Major Australian companies have shown interest to invest a total of RM24.5 billion in Malaysia, including expansion of existing investments, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said the intention was expressed to him during his meeting with more than 20 Australian companies in Melbourne on Tuesday, the second day of his official visit to Australia.

Among the potential investments are from data centre operators AirTrunk and NextDC which plan to spend about RM11 billion and RM3 billion, respectively, he said.

Mining firm Lynas is also keen to invest a further RM1 billion while other companies that are potential investors include Fortescue, Macquarie Group and Arnott’s Group, Anwar said.

“This is an achievement to be proud of, (as it) shows Australia’s interest and their confidence in the policies that we have announced,” he told the Malaysian media here, adding that these potential investments would create jobs for about 1,200 skilled workers in Malaysia.

The amount of potential investments exceeds an earlier estimate made by the Ministry of Investment, Trade and Industry and Malaysian Investment Development Authority, he said.

In terms of trade, Anwar said, Malaysia has recorded potential export sales of over RM900 million to Australia, consisting of products such as urea, timber, food and electrical components, in conjunction with his visit.

He added that the government has made efforts to clarify any concerns or doubts in order to give Australian investors and businesses confidence in Malaysia’s prospects. 

Source: Bernama

PM: Australian companies keen to invest RM24.5b in Malaysia

Seven Australian companies have made commitments to boost investments in Malaysia, said Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

They told Prime Minister Datuk Seri Anwar Ibrahim this during a roundtable discussion here, which was attended by business leaders and top executives from 18 companies.

Anwar is on a four-day official visit to Australia.

“Insya-Allah (God willing), there are seven companies that are in the final stage (of negotiations). I believe there will be more companies (which will express their commitment),” said Tengku Zafrul, the investment, trade and industry minister.

Anwar is expected to attend another meeting with six Australian companies, he added.

Finalising the investments by the seven companies will take up to three years. But Tengku Zafrul said their commitment reflected confidence in Malaysia as an investment destination.

“These companies have attended meetings with Mida (Malaysian Investment Development Authority) as well as negotiations with related agencies.

“We hope that the meetings here today, especially the assurance by the prime minister, will accelerate the process (of finalising the investments).”

Tengku Zafrul said the prime minister shared his views on trade and investment opportunities in Malaysia with the industry players today.

“The prime minister also attended a meeting with companies in the digital economy, mineral-related production companies and those involved in the renewable energy sector.

“We will make an announcement after the prime minister concludes his meetings with all companies and potential investors,” Tengku Zafrul said.

At the meeting, the companies asked that Malaysia continue to make investments and trade-related processes easier.

Tengku Zafrul said they also wanted the government to increase the pool of skilled workers in renewable energy since Malaysia has already rolled out the National Energy Transition Roadmap.

Tengku Zafrul was also asked about Lynas Rare Earths.

He said Anwar, who is also the finance minister, will meet with the company about the issues that need to be resolved.

“Several (issues) have been resolved. There are two or three more new proposals that will be reviewed and taken into consideration by the prime minister and this also involves increased investments by Lynas in the country,” he said.

Source: NST

Seven Australian companies to raise investments in Malaysia

InvestKL achieved a record-setting RM8.7 billion in foreign direct investments (FDI) in 2023, marking an astounding increase of over 300 per cent from RM2.79 billion in 2022. 

According to InvestKL, 2023 marked the agency’s most outstanding year, having secured a total of RM29.79 billion in investments since its establishment in 2011. 

To date, 66 per cent of the investments or RM19.74 billion have materialised, leading to the creation of over 27,000 executive jobs.    

Currently, 74 per cent of these positions are filled, providing Malaysians with an average monthly income exceeding RM14,000. 

Chief executive officer Datuk Muhammad Azmi Zulkifli said the surge in investments underscores the solid confidence of foreign investors in Malaysia’s economic potential. 

