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Malaysia welcomes UAE companies to invest in renewable energy, data centre projects — PM

Malaysia welcomes companies from the United Arab Emirates (UAE) to invest in Malaysia involving renewable energy (RE) projects, including data centres, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that during his three-day working visit to the UAE, which began on Sunday, he held meetings with sovereign wealth fund companies from the country.

Anwar said that during the meeting with UAE state-owned renewables firm Masdar, the government informed them that it would facilitate Masdar’s investment plans in Malaysia through joint ventures with local companies for green energy projects, infrastructure, battery storage, and strengthening the energy grid.

“For the Abu Dhabi Investment Authority [ADIA], this involves projects related to the New Industrial Master Plan 2030 (NIMP 2030) and the Madani Economy framework, as well as projects in the Johor-Singapore Special Economic Zone (JS-SEZ), such as advanced manufacturing.

“It also includes infrastructure development, green technology, RE, logistics, healthcare, the digital economy, and education,” he said in a press conference with Malaysian journalists at the end of his visit to the UAE on Tuesday.

He also welcomed ADIA’s intention to collaborate with global infrastructure partners (GIP) on the privatisation of Malaysia Airport Holdings Bhd (MAHB).

ADIA’s involvement is crucial in MAHB’s reorganisation or any potential privatisation involving Khazanah Nasional’s control. With experience at airports in Dubai, Abu Dhabi, Heathrow, and Paris, ADIA brings valuable expertise.

“Khazanah’s partnership with ADIA, along with the backing of the nation’s leadership, is regarded as a major project,” he said.

Anwar said his meeting with Mubadala discussed the production of liquefied natural gas (LNG) and the development of gas-related infrastructure, as well as the development of value chains such as blue hydrogen and carbon capture, utilisation, and storage (CCUS), along with projects in JS-SEZ.

Source: Bernama

Malaysia welcomes UAE companies to invest in renewable energy, data centre projects — PM


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Investors can look forward to a significant reduction in corporate income tax rate when they invest in the Johor-Singapore Special Economic Zone (JS-SEZ), says a state executive councillor.

Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said among the main sectors that will be promoted under the initiative are aerospace, pharmaceuticals, medical devices, artificial intelligence and quantum computing, as well as speciality chemicals.

“Investors that fund more than RM1bil in the JS-SEZ will be offered a corporate income tax rate of 5% for a period of 15 years while investors that finance RM500mil to RM1bil will be offered 5% for a period of 10 years.

“The rate is a significant reduction from the country’s current corporate income tax rate of 24%,” he told reporters after launching the Green Energy Supply Forum at a hotel here yesterday.

Lee said under the JS-SEZ, other projects such as integrated theme parks and MICE (meetings, incentives, conventions and exhibitions) events will also get special incentives, to be announced later in phases.

He said the Johor government is also slated to meet with its Singapore counterpart next week on the implementation of the JS-SEZ following the signing of the agreement on Jan 7.

“The planning stage is over and we are moving into the implementation stage.

“This will be our first meeting with Singapore (after the agreement signing) on implementation efforts including to pull in investors and hold joint action events,” he said.

He added that an internal workshop involving Johor’s departments and agencies will be held tomorrow to discuss the zone’s overall master plan rollout.

On Jan 7, Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart Lawrence Wong witnessed the exchange of the joint agreement, which took place during the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya.

Source: The Star

Low tax rates to reel in investors


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The Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is expected to boost total bilateral trade between the two countries by at least 60 per cent in five years, contributing to a more sustainable economic growth.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the CEPA is also expected to pave the way for strong comprehensive economic cooperation through trade facilitation as well as market access expansion between Malaysia and the UAE.

The UAE is a major trade hub for the Middle East and North Africa (MENA) market.

“The successful signing of the MY-UAE CEPA in Abu Dhabi on Jan 14, 2025, marks a significant achievement for both countries, as this is the first free trade agreement between Malaysia and a West Asian country,” Tengku Zafrul said in a statement.

Tengku Zafrul also took the opportunity to hold a bilateral meeting with UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi, to discuss various issues, including the implementation of the CEPA and potential trade and investment in areas of mutual interest.

The two ministers also discussed expectations from the ASEAN-Gulf Cooperation Council (GCC)-China Summit, which will be held in May 2025 during Malaysia’s ASEAN 2025 chairmanship.

“The negotiation period for the CEPA which only took 11 months reflects the commitment of both Malaysia and the UAE to strengthen their economic cooperation for mutual benefit.

“The signing of the CEPA is set to position Malaysia as a dynamic trade and investment hub, opening new opportunities for Malaysian businesses and creating high-value jobs, as well as making Malaysia a gateway for UAE businesses to the ASEAN market,” Tengku Zafrul said.

The Investment, Trade and Industry Ministry (MITI), through its agency the Malaysian Investment Development Authority (MIDA), also organised meetings between Prime Minister Datuk Seri Anwar Ibrahim and sovereign wealth funds from Abu Dhabi, including the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, as well as the UAE’s leading renewable energy company MASDAR.

MITI said potential key sectors for deeper collaboration with these sovereign wealth funds include renewable energy, artificial intelligence, and the semiconductor industry.

The ministry also welcomed ADIA’s interest to collaborate with Global Infrastructure Partners in the Malaysia Airport Holdings Bhd transformation exercise.

Moreover, Malaysia and the UAE have signed a memorandum of understanding on investment cooperation in data centre projects.

Cooperation in these sectors is expected to add value to Malaysia’s economic development and harness Emirati expertise and capital, MITI said.

The UAE was Malaysia’s second-largest trading partner in the West Asian region in 2023, after Saudi Arabia.

It is also Malaysia’s second-largest export destination after Turkiye and the second-largest source of imports after Saudi Arabia among countries in the West Asian region.

In the first 11 months of 2024, bilateral trade between Malaysia and the UAE amounted to RM39.53 billion, an increase of 8.6 per cent year-on-year.

This relationship reflects the UAE’s strategic importance as a key economic partner for Malaysia in the region.

In terms of foreign investments, the UAE is one of the biggest investors in Malaysia among the GCC member countries.

As of September 2024, 35 manufacturing projects valued at RM1.51 billion have been implemented by investors from the UAE.

These investments have created 2,187 job opportunities, contributing to the economic development and growth of the country’s manufacturing sector, MITI said.

Source: Bernama

Malaysia-UAE CEPA set to boost bilateral trade by 60% – Tengku Zafrul


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The Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) signed on Tuesday has set a new record for Malaysia as the fastest free trade agreement (FTA) to be concluded in just 11 months, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said this was proof of the commitment and cooperation of both parties.

“This agreement is expected to grow bilateral trade volume by at least 60 per cent within five years, contributing to a more sustainable economic growth,” he said in a statement.

Tengku Zafrul said CEPA is also the first free trade agreement between Malaysia and a member country of the Gulf Cooperation Council (GCC).

The successful conclusion of the negotiations was an important milestone in efforts to strengthen economic relations between Malaysia and UAE, he said.

“Insya-Allah, CEPA will catalyse tighter economic integration and contribute to shared prosperity and sustainable growth for both countries.

“But our efforts do not stop here (as) our next target is to negotiate free trade agreements with the GCC, which consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE,” he said.

Source: Bernama

Malaysia-UAE CEPA the fastest FTA concluded – Tengku Zafrul


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Negeri Sembilan continues to be the choice destination for investors with the state government’s commitment to continue to engage with potential domestic and foreign investors actively, said Menteri Besar Datuk Seri Aminuddin Harun.

He said the Malaysian Investment Development Authority recorded RM3.0 billion in investments for the state for the second quarter of 2024.

“Negeri Sembilan is also focusing on improving the state’s economic competitiveness and growing its gross domestic product sustainably and inclusively towards the 13th Malaysia Plan,” he said.

Aminuddin said this when delivering his congratulatory and loyalty speech in conjunction with the 77th birthday of the Yang Dipertuan Besar of Negeri Sembilan, Tuanku Muhriz Ibni AlmarhumTuanku Munawir, at Istana Besar Seri Menanti today.

Meanwhile, Aminuddin said the National Investment Council, which convened on Oct 16 last year, had approved the Central Region Industrial Cluster Development initiative covering Negeri Sembilan, Selangor, Melaka and Kuala Lumpur.

