The lack of awareness and preparedness in environmental, social, and corporate governance (ESG) adoption among small and medium-sized enterprises (SMEs) may lead to missed business opportunities, particularly for those involved in global supply chains, said Thoughts In Gear, a sustainability and social impact consulting firm.

Its chief executive officer (CEO), Margie Ong said SMEs are at risk of becoming irrelevant due to their low level of awareness about ESG.

“I am concerned about their (SMEs) awareness and adoption, which will be extremely important for the economy. I believe that ESG adoption will translate into profitability and have a short-term impact on efficiencies such as power and water, which are both good for the environment and good for the bottom line.

“I believe this is a real risk factor that businesses must carefully consider. We have worked on real-world examples when contracts were cancelled because of ESG,” she said today.

In response to a question about ESG as a trade barrier, Ong stated that despite the heated debate, particularly among palm oil-producing countries, the objective would lead to a positive outcome.

“For example, the European Union Carbon Border Adjustment Mechanism or CBAM will put domestic and important providers in Europe almost at a competitive level in terms of prices, when input goods or import raw materials have always had a price benefit to local companies.

“Does that constitute a trade barrier? Is that really for the planet? Or is it attempting to reduce carbon emissions? I believe the intention behind the mechanism is going to result in a good intrusion.”

Ong cautioned that the CBAM will have a variety of consequences if organisations and businesses do not adopt the appropriate stance and make the necessary efforts.

Meanwhile, Grant Thornton Malaysia country chief executive officer Kishan Jasani, who was also a guest on the programme, said Asean’s varied economy needs a concerted regional effort to advance ESG adoption among corporates.

“Perhaps we could begin with palm oil, on which many of us and Asean countries rely on. We could suggest standardised methods for palm oil farmers as the palm oil issue attracts worldwide attention, it is a huge issue and it affects us,” he said.

Source: Bernama

Vital for SMEs to be ESG ready to remain relevant in global market — Experts

The most volatile segment of an economy is investment spending, so any surprise to expectations of economic growth would tend to come from how investment behaves. We believe that there is a good chance that a new investment cycle in the Asian region could emerge, which would produce better economic prospects than currently expected.

This is not to discount the downside risks that clearly do exist. But remember how there had been concerns last year that higher interest rates, geopolitical frictions or other risks would hammer 2023’s prospects — and how these were then offset by positive drivers that had been underestimated. Similarly, we think that the region will again show resilience, this time as a result of a pickup in investment. If this investment rebound can last a few years, as we believe possible, the result will be a higher investment share of economic output that produces an acceleration in economic growth over the next few years.

Investment dynamics are critical to economic growth prospects

If a higher share of total output is devoted to investment, the productive capacity of the economy will expand and that will help speed up its growth rate. Of course, this is so long as the investment is not wasteful (for example, pouring money into constructing condominiums that no one wants to buy). Unfortunately, except for China and India, this investment share of output has not regained the high levels that prevailed before the 1997 Asian financial crisis. That is a major reason why Southeast Asian economies have failed to replicate the booming growth rates they enjoyed before 1997.

There are many reasons why the region’s investment share of gross domestic product remained depressed but ultimately it was all about “animal spirits”. Animal spirits arise from a burning sense of confidence among entrepreneurs who sense great opportunities for profit and believe the risks are manageable. The Asian financial crisis dealt a massive blow to the confidence of local businessmen, who also had to deal with weak balance sheets and unexciting prospects for sales while the banks they relied on had become wary of lending. The region also had to confront difficult political adjustments, which further depressed confidence. These factors also scared away foreign investors from Southeast Asia. That worsened when global investors also saw the immense opportunities in China as its reforms and entry into the World Trade Organization in 2001 triggered the most impressive acceleration of economic growth in economic history. In India, the past few years saw companies with swollen debt levels and banks and non-bank financial institutions that had balance sheet difficulties. All of that depressed investment spending.

