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The Ministry of Investment, Trade, and Industry (MITI) is committed to accelerating and facilitating the implementation of the New Industrial Master Plan 2030 (NIMP 2023) to contribute to the country’s economic growth projections for the current year, said Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In light of the economic growth targets, ranging from 4.0 per cent to 5.0 per cent this year, the effective execution of various plans, including the NIMP 2030, will be pivotal, he said on the sidelines of the Industrial Take Off Year 2024 event at Concorde Club at Wisma Bernama today.

“If you look at the economic growth, the target this year is around 4.0 per cent to 5.0 per cent. One of the key drivers will be the implementation of the various plans, including the NIMP. We have to ensure that execution is key.

“So that is why, at MITI, we will continue to accelerate the plans that we have announced, including the investments that have been approved. Now we must make sure those investments are reliased,” he said.

The NIMP 2030 was unveiled on Sept 1, 2023, marking a significant milestone in the nation’s journey towards the MADANI Economy.

According to Miti, it is a commitment to bolster the nation’s manufacturing sector, with ambitious microeconomic targets which include boosting the gross domestic product (GDP) of the manufacturing sector by 6.5 per cent annually. By 2030, this could translate into a substantial RM587.5 billion contribution to Malaysia’s total GDP.

The NIMP 2030 encompasses six key goals that aim to elevate Malaysia’s economic standing namely, increase economic complexity, create high-value jobs ppportunities, extend domestic linkages, develop new and existing clusters, improve inclusivity, and enhance ESG practices.

During the release of Bank Negara Malaysia’s Annual Report 2023, the central bank recommended that certain industry master plans that were started last year be accelerated to support economic growth.

Among the government’s 2023 announcements are the National Energy Transition Roadmap, which aims to position the country’s renewable energy sector as a major driver of growth, and the NIMP, which aims to advance manufacturing and other important sectors.

Source: NST

MITI to expedite NIMP adoption to bolster economic growth projections

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Malaysia has successfully attracted potential foreign investments amounting to RM76.1 billion as of March this year, the result of the country’s successful trade and investment missions in Australia, Germany and France, said Prime Minister Datuk Seri Anwar Ibrahim.

He attributed the success to the collaborative efforts of several ministries and government agencies, such as the Ministry of Finance (MOF), the Ministry of Investment, Trade and Industry, the Ministry of Foreign Affairs, the Securities Commission and Bursa Malaysia.

Speaking at a gathering with the MOF’s staff here today, he said this was the result of the government’s efforts to ensure political stability, cooperation with civil servants, as well as its clear national goals and policies.

“Clarity in our economic policies is important and will help us and give us a new hope,” he said.

Anwar also highlighted the warm reception extended during his recent official visit to Germany.

“Germany boasts a robust economy, ranking as the third-largest globally. The warm reception we received as a small nation fills us with pride,“ he said.

Recently, it was reported that Malaysia had succeeded in attracting potential investments worth RM45.4 billion following the prime minister’s recent visit to Germany.

However, Anwar stressed that there is still ample room for improvement, including in terms of expediting project approvals.

“We must sustain such efforts, and if we can increase it, I think that in two or three years, Malaysia’s landscape will change,” he said.

Meanwhile, commenting on the growth figures and forecasts for this year, Anwar noted that Bank Negara Malaysia’s Economic and Monetary Review 2023 released yesterday was positive and reassuring.

“The foundation of Malaysia’s economy remains robust, and the economic outlook for 2024 is better than that of 2023 as we achieved a gross domestic product growth of 3.7 per cent despite facing various challenges and the global economic volatility.

“For this year, our economy is expected to strengthen further with growth forecasts of 4.0-5.0 per cent,“ he said.

Factors which would support the improvement in economic performance include the decrease in the unemployment rate, which fell to 3.3 per cent in January 2024, and the inflation rate which dropped to 1.6 per cent in the fourth quarter of 2023 (4Q 2023) from 2.0 per cent in 3Q 2023.

Export performance also showed signs of recovery in January this year with an increase of 8.7 per cent after declining for ten consecutive months (March to December 2023).

In addition to the positive macroeconomic figures, the prospects for national investment are also at a very promising level.

“Last year, we achieved approved investments totaling RM329.5 billion, the highest in the country’s history,“ added Anwar.

Source: Bernama

Malaysia attracts RM76.1 bln potential foreign investments as of March 2024 – PM Anwar

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By DHL

The new 10,000 square meters facility will meet growing demands in the automotive, technology, cloud business and data center sectors
Located in the Free Trade Zone of Johor’s Senai Airport City, the South Region Hub offers great connectivity to North-South Expressway and Senai International Airport

DHL Supply Chain, the global leader in contract logistics, announced the inauguration of its first warehouse in Southern Malaysia. The South Region Hub, a EUR 5.2 million investment, will add 10,000 square meters of warehouse space to DHL Supply Chain’s existing portfolio of 236,000 square meters in Malaysia. The construction of the facility will be undertaken by local developer, Eastern Group, and is expected to be ready by Q1 2025.

Strategically located in the Free Trade Zone of Senai Airport City, the South Region Hub is a mere 10 minutes away from the North-South Expressway and Senai International Airport, enabling faster delivery times. This also marks a strategic step to fulfill the soaring demand of warehousing from sectors including automotive, technology, cloud business and data center, as DHL Supply Chain grows its business presence in Southern Malaysia.

Mario Lorenz, Managing Director, DHL Supply Chain Malaysia said, “With the launch of the South Region Hub as our 24^th facility in Malaysia, we are looking to elevate the standards of logistics in the Southern region and beyond. This investment reflects our confidence in Johor’s potential as an epicenter for regional distribution. Positioned at a prime location, our Hub will establish new benchmark in efficiency and sustainable logistics solutions.”

As part of DHL Supply Chain’s global sustainability commitment, the South Region Hub will be a carbon-neutral operation with facilities such as solar panels, smart LED lighting and rainwater harvesting solutions.

The launch of the South Region Hub forms part of DHL Supply Chain’s strategy to invest EUR350 million in Southeast Asia over the next four years, with EUR131 million allocated specifically for Malaysia. This investment will expand DHL Supply Chain’s warehousing capacity, workforce and sustainability initiatives in the country. Additionally, DHL Supply Chain is set to open three more facilities across Malaysia – two in Penang and one in the Central region.

DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 395,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of DHL Group. The Group generated revenues of more than 81.8 billion euros in 2023. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. DHL Group aims to achieve net-zero emissions logistics by 2050.

Source: Malay Mail

DHL Supply Chain to invest in a new warehouse facility in Senai Airport City, Southern Malaysia, to fulfill growing logistics demand

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JLand Group Sdn Bhd (JLG), the real estate and infrastructure arm of Johor Corporation (JCorp), has signed a memorandum of understanding with biotechnology powerhouse ALPS Global Holding Bhd to establish Malaysia’s very own biotechnology “Silicon Valley” .

With the global biotechnology market set to soar towards an estimated value of nearly four times its 2020 figure by 2030, the collaboration between JLG and ALPS is anticipated to emerge as Malaysia’s strategic initiative to seize upon this unparalleled growth trajectory. The impending development of the hub is anticipated to generate an estimated gross development value (GDV) of RM980 million.

