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How Malaysia is wooing overseas investors

DYNAMIC economies worldwide are capturing the attention of western financial institutions, but a new research shows that few are creating as much excitement as Malaysia.

The South-east Asian nation, which is best known as a commodity exporter and manufacturing hub, is benefiting from companies’ determination to mitigate risks generated by ongoing trade tensions.

“Supply chain diversification is a really important global theme,” says Saif Malik, CEO, UK at Standard Chartered, who has lived and worked in Malaysia.

“Geopolitical risk has prompted many companies to re-evaluate which markets they invest in, and that is playing out in places such as Malaysia. The country’s vibrant multiculturalism is a strong advantage on the world stage.”

Research conducted by Standard Chartered in the first quarter of 2024 and based on a survey of 400 banks, investment managers and asset owners headquartered in Europe and the Americas, revealed that 25% of respondents have plans to invest or grow business in Malaysia in the next 12 months.

Out of all dynamic markets worldwide, only Mainland China and India scored more highly.

Money is already pouring into Malaysia.

In 2023, foreign investment was Rm329.5bil (Us$69.5bil), which was a record for the country and a 23% increase year on year.

Gross domestic product (GDP) growth forecasts of 4.3% in 2024 are bolstered by Malaysia’s “track record of fiscal prudence and a credible monetary policy framework”, according to the International Monetary Fund.

How Malaysia benefits from supply chain migration

“Malaysia is benefiting from supply chains migrating away from Taiwan and Southern China because it invested in creating an electronic supply chain base all the way back in the 1970s,” says Chris Clube, co-portfolio manager of the Global Emerging Markets Equity Fund at asset manager Federated Hermes.

“It has a long history of producing high-tech goods, so there is an ecosystem that already exists. Malaysia also benefits from being both Englishspeaking and Chinese-speaking.”

These attractions have led a number of manufacturing companies to establish themselves in

Malaysia for the first time or to expand their existing activities, and the semiconductor sector is a particular area of focus. Examples include US chip giants Micron and Intel, and European semiconductor companies ams

nd

OSRAM and Infineon.

Malaysia’s northern region of Penang, whose free trade zone and busy shipping port attracted Intel in 1972, continues to offer attractive tax incentives to overseas investors.

But southern Malaysia is also seeing increased investment, and the Malaysian semiconductor industry as a whole has shifted its value chain towards more advanced technology.

In 2023, Malaysia accounted for more US microchip imports than any other country in the world.

Manufacturing does appear to be an ongoing priority for investors.

In the Standard Chartered research, 53% of investors who are intending to invest in Malaysia say that manufacturing is one of the most attractive opportunities.

Green policies and political support are attracting investors

Investors are also looking at other sectors.

For example, 55% see opportunities to invest in the infrastructure sector as Malaysia’s economy expands rapidly.

And 42% see potential in renewable energy.

Malaysia has one of the most ambitious decarbonisation plans in Asia, with a target of net-zero emissions by 2050.

Consultancy Mckinsey has identified the sustainability opportunity in Malaysia as one of Asia’s most attractive, saying the country has a strong position in areas such as carbon capture and storage, renewables, biofuels and hydrogen: “Malaysia has a significant opportunity to become a major player in green business growth and sustainable development in Asia.”

Policymakers are trying to exploit this potential, according to Clube.

“The state governments are very good at making overtures towards international businesses,” he says.

“They can provide very favourable terms – whether on land, on credit or on other incentives to set up in the country.”

Investors will hope that the central government also continues to offer this kind of support.

Prime Minister Datuk Seri Anwar Ibrahim has moved in that direction by launching the New Industrial Master Plan 2030, which aims to increase the manufacturing sector’s GDP by 6.5% a year through to 2030, and the National Energy Transition Roadmap, which seeks to restructure the economy along more sustainable lines.

Such initiatives can be crucial in underpinning investors’ confidence.

According to the research, 34% of investors in Malaysia say that political stability is one of the criteria they consider when they select investment and business development destinations.

Only quality of infrastructure, which was chosen by 37% of investors and where Malaysia is also investing – is a bigger concern.

By capitalising on its strategic advantages in manufacturing and green technologies, Malaysia is positioning itself as an increasingly attractive destination for western financial institutions.

Source: The Star

How Malaysia is wooing overseas investors


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Selangor’s approved investment rose to RM34.9 billion for the first half of this year, state executive councillor for investment, trade and mobility Ng Sze Han revealed.

He said this involves the manufacturing and services sectors, which have shown promising growth. 

“Up to June, approved investment value in both sectors rose to RM34.9 billion. 

“The services sector experienced a remarkable 178 per cent surge compared to last year,” he said in a Facebook post last night, after chairing a Standing Committee on Investment, Trade, and Industry meeting. 

Ng said in the meeting, he emphasised the need for all agencies to focus on facilitating investments in Selangor, especially in light of current international geopolitical uncertainties.

“This situation presents a strong opportunity for Malaysia to become a strategic destination for investors. 

“For Selangor, with advanced infrastructure such as airports, ports, a comprehensive road and rail network, the state has clear added value and advantages over other locations. 

“I hope all agencies will work together to implement policies and plans so that our investment figures and trade values continue to rise for the benefit of Selangor and its people.

Last year, Selangor recorded an overall investment of RM55.3 billion, outperforming initial forecasts and surpassing its initial target of RM45 billion, according to the Malaysian Investment Development Authority (Mida). 

Mida had said that the manufacturing sector witnessed a noteworthy year-on-year increase, with investments totalling RM19.3 billion in 2023, compared to RM12.2 billion in 2022. 

Ng had said then that Selangor has recorded a total of RM90.4 billion in domestic investment between 2021 and 2023.