More recently, companies were wary of making big investment commitments because of an unnerving series of global shocks in the past few years. The Covid-19 pandemic caused unprecedented declines in economic activity, which left companies utterly uncertain about the future. In addition, the perception that globalisation offered exciting opportunities has given way to worries about de-globalisation or “slowbalisation” as the US and China, the world’s largest economies, engaged in bitter feuds over global influence, trade, technology and investment. Rising protectionism and the proliferation of inward-looking policies added to these concerns. If all that were not enough, we also saw how the sharpest pace of monetary tightening in four decades triggered anxiety over a possible recession. Finally, China’s unexpected downturn also led to considerable apprehension as one of the world’s most dynamic engines of growth seemed to stall.

Now a new investment cycle is taking shape

In short, the past few years saw virtually everything that could impair animal spirits. Our view is that this downbeat era is ending and a new, more bullish one is emerging. This will be particularly evident in India and in Southeast Asia.

First, as the global economy settles down after an unusually rough patch, economic conditions are normalising, encouraging firms to dust off old capital spending plans.

The major central banks have stopped raising rates and some may even cut their policy rates this year. The lagged effects of higher rates will of course produce some stresses in some areas such as commercial real estate in the US or among highly indebted emerging economies. But there is greater confidence now that these stresses will be episodic rather than prolonged after policymakers successfully dealt with shocks such as the collapse of some regional banks in the US earlier last year and the near-meltdown in the UK bond market in October 2022.

Moreover, while US-China relations remain bad, the two powers are building guard rails around their contestation so as to limit the risks that small incidents could escalate into a crisis that no one wants. Recent high-level meetings, including between the military officials of both sides, suggest that this effort is being sustained. This gives us confidence that while there may well be continued frictions over Taiwan and the South China Sea, for instance, Chinese and American leaders will ensure that these are contained. The Middle East remains a dangerous place but unless there is a huge disruption of oil supplies to the rest of the world, it is unlikely that the tragic developments there will cause economic dislocation elsewhere.

In addition, there are clear signs that the authorities in China are stepping up their support for the economy. The Chinese economy will probably continue to endure strains, given the troubles in the property sector and among highly leveraged entities such as local governments. But targeted government measures will help ensure that the country maintains economic growth at a pace similar to last year’s.

Second, even though the cost of capital may have risen, improving economic conditions and prospects for stronger returns on investment should boost investment spending.

There is a whole host of factors that will help promote investment in India and Southeast Asia.

First, supply chains are undergoing a reconfiguration as a result of the US-China tussle. Companies are “de-risking” by shifting production out of China. Company announcements and foreign investment approvals data in the region suggest that this reconfiguration is picking up pace and broadening out to benefit Southeast Asia and India. The United Nations reports that Asia-Pacific attracted US$302 billion worth of greenfield projects in January to September 2023, up 35% over the same period in 2022. It noted that Asean had emerged as the top region for greenfield investments while India was cementing its position as a major destination for foreign investment given its rapid growth, large pool of labour and the size of its domestic market. As foreign investors expand factories, local suppliers and providers of support services will see opportunities and also raise investment in areas such as industrial estates, component production and logistics services.

Second, infrastructure spending is likely to be stepped up after a setback during the pandemic. In Thailand, the new government is keen to demonstrate its capacity to boost the economy through initiatives such as the Eastern Economic Corridor (EEC). To enhance the attractiveness of the EEC, some 77 infrastructure projects in transport, totalling THB337.8 billion (about US$10 billion or RM46 billion) are planned. Similarly, in the Philippines, the Marcos administration is keen to improve infrastructure — state infrastructure expenditure and other capital outlays surged 19% in the first nine months of the year, substantially exceeding the budgeted amounts.

This surge in infrastructure spending will have two implications. One is to directly increase investment in construction and works. Second is to crowd in more investment as private firms see opportunities that will be created in future as the infrastructure improvements reduce logistics costs by improving connectivity.