Nestled within the dynamic circular city of Ibrahim Technopolis (IBTEC) in Sedenak, Johor, the hub is set to emerge as a comprehensive biotechnology and life sciences centre in the coming decade. Spanning vaccine manufacturing and development, genomics, regenerative medicines, immunotherapy and gene editing, the state-of-the-art research hub is primed to tackle the most pressing challenges of healthcare confronting humanity in the present day.

“We applaud ALPS’s achievements thus far and eagerly anticipate exploring more opportunities together. We believe this collaboration will signify a momentous milestone in biotechnology innovation on the global stage, fostering a thriving ecosystem conducive to pioneering research, knowledge exchange, and economic advancement,” said JLG deputy chairman and JCorp real estate and infrastructure director Datuk Akmal Ahmad

“Set to become one of our forthcoming ventures within IBTEC, the biotechnology hub will revolutionise the sector and serve as a significant addition to our established data centre and upcoming artificial intelligence (AI) hubs. It will unite new-age industrialists, digital pioneers, and lifelong learners in an advanced environment engineered for sustainable growth, aligned with the New Industrial Masterplan 2030 and the National Energy Transition Roadmap,“ he added.

ALPS Group CEO Datuk Seri Dr Tham Seng Kong said that with JLG’s expertise and Johor’s favourable investment climate, they are confident that their collaborative efforts will establish the biotechnology hub as the premier destination for biotechnology solutions, attracting top-tier industry leaders and talent to engage in groundbreaking research initiatives.

Through the partnership, JLG will play a pivotal role as both landowner and developer, nurturing an environment conducive to biotechnological endeavours, while ALPS will serve as the anchor tenant and operator, harnessing its established facilities, team of scientists, and extensive global biotechnology networks.

Souce: The Sun

BusinessJLand Group, ALPS sign MoU to develop biotech hub in Johor

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The Malaysian Investment Development Authority (Mida) is encouraging businesses to leverage the enhanced Malaysia-Singapore Business Development Fund (MSBDF) for ventures in third countries.

The agency under the Investment, Trade, and Industry Ministry (MITI) said a significant enhancement to the provisions of the MSBDF agreement was agreed upon on Oct 30, 2023, between Minister Tengku Datuk Seri Zafrul Abdul Aziz and Singapore’s Trade and Industry Minister Gan Kim Yong.

The fund enables both countries to jointly pursue opportunities in third countries and conduct joint pilots in each other’s country, especially in emerging areas such as the green economy and digital economy.

“Malaysia and Singapore’s unique relationship is underscored by our geographical, as well as long-standing economic and shared cultural ties.

“The enhancements to MSBDF make it more conducive for future collaborative efforts. We strongly encourage businesses to tap into the MSBDF, another important platform through which we can create and deliver more tangible benefits for our people and businesses,” Tengku Zafrul said in a statement on Wednesday.

Mida chief executive officer Datuk Arham Abdul Rahman said the agency is poised to facilitate companies that are keen to explore these new avenues, ensuring a streamlined process for those looking to capitalise on the opportunities presented by the MSBDF.

The MSBDF, administered by MIDA and Enterprise Singapore, the neighbouring country’s government agency championing enterprise development, welcomes applications from Malaysian and Singaporean businesses and associations.

According to the statement, Malaysian SMEs can visit MIDA’s official website https://www.mida.gov.my/invest-inmalaysia/business-facilitation/ for further details on guidelines, eligibility criteria, application procedures and funding mechanisms.

The fund was first established in 2004 to bolster collaboration between the private sectors of both countries.

Source: Bernama

Use Malaysia-Singapore fund to tap third country opportunities: MIDA

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The Federal Government has expressed hope that the Penang state government will assist the Penang Regional Development Authority (PERDA) to set up more factories and premises to produce halal products in the state.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said this was because Penang had the potential to develop its halal industry due to the expanding global market for halal products and the state’s good infrastructure.

“This year there is an additional RM32 million allocation for (PERDA) as the Penang Port is important for the export of halal products.

“Currently many halal products come from Thailand, we want halal products from Malaysia to increase as there is huge demand, especially from Middle Eastern countries,” he said at a Ramadan community event at Al-Amin Simpang Tiga Jamek Mosque here today, where 200 children received donations and assistance.

Penang Chief Minister Chow Kon Yeow and Education Minister Fadhlina Sidek, who is Nibong Tebal MP, were also present at the event.

Ahmad Zahid also pointed out that halal products not only revolved around the food industry but encompassed pharmaceutical and cosmetic products, which were highly sought after internationally.

“What PERDA is doing is in line with the Malaysian Halal Council’s plans for us to coordinate these activities throughout the state. I will also focus on the development of Halal Industrial Park in Penang,” he added.

Ahmad Zahid also stressed that the Penang state government had to move in tandem with the Unity Government by setting aside past petty issues to resolve public issues.

As such, he expressed his appreciation regarding the Penang state government’s commitment to assist PERDA projects, describing it as the benefits reaped from political parties that were no longer in conflict.

Source: Bernama

Federal Govt hopes Penang will help PERDA set up more halal product factories

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The Ministry of Investment, Trade and Industry (MITI) is still maintaining its target of 10,000 electric vehicle (EV) charging stations operating in the country by 2025, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the review on this target would be decided during the Malaysian National EV Steering Committee (NEVSC) meeting which will be held soon.

Tengku Zafrul said to date a total of 2,020 EV charging stations are in operation nationwide.

The minister said although he believes the target looks aggressive, the industry players have assured him that it can be done as shown by current data where in the last few months, there are only 1,400 EV charging stations nationwide, but the figure has surpassed the 2,000-mark as of last month.

“So they said it’s moving fast enough, but let’s see because the next EV committee meeting will be discussing whether we should keep or drop the target. Industries players seem to be optimistic,” he told the media after attending the launch of Tesla’s largest supercharging station in Southeast Asia here, today.

The launch was officiated by the Raja Muda of Selangor, Tengku Amir Shah Sultan Sharafuddin Idris Shah.

Tengku Zafrul said on the government’s part, various incentives and initiatives are offered to EV industry players to ensure that the target set can be achieved.

“Based on our current policy, we want to expedite approval and also collaborate with other ministries and agencies such as the Ministry of Housing and Local Government, Fire and Rescue Department, Energy Commission, Tenaga Nasional Bhd, local authorities, and others.

“We also have tax incentive…it’s like chicken and egg, they want to see higher car sales, if not, (when) we have charging stations but no cars use it (to charge). So it has to be hand in hand,” he said.

On Tesla, Tengku Zafrul said the government congratulated the company on the opening of the largest supercharging station in Southeast Asia located at Gamuda Cove, here, which offers six Superchargers and 18 Destination Chargers.

“For Tesla, the company carries out both (business), charging station as well selling cars. So it builds the whole ecosystem.

“Sometimes, people have charging anxiety, range anxiety and so forth, but if we do it properly it can reduce the EV car owners’ anxiety,” he said.

The government is committed to ensuring that at least 30 per cent of the ultra-fast chargers built in Malaysia are open to the public for car brands other than Tesla, he added.

Meanwhile, Tengku Zafrul in his speech said the government welcomed Tesla’s rapid growth footprint in Malaysia, where since July last year, the carmaker has introduced the highly anticipated Model Y and Model 3 to the local market, launched the nation’s first Supercharger, and established the Tesla Experience Centre and its Malaysian headquarters in Cyberjaya.

