China has invested more than RM19.4 billion, mainly in solar, steel and wood-based manufacturing projects in Sarawak, leading to the creation of more than 10,000 jobs for the local population and spin-offs for the local economy.

Sarawak Premier Tan Sri Abang Johari Tun Openg said the investments from the Great Wall nation made a significant impact on the economic growth and development in this region.

“These investments have enhanced industrial capabilities while fostering sustainable development and innovation,” he said in his speech in conjunction with the Malaysia-China Summit 2024: Networking Engagement Series in Sarawak here today.

His speech was read by Sarawak Deputy Premier and International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hassan.

Abang Johari said China is one of Sarawak’s key trading partners, with strong trade, investment and collaborative projects across sectors.

He said that in 2023, Sarawak’s exports to China, namely liquefied natural gas, edible oils and basic metal, were worth RM18.8 billion, while imports, namely machinery, manufactured goods and consumer products, amounted to RM9.9 billion.

“In fact, the economic collaboration between China and Sarawak continue to grow with China’s involvement in hydropower development, namely Bakun, Murum and Baleh, which supports our goal to be the Asean powerhouse,” he added.

Source: Bernama

China’s investments in Sarawak reach RM19.4 billion, creating over 10,000 jobs – Abang Johari

Malaysia is a safe haven for investments, Prime Minister Datuk Seri Anwar Ibrahim said today.

In his keynote address at the Nikkei Forum 29th Future of Asia, Anwar said investors particularly those in the manufacturing sector, were looking for a safe haven amid brewing tensions around the world.

This is exacerbated by trade restrictions especially where microchips are concerned.

“I dare say that Malaysia fits the bill (of a safe haven), thanks to our stability, skilled labour force, and our economic and geopolitical nonalignment,”

“The proof is in the numbers. In 2023, the state of Penang, Malaysia’s semiconductor hub, attracted US$13 billion in Foreign Direct Investment, exceeding the total for the previous seven years combined,” he said in his speech at the forum.

The annual Nikkei Forum brings together the movers and shakers from Asia Pacific to discuss the region’s role on the global stage.

The theme of this year’s Nikkei Forum is “Asian Leadership in an Uncertain World”.

Anwar said economic policymaking in the 2020s cannot be divorced from three global megatrends, namely geopolitics, digitalisation and climate change.

“Hence, Malaysia has recently unveiled three key policy frameworks to provide greater certainty, clarity and transparency on the future of the economy.”

The first of these policy frameworks is the Madani Economy framework, which outlines strategies to drive sustainable and inclusive development.

“The second major policy that Malaysia has introduced is the New Industrial Master Plan 2030, which represents a whole-of-government approach to industrial policy.”

The success of this plan, Anwar said, will bring Malaysia a step-closer to achieving high-income status by the end of this decade.

“Finally, the National Energy Transition Roadmap is Malaysia’s comprehensive strategy to ensure the country meets its commitment to achieving net-zero emissions as early as 2050.”

This entails implementing initiatives in energy efficiency, renewable energy, hydrogen, green infrastructure and carbon capture, utilisation and storage.

“These strategic blueprints are indicative of Malaysia’s role in building Asian leadership in the economic, digital and sustainability domains.”

In his speech, Anwar also paid tribute to Japan.

“Etched in our memory is the humble beginnings in Penang during the 1970s, when companies, such as Clarion and Hitachi, were part of the ‘Eight Samurai’ that is the first wave of electrical and electronic manufacturing investment into the country.

“Active Japanese FDI has been a crucial factor in the success of Malaysia’s semiconductor industry, and this is true even today, with recent large-scale investments coming in from Kaga Electronics and Ferrotec.”

Malaysia’s relationship with Japan has grown from strength to strength, said Anwar.

In December, Anwar and Japanese Prime Minister Fumio Kishida upgraded bilateral ties to a Comprehensive Strategic Partnership.

The two countries also agreed to cooperate in maritime security.

