The Ministry of Investment, Trade, and Industry (MITI) will continue its efforts to enhance trade, attract investments, and advance the country’s industrial sector.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, citing advance estimates from the Department of Statistics Malaysia (DoSM), said that Malaysia’s economy grew by 5.8 per cent in the second quarter of 2024, up from 4.2 per cent in the previous quarter.

This growth is the highest since the fourth quarter of 2022 (7.4 per cent), he said in a post on X on Friday.

He said for the first half of 2024, GDP increased by 5.0 per cent compared to 4.1 per cent in the same period last year.

The estimated growth for the second quarter is in line with recent indicators such as the Industrial Production Index, which rose by 6.1 per cent and 2.4 per cent in April and May 2024 respectively compared to the previous year.

The manufacturing sector also expanded to 4.7 per cent from 1.9 per cent in the previous quarter.

Malaysia’s trade has consistently grown since January 2024, recording an 8.7 per cent year-on-year increase in June 2024 to RM237.81 billion.

Exports registered growth for the third consecutive month, rising by 1.7 per cent to RM126.05 billion.

The trade surplus, which amounted to RM14.29 billion, marks the 50th consecutive month of surplus since May 2020.

Source: Bernama

MITI continues efforts to enhance trade, draw investments in industrial sector

The Ministry of Investment, Trade and Industry (MITI) maintains the investment growth projection at 5.0 per cent this year despite the domestic economic recovery environment.

Its Minister Tengku Datuk Seri Zafrul Abdul Aziz said the target, set by the Malaysian Investment Development Authority (MIDA), is in line with the Gross Domestic Product (GDP) growth target.

“In the first quarter of 2024 (1Q 2024), we have made an announcement, an increase (in investment) of 13 per cent compared to the same quarter last year. For now (the investment target) is officially at 5.0 per cent, but we will review this based on the pipeline.

“At the moment, the 5.0 per cent (target) is based on the correlation with the GDP target of between 4.0 and 5.0 per cent…but we will see, there are things that are out of our control,“ he told reporters after presenting the ministry’s report card for the second quarter of 2024 (2Q 2024) here, today.

Moving forward, he said the digital and green economy sectors will be the key drivers of Malaysia’s economic growth, apart from the services sector.

“The digital economy has already surpassed our previous (growth) target of 22.6 per cent, growing at 23 per cent as of 2Q 2024, and we have revised the target up to 25.5 per cent of GDP by 2025,“ he said.

Regarding the impact of the strengthening ringgit against the US dollar, Tengku Zafrul said the ringgit is not the only primary indicator in investor evaluations.

He pointed out that investors would consider long-term prospects and something reliable in making their decisions.

He said the situation is different when it involves investments in the capital market, whereby fluctuations in the ringgit would have a quick effect.

When foreign investors decide to invest in the country, it would take about two years or more to see the impact, he added.

Meanwhile, on Malaysia’s intention to join the BRICS (Brazil, Russia, India, China and South Africa) intergovernmental organisation, Tengku Zafrul said the discussion is currently led by the Ministry of Foreign Affairs (MOFA) as the pact is not an economic bloc per se like other economic pacts joined by Malaysia.

“For now, BRICS is more like a diplomatic grouping. In the future, if there any plans to include trade agreement or economic cooperation (in the pact), then MITI will be involved (in a bigger role).

“At this stage, MITI is not leading it, usually we will lead like other blocs as the economic element for this bloc is more indirect. Eventually, we will lead it as at the end of the day, trade and investment cooperation will make sense for it to be sustained. But for now we are in the team led by MOFA,” he said.

Source: Bernama

MITI maintains investment growth projection at 5.0 % for 2024 – Tengku Zafrul

Sarawak’s stable political climate and transparent governance will give confidence to investors who wish to establish and grow their ventures in the state, said Datuk Amar Awang Tengah Ali Hasan.

“We provide a business-friendly environment. Our clear legal framework and supportive policies are designed to support investment and improve ease of doing business,” said the Deputy Premier and Minister for International Trade, Industry and Investment.