He said this initiative aims to create a specific industrial cluster identity in the manufacturing sector through joint ventures and synergistic efforts among states to drive targeted investments.

Aminuddin said this effort aligns with the New Industrial Master Plan 2030, which focuses on cross-border economic development involving Bandar Enstek and Nilai.

Additionally, he said the state government supports the proposal for a new highway network involving the Senawang KLIA Expressway as well as the West Coast Expressway (WCE) extension connecting Banting, Selangor, across Negeri Sembilan and Melaka to Gelang Patah, Johor.

“We are confident that the WCE alignment along the Port Dickson coast will provide economic and development benefits to the people of this state, which is among the choice destinations for investors,” he said.

Besides, Aminuddin stressed that the state government would continue to focus on reforming efforts involving new fields, such as artificial intelligence (AI), digital transformation, and energy transition, in state development.

“Seremban City is in the middle of phase two of the smart city development framework, in addition to the state government’s development of the ‘Smart AI Container Port’ in Port Dickson.

“The development plan also involves proposed integration with the free industrial zone with components to promote entrepot trade and encourage export-oriented manufacturing activities,” he added.

Source: Bernama

Negeri Sembilan remains a choice destination for investors – MB Aminuddin


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Malaysia and the United Arab Emirates (UAE) have agreed to boost strategic cooperation in politics, economy and investment, defence, renewable energy (RE) and nuclear, tourism, sustainability as well as artificial intelligence (AI).

Prime Minister Datuk Seri Anwar Ibrahim said this was the outcome of his audiences with UAE president Sheikh Mohamed bin Zayed Al Nahyan on Jan 14 and UAE vice president and prime minister Sheikh Mohammed bin Rashid Al Maktoum in Dubai on Jan 13.

Anwar said his presence at the Abu Dhabi Sustainability Week (ADSW) 2025 also accorded him the opportunity to deliver his views on Malaysia and Asean’s role in the issue of sustainability.

He said his audience with Sheikh Mohammed was also an opportunity to strengthen bilateral ties.

“What we achieved was the Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA), which will enable us to elevate bilateral cooperation including investment and trade.

“The UAE is the first country from the Gulf Cooperation Council (to sign a Free Trade Agreement) with us. We see this as a very good start,” he told Malaysian media at the end of his visit today.

He said the agreement targets an increase in the country’s exports to the UAE to US$13.5 billion by 2032.

He said his meetings with UAE sovereign wealth funds such as Abu Dhabi Investment Authority (ADIA), Mubadala and Abu Dhabi Future Energy Co PJSC (Masdar) were also fruitful.

Anwar said Malaysia welcomed Masdar’s cooperation and participation in the energy sector.

On Monday, the prime minister meet with Mohamed Jameel Al Ramahi, chief executive officer of Masdar.

He said the government informed them that it would facilitate Masdar’s investment plans in Malaysia through joint ventures with local companies for green energy projects, infrastructure, battery storage, and strengthening the energy grid.

Anwar also had a discussion with Sheikh Hameed bin Zayed Al Nahyan, managing director of ADIA, one of the world’s largest sovereign wealth funds.

“This involved AIDA’s participation in the restructuring of Malaysia Airports Holdings Bhd (MAHB). Their participation is key given their experience in Dubai, Abu Dhabi, with the London Heathrow airport and Paris’ Charles De Gaulle airport.

“We discussed ADIA’s close cooperation with Khazanah Nasional. The ADIA leadership, as well as the country’s leadership, regarded the (MAHB) project as a major one which in which they would extend all support to Khazanah,” he said.

The discussion with ADIA, he said, also involved projects related to the New Industrial Master Plan 2030 (NIMP 2030), the Madani Economy framework, as well as projects in the Johor-Singapore Special Economic Zone (JS-SEZ), such as advanced manufacturing.

“It also includes infrastructure development, green technology, RE, logistics, healthcare, the digital economy, and education,” he said.

On the meeting with Mubadala, he said it revolved around liquefied natural gas, which also involved Petronas and Gentari.

They also discussed the development of gas-related infrastructure, as well as exploring the development of value chains such as blue hydrogen and carbon and capture storage (CCS) in Kuantan in Pahang, Kerteh in Terengganu and Sarawak.

“We also touched on the new Kerian Integrated Green Industrial Park (KIGIP) project on renewable energy, as well as the JS-SEZ,” he said.

The prime minister, on the sidelines of the ADSW 2025, also had a discussion with Kenyan president William Ruto and Ugandan president Yoweri Museveni to foster better ties with the African nations.

On the Asean and GCC Summit in May, he said Abu Dhabi ruler Sheikh Mohamed had given his commitment to attend together with other GCC heads of state and governments.

Source: NST

Malaysia, UAE to boost strategic ties in economy, renewable energy and AI


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Prime Minister Datuk Seri Anwar Ibrahim said long-term investments involving healthcare, airport operations, and energy sectors are expected following his working visit to the United Arab Emirates (UAE).

Anwar, currently on a three-day working visit to the UAE since Sunday, said in a post on X today that the strong synergy between Malaysia and the Abu Dhabi Investment Authority (ADIA) reflects confidence in the country’s potential for sustainable and competitive economic growth.

According to his post, Anwar, who is also the Finance Minister, wrote: “ADIA comes together with other global investment partners to explore various investment opportunities available in Malaysia.

“It is not impossible for long-term investments to be injected, including in the healthcare, airport operations, and energy sectors,“ he wrote.

Anwar began the second day of his working visit yesterday and met three senior management officials from UAE’s sovereign wealth fund ADIA managing director Sheikh Hamed Zayed Al Nahyan, Mubadala CEO Khaldoon Khalifa Al Mubarak, and state-owned renewable energy company Masdar CEO Mohamed Jameel Al Ramahi.

Source: Bernama

Long-term investments expected following UAE working visit – PM Anwar


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Sarawak aims to expand its involvement in the aerospace sector by collaborating with a company in Tokyo, Japan, to produce textiles designed for astronaut use.

Sarawak Premier Tan Sri Abang Johari Openg emphasised the importance of incorporating low-carbon elements in the textile production process, aligning with the state’s green economy agenda.

“We prioritise low-carbon methods in producing textiles from liquid gas used by astronauts.

“Currently, we are working with a company in Tokyo to develop low-carbon materials based on chemicals to create the textiles. Perhaps one day, astronaut suits labelled ‘Made in Sarawak’ will become a reality,” he added.

Abang Johari said this in response to a question during a town hall session, Eight Years With The Honourable Premier of Sarawak, last night.

During the session, Abang Johari expressed his vision of transforming Sarawak into the “Norway of the East” by fostering a stable economy and efficiently managing its resources.

He said Norway shares similarities with Sarawak in its strengths in oil and gas while also excelling in clean energy and advanced technology.

“If there is an economic crisis in Europe, Norway remains unaffected because of its effective resource management. This is why I envision Sarawak becoming the Norway of the East,” he stated.

Abang Johari emphasised that achieving this goal requires swift action and diligent efforts to elevate Sarawak to the highest level of progress.

“We must strive to reach that standard and work tirelessly. That is why I am focusing on advancing efforts in various fields, including education and engineering,” he added. 

Source: Bernama

Sarawak collaborates with Japan to produce textiles for astronauts


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NEGRI Sembilan, on track towards attaining developed-state status and progressively moving towards a digital-centric economy, has outlined plans to attract more investments to further boost revenue and achieve its vision to become a prosperous, inclusive and sustainable state by 2045.

Taking advantage of its strategic location and proximity to the country’s main airports and seaports, the state administration plans to open more industrial areas especially the greentech and high technology industries to achieve this.

Negri Sembilan industrialisation and non-Muslim affairs committee chairman Teo Kok Seong said the state government has taken a proactive approach and hopes to open at least 10 new industrial areas in the state in stages in the coming years to meet this objective.

“As of now, we have more than 50 industrial areas in Negri Sembilan with proper infrastructure facilities.

“Of these, only the Techpark@Enstek phase 2 in Bandar Enstek and Springhill Industrial Park phase 1 and 2 in Port Dickson still have lots to be sold,” he said, adding that at the other industrial areas, there were only ready-built factories or godowns that were available for sale or rent to interested investors.

Realising that the state was quickly running out of industrial areas to cater to all types of industries, it came up with a plan to aggressively open more areas in the next four years to meet rising demand.

He said two industrial areas should start operating this year.

