Malaysia will likely gain indirect benefit from China’s recent stimulus measures, which includes interest rate cuts and property market support measures, as a stronger economy spurs demand for goods and services and more disposable income for travel, said economists.

IDEAS Malaysia economist and assistant research manager Doris Liew said that the property market support measures in China, such as reduced mortgage rates and downpayment requirements, could free up funds for consumers to spend on other goods and services.

“This could potentially boost demand for Malaysian exports, including food products, and increase tourism revenue,” she told Business Times.

Tourists from China were among top five tourist arrivals for Malaysia for the January to June period, bringing in 1.44 million tourists.

“While China’s economic stimulus could have some positive implications for Malaysia, the immediate impact is likely to be muted.

“A broader and more comprehensive approach is needed in China to address both domestic and external factors affecting trade and investment,” she said.

Liew explained however that the overall weakness of the Chinese economy, coupled with high unemployment rates, particularly among young people, may limit the effectiveness of the stimulus.

She said that consumers may remain cautious about spending due to uncertainty about their future financial stability.

She added that People’s Bank of China (PBoC) efforts to inject liquidity into the stock market through refinancing and collateralisation measures are unlikely to significantly boost business and consumer sentiment in the short term.

While these actions can provide a temporary lift to stock prices, she said they do not address the underlying economic issues that are driving the slowdown.

The PBoC has trimmed the reserve requirement ratio for major banks by 50 basis points from 10 per cent to 9.5 per cent, providing about 1 trillion yuan in long-term liquidity.

Meanwhile, the one-year medium-term lending facility was cut by 30 basis points to 2.0 per cent.

For the property market, the central bank will slash the downpayments for the second home purchases from 25 per cent to 15 per cent and existing mortgage rates for around 50 basis points.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Business Times China’s demand is likely to remain instrumental in driving global growth.

“Given that China is also a major trading partner for Malaysia, the recovery in China’s economy would be positive for Malaysia. This includes sectors such as tourism, manufacturing, palm oil, oil and gas,” he said.

However, he said the impact to Malaysia will take sometime due to the weaknesses in the country’s real estate markets as bulk of China’s citizen wealth resided in the property sector.

Therefore, he said the sharp fall in house prices would have serious impact to China’s wealth, which in turn, have an adverse impact to consumption and investment.

“So what we are seeing now is the China’s authority shift in their stand to become more proactive at promoting growth whereby such act should be positive for confidence building among the businesses, investors and households. “There will be time lag for policy move to be transmitted into the economy but eventually, it should be able to turnaround the growth momentum,” he added.

Total exports value to China fell 2.2 per cent to RM120.98 billion  for the January to August period this year.

Source: NST

Malaysia set to benefit indirectly from China’s stimulus – economists 

The event aims to connect the public, businesses and SMEs with MITI’s various initiatives

THE Investment, Trade and Industry Ministry’s (MITI) annual MITI Day 2024 has brought together local businesses, international brands, and government agencies to highlight Malaysia’s commitment to fostering economic growth through trade, investment and sustainability. 

The event aimed to connect the public, businesses and small and medium enterprises (SMEs) with MITI’s various initiatives, offering them insights into how they can leverage the government’s support to expand their businesses and contribute to the nation’s economic development. 

One of the main highlights of MITI Day 2024 was the focus on electric vehicles (EVs) and green mobility, in line with Malaysia’s National Automotive Policy 2020 (NAP 2020). 

Brands such as Proton, Perodua, BMW, Volkswagen and Chery were part of the Mini Malaysia Autoshow, showcasing their latest EV models. 

At the launch, MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced road tax exemptions and rebates of up to RM2,400 for the purchase or subscription of electric motorcycles, encouraging more Malaysians to adopt eco-friendly transportation options. 

In addition to green initiatives, the event also featured a career carnival offering over 2,600 job opportunities from more than 22 companies, specifically targeting graduates. 

The emphasis on Technical and Vocational Education and Training (TVET) was evident, with key players such as the Department of Manpower, Volkswagen Group Malaysia and the German Malaysian Institute actively participating. 

This provided attendees with valuable opportunities to explore potential career paths and upskilling programmes. 

A key aspect of MITI Day was the launch of the MITI Sustainability Report 2023, the first of its kind at the ministry level in Malaysia. 

The report highlighted MITI’s efforts to integrate sustainability practices across the industrial and trade sectors, demonstrating the ministry’s commitment to environmental, social and governance (ESG) standards. 

“We expect the industry to adopt these practices, but as a ministry, we must lead by example,” said Tengku Zafrul, reflecting on the significance of sustainability in driving long-term business competitiveness. 

Among the entrepreneurs and SMEs at MITI Day is Entrusol, a local brand selling date-based oat drinks. 

The drink, which is ideal for breakfast or as a meal replacement, requires only water to prepare, making it a convenient option for busy lifestyles. 

The product comes in five unique flavours, combining dates with honey, banana, chocolate, coffee and strawberry. 

The sweetness of the drink is derived entirely from date extract, providing a natural and wholesome taste. 