He said this in his welcoming address at the ‘Invest Series Sarawak – Unfolding Its Business Potential’ programme at the Malaysian Investment Development Authority (MIDA) headquarters in Kuala Lumpur today, where Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was the guest of honour.

The comprehensive incentives offered by the federal and Sarawak governments such as tax holidays, investment allowances, as well as competitive electricity and water tariffs make Malaysia, including Sarawak, an attractive investment destination, added Awang Tengah.

“These incentives reflect our commitment to create a business-friendly environment and foster sustainable development.

“Sarawak is a beacon of economic opportunity within the heart of Southeast Asia and has been making significant strides in sustainability. She is a jewel in the crown of Malaysia, bestowed with rich natural resources, biodiversity and cultural heritage.

“Our growth is driven by strategic initiatives and a commitment to sustainable development, which integrates with our long-term plan known as the Post Covid-19 Development Strategy (PCDS) 2030. We aim to be a high income and developed region by 2030,” he said.

Being strategically located on Borneo Island, he added, Sarawak provides excellent access to the booming Asian market, comprising about 60 per cent of the world population.

He said this prime geographic position makes Sarawak an ideal gateway to penetrate the broader market in Asia and beyond.

“Our land mass of 12.4 million hectares is richly endowed with natural resources, from vast forest, arable agriculture land, extensive mineral deposits to large reserves of petroleum and natural gas, which have yet to be fully tapped.

“These resources present numerous investment opportunities, which also provide a solid foundation to grow and expand the six economic sectors identified under the PCDS 2030. These sectors are manufacturing, agriculture, forestry, tourism, mining and services.

“We will ensure this natural wealth is managed responsibly through sustainable practices between economic development, societal progress and environmental stewardship,” he stressed.

He said Sarawak aims to be a regional green energy powerhouse, leveraging on 20GW hydropower potential from a vast network of rivers.

“We have made significant strides in harnessing hydropower potential. Major hydropower projects, namely Batang Ai, Bakun and Murum, have contributed more than 60 per cent to our energy mix.

“We are exploring innovative ways of harnessing energy using cascading dams, solar, wind, biomass, sustainable fuel and hydrogen. These create a dynamic environment for investors to invest in sustainable and renewable energy solutions.

“In addition, renewable energy has become a major attraction for investors seeking to reduce their carbon footprint,” he explained.

He said Sarawak is also poised to lead in the emerging hydrogen economy and the state’s hydropower provides a sustainable and affordable energy source that enables Sarawak to become a hydrogen hub.

This new economy, he pointed out, offers investment opportunities, from developing advanced electrolysers and fuel cells to creating sustainable storage solutions and transportation networks.

He highlighted that Sarawak is also a major player of Carbon Capture, Utilisation and Storage (CCUS) industry in Southeast Asia, and is the first in Malaysia to pass the laws which enable CCUS and carbon related activities to be carried out in Sarawak.

CCUS is an enabler for low-cost low-carbon hydrogen production that supports decarbonisation efforts.

Besides, he added, Sarawak is at the forefront of digital revolution and will continue to expand digital infrastructure, enhance digital skills and innovation to create an integrated ecosystem and vibrant technology sector.

“We offer investors a conducive environment for pioneering new technologies and solutions such as digitalisation, automation, artificial intelligence and internet of things (IOT).”

Awang Tengah also pointed to strategic infrastructure development as a key pillar to enhance connectivity and support economic growth.

“We are upgrading the transportation networks including roads, ports and airports as well as utilities and telecommunication for more efficient business operations within Sarawak and beyond.

“We have developed industrial parks equipped with basic infrastructure and facilities such as Sama Jaya Free Industrial Zone, Samalaju Industrial Park and Demak Laut Industrial Park to drive economic growth.”

Awang Tengah also said that skilled workforce is a critical asset to attract investment.
“Our young, well-educated and trainable workforce not only meets the demand of industries but is adaptable to future needs.

“Therefore, we are dedicated to building a stronger, resilient and innovative community through talent development. We are collaborating with international education institutions and industry partners to unlock the full potential of our people,” he said.