Third, advances in technology will spur more investment as well. Take airlines, for example, which have little choice but to invest in new aircraft. Failure to take advantage of advances in jet engine technology, which improves range and fuel efficiency, and in composite materials, which make aircraft much lighter, would mean that their competitors would crush them. That should boost investment in transport equipment. Note that Air India and Indigo, India’s two biggest airlines, are alone buying close to 1,000 aircraft worth around US$150 billion. In Thailand, eight new airlines will begin operations this year, which will lead to more investment in new planes just as Thai Airways International is reported to be firming up an order for around 80 airliners from Boeing.

Fourth, the latest trade data around the region, particularly from South Korea and Taiwan, indicate that a turnaround in export demand is underway, which will boost the manufacturing sector, partly as a result of the upturn in the electronics cycle. Over time, there has been a correlation between manufacturing sector growth and investment in machinery and plants.

Fifth, there are some emerging synergies from regional integration. An example is the rapid transit service between Singapore and Johor that will improve connectivity between the two regions. This should create new opportunities as more Singaporeans shop and spend in southern Johor, encouraging Johor companies to invest to take advantage. More Malaysians will be able to work at higher salaries in Singapore as well. If a Malaysia-Singapore special economic zone is announced, this benefit will be further reinforced.

Finally, the region is just beginning its decarbonisation efforts. This should also spur some new investments as companies seek to green themselves and as countries pursue adaptation and mitigation strategies.

So, what can go wrong?

Much as we believe that there are compelling reasons to expect stronger investment in the region, it is also true that there are many potential pitfalls.

The major concern has to be the global environment. A good part of our case for a new investment cycle rests on foreign investment. But any major blow to confidence could put planned foreign investment on hold. This could result from a geopolitical shock of some kind or some kind of financial dislocation, perhaps because the higher level of interest rates exposes imbalances that regulators had not expected.

Another area to watch will be the elections around the world and in the region. India’s general election is likely to be in April or May while Indonesia’s presidential election is almost certain to go into a second round in June. So, businesses could remain uncertain about policies and the prospects for good governance for close to half the year. Taiwan’s election in mid-January is too close to call, with a chance that a victory for the incumbent party could precipitate an angry reaction from Beijing. The US election will be in November — the chances of former president Donald Trump being re-elected on a platform of more tariffs and toughness towards China adds to the sense of unpredictability in global politics that could deter investment spending.

Finally, the lagged effects of the sharp monetary tightening of the past year could produce more dire impacts on global demand than many of us anticipate. Or the Chinese economy might be more precarious than policymakers and economists appreciate. We are in uncharted territory insofar as the post-pandemic global economy is concerned, so there could be unexpected downside risks.

Conclusion: Overall, a more promising year beckons

As we discussed in the beginning, in the end, it is all about animal spirits. Our judgment is that even if some of the risks above materialise, the effects will be episodic and unlikely to last a prolonged period. Given the pent-up demand for investment and the many factors that could energise entrepreneurs, we think that animal spirits will triumph in the end. If all goes well, a new investment cycle will raise the share of investment in the economy and usher in a period of higher economic growth in India and Southeast Asia.

Manu Bhaskaran is the CEO of Centennial Asia Advisors

Source: The Edge Malaysia

A new investment cycle could produce upside to regional growth

Various green investment opportunities and new technologies are expected to be created in Malaysia following the high commitment given in energy transition efforts, said Prime Minister Datuk Seri Anwar Ibrahim.

He said Malaysia has launched the National Energy Transition Roadmap (NETR) and the investment opportunities should be explored by companies such as ConocoPhilips Company.

ConocoPhilips is a world-leading energy exploration and production company headquartered in Houston, Texas in the United States that currently has operations in 13 countries with approximately 9,800 employees.

Anwar said this through a post on his Facebook page after receiving a courtesy visit from the chairman and chief executive officer of ConocoPhilips Company, Ryan Lance and the president of ConocoPhilips Malaysia, Lisa Bruner here today.

Anwar, who is also the Finance Minister, said that in the meeting Ryan shared the company’s plans especially the investment opportunities in Malaysia that were identified.

“He said one of the attractions for ConocoPhilips in Malaysia is the government’s high governance practices related to the national petroleum company Petroliam Nasional Bhd (Petronas).

“We also discussed the energy transition initiative which is a global effort,” he said. 