Its reseller, Muhamad Shidiq said MITI Day programme has helped in terms of product exposure. 

“Previously, people might not have known about us, but now they can see that there is a date-based oat drink in the market,” he told The Malaysian Reserve (TMR). 

He said the feedback at the event has been positive, noting increased visibility and valuable customer insights. 

“We have met more people in the business and been able to observe different customer segments. We have also gathered feedback to help improve our next product,” he added. 

However, Muhamad said there have been some challenges, particularly in educating customers about the drink’s ingredients. 

“When offering samples, some people assume it contains milk, so some customers are afraid to try due to lactose intolerance, but our product is not milk-based. Explaining the content and ingredients to consumers has been a key challenge,” he explained.

With its unique blend of flavours and health benefits, he hoped the date-based oat drink would become a favourite among health-conscious consumers in Malaysia. 

On the other hand, Ulyaa Natural founder Nurul Alia Md Noor said the brand’s participation at MITI Day attracted customers’ interest in its unique prebiotics drinks and skincare products, all derived from date cider through a bio-fermentation process. 

The innovative homegrown brand, established in 2022, is quickly carving out its niche in the market. 

Nurul Alia, who previously worked as a researcher, assembled a team of experts in biotechnology, chemistry, pharmacy and health science to develop Ulyaa Natural’s in-house formulations. 

Her motivation for starting the business came from the financial pressures she faced during the Covid-19 pandemic. 

“The idea to sustain my cost of living led me to establish Ulyaa Natural in 2022. 

“Our products are relatively new, so we need to explain them to customers. Participating in MITI Day has been helpful because we can provide product knowledge directly to them,” she told TMR. 

She further highlighted that Ulyaa Natural received an invitation to join MITI Day through the State Development Corp of Selangor and the Malaysian Agricultural Research and Development Institute. 

In addition, she said government agencies have been very supportive. 

“A lot of government agencies have approached us here, and through this event, we have learned that there are many forms of government support available for SMEs,” she said. 

Nurul Alia also shared that Ulyaa Natural has attracted interest from agencies that suggested the brand participate in the World Expo in Osaka next year. 

“Several agencies are encouraging us to join under their wing for the Osaka event. So, I see the potential for our product to expand internationally,” she added. 

Nonetheless, she acknowledged the challenges of raising brand awareness, especially as a new product in the market. 

Although she sells online, Nurul Alia found that face-to-face interactions at exhibitions are far more effective in building customer trust. 

Under Ulyaa Natural, there are two main product lines: Fermented drinks, which include Dates Valley prebiotics drinks and Khall dates cider; and Orga fermented skincare, available for both adults and babies. 

The drinks are available in all Aeon outlets, while the baby skincare range is predominantly sold in pharmacies. 

On the celebrity booth side, celebrity entrepreneur Norlie Tamam Idris took the opportunity to showcase a range of Johor products, including asam pedas paste, laksa Johor and steamed fruit cake, at the event. 

All of the products featured at the event were personally prepared by her, highlighting her dedication to quality and craftsmanship. 

Norlie, who started her business in 2003, has primarily relied on online platforms to sell her products. 

However, this was her first time participating in MITI Day, and she expressed satisfaction with the experience. 

“As a first-timer here, the initiative to promote SMEs has been very successful. The response has been great and the event’s promotion was excellent. It has really helped and we can now look at expanding our business further,” she shared. 

While discussing the challenges faced by small businesses in today’s digital age, Norlie emphasised the importance of maintaining product quality. 

“Nowadays, especially with platforms like TikTok, small businesses can easily get overshadowed. That is why we must focus on maintaining the quality of our products to stay competitive,” she said. 

She noted her dedication to growing her business to a wider audience at MITI Day, further solidifying her brand’s presence in the local market. 

Overall, MITI Day 2024 served as a platform for MITI to demonstrate its continued dedication to strengthening Malaysia’s industrial and trade sectors. 

By promoting investment, fostering international trade and ensuring sustainability, MITI reaffirmed its role in advancing the country’s economic agenda while supporting SMEs and businesses in their journey to global markets.

Source: The Malaysian Reserve

MITI Day 2024 showcases investment, trade and sustainability initiatives

The Johor government is setting its sights on creating over 100,000 high-paying job opportunities under the Johor-Singapore Special Economic Zone (JS-SEZ).

The initiative aims to strengthen economic ties between Malaysia and Singapore while enhancing employment prospects for residents.

State Education and Information Committee chairman Aznan Tamin said the salaries for these positions were anticipated to range from RM3,000 to over RM15,000, depending on the job role.

He emphasised the critical role of Technical and Vocational Education and Training (TVET) in cultivating a skilled workforce capable of meeting the demands of these new positions.

Currently, there are 108 TVET institutions collaborating with the Johor Talent Development Council (JTDC), a dedicated committee designed to connect educational institutions with industry needs.

“JTDC will lead initiatives for Johor’s youth, creating a platform that aligns educational institutions with industry requirements,” said Aznan.

He said JTDC was negotiating with private companies to ensure that the salaries offered in the JS-SEZ are competitive and attractive.