He also said Sarawak offers a compelling value proposition across various economic sectors aligned with Sustainable Development Goals and ESG principles.

“These principles are integral parts of our development strategy. Therefore, unfolding a sustainable future for Sarawak is about showcasing balanced economic growth with environmental stewardship and inclusive future,” he added.

Sarawak will continue to have close operation and collaboration with the federal government, particularly with the federal Ministry of Investment, Trade and Industry (Miti) and MIDA, he said.

“Finally, I invite you to explore the investment opportunities and to be part of our vision for a prosperous, inclusive and sustainable Sarawak,” he told the audience.

Source: Borneo Post

Political stability, good governance make Sarawak attractive for investment, says Awg Tengah

Kedah, particularly in Kulim, has witnessed the highest influx of foreign investments for the manufacturing sub-sector in the country in the first quarter of this year (1Q2024), according to Knight Frank Malaysia executive director of land and industrial solutions Allan Sim.

In his presentation on the overview of the industrial sector in conjunction with the release of Knight Frank’s The Real Estate Highlights 1st Half of 2024 report on Wednesday, Sim highlighted that Kedah recorded a significant RM30.98 billion worth of foreign investment activities in 1Q2024. This is followed by Klang Valley (RM3.27 billion), Johor (RM2.33 billion), Penang (RM1.82 billion) and Sarawak (RM1.3 billion).  

“International orders are coming in fast. And manufacturers could not get to their sites in Penang on time. Hence, they head to the nearest state, that is Kedah,” explained Sim, adding that the Kedah Express Construction Permit (E10) initiative has significantly expedited the process for investors.  

According to the report, approved foreign investments in the industrial sector saw an estimated 203% surge year-on-year (y-o-y) to RM38.15 billion for 1Q2024. Domestic investments on the other hand, recorded an estimated 58% increase y-o-y to RM4.79 billion.

The report also indicated that major investments in data centres, notably by Google in Klang Valley, underscore the sector’s growth.

In Johor, rapid growth in the data centre market is driven by its proximity to Singapore as well as the launch of the Johor-Singapore Special Economic Zone in January 2024.

Meanwhile, other states such as Penang, Sabah and Sarawak continue to see growth in investment value in the industrial sector.

Additionally, there have been an increase in transaction volume and value for the sector in Klang Valley, Penang, Johor, Sabah and Sarawak in the first quarter, with detached factories in the Klang Valley seeing a significant rise of about 44% to an estimated RM2 billion for 1Q2024, according to Sim.

Overall, Malaysia’s industrial production index remained stable in 1Q2024 at 130.4 points — a 3.3% annual growth compared to 1Q2023 (2.9%). All sub-sectors recorded growth, led by electricity (8.9%), mining (5.9%) and manufacturing (2.1%), according to the report.  

Trade performance in the country continued its upward trajectory in 1Q2024, growing by 7.1% to RM690.6 billion, with a trade surplus of RM34.22 billion, reflecting global trade recovery.

Exports also increased by 2.2% to RM362.4 billion compared to 1Q2023, driven by higher exports of manufactured and mining goods.

“The manufacturing sector is forecast to grow by 3.5% in 2024, supported by a rebound in export-oriented industries and sustained growth in the domestic-oriented cluster. The electrical and electronics (E&E) sector is expected to recover in 2024, led by an upswing in the global technology cycle,” Sim said.

He added: “The ‘flight-to-quality’ and ‘flight-to-sustainability’ trends are expected to shape the future development of logistics space in Klang Valley. With higher development costs associated with prime logistics space, market rents are anticipated to experience a marginal increase in the short term.”

Meanwhile, the report provided other highlights from other real estate sectors such as the office sector, which is seeing growing demand for co-working and flexible office spaces, reflecting changing work patterns and preferences.

The retail industry is showing positive momentum. Trends indicate a surge in digital integration and experiential offerings, with retailers adapting to changing consumer preferences and enhancing in-store technologies to boost engagement and sales.