He added that the unprecedented FDI into Greater KL showcases the city’s attractiveness across diverse sectors such as technology, healthcare, finance, and engineering, signifying a major achievement in our efforts to attract high-value activities.  

“The success demonstrates Greater KL’s maturing business ecosystem, capable of securing and supporting substantial, intricate investments. 

“The impact is profound, catalysing economic growth, strengthening local ecosystems and creating high-value employment.  

“Our strategy includes leveraging opportunities in neighbouring states to amplify these benefits, contributing to a sustainable and prosperous future for Malaysians,” he said during InvestKL media briefing here today. 

According to InvestKL, 12 leading global corporations from the Americas, Europe and Asia regions spearheaded the investments.  

From the Americas, technology and consulting services led the charge, showcasing a strong interest in Malaysia’s digital economy.  

European investments spanned healthcare technologies, financial services and infrastructure, highlighting the region’s focus on innovation and sustainable development. 

Asian contributions were notably varied, with investments in automotive, environmental services, healthcare devices as well as travel and tourism. 

InvestKL also noted that the investments generated 8,329 high-skilled jobs, a substantial rise from the 2,805 positions created in 2022.  

A significant 81 per cent of these positions were in the digital and technology sectors, which emphasised the increasing importance of tech-driven industries in shaping the economic landscape of Greater KL. 

Additionally, life sciences, healthcare and medical tech contributed six per cent of the job creation, with financial services accounting for five per cent.  

The agency said this diversity in job opportunities highlights the dynamic nature of Malaysia’s economy and showcases the array of opportunities available for skilled professionals. 

Azmi said businesses in Greater KL are ready to capitalise on the country’s strengths to broaden their regional presence.  

He noted that the International Monetary Fund and the World Bank forecast a higher gross domestic product (GDP) growth for Malaysia in 2024, projecting an increase to 4.3 per cent. 

Azmi maintained confidence in Greater KL’s ongoing enhancement as a strategic global investment hub. 

“This confidence is rooted in Malaysia’s investor-friendly policies, diverse and multilingual talent pool, and flourishing ecosystem.  

“As a leading investment promotion agency for Greater KL, InvestKL is committed to spearheading efforts to ensure the nation’s capital remains the primary destination for companies looking to expand their presence in Asia,” he added. 

He said InvestKL’s strategic direction for 2024 places significant emphasis on attracting global services from pivotal sectors such as digital and technology, engineering, health tech, renewable energy, along with human capital development. 

This is in line with the Madani Economy Framework, 12th Malaysia Plan and New Industrial Masterplan 2030.

Source: NST

InvestKL attracts record RM8.7bil FDIs from RM2.79bil in 2022

Prime Minister Datuk Seri Anwar Ibrahim engaged business leaders and top executives from 18 Australian companies on Tuesday in Melbourne in the course of his official visit to Australia, encouraging them to expand their businesses and investments in Malaysia.

Apart from a roundtable meeting session, Anwar, who is also the finance minister, engaged them on a one-on-one basis to hear them out.

The company executives were from the manufacturing sector, including medical devices and metals, as well as the services sector such as data centres, finance, and trading.

Anwar highlighted that Malaysia, under his leadership, has implemented clear and effective policies leading to unprecedented levels of investment. He said the government, which is currently stable, is a major factor in attracting investors to Malaysia. “We have introduced new policies with clarity … and as a result, we have secured both domestic and foreign trade investments, the highest ever in (Malaysia’s) history,” he noted.

Last month, Anwar announced that Malaysia’s approved investments hit RM329.5 billion last year, which was 23 per cent higher compared to 2022, the highest in the country’s history.

Of the total investment, Anwar noted that foreign investment was the main contributor, accounting for 57.2 per cent, compared to domestic investment at 42.8 per cent.

In 2023, Malaysia and Australia’s bilateral trade stood at US$18.57 billion (RM84.64 billion), with Australia being Malaysia’s 10th largest trading partner.