“The 514-acre Hamilton City Industrial Area in Nilai by Sime Darby Properties, which is the first project under the Malaysia Vision Valley 2.0 should be ready this year.

“The 100-acre Kelisa Mewah Industrial Area in Sg Gadut by Azza Mewah Sdn Bhd earmarked for light industries will also be ready for occupancy in the first quarter of this year,” he said.

Teo said the 523-acre SPD Techvalley Industrial Area in Senawang by Seri Pajam Development, being developed under the “greentech” concept in a guarded area, would be ready by 2026.

“This industrial area will be built under the Smart Sustainable Managed Industrial Park concept and is the first in South-East Asia to be awarded the Leadership in Energy and Environment Design for cities and the industry community.

“This area will also strictly comply with ESG standards,” he said.

Apart from SPD Techvalley, three more industrial areas will be opened in 2026.

The first is the 616.6-acre phase three of Techpark@Enstek at Bandar Enstek by Tabung Haji Properties.

“This particular area will focus on the halal industry hub, cleantech and high technology industries,” he said.

The next project, Teo said, is a 760-acre Vision Business Park integrated development (Parcel B) in Labu by Sime Darby Properties.

He said a section of the industrial area will be reserved to support light- and medium-scale industries.

The third, he said, was the 179-acre Springhill Industrial Area (phase 3) in Port Dickson by West Synergy Sdn Bhd which will focus on high-tech light- and medium-scale industries.

Two industrial areas that would be opened in 2027 are the 837-acre NS Semiconductor Valley in Senawang by NS Corporation.

“This investment, which will be in collaboration with the private sector, will focus on high technology industries such as electric and electronics and semiconductor,” he said.

Teo said 2027 will also see the opening of the 122-acre Sikamat Industrial Area in Sikamat by GD Holdings which will cater for the light- and medium-scale industries.

In 2028, the state will have two more industrial areas.

The first is the 2,382-acre MVV TechPark in Labu (Parcel B) by NS Corporation which will be built in collaboration with N9 Matrix Development.

“There will also be a NS Smart Park in Labu (Parcel B) by NS Corporation which is a joint venture with the private sector. The 1,281-acre area will house data centres, smart manufacturing facilities, aerospace, logistics and services industries,” he said.

On Dec 18 last year, the state government signed yet another agreement to develop an industrial park in Bukit Pelandok, Port Dickson.

The understanding between NS Corp, on behalf of the state government and SD Guthrie Bhd and Eco World Development Group Bhd will see the development of a 1,166-acre industrial park with a gross development value of RM2.95bil.

The project, to be developed over an eight-year period, will target both local and foreign investors and help create high-value jobs to further drive the state’s growth agenda.

The industrial park, will among others have industrial lots, ready-built factories and commercial properties that will cater to high-growth sectors such as aerospace, electrical and electronics, logistics and biotechnology.

Teo said the state government has also been attracting healthy investments in recent years which augurs well for its economic growth.

In 2018, the state received RM1.6bil in foreign direct investment (FDI) and another RM1.26bil in domestic direct investment (DDI). In 2019, the FDI increased to RM1.85bil while DDI saw a massive jump to RM5.1bil.

“The following year, the FDI increased further to RM3.8bil and the DDI was RM4.1bil. In 2021, we got RM3.35bil in DDI and RM2.4bil from foreign investments,” he said.

Teo said the state continued to attract investors in 2022 with foreigners pumping in RM6.58bil with another RM2.3bil from domestic investors.

History was made in 2023 when the total investments received went beyond the RM10bil mark. That year, another RM6bil came from abroad while domestic investors put in another RM4bil into the state.

For the first half of 2024, the state had already received investments totalling some RM3bil.

A proposal for the development of a special industrial cluster in the central region and the construction of a smart container port in Port Dickson will also expedite growth in Negri Sembilan and further solidify the country’s position as an investment hub.

The federal government has in principle agreed to the proposal which will include the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

Through the initiative, they hope to attract more high-quality investments in the manufacturing sector in the central region.

The Negri Sembilan Digital Economy Blueprint, a five-year strategic plan aimed at developing a foundation for a digital-centric economy, will also be realised by 2027.

The core of the blueprint rests on the establishment of a digital-powered government, a digital-driven industry, and a digital-ready society.

Within the government, priority will be placed on digitalising-related services and kick-starting the journey towards transforming key Negri Sembilan areas into smart cities.

This blueprint aims to complement the vision of the Negri Sembilan Development Plan 2021-2025 and the Negri Sembilan Structural Plan 2045 towards becoming a prosperous and sustainable state.

Source: The Star

New industrial areas to spur growth


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Some RM100 billion will be injected into Sarawak’s economy over the next five years, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier said this investment will support two transformative projects, namely the construction of a new international airport and a deep seaport in Kuching.

“Both projects are aimed at positioning Sarawak as a rising economic powerhouse in the region” he said at the Majlis Amanat Perdana Premier Sarawak 2025 held at the Borneo Convention Centre Kuching here today.

Abang Johari said the proposed Tanjung Embang Deep Sea Port will be developed in partnership with Petroleum Sarawak Berhad (Petros) to serve as a strategic gateway for energy exports and imports.

“Aligned with the Sarawak Gas Roadmap, this port will facilitate green hydrogen bunkering, liquefied natural gas (LNG) exports, and other energy resources, driving Sarawak’s transition toward renewable energy,” he said.

The Premier said the port will feature state-of-the-art infrastructure and smart technologies to ensure operational excellence and sustainability.

He said the port, which is expected to be operational by 2030, will reinforce the state’s position as a regional leader in sustainable energy and trade.

Abang Johari said the ongoing acquisition of MASwings, now in its final stage, will also position Sarawak as a gateway to Asean.

“With increased fleet capacity and enhanced services, our goal is to boost both domestic and international connectivity, particularly within a four- to seven-hour flight radius, boosting trade, tourism, and investment in the next five years,” he added.

The Premier said his administration’s decision to invest in the dredging of Miri Port will facilitate the handling of larger cargo volumes.

He said the move is set to improve operational efficiency and enhance Miri Port’s role as a strategic port for international trade and regional connectivity.

Touching on the biggest state budget of RM15.8 billion tabled last year, Abang Johari said this allocation reflects the state’s commitment to driving transformative change and economic progress.

He said it is now critical for all agencies to remain focused and dedicated in ensuring the execution of programmes and projects is expedited and implemented efficiently.

He also called on all to align their efforts with the key priorities of the 13th Malaysia Plan (13MP), spanning the period of 2026 to 2030.

“Preparations for the 13MP are already underway, with extensive consultations across ministries, industries, and civil society to ensure an inclusive and comprehensive strategy.

“This process also involves reviewing the achievements of the 12MP, allowing us to build on our successes as we chart the course forward,” he said.

Abang Johari said the Sarawak Economic Action Council (SEAC), comprising members of the Cabinet, academicians, industry players, and government officials will also be called to discuss and finalise the strategies and way forward under the 13MP.

He said efforts under the 13MP will remain multifaceted towards achieving the high-impact outcomes outlined in the Post Covid-19 Development Strategy 2030.

“We recognise that challenges such as climate change, economic disparity, and global uncertainties still lie ahead.

“Hence, the 13MP emphasis will be on enhancing economic resilience through transformation and diversification, advancing digital transformation, fostering social inclusivity, and ensuring sustainability and equitability for all,” he added.

Source: The Borneo Post

Abg Jo: Sarawak economy to get RM100 bln investments in next 5 years


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Abu Dhabi Investment Authority (ADIA), one of the world’s largest wealth funds with assets estimated to exceed US$1 trillion, is committed to continue increasing investments in Malaysia.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said ADIA, which has been investing in Malaysia for a long time, also wants to focus on creating greater value to ensure the success of investments in Malaysia in various sectors, including in the transformation of Malaysia Airports Holdings Bhd. (MAHB).

“As a high-impact global investor, ADIA plays an important role in the infrastructure, health, energy, and various other sectors globally.

“Its major investments at the international level include airports in the United Kingdom and France, Khalifa Port in the United Arab Emirates (UAE), as well as logistics infrastructure projects in India and energy projects in the United States,” he said in a statement here on Monday.

Tengku Zafrul accompanied Prime Minister Datuk Seri Anwar Ibrahim on a three-day working visit to the UAE, where they held a meeting with the top leadership of ADIA based in Abu Dhabi.