As for the hospitality sector, the luxury hotel segment is set for significant growth, with new developments dominated by international brands. Rising average occupancy rates (AOR) and average daily rates (ADR) indicate a robust recovery in the hospitality sector.

For the residential market, the Klang Valley saw 3,413 units sold for RM2.8 billion, marking an increase of 19.2% in volume and 19.3% in value, which indicates a trend towards luxury high-rise residential units.

Source: The Edge Malaysia

Kedah records highest foreign investment activity in industrial sector in 1Q2024, says Knight Frank

Malaysia aims to enhance economic cooperation opportunities through the BRICS platform as an alternative to reducing dependence on traditional markets.

In a written reply, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government is aware that reliance on traditional markets risks long-term economic development.

He explained that traditional markets, such as the United States and European countries, are increasingly introducing new unilateral trade policies and regulations, posing challenges for developing countries like Malaysia.

“Therefore, to achieve the aspirations of sustainable economic development, Malaysia must not only strengthen economic cooperation with existing trading partners but also penetrate new high-impact markets and establish economic partnerships with non-traditional trading partners,” he said in response to Datuk Seri Hamzah Zainudin (PN-Larut).

Hamzah had inquired about Malaysia’s stance on BRICS to reduce dependence on the United States and European markets.

Zafrul added that the government will always ensure that its neutral and non-aligned policy with any economic power remains unaffected.

“Good trade and investment relations with traditional trading partners such as the United States, the European Union, and the United Kingdom will also be maintained.”

Previously, Prime Minister Datuk Seri Anwar Ibrahim said the government had conducted a detailed study on all the implications of Malaysia joining the intergovernmental organisation BRICS.

During the Prime Minister’s Question Time in Dewan Rakyat, Anwar mentioned that Malaysia’s views differ from those of other BRICS member countries on specific issues and should not hinder the country’s participation.

This follows his announcement on June 18 that Malaysia will soon begin the process of joining BRICS.

He said Malaysia, in principle, has agreed to join BRICS and that the matter has been brought to the Foreign Ministry for further study.

BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).

Source: NST

Malaysia eyes economic growth through BRICS collaboration says Zafrul

MALAYSIA is on track for further economic growth this year, following a 4.2 per cent upturn in the first quarter of 2024, as announced by Bank Negara Malaysia (BNM) on May 17.

Free Malaysia Today reports that improvements in productivity in pivotal sectors of the economy — palm oil, manufacturing, services and oil and gas (O&G) — have fueled this growth.

Other contributing factors to the country’s economic surge include higher household spending, growth in employment and wages, higher capital spending and a rebound in exports.

An analysis by Ratings Agency Malaysia also projected a growth rate of 5.5 per cent in 2024, up from 3.7 per cent recorded in 2023.

Here is a closer look at how various sectors are contributing to Malaysia’s economic output.

PALM OIL

Palm oil is the cornerstone of Malaysia’s agricultural output and global trade, positioning the country as the world’s second-largest producer of the commodity.

It is also a major contributor to Malaysia’s gross domestic product (GDP) growth.

In 2022, Malaysia exported around 15 million metric tonnes of palm oil and palm oil-based products valued at around RM137 billion. The sector contributes about RM40 billion annually to the GDP.

MANUFACTURING

The manufacturing sector, accounting for RM1.2 trillion of the GDP, is one of the largest contributors to the Malaysian economy — it includes the chemical, automotive and electrical and electronics (E&E) sub-sectors.

The chemical sub-sector is expected to add RM40 billion to the GDP by 2030, following the launch of Malaysia’s Chemical Industry Roadmap 2030 (CIR2030) last August.

“With the CIR deviated policies and strategies put in place, this will move up the value chain with the high value products and would add additional RM40 billion by 2030,” said Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The automotive sub-sector contributes about RM40 billion to the GDP annually, with homegrown brands like Proton and Perodua leading the way.

With almost 30 producers and more than 600 component manufacturers, the Malaysian automotive industry is also among the largest in Asia.

As a leading player in Southeast Asia, the E&E industry is the backbone for Malaysia’s manufacturing sector. The Malaysian Investment Development Authority (Mida) reported that it accounted for 5.8 per cent of the GDP in 2023.