He added that local talent for these high-paying job opportunities must be prioritised, to encourage youth in the state to seize the chance for a prosperous future.

Johor is poised to become a hub for economic and career opportunities stemming from Singapore, projecting rapid growth compared to other states in the coming years.

“In less than two years, Johor has attracted RM113.7 billion in investments, generating over 35,000 new jobs,” Aznan said at the Politeknik Ibrahim Sultan 29th convocation ceremony,

The JS-SEZ memorandum of understanding is set to be signed on Dec 8, with the finalisation process underway.

Source: NST

Johor aims for 100k high-income jobs in JS-SEZ Initiative

Prime Minister Datuk Seri Anwar Ibrahim has highlighted Malaysia’s strategic role as a gateway for Pakistan to access the ASEAN region’s growing economic opportunities.

In an interview with Pakistan Television (PTV) on Friday, he pointed out that ASEAN is one of the most peaceful and economically dynamic sub-regions, with its member nations experiencing rapid growth.

As a regional bloc, ASEAN remains an open trading group that maintains neutrality while actively engaging with countries across the East and West, said Anwar, who also serves as Malaysia’s finance minister.

He further emphasised Malaysia’s ongoing efforts to strengthen economic ties with various nations, including Australia, India, Bangladesh, and now Pakistan.

The Prime Minister’s remarks reflect Malaysia’s commitment to fostering stronger economic collaborations within and beyond the ASEAN region, positioning itself as a vital bridge for global trade.

“So we will open up the avenue and I have assured Prime Minister Shehbaz Shariff that (Malaysia) is open; not only that, you can use Malaysia as a (gateway) to the region,“ said Anwar, who just ended a three-day state visit to Pakistan.

He said there is huge potential for Malaysia-Pakistan bilateral trade. “There are so many areas (to explore between the two countries), (such as) energy from Pakistan and Malaysia now has become a hub for the semiconductor industry; huge investments are coming in and we can share (experiences) in these areas and propel the two economies (forward),“ he said.

Anwar also highlighted that Malaysia’s current political stability and the government’s clarity on policies are among the factors that attract foreign investments into the country.

Among South Asian countries, Pakistan is Malaysia’s third largest trading partner, top export destination and second largest import source in 2023.

From January to August 2024, total trade between Malaysia and Pakistan recorded a 54.8 per cent increase to RM5.68 billion (US$1.21 billion). In terms of investment, a total of 27 manufacturing projects with the participation of Pakistani companies, valued at RM304.14 million (US$81.89 million), were implemented to create 1,382 job opportunities in industries such as paper, printing and publishing, food processing, textile, as well as chemicals and chemical products.

Source: Bernama

PM Anwar calls on Pakistan to use Malaysia as gateway to ASEAN

The East Coast Economic Region Development Council (ECERDC) has realised investments totalling RM3.1 billion in Terengganu, 98 per cent of which is in the manufacturing sector and the balance in the tourism sector.

This sets the state on the fast track to achieving its 2024 investment target of RM4.2 billion, further boosting economic growth and development in the region.

ECERDC has also secured an additional RM1.7 billion in committed investments from the targeted RM5.8 billion, with 59 per cent of these investments coming from the oil and gas industry.

As of August 2024, ECERDC is working to realise another RM12 billion in potential investments, with RM5 billion facilitated by the Malaysian Investment Development Authority (MIDA).

The investment portfolio is diversified as follows: 77 per cent in manufacturing, 13 per cent in tourism, and 10 per cent in oil and gas, ensuring continued growth for Terengganu.

Meanwhile, Terengganu Menteri Besar Ahmad Samsuri Mokhtar said it is essential for the federal and state governments and relevant agencies to work in tandem to attract new investments.

“Initiatives like the Economic Accelerator Project (EAP) play a strategic role in connecting ministries, agencies, and the private sector, creating a strong economic ecosystem.

“With rail infrastructure as a key growth driver for the East Coast Economic Region (ECER), the EAP is set to enhance local economies by increasing passenger and freight traffic along the East Coast Rail Link (ECRL) route,” he said after chairing the Terengganu Implementation and Coordination Committee (ICC) Meeting.

During the meeting, members of ICC Terengganu were briefed on various projects, including the upgrading of the Sultan Mahmud Airport to Kuala Terengganu City Centre road, which will enhance connectivity and increase Terengganu’s attractiveness to investors.

The expansion of the Kerteh Biopolymer Park SME Complex to Phase 1B was also highlighted as a key initiative to drive the growth of small and medium enterprises and create more employment opportunities.

Source: Bernama

ECERDC secures RM3.1 bln in realised investments in Terengganu, on fast track to achievE RM4.2 bln in 2024

Investment, Trade and Industry Ministry says it has secured RM2.65 billion of potential exports and RM100 million of potential investment from meetings with Pakistani companies in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s inaugural visit there.

The potential exports and investment will be implemented within the next three years, involving sectors such as palm oil, timber, fertiliser, petrochemical oleochemical, food manufacturing and pharmaceuticals. 