As of December last year, Australia had approved investments in Malaysia involving 582 projects, with realised investments involving 366 projects.

Source: Bernama

Anwar meets business leaders from top Australian companies

Malaysia will be among the first countries to receive a mission under the Australian government’s new programme to boost trade with Southeast Asia.

Australia’s Trade and Tourism Minister Don Farrell said the mission, which focuses on the abundant trading opportunities, especially in clean energy transition, will head to Malaysia and Singapore next month.

“Our government has invested over AU$19 million (RM58.3 million) through the Australia-Southeast Asia business exchange.

“This business exchange is all about getting boots on the ground, sending our world-class agriculture, mining, education, infrastructure, technology, and tourism businesses to the region to build lasting connections with customers, suppliers, investors and partners and to learn first-hand how to do business in Southeast Asia,” he said at the 2024 Asean-Australia Special Summit today.

Farrell was delivering the keynote address at the CEO Forum on the second day of the three-day summit, which also marks the 50th anniversary of Australia’s dialogue partnership with Asean.

He said Australia sees Asean not only as representing an enormous growth opportunity for Australian businesses but also as a key diversification market for its exporters.

Despite its size, growth and proximity, Southeast Asia has only received about 30 per cent of Australia’s total exports.

Meanwhile, Asean Secretary-General Kao Kim Hourn said it offers vast opportunities with a market size of 671 million people, a growing middle class, and abundant resources.

“The focus should be on creating a favourable environment for investment and leveraging diverse policies and instruments,” he said.

Asean is intensifying its sustainability efforts, particularly in economic sectors, by developing a regional approach towards carbon neutrality that creates a structured pathway for a low-carbon future.

Through its strategy for carbon neutrality, Asean is on the right path to capture the potential of the green economy in the region.

“In fact, Asean’s strategy on carbon neutrality includes transformation in several areas, including the adoption of renewable energy, sustainable agriculture, development of carbon markets, attracting green capital, as well as ensuring best practice in research and development in green technology,” Kao added.

Source: Bernama

Malaysia among first stops for Australian business exchange mission

Malaysia and Australia are exploring cooperation opportunities in emerging sectors as both nations enter a new progressive era, with three main areas identified, namely economic prosperity, community and technology, as well as defence and security.

Prime Minister Datuk Seri Anwar Ibrahim said to achieve these goals, he is prepared to work closely with Australian Prime Minister Anthony Albanese to elevate long-forged ties to a higher level.

Anwar said Malaysia and Australia, which will celebrate their 70th year of diplomatic ties next year, have already built a sold cooperation in various fields.

These ties, he said, were further strengthened by the Comprehensive Strategic Partnership (CSP) in 2021, which provides an action plan to develop cooperation in various fields including trade and investment, education, youth and sport, digital economy as well as cyber security.

“Renewable energy, green technology and definitely digital. Food security is also important to us and this has become a pressing need for many countries, including Malaysia.

“So is education. There are many (Australian) institutes of higher education and national universities which have set up campuses in Malaysia, which we welcome. It is our job and commitment to facilitate and expedite the process,” he said in a joint press conference with Albanese after the Malaysia – Australia Annual Leaders’ Meeting (ALM) today.

Anwar was earlier accorded an official welcome by Victoria Governor Margaret Gardener and Albanese at the Government House in Victoria.

This marked Anwar’s maiden official visit as prime minister to Australia, where he is leading Malaysia’s delegation to the ALM as well as the Asean – Australia Special Summit.

Malaysia and Australia also formalised four memoranda of understanding (MoUs).

Two of the MoUs are new, namely Practical Arrangements between the Government of Malaysia and the Government of Australia on Cooperation in the Areas of Science and Technology and Their Applications for the Implementation of the Comprehensive Nuclear-Test Ban Treaty (CTBT); and Cyber Security and Critical Technology.

Two others are renewable MoUs namely cooperation in the field of sports and cooperation in the field of higher education.