Source: Bernama

PM: Various green investment opportunities and new technologies to be created in Malaysia

The government will develop a framework, along with a specific plan to make Malaysia a leading destination and hub for green investment in the region.

Prime Minister Datuk Seri Anwar Ibrahim said the framework is a continuation of various initiatives under the National Energy Transition Roadmap (NETR) to channel investments into high-growth and high-value (HGHV) sectors.

“With regards to the emphasis on green investment, it was decided that the Kerian Integrated Industrial Park will be renamed the Kerian Integrated Green Industrial Park.

“It is hoped that this will be the catalyst for the industries that will be developed in the industrial park to fully transition to renewable energy,” he said in a post on his Facebook page today.

Earlier today, Anwar had chaired the National Investment Council’s (NIC) first meeting of the year to discuss the strategies and direction in boosting investments in the country.

Anwar said the council had also discussed the importance of the semiconductor industry, which contributed to 7.1 per cent of Malaysia’s gross domestic product (GDP).

Following this, Anwar added that the National Semiconductor Strategic Task Force (NSSTF) will be set up to develop the ecosystem of semiconductors and attract strategic investments in the sector.

“All these efforts are steps to ensure that investments implementation in the country will achieve the objectives of the Madani economy.

“This includes positioning Malaysia among the top 30 in terms of the world’s largest economies and the top 12 in global competitiveness within 10 years,” he said.

Through the ‘Madani Economy: Empowering the People’ framework launched by Anwar last year, Malaysia aims to elevate its economy to be among the world’s top 30 largest in less than 10 years, from number 37 in 2022 based on World Bank data.

This includes focusing on greater regionalisation and competitiveness, prioritising economic complexity and moving up the value chain.

Source: NST

PM: Govt developing framework to make Malaysia leading destination for green investment

Prime Minister Datuk Seri Anwar Ibrahim has urged government-linked investment companies (GLICs) and government-linked companies (GLCs) to reduce their overseas investments and increase their domestic investments.

Anwar, who is also the Finance Minister, said the government is, however, prepared to give flexibility to GLCs and GLICs to make investments abroad if there is a need.

“I have given directives to focus on reducing investments abroad. If the excuse given is (investing domestically is) not attractive, what is the rationale for us holding a campaign to attract foreign investors to Malaysia?” he said at the Ministry of Finance’s (MoF) assembly here today.

Anwar has also asked the Finance Ministry and Pantau MADANI to coordinate efforts so that GLICs and GLCs implement strategic investments in line with the New Industrial Master Plan and the National Energy Transition Roadmap.

“I am also asking for the cooperation of GLICs and GLCs to interact directly with the leaders to ensure the implementation of (their) programmes is in accordance with the policies we have determined.

“For example, energy transition and digital transformation are very urgent and critical for the country and require the involvement of all. If we are not fast in making changes (in terms of) our education system and our governance, we will fall behind,” he said.

Anwar said that in their pursuit of profits, GLICs and GLCs should also take on a larger corporate responsibility in national development, including improving the welfare of their employees.

“I still remember the early reports when we privatised Tenaga Nasional and Telekom Malaysia Bhd. I said that after the privatisation and they record large profits, the finance minister should say thank you.

“So I am saying thank you, but I also ask about their unresolved (worker) issues, such as the hardcore poor families under Tenaga and Telekom. Does the problem lie with the ministry? It is certainly the companies’ problem.

“If there are 15,000 workers and 5,000 are without homes, is it not possible to plan for the building of staff accommodation? I don’t think it is right that companies make profits by talking about commercialisation and then pass on the burden of this low-income group to the ministry and government to deal with,” he said.

Hence, Anwar said, he wants GLICs and GLCs to submit reports to the government within a month detailing their planning on investment, Bumiputera, staff accommodation and education, including enhancing the quality of education.

At the function, Anwar also expressed his appreciation to the Inland Revenue Board (LHDN) and Royal Malaysian Customs Department for surpassing the collection targets set for last year.