Its minister Tengku Datuk Seri Zafrul Aziz was part of the Prime Minister’s delegation for the visit from Oct 2-4.

Tengku Zafrul had a bilateral meeting with his counterpart, Pakistan commerce minister Jam Kamal Khan to discuss, among others, the proposed review of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) and potential cooperation in areas such as food, agriculture, halal, IT and supply chain. 

“Malaysia is committed to foster stronger economic partnership with Pakistan in mutually beneficial areas. 

“With Malaysia’s strategic location in the heart of Southeast Asia, and various commonalities between both countries, this was our opportunity to strongly position Malaysia as Pakistan’s ideal gateway to other markets in Asean,” he said in a statement today.

Both ministers believe that the signing of the memorandum of understanding between the Malaysia External Trade Development Corporation (Matrade) and Trade Development Authority Pakistan (TDAP) as well as the opening of Matrade office in Karachi would help enhance and deepen both countries’ bilateral economic linkages.

Referencing the robust bilateral economic relations, Jam Kamal Khan proposed a Pakistani business delegation to Malaysia to forge stronger ties between the private sectors of both countries.

The ministry also hosted Malaysia-Pakistan High Level Business Dialogue that was attended by Anwar and Pakistan Prime Minister Shehbaz Shariff together with other ministers.

The business dialogue was attended by 42 prominent Pakistani companies and 24 Malaysian companies in various sectors such as pharmaceutical, food manufacturing, chemicals, automotive and textiles. 

Also present were representatives from seven business associations including the Islamabad Chamber of Commerce and Malaysia Pakistan Business Council. 

This meeting provided an opportunity for the business community in both countries to share feedback and updates on the policies and strategies in fostering a closer collaboration in new and emerging sectors.

Among South Asia countries, Pakistan was Malaysia’s third largest trading partner and export destination, and the second largest import source in 2023. 

From January to August 2024, Malaysia-Pakistan total trade registered a 54.8 per cent growth, reaching RM5.68 billion (US$1.21 billion).

On the investment front, a total of 27 manufacturing projects with Pakistani participation worth RM304.14 million (US$81.89 million) have been implemented, creating 1,382 jobs in industries ranging from paper, printing, publishing, food manufacturing, textile, chemical, chemical products.

Source: NST

Malaysia secures RM2.65bil potential exports from Pakistan

Malaysia’s political stability and the confidence-inspiring policies of the Madani government have successfully attracted major global technology companies to choose the country as their investment destination, said Digital Minister Gobind Singh Deo.

He noted that numerous discussions are underway with companies not only from within the region but also across the globe, adding that the details will be disclosed once the deals have been finalised.

“I’m confident that moving forward, we will see more investment announcements, not only in areas like data centres or cloud services but in various other sectors in Malaysia as well,” he told the media after launching the Malaysia Digital Content Festival (MYDCF) Biz Day 2024 here on Thursday.

He highlighted Oracle’s recent decision to invest over US$6.5 billion to set up its first public cloud region in Malaysia as a positive sign of foreign investors’ confidence in the country.

“I believe that this is a very positive development, and we will continue to work hard to attract more investments from around the world, positioning Malaysia as a prime destination for international industries looking to invest in the region,” he added.

Oracle’s announcement follows similar investments by other tech giants like Microsoft, Amazon Web Services and Google, reinforcing Malaysia’s position as a key investment destination.

In a post on X on Wednesday, Prime Minister Datuk Seri Anwar Ibrahim said the investments by these companies amounted to an estimated US$16.9 billion (RM70.3 billion) to date.

The Digital Ministry is confident that it will secure even more digital investments in the second half of this year (2H2024), after securing digital investments worth RM66.22 billion in 1H2024, surpassing the RM46.2 billion recorded for all of 2023.

This growth is attributed to the pro-business policies of the Madani government.

These investments created 25,498 job opportunities in 1H2024, exceeding the 22,258 jobs created in the same period in 2023.

Source: Bernama

Political stability, govt policies attracting global investors to Malaysia

Malaysia’s entry into the BRICS economic bloc will bring greater investment and trade potential to Johor through the Johor-Singapore Special Economic Zone (JS-SEZ), said Johor Menteri Besar Datuk Onn Hafiz Ghazi.

He said that participation in the inter-governmental organisation, which comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE), will also open doors to new markets and increase foreign investment in the country.

“One significant global development that will impact the implementation of the JS-SEZ is Malaysia’s intention to join the BRICS economic bloc, which represents rapidly growing economic powers globally.

“Therefore, on behalf of the state government, we warmly welcome and support the federal government’s intention to join BRICS, which will bring greater investment and trade potential to the state through the JS-SEZ,” Onn Hafiz said during the Johor State Legislative Assembly meeting here on Thursday.

The menteri besar said this in response to a written question from Nazri Abdul Rahman (PH-Simpang Jeram) regarding the preparation of the JS-SEZ in welcoming Malaysia’s interest in joining the economic bloc.

Established in 2009, BRICS initially included Brazil, Russia, India, and China, followed by South Africa’s participation in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the UAE joined as new members.