“Tesla’s dedication to supporting Malaysia’s EV adoption is further evidenced by its collaboration with local installers, resulting in over 1,300 home charging installations.

“Tesla has also significantly enhanced our national EV charging network, by establishing 36 Supercharger stalls and 55 Destination Chargers across Malaysia. Notably, Selangor is home to 14 Supercharger stalls and 26 Destination Chargers, demonstrating its commitment to advancing our EV infrastructure,” he said.

Tengku Zafrul said Tesla plans to expand its charging network by adding new facilities in key locations such as Kuantan, Penang, Putrajaya, and Kuala Lumpur in the second quarter of this year.

“We welcome this development and appreciate Tesla’s contribution in developing charging stations for non-Tesla brands as well,” he said.

Source: Bernama

MITI maintains target of 10,000 EV charging stations by 2025

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A total of 898 foreign investment projects valued at RM281.5 billion have been approved in the manufacturing and services sectors from 2022 to 2023, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong (pix).

He said the approved foreign investment projects were expected to create 98,725 new job opportunities, of which 86,880 or 88 per cent would be for locals.

“For the manufacturing sector, 78,033 new jobs are expected to be created for locals.

“Five main subsectors with the highest new job opportunities for locals are the electrical and electronics (40,618 job opportunities), non-metallic mineral products (6,746), machinery and equipment (5,555), scientific and measuring equipment (3,791), and chemicals and chemical products (3,684),” he said during the question-and-answer session in the Dewan Rakyat today.

As for the services sector, Liew said 8,847 new job opportunities were expected to be created for locals, with the three main subsectors being support services (5,124), health-related services (1,407) and information and communication (1,022).

“Generally, investment projects take 18-24 months to be realised depending on the project scale and current economic situation.

“Based on Malaysian Investment Development Authority statistics and experience, usually 85 per cent of foreign investment projects would be realised in that timeframe,” he said.

He was responding to Datuk Larry Soon’s (PBM-Julau) query on the number of jobs that locals can benefit from by sector and industry as a result of foreign direct investment (FDI) inflow into the country for 2024.

Liew said that Malaysia currently possesses advantages such as good logistics, the skills and ecosystem, and a strong supply chain.

“This has given Malaysia an opportunity to capitalise on the tense geopolitical situation between the United States and China, and we could observe the effect last year and the year before when record-high foreign investments flowed into our country.

“We have the skills and the skilled workers. But many Malaysians are working in Singapore as gig workers. So the issue we have to resolve for creating more jobs or developing more skilled workers is to raise the salary levels in the manufacturing sector,” he added.

Liew said the global semiconductor industry needs new talent as it is experiencing a rapid shift or transformation.

“We need more people with expertise in semiconductors and artificial intelligence chips,” he added.

Source: Bernama

Foreign investments worth RM281.5b approved in 2022-2023 to create 98,725 jobs

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Malaysia and Hungary discussed efforts to strengthen ties particularly in trade and investment, agriculture, and cooperation in electro-mobility during a bilateral meeting today.

The Foreign Ministry (Wisma Putra) said Foreign Minister Datuk Seri Mohamad Hasan and Hungarian Foreign Affairs and Trade Minister Peter Szijjártó also spoke about Malaysia-European Union (EU) bilateral relations, Asean-EU Dialogue Relations, as well as regional and international issues of mutual interest during their meeting.

“The Foreign Ministers exchanged two Diplomatic Notes, namely the Bilateral Work Arrangement between both countries; and Cooperation between Malaysia’s Institute of Diplomatic and Foreign Relations (IDFR) and the Hungarian Diplomatic Academy (MDA),” it said in a statement.

Szijjártó, who is on one-day working visit to Malaysia, had earlier met Higher Education Minister Datuk Seri Zambry Abdul Kadir to strengthen cooperation in the higher education sector, including the ongoing Hungary’s Scholarship Programme — Stipendium Hungaricum.

Malaysia and Hungary have a longstanding and multi-faceted cooperation. Last year, the trade value between Malaysia and Hungary was RM3.08 billion (US$670 million), with exports amounting to RM2.38 billion (US$520 million) and imports valued at RM700 million (US$150 million).

Meanwhile, Szijjártó said increasing Hungarian agricultural exports and the fight against the world blockade were on the agenda for his visit in Malaysia.

In a his Facebook post, he added that Malaysia is the last stop on his visit to three most competitive countries in Southeast Asia, following Thailand and Singapore.

Source: Bernama

Malaysia, Hungary discuss efforts to enhance ties in bilateral meeting

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Malaysia has secured potential investments worth RM46 billion and potential Malaysian exports valued at RM2.4 billion from its recent trade and investment mission to Germany and France.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who was leading the mission, said among notable companies engaged during the mission were X-Fab, Melexis, Infineon Technologies AG, Airbus Group, Schott Glass, BMW, Nexperia, B-Braun, Michelin, Institut de Soudure (IS) Groupe and Simaero.

He said these corporations shared their investment plans and interest in establishing strategic partnerships in Malaysia, which will contribute significantly to Malaysia’s economic landscape particularly in terms of technology transfer and creation of high-value jobs in the country.

In terms of export potential, Tengku Zafrul held discussions with Airbus Group, Deutsche Bahn, Safran, and X-Fab (France) to reinforce their ongoing interest in sourcing from Malaysia.

“These business interactions with German and French companies are part of our strategic engagement to update them on the implementation of the New Industrial Master Plan 2030 (NIMP 2030), our commitment to the speedy execution of projects as well as our business-friendly stance on expanding investments and trade.

“Our door is always open on hosting companies from Germany and France, two of Europe’s main drivers of economic growth and industrial powerhouse, which will pave a significant pathway towards reindustrialising our nation and revitalising our economy,” he said in a statement today.

He said these engagements were also aimed at enhancing Malaysia’s involvement in the global value chain, thus facilitating further integration into international markets.

“By fostering collaborative relationships with key players in France and Germany, Malaysia seeks to expand its footprint in global trade and solidify its position as a reliable and competitive partner in various industries,” he continued.

During the mission to France, a significant bilateral meeting took place between Tengku Zafrul and his French counterpart Franck Riester, the Minister Delegate for Foreign Trade, Economic Attractiveness, Francophonie, and French Nationals Abroad.

Both sides were engaged in a fruitful exchange of views and updates, aimed at further fortifying bilateral economic collaborations, said Investment, Trade and Industry Ministry (MITI) in the same statement.

Of particular focus were areas of mutual interest, including advancing energy transition initiatives, fostering the adoption of green economy practices, and exploring the potential to recommence negotiations for a free trade agreement with the European Union, it added.

The ministry said such discussions underscored the shared commitment to enhancing economic cooperation and leveraging opportunities for sustainable growth between Malaysia and France.

The mission, which started on March 11 and concluded yesterday, covered the cities of Berlin and Hamburg in Germany, as well as Paris, France.

The German leg of the mission was in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Germany from March 11 to 15.

The mission’s delegation comprised of officials from MITI, the Malaysian Investment Development Authority and Malaysia External Trade Development Corporation.

These officials were engaged in high-level meetings with European companies in target sectors under the NIMP 2030 such as semiconductor, automotive, aerospace, railway, chemical, medical devices, as well as machinery and equipment.