During the same period, foreign investment recorded RM47.57 billion, of which RM21.53 billion was from the manufacturing sector, and the remaining RM26.04 billion was from the services sector. 

Source: Selangor Journal

Selangor approves RM34.9 bln in investments in first half of 2024


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The Johor government has held meetings with several renowned South Korean companies, which can potentially bring strategic investments valued at US$190 million (US$1=RM4.38) into the state.

Menteri Besar Datuk Onn Hafiz Ghazi, who is on a four-day working visit to Seoul starting Oct 28, said the state government delegation led by him has had the opportunity to meet companies such as Hanwha Solutions Corporation, a Fortune Global 500 multinational known for innovations in clean energy and chemicals.

The delegation also met with global food company SPC Group, which has famous franchise brands such as Paris Baguette, as well as CJ CheilJedang Group, producer of halal Korean food in Malaysia, he said in a Facebook post today.

Onn Hafiz said these potential investments would create high-income jobs as well as economic spillover and development that would enhance the prosperity of the people in Johor.

“I believe all these companies have confidence in Johor’s potential as a strategic investment destination. Johor offers not only huge business opportunities but also a conducive ecosystem for long-term growth given its (strategic) position and continued support,” he said.

In a separate post, he said the delegation also participated in a seminar to discuss potential investment opportunities in Johor, especially in view of the development of the Johor-Singapore Special Economic Zone (JS-SEZ).

The seminar titled “Unlocking regional growth: Business opportunities in JS-SEZ” saw the participation of 83 renowned Korean companies from various industries, thus becoming a strong platform to promote Johor as a top choice for investors who seek a strategic and sustainable destination.

“At this seminar, I shared various strategic initiatives that the state government is or will be implementing with the cooperation of the Federal Government in relation to the JS-SEZ development in order to attract high-quality investments.

“Various preparations are being carefully made that reflect Johor’s seriousness in ensuring the success of this important agenda, such as the setting up of the Invest Malaysia Facilitation Centre Johor (IMFC-J) as a ‘one-facilitation centre’ and the development of the Johor Talent Development Council (JTDC),” he added.

Onn Hafiz also expressed confidence that Johor is the right springboard for investors to expand their business in the ASEAN region due to its strategic position as well as the attractive incentives offered by JS-SEZ, in addition to providing broad growth opportunities and direct access to the global market, which make it an ideal choice for long-term investments.

Source: Bernama

Johor stands to gain US$190 million potential investments from South Korean firms


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Johor has engaged with 83 notable companies in South Korea in efforts to promote the upcoming Johor-Singapore Special Economic Zone (JS-SEZ).

Mentri Besar Datuk Onn Hafiz Ghazi, who led a delegation consisting of the state’s top officials and mayors, said he engaged with the businesses in a seminar titled “Unlocking Regional Growth: Business Opportunities in JS-SEZ” on Wednesday (Oct 30).

“Those in attendance came from various industries and the seminar was a strong platform to promote Johor as the strategic and sustainable choice destination for investment.

“We also discussed the opportunities that can be explored with the implementation of the JS-SEZ,” he said of the meeting, which was part of the state government’s working visit to South Korea.

Onn Hafiz said he also shared about the state and federal government’s collaboration in developing the JS-SEZ to attract more high-quality investments.

He added that various measures have been planned and executed to reflect Johor’s seriousness in making the JS-SEZ a success such as the establishment of the Invest Malaysia Facilitation Centre Johor as a one-facilitation centre, as well as the setting up of the Johor Talent Development Council.

“With our strategic location and attractive incentives set to be offered under the JS-SEZ, I am confident in Johor as the right location for investors to expand their business in the Asean region.

“The state is also expected to open up growth opportunities and direct access to the global market, which is ideal for long-term investments,” Onn Hafiz added.

He also hoped the visit would bear positive fruits and bring more benefits to Johoreans.

Source: The Star

Johor engages with 83 companies in South Korea to promote Johor-Singapore Special Economic Zone


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Prime Minister Datuk Seri Anwar Ibrahim says Malaysia now has reached a stage at which it may be selective in terms of the type of investment coming into the country.

“Previously, we welcomed all data centres (to invest in Malaysia); now, we don’t.

“We will accept data centre investments only if they include a centre of excellence, artificial intelligence, and training exposure. Otherwise, we will not accept them.

“We have an advantage here because we have reached a point where we can be more selective about the type of investments we receive,” Anwar said at the Malaysian Madani Scholars Forum: The Energy Sector as a Catalyst for Sustainable and Inclusive Socioeconomic Growth.

He said the achievement was attributed to good relationships between Malaysia and many countries in the world.

Despite the good relations with various countries, Anwar reminded the importance for Malaysia to balance the factor with its support towards Palestine amid the conflict between the country and Israel currently.

“I know that sometimes when it comes to our stance on Gaza, we must also consider the country’s interests but to me, when young children and women are killed daily, there are limits.

“That is why I mentioned in the Cabinet meeting that on the issue of Gaza, we will still express our position strongly—whether in front of (Joe) Biden (U.S President) or (Antony) Blinken (U.S Secretary of State) —because I believe they have disregarded all humanitarian considerations.

“At the same time, we must balance this to ensure that investments can grow so that our country remains strong.

“So, we must also build internal strength.

“But building internal strength does not mean to oppose others, but rather to protect our nation’s interests, security, and future,” he said.

Source: NST

Now we can be more selective in accepting investments, says PM


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The government, through the East Coast Economic Region (ECER) Development Council (ECERDC), will continue to focus on attracting private investments and realising high-value investment projects in the region, especially the Pahang Technology Park (PTP) and Gambang Halal Park (GHP).