He said the meeting in Abu Dhabi opened the way to strengthen strategic investment cooperation between Malaysia and the UAE.

“During this meeting, we discussed with Sheikh Hamed Zayed Al Nahyan, the managing director of ADIA, as well as other leaders such as Khalil Foulathi and Mohamed Al Ameri, who expressed a deep interest in investment opportunities in Malaysia,” he said.

He said that in Malaysia, ADIA’s commitment is evident through investments that are in line with the New Industrial Master Plan 2030 (NIMP 2030) and the MADANI Economy framework.

“Its important contributions include a collaboration with Global Infrastructure Partners (GIP) in MAHB’s privatisation efforts, in addition to investing in major infrastructure projects that support the nation’s sustainable growth,” he added.

Tengku Zafrul said this clearly shows great confidence in the government’s investor-friendly policies that will benefit the people in the long term.

“Through this strategic relationship, we continue to ensure that Malaysia remains a prime destination for high-quality investment, while strengthening economic competitiveness, creating new job opportunities, and boosting the country’s economic development,” he said.

Apart from ADIA, the prime minister and Tengku Zafrul also held a meeting with two other UAE sovereign wealth funds namely Masdar and Mubadala.

Source: Bernama

ADIA to increase investments, create greater value in investments in Malaysia


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The Johor government welcomes international health and medical industry players who wish to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), thus making the sector a key contributor to the state’s economy.

State Health and Environment Committee chairman Ling Tian Soon said several parties have expressed interest in developing health facilities, including hospitals and pharmacies.

He added that foreign investors’ involvement in this industry would position Johor, particularly the JS-SEZ, as a focal point and hub for medical tourism.

“State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han and I had visited countries such as China, South Korea, Japan, the United Arab Emirates and Qatar to promote investment opportunities.

“These investors are confident in the potential of JS-SEZ and are keen to invest in the zone,” he told reporters after a Chinese New Year Dinner at the Che Eng Khor Moral Uplifting Society here last night, with Menteri Besar Datuk Onn Hafiz Ghazi also present.

Source: Bernama

Johor welcomes investors to develop health, medical facilities in JS-SEZ


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The Abu Dhabi Investment Authority (ADIA) has expressed keen interest in further exploring investment opportunities in Malaysia.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this was conveyed to him and Prime Minister Datuk Seri Anwar Ibrahim in their meeting with the company’s senior leadership in Abu Dhabi today.

Zafrul said the discussion involved ADIA managing director Sheikh Hamed bin Zayed Al Nahyan and other management figures such as Khalil Foulathi and Mohamed Al Ameri.

Tengku Zafrul described ADIA as one of the world’s biggest sovereign wealth funds with assets valued at more than US$1 trillion.

He said the meeting opened the door for the strengthening of strategic investment cooperation between Malaysia and the UAE.

AIDA, he said, played a key role in sectors such as infrastructure, healthcare, energy and more globally.

Its international investments include airports in the United Kingdom and France, the Khalifa Port in the UAE, logistics facilities infrastructure projects in India, and energy in the United States.

“In Malaysia, its commitment is exemplified via investments in line with the New Industrial Master Plan 2030 (NIMP 2030) and Madani Economy framework.

“Among its key contributions are its cooperation with Global Infrastructure Partners (GIP) to privatise Malaysia Airports Bhd (MAHB), plus other major infrastructure projects which support national development,” he said.

He said that during the discussion, ADIA, a longtime investor in Malaysia, gave its commitment to elevate and focus on creating greater value to ensure the success of its investments in Malaysia, including MAHB’s transformation.

This, said Tengku Zafrul, demonstrated confidence in the government’s policies which are investor-friendly and can benefit the people in the long-term.

“Through these strategic ties, we will continue to ensure that Malaysia remains a major destination for high quality investments, thus strengthening economic competitiveness, create new job opportunities and spur economic development.

Anwar is currently on a three-day official visit to Abu Dhabi.

Earlier today, he held one-on-one business meetings with leaders from the UAE’s largest sovereign wealth fund companies.

These included ADIA’s Sheikh Hameed bin Zayed Al Nahyan, Khaldoon Al Mubarak, managing director and chief executive officer of state-owned Mubadala Investment Company, and Mohamed Jameel Al Ramahi, chief executive officer of UAE energy giant Abu Dhabi Future Energy Co PJSC (Masdar), a subsidiary of Mubadala.

Source: NST

Abu Dhabi Investment Authority keen to explore more opportunities in Malaysia


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DATA centres (DCs), which have grown in importance in the age of digitalisation, took centre stage in 2024 owing to the massive foreign direct investments (FDI) into the sector and Putrajaya’s recent approval of a total DC capacity of 4gw, making Malaysia a “DC powerhouse” in the region and a prominent player on the global stage. Still, questions remain over the full benefits to be gained from such resource-hungry investments.

A whopping RM90.2 billion in FDI for 12 DCs were committed between 2021 and June 30, 2024, according to the Malaysian Investment Development Authority (Mida). These were primarily by major tech companies like Nvidia, ByteDance, Microsoft, Google and Singapore Telecommunications, which are major data users and processors.

Google, for instance, announced in October a US$2 billion (RM8.9 billion) investment to build its first DC in Malaysia. The global tech giant is also investing US$1 billion in DCs in Thailand. Meanwhile, Singapore substantially bumped up its DC investments to US$5 billion in 2024 from US$850 million in 2022.

Increasing data usage, cloud computing and artificial intelligence (AI) have accelerated the need for DCs, which provide the facilities to store and process data. In other words, they are essential infrastructure to support the digital economy. However, the AI boom has necessitated a new type of DC that supports real-time processing and data storage, often requiring proximity to end-users.

The DC boom is not unique to Malaysia. According to a report by global consulting firm McKinsey & Co, the global demand for DC capacity could rise at an annual rate of between 19% and 22% from 2023 to 2030 to reach annual demand of 171gw to 219gw globally.

“This contrasts with the current demand of 60gw, raising the potential for a significant supply deficit. To avoid a deficit, at least twice the DC capacity built since 2000 would have to be built in less than a quarter of the time,” it said in an Oct 29 report.

In Asia-Pacific, current DC capacity exceeds 10,500mw and is expected to more than double to 24,800mw by 2028, spurred by increasing adoption of cloud computing and AI, which in turn will benefit several industries across the value chain.

According to reports, Singapore currently has more than 70 DCs with a total capacity of 1.4gw. But Malaysia will soon eclipse its southern neighbour, as utility giant Tenaga Nasional Bhd (KL:TENAGA) has signed 31 electricity supply agreements (ESA) with DC operators in the country, for a total energy demand of 4,700mw.

The acceleration in DC capacity is mind-boggling in that Malaysia’s DC market in 2023 only had 40DCs with 100mw to 150mw — a development that took almost 20 years to achieve.

There are two kinds of DC operations — DC colocation and hyperscale DC. In the past, most DCs were built to focus mainly on DC colocation, which is a service provided by DC operators to companies that would rent space, power and connectivity in the DC to host their own servers and IT equipment. As a result, the growth in DC capacity has been in stages, depending on the digitalisation efforts of these companies.

On the other hand, hyperscale DCs are typically massive and purpose-built facilities designed to support the tremendous computing and storage demands of cloud computing, big data and other data-intensive applications. Major investors in hyperscale DCs are usually large technology players such as Apple, Google, Microsoft, Amazon Web Services, Facebook, Alibaba, Tencent and ByteDance.

Debate over benefits of DC investments

However, beneath the fanfare of major investments made by global companies, there are questions about the real economic benefits of the DC boom to Malaysia. Will it translate into the economic multipliers promised?

Industry observers and experts say the DC boom in the country is a positive development as it supports the digital economy and will create new jobs, among other benefits.

But a big drawback of DCs is their voracious appetite for land, electricity and water. They also require a consistent and steady supply of electricity at all hours of the day for data processing and cooling systems.

Malaysia currently has a peak electricity demand of close to 20gw. Putrajaya’s recent approval of a total DC capacity of 4gw makes the country Asean’s top DC hub. But will this put a tremendous strain on its resources?

Can the increase in electricity usage lead to higher GDP growth?