Source: Bernama

Malaysia secures RM46 bln potential investments from trade and investment mission to Germany, France

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By Zarina Nalla

Prime Minister Datuk Seri Anwar Ibrahim’s international efforts are yielding promising results.

Recent trips secured potential investments from Germany (RM45.4 billion) and China (RM170 billion) in crucial sectors like semiconductors, aerospace and medical devices.

This aligns with Malaysia’s strategic goal of attracting foreign direct investment (FDI) that fosters technological advancement and propels the nation towards becoming a high-income economy.

Data from the Malaysian Investment Development Authority (Mida) confirms a significant rise in approved investments in 2023, reaching RM329.5 billion, with FDI being the major contributor.

Beyond securing financial commitments, a critical evaluation of the incoming investments is crucial. ESG (environmental, social and governance) considerations must be factored in to ensure responsible business practices.

Furthermore, alignment with Malaysia’s long-term economic goals is essential.

Investments should contribute to technological advancement and propel the nation towards a high-income status. To achieve this, a robust framework for monitoring, evaluation, and facilitation is necessary.

Malaysia’s economic story is one of remarkable transformation. From its roots in agriculture, the nation transitioned into a manufacturing powerhouse, with the electronics and electrical (E&E) sector serving as its driving force.

This strategy fuelled rapid economic growth, propelling Malaysia towards becoming a middle-income economy. However, a crucial element has been missing: A strategic shift towards climbing the value chain.

Malaysia holds a significant share of the global E&E market (13.6 per cent). However, its contribution lies primarily in low-value assembly and packaging. This translates to limited technological advancement and a workforce skilled in routine tasks.

While this approach has yielded economic benefits, it presents a significant challenge: Can Malaysia achieve its aspirations of becoming a high-income nation solely by relying on assembly-based activities?

An unfortunate consequence of over-dependence on assembly has been the neglect of domestic research and development (R&D) capabilities. This has not only limited technological innovation but also hindered the creation of high-skilled jobs within the E&E sector.

According to the World Bank, Malaysia’s spending on R&D as a percentage of GDP is significantly lower compared to regional competitors like Singapore and South Korea.

This lack of investment translates to a dearth of cutting-edge research facilities, limited opportunities for domestic talent to contribute to innovation, and ultimately, an economy susceptible to the whims of the global market.

The path forward necessitates a paradigm shift in Malaysia’s approach to FDI. Moving beyond simply attracting large-scale investments, the focus must be on strategic FDI that aligns with the nation’s long-term economic goals.

Identifying and qualifying the type of investments being poured into Malaysia require a special skill set. The newest kid on the block is impact investments.

The relevant agencies should screen business proposals carefully before giving the green light. One must keep in mind that the end goal is to fulfill strategic growth for the nation: these investments must add value to our economy and help us move closer towards being a high-income nation.

We need to break out of the middle-income trap, a challenge which has been discussed for decades.

Perhaps it is time for the government to organise announcements around actualized investment numbers as well?

Focusing solely on approved investments paints an incomplete picture of economic progress. Placing greater emphasis on actualised investments and making this data readily available provides a clearer understanding of the tangible outcomes achieved through FDIs.

Approved investments require at least 18 to 24 months to come to fruition, more often than not, investors make U-turns for various reasons which include obstacles faced in soliciting approvals or identifying local partners or talent even.

The facilitation of investments is another matter we are still grappling with today. Bureaucratic hurdles and inefficiencies in infrastructure development act as significant deterrents to the business community.

Former minister Tan Sri Rafidah Aziz who served over three administrations was quoted to have said that we should be more focused on action. She also recommended that a council be established, one chaired by our prime minister himself, focusing on the facilitation of investment.

The issue of land approvals, basic utilities have been problematic since yester years. When will such unnecessary barriers be overcome?

How can we address the issue of talent needed for these investments? The World Bank has expressed that investors need talent much more than tax incentives.

There has been much debate on the subject of our nation’s brain drain. When we don’t pay our workers well, we cannot expect productivity says some economists. We have been blamed for under-paying our talent and hence we lose them to our neighbour.

Others express that because our economic activities are low-end in nature, talent with special skills cannot find suitable jobs and leave. A vicious cycle.

Several countries like Singapore and South Korea have successfully leveraged strategic FDI to achieve remarkable economic transformation.

We can learn from their experiences. Realising this vision requires a collective effort from various stakeholders. With this, we can then hope to see the revival of Malaysia’s economic story, and one that is more resilient to face the future.

*The writer is former chief operating officer and former acting CEO of Malaysian Institute of Economic Research.

Source: NST

Malaysia must shift gears to innovation hub

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The Northern Corridor Implementation Authority (NCIA), in collaboration with the Kedah state government, recorded RM11.6 billion in realised investments for the state in 2023.

In a statement today, NCIA, the development authority for the Northern Corridor Economic Region or NCER, said the realised investments have created over 3,400 job opportunities in 2023.

NCIA chief executive officer Mohamad Haris Kader Sultan attributed the success to close and continuous cooperation with stakeholders, including the federal government, the state government, and their agencies.

“The recorded investments comprised key sectors outlined in the NCER strategic development plan, namely manufacturing, agriculture, logistics, digital economy, and tourism.

“NCIA intends to leverage the strategic advantages of the NCER by collaborating with neighbouring countries such as Thailand via the Malaysia-Thailand Special Border Economic Zone (SBEZ) initiative,” he said.

Mohamad Haris said the cross-border advantages hold significant potential for attracting foreign investments and accelerating economic progress in the northern region.

Meanwhile, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the achieved value surpassed the initial target set by NCIA, which was RM8.8 billion.

This success served as an indicator of industry players’ confidence in Kedah’s future potential, he added.

Source: Bernama

NCIA, state govt realise RM11.6b in investments for Kedah in 2023, created over 3,400 job opportunities

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The automotive industry will continue to be an important sector propelling semiconductor demand through the decade, according to the US-based Semiconductor Industry Association (SIA).

In a blog post on Monday, SIA director of industry statistics and economic policy Robert Casanova said innovation in vehicle electrification, autonomy, and connectivity requires greater chip content in vehicles.

He said the current generation of cars, including electric vehicles, can have between 1,000 and 3,500 semiconductors.

“This number is expected to grow as consumers continue to prioritise advancements in vehicle safety systems (like advanced driver assistance systems), vehicle connectivity, and electrification when choosing a car.

“Despite the downturn in the global semiconductor market in 2023, demand for chips in the long term is expected to show vibrant growth,” he said.

Casanova said that in fact, World Semiconductor Trade Statistics (WSTS) projects double-digit market growth in 2024.

“And, to meet this growing demand, our industry has recently committed to expanding manufacturing capacity in the US through private investments of over US$250 billion (RM1.18 trillion) thus far,” he said.

Reviewing the past year, Casanova said that after reaching a record total of US$574.1 billion in chip sales in 2022, the chip industry experienced an 8.2% decline in global revenue to US$526.9 billion in 2023 due to normal market cyclicality.

He said that by the second half of last year, however, the industry experienced consistent month-on-month and year-on-year increases in sales, signaling the start of the current cycle.