Meanwhile, Onn Hafiz, who is also Machap assemblyman, said that Prime Minister Datuk Seri Anwar Ibrahim is expected to announce an incentive package for investors in the JS-SEZ during the tabling of Budget 2025 on Oct 18.

He said that the JS-SEZ agreement document is currently being finalised among various ministries, federal and state agencies, and Singapore.

“The memorandum of understanding for the JS-SEZ is expected to be signed during the leaders’ retreat between the governments of Malaysia and Singapore, scheduled for Dec 8,” he said.

Onn Hafiz also said that they will not overlook the northern areas of Johor, while southern Johor benefits from economic and infrastructure development due to the JS-SEZ.

“The rapid growth in the JS-SEZ area will contribute to increased state tax and non-tax revenue. These can be used to improve infrastructure in areas outside of the JS-SEZ,” he said.

Source: Bernama

Malaysia’s BRICS entry will boost Johor’s investment, trade potential through JS-SEZ — Onn Hafiz

Johor recorded a total of RM12.93 billion in committed investments until the second quarter of this year (2Q 2024), said Lee Ting Han.

The state Investment, Trade, Consumer Affairs and Human Resources Committee chairman said that this amount includes RM7.97 billion in foreign direct investment (FDI) and RM4.96 billion in domestic direct investment (DDI).

“Out of the RM12.93 billion, the manufacturing sector contributed RM6.02 billion. FDI in the manufacturing sector is RM4.57 billion, while DDI in the manufacturing sector is RM1.45 billion.

“The services sector recorded a committed investment of RM6.90 billion, with FDI in the services sector amounted to RM3.40 billion, and DDI at RM3.50 billion,” Lee said during the state assembly meeting held at Bangunan Sultan Ismail here in Kota Iskandar today.

The Paloh assemblyman said this in reply to Anuar Abd Manap (BN-Pemanis) regarding the investment figures for the first quarter of this year.

Lee added that a total of 396 projects have been approved, creating 8,948 job opportunities in the state.

He also stated that to further increase investment in the state and make Johor a premier investment destination in the region, several initiatives have been implemented.

“This includes establishing the Invest Malaysia Facilitation Centre Johor (IMFC-J), aimed at reducing bureaucratic red tape and expediting the approval process, as well as the Johor Fast Lane (JFL) initiative.

“Additionally, the implementation of the Johor-Singapore Special Economic Zone (JS-SEZ) and the Forest City Special Financial Zone (FCSFZ) initiatives will position Johor as a key trading and investment hub in the region,” Lee said.

He expressed optimism that these initiatives will drive economic growth in Johor, particularly in the professional services sector. 

Source: Bernama

Johor records RM12.93b in committed investments up to 2Q 2024

The Ministry of Investment, Trade and Industry (MITI) will ensure industry access to sustainable markets, while improving resource efficiency, strengthening governance and supporting the country’s net-zero target.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz, said the MITI Sustainability Report 2023, launched today, aims to develop a trade and industry sector that incorporates sustainable practices.

“The purpose of this report is to demonstrate that we not only expect the industry to adopt sustainability measures, but as a government ministry, MITI must also lead by example with its own report.

“This highlights our focus on sustainability, including environmental, social and governance (ESG) issues,” he told the media after launching MITI Day 2024 today.

Tengku Zafrul noted that the report was produced and published entirely in-house, with third-party audit verification to ensure its credibility.

“This effort is expected to encourage more industry players to undertake their own sustainability reporting, as this initiative not only benefits the environment and future generations but also enhances business competitiveness.

“This is the first sustainability report of its kind at the ministry level in the country and follows the launch of MITI’s National ESG Framework last year,” he added.

Meanwhile, Tengku Zafrul said the MITI Open Day highlighted key aspects of the ministry’s industrial policy implementation, including the National Automotive Policy 2020, the National Semiconductor Strategy (NSS), and the New Industrial Master Plan 2030 (NIMP 2030).

He described the initiative as a people-centric concept, focusing on five core elements: investment, international trade, industrial development, job opportunities and community engagement.

“For those seeking employment, our career carnival offers over 2,600 job opportunities from more than 22 companies for graduates in attendance.

“We are also prioritising the TVET training sector. Among the training providers present today are the Department of Human Resources, Volkswagen Group Malaysia, German Malaysian Institute, AERO Malaysia Engineering Center, and Advanced Technology Training Center (ADTEC) Shah Alam,” he added.

Source: Bernama

MITI commits to sustainable markets and net-zero pathway

There will be 2,600 job opportunities from 80 local and international companies for young people at MITI Day 2024 organised by the Investment, Trade and Industry Ministry (MITI).

The annual event, to be held at Menara MITI, Kuala Lumpur on Oct 1 is expected to attract more than 10,000 visitors who will benefit from the government’s initiatives in boosting the country’s economic growth.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said MITI Day 2024 is an important platform for government agencies, industry players, youths and the micro, small and medium-sized enterprises to interact, especially in the manufacturing and services sector.