“Japan and Malaysia share a common vision for Asia’s future based on stability, connectivity and cooperation in support of a rules-based order, and I am confident that our relations will only grow from strength to strength from now on.”

This is Anwar’s first keynote address at the event as Prime Minister.

Source: NST

PM: Malaysia a safe haven for investors

Prime Minister Datuk Seri Anwar Ibrahim’s second visit to Japan in six months will be brief but packed with engagements with captains of industry in the world’s fourth-largest economy.

The working trip comes less than a week after the Anwar-led Malaysian delegations to Qatar, Kyrgyz Republic, Kazakhstan and Uzbekistan secured over RM1 billion in potential exports.

Anwar arrived at Haneda International Airport here yesterday, accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Human Resources Minister Steven Sim.

He was received by Japan Parliamentary Vice-Minister of Foreign Affairs Yasushi Hosaka and Japanese ambassador to Malay-sia Katsuhiko Takahashi.

Today, he will attend a series of programmes involving Japanese government and business leaders.

His work visit begins with a keynote address at the Nikkei Forum 29th Future of Asia.

The annual event brings together the movers and shakers from Asia Pacific to discuss the region’s role on the global stage.

It will be the first time Anwar will speak at the forum in his capacity as prime minister.

Other leaders speaking at the event include Thai Prime Minister Srettha Thavisin, Singapore Deputy Prime Minister Gan Kim Yong, and Vietnamese Deputy Prime Minister Le Minh Khai.

Anwar will then hold one-on-one meetings with Japanese captains of industry.

These include leaders of some of Japan’s largest companies, including Sumitomo Corp, IHI Corp, Nisshin OilliO Group Ltd, ENEOS Corp, Tokoyuma Corp, Mitsubishi Corp and Tokyo Gas Co Ltd.

At 2pm, Anwar will have a bilateral meeting with his Japanese counterpart, Fumio Kishida, at Naikaku Sori Daijin Kantei, the office of the Prime Minister of Japan.

Anwar and Kishida, who oversaw the elevation of bilateral ties to a Comprehensive Strategic Partnership in December, are expected to discuss a host of issues.

These include collaboration on the economy, trade investment, the halal industry, energy transition, the environment, defence and security, capacity building and higher education.

The two leaders will also discuss regional and international issues, including the conflict in Gaza, the war in Ukraine, the South China Sea and the Korean Peninsula.

Anwar will then have one-to-one meetings with Japanese business leaders.

In the evening, he is scheduled to have a short meeting with Srettha and later attend the Nikkei Forum 29th Future of Asia conference dinner.

The meetings with Kishida and the Japanese businesses are expected to see the continuance of strong Malaysia-Japanese bilateral and economic ties.

During his last visit in December, the Anwar-led Malaysian delegation secured potential investments worth RM6.56 billion.

It also comes at a time when 50.2 per cent of Japanese companies in Malaysia are considering expanding their businesses within the next two years, according to the Japan External Trade Organisation’s survey in January.

Tomorrow, Anwar will deliver a speech in honour of the late Professor Toshihiko Izutsu at Keio University in Tokyo.

Izutsu, an Islamic studies and comparative religion scholar, is renowned for translating the Quran into Japanese in 1958.

Anwar will hold engagements with members of the Japan National Press Club and the international press.

This will be followed by a session with the Malaysian press here.

He will then perform Friday prayers at the Tokyo Camii Mosque before departing for Malaysia.

Source: NST

PM to meet chiefs of top firms in Japan

The country’s investment record is expected to jump further this year compared to 2023, evidenced by potential foreign investments totalling RM76.1 billion that have been successfully attracted as of March 2024, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the amount was recorded through traditional investors such as the United States and China, and included investments from Australia worth RM24.5 billion as well as Germany and France (RM46 billion).

“This year’s record will be increased even more with the participation of Saudi Arabia, the United Arab Emirates (UAE) and Qatar.

“So these investments will guarantee increased employment and comfort for the people,” he said in a national address broadcast live today.