Casanova said fuelling the rebound in the second half of last year were increased sales to the automotive and industrial sectors, and growing demand for a range of chips that are critical to artificial intelligence systems.

He said the increased sales to these sectors resulted in shifts to end markets’ share of global sales revenue.

“Newly released data on 2023 semiconductor sales by broad product category, known as ‘end use’, revealed which markets saw the largest sales increases,” he said.

Casanova said that historically, the PC/computer and communications end markets accounted for approximately two-thirds of overall sales, with sectors such as automotive, industrial, and consumer electronics accounting for the remainder.

But he said the breakdown of sales by the end market had shifted in recent years, and that trend continued in 2023.

He explained that according to the 2023 Semiconductor End-Use Survey by the WSTS, the PC/computer and communications end markets still accounted for the largest share of semiconductor sales in 2023.

“Sales to the communications industry, however, increased by two percentage points, while PC/computer decreased to 25% of sales.

“Meanwhile, the automotive sector experienced the largest growth in share of chip sales to become the third-largest end market in 2023,” he said.

Source: The Edge Markets

Automotive industry set to propel semiconductor demand, says SIA

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Dutch renewable energy company Maatschappij Wilhelmina NV is investing US$60 million (RM283 million) to build a TG2 black pellet plant, the first of its kind in the world, that uses empty fruit bunches (EFB) from oil palms as feedstock to produce drop-in coal replacement fuel in Pahang

The plant with a production capacity of 15 tonnes an hour will be located in Phase 3 of the Gebeng Industrial Area in Kuantan. Construction is expected to begin in the fourth quarter of this year, be completed in 16 to 18 months’ time.

Wilhelmina CEO and co-founder Barthold van Doorn said it sees tremendous opportunities in generating renewable and carbon neutral energy through recycling industrial agricultural waste streams in Malaysia as the country is the second biggest producer of palm oil in the world.

“This TG2 black pellet which will use EFB as feedstock will be the first of its kind in the world. We are primarily focused on the Southeast Asian region and Malaysia ticked all the boxes for us to locate our first plant. As the second largest producer of palm oil globally, we understand Malaysia generates some 20 million tonnes of EFB waste a year.

“Instead of being left to decay or filling up landfill, these can be transformed into a clean and high-energy coal replacement that could reduce as much as 12 million tonnes of methane, equivalent to 300 million tonnes of CO2. This can certainly contribute towards Malaysian government’s target of becoming a carbon-neutral nation by 2050,” van Doorn told a press conference at the collaboration agreement signing ceremony yesterday between Wilhelmina and Ecoscience International Bhd for the engineering, procurement and construction (EPC) work of the plant via wholly owned subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd.

Wilhemina will also outsource the operation, maintenance and management of the TG2 black pellet plant to Ecoscience.

Van Doorn said its investment into Malaysia is only the first step in its overall strategic expansion plan as the company has earmarked a number of locations in Malaysia, Japan and Southeast Asia.

“We are also looking at Indonesia, Cambodia, Vietnam and Japan to establish more TG2 black pellet plants that will also use other agricultural wastes such as coconut husks and rubber tree wood as feedstock,” he said.

Ecoscience managing director Wong Choi Ong said the plant is expected to be the largest project to be undertaken in the company’s history.

“Besides taking on the EPC role, we are expected to also operate, maintain and manage the plant for Wilhelmina upon commissioning. All in all, the plant is expected to give our orderbook a significant boost, as well provide consistent recurring income to our company in the future,” he added.

Source: The Sun

Dutch company Wilhelmina to build US$60m TG2 black pellet plant in Pahang

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TT Vision Holdings Bhd said it is partnering with a Singapore-based company to set up a manufacturing base in Malaysia to produce automation equipment and related hardware and software products, particularly in the solar energy field.

The two companies will set up a joint venture (JV) to undertake research and development, production and sales of the products intended for Southeast Asian, European and American markets, said the automated test equipment manufacturer in a bourse filing.

The initial investment is RM166.66 million, of which RM24.99 million will come from TT Vision, giving it a 15% stake in the JV.

Its partner, Autowell (Singapore) Pte Ltd (ASPL), will invest the remaining RM141.61 million for an 85% stake in the JV. ASPL is a subsidiary of Wuxi Autowell Technology Co Ltd, a company listed on the Shanghai Stock Exchange.

TT Vision said the JV will further its business diversification by fostering synergistic collaboration with foreign direct investments, opening up new market horizons, particularly in advanced solar equipment.

The JV, which is expected to be completed within six months, will be funded through a combination of internally generated funds and/or the proceeds to be raised from a fund raising exercise via the capital market, the group said.

TT Vision, which was listed on the LEAP Market of Bursa Malaysia in 2019, was relisted on the ACE Market in January 2023, raising total gross proceeds of RM28.73 million.

TT Vision has four business divisions: optoelectronics inspection equipment, discrete component and integrated circuit inspection equipment, solar cell inspection equipment, and vision-guided robotic equipment.

The stock closed down 2.6% or 2.5 sen to 92 sen on Monday, bringing the group a market capitalisation of RM431 million. Over the past year, the stock has fallen 24%.

Source: The Edge Malaysia

TT Vision forms JV to set up solar energy-related automation equipment manufacturing base in Malaysia

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QES Group Bhd’s RM40 million plant in Batu Kawan Industrial Park (BKIP) is a testament to its commitment to uphold sustainable practices and innovation, in line with Malaysia’s vision to be a leader in environmental, social and corporate governance (ESG) in Southeast Asia.

In a statement on Monday, the automated test equipment manufacturer said the new plant, QES 2@BKIP, uses solar energy as a renewable source to decrease reliance on conventional electricity.

“QES 2@BKIP is designed to minimise its environmental impact and integrate with its surroundings, aiming to achieve green building certification by utilising eco-friendly materials and implementing renewable energy solutions.

“This project is expected to create 100 high-quality jobs within three years,” it said.

QES Group managing director Chew Ne Weng said the group is confident that QES 2@BKIP will further reinforce the group’s presence and foster its efforts for growth and success.

He said QES 2@BKIP will house Applied Engineering Technology (M) Sdn Bhd (AETM), its joint venture company with United States-based Applied Engineering Inc.

“This will double AETM’s factory space, from its current rented facility of 18,000 square feet, to approximately 30,000 square feet, and double its manpower requirements over the next three years.

“With a focus on ESG principles, QES is poised to lead the way toward a more sustainable future, positioning the company as a leader in the semiconductor industry and Malaysia’s vision for a sustainable future,” Chew added.

In the statement, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the New Industrial Master Plan (NIMP) 2030 has clearly laid out Malaysia’s industrial reform journey toward achieving higher economic complexity, technological prowess, sustainability, as well as economic inclusivity.

He said the convergence of two or more of these objectives through NIMP’s target sectors will help speed up Malaysia’s industrial reform.

“We see this in QES’ upcoming plant, where innovative hi-tech semiconductor manufacturing meets sustainability.

“Such convergence will also help Malaysia’s manufacturing sector move up the global value chain more quickly, while creating better-paying jobs for our people and contributing to our net-zero future,” he added.

Meanwhile, the Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman said QES’ sustainability goals dovetail seamlessly with the prevailing trend among companies and investors to prioritise ESG considerations.

He said with ESG now a top priority, collaborative partnerships are essential for semiconductor firms to make progress on decarbonisation.