Deputy Economy Minister Datuk Hanifah Hajar Taib said Synapse Network Sdn Bhd, a Malaysian registered entity of a Toronto, Canada-based company, has inked a 10-year lease agreement with ECERDC to transfer its existing operation from Hong Kong to PTP.

“The company plans to begin construction on 1.21 hectares (three acres) at PTP in the fourth quarter of 2024 and has submitted an application for incentives to ECERDC, which is under consideration by the Finance Ministry,” she said during a Special Chamber session in Parliament today.

Hanifah Hajar said ECERDC is in discussions with two other potential investors, including a Singapore-based company that operates six data centres in three Asian countries including Malaysia.

“This company is studying a business plan at PTP to construct and operate a 250-megawatt (MW) data centre and is expected to finalise its investment decision in the third quarter of 2025,” she said.

The other potential investor, she said, is a joint venture between a local private company and the Pahang State Development Corporation that plans to build a 3MW data centre and is conducting a feasibility study which is expected to be completed in the first quarter of 2025.

Meanwhile, Perodua plans to develop a logistics and vehicle assembly hub on 8.9 hectares (22 acres) in ECER and use the East Coast Rail Link (ECRL) Paya Besar Station as the mode of transport for distributing its vehicles in ECER, she said.

The car manufacturer also intends to use the Kuantan Port for shipping its vehicles to Sabah and Sarawak.

“The discussion between ECERDC and Perodua is ongoing, and Perodua is studying its business and development plans, which are expected to be finalised in 2025,” she explained.

On the investment status of PTP’s Cybercentre, she said ECERDC’s subsidiary Asia Centre of Excellence for Smart Technologies (ACES) is working together with charge point operator Gentari for the operation of four electric vehicle (EV) charging locations, hence supporting the national agenda to increase EV usage.

Hanifah Hajar said ACES has also collaborated with CS Medtec, a local technology company involved in the medical field through innovative 3D printing, to move from Singapore and Thailand to Malaysia, specifically Cybercentre, to meet the increasing local market demand in the medical industry.

As for GHP, she said ECERDC is holding discussions with three potential investors to develop a recreational vehicle assembly hub for the Asian market, conduct food trading and public service
activities, and develop a tropical seeds research park.

Hanifah Hajar said ECERDC also works closely with agencies such as Halal Development Corporation Bhd and the Pahang state government to bring in halal investments to GHP, especially in the food, pharmaceutical and cosmetics industries.

Source: Bernama

ECERDC To Continue Efforts To Attract High-value Investments To PTP, GHP


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The Sabah government’s investor-friendly policy has shown promising results, with the state now attracting a growing number of local and foreign investors across various sectors.

Sabah Chief Minister Datuk Seri Hajiji Noor said that this response indicates the state is on the right path for growth through strategic initiatives under the ‘Sabah Maju Jaya’ roadmap.

“For example, today, we see the well-known company McDonald’s Malaysia returning to Sabah to inaugurate its latest restaurant while also announcing future business plans in the state.

“This development not only stimulates local economic activity but also creates more job opportunities for Sabah residents,” he said in his opening remarks at the inauguration of McDonald’s drive-thru Tuaran Town restaurant today.

His speech was delivered by Pantai Dalit State Assembly Member Datuk Jasnih Daya, also executive chairman of Innoprise Corporation Sdn Bhd, representing the Chief Minister at the restaurant opening.

Also attending was McDonald’s Malaysia managing director and local operating partner, Datuk Azmir Jaafar.

Sabah recorded RM11.34 billion in investments last year, making it the seventh-ranked state for investment nationwide.

Hajiji added that the Sabah government encourages joint ventures between franchise businesses and state-affiliated companies to explore mutually beneficial opportunities.

With the opening of Tuaran’s new drive-thru outlet, there are now 22 McDonald’s Malaysia restaurants operating in Sabah, employing approximately 800 people.

This aligns with the company’s commitment to expanding to 36 restaurants across the Land Below the Wind by 2030.

Source: Bernama

Sabah’s investor-friendly policy attracting more investors


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The 2025 Budget will encourage further investments and demonstrates the government’s continued efforts to strengthen the country’s economic foundations, said Alliance Bank Malaysia Bhd.

Alliance Bank group chief executive officer Kellee Kam Chee Khiong said it is a progressive budget that has a prudent balance between the economy, sustainability, the adoption of digital investments and wellbeing of the people.  

“The budget is a testament to the government’s commitment to responsible fiscal management and continued priority for effective governance.

“It reflects the government’s intention to drive investments with initiatives such as the New Investment Incentive Framework, which will introduce a strategic investment fund of RM1 billion to enhance local capacity and encourage high-value activities,” he said today.  

The bank said the budget includes key features aimed at prioritising the welfare of the people, accelerating economic growth, attracting greater investments, opening pathways to new markets and fostering digital adoption.

Alliance Bank expects strong economic growth in Malaysia next year.

The government has adjusted the gross domestic product (GDP) growth forecast for 2024 to between 4.8 and 5.3 per cent, with a 2025 projection of 4.5 to 5.5 per cent, indicating positive growth momentum.

“The country’s economic growth rate is driven by healthy labour market conditions.  Positively, Malaysia’s unemployment rate in August 2024 declined further to 3.2 per cent while the labour force continues to increase resulting in a high labour participation rate of 70.4 per cent in August 2024,” it said.

Source: NST

2025 Budget to spur more investments, says Alliance Bank group CEO


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Over the last decade, the economic relationship between the United States (US) and Malaysia has grown remarkably, resulting in the creation of more than 312,000 jobs, with being the leading source of foreign direct investment (FDI) in Malaysia.

According to Dave Williams, the Economic Counsellor at the US Embassy in Kuala Lumpur, American companies have announced over RM200 billion in new investments since 2021, with 72 per cent coming from Fortune 500 companies.