LHDN managed to collect RM183 billion last year compared with RM175 billion in 2022, while the Customs Department collected RM55 billion in revenue against RM53 billion in the year before.

Source: Bernama

PM urges GLCs, GLICs to reduce overseas investments and focus more on domestic market

The Silver Valley Technology Park (SVTP) development in Kanthan is expected to bring in RM14bil foreign direct investment (FDI), says Datuk Seri Saarani Mohamad.

The Perak Mentri Besar said this RM1.03bil project would also create 13,000 new job opportunities for the people of Perak.

Saarani said he was optimistic that the development of SVTP would provide an alternative for Perak-born graduates to return back here to contribute to the state through the job opportunities provided.

“SVTP, which is located in a strategic location between the Kanthan Industrial Park and Meru Raya Town, already has a supporting ecosystem including existing basic facilities which provides an added value in attracting investors.

“To ensure that the SVTP is capable of being a catalyst for the state’s industrial development and becoming the country’s new industrial hub, aspects of quality and safety will not be compromised,” he said.

Saarani told reporters this on Monday (Jan 8) after witnessing the Joint Venture Agreement ceremony between Perak State Development Corporation, its subsidiary Perak Corp and Advancecon Holdings Berhad on the establishment of the park.

Saarani said all issues regarding the illegal squatters in the area where SVTP would be set up have been resolved.

“We have provided alternative land to the farmers.

“So we are moving forward, and there is no looking back,” he added.

Saarani, in a speech earlier, said that the project, after being delayed for almost two decades due to various constraints and obstacles, is now going through development thanks to effort made by the state government though the state development corporation.

Source: The Star

The Silver Valley Technology Park will bring RM14bil in FDI to Perak, says Saarani

The Iskandar Regional Development Authority (IRDA) has set a new cumulative investment target for Iskandar Malaysia of RM636 billion by 2030, after the initial target set during the inception of the economic region was surpassed successfully.

Its chief executive, Datuk Dr Badrul Hisham Kassim, said since the establishment of Iskandar Malaysia in 2006 till September last year, the region had recorded total cumulative investments of RM409.5 billion, exceeding the initial target of RM383 billion that IRDA had aimed based on the Comprehensive Development Plan (CDP) 2006 to 2025.

He said the RM383 billion target, which was recorded in February last year, was achieved almost three years ahead of the 19-year-long target, thus showing that Iskandar Malaysia and Malaysia’s offering of various competitive advantages, continue to attract investors’ interest and trust in the country.

“This gives us the confidence to double our cumulative investment target by 2030 which we stamped in our latest CDPiii Iskandar Malaysia 2022-2030.

“At the end of the next seven years, we are targeting to achieve RM636 billion in cumulative investments and we believe that this is possible, especially with the full support of the government through the Johor-Singapore Special Economic Zone and the Special Financial Zone initiatives as announced by the government recently,” he said in a statement here, today.

Badrul Hisham said both the special economic and financial zones would play a big role in the future of Iskandar Malaysia.

He said Iskandar Malaysia recorded committed investments of RM33.6 billion from January to September last year, with RM11 billion having been realised.

“The main contributors are from the business services sector which includes investments in regional data centres amounting to RM22.4 billion and the manufacturing sector with RM7.7 billion,” he added.

Source: Bernama

IRDA sets new cumulative investment target of RM636b by 2030

The world was made to believe that ESG investments would save the environment and bring a more just and equitable world

WHERE history is concerned, it can be said that the environmental, social and governance (ESG) investing principles became fashionable in mid-2010’s as the global market was awash with surplus money coming out from the US’ quantitative easing (QE) measures.

Financial failures resulted from the over-extended and over-creative profiteering US banks gave a perfect excuse for the Federal Reserve (Fed) to bail-out their cronies using (American) public money by introducing QE, first from November 2008 to March 2010, and the second from November 2010 to June 2011.

During these two periods, the Fed has purchased toxic banking assets totalling approximately US$2.15 trillion (RM11.62 trillion), consequently putting trillions of dollars into the hands of avaricious investment funds (also known as shadow banks) to turn their focus on global markets and opportunities.