In 2023, Malaysia managed to record total investments of RM329.46 billion, including foreign investments of RM188.37 billion and domestic investments of RM141.09 billion.

Anwar said the MADANI Government always makes every effort to ensure that all national investments are realised on time. He cited the progress of previously approved investments that are on the right track, including 75.5 per cent of approved manufacturing projects from 2021 to 2023 that have been completed or are being implemented.

In addition, the value of early stage construction work is also high, which is RM31.5 billion in 2023 compared to RM26.3 billion in 2022.

“The result of these investments symbolises the new confidence of investors in driving the country’s economy at the moment, guided by the MADANI Economy,” he said.

Anwar added that Malaysia is already considered a major investment centre for microcomputer chips that attracts tens of billions (of ringgit) of investments from major companies from Europe, the United States and China.

He emphasised that the business ecosystem should support new industries that are competitive, capable of growing and of high value so that investments can be increased in the local economy.

“The local industry (needs) to be given added value, especially the semiconductor sector which is gaining a place in the eyes of the world,” he added.

Source: Bernama

Country’s investment record to jump further this year – PM Anwar

Malaysia serves as the launching pad and gateway for foreign investors in the Asean region including companies from Sweden for businesses, said Swedish ambassador to Malaysia Dr Joachim Bergstrom.

He said Malaysia continues to attract Swedish companies due to its political stability, good standard of living and widespread use of English.

“The ease of doing business in Malaysia ranks very high for Swedish companies. It’s relatively affordable to operate here, and also a launching pad towards other economies in the Asean region, so using Malaysia as a gateway to operate wider is very attractive.

“Penang also is a fantastic place and has an interesting fabric of culture, legacy, food, literacy and very attractive investment area for European industries,” he told reporters after attending the cocktail reception in conjunction with the Regional Meeting of Swedish Ambassadors to Asean Countries here, last night.

Bergstrom noted Penang and Sweeden shared long-standing bilateral ties in various areas, including sustainability, green transition, digitalisation, transportation and manufacturing.

“We have a number of Swedish companies in the region here in Penang and Kulim, Kedah. It is really an area in Malaysia that is attracting more investment and interest from the Swedish industry,” he added.

Meanwhile, Penang Chief Minister Chow Kon Yeow hopes to further increase cooperation with Scandinavian countries, especially Sweden, to boost their investments in Malaysia and Southeast Asia.

“I am happy that Penang is able to attract investments from all over the world, including Sweden and the Nordic countries. For the Malaysian government, regardless of whether it is at the national or state level, we have many things to work on, particularly in talent development,” he said.

There are currently over 80 active Swedish companies based in Malaysia, with close to 9,000 employees working with local counterparts to increase access to green energy.

Swedish investments into Malaysia amount to US$500 million (RM2.34 billion), making Malaysia one of the largest receivers of Swedish investment.

Source: Bernama

Malaysia gateway to attract Swedish companies, says ambassador Joachim Bergstrom

Malaysia may gain from the recent tariff hike by the United States on imports from China, which could divert trade and increase foreign direct investment.

Hong Leong Investment Bank Sdn Bhd (HLIB Research) pointed out that imports from Malaysia to the US grew at a five-year compound annual growth rate of 7.7 per cent (using 2017 as the base year) during the US enacting tariffs on China under Donald Trump’s administration in 2018, as opposed to 1.2 per cent from China and 6.7 per cent from the rest of the world.

Following the start of the US-China trade war, approved foreign investments into Malaysia increased significantly; from RM54 billion in 2017 to RM188 billion in 2023, this amount increased by 3.5 times.

“From another perspective, prior to the trade war (i.e., from 2013–2017), the foreign composition of total approved investments was 26 per cent; however, this has risen to 59 per cent over the trade war period (2018–2023). 

“We believe these trends are in part a reflection of Malaysia benefiting from the “China+1 strategy,” which has seen a revival, fuelled by the trade war and Covid-19 pandemic,” it said in a note. 