Sunway University Business School professor of economics Yeah Kim Leng says Malaysia is benefiting from the initial stage of DC development, which is attracting FDI and construction projects. The multiplier effect that comes from being a DC hub will come after the completion, he tells The Edge.

“Malaysia can specialise in data services, particularly those related to generative AI, which have applications across various sectors like healthcare and services, leading to improved service quality and innovative solutions. This will enable Malaysia to progress beyond semiconductors and acquire the technology transfer from having big tech companies in the country,” he adds.

According to Knight Frank’s SEA-5 Data Centre Opportunity Index report, Malaysia attracted RM141.72 billion in digital investments in the first 10 months of 2024 — three times the approved digital investments for the whole of 2023 (RM46.2 billion). These investments are expected to create 41,078 job opportunities.

The report also highlights that DCs are a critical component in powering the growing digital economy and that their operations demand substantial energy and water to ensure uninterrupted functionality of servers, cooling systems and other IT equipment.

“The sudden surge in data centre investments in Malaysia, especially in Johor over the past two years, has raised concerns about the nation’s and the state’s ability to handle the increased demand for electricity and water resources. Stakeholders are questioning whether the existing infrastructure can sustainably support this rapid growth without compromising environmental commitments and local communities,” Knight Frank says in a December 2024 report.

In this regard, it was reported that the Johor government has taken a strategic and decisive stance to reject nearly 30% of DC applications.

At the federal level, Prime Minister Datuk Seri Anwar Ibrahim cautioned against rushing to build DCs, especially if they do not add value to Malaysians in terms of high-income jobs and knowledge-sharing. “The traditional approach of providing support and incentives to investors without taking into account the economic spillover achieved is no longer sustainable,” he said in his Budget 2025 speech, noting high quality investments were preferred.

Following the announcement, Treasury secretary-general Datuk Johan Mahmood Merican said Putrajaya was working on restructuring its incentive packages for DC investments to ensure broader economic benefits, and that it would be announced in mid-2025.

“We are rethinking this enthusiasm with data centres. They are large in terms of capex, but sometimes they don’t necessarily create many high-skilled jobs. And sometimes, they consume a lot of electricity and water,” he added. 

Source: The Edge Malaysia

Can Malaysia capitalise on its data centre ambitions?


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Sarawak will potentially supply power to Sabah and Brunei once a 500MW combined cycle gas turbine (CCGT) facility is completed in Miri by 2027, says Tan Sri Abang Johari Openg.

The Premier said Sarawak already had an agreement with Sabah to supply 50MW of power, but the neighbouring state had requested an increase to 100MW.

“We are looking at our capacity in terms of energy production.

“By 2027, the CCGT facility in Miri will be ready with 500MW capacity, so we will be able to supply to our neighbours,” he told reporters after giving a special address in conjunction with his eighth anniversary of taking office as Premier here on Monday (Jan 13).

Abang Johari said Sarawak was also planning three more combined cycle plants in Bintulu with 500MW capacity each by 2027.

With this additional capacity, he said Sarawak would be able to meet Sabah’s request for 100MW.

He also said the state was in discussions with Brunei on power supply.

In his special address, Abang Johari said the RM2bil CCGT facility in Miri would enhance the power supply in northern Sarawak besides potentially serving Sabah and Brunei.

He also said the plant would use a mixture of methane and hydrogen to reduce emissions and boost energy efficiency.

“During my visit to Mitsubishi Heavy Industries’ Takasago Hydrogen Park (in Japan), I witnessed the world’s first large-frame hydrogen-powered gas turbine.

“This breakthrough technology will be integrated into Sarawak’s CCGT facility, reinforcing our leadership in low-carbon energy transition,” he said.

Source: The Star

Miri gas turbine plant can power Sabah, Brunei once ready, says Abang Johari


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Prime Minister Datuk Seri Anwar Ibrahim said that his meetings with major companies from the United Arab Emirates (UAE) during his three-day working visit to the country will strengthen bilateral relations and boost the trade and investment cooperation that has been established.

Anwar began his second day of the visit by meeting with senior management from the country’s sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA), Mubadala, and Masdar.

“We discussed strengthening bilateral relations and exploring collaborations in renewable energy, food and energy security, artificial intelligence (AI), as well as addressing mutual regional and global issues,” he said in a social media post today.

Anwar stated that during his meeting with ADIA, led by managing director Sheikh Hamed Zayed Al Nahyan, both sides were in agreement to continue enhancing investment cooperation and the achievements made during his previous visit.

“During the meeting with Mubadala managing director and chief executive officer (CEO) Khaldoon Khalifa Al Mubarak, new and existing investment matters were also discussed,” he said.

Anwar added that issues related to investments in renewable energy projects were discussed during the meeting with Masdar’s CEO Mohamed Jameel Al Ramahi.

“We hope the positive investment momentum from these meetings will continue to grow, supported by the confidence and commitment of the industry players and major UAE companies,” he said.

Anwar arrived here on Sunday.

Source: Bernama

Meetings with UAE companies to strengthen bilateral ties, boost trade and investment – Anwar


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Sarawak is exploring partnerships with international aerospace firms and research institutions to facilitate knowledge and technology exchange while driving innovation to diversity the state’s economy, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier believes that these collaborations will create high-value jobs in design, engineering and production, helping to attract and retain top talent.

“While oil and gas remain significant, we will focus on high-value industries such as biotechnology, aerospace and advanced manufacturing, which align with global trends, leveraging cutting-edge technology to enhance our competitiveness.

“The aerospace industry, in particular, holds immense growth potential. With increasing demand for satellites, drones and aerospace components, Sarawak can capitalise on its strategic location and growing infrastructure to establish itself as a hub for advanced manufacturing and innovation,” he said at the Majlis Amanat Perdana Premier Sarawak 2025 held at the Borneo Convention Centre Kuching today.

Abang Johari said he had launched the Aerospace Academy at the Centre for Technology Excellence Sarawak (Centexs) in Lundu, which is designed to equip the state’s workforce with specialised skills in areas such as aerospace engineering, drone technology, satellite manufacturing and maintenance, repair and overhaul (MRO) services.

He said such bold step signifies the state’s commitment to excel in the aerospace sector.

“Collaboration is key. We are working with universities, industry leaders and experts to create tailored training programmes for high-value sectors like advanced manufacturing, digital technology and renewable energy.

“These partnerships will ensure that our workforce remains agile and well-prepared for the emerging demands of these critical industries,” he added.

Complementing these efforts is the development of a comprehensive Industry 4.0 ecosystem that integrates advanced technology across industries and establishing new industrial zones for high-tech projects such as semiconductors, lithium batteries, data centers and green energy under the 13th Malaysia Plan (13MP), he pointed out.

He said financing and incentives for research and development will be enhanced, with collaborations involving global research institutions to foster innovation and technological advancement.

“At the core of this transformation is the commitment to building an integrated supply chain ecosystem and promoting digitalisation to enhance competitiveness. Regulatory frameworks are being streamlined to improve the ease of doing business, and significant investments are being made in workforce training and upskilling.

“Plans are also underway to establish Free Industrial Zones integrated with port development and establishing hubs for aerospace and space industries,” he added.

Abang Johari said Sarawak also recognises that the mineral mining sector remains a cornerstone to its economic strategy, and his administration aspires to unlock the full potential of this sector by advancing both upstream and downstream industries to generate greater value.

“We stay committed to sustainable mining. In June 2024, Sarawak undertook a technical study trip to Canada for better understanding of the mining ecosystem and adopting best practices in legal frameworks, new technologies and community engagement.

“Additionally, a key focus was on the rehabilitation and conservation of former mining sites to integrate sustainable practices into the sector. These efforts highlight our determination to balancing economic growth with environmental stewardship and inclusivity,” he added.

Source: The Borneo Post

Premier: Sarawak explores aerospace partnerships for economic diversification


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Sarawak’s advancements in hydrogen research have attracted investment interest from countries such as Japan and South Korea, positioning the state as a potential primary hub for the hydrogen economy in Asia, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

According to Fadillah, Japan has expressed interest and committed to investing in Sarawak, particularly in the hydrogen energy sector, following Sarawak Premier Tan Sri Abang Johari Openg’s meeting alongside Prime Minister Datuk Seri Anwar Ibrahim during the recent visit by the Japanese Prime Minister Shigeru Ishiba to Malaysia.