When the United Nations (UN) General Assembly adopted the 17-points Sustainable Development Goals (SDGs) in 2015, these investment funds had a perfect template served on a silver platter. Here, it has a universal framework for investments with lofty, out-of-this-world ambitions to address poverty, inequality, climate change and environmental degradation.

Aligning these SDGs with ESG was easy.

These funds collaborated with UN to come out with a six-point Principles for Responsible Investment (PRI), incorporating ESG factors into investment decision-making and ownership practices.

With impossibly grandiose objectives, and no precedence or any form of benchmarking to refer to, it took a breeze for these funds, scheming with global consultancy firms, to dupe the world into thinking that their advocated ESG investments will save the environment and bring about a more just and equitable world.

They said that carbon capture technologies and electric vehicles (EVs) would avert global environmental disasters, conveniently leaving out key details of how carbon capture initiatives are merely a drop in the sea of global pollution. Or of how EV-making technologies are in fact wrecking a much-much worse havoc onto the atmosphere and environment.

In the meantime, these investment funds enriched themselves with ridiculous amount of wealth.

Last year, the biggest of them all, BlackRock Inc, boasted of managing assets (asset-under-management or AUM) worth more than US$9.42 trillion, making it effectively bigger than the individual annual economic output of almost all 189 economies in the world.

Only US (US$25 trillion) and China (US$17 trillion) have bigger annual GDP than BlackRock’s AUM.

While enriching themselves, BlackRock had actually never stop mocking the very standards that they used to justify their ESG investments. Its holdings in weapon manufacturers such as Lockheed Martin Corp, Northrop Grumman Corp, Boeing Co, General Dynamics Corp etc — the biggest betrayers of ESG essence of humanity and sustainable life — were maintained, if not increased.

These arm manufacturers were directly responsible in weaponising the US and its allies, notably the UK and Israel, who murdered and responsible for deaths of millions of people in the invaded nations of Afghanistan, Iraq and Palestine, as well as in most armed conflicts worldwide.

Energ y companies were derided for shambolic returns in improving carbon release to the atmosphere and yet, BlackRock continues to re-invest into oil and gas companies such as Occidental Petroleum Corp, greenwashing environmental damages with mediocre, unproven projects with fancy names.

And this mind-numbing hypocrisy, unfortunately, is becoming a global trend.

Even in Malaysia. Go check out the recent ESG research notes issued by one prominent investment bank on Main Market-listed Leong Hup International Bhd.

The poultry company, one of the biggest poultry producers in the region, scored very poorly on its ESG metrics, both quantitatively and qualitatively. In fact, if the passing rate is the universal 40%, Leong Hup International has failed miserably, scoring a meagre 18% as it violates almost every ESG metrics stated.

And yet, this prominent investment bank is continuing to recom mend to its customers to ‘Buy’ Leong Hup International shares. This was despite revelations that it has not developed any concise sustainability policy with traceable date or long-term commitment to track progress.

The notes had also disclosed that Leong Hup International does not has any ESG policy, neither an ESG committee nor long-term ESG targets to be fulfilled. “As per our ESG assessment, Leong Hup International lacks transparency in key ESG metrics and long-term emission targets.”

Not only that, it was acknowledged that it is one of five feed producers recently fined by the Malaysian Competition Commission (MyCC) under suspicions of manipulating feed prices, with RM157.5 million to be paid out of the cumulative RM415.5 million fine.

Leong Hup International is no stranger to run-ins with the law either. In 2018, Leong Hup International, along with 12 other fresh chicken suppliers, were fined SG$27 million (RM94.39 million) for anti-competitive practices by the Competition and Consumer Commission of Singapore. Nearly half of the cumulative fine, SG$11.4 million, was Leong Hup International’s portion.

The research notes admitted that as Leong Hup International seeks to challenge MyCC’s findings, it has not imputed the impact of the penalty into its recommendation.

Yet, it’s a ‘Buy’; as advised to its customers.

Now, if their customers could not see the mockery, or if the market authorities could not be bothered to find the ludicrousness of this advice, it could go down as a new low in the Malaysian stock exchange history.