It aims to contribute RM120 billion to the GDP and RM495 billion in export earnings by 2025.

SERVICES

The services sector is the largest contributor to the economy, accounting for close to 55 per cent of GDP growth annually.

It includes tourism, finance and information and communications technology (ICT).

The tourism sub-sector brought in RM75 billion revenue in 2023, while the market for ICT services was valued at RM121.72 billion, according to various global databases.

The Malaysian finance sub-sector is also stable. BNM’s Financial Sector Blueprint 2022-2026 outlines efforts to foster market dynamism and support sustainable development objectives, with a continued focus on its monetary and financial stability mandates.

OIL & GAS

Of Malaysia’s many natural resources, O&G continues to be the mainstay, contributing around RM300 billion to the country’s economy.

While Petronas is the main driver of this sector, major oil companies like Exxon-Mobil and Hess Corporation of the US, PTT Exploration and Production Public Co Ltd of Thailand and EnQuest of the UK have invested in the upstream segment of the O&G sector.

Over the years, the sector has weathered global market volatilities, remaining a key source of revenue and employment for Malaysians. It significantly contributes to Malaysia’s economy at both national and state levels.

In states such as Sarawak, Sabah, Terengganu, and Johor, Petronas has trained local vendors and brought substantial economic benefits to these communities.

DRIVING THE ECONOMY TOGETHER

Malaysia’s rapid economic growth is driven by the strong partnership between the federation and the states, with national policies designed to ensure each state benefits from the country’s diverse resources.

While oil is largely extracted in or off the coast of a few states, even non-producers of the commodity share in its benefits.

In fact, each state contributes equally to the economy in its own way — Penang and Selangor lead the manufacturing sector, while Sabah, Sarawak, and Johor are the largest producers of palm oil.

Together, these sectors bolster the strength and stability of the nation’s economy.

In conclusion, all Malaysians play a role in the country’s economic growth and share in its benefits.

Source: NST

4 sectors driving the Malaysian economy

Sarawak has attracted RM4.2 billion in approved investments in the first quarter of 2024 (1Q2024), a key part of its national growth story following the launch of the New Industrial Master Plan (NIMP) 2030.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this ranks the state at fourth place in terms of value of investment flow.

He said the key achievements since NIMP 2030’s launch almost a year ago include approved investments valued at RM329.5 billon recorded by Malaysia in 2023, potentially creating almost 130,000 jobs.

“(We also achieved) approved investments of RM83.7 billion for 1Q2024, up 13% year-on-year (y-o-y), and out of this, more than 56% was approved foreign investment.

“The total investments approved will create 29,000 new jobs for Malaysians, a 14.6% increase y-o-y,” he said in his remarks at the Mida Invest Series titled “Sarawak unfolding its business potentials” here Wednesday.

Zafrul said many electrical and electronics and chemicals companies have established their presence in Sarawak, including Taiyo Yuden Sdn Bhd, OCI Co Ltd, Melexis and X Fab Sarawak Sdn Bhd.

“Together with many other domestic and foreign investors, these investments have created valuable spillover opportunities for small and medium enterprises and our fellow citizens in Sarawak, proudly contributing to the vibrant economic development of the state and nation,” he said.

The minister also said Sarawak’s ambitious green energy agenda, which aims to decarbonise its transport system and transition towards a low-carbon economy, is highly complementary to the national-level strategy on green investments, NIMP 2030 and National Energy Transition Roadmap (NETR).

He also revealed that from 2021 to March 2024, about 80% of manufacturing projects approved had been implemented.

“The high implementation rate has been made possible through initiatives such as the Invest Malaysia Facilitation Centre (IMFC) at the Malaysian Investment Development Authority, with support from key agencies like the Royal Malaysian Customs, Immigration and Inland Revenue Board, to ease investors’ journey in Malaysia,” he said.

He added that the Investment, Trade and Industry Ministry has been focusing on revamping the country’s industrial and investment ecosystem, including incentives, talent, infrastructure, as well as regulatory, procedural and institutional mechanisms.