Last week, the US introduced or increased tariffs on US$18 billion of imports from China. The firm stated this sum was relatively small as it represented four per cent of US imports from China and six per cent of existing tariffed Chinese imports, which is far less than the previous ones imposed by Trump, which stood between US$34 and $300 billion. 

“Given the relatively small quantum of this recent tariff decision, the market reaction was unsurprisingly muted. Political observers interpret this recent tariff move as politically motivated, given the impending US presidential elections in November, rather than a precursor to another episode of “tariff tantrums.”. 

“Nevertheless, this serves as a useful reminder that the US-China trade war is very much still ongoing.” 

To recap, when the US-China trade war broke out and escalated in 2018–2019, the FTSE Bursa Malaysia KLCI lost 10.4 per cent over those two years, though domestic factors such as the unprecedented 14th general election outcome may have also played a role. 

Meanwhile,the firm highlighted that tariffs on medical and surgical rubber gloves imported from China will be increased from the current 7.5 per cent to 25 per cent effective 2026. 

“While at first glance this appears positive for Malaysian glove makers, we believe that Chinese glove makers would likely choose to lower their pre-tariff pricing in order to remain competitive. 

“For the more immediate term, we reckon that Chinese players will start to gradually shift their focus from the US to Europe and Asia; this will lead to US glove imports being diverted from China to Malaysia.”

Tariffs on certain steel and aluminium imports from China will also see an increase from 0–7.5 per cent to 25 per cent this year. We expect the impact to be relatively neutral for the aluminium market and Press Metal Aluminium Holdings Bhd, as China is a net aluminium importer and China only made up five per cent  of US aluminium imports in the fourth quarter of 2023 (Q4 2023).

In the property sector, the ongoing US-China trade war has prompted companies to embark on the “China+1 strategy,” with some of these “plus ones” coming to Southeast Asia, including Malaysia. 

Tariffs on solar cells, assembled or not assembled into modules, imported from China will be raised from 25 per cent to 50 per cent starting in 2024. 

“Wood Mackenzie estimates that the US imported less than 0.1 per cent of its solar modules directly from China in Q4 2023. 

“Therefore, we believe the impact of this latest tariff hike on direct imports from China to be mild, if any.”

It added tariffs on semiconductors imported from China, which will increase from 25 per cent to 50 per cent in 2025. The first wave of tariff imposition (back in 2018–2019) led to capacity relocation, on- or friend-shoring manufacturing pants, and diversifying supply chain redundancy. As such, this latest tariff move should lead to continued acceleration in such trends.

Source: NST

Malaysia can benefit from trade diversions, increase in investments

The Sabah government has set various plans in motion and implemented initiatives, particularly through the Hala Tuju Sabah Maju Jaya (SMJ) development plan, to make the state more attractive for investors, said Chief Minister Datuk Seri Hajiji Noor.

He said the Sabah government’s commitment to address various challenges including infrastructure and basic amenities in order to spur economic growth was evident by the substantial allocation of RM2.63 billion for infrastructure development programmes and public amenities in the state budget this year.

Hajiji said this in his speech text which was read by state Finance Minister Datuk Seri Masidi Manjun at the Sabah Investors Forum here today.

The forum organised by Sabah Development Bank Bhd with investors-coordination support from the RHB Investment Bank was timely as it would provide the platform for investors to engage with the state government on key recent and upcoming developments that will spur the growth of Sabah and how the state government will facilitate and support these developments.

Hajiji said RM679.85 million was allocated to manage and address the critical issue of clean water supply while RM430.84 million was channelled to infrastructure maintenance.

Another significant action plan, he said, was enhancing the road connectivity and the state government is committed to completing the Pan Borneo Highway project as well as adding other road linkages outside the project, some of which are in the construction phase.

To help transition the state’s dependence on non-renewable energy sources to renewable energy, the Chief Minister said Sabah has launched the Sabah Energy Roadmap and Master Plan 2040.