Source: The Malaysian Reserve

What ESG?

Malaysia must be willing to take calculated risks in forging a new economic future for Malaysia, especially in the digital and green economies, to make investment and trade the key drivers of economic growth, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

He said this is one of the points being focused on by the Investment, Trade and Industry Ministry (Miti) this year, which also includes properly executing the national plans.

“2024 is an important year to build on the foundations we have laid,” he said on his social media account today.

He said that another point of focus is to stay the course no matter how hard the challenges.

“I keep reminding myself, we must consistently explain to the rakyat why we do what we do and how it benefits the public in the long run,” he said.

Tengku Zafrul said looking back at 2023, it was an important year for Miti in forging a more resilient, inclusive and sustainable economic future for Malaysia on all fronts – investment, trade and industries.

“The most sustainable outcomes will always take time to execute but, like it or not, external changes will happen.

“Ergo, we must make sure Malaysia’s industry is ready sooner rather than later and Miti is staying the course,” he said.

He said Malaysians must adopt “moonshot thinking”, an attitude that pushes individuals to firmly believe in achieving something seemingly impossible, such as radical solutions using disruptive technology and approaches to solve seemingly insurmountable problems.

“My professional New Year’s resolution is to help more Malaysians feel this way and give them reasons to do so.

“Ultimately, the goal is to strengthen Malaysia’s economic future, where our youths have jobs with decent wages and our companies are profitable,” he added.

Source: Bernama

Malaysia must take risk in forging new economic future

Malaysia is committed to achieving the commitments made in the Paris Agreement 2015 and materialising the objectives of the United Nation’s (UN) Sustainable Development Goals (SDGs).

Dewan Negara president Tan Sri Wan Junaidi Tuanku Jaafar said the recent shift in Malaysia’s policy to allow the export of commercial renewable energy is poised to generate economic benefits.

“By reinvesting the income from this initiative into national development, it aims to counteract the impacts of climate change and enhance the quality of life for its people.

“Malaysia is entering Phase Two of the SDG Road Map, which coincides with its 12th Malaysia Plan 2021-2025,” he said when speaking at the 27th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) in Kampala, Uganda yesterday.

Wan Junaidi said while the SDGs and Paris Agreement 2015 are two separate international treaties, both share a common overarching goal to promote global sustainability and address environmental challenges of complex proportions facing humanity, promoting prosperity while safeguarding the planet.

In September 2015, the UN initiated the SDGs which set of 17 global goals that were adopted by all UN member states as part of the 2030 Agenda for Sustainable Development, a global commitment to achieving a more sustainable and equitable world by 2030

He said in localising the SDGs, several projects were carried out in 57 parliamentary constituencies from 2020 to 2022 nationwide, addressing the concerns of vulnerable groups such as indigenous communities, farmers, small-scale fishery workers, B40 residents, single parents, and elderlies.

Wan Junaidi also pointed out Sarawak’s role in contributing to Malaysia’s objectives through initiatives such as the Hydrogen Economy Roadmap, Hydrogen Energy Transition Roadmap, and other initiatives to develop renewable energy.

Meanwhile, Wan Junaidi shared about the country’s commitment to the Montreal Protocol and Paris Agreement 2015 through several initiatives such as the National Energy Transition Roadmap and maintaining forest cover as pledged in the Earth Summit in Rio, 1992.

Besides that, he shared Parliament’s action to install photovoltaic systems to harness energy from the sun to generate power for all parliamentary buildings’ use and the installation is expected to be completed and commissioned by mid-2024.

“We anticipate a total estimated energy generation of 1.9 GWh per year and will result in estimated substantial savings of electricity bill of RM693,000 annually,” he added.

The CSPOC, held from January 3 to 6, aims to strengthen diplomatic ties and international cooperation among the participating countries and highlight the importance of the Commonwealth as a platform to foster understanding and cooperation among member countries.