“In that meeting, they discussed and jointly committed that Sarawak will become a centre for the development of hydrogen energy, which will be exported not only to Japan but to other regions as well. Japan has shown interest and pledged to invest in Sarawak, particularly in the hydrogen energy sector.

“Sarawak’s research in hydrogen is already quite advanced. The interest isn’t only from Japan and (South) Korea. Their technology is undoubtedly more advanced, which is why they want to invest here, making Sarawak the preferred destination for such investments,” he told reporters when met during the inaugural Inns of Court Malaysia (ICM) East Malaysia Grand Night 2025, held at Borneo Cultures Museum here last night.

The event was graced by the Yang di-Pertua Negeri Tun Pehin Sri Dr Wan Junaidi Tuanku Jaafar and his wife, Toh Puan Datuk Patinggi Fauziah Mohd Sanusi.

Fadillah, who is Energy Transition and Water Transformation Minister, said the development of hydrogen energy is expected to have a transformative impact on the economy of both Sarawak and Malaysia, with hydrogen, as a clean energy source, holding the potential to replace even nuclear energy in the future.

“Insya-Allah, our hope is to become the leading hub for the hydrogen economy in Asia,” he added.

Meanwhile, during his speech at a dinner themed ‘Diversity and Inclusivity in Nation Building,’ Fadillah encouraged the attendees, who included legal practitioners and judges from Peninsular Malaysia, Sabah, and Sarawak, as well as statesmen, corporate counsel, academicians, and law students, to join the Inns of Court Malaysia (ICM).

“Tonight, organising committee chairman, Tan Kee Heng, has requested me to remind everyone of the importance of ICM membership. If you are not yet a member, I encourage you to join. Membership fosters fellowship, goodwill, and collaboration within our profession.

“I have been convinced to become a member of ICM, so I encourage all members from Sarawak and Sabah, especially, to join. Let us come together to make legal practice a better place for all of us, where practitioners and the entire legal fraternity can unite under one roof,” he said.

Among those present at the event were ICM president Tun Arifin Zakaria and Tan, who is also ICM Sarawak executive committee member.

Source: The Borneo Post

DPM Fadillah: Sarawak’s hydrogen research draws interest, investments from Japan, South Korea


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Malaysia is exploring how financial technology (FinTech) can serve as a key instrument in all the agreements signed between the country and Asean, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Currently, there are 16 multilateral and bilateral agreements between Malaysia and Asean, with the 17th to be inked next week.

While he did not elaborate further on these agreements, he emphasised that FinTech was a foundational tool for operationalising them.

“We are looking at how FinTech can be a major instrument, enabler, or foundation in all the trade agreements we have signed, such as the Asean Single Window (ASW) agreement and the Regional Comprehensive Economic Partnership (RCEP),” he said.

Tengku Zafrul was speaking at the Forum Ilmuwan Malaysia Madani Series Four: Using Technology in Financial Services to Drive Prosperity and Inclusivity on Friday evening.

The event, moderated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, was streamed live on Communications Minister Fahmi Fadzil’s Facebook.

Tengku Zafrul spoke alongside Malayan Banking Bhd president and group chief executive officer Datuk Khairussaleh Ramli, and Funding Societies Malaysia Group chief operating officer and CEO Wong Kah Meng.

Meanwhile, Tengku Zafrul highlighted the crucial role of FinTech in integrating Asean trade and expressed hope that it would bring greater inclusivity.

“Currently, intra-Asean trade accounts for only 22 to 23 per cent of total Asean trade, largely dominated by large companies.

“But as you know, Asean is driven by small and medium-sized enterprises. Hopefully, FinTech will bring more inclusivity to the game,” he said.

While FinTech holds immense potential, Tengku Zafrul acknowledged challenges, including technological accessibility gaps.

“When we talk about FinTech in Asean, or even in Malaysia, not everyone has access to the technology, which is another issue we need to address,” he said.

He also expressed hope that technology and its inclusivity could benefit as many Malaysians as possible, especially as many have questioned whether they have felt the impact of GDP growth.

Tengku Zafrul urged a whole-of-government and whole-of-nation approach, calling for collaboration among stakeholders, including investors, academia, and policymakers, to build an inclusive and sustainable future.

Source: Bernama

Tengku Zafrul: Malaysia to leverage FinTech in Asean trade agreements


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Prime Minister Datuk Seri Anwar Ibrahim has expressed hope that the clean hydrogen energy and decarbonisation collaboration project between Sarawak Economic Development Corporation Energy (SEDCE), Petroleum Sarawak Bhd (Petros) and a Japanese consortium could be facilitated by May this year.

Petros, Petronas subsidiary CCS Ventures Sdn Bhd and Japanese consortium parties, comprising Japan Petroleum Exploration Co Ltd, JGC Holdings Corporation and Kawasaki Kisen Kaisha Ltd, signed a storage site agreement (SSA) for the M3 depleted field offshore Sarawak, Malaysia, on Feb 26, 2024.

The SSA not only enables the feasibility studies of the CO2 storage sites starting with the M3 depleted field (M3 CCS Project), but also the planning of the CO2 storage site development, including onshore terminals and transportation pipelines, as well as assessment of its techno-commercial feasibility.

Anwar, who is also the finance minister, said the collaboration is expected to succeed, particularly as Sarawak Premier Tan Sri Abang Johari Tun Openg has given his assurances regarding the project’s development, along with the support of Japan’s Prime Minister Shigeru Ishiba.

“We will hope to facilitate this as soon as possible, to be able to meet some deadlines, let’s say by May when we meet either in Tokyo or in Kuala Lumpur,” he said after the joint press remarks with Ishiba in conjunction with the Japanese premier’s two-day official visit to Malaysia which started yesterday.

Anwar also thanked Japan for its long-standing relations with Petronas in the area of liquefied natural gas, with Japanese companies now involved in the country’s carbon capture utilisation storage via Petronas’ clean energy policy and through the delivery of carbon-neutral LNG cargo to Shikoku Electric Power and Hiroshima Gas.

Commenting briefly on the rare earth elements (REE) sector, Anwar said he hopes to get Japan’s involvement in the development of an REE processing plant.

During the joint-press remarks, Anwar said he had mentioned the formation of the ASEAN Energy Grid linking Laos, Thailand, Malaysia, and Singapore, and the initiative by Sarawak for an undersea energy cable from Sarawak to Peninsular Malaya and Singapore. “This requires participation from Japan, other than the countries involved,” he added.

Anwar earlier emphasised that trade and investment issues have been a top priority during the visit by Japan’s Prime Minister and his delegation, alongside matters pertaining to higher education.

Ishiba said Japan has agreed that it would strengthen collaboration with ASEAN in the area of supply chain resilience.

“We also agreed to deepen cooperation on the Asia Zero Emissions Community (AZEC) and to advance collaboration in the area of green transformation between the two nations. To ensure energy security and achieve decarbonisation, we will enhance cooperation in areas such as ammonia-fuelled gas turbines, CCS (carbon capture and storage), hydrogen, and LNG. This will include cooperation in Sarawak,” he said.

Ishiba, currently on a two-day official visit to Malaysia, was accorded a formal welcoming ceremony at the Perdana Putra Complex today.

Malaysia’s ties with Japan have grown from strength to strength with the elevation of bilateral relations to a Comprehensive Strategic Partnership in December 2023.

Japan is a key economic partner for Malaysia, with a total of 2,821 manufacturing projects involving Japanese participation implemented in Malaysia as of June 2024. These projects represented investments worth RM105.2 billion (US$30.4 billion) and have generated employment for almost 345,000 people.

Source: Bernama

PM Anwar hopes Malaysia-Japan hydrogen energy project could be facilitated by May 2025


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Nvidia’s significant investments in Malaysia are relevant for the country, as the company focuses on specialised chip architectures, strengthening Malaysia’s position in the global chip supply chain, said an expert.

Nvidia’s collaboration with YTL brings a total investment of RM20 billion to Malaysia.

Professor of International History, Prof Dr Chris Miller, at The Fletcher School, Tufts University, noted that while Nvidia is the world’s largest chip company, it primarily designs chips and does not engage in manufacturing, packaging, or assembly. Despite this, he noted that Nvidia remains the largest chip company by market value.

“I think this trend and growing focus on chip design is highly relevant for Malaysia as it seeks to diversify its position in the chip supply chain and take on an even bigger role in the future,” he said at the Malaysia Economic Forum 2025 held here yesterday.