“To improve hydro capacity, we launched the Ulu Padas hydroelectric project last December which can contribute some 187.5MW and also has the potential to supply some 6,000 million litres daily of water. The capacity of existing water treatment plants has also been increased,” he added.

Source: Bernama

Sabah govt sets various plans, initiatives to attract investors

Malaysia’s neutral position in the ongoing US-China trade war enables it to capitalise on trade diversions and attract foreign direct investments (FDIs), said Hong Leong Investment Bank Bhd (HLIB).

The research firm said trade wars are generally detrimental to the global economy.

“Imposing tariffs causes trade volume to decline as countries move away from globalisation and lean towards self-sufficiency. Trade links are also redrawn as countries switch from hostile trade partners to friendlier ones,” it said in a note.

When former US President Donald Trump implemented his barrage of tariffs on Chinese goods, HLIB noted that US imports from Malaysia grew at a 5-year compound annual growth rate of 7.7 per cent (2017 as a base) versus 1.2 per cent from China and 6.7 per cent from the world.

“Approved foreign investments into Malaysia saw a significant boost after the US-China trade war began; it swelled 3.5 times to RM188 billion in 2023 (2017: RM54 billion),” it explained.

From another perspective, from 2013 to 2017, the foreign composition of total approved investments was 26 per cent, rising to 59 per cent over the trade war period between 2018 and 2023.

These trends partially reflect Malaysia benefitting from the China+1 strategy where businesses avoid investing in China only, it said.

Last week, the US increased tariffs on US$18 billion of Chinese imports, with a potential impact on gloves as tariffs on medical and surgical rubber gloves imported from China rise to 25 per cent effective 2026 versus the current 7.5 per cent.

This appears positive for Malaysian glove makers, but the research firm believes Chinese glove makers will likely drop their pre-tariff pricing at the expense of profit margins to remain competitive.

“For the more immediate term until 2026, we reckon Chinese players will gradually shift their focus from the US to Europe and Asia, diverting US glove imports from China to Malaysia, it said.

Meanwhile, tariffs on semiconductors imported from China will rise to 50 per cent in 2025 versus 25 per cent.

The 2018-2019 first wave of tariff imposition led to capacity relocation, friend-shoring manufacturing with companies re-allocating production and sourcing away from unreliable, geopolitical rivals and diversifying of supply chain.

This latest tariff move should accelerate such trends. Nevertheless, China is the largest consumer of semiconductors, buying more than 50 per cent of chips manufactured globally, it said.

Source: Bernama

US-China trade war opens opportunities for Malaysia — HLIB

The Madani government’s success in attracting investments last year, which rose 23 per cent to a historic high of RM329.5 billion, will create thousands of new jobs, including high-skilled jobs, for the people and raise their per capita income in the process.

This is based on 5,101 projects approved in 2023, which would generate a staggering 127,000 much-needed new jobs, especially for youths coming out of schools, colleges, and universities.

An encouraging factor is that 57.2 per cent or more than half of the investments constitute foreign direct investments, clearly proving that Malaysia continues to be an attractive destination despite stiff regional competition, thanks to well-tailored investment policies.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai lauded the government’s economic management measures, which enabled Malaysia to lure significant foreign direct investments (FDIs) into the manufacturing sector.

These included investments from renowned multinational companies in high-technology industries with established manufacturing plants here, as well as those companies expanding their operations in the country, creating numerous job opportunities for locals.

“Government policies and development plans targeting to transform Malaysia into a high-income economy identified the manufacturing sector as a key game changer for growth leading to various initiatives to lure investments and boost job creation in the sector,” he told Bernama.

For 2024, the government expects a minimum eight to 10 per cent growth in approved investments from last year.

So far this year, Malaysia has secured US$2.2 billion (RM10.5 billion) in investments from American multinational technology giant Microsoft, which has committed to empowering the country’s technology with cloud and artificial intelligence (AI).

The zest to continue creating jobs is evidenced by the Madani government ramping up efforts to this end with the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).