Source: Bernama

Malaysia committed to SDG, Paris Agreement 2015 objectives

Malaysia is set to achieve the 2023 gross domestic product growth target of 4-5 per cent for 2023 based on the good economic momentum seen so far, the Department of Statistics Malaysia (DoSM) said.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said consumer spending sentiment is normally at an above average level in the fourth quarter (4Q) of the year compared to other quarters.

“It is during 4Q that consumers tend to spend more than usual, including for back-to-school, new year and festive spending, with demand for goods being higher.

“Demand is the largest component of GDP so we expect there’s room for growth in 4Q GDP performance,” he told Bernama prior to being interviewed on Bernama TV’s Ruang Bicara programme last night.

Asked whether GDP growth for 4Q is forecast to be higher than in 3Q, Mohd Uzir said it should be gauged based on available data.

Looking at the Industrial Production Index (IPI) for October, he said, the mining, electricity and manufacturing sectors recorded growth, while Malaysia’s trade also expanded and continued to show a surplus.

It was reported that trade surplus reached RM12.87 billion in October, marking the 42nd consecutive month of trade surplus since May 2020.

At the same time, unemployment has seen a decline, he continued. The country’s unemployment rate in October stood at 3.4 per cent.

“So the data for October signals that the Malaysian economy is moving towards growth. Up to this month (January), we have seen economic activities in November and December remaining in growth territory .

“GDP growth for the first three quarters combined was already 3.9 per cent. Therefore, I expect the country’s economic growth for 2023 is going in the direction that the government has targeted,” he said.

According to Bank Negara Malaysia, the Malaysian economy grew by 3.3 per cent in the third quarter (second quarter: 2.9 per cent), while overall, the economy expanded by 3.9 per cent in the first three quarters of 2023.

On the Central Database Hub (PADU) which went live on Jan 2, Mohd Uzir said that up to 8pm on Jan 3, the system has recorded a total of 396,181 registered users. Malaysians have been given until March 31 to update their information in the system.

Based on the response towards PADU usage to date, he expressed confidence that the target of getting 29 million Malaysian citizens to register will be achieved.

“To ensure that no one is left out from benefitting from the implementation of PADU, the (federal) government will conduct engagement sessions with leadership at the state government level to achieve the target set,” he said.

He added that feedback received by DoSM and its staff on the ground so far has indicated positive reception to the system in the rural areas, aided by the efforts of the Information Department (JaPen).

Source: Bernama

Malaysia set to hit 2023 GDP target based on positive economic momentum – DoSM

The Melaka state government is offering various special incentives to investors from China in an effort to attract investment in various sectors including the tourism industry, particularly involving arts and culture.

Melaka Chief Minister Datuk Seri Ab Rauf Yusoh said the initiative also aims to strengthen bilateral relations between Malaysia and China in conjunction with the 50th anniversary of diplomatic relations between the two countries this year.

“The state government is focusing on attracting investors from China in all sectors including the tourism sector because Malaysia, particularly Melaka, has a history of close relationship for the last 600 years with China, especially during the heydays of Admiral Cheng Ho.

“Thus, the state government is offering special incentives to welcome more investors from China,” he told reporters after officiating at the Edra Education Support Programme 2023 and the launch of the Edra book donation campaign which was also attended by the state education, higher education and religious affairs exco member Datuk Rahmad Mariman

Ab Rauf said the incentive offered was an attraction for several investment companies from China to invest in Melaka and expand their business, including Edra Power Holdings Sdn Bhd.

He said that in conjunction with the celebration of the 50th anniversary of diplomatic relations between Malaysia and China, Melaka will also participate in the celebration through various programmes and activities that have been designed.

The Edra Education Support Programme implemented since 2005 was a programme for the distribution of school supplies to students as well as financial contributions to primary schools.

In the programme, a total of 10 selected schools in the Alor Gajah district received assistance from Edra Power Holdings involving shoe vouchers and school bags worth RM120 as well as financial assistance to  schools involving an allocation of RM4,000 to RM6,000 for each school involved.

Also, more than 2,000 exercise books were donated to the schools involved, such as books for mathematics and science subjects.

Source: Bernama

Melaka offers special incentives to investors from China