflows, in ringgit terms, to sustain its average long-term 15-year growth trend of 3.6 per cent per annum in the medium term.

This will translate into absolute annual FDI inflows of around RM51.6 billion (or about US$13.5 billion) by 2030.

“Our projection is supported by the 2024 year-to-date performance of FDIs, whereby Malaysia has attracted a total of US$ 3.1 billion FDI inflows in the first half of 2024 (1H24), which was 17.9 per cent higher than US$2.6 billion recorded in 1H23,” it added.

UOB Research said, despite a challenging and complex global environment, Malaysia’s investment landscape remains robust, and prospects are encouraging with a positive FDI outlook in the short-to-medium term.

Between 2021 and Mar 2024, the Malaysia Investment Development Authority (Mida) has approved almost RM1 trillion worth of investments with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments amounted to RM461.8 billion (46.6 per cent) and primary sector investments totaling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, while about 21.1 per cent are in the planning phase and the balance of 1.6 per cent remain unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31, this year.

UOB Reserach said various catalytic projects in the national masterplans, such as New Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap, will further enhance opportunities for investments in Malaysia’s high-growth high-value (HGHV) sectors.

Johor-Singapore Special Economic Zone (JS-SEZ and the country’s five regional economic corridors will also work to bring in investments. along with Malaysia’s efforts to grow its trade ties.

To date, Malaysia has implemented 16 Free Trade Agreements (FTAs, seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership (RCEP), Indo-Pacific Economic Framework (IPEF) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The report did however caution that the possibility of expanded universal US tariffs, export controls and secondary sanctions to countries that are part of China “Plus One” Strategy remains a key risk particularly for Malaysia and other Asean members who have benefited from diverted “China-US” flows.

The United Nations Trade and Development (UNCTAD) in its World Investment Report 2024 said the global environment for international investment “remains challenging” in 2024 due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting some multinational enterprises to stay cautious on overseas expansion.

Source: NST

Malaysia on track to bring in more than RM50b in FDI by 2030 – UOB Research

The uptrend in the semiconductor industry and the rollout of various construction projects in the second half (2H) of 2024 are expected to continue supporting Malaysia’s economic growth, said MIDF Amanah Investment Bank Bhd.

In a research note, MIDF also anticipated the export recovery to continue in 2H 2024, driven by foreign demand for both electrical and electronics (E&E) and non-E&E products.

“Export growth accelerated to 12.3 per cent year-on-year (y-o-y) in July 2024, marking the fastest growth in more than 1.5 years, driven by stronger domestic exports (18 per cent y-o-y), supported by higher shipments of palm oil and palm oil products, as well as rebounds in exports of E&E and petroleum products.

“By destination, exports grew faster to major destinations except China and Hong Kong,” it said today.

MIDF said Malaysia’s gross domestic product (GDP) growth accelerated to 5.9 per cent y-o-y in the second quarter (2Q) of 2024, marking the fastest expansion in six quarters, compared to 1Q 2024 of 4.2 per cent y-o-y.

It noted that the great GDP performance also surpassed the advance estimate of 5.8 per cent y-o-y.

“For 1H 2024, the economy expanded 5.1 per cent y-o-y, stronger than the 3.0 per cent y-o-y in 2H 2023.

“The robust performance was driven by sustained resilience in domestic demand, improvements in manufacturing activities, and recovery in external trade,” it said.

Therefore, MIDF predicted that Malaysia’s economic growth to grow stronger at 5.0 per cent this year, given the robust growth in 2Q 2024.

“Despite the more optimistic view on the domestic economic picture, we will keep a close look at several factors which could derail the growth outlook, such as weaker growth in China, recession risk in the US, the recent escalation in geopolitical tensions, and potential disruptions to the global supply chain and trade flow.

“Although inflation has been generally under control, the potential uptrend in price pressures from planned policy changes could hurt consumer sentiment and their discretionary spending,” it said.

Source: Bernama

Malaysia’s growth set to be buoyed by semiconductors and construction projects in second half of 2024, MIDF says

UOB today signed a Memorandum of Understanding (MOU) with Invest Johor, the state’s investment agency, to drive investment opportunities into the upcoming Johor-Singapore Special Economic Zone (SEZ).

UOB also signed a second MoU today with China’s Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

Under the partnership with Invest Johor, UOB will collaborate with the state investment agency to jointly promote and facilitate investment opportunities into the Johor-Singapore SEZ. This will be done by targeting high value, high technology and high impact investments from priority sectors such as electrical and electronics, advanced manufacturing and engineering, digital economy, green economy, life science and med-tech, electric vehicles, aerospace and port and logistics.

Notably, a “green lane” will be jointly established, with UOB designated as a partner to assist with foreign direct investments in these prioritised sectors to accelerate their investments. UOB will also provide advisory and banking services to companies looking to invest in Johor as part of the MoU.