“Just this year, Google, Microsoft, Amazon, and Oracle have announced more than US$16 billion (US$1=RM4.34) worth of investments in Malaysia.

“These quality investments not only bolster the local economy but also create thousands of jobs for Malaysians,” he said in response to questions posed by Bernama.

He also said that the recent announcements and groundbreaking of new major investments in Malaysia underscores the strong confidence that US companies have in Malaysia as a prime investment destination.

“US companies are attracted by Malaysia’s highly skilled workforce, widespread English proficiency, strategic location, and robust network of suppliers and supply chain partners,” he said.

He added that Prime Minister Datuk Seri Anwar Ibrahim and other key Malaysian leaders’ participation in the Asia-Pacific Economic Cooperation (Apec) 2023 underscored the fact that Apec remains as important as ever.

“After his return from San Francisco, the Prime Minister announced billions in new investment commitments from US companies, highlighting the tangible benefits of Malaysia’s engagement in Apec,” he said.

On October 24, Malaysia and the US acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on trade and agriculture topics.

“The US welcomed Malaysia’s briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products.

“The countries have also pledged to explore possibilities for cooperation to improve sustainability,” the governments said in a joint statement on the sixth Malaysia-US Senior Officials’ Dialogue recently.

Both countries also highlighted their interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, agriculture, small and medium enterprise development, capacity-building, healthcare cooperation, and vaccine research cooperation.

The US is one of the largest foreign investors in Malaysia, with direct investments totalling US$21.53 billion in 2023.

Source: Bernama

US-Malaysia economic ties generate 312,000 new jobs – Economic counsellor


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Malaysia’s recognition as one of the 13 nations officially added to BRICS presents significant economic opportunities, opening doors to trade, investment, and cooperation with the world’s largest emerging markets, including Brazil, Russia, India, China, and South Africa.

Universiti Teknologi MARA’s Malaysian Academy of SME and Entrepreneurship Development (MASMED) coordinator Dr Mohamad Idham Md Razak said the move will give Malaysia access to these economies, boosting exports and attracting foreign direct investment (FDI) in sectors such as technology, infrastructure and energy.

“Opportunities for energy and infrastructure projects could arise, particularly with China and India, both of which are major players in renewable energy and technological advancements,” he said.

Apart from Malaysia, the other 12 partner countries in the bloc are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

Mohamad Idham said Malaysia could also capitalise on the growing demand within BRICS for products like palm oil, electronics and rubber, as these countries continue to expand their industrial and technological capacities.

“BRICS membership offers tremendous potential for Malaysia to expand its export markets and diversify trade, particularly within the bloc.

“It grants Malaysia access to alternative financial and investment markets, including the use of non-traditional currencies in trade, which could reduce reliance on Western financial systems and mitigate currency risks,” he said.

Additionally, Mohamad Idham said, Malaysia could leverage its diplomatic capital and neutrality as Asean chairman to encourage member states to form strategic alliances with BRICS, serving as a bridge between the two blocs.

However, BRICS integration can be a complex process that would require Malaysia to navigate geopolitical challenges and ensure its economic policies align with both regional and global interests, he said.

“Malaysia’s trade is still heavily Western-oriented, and balancing strategic alliances with BRICS alongside Western economies could pose challenges.

“Furthermore, the BRICS economies differ in terms of economic maturity, making it difficult to align trade policies, regulatory frameworks, and foreign direct investment strategies,” he said.

These challenges, he said, may prompt Malaysia to reassess its economic strategy by focusing on diversification, strengthening global supply chains, and enhancing diplomatic and economic relations with both developing and emerging markets.

“BRICS, often seen as a counterbalance to Western-dominated institutions like the International Monetary Fund and the World Bank, would give Malaysia a stronger voice in multilateral decision-making and in shaping a new global economic order.

“Ultimately, it could spur economic growth and diversification, positioning Malaysia as a key player in the Global South,” he added.

BRICS, originally comprising Brazil, Russia, India, and China, was established in 2009 as a cooperation platform for emerging economies. South Africa joined the bloc in 2010.

The bloc has since expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates.

BRICS represents about 40 per cent of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion, or 26.2 per cent of the world’s GDP, nearly matching the economic strength of the Group of Seven.

Source: Bernama

Malaysia set to unlock economic opportunities as BRICS partner country  – Academician


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The proposed extension of the West Coast Expressway (WCE) from Banting, Selangor, to Gelang Patah, Johor, is set to drive economic growth in Johor, especially in the Free Commercial Zone (FCZ).

Johor’s State Investment, Trade, Consumer Affairs, and Human Resources Committee chairman, Lee Ting Han, noted that the Johor-Singapore Special Economic Zone (JS-SEZ) and Forest City Special Financial Zone (Forest City SFZ) are among the economic initiatives that will benefit directly from the project.

“The positive impact of this project includes increased investment and trade activities in industrial and commercial areas along the WCE route.

“The WCE also improves access between the country’s two major ports, namely the Port of Tanjung Pelepas in Johor and Port Klang in Selangor,” he told Bernama today.

He added that the highway would facilitate the flow of goods and strengthen supply chains, thus attracting more domestic and foreign investors in the logistics and manufacturing sectors.

On Oct 18, Prime Minister Datuk Seri Anwar Ibrahim, while presenting Budget 2025, announced that the Banting-Gelang Patah WCE project would be prioritised next year through a Public-Private Partnership (PPP) approach.

Aside from the WCE, other projects utilising the PPP approach are the construction of Sultanah Aminah Hospital 2 in Johor and the Juru-Sungai Dua elevated highway in Penang.

Meanwhile, Johor Truck Operators Association (JTA) president Chai Pei Yoon said that the WCE would improve logistics efficiency and reduce traffic congestion between the capital and the southern region.