Under the seven-year plan until 2030, NIMP would provide employment for 3.3 million people by creating high-skilled jobs as the country advances towards higher value-added activities and improvements in automation as well as technological advancements.

As for the NETR, its flagship catalyst projects covering six energy transition levers — energy efficiency (EE), renewable energy (RE), hydrogen, bioenergy, green mobility, and carbon capture, utilisation and storage (CCUS) — are expected to attract investments of more than RM25 billion.

In the process, it would create 23,000 job opportunities and reduce greenhouse gas emissions by more than 10,000 gigagrams of carbon dioxide equivalent annually.

FMM’s Soh said the manufacturing sector’s job creation has evolved significantly over the years due to a combination of factors, including technological advancements, shifts in global trade dynamics and business-friendly government policies.

Manufacturing companies in Malaysia also play an integral role in global supply chains, which, again, has led to job growth as manufacturers supply components and parts to major global players.

Malaysian Economic Association deputy president Professor Dr Yeah Kim Leng said Malaysia’s share of skilled jobs should be increased to 30 per cent or higher by 2030 from the current 25.1 per cent, as the greater the proportion of a skilled workforce, the more prosperous the economy.

He reckoned that a quicker increase in skilled jobs would reflect a quicker pace of structural upgrading and a shift to higher-value-added activities, which would have greater spillovers to the economy through increased consumption and investment spending.

He said that with Malaysia’s GDP growth projected at four to five per cent per annum over the medium term and population increases estimated at around one per cent, the real income per capita growth is forecast at three to four per cent annually.

“However, Malaysia should aim for a ‘high case’ scenario of 5.5-6.5 per cent GDP growth for the remaining period to 2030.

“At this rate, the country will be able to attain high-income status before the end of the period and achieve a majority of the United Nations 2030 Sustainable Development Goals,” he said.

Yeah, said the nation saw a reduction in low-skilled jobs by four per cent to 1.11 million in the first quarter of 2024 from the same quarter in the previous year, which augurs well for the economy to move to higher-skilled jobs.

Putra Business School economic analyst associate professor Dr Ahmed Razman Abdul Latiff said that while automation and AI have the potential to improve efficiency and productivity, they also raise concerns about job displacement.

“Certain jobs may become obsolete due to automation, requiring workers to upskill or reskill to remain employable.

However, automation can also create new job roles, particularly in areas that require human creativity, empathy, and problem-solving skills,” he said.

Ahmed Razman said job creation and income per capita are closely linked; as more jobs are created, the overall income per capita tends to increase, reflecting a higher standard of living.

“However, the quality of jobs created, including wages and benefits, also impacts income per capita. Low-paying or unstable jobs may not contribute significantly to income growth.

“Initiatives by the government to increase the minimum wage as well as introducing progressive wages are indicative of the government’s seriousness in ensuring the continuous increment of average salaries as well as the quality of life of the workers,” he said.

Source: Bernama

Madani govt’s policies to drive job creation, income growth, say industry experts

Malaysia views Kazakhstan as its strategic partner in building the interlinkages between Central Asia and Southeast Asia, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

At the same time, the minister extended a warm invitation to companies from Kazakhstan to use Malaysia as a base to expand globally, leveraging on the country’s strategic position as a gateway to Asean. 

Zafrul said Kazakhstan has not only been Malaysia’s top trading partner among Central Asian countries for many years, but both nations also share values and mutual dedication to institutional reforms to boost competitiveness and economic resiliency.

According to him, Kazakhstan President Kassym-Jomart Tokayev’s new economic model, founded on principles of fairness, inclusiveness and pragmatism, stresses the pivotal role of the manufacturing sector in achieving economic self-sufficiency, reflecting the country’s commitment to deep and comprehensive socio-economic transformations. 

“Malaysia is keen to work with Kazakhstan in your endeavour to transform the economy through the sharing of our experiences, industrial cooperation, new investments by Malaysian companies in strategic areas in Kazakhstan as well as deepening trade linkages between our countries. 