He said major tech firms like Nvidia, which specialise in special-purpose chips solely for artificial intelligence (AI), are where the advancements are occurring most rapidly.

“This is why the world’s biggest technology companies are becoming chip designers. Microsoft, Alibaba, Baidu, and Facebook are all designing their own chips, realising that having chips tailored to their exact needs makes them more capable of running the AI workloads they require,” he said.

Miller added that specialisation is a key driver of progress, but also increases the power and influence of the largest tech companies, giving them access to higher-quality, lower-cost computing than other players in the economy.

This forces companies to push the limits of physics and chemistry as they bring more computing capabilities together.

He noted that a trend called advanced packaging is reshaping the chip industry.

“All of this has significant implications for countries like Malaysia, which, of course, is far from a newcomer in the chip industry,” he said.

“Malaysia has been an integral part of the multinational semiconductor supply chain for half a century. This means Malaysia has both real opportunities and I think, extraordinary challenges arising from this shift in the supply chain.”

Regarding Malaysia’s semiconductor strategy, Miller opined that the geopolitical landscape presents both opportunities and risks, making neutrality difficult in such a strategic industry.

“The geopolitical landscape, the fracturing of supply chains, and the politicisation of every segment of chip design and manufacturing will force Malaysian companies to consider not only the economics of supply chains but also the politics, even in segments that might not have seemed sensitive in the past are increasingly politicised today,” he said.

Miller also pointed out that Malaysia’s strength in packaging and assembly will see increased research and development, and value-added services (though with more competition from advanced economies).

“The packaging and assembling capabilities where Malaysia excels today are undergoing dramatic change, driven by trends in advanced packaging. Every AI processor today depends on new packaging capabilities, which are set to reshape the packaging landscape,” he said.

Source: Bernama

Nvidia’s investment with YTL strengthens Malaysia’s position in global chip supply chain


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Malaysia’s investment landscape in 2024 has once again showcased its resilience and adaptability, with the Malaysian Investment Development Authority (Mida) at the forefront of driving economic growth through strategic investments, human capital development, digital and green economy initiatives.

Mida’s role in catalysing Malaysia’s economic development is underscored by its success in attracting investments worth RM254.7 billion in the first nine months of 2024, a 10.7% year-on-year (y-o-y) increase. These investments span the services, manufacturing, and primary sectors, resulting in 4,753 new projects and generating 159,347 jobs, reflecting y-o-y growth of 75.9% in job creation.

Domestic investments contributed RM148 billion (58.1%), reflecting strong confidence in the government’s clear policies and the resilience of local businesses. Meanwhile, foreign investments accounted for RM106.7 billion (41.9%), with key contributors including Germany, China and the United States.

Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said: “These investment figures reflect Malaysia’s strengthening position as a premier investment destination. Our success in attracting both domestic and foreign investments underscores the effectiveness of our strategic initiatives in fostering an innovation-driven economy,” he told Bernama.

In alignment with Malaysia’s National Investment Aspirations, Mida has been at the forefront of driving the growth of the digital economy.

From January to September 2024, the Digital Investment Office, a strategic collaborative platform between Mida and Malaysia Digital Economy Corporation (MDEC), approved RM64.8 billion worth of digital investments, focusing on advancing technology adoption such as artificial intelligence (AI), data analytics, and automation to propel Malaysia’s digital transformation.

“Malaysia is well-positioned to leverage 5G Advanced, AI, and cloud computing to accelerate economic growth.

These advancements, underpinned by the MyDIGITAL Blueprint and National 4IR Policy, are fostering a vibrant digital ecosystem and establishing Malaysia as a regional innovation hub,” noted Sikh Shamsul.

One of the standout sectors in 2024 has been the rapid growth of data centres, which attracted US$10.7 billion (RM46.9 billion) in investment commitments from the major data centre and cloud players.

These facilities are indispensable pillars of modern infrastructure, enabling seamless interconnectivity across industries and regions.

Malaysia’s robust infrastructure, competitive energy costs, sustainability initiatives, rapid digitalisation adoption and strategic location have cemented its position as a regional hub for global technology giants and cloud service providers.

The growth of data centres and cloud activities not only drives a more digitally inclusive society, ensuring every user can benefit from the digital economy, but also develops the local supply chains, increased demand for renewable energy and technology solutions as well as upskilling of talent to meet industry needs.

Key projects include investments by Google, Oracle and Microsoft creating thousands of high-value direct and indirect jobs, fostering knowledge transfer and promoting technological innovation.

“Malaysia Digital Economy Corporation is committed to streamlining the development process for data centres and proactively addressing challenges to ensure Malaysia remains attractive to investors. A key initiative in this effort is the Data Centre Investment Coordination Task Force, which assumes a pivotal role in facilitating and expediting data centre-related matters,” the Mida CEO said

Sikh Shamsul also stated that the Malaysian government’s guidelines for the sustainable development of data centres provide a comprehensive framework to ensure these facilities operate efficiently, sustainably, and in an environmentally friendly manner.

“This initiative aligns Malaysia’s ambitions with its long-term goal of achieving net-zero emissions by 2050,” he added.

“To drive progress across all sectors, we are focused on developing a highly skilled and adaptable workforce. Our partnerships with the Ministry of Higher Education and the Malaysian Technical Universities Network are essential to equipping Malaysians with the skills needed for the jobs of the future,” said Sikh Shamsul.

Mida is actively working to diversify Malaysia’s economic base by focusing on new growth areas such as renewable energy, e-mobility, biofuels, and rare-earth elements. These efforts align with Malaysia’s strategic plans to achieve net-zero greenhouse gas emissions by 2050 and foster a green economy.

Malaysia has set ambitious targets to increase the share of renewable energy in its power mix, aiming for 70% by 2050 as part of its commitment to achieving net-zero emissions.

Mida’s initiatives are integral to this transition, positioning Malaysia as a prime green investment hub by 2030, aligned with the Green Investment Strategy target.

Additionally, the government’s National Energy Transition Roadmap outlines key projects and initiatives to support this energy transition.

“We are not just building a resilient economy for today, but a thriving and inclusive one for generations to come. Our commitment to attracting investments in the new growth areas, coupled with our unwavering focus on human capital development, will ensure Malaysia remains a competitive force in the global landscape,” Sikh Shamsul said.

Source: The Sun

MIDA catalyses Malaysia’s economic resilience, future growth in dynamic global landscape


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The US-China tech war continues to have a significant impact on the global semiconductor market, resulting in semiconductor chip companies rethinking their global supply chain strategies amid trade restrictions and sanctions on China.

As companies look to diversify their production away from China, Malaysia stands to benefit from increased investment and business opportunities.

US-based Micron Technology Inc. is among chipmakers betting on Southeast Asia, aiming to tap into new markets and reduce their reliance on China and Taiwan in response to US-China tensions.

It recently announced a US$7 billion (RM31.5 billion) investment over the next several years to expand its manufacturing footprint in Singapore, driven by the growing demand for advanced memory chips fuelled by AI.

Micron Technology also has a significant presence in Malaysia, having started in Muar in 2010 before expanding with two facilities in Penang.

Meanwhile, global GPU design tech giant Nvidia’s RM20 billion investments, in collaboration with YTL Group, is expected to strengthen Malaysia’s position in the global chip supply chain.

Prof. Dr. Chris Miller, a professor of international history at The Fletcher School, Tufts University, said that the trend and growing focus on chip design is highly relevant for Malaysia as it seeks to diversify its position in the chip supply chain and take on an even bigger role in the future.

He said major tech firms like Nvidia, which specialise in special-purpose chips solely for AI, are where the advancements are occurring most rapidly.

“This is why the world’s biggest technology companies are becoming chip designers. Microsoft, Alibaba, Baidu, and Facebook are all designing their own chips, realising that having chips tailored to their exact needs makes them more capable of running the AI workloads they require,” he said at the Malaysia Economic Forum 2025 here, recently.

The global semiconductor industry, a cornerstone of modern technology, has witnessed remarkable growth alongside notable challenges in recent years.

Fueled by rising demand for chips driven by advancements in artificial intelligence (AI), 5G, automotive electronics, and consumer devices, Malaysia is positioned at a critical point within the global semiconductor supply chain, according to industry experts.