Also in the Malaysian delegation were Foreign Minister Datuk Seri Mohamad Hasan, International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, and Youth and Sport Minister Hannah Yeoh.

On economic prosperity, Anwar said he and Albanese agreed that there remains much to be explored to boost trade between both nations despite the impressive bilateral trade numbers recorded in the last few years.

Australia is Malaysia’s 10th largest trading partner.

“We agreed that both parties will prioritise efforts to renew and modernise Australia – Malaysia cooperation to ensure that both countries are developed, safe and digitally resilient,” he said.

“The government welcomes the participation of Australian companies in manufacturing and developing industries in Malaysia, especially in renewable energy and agro-technology, as well as establish joint ventures to develop midstream and downstream businesses,” he said.

Anwar said in the community and technology area, Malaysia and Australia affirmed their commitment to improve multi-sector cooperation as a response to changing business needs, including the vaccine ecosystem and clean energy transition.

“We expect that the MoU on higher education and Technical and Vocational Education and Training (TVET) will further boost research and high-technology-based cooperation between universities from both countries,” he said.

On defence, Anwar said both countries have agreed to continue and improve cooperation in defence and security under the Malaysia-Australia Joint Defence Programme (MAJDP), maritime cooperation, eradicating terrorism, transnational crime as well as cyber security.

“We also discussed and exchanged views on numerous regional and international issues of joint concern, especially the Palestine – Israel crisis, in which Malaysia has strong stand,” he said.

Meanwhile, on further strengthening ties between both nations, Anwar encouraged more exchange visits at all levels, from the public to private sector, to maintain the progressive momentum in the bilateral relations forged to date.

“I also encourage strengthening of relations between people of both nations through active links, especially among the youth, to forge closer friendship and understanding between both countries,” he said.

Source: NST

PM: Malaysia, Australia to explore three main areas of cooperation

Housing and Local Government Minister Nga Kor Ming said Malaysia’s economy is robust with positive fundamentals and economic prospects, supported by various economic data in the first quarter of this year.

He said the latest updates indicate that the Malaysian stock exchange has increased by 96 points, which is equivalent to a 6.77 per cent rise.

Additionally, the unemployment rate of the country has decreased to 3.4 per cent, and the inflation rate has remained stable at 1.5 per cent.

“Moreover, there has been a significant increase of 13.3 per cent in the total exports of the country,” said Nga in a statement today.

He said Bursa Malaysia was one of the three best-performing stock markets in the Asia-Pacific region this year and the increase in Bursa Malaysia’s stock market by 6.77 per cent was the first time in six years.

“The surge in the stock market means companies listed in Bursa Malaysia were recording good profits and it also showed an improved business environment in Malaysia,” Nga said.

He also said the nation’s economy is supported by the increase in Bank Negara’s international reserves to US$114.5 billion, approved investments reaching RM329.5 billion and the rapid development in the tourism industry.

“Based on statistics from the Chinese embassy, more than three million tourists from China are expected to visit Malaysia this year and contribute more to the gross domestic product (GDP),” he said.

However, Nga stressed that economic recovery requires not only an increase in revenue but also a reduction in expenditure.

He said the Madani government, under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, will bring long-term reformation by implementing a targeted subsidy policy and rationalising new civil servants’ pensions.

“Both of these policy reforms will help strengthen the country’s fiscal and financial position and allow the government to invest more resources in development such as the education, health and public infrastructure sectors.

“These are expected to provide more long-term benefits to the people and the country,” he said.

Source: Bernama

Malaysia’s economy robust, supported by various economic data — Minister

Malaysia remains committed to a more equitable and sustainable global trade network, despite the missed opportunity for all members to achieve consensus on a few major issues during the World Trade Organisation’s (WTO) 13th Ministerial Conference (MC13) held in Abu Dhabi, United Arab Emirates (UAE) from Feb 26-29 this year.