Source: Bernama

Sarawak recorded RM4.2b investments in 1Q2024, targeting more green investments — Zafrul

The Look East Policy of the past is now replaced by ‘Cooperation with the East’, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the new policy has been discussed with Prime Minister Datuk Seri Anwar Ibrahim and compared to the previous policy, it is now expanded to include China with various other initiatives.

“The prime minister has agreed to change the Look East Policy with ‘Cooperate with the East’.

“The previous policy only included South Korea and Japan. Now, China, South Korea, and Japan are our core partners, not just for TVET (technical and vocational education and training) but for other developments”, he said in a speech at the flag-off ceremony for 56 participants of TVET initiative programmes by the Malaysian-China Institute (MCI) here today.

Zahid, who is also Rural and Regional Development Minister, believes that such a cooperation with these countries may lead to Malaysia becoming a new economic ‘Asian tiger’

“The Look East policy is no more”, he declared.

This initiative is among the results of Zahid’s official visit to China from May 22 until June 1 and an official visit by Chinese prime minister Li Qiang to Malaysia from June 18 to 20.

Also present at the ceremony was Port of Tanjung Pelepas (PTP) head of human resources Jaizal Kamar Jalaludin, National Association of Skilled Workers (PKPB) head Rizan Hassan, and Tang International Education Group chief executive officer Li Jinsong .

Also present were Ipoh Timor member of parliament Howard Lee, Malaysian Indian Transformation Unit chairman and Batu MP P. Prabakaran and representatives from Chery and China Eastern Airlines.

In his speech, Zahid highlighted the programmes under MCI which are a realisation of China’s Belt and Road Initiative.

While the original allocation made by the Chinese government for these programmes was only for around 2,000 particpants, which include both students and teaching staff, additional allocations have pushed it to more than 5,000.

Zahid said the increased allocations allows for Malaysians of all ethnic backgrounds to be given an opportunity to pursue advanced TVET education in cutting-edge technologies.

“The reason? To ensure equity for students to receive hands-on instruction.”

The 56 participants sent off today will arrive at Zhejiang International Maritime College, Yantai Vocational College and Tangshan University in China for various training programmes involving port activities and electric vehicle technology.

Source: NST

‘Look East’ is no more, now it is ‘Cooperation with the East’, says Zahid

Invest Selangor Bhd has indirectly generated 476,886 jobs and RM218.14 billion in manufacturing investments for the state since its inception in 1999.

In a post on X, Menteri Besar Dato’ Seri Amirudin Shari noted the state investment arm has attracted 6,496 manufacturing projects in Selangor in this period.

He vowed the state would maintain its economic momentum and reiterated the government’s goal of contributing RM500 billion to the national economy in the coming years.

“Invest Selangor’s 25-year journey demonstrates our relentless drive. We will not rest; Selangor remains the economic powerhouse of Malaysia.

“In 2023, we achieved a record RM406.1 billion gross domestic product (contribution), outpacing the national growth rate, but we’re not stopping there.

“By enhancing our manufacturing capacity and maintaining an annual investment of no less than RM12 billion since 2018, Selangor is becoming a strategic hub for Southeast Asia and beyond,” he said.

On Monday, Invest Selangor celebrated its silver jubilee, marking 25 years since its inception and its journey in attracting investment and helping local and international businesses establish a base in the state.

Speaking at the ceremony then, Amirudin set an ambitious target of contributing RM500 billion to the national economy within three years, but warned the state not to rest on its laurels.

In his post today, the Menteri Besar reiterated the progress of the First Selangor Plan, with 33.7 per cent of the main projects and initiatives completed as of June.

The remaining projects are at various stages of implementation, including the Integrated Development Region in South Selangor, Sabak Bernam Development Area and the new Shah Alam Sports Complex.

“Our collaboration with the private sector ensures smooth engagement with state and local agencies, paving the way for a prosperous future. Together, we can achieve anything,” he said.

Source: Selangor Journal

MB: Invest Selangor has created over 476,000 jobs, drawn RM218 bln in investment