She said the project could strengthen the logistics sector cooperation between Malaysia and Singapore, further boosting trade activities between the neighbouring countries.

“JTA hopes that the government will consider the logistics industry’s needs in implementing this project to ensure the smooth transportation of goods.

“We believe the WCE project will bring long-term benefits to the logistics sector and the national economy,” said Chai.

Currently, the only highway linking Johor to the Klang Valley for road transport, including trucks, buses, cars, and motorcycles, is the North-South Expressway (PLUS), which has been in operation since 1994.

Source: Bernama

WCE to support Johor’s economic growth – Exco


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Prime Minister Datuk Seri Anwar Ibrahim’s visit to Russia marked a strategic effort by the Madani Government to bolster Malaysia-Russia relations, broaden Malaysia’s geo-economic influence, and elevate its global economic standing.

The Ministry of Investment, Trade and Industry (MITI) stated that Anwar’s maiden visit successfully opened a new chapter in Malaysia-Russia relations, yielding significant benefits for both nations.

“The Prime Minister’s presence in Russia for the 9th Eastern Economic Forum in Vladivostok from Sept 4 to 5, 2024, provided Malaysia the platform to present its economic development efforts to the international community, particularly to Russian investors.

“These efforts, including the incentives offered to foreign investors, position Malaysia as an attractive investment destination,“ said MITI in a written response on Parliament’s website yesterday.

The ministry noted that the visit also underscored Malaysia’s reputation as a trade-friendly nation that champions openness and business-friendliness.

MITI was responding to a question from Tan Sri Abdul Hadi Awang (PN-Marang), who inquired about the economic, trade and geopolitical outcomes of the Prime Minister’s visit to Russia.

The ministry emphasised that the working visit was crucial in reinforcing existing trade relations and enhancing market access for Malaysian goods and services in Russia.

From a geopolitical standpoint, MITI described the visit as a strategic step to ensure Malaysia maintains a favourable position amid growing global competition.

“During the bilateral meeting with President Vladimir Putin, substantial discussions were held on areas such as the economy, higher education, tourism, the halal industry, and connectivity.

“The talks also explored expanding cooperation in emerging sectors, including energy transition, aerospace, science and technology, telecommunications, and Islamic finance,“ it said.

MITI stressed the need for Malaysia, as an open trading nation, to adopt a strategic approach in navigating complex geopolitical challenges, exploring new markets while preserving and expanding existing economic ties.

“Malaysia must continue efforts to seize opportunities and foster productive, pragmatic relationships with established trading partners while exploring new markets with non-traditional trading partners,“ the ministry added.

Source: Bernama

Anwar’s Russia visit expands Malaysia’s geo-economic reach, global cooperation – MITI


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Malaysia has been recognised as one of 13 nations officially added to BRICS as a partner country, a bloc that collectively accounts for one-fifth of global trade.

According to an update from @BRICSInfo on X, the bloc officially added 13 new nations to the alliance as partner countries, though not yet as full members.

Apart from Malaysia, the other 12 nations were Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Turkey, Uganda, Uzbekistan and Vietnam.

On June 18, Prime Minister Datuk Seri Anwar Ibrahim confirmed Malaysia’s intention to join BRICS during a discussion with Brazilian President Luiz Inacio Lula da Silva.

Later on July 28, he said Malaysia had submitted an application to Russia to join the BRICS intergovernmental organisation.

Russia currently chairs the bloc, which also includes Brazil, India, China and South Africa.

BRICS, originally comprising Brazil, Russia, India, and China, was established in 2009 as a cooperation platform for emerging economies, with South Africa joining in 2010.

The bloc has since expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates.

BRICS represents about 40 per cent of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion, or 26.2 per cent of the world’s GDP, nearly matching the economic strength of the Group of Seven (G7). (US$1 = RM4.34).

The G7 is an informal grouping of seven of the world’s advanced economies, namely Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union.

Economy Minister Rafizi Ramli is scheduled to deliver the country’s national statement at the BRICS Outreach/BRICS Plus Summit in Kazan, Russia, on October 24, 2024.

Source: Bernama

Malaysia officially a BRICS partner country


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Iskandar Malaysia has recorded committed investments of RM40.3 billion from January to September 2024, with realised investments reaching RM22.5 billion, said Prime Minister Datuk Seri Anwar Ibrahim.

He announced these figures following the 33rd meeting of the Iskandar Regional Development Authority (IRDA) earlier today.

Anwar, who is also finance minister, said the meeting also discussed key issues regarding the region’s future direction and initiatives, particularly the Johor-Singapore Special Economic Zone (JS-SEZ), which is expected to significantly boost the national economy.

“Using the Invest Malaysia Facilitation Centre Johor (IMFC-J) as a model, I emphasised the importance of efficient implementation in processes and approval timelines, in line with the government’s strategy to facilitate business operations,” Anwar said in a Facebook post.

He also said that Johor should leverage its role as the Asean 2025 Chairmanship, as several meetings would take place in the state.

“The benefits can only be fully realised through integrated and effective planning and execution,” he added.

Source: NST

Iskandar Malaysia secures RM40.3bil in investments from Jan to Sept – Anwar


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The Japan Bank for International Cooperation (JBIC) is committed to supporting the Ministry of Investment, Trade and Industry in attracting high-quality investments from Japan, particularly in the sustainable energy sector and high-tech industrial development.

Minister Tengku Datuk Seri Zafrul Abdul Aziz stated that such high-quality investments will help accelerate Malaysia’s economic growth.

“Close cooperation with the JBIC will strengthen Malaysia’s position as a regional investment hub for green technology and digital infrastructure.