“Mida stands fully supportive of such endeavours, recognising their potential to not only generate high-quality job opportunities but also shape a more sustainable future for generations to come,” he added.

Source: Bernama

QES Group’s RM40 mil plant in Penang a testament to its ESG commitment

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Simaero, a global provider of flight simulators for airlines, training organisations and commercial pilots, plans to expand its operations in the Asia Pacific market by opening a training centre in Malaysia.

Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Zafrul Abdul Aziz said over the next five years, the global demand for pilots will increase to 600,000, half of which will be for Asia.

“When this training centre opens in Malaysia, not only will Malaysian pilots no longer have to go to Paris, but we can also attract pilots from the entire Asia Pacific region to undertake their training in Malaysia,“ he said.

Tengku Zafrul said this in a post on Instagram today after trying out the Microsoft Flight Simulator facility at the Simaero Paris Training Centre in France.

He said the centre offered flight simulators for various types of aircraft, including Airbus, Boeing, ATR, and light aircraft such as Beech and Fokker.

“All pilots need training. Therefore, there is a high demand for (such) training centres,“ he said.

Source: Bernama

Tengku Zafrul: Simaero plans to open training centre in Malaysia

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The Malaysian government’s recent strategic working visit to Germany and Australia, which resulted in potential investments totaling almost RM70 billion, demonstrates Malaysia’s adeptness in navigating the global investment landscape.

The Malaysian Investment Development Authority (MIDA) said it has been at the forefront of implementing strategies and initiatives aimed at improving Malaysia’s investment landscape.

By focusing on reducing bureaucratic hurdles, enhancing transparency, and ensuring a competitive and supportive environment for both domestic and international investors, MIDA has significantly contributed to this international recognition, it said.

“MIDA is dedicated to building upon this success by continually enhancing our services and support systems for investors,” said Datuk Wira Arham Abdul Rahman, chief executive officer of MIDA.

“Our goal is to not only maintain Malaysia’s position as a prime investment destination in Asia but also to elevate our standing on the global stage. We are devoted to making Malaysia the ultimate investment sweet spot by ensuring a more seamless and efficient investment process across the nation,” he said in a statement.

MIDA, in collaboration with MITI and other ministries and agencies at both federal and state levels, will continue to drive forward Malaysia’s investment agenda and ease of doing business, leveraging the country’s strategic location, political stability, robust infrastructure, and dynamic workforce.

“As Malaysia strides into the future, MIDA invites investors from around the globe to explore the diverse opportunities in the country that is not only strategically positioned but is also committed to fostering responsible and sustainable investments and building an inclusive economic landscape for the nation.”

Meanwhile, the recent working visit to Germany, led by the Prime Minister, Dtuk Seri Anwar Ibrahim, together with the Minister of Investment, Trade, and Industry (MITI), Tengku Datuk Seri Utama Zafrul Abdul Aziz, marked a significant milestone, with prospective investments amounting to RM45.4 billion.

A similarly fruitful mission to Australia resulted in commitments from Australian companies to invest RM24.5 billion.

MIDA regards the recent Global Opportunity Index (GOI) 2024 report by the Milken Institute, which ranked Malaysia as the best country in Asia for overall investment conditions, as a major achievement.

Globally, Malaysia is ranked 27th, higher than competitors from the region like Thailand and China.

MIDA said this accomplishment is seen as a turning point in the country’s economic development path.

According to the research, Malaysia is among the top 10 rising and developing nations in Asia, possessing a strong institutional structure and well-rounded strengths in the financial, regulatory, and economic domains.

Malaysia offers a much lower-risk investment environment that sets it apart from other growing Asian economies. It has outperformed its peers in all five categories of the Global Opportunity Index.

MIDA said this prestigious ranking is a direct reflection of the relentless efforts by the Malaysian Government, spearheaded by MITI, with MIDA playing a crucial role in enhancing the ease of doing business and smoothing out the investment process across the nation.

From extensive trade and investment missions to forging international partnerships, Malaysia’s concerted efforts are bearing fruit, unlocking potential investments worth billions, MIDA said.

Source: NST

MIDA to elevate Malaysia’s standing on the world stage

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The government will continue to encourage investments that benefit Malaysia without interfering in the geopolitics of any country, said Prime Minister Datuk Seri Anwar Ibrahim.

Although aware of the strained relations between two major powers, namely China and the United States, he said Malaysia is not interested in favouring either side.

“Only a few issues have been highlighted, such as the Palestine and China issues, because many Western countries are somewhat suspicious about why we seem to be aligning with China. My response is simple, we are a small country, we want to develop, and we prioritise the well-being of our people.

“The cumulative investment from the US is still number one and we have no problem with investors from the US, we welcome them warmly,“ he said when addressing the monthly assembly of the Prime Minister’s Department here today.

Malaysia also does not want to stir up issues with China and even though there may be slight differences in opinion, such matters are discussed amicably, he added.

“So when I’m asked about the issue of Chinaphobia or Sinophobia, my response is that there is no reason for hostility and being anti-anyone,“ he said.

Anwar added that although Malaysia may have differing opinions regarding the US stance on the Israel-Palestine conflict or the violence and injustices perpetrated by Zionist Israel on Palestinian land, particularly in Gaza, these issues are voiced clearly.

“It’s not that I choose to make harsh statements against others; I prefer to focus on correcting our country’s economy, and structure, as well as elevating our nation’s dignity.

“However, when innocent children, babies, women, and people are destroyed every day, when facing President Joe Biden, of course, I gather the strength to express my stance.

“I said I didn’t raise the issue of him recognising Israel, or supporting Israel; I said stop this oppression and killing immediately,“ he said.

Source: Bernama

Malaysia welcomes beneficial investments, not favour any country – PM Anwar

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SLP Resources Bhd will spend RM20mil to upgrade and expand its production capacity in 2024 to meet rising domestic demand for its flexible plastic packaging products.

Group managing director Kelvin Khaw told StarBiz that in 2023, the domestic market contributed about 60% to the group’s revenue.

“We expect the trend to continue this year as Malaysia’s gross domestic product (GDP) is forecast to grow between 4% and 5%.

“Bank Negara is expected to maintain its rates at 3% throughout 2024 to provide liquidity in the market,” he said.

According to the Mordor Intelligence report, the Malaysian retail market size – estimated at US$89.66bil in 2024 – is expected to reach US$119.64bil by 2029, growing at a compounded annual growth rate (CAGR) of 5.94%.

“The Malaysian retail industry, a substantial consumer of flexible plastic packaging materials, has been one of the largest contributing sectors to the country’s GDP for decades,” Khaw said.

To stay relevant in the market, SLP will produce more premium products such as non-commoditised kangaroo pouches, mono films and machine-direction-oriented (MDO) PE packaging products in 2024.

“Our MDO-PE films, which have enhanced durability and performance, have generated solid enquiries and have seen improved sales,” he said.

Khaw said the group will acquire a workers’ dormitory to house 200 employees.

He said Japan, the group’s key export market, will experience gradual growth thanks to its robust tourism sector.

“Japan’s economy is expected to grow at 1% in 2024, and its retail sector at 1.4% per annum till 2032, according to an IMARC research report.

“The growth is slow, but it is growth nevertheless.