“The important message to convey is the good career prospects in the manufacturing and service industry sectors,” he said.

“Through this approach, I am confident that we can together develop a more sustainable and inclusive economy,“ he said.

According to a MITI statement, the highlights of MITI Day 2024 include career exploration; the National Technical and Vocational Education and Training (TVET) exhibition; ministries and agencies exhibitions; business, investment and stock briefings; factory price sales and local entrepreneurs’ mini Malaysia Autoshow; and the Royal Malaysian Police discount counter.

Source: Bernama

Local, international companies to offer 2,600 jobs at MITI Day 2024

State can help promote green cities, blue economy and sustainable development, says exco member

JOHOR’S role in the Indonesiamalaysia-thailand Growth Triangle (IMT-GT) is a key opportunity to promote green cities, the blue economy and sustainable development.

state investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said these efforts aligned with the Johor Green Deal that was launched during Asia Pacific Climate Week 2023 in Johor Baru.

The Green Deal focuses on promoting green energy, low-carbon cities and sustainable industries.

“For example, the IMT-GT Blueprint (2022-2026) emphasises the integration of green and blue economy strategies to support sustainable urban development, with backing from the Asian Development Bank (ADB).

“These initiatives aim to cut carbon emissions, create jobs in green and marine sectors and attract investment in renewable energy and marine industries,” he said when contacted.

Lee added that by working with industry experts and international organisations like the ADB and Asean secretariat, the state could play a more active role in this agenda as the IMT-GT framework encouraged participation from state and regional governments.

He highlighted that the recent 21st Chief Ministers and Governors Forum (CMGF) held in Desaru, Kota Tinggi, provided a platform to improve regional cooperation within the IMT-GT.

“This year’s discussions focused on issues such as environmental sustainability, resilient tourism and developing the blue economy, aimed at strengthening the economic and environmental aspects of the IMT-GT region.

“We also reviewed reports from the 7th IMT-GT Green Council Meeting, progress on the IMT-GT sustainable Urban Development Framework, regional cooperation projects and updates from the ADB and Asean secretariat.”

Lee said the 7th Green Council Meeting reaffirmed the members’ commitment to accelerating sustainable development in seven key areas – transport, energy, solid waste management, biodiversity, circular economy, climate change literacy and raising awareness about sustainability.

He also pointed out that aligning local green projects with national and regional policies, especially on cross-border issues like pollution and waste management, would reinforce environmental resilience.

“Each member country showcased its contributions to the green agenda.

“For instance, Indonesia highlighted the development of the Tenayan Industrial Park, focusing on palm oil industry infrastructure, while Thailand shared progress in eco-friendly public transport, solar roof projects and climate change education.

“As for Thailand, they have upgraded Phuket International Airport and established new transport links across the Golok River.

“Thailand also suggested more integrated cooperation by establishing CMGF secretariat offices in member countries and a mechanism to strengthen the CMGF’S role within the IMT-GT Framework,” he said.

Lee added that Malaysia had introduced several major projects, including Johor-singapore special Economic Zone, special Financial Zone in Forest City, Melaka Waterfront Economic Zone (M-WEZ), Malaysia Vision Valley and Kerian Integrated Industrial Park.

“These are expected to boost cross-border cooperation and industrial growth.

“These projects and initiatives will improve connectivity, tourism and economic resilience across the IMT-GT region, making our region stronger and more competitive globally,” he said.

Source: The Star

Growth triangle presents opportunities for Johor

Economic incentives particularly in Johor’s Iskandar region and Forest City are aimed at bolstering Malaysia’s attractiveness to international investors, Prime Minister Datuk Seri Anwar Ibrahim said today (Sept 26).

In his keynote address at the Investment Malaysia- Iskandar 2024 conference, Anwar said these measures included a competitive tax regime, talent development initiatives, and a stronger focus on bilateral relations, notably with Singapore.

He said it was also important for continued economic collaboration within Asean, to ensure the country’s economic growth remained resilient.

“We have outpaced expectations in GDP growth for the first two quarters, and the third quarter is looking promising,” he said.

The key initiatives in Johor’s Forest City offered a concessionary corporate tax rate of zero to five per cent and a special individual income tax rate of 15 per cent for knowledge workers.

Forest City is the first in Malaysia to offer a zero-tax rate for family offices.

The initiative, managed by the Securities Commission, is aimed at attracting regional and Malaysian families to handle their wealth from within the country.

“These incentives are designed to make Johor a primary engine of growth for Malaysia,” Anwar said.

He also emphasised the need for talent development to keep pace with global technological changes, noting that Johor’s Universiti Teknologi Malaysia (UTM) had set up an Artificial Intelligence (AI) faculty in just four months to meet these emerging demands.

Anwar reiterated the government’s commitment to fight corruption and ensure better governance, which he linked to the ease of doing business.

He said Malaysia’s strategic advantage is part of a peaceful and economically vibrant Asean region, with continued bilateral cooperation with Singapore, which has spurred significant real estate and talent development in Johor.