“This move aligns with the goals of Budget 2025 to drive innovation and sustainability, providing significant benefits to the people and the national economy,” he said on X on Thursday.

Earlier, Zafrul met with a JBIC delegation led by its chairman and special adviser to the Japanese government, Tadashi Maeda.

Among the discussions were strategic opportunities in areas such as green energy, digital technology, and semiconductors, which are key focuses under the New Industrial Master Plan (NIMP 2030), the National Semiconductor Strategy (NSS), and the Green Investment Strategy (GIS), Zafrul noted.

Source: Bernama

JBIC committed to supporting M’sia in attracting high-quality investments from Japan, says Zafrul


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A total of eleven Trade and Investment Missions (TIM), including six official visits led by Prime Minister Datuk Seri Anwar Ibrahim from January to September 2024, have resulted in potential investments totalling RM82.6 billion.

The Investment, Trade and Industry Ministry (Miti) said that of this amount, RM30.9 billion (37.41 per cent) in investment value has been approved, while RM26.8 billion (32.45 per cent) is expected to be finalised this year.

“An investment value of RM30.4 billion (36.80 per cent) is projected to be finalised between 2025 and 2027,” the ministry said in a written response on the Malaysian Parliament website today.

Miti was replying to a query from Datuk Muhammad Bakhtiar Wan Chik (PH-Balik Pulau), who sought clarification on the value and status of foreign investments realised compared with the announced figures following the Prime Minister’s foreign visits.

Countries visited during the period include Germany, France, Italy, Australia, Saudi Arabia, the United Arab Emirates, Qatar, Japan, India, Singapore and Thailand.

Miti stated that it maintains close monitoring and engages in strategic discussions with investors, as large investments require time to materialise and involve complex processes.

“This follow-up process is critical to ensuring that every investment commitment is realised within an optimal timeframe,” the ministry said.

In 2023, Miti, together with the Malaysian Investment Development Board (Mida), conducted 12 TIMs, including eight official visits led by the Prime Minister to countries such as Japan, the United States, Italy, and Singapore.

These missions resulted in potential investments totalling RM353.6 billion.

Of this amount, RM32.8 billion (9.28 per cent) in investments has been approved, expected to create over 6,400 job opportunities.

“An investment of RM29 billion (8.20 per cent) is expected to be finalised in 2024, while RM289.4 billion (81.84 per cent) is targeted for finalisation between 2025 and 2027,” the ministry added.

Source: Bernama

RM82.6 bln potential investments reported from PM’s investment promotion missions — MITI


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The Japan Bank for International Cooperation (JBIC) has expressed its commitment to enhancing existing investments by attracting more Japanese investors to Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that JBIC, a Japanese government-owned institution, is currently actively discussing investments with local companies in various industries.

Earlier, Anwar received a courtesy visit from a JBIC delegation led by its chairman cum special advisor to the Japanese government Tadashi Maeda.

“I emphasised the importance of strengthening the friendship and close cooperation between Malaysia and Japan to explore more high-quality investments.

“This is to ensure that investment cooperation, particularly in the energy sector, is realised for the benefit of the people,” he said in a Facebook post.

During the meeting, Anwar revealed that they also exchanged views on green energy development, renewable energy, and the energy market.

The discussions also included the construction of data centres and investments in the digitalisation industry.

Source: Bernama

JBIC commits to enhancing Japanese investments in Malaysia — PM


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The Ministry of Investment, Trade and Industry (Miti) will remain committed to driving international trade, investments of high quality and the development of innovative industries to spur sustainable economic growth in the country.

Minister Tengku Datuk Seri Zafrul Abdul Aziz said he welcomed Budget 2025’s goals as well as the allocated Rm2.184bil that has reflected the government’s confidence in the role that Miti has played so far.

“Miti welcomes the implementation of the New Investment Incentive Framework, which is set to be introduced in the third quarter of 2025.

“We are also appreciative of the Rm200mil for the Strategic Co-investment Fund and the NIMP Industrial Development Fund,” he said in a statement.

According to Tengku Zafrul, some of the bigger plans include the Rm1bil allocation from Khazanah Nasional Bhd that will continue strengthening Malaysia’s position in the semiconductor sector that is expected to hit RM1 trillion by 2030.

He also said the expansion of tax incentives for integrated circuit design is also likely to stimulate the electric and electrical exports.

“With the aim to continue the digitisation journey, Miti welcomes the Rm10mil for the adoption of Aartificial intelligence (AI) in academia which supports the National Artificial Intelligence Office,” he said.

In the electric vehicle (EV) space, Tengku Zafrul said the Rm10mil allocation, for the extension of completely knocked down electric motorcycle usage incentive scheme which provides a rebate of up to RM2,400, will be continued by Malaysia Automotive Robotics and IOT Institute.

“The adoption of EVS by Malaysians will also be expanded through the pricing of Malaysia’s first EV, currently being produced by Perusahaan Otomobil Kedua Sdn Bhd at less than RM100,000,” he noted.

On carbon tax to be introduced in 2026, Tengku Zafrul said it would encourage the iron and steel industry to transition to low-carbon production, including carbon capture, utilisation, and storage technology.

Source: The Star

Zafrul: Govt shows confidence in the role of Miti


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Almost all KPIs have been met but there is still much work to be done, says Zafrul

THE Investment, Trade and Industry Ministry is confident that it can achieve the primary targets set for the first year of the New Industrial Master Plan (NIMP) 2030.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said this stemmed from the fact that three key targets had shown impressive progress since last year.

“Based on the NIMP 2030 launched on Sept 1 last year, the value-added contribution of the manufacturing sector to the gross domestic product has increased by 4.7 per cent, amounting to RM4.2 billion.