Data from the US-based Semiconductor Industry Association (SIA) shows that global chip sales soared to a record US$57.8 billion in November 2024, reflecting a 21 per cent year-on-year increase.

Projections from the World Semiconductor Trade Statistics (WSTS) indicate continued robust growth, forecasting a 12.5 per cent rise in 2025, with the industry’s valuation expected to reach US$687 billion.

While potential new US restrictions on AI chip exports have raised concerns, analysts anticipate minimal impact on Malaysia’s semiconductor sector.

CHIPPING AWAY AT THE IMPACT

Malaysia has long been a key player in the global semiconductor sector, serving as a vital hub for chip assembly, testing, and packaging. 

The country’s well-established electronics industry and its advanced infrastructure make it an attractive destination for global semiconductor companies, a home to some of the world’s leading chipmakers, including Intel, Texas Instruments, and Infineon, which rely on local facilities for manufacturing and assembly.

As of November 2024, electrical and electronics (E&E) products valued at RM51.03 billion and accounted for 40.3 per cent of total exports increased by 12.2 per cent from the same month in 2023.

Despite the US plan to tighten export restrictions on AI chips, analysts believe that Malaysian technology firms will experience only a limited impact.

Bloomberg reported that the Biden administration is preparing to impose a new round of export restrictions on AI chips, specifically targeting Nvidia’s graphics processing units (GPUs), in a final effort to limit the spread of advanced technology to adversarial nations like China and Russia.

However, Kenanga Investment Bank Bhd analysts Cheow Ming Liang and Peter Kong do not foresee any obstacles to the operations of local tech businesses.

They noted that NationGate Holdings Bhd, the sole original equipment manufacturer (OEM) partner of Nvidia in Malaysia and a smaller OEM partner in the Asean region, anticipates minimal impact from the GPU export quotas. 

“A significant portion of its business stems from Singapore, with deliveries made according to client requests. Moreover, NationGate supplies AI servers to Nvidia-approved cloud partners, which are likely already cleared by US authorities,” they added.

Cheow and Kong also expect minimal impact for YTL Power International Bhd, given its priority access to Nvidia’s chips as a cloud partner. 

RHB Investment Bank Bhd analyst Lee Meng Horng said that while the indirect impact is difficult to measure, local tech supply chains are insignificant in the global AI supply chain.

He remained optimistic of a stronger 2025 on the back of a sector recovery, fuelled by firmer, broad-based demand and the replacement cycle.

He said that the new restriction could affect supply chains that are in the ecosystem of GPU and central processing unit (CPU) servers but only a few local companies are directly affected, such as NationGate and PIE Industrial Bhd, given their businesses in the AI-server/switches assembly businesses.

“The potential indirect impact on other outsourced semiconductor assembly and test (OSAT) players, such as Malaysian Pacific Industries Bhd and Unisem (M) Bhd, is expected to be minimal. 

“This impact is primarily limited to their exposure to certain power management chips used in the server and industrial segments, which could experience slower output due to reduced server production,” Lee added.

GOVERNMENT’S MISSION

Economy minister Rafizi Ramli recently said that Malaysia plans to produce its own GPU chips in 5-10 years time amid the growth of data centre investments in the country.

He stated that the country is expected to be a global powerhouse in data centres in the years to come.

“If we are able to realise the potential to downstream our semiconductors instead of doing back end, we are hoping that we can start producing ‘Made by Malaysia’ GPUs and chips in the next five to ten years.

“Then not only do we create a new high economic value sector that serves our own demand, we can also become a global player,” he said during a fireside chat at Forum Ekonomi Malaysia.

Meanwhile, Khazanah Research Institute (KRI) said the country needs more local chip manufacturers like Silterra Malaysia Sdn Bhd to address the presently high rates of skill-related underemployment.

Loss-making Silterra, which was created in 1995, was sold by Khazanah Nasional Bhd to Dagang NeXchange Bhd (DNeX) and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre (Limited Partnership) for RM273 million in 2021.

KRI research associates Azfar Hanif Azizi and Yin Shao Loong, in a report entitled “Building a Sustainable Industrial Base: Malaysia’s Green Transition,” highlighted the importance of modernising state-owned enterprises or incentivising firms to transition into tech-centric sectors to create skilled jobs.

In addressing the shortage of talent for high-value, knowledge-intensive jobs and the current underemployment of Science, Technology, Engineering, and Mathematics (STEM) graduates, KRI said Malaysia needs to create companies that can employ these graduates.

“If current prospects for employment are dim, students will avoid studying STEM in university, shrinking the talent supply. This can be addressed through state-owned firms, which have been tried before in the electrical and electronics (E&E) industry (Silterra).

“However, it failed to expand and upgrade due to a lack of capital and ambition and thus could not continuously absorb talent. Any future attempts at such a venture require a greater willingness by the state to take risks,” KRI said in the report.

Source: NST

Malaysia stands to benefit from robust chip potential amid US-China tensions


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Malaysia’s participation in multiple unilateral trade agreements could attract more investors to the country and benefit other Asean nations, an economic analyst said.

Putra Business School’s Assoc Prof Dr Ahmed Razman Abdul Latiff noted that Malaysia is the only Asean member actively participating in the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and BRICS.

He explained that involvement in various agreements allows Malaysia to diversify its trading partners and expand its markets for goods and services.

“When you start to have greater cooperation with other trading nations, you can encourage them to invest not just in Malaysia but in the Asean region.

“So, it is a win-win (situation) for all, meaning you do not need just one particular country to make an effort; instead, every Asean member can leverage their connections to bring more investment to the region,” he told Bernama.

Ahmed Razman was interviewed ahead of his appearance on Bernama TV’s ‘Ruang Bicara’ programme, discussing “Asean Chairmanship 2025: Malaysia for Asean” yesterday.

He added, “It’s crucial to emphasise that greater collaboration doesn’t mean one country loses out if another attracts more investment. The goal is for the multiplier effect to benefit the entire region.”

Highlighting the potential benefits, he stated that Malaysia could attract more foreign direct investment, provided the country maintains political stability and streamlines policies to ensure technology transfer, mobility of human capital, and ease of funding across Asean members.

“Investors are looking for factors such as ease of doing business, low corruption, and political stability.

“These objectives must be pursued by each Asean member,” he added.

Source: Bernama

Malaysia’s trade deals to boost Asean investment, says analyst


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Malaysia’s neutrality and openness to work with all parties make the nation a natural hub for investors, says Datuk Seri Anwar Ibrahim.

The Prime Minister said that these were among the factors which led to economic success for the nation last year.

“In 2024, Malaysia successfully tamed inflation, reduced unemployment and stabilised our currency.

“We have had record highs in job creation but also the best performing stock market in Asean.

“Internationally, our foreign direct investments are historic and are region-leading in the areas of semiconductors and data centres,” he said in his keynote address when launching the Malaysia Economic Forum 2025 here on Thursday (Jan 9).

This, he said, was achieved by the unity government which had sought economic legitimacy through political stability after coming into power in 2022.

On Malaysia’s roadmap for 2025, Anwar said that it will capitalise on the country’s geographical centrality as a conduit for electricity, talent and supply chain diversification.

“At the same time, we want to refine our expertise in oil and gas, semiconductor and Islamic finance so we can be global market leaders in each field.

“It’s our neutrality and openness for partnership that make us a natural hub for all,” he added.

On Malaysia’s chairmanship of Asean, Anwar said that it comes at an opportune time.

He noted that this comes in light of the changing global economic landscape due to a move by the superpowers towards economic isolationism and protectionism.

“We are seeing a divergence opening.

“And that is the rare opportunity to recalibrate policy positions

toward economic pluralism, cooperation across multilateral platforms, and decisions infused with a moral conscience,” he said.

As Asia becomes the centre of the global economy, Anwar said that Asean is projected to be the fourth largest economic bloc in the world.

“The lion’s share of global growth will stem from a combination of Asean, India and China,” he added.

He said that Malaysia must take the lead in charting a path forward.

“A shifting world economic order, an empowered Asean, and a stable Malaysia means we are no longer satisfied with playing the spectator.

“We must therefore take up the mantle to chart the path forward in three leadership domains,” he said.

Leadership is demonstrated across three areas: strategic (society), team (group), and personal (individual) leadership.

Source: The Star

Malaysia’s neutrality, openness make it a natural hub for investors, says Anwar


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