As Malaysia prepares to chair Asean next year, Anwar reaffirmed the nation’s goal of becoming a leader in clean energy and sustainability, citing the progress in large-scale solar projects and net energy metering initiatives.

“These projects, in collaboration with Tenaga Nasional and Petronas, are key to Malaysia’s target of achieving net-zero emissions by 2050.

“With these initiatives, we aim to position Malaysia as a hub for international capital and technological innovation, driving the nation’s growth while fostering stronger regional ties,” he said.

Meanwhile, Johor Menteri Besar Datuk Onn Hafiz Ghazi said Johor’s strategic advantages and strong growth momentum made the state an unbeatable investment destination.

“We are witnessing growing interest from investors, both locally and internationally.

“Johor’s GDP growth outpaced the national average, expanding by 4.1 per cent year-on-year in 2023, driven primarily by our thriving services and manufacturing sectors,” Onn Hafiz said.

He added that Johor recorded RM5.2 billion in exports in July, with strong performances in petrochemicals, electronics, and non-metallic materials.

The menteri besar said Johor’s robust economic growth and infrastructure development are due to its political stability.

“Johor has a two-thirds majority in the state assembly, which allowed for the smooth execution of the Maju Johor 2030 plan.

“This initiative focused on six key areas, including governance, economic development, and youth empowerment,” he said.

Onn Hafiz also said Johor’s superior connectivity positioned it as a critical regional hub.

“This included Johor’s links to global supply chains through Johor Port and the Port of Tanjung Pelepas, its close integration with Singapore, and the infrastructure upgrades like the Johor Baru-Singapore Rapid Transit System Link.

Onn Hafiz expressed confidence in Johor’s future, citing the state’s ongoing infrastructure projects, skilled workforce, and strong support from the federal government as key enablers for sustained growth.

Source: NST

PM: Johor’s economic incentives poised to attract global investors

Malaysia is now more selective in choosing foreign direct investments, with a focus on projects that would greatly benefit the country, especially in the field of artificial intelligence (AI) and data technology, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the opening of a data centre that used to depend on cheap energy and water to move and cool the operating systems, is now no longer sufficient.

“Now, if you want to (establish) a data centre, you must have AI,” he said, referring to projects like Nvidia in Johor, “which is an example of how technology needs to be improved to remain relevant,“ he said at the Ilmuan Malaysia Madani Forum here on Wednesday organised by Tenaga Nasional Bhd.

Anwar said universities in this country should also be empowered to produce skilled workforce in the field of AI and engineering in order to meet the needs of high-tech investors.

“So, if the investment is big, we are now more selective in choosing investments that can benefit the country more,“ he explained.

Meanwhile, touching on the national budget, he outlined education and health as the main priorities, with the highest allocation given to the education sector, followed by health.

Source: Bernama

Malaysia more selective in choosing foreign investment for country’s greater benefit — PM Anwar

Sabah has become a highly sought-after destination for both leisure and business from China, said Chief Minister Datuk Seri Hajiji Noor.

“Sabah has ample opportunities for investors in green technology and high-tech agriculture, as well as mixed developments.

“We are also keen for Chinese investors to explore opportunities in the state’s blue economy.

“Similarly, the energy sector presents significant opportunities, with oil and gas remaining important revenue streams for Sabah.

‘We also welcome investors to explore solar and storage technologies, hydro, geothermal, and carbon market opportunities,’ he said during the 75th anniversary reception of the founding of the People’s Republic of China at a hotel yesterday (Sept 24).

Also present were Head of State, Tun Juhar Mahiruddin, and his wife, Toh Puan Norlidah RM Jasni, Hajiji’s wife, Datin Seri Julia Salag, and the Consul General of China in Kota Kinabalu, Huang Shifang.

Malaysia and China celebrated the 50th anniversary of the establishment of diplomatic relations on May 31.

“The King of Malaysia’s recent four-day visit to China was a significant step in strengthening diplomatic ties between the two nations,” he said.

The mutual visa exemption between Malaysia and China since last December has contributed to a surge in Chinese tourists to Sabah, with 262,070 of the 706,383 international arrivals recorded from January to July this year, making them the largest foreign source of tourists, he said.

China’s visitor arrivals were recorded at 26,054 of the 424,052 international arrivals for the same period last year.

Hajiji said that since tourism is a critical driver of Sabah’s economy, the state government would continue to enhance its business environment and upgrade tourism facilities to attract more investors and tourists to the state.

Source: NST

Sabah attracts Chinese investors, tourists

Strategic reforms and global trends set to attract further fund inflows

The outlook for Malaysia’s investment climate in the second half of 2024 (2H24) remains positive, with experts expecting continued growth across key sectors.

Ongoing economic reforms, favourable global trends and the country’s strategic position in supply chains are set to attract further investments.

However, external risks, including global geopolitical tensions and economic uncertainties, could influence investor sentiment.

Bank Muamalat (M) Bhd chief economist Mohd Afzanizam Abdul Rashid is optimistic about Malaysia’s investment prospects, highlighting the country’s appeal as firms seek alternatives to China, driven by trade tensions among developed economies.