“Employment has also risen by 0.9 per cent, or 200,000 workers, as of the second quarter of this year compared to the same quarter last year. Additionally, the median salary in the manufacturing sector increased by 8.2 per cent, or RM201, as of the first quarter, year-on-year.

“Almost all key performance indicators (KPIs) for 2024 have been met,” he said after presenting the ministry’s third quarter report card yesterday.

However, Tengku Zafrul said there was still much work to be done.

He said time was running short and the economic environment was becoming more challenging.

Under NIMP 2030, the ministry aims to achieve a value-added contribution of RM587.5 billion from the manufacturing sector, create 3.3 million jobs and raise the median salary to RM4,510.

According to the report card, Malaysia approved RM6.2 billion in green investments through the Malaysian Investment Development Authority in the first half, focusing on renewable energy, energy efficiency and circular economy initiatives.

The effort resulted in 436 projects that would create 3,843 jobs, with 82.1 per cent already implemented.

The ministry also said domestic investments had shown promise with significant projects like Asiabina Solar Sdn Bhd investing RM200.4 million in a solar project in Parit Buntar, Perak.

Foreign investments include a new semiconductor manufacturing facility by Silware Precision Malaysia Sdn Bhd in Penang projected to create 3,000 jobs.

The ministry also said trade performance was robust, with total trade reaching RM2.139 trillion from January to September.

This included RM1.115 trillion in exports and RM1.024 trillion in imports, resulting in a trade surplus of RM91.21 billion.

Notable trade initiatives like the Malaysia International Halal Showcase generated significant sales.

Additionally, regulatory reforms across 27 ministries led to cost savings of RM561.5 million for businesses.

Source: The Star

Ministry Confident of Hitting Main Targets


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Investment, Trade and Industry Ministry will announce details of the new Investment Incentive Framework in the first quarter of next year (1Q25).

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said work on the framework has already begun this year and will be presented at the National Investment Council in December.

He added that there are several reasons why the framework needs to be reviewed. This includes the need to update how investments are assessed.

He noted that investments entering the country must add value to the economic sector by benefiting local companies and providing quality job opportunities.

Tengku Zafrul said in terms of sustainability, investments must be in sectors that do not produce high carbon emissions.

“Furthermore, we must also be prepared as Malaysia is one of the countries that agreed to implement a global minimum tax of 15 per cent next year,” he told reporters after announcing the ministry’s report card for the third quarter of 2024 here today.

“Therefore, we can no longer attract investments by offering tax exemptions of up to zero percent, and there must be other incentives such as focusing on talent and green sectors. 

“So fundamentally, it is a new way to look at incentives. Incentives can no longer be given in bulk but must be targeted at industries that can genuinely help enhance the country’s economic value,” he added.

The government announced the framework during the presentation of the 2025 Budget last Friday.

It will focus on high-value activities instead of existing product-based incentives and is set to be implemented in 3Q25.

The framework aims to enhance diversity in the electrical and electronic sector through high-value-added activities such as integrated circuit (IC) design services and advanced materials, along with tax incentives to promote exports related to IC design activities.

Source: NST

Details on new investment incentive framework in Q1 2025: Tengku Zafrul


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Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz remains committed to increasing the productivity of his ministry to ensure that Malaysia continues to be an investor and trade-friendly country.

According to him, as a result of the Ministry of Investment, Trade and Industry’s (MITI) community, the ministry has received two certificates of appreciation from the Chief Secretary to the Government for completing the Guidelines for Self-Regulation of the Electric Vehicle and Battery Management Industry and reducing the approval period for the Regulatory Impact Statement (RIS) Process.

The approval period for RIS has been reduced from two months to 10 days, he said in a press conference to present the MITI report card for the third quarter of 2024 here on Monday.

Tengku Zafrul added that the improvement of rules and processes also saw 166 projects registered under the Bureaucracy Red Tape Reformation effort, with estimated cost savings on regulatory compliance for the citizens and businesses amounting to RM561.5 million.

“In terms of improving business regulations, as of September 2024, the Malaysia Productivity Corporation (MPC) has achieved savings of RM922 million under the Good Regulatory Practices (GRP). ”This effort will continue to increase the productivity of the agencies under the supervision of MITI,” he said.

Among the key performance indicators (KPIs) under the GRP are potential cost savings for registered projects, number of regulatory reform projects registered, number of regulatory reform projects completed and cost savings for completed projects.

Source: Bernama

Tengku Zafrul Committed To Increasing Productivity Of MITI, Agencies


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The allocation of RM421 billion under the MADANI Budget 2025 will set a strong foundation for revitalising the economy, driving positive change and ensuring the well-being of Malaysians, Iskandar Investment Berhad (IIB) president and chief executive officer Datuk Idzham Mohd Hashim said.

He added that the government’s approach reflected its commitment to sustainable growth while maintaining fiscal stability, which would help normalise spending and create a more predictable economic environment.

“The budget provides a clear path forward by maintaining fiscal discipline, encouraging investor confidence, and creating a conducive environment for foreign direct investment (FDI).

“By focusing on reducing the national debt and rationalising subsidies, the MADANI government is laying a stable foundation that aims to keep inflation in check while stimulating long-term growth, ” he said in a statement today.

Idzham said the RM7.5 billion allocated towards Technical and Vocational Education and Training (TVET) and the emphasis on science, technology, engineering, and mathematics (STEM) in education, reflect the Government’s strategy to future-proof the local workforce.

“We align with this vision by driving initiatives that foster high-value employment in Iskandar Puteri, collaborating closely with industry leaders, and leveraging EduCity Iskandar, our dedicated education arm.

“EduCity continues to play a crucial role in attracting top talent and solidifying Johor’s reputation as a centre of excellence in education and innovation,” he added.