“At the same time, I would encourage our business leaders to explore opportunities for collaboration either here in Kazakhstan or in Malaysia,” Zafrul said in his remarks during the Kazakhstan-Malaysia Investment Roundtable here on Friday.

Prime Minister Datuk Seri Anwar Ibrahim and his Kazakh counterpart Olzhas Bektenov were present at the session.

Zafrul added that Malaysia and Kazakhstan have established a Joint Trade Committee (JTC) and the last JTC, which was hosted by Malaysia in 2017, has agreed to facilitate greater cooperation in the areas of halal industry, Islamic finance, tourism, renewable energy, oil and gas, and investment cooperation.

“I look forward to the next JTC meeting to set the direction for our cooperation agenda,” he said.

Also accompanying the prime minister on his two-day official visit to Kazakhstan that ended Friday were Foreign Minister Datuk Seri Mohamad Hasan; Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing; and Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar; as well as senior officials from various ministries and agencies.

Kazakhstan, the ninth largest country in the world, has a population of about 20 million people, with more than 70% being Muslim.

The country is bordered by Russia to the north, the Caspian Sea to the south-west, Turkmenistan, Uzbekistan and the Kyrgyz Republic to the south and China to the east.

Astana’s main export is oil, followed by natural gas and other commodities. It is also a major wheat producer.

Source: Bernama

Zafrul: Malaysia sees Kazakhstan as strategic partner in bridging Central, SE Asia

Malaysia and Uzbekistan have agreed to explore opportunities for cooperation in the petrochemicals sector and clean green energy solutions, said Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Uzbekistan President Shavkat Mirziyoyev.

The Uzbek side has expressed a keen interest in collaborating with Petronas, particularly through the methanol-to-olefins (MTO) and derivatives project, as well as in the green hydrogen and associated derivates production, including green ammonia, they said in a joint statement.

“Both sides welcomed Petronas’s potential contribution to the training of Uzbekistan personnel in the oil and gas sector,” the statement said.

The Uzbek side also noted that Malaysia is one of the largest centres of Islamic finance in the world and expressed its readiness to provide necessary assistance to Malaysian commercial banks in active participation in the financial market of Uzbekistan to establish mutual cooperation in the field of Islamic finance.

“Malaysia took note of the interest and is ready to engage with Uzbekistan on the development of Islamic finance ecosystem in Uzbekistan. The leaders confirmed their determination to enhance and strengthen framework of bilateral treaty-based cooperation through signing of new long-term documents in investment, law enforcement, education, innovation, customs and other areas of mutual interest,” the statement said.

Earlier, Anwar paid a courtesy call on Mirziyoyev and held a meeting with the president.

During the one-hour meeting, the two leaders discussed relations between Malaysia and Uzbekistan as well as exploring potential areas of cooperation.

Earlier, the special aircraft carrying Anwar, who was flying in from Kazakhstan, landed at the Tashkent International Airport at 2.15pm local time.

Uzbekistan is the last stop of Anwar’s official visit to three Central Asian countries. He had earlier visited the Kyrgyz Republic and Kazakhstan. 

Source: Bernama

Malaysia, Uzbekistan to explore cooperation in petrochemicals sector, says PM Anwar

THE Malaysian economy is expected to continue its growth trajectory this year. 

As Malaysia’s GDP forecast for 2024 projects a growth rate of 4% to 5%, key sectors such as technology and tourism are poised to significantly contribute to the nation’s economic resilience and expansion, despite ongoing global challenges like weaker external demand and geopolitical tensions. 

Last Friday, Bank Negara Malaysia (BNM) announced a GDP of 4.2% for the first quarter of 2024 (1Q24), underpinned by stronger private expenditure and a positive turnaround in exports. 

BNM Governor Datuk Shaik Abdul Rasheed Abdul Ghaffour said exports turned around to record positive growth after three consecutive quarters of contraction, particularly from electrical and electronics (E&E) exports which gradually improved in tandem with the global tech upcycle while non-E&E exports (mainly machineries, equipment and construction-related materials) remained robust given continued demand. 