“The yen remains weak and continues to stimulate tourism, which has, in turn, boosted our sales of kitchen and rubbish bags to Japan,” he said.

Khaw said the GDP of the group’s other important markets, such as Australia and New Zealand, is expected to grow by 2.25% and 2%, respectively, this year.

According to a recent Allied Market Research report, the global flexible packaging market, valued at US$197.4bil in 2022, is projected to reach US$325.8bil by 2032, growing at a CAGR of 5.1%.

The price of crude oil and resin have stabilised to around US$83 a barrel and US$1,000 a tonne, compared to US$970 per tonne and US$86 per barrel in January 2023, respectively, enabling the group to produce premium-quality products cost-effectively, he said.

According to Khaw, the upcoming US presidential election has prompted the consumer goods industries, in particular, to keep inventories low, resulting in snail pace demand across the globe.

“Another concern is the US interest rates.

“The inability of the last rate hike to force US inflation down to 2.9% has prompted analysts and investors to caution that a rate cut may not happen in May 2024 as anticipated.

“Currently, the interest rates in the United States hover around 5.25% to 5.5%. The last rate hike was in July 2023,” he said.

Khaw said the recurring Panama Canal drought and the Red Sea conflict have substantially increased logistics costs and delayed shipments of essential raw ingredients.

“About 20 vessels are currently allowed to cross the canal compared to 36 in the first half of 2023.

“Shipping companies, opting to avoid the delays, are now taking longer routes around the Cape of Good Hope, Cape Horn and the Suez Canal to reach their destinations.

“For example, the restriction of vessels crossing the Panama Canal has delayed SLP’s import of raw materials from the United States.”

He said these concerns and challenges have prompted the management team to adopt a circumspect business approach to growth for 2024.

In 2023, the group posted RM162.33mil in revenue compared with RM185.74mil in 2022, a 12.6% drop due to the weak demand from overseas and local markets.

Its pre-tax profit decreased to RM14.24mil from RM25.54mil in 2022.

Source: The Star

SLP expanding production capacity to meet rising demand

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Malaysian Investment Development Authority (Mida) said Malaysia ranked above Thailand and China in terms of investment conditions, in a report by Milken Institute.

Mida said in a statement Malaysia ranked 27th in the Global Opportunity Index (GOI) 2024.

Mida said Malaysia emerged as a standout among the top 10 countries in emerging and developing Asia, boasting a strong institutional framework and balanced strengths across economic, financial and regulatory domains.

Malaysia surpassed its counterparts in five categories of the GOI, offering a comparatively lower-risk investment landscape.

The report said in addition to its robust Business Perception and Financial Services, Malaysia ranks relatively high in the Institutional Framework category, partly due to the strength of investors’ rights in this country.

Mida said the ranking in the GOI 2024 is a reflection of the relentless efforts by the government, spearheaded by the Investment, Trade and Industry Ministry, with Mida playing a crucial role in enhancing the ease of doing business and smoothing out the investment process across the nation.

From extensive trade and investment missions to forging international partnerships, Malaysia’s concerted efforts are bearing fruit, unlocking potential investments worth billions.

Notably, the recent working visit to Germany led by Prime Minister Datuk Seri Anwar Ibrahim marked a significant milestone with prospective investments amounting to RM45.4 billion.

This venture, coupled with a similarly fruitful mission to Australia which resulted in investment commitments of RM24.5 billion, underscores Malaysia’s adeptness in navigating the international investment landscape.

The GOI 2024 is based on 100 indicators classified into five categories: Business Perception, Economic Fundamentals, Financial Services, Institutional Framework, and International Standards and Policy.

Source: NST

MIDA says Malaysia ranked above Thailand and China, in terms of investment conditions in Milken report

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Selangor government has unveiled plans designed to help businesses, especially those from abroad, establish or expand their operations in the state.

State investment, trade and mobility committee chairman Ng Sze Han said the pilot Selangor Soft Landing (SSL) initiative emerged after considering feedback from last year’s Selangor International Business Summit events.

Ng added that it was important for the state to make things easier for potential investors.

He said the initiative, orchestrated by Invest Selangor Bhd in collaboration with strategic partners, would offer unparalleled support to potential investors seeking to establish or expand their business operations in Selangor.

“SSL is designed to enhance Selangor’s investment appeal and operate with a modest budget of less than RM50,000, while aiming to significantly contribute towards Invest Selangor’s ambitious goal of securing RM50bil in investments for the state this year.

“The objectives of SSL are to provide a holistic platform and support for new and potential investors, optimise their feasibility costs and assist in accelerating the execution of their projects,” Ng said.

Investors eligible for the programme must be first-time investors in Selangor, focusing on one of seven targeted clusters: electronics and electrical, food and beverage, life sciences, transport equipment, machinery and equipment, logistic services, and digital investment.

The initiative not only caters to the pre-investment phase but also supports investors in the post-investment phase requiring a signed sales and purchase agreement or tenancy agreement within Selangor.

Ng said those who qualified for the programme would receive support and access to business ecosystems, complimentary co-working or office spaces, special rates for talent search and support as well as corporate-rate accommodation, during both the pre-investment and post-investment phases.

“This initiative underscores Selangor’s commitment to fostering a conducive investment environment, reinforcing its position as a leading economic hub in Malaysia and South-East Asia,” he added.

The SSL programme is supported by an array of government agencies and private entities, including the Malaysian Investment Development Authority, Invest Selangor, Cyberview Sdn Bhd and Selangor Information Technology and Digital Economy Corporation, and various hotels offering special corporate rates.

The programme will run until Dec 31 on a first-come, first-served basis.

For details, interested investors are encouraged to reach out to Invest Selangor via its official website or email.

Source: The Star

Incentives set to draw investors

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The revival of the proposed Malaysia-European Union (EU) Free Trade Agreement (FTA) could boost investments and opportunities for Malaysian businesses, say experts.

Former deputy international trade and industry minister Ong Kian Ming said it was the right time to revive the Malaysia-EU FTA as it would allow the country to be on a par with regional competitors.

“Vietnam has signed an FTA with the EU and Indonesia is negotiating an FTA with the EU,” he told the New Straits Times.

He said this was important given the many opportunities and challenges to attract more foreign direct investments (FDI) into Malaysia.

He was commenting on Prime Minister Datuk Seri Anwar Ibrahim’s call for the restart of talks on the long-stalled Malay-sia-EU FTA.

Anwar said the FTA would allow Europe to capitalise on Malaysia as a gateway to Asia and leverage the country’s open market policies.

Ong said an FTA with the EU would allow Malaysia to have more “substantiative” negotiations in “challenging” areas, including the palm oil sector.

A number of sectors would benefit from an FTA, including in high-end electrical and electronics, palm oil, automotive and electric vehicles, logistics and financial services, he said.

“The restart of the Malaysia-EU FTA talks would provide a boost of confidence to those who have invested in Malaysia and to those who are interested in investing in Malaysia.”

Irish chamber of commerce Malaysia chairman Donal Crotty described Anwar’s push as “excellent” as the EU had been pushing for a restart of talks, which ended in 2012.

He said an FTA with the EU would boost Malaysia’s credibility and reputation as an FDI partner.

“Europe is the second largest collective economy in the world making up 29.8 per cent of global gross domestic product, and is thus a massive market opportunity for Malaysian products.”