Furthermore, he also commended the Budget’s focus on sustainability, such as the incentives for carbon capture, utilisation and storage (CCUS) activities, the introduction of carbon tax and the extension of the net-energy metering (NEM).

“This would allow us the opportunity to expand further and establish Medini as a Net Zero Carbon Central Business District, where digital innovation and sustainability converge to create a thriving business ecosystem.

“It will also present an opportunity for IIB to attract start-ups and foster the growth of Tech Medini as a dynamic hub for digital innovation in Iskandar Puteri, ” he said, adding that IIB remained dedicated to building a sustainable and inclusive metropolis in Iskandar Puteri.

“We believe that economic growth should go hand in hand with social inclusivity and environmental responsibility. By collaborating with industry leaders and stakeholders, we are creating an ecosystem that integrates technology, sustainability, and talent development, securing Johor’s future as a dynamic and resilient regional powerhouse, ” he said.

Source: Bernama

Budget 2025 Focused On Sustainable Development, Talent Growth, Strategic Investments


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A new Investment Incentive Framework has been introduced in Budget 2025 to focus on attracting high-value investments.

Prime Minister Datuk Seri Anwar Ibrahim said this framework is expected to be implemented in the third quarter of 2025.

Among its proposals are to provide tax incentives for the exports of integrated circuit (IC) design activities.

Anwar, who is also Finance Minister, also said the government will provide special tax deductions to private higher-education institutions providing courses in Artificial Intelligence (AI), robotics, internet of things (IoT), data science, FinTech and sustainable technology.

At the same time, to strengthen the local supply chain, Budget 2025 will introduce new tax breaks for multinational enterprises (MNE) that spend over RM2mil in manufacturing expenses.

“They will be given two tax breaks for three years consecutively,” added Anwar.

Anwar also said MNEs or suppliers that invest in local suppliers will be given tax breaks on their respective investments.

“Local suppliers involved in this scheme will also be given suitable tax incentive packages and matching investment funds of over RM100mil will be provided through the public equity fund platform to develop local suppliers in the E&E, specialty chemicals and the medical devices sector,” said Anwar

“The new Investment Incentive Framework will be supported through an inclusive investment facility to stimulate balanced economic growth across the country.

“This includes introducing strategic investment funds worth RM1bil as efforts to improve the local talent and to encourage high-value activities within the country,” added Anwar.

At the same time, Anwar also said the government is ready to implement a global minimum tax (GMT) on MNEs.

“GMT’s will give us additional revenue, but there are still negative risks in the investment climate

“To reduce the effects of GMT, the government is committed to improving existing incentives, and to create new non-tax incentives, as well as studying the feasibility of strategic investment credit taxes,” added Anwar.

Budget 2025, worth RM421bil, covers RM335bil on operational expenses, RM86bil on development expenses and RM2bil for miscellaneous spending, RM9bil for private-public joint venture projects, and direct domestic investments by GLICs worth RM25bil.

Source: The Star

Budget 2025: New tax incentives to attract foreign investment


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Malaysia’s participation in BRICS will not include any free trade agreement (FTA) between the country and members of the economic group, said Deputy Investment, Trade, and Industry Minister Liew Chin Tong.

Additionally, the existing FTAs between Malaysia and countries outside BRICS will remain unaffected, even if Malaysia is allowed to join BRICS, Liew noted.

“The application to join BRICS does not mean we are opening our market to everyone within the BRICS framework. 

“Therefore, concerns about its impact on the competitiveness of our small and medium enterprises, as well as our products, are irrelevant,” Liew said in the Dewan Rakyat on Thursday during an oral question-and-answer session.

In July, Malaysia submitted an application to join BRICS — an intergovernmental organisation currently comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates — in a bid to diversify and strengthen strategic relations with its members.

Liew said that Malaysia is actively seeking the support of BRICS members to join the economic bloc, with the foreign minister officially sending letters to counterparts in the nine BRICS countries.

He also reiterated Malaysia’s stance on its non-aligned policy, emphasising that BRICS is not an anti-Western organisation, while adding that many BRICS members maintain good relations with Western countries.

Source: The Edge Malaysia

Malaysia’s BRICS participation won’t involve free trade agreements, says Liew


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Selangor will play its role and work alongside the Federal government to provide attractive investment spaces for investors, said Menteri Besar Dato’ Seri Amirudin Shari.

He said the state is part of the industrial development cluster for Peninsular Malaysia’s central region, with one of the main projects being the Integrated Development Region in South Selangor, with a RM57.7 billion gross development value for projects in the Sepang and Kuala Langat districts.

“To boost economic investment, Selangor has established the Selangor Greater Klang Valley, which involves four major cities in the state: Petaling Jaya, Subang Jaya, Shah Alam, and Klang. These cities have the potential to offer comprehensive economic opportunities,” he said in a Facebook post today.

Earlier, Amirudin attended the 7th National Investment Council meeting for this year, chaired by Prime Minister Datuk Seri Anwar Ibrahim.

“The MPN serves as a governance body that plans the investment agenda according to national interests, particularly concerning strategic investments involving high-level commitment from the Federal government administration.

“InsyaAllah, the state government will fully cooperate with the Federal government in providing a sustainable and conducive investment space, so that Malaysia can become an economic powerhouse in the region,” he said.

In July, the Menteri Besar said Selangor remained the preferred state for investors, securing investments amounting to RM12.4 billion in the first quarter of this year, while also offering 8,377 job opportunities across 363 projects.

He cited a Malaysian Investment Development Authority report which indicated a 66.8 per cent increase compared to the first quarter of 2023, which recorded RM7.44 billion in total investments.

Source: Selangor Journal

Selangor collaborates with Fed govt to attract investors, raise Malaysia’s economy — MB


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