The MoU was signed by Invest Johor’s CEO, Natazha Bin Hariss and UOB Malaysia’s CEO, Ng Wei Wei, at the Asean Conference held in Singapore today. The ceremony was witnessed by Johor Menteri Besar, Datuk Onn Hafiz Ghazi, and UOB’s deputy chairman and CEO Wee Ee Cheong.

Onn Hafiz said, “From our engagements with key stakeholders of the Johor-Singapore SEZ, expectations are very high. This will require us to step up our game, provide excellent service and ensure that we not only meet, but exceed these expectations. Today’s MoU between Invest Johor, the state’s lead investment agency and UOB, one of Asean’s leading financial institutions with over seven decades of experience in assisting investors in Malaysia, is one example of our seriousness and focus in improving the investor experience in Johor.”

Wee said, “UOB is pleased to work with like-minded partners to support businesses in navigating the diverse Asean region. Our strategic partnerships with regional government investment agencies and trade associations have successfully connected enterprises such as Lingang Group to cross-border investment opportunities, benefitting businesses across multiple sectors. We remained committed to serving as an effective gateway to the region for companies expanding into the region.”

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

Source: The Sun

UOB partners Invest Johor to drive foreign direct investments into Johor- Singapore SEZ

Malaysia and Saudi Arabia discussed efforts to further enhance bilateral relations today, according to Foreign Minister Datuk Seri Mohamad Hasan.

In a Facebook post, he mentioned that the discussion took place during a courtesy visit by Saudi Arabia’s Minister of Haj and Umrah, Dr. Tawfiq Fawzan Al-Rabiah, along with his delegation, at Wisma Putra, Putrajaya.

He stated that the topics discussed included increasing investments in Malaysia, adding more flights between Kuala Lumpur and Jeddah, and increasing the number of scholarships for Malaysian students to study in Saudi Arabia.

He also mentioned that the Saudi-Malaysia Consultative Council has been agreed upon to be co-chaired by the Foreign Ministers of both countries.

Source: Bernama

Malaysia, Saudi Arabia Discuss Strengthening Ties and Investment

The Sabah government is focusing on efforts to increase its visibility among foreign investors towards achieving its goal of becoming an industrial state by 2040, according to Sabah Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe.

Speaking to Bernama on the sidelines of The Business Show Asia here, he said that besides participating in more conferences and exhibitions, the state government is also ensuring the local manpower and facilities are industry-ready.

“I found out through programmes like today’s, at the international level, that many people actually don’t know about Sabah and what we can offer. So it is important for us to increase Sabah’s visibility.

“Another one is training. If we want high quality investment, we need high quality manpower, so we are working with several training institutes to train Sabahans, so that they can contribute to the industry that we are going to tap into such as the green sector and renewable energy,” he said.

Phoong said that to increase its visibility, Sabah will also introduce two new industrial parks in Kota Belud and Kimanis, to add to the already established three major parks — Kota Kinabalu Industrial Park (KKIP), POIC Lahad Datu, and Sipitang Oil and Gas Industrial Park (SOGIP).

“These developments are part of our broader strategy to expand our industrial infrastructure and support economic diversification and industrialisation,” he said, adding that the state had total investments of more than RM11 billion in 2022 and 2023.

At the event, Phoong witnessed the signing of a letter of intent (LoI) between Sabah’s KKIP Aviation Training Centre (KATC) and Singapore’s DroneDash Technologies for collaboration in training on drones for cargo delivery services.

KATC chief executive officer Datuk Dr Mohd Dali Isa said that through the future collaboration, DroneDash will provide its expertise to train Sabah youths at KATC as drone engineers, technicians and pilots “so that they know how to operate relatively large-scale drones for cargo handling”.

“For now we have not yet determined the number of trainees who will be involved in this programme which is still in the planning stage,” he said.

This initiative will equip the local workforce with essential skills, support the existing industrial parks and contribute to the development of two new industrial parks in Sabah, driving innovation to the state.

Meanwhile, Phoong also witnessed the memorandum of agreement (MoA) signing between Hong Xin Food Sdn Bhd and Alkemal Singapore Pte Ltd on the distribution of the former’s Tem Tem Tempeh Chips in Singapore’s market.

The chips available in original and Tadong (red rice) variations will now be available at 30 Sheng Siong Supermarket outlets, a leading retail chain in the republic.

Hong Xin Food founder Cherry Ding Chew Li said she hoped the agreement will help to increase visibility of the brand and products, as well as attract more investors.

“We are a young startup opened in December 2021 during the pandemic, started manufacturing from home and with more demand, we already have a factory in Kota Kinabalu, with small-scale production for now. We hope with more investors, we can increase our production and export to more countries,” she said.

Also present was Malaysia’s High Commissioner to Singapore Datuk Dr Azfar Mohamad Mustafar.

Source: Bernama

 

Sabah plans to increase its visibility, attract more FDI