Trade between Malaysia and EU stands at about €50.3 billion up to 2022.

“Economic results of FTAs over the past 30 years suggest a mean increase of trade of 4.5 per cent per annum.”

He said the FTA would be good in the context of environment, social and governance (ESG) in trade and foreign relations.

“The EU is a primary influencer where ESG regulations are concerned,” he said, adding that this aligned with Malaysia’s own ESG aspirations.

“This alignment may enable a significant advantage as part of any FTA agreement.”

Centre for Market Education chief executive officer Dr Carmelo Ferlito also said the time was right for a Malaysia-EU FTA.

“Given the weaker economic scenario in China and geopolitical tensions in the region, Malaysia can serve as a gateway for businesses in Southeast Asia.

“Obviously, this needs to be paired with the right set of business-friendly regulations in place,” he said, adding that this included issues related to finance, labour, licensing and immigration.

Source: NST

‘FTA with EU will put Malaysia on a par with neighbours’

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Malaysia has generated new investment interest with a potential value of RM45.4 billion following Prime Minister Datuk Seri Anwar Ibrahim’s visit to Germany which ended on Friday.

Anwar said investors from Germany and other European countries have confidence in Malaysia due to its political stability, clear policies and the efficiency of the government machinery in the project approval process.

“Incentives (offered) are almost similar to those of neighbouring countries. But what they find attractive appear to be our political stability, clear policies and willingness to work as a team in expediting the approval process of projects,” he told a press conference at the end of his six-day visit to Berlin and Hamburg.

Anwar, who is also the Finance Minister, said Malaysia’s policies related to energy transition also helped to attract new investments.

“Our emphasis on, for example, green policies, energy transition and energy renewal, and hydrogen and solar research makes them interested in investing in Malaysia,” he said.

While in Berlin, Anwar had a bilateral meeting with his counterpart Chancellor Olaf Scholz and German Vice Chancellor and Economy and Climate Action Minister Robert Habeck. He also paid a courtesy call on German President Frank-Walter Steinmeier.

Anwar also said Malaysia’s pragmatic foreign policy, including good relations with the United States, Europe, China, Japan and South Korea, also helped in attracting investments.

“This is very helpful in view of the United States-China tension. They seem to think Malaysia may be an investment destination that can reduce the issue of tension between the two countries,” he added.

Anwar said he met 38 captains of industry from Germany, Belgium, France and the Netherlands who gave their commitments to either make new investments or expand their investments in Malaysia.

Among the top companies that he met in Berlin and Hamburg were X-Fab Silicon Foundries, Melexis, Infineon Technology, Schott AG, Siemens Energy, Nexperia and Airbus.

According to Anwar, X-Fab will make a large investment in Sarawak while Infineon, which has been established in Malaysia for five decades, will add a further investment of five million euros (1 euro = RM5.13).

“We were able to achieve all this due to the good relations with German leaders. Although there are differences of opinion on certain issues such as Gaza, our relations are very good from the diplomatic and economic points of view. International coverage from the Financial Times and the New York Times, which consider Malaysia a global centre in electronics and semiconductors development, also assisted in our efforts,” he said.

Anwar also noted that aerospace corporation Airbus is prepared to buy products and services worth RM1.4 billion in the next five years, he said.

On the European Union Deforestation Regulation which affects palm oil exports into Europe, Anwar said European criticism of deforestation is off the mark.

“(The critics) have not kept abreast of the latest developments. Currently, there is no widespread deforestation like there used to be. After I explained to them the current situation, they seemed to have a more positive attitude,” he said.

There are over 700 German companies based in Malaysia with nearly US$15 billion (RM70.24 billion) in investments.

Bilateral trade between the two countries was valued at RM63.5 billion in 2023, with a 1.8 per cent rise in exports to RM30.56 billion from RM30.03 billion in 2022.

A total of 486 projects involving German companies worth RM45.69 billion (US$12.08 billion) were implemented in 2023, creating 49,591 job opportunities.

Source: Bernama

PM: Political stability, transparent policies attract foreign investors

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Johor Menteri Besar Datuk Onn Hafiz Ghazi announced a remarkable achievement under the state government’s administration: attracting investments totalling RM113.7 billion and creating 35,000 job opportunities within a span of two years, alongside a range of other accomplishments.

He highlighted that this accomplishment has also positioned the state under his leadership as the nation’s foremost importer and exporter.

During this period, his administration allocated a total of RM438.6 million in various aids to assist those in need, benefiting 2,647 individuals classified as hardcore poor, he added.

“The Johor Royal Family has also assisted the people of Johor, including distributing 20,000 bags of rice, food boxes, smart TVs, and smart boards to 20 selected schools, cancer patients, and disaster victims,” he said in a video uploaded on his Facebook page yesterday, marking his two years as Menteri Besar.

He noted that the state government upgraded tourist attractions such as the Royal Museum of Sultan Abu Bakar, Johor Zoo, six National Parks, Rimba Eco Park, Gunung Berlumut, hiking facilities at Gunung Lambak in Kluang, and public amenities on Pulau Besar Mersing.

Onn Hafiz mentioned that his administration upgraded 444 kilometres of roads, including Jaln Pasir Gudang, Jalan Mersing-Kota Tinggi, and Jalan Muar-Labis.

He said traffic flow improvements were implemented at the Sultan Iskandar Building, the Customs, Immigration, and Quarantine Complex, and the Sultan Abu Bakar Complex, in collaboration with the Ministry of Home Affairs by activating contra lanes for cars and pedestrians.

He stated that six sick projects and one stalled project have been completed, involving a total of 1,073 housing units valued at RM260 million, in addition to 4,278 units of Johor Affordable Housing (RMMJ) with RM1,000 RMMJ vouchers distributed to 2,000 recipients.

“A total of 13 People’s Housing Projects (PPR) and seven Government Rental Houses (RSK) have been repaired, 50 units of houses for e-kasih groups in 10 districts were provided, and the Johor State Housing System has been upgraded,” he said.

Onn Hafiz went on to list the implementation of several youth-oriented initiatives encompassing leadership, education, and sports.

This included the expansion of the Southern Volunteers to 667 Village Security and Development Committees (JPKK) and the provision of the Johor Education Loan Scheme benefiting 1,773 students.

“A total of 5,600 students received assistance from the Registration Assistance Scheme, 2,000 recipients received aid from the Johor Skills Training Fund, RM700,000 was allocated to 25 Johor institute of higher education student associations, and scholarships were awarded under the Kenangan Dato’ Onn Scholarship.

“Additionally, 400 students were enrolled in the Sijil Pelajaran Malaysia tuition programme, the “Tabung Pendidikan Sarjana Permodalan Darul Ta’zim”, and the Reading Lab programmes,” he said.

The state government, he added, has produced 450 Johor Student Ambassadors and established the Onn Leadership Accelerator programme and the Johor Youth Council.

He stated that the state government had organised numerous other programmes, including the weekly Semarak Subuh programme in all 56 state constituencies, as well as internationally acclaimed events such as the Asia Pacific Climate Week, Johor Smart City Forum, and Johor International Youth Conference, which were attended by 700 Johor youths.

Source: Bernama

Johor MB highlights RM113.7b investment, range of accomplishments marking two-year administration

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