“Upside risks include greater spillovers from the global technology upcycle and more robust tourism activity. 

“In addition, faster implementation of existing and new investment projects will also boost growth,” he said during a press conference on the 1Q24 GDP announcement at BNM last Friday. 

Tech Sector Spurs Economic Growth

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tech industry, especially the outsourced semiconductor assembly and test, continues to be a major growth driver. 

“The tech sector has historically been pivotal, but with the advent of smart technologies requiring extensive microchip applications, Malaysia’s role in the global supply chain is increasingly crucial,” he told The Malaysia Reserve (TMR). 

Meanwhile, Dr Shankaran Nambiar of the Malaysian Institute of Economic Research emphasised the minimal impact of global challenges on Malaysia due to strategic economic adjustments. 

“The China+1 policy may work to our advantage, driving more investments into the country. 

“Although global demand is not robust, a tech upcycle driven by demands in memory and non-automotive chips and new technologies like generative artificial intelligence is expected,” he said. 

Sunway University economics professor Dr Yeah Kim Leng also highlighted the significant opportunities arising from global supply chain reconfigurations due to US-China trade tensions. 

“Malaysia is benefiting from investments as companies diversify their production bases and supply chains. 

“The tech upcycles, driven by the widespread use of chips in consumer electronics and industrial products, positions Malay- sia advantageously for sustained growth in the tech sector,” he said. 

He added that areas like Penang, the Kulim High Technology Park, and the Johor-Singapore Special Economic Zone are witnessing significant investment inflows, enhancing their economic prospects. 

On the impact of rapidly implemented investment projects, Afzanizam said the construction sector had seen remarkable growth. 

“From a growth of 3.6% previously to a robust 11.9% in the first quarter alone, the sector’s progress has positive ramifications across manufacturing and services, including demand for materials like cement and steel, as well as professional services,” he said. 

Robust Growth in Tourism

On the other hand, Tourism Selangor CEO Azrul Shah Mohamad reported significant gains in the state’s tourism sector. 

Selangor recorded the highest GDP in Malaysia last year, with the tourism industry contributing 25.5% to this total. 

“We welcomed 6.54 million tourists in 2023, a 46.4% increase from the previous year, driven by attractions in ecotourism, food, shopping and leisure,” he said. 

Azrul noted that the Petaling district alone attracted 4.1 million tourists, showcasing the strong demand for diverse tourism offerings. 

Meanwhile, Hulu Selangor’s tourist numbers soared by 358%, a testament to the growing appeal of ecotourism in the area. 

On potential economic headwinds, Azrul detailed strategic measures to sustain growth. 

“Despite global economic pressures, our local campaigns and targeted international marketing have kept Selangor as the most visited state. 

“We’re also investing in sustainable tourism practices and leveraging digital technologies to enhance traveller experiences and maintain stability,” he said. 

On a broader scale, Sarawak’s Tourism, Creative Industry and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah was optimistic about the sector’s recovery. 

“With Covid-19 now behind us, we’ve witnessed a significant revival in tourism, not just in Malaysia but globally. 

“Here in Sarawak, the trend is evident with an increasing number of visitors each year,” he said. 

Sarawak is on track to exceed its target of four million visitors in 2024 much earlier than anticipated, thanks to effective marketing strategies and the introduction of appealing tourism products. 

“We’re also preparing for major events like the Rainforest World Music Festival and international marathons, which have already started to attract a lot of interest,” he added. 

He also expressed confidence in navigating potential economic headwinds. 

“Challenges are part of the landscape, but with South-East Asia’s potential, along with markets like China, Korea and Japan, we are well-positioned to keep the tourism sector vibrant and thriving,” he said. 

As Malaysia navigates a complex global environment, the concerted efforts in tech and tourism underscore the country’s adaptive strategies and potential for sustained economic growth. 

Source: The Malaysian Reserve

Malaysia’s economy resilient amid global challenges