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, who led the Malaysian delegation, submitted Malaysia’s instrument of acceptance (IOA) for the agreement on fisheries subsidies (FSA), underscoring the country’s commitment to sustainable fishing practices on a global scale. 

“To date, 71 WTO members have already accepted the FSA, which emphasises the preservation of marine biodiversity and was adopted in June 2022 during the MC12 in Geneva, Switzerland,” the Ministry of Investment, Trade, and Industry (Miti) said in a statement on Sunday.

In the realm of dispute settlement reform, a priority issue for Malaysia and most of the members, Miti said the ministers unanimously agreed to continue working together to address the critical issue of the appeal review mechanism by 2024. 

Another noteworthy milestone was when 124 WTO members, including Malaysia, came together to unanimously adopt the investment facilitation for development (IFD) agreement, it said.

Commenting on the decisions, Tengku Zafrul said they demonstrated the unwavering commitment of Malaysia and WTO members to finding a resolution that is workable and acceptable to ensure a fair and effective, rules-based multilateral trading system that promotes transparency, fairness and stability globally. 

“The dispute settlement process, for example, is key to such aspirations within the WTO framework, and we see it as highly important in facilitating Malaysian exporters’ trade transactions globally,” he said.

Tengku Zafrul said Malaysia also recognises the immense value of the IFD agreement, which has the potential to create a stable and favourable investment environment by enhancing transparency in investment policies and streamlining administrative procedures.

“Coupled with Malaysia’s unique value proposition to investors and focused efforts on investment implementation, these will be crucial in not only attracting new investments but also expanding existing ones in Malaysia,” he added.

At the MC13, the ministers also agreed to uphold the existing practice of not imposing customs duties on electronic transmissions and renewed the current moratorium on the application of non-violation and situation complaints (NVSC) to trade-related aspects of intellectual property rights (TRIPS) until MC14, which is scheduled for 2026. 

“Through its involvement in these meetings, Miti has ensured that these agreements will help foster a conducive environment for the growth of digital trade in Malaysia, as well as provide a degree of stability and predictability in the international trade system,” it said.

In summary, the MC13 has yielded significant outcomes that resonate with Malaysia’s key priorities, including advancements in promoting inclusive and fair-trade practices, nurturing the growth of micro, small and medium enterprises (MSMEs), and addressing challenges associated with sustainable and responsible business practices.

“These outcomes will reinforce Malaysia’s unwavering commitment to an open, fair and rules-based trading system, contributing to a more resilient, equitable, and environmentally conscious global trade framework,” said Miti.

Source: Bernama

Malaysia remains committed to a more equitable, sustainable global trade network — MITI

Political stability, far-sighted economic policies and the green transition provide a golden opportunity for a second surge in the country’s economy after the first jump made in the early 1990s.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said the competition between China and the United States has pushed investments into the Southeast Asian region and that Malaysia plays an important role in attracting investors.

“When investors do the calculations, they know Malaysia has good logistics, a fair Common Law framework and many workers who are fluent in several languages ​​in addition to being well educated.

“This is an opportunity for Malaysia to make a second leap. The first jump was successfully made in the early 1990s when economic growth, job opportunities, wages, and the standard of living of the people were in a positive environment,” he said.

The comments were made through his blog, Liew Chin Thong, titled “The Second Surge of the Malaysian Economy” which is a sharing of his speech during the Civil Discussion: Unity Aspiration Strengthening the Bumiputera Agenda at the Bumiputera Economic Congress 2024 (KEB 2024) on Thursday (Feb 29).

Liew added that Malaysia does not need to compete with neighboring countries such as Vietnam and Indonesia to attract investments because the strength of the country’s economy has put Malaysia at a level almost on par with Singapore.

“Perhaps it would be better if we could establish cooperation through vertical integration with Vietnam and Indonesia,” he commented.

“This is because, if we want to compete with neighbouring countries, workers in Malaysia have to be paid low wages”.

Source: Bernama

Golden opportunity for a second surge of the Malaysian economy: Liew