“Malaysia seems to be a natural choice in light of the pro-business government, along with a supportive regulatory framework, decent infrastructure and the availability of a talent pool that would facilitate the investment process almost seamlessly.”

He noted that clarity in policy and fiscal reforms has already encouraged portfolio inflows.

Mohd Afzanizam sees growth potential in renewable energy (RE), cloud technology and tourism-related projects.

Similarly, OCBC Bank senior Asean economist Lavanya Venkateswaran sees continued interest in Malaysia, provided the government remains committed to its reform agenda.

“As long as the momentum is sustained, we expect investors to remain interested,” she noted, highlighting that Malaysia’s diversified export base, particularly in electrical and electronics (E&E) and machinery, offers a solid platform for future investments.

CIMB Bank Bhd head of treasury and markets research Michelle Chia echoed this sentiment, emphasising that Malaysia’s strategic location and policies position it to seize opportunities from the China+1 strategy, as well as green energy investments.

“These complement the existing investments into electronics, machinery and natural resources,” she noted.

However, economist Geoffrey Williams cautioned that much of the focus in 2H24 will be on consolidating and finalising deals.

“The main announcements have already been made,” he explained.

He highlighted external risks such as

ringgit volatility, US interest rates and the geopolitical impact of the upcoming US elections.

“These are outside of Malaysia’s control,” he stated, urging the government to focus on maintaining domestic economic stability and a sustainable budget to mitigate the effects of external uncertainties.

On the upside, Malaysian Institute of Economic Research executive director Anthony Dass sees a bright future for Malaysia, particularly in sectors like E&E, data centres, RE and real estate.

He also pointed out that the political stability, underpinned by initiatives like the National Energy Transition Roadmap and the Johor-singapore Special Economic Zone (JS-SEZ), will bring positive spillovers to the economy in the years ahead.

In 1H24, Malaysia’s total approved investments reached RM160bil, marking an 18% year-on-year growth.

Domestic investments accounted for Rm85.4bil or 53.4% of the total, with a 19.1% increase, while foreign investments contributed Rm74.6bil (46.6%), growing by 16.7%.

The services sector attracted Rm97.2bil (60.7%), growing by 14.4%, and the manufacturing sector secured Rm60.1bil (37.6%), with a significant 34.1% increase.

Maybank Investment Banking Group macro research regional co-head Chua Hak Bin also emphasised the significance of the JS-SEZ in driving investments, particularly in manufacturing, logistics and RE.

He predicts property demand and values in Johor to rise, further fuelling real estate investments.

Despite the promising outlook, experts warn that global uncertainties could disrupt the investment wave.

“An escalation in the United States-china trade war, particularly if Trump wins the election, could disrupt investments and trade,” Chua added.

Bank Muamalat’s Mohd Afzanizam highlighted concerns over the global economic climate, particularly the weakness in China’s economy.

“Global investors are worried about the state of China’s economy, especially as its real estate market struggles. As the world’s second-largest economy, China’s challenges could seriously impact global demand,” he explained.

The economist noted that the upcoming US presidential election could also influence global trade and geopolitics.

Lavanya echoed these concerns, emphasising that geopolitical factors, including the outcome of the United States elections, could significantly impact Malaysia’s investment and export growth. Domestically, she warned that if there is lack of progress on the government’s reform agenda or disappointing announcements in Budget 2025, this could keep investors cautious.

Regarding the ringgit, while most experts expect it to remain firm or even appreciate, economist Williams offered a different perspective as he believes the appreciation of the ringgit “might have been overdone.”

“The exchange rate should be stable if possible. A steep appreciation makes exports more expensive and can cause a loss of markets.”

He illustrated this by noting that for a US buyer when the ringgit was at 4.80 against the US dollar, a RM10 product cost US$2.08. With the ringgit now at 4.20, that same product costs US$2.38, making it more expensive for the buyers.

Conversely, exporters pricing their products in US dollars are feeling the pinch as a product that once brought in RM48 at a weaker rate now only fetches RM42 due to the strengthened local note.

Mohd Afzanizam predicts the dollar-ringgit rate could reach RM4 by yearend, driven by increased foreign investor confidence boosting demand for the ringgit.

Lavanya expects dollar-ringgit levels to remain around 4.17 until the end of 2024, with further appreciation likely in 2025.

Similarly, Anthony believes the ringgit has room to strengthen, estimating its fair value at 3.80 to 3.90 against the greenback.

Source: The Star

Investment outlook remains bright in 2H24

The free trade agreement (FTA) between Malaysia and the members of the Gulf Cooperation Council (GCC), which is set to be signed, will place emphasis on trade and investment ties between both parties.

Foreign Minister Datuk Seri Mohamad Hasan said Malaysia and GCC members — Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) — are in the final stages of concluding the FTA.

Mohamad noted that trade and investment relations between Malaysia and the GCC members are highly significant, with economic cooperation expected to yield substantial benefits for both sides.

“We discussed efforts to enhance cooperation between Malaysia and the GCC members, which are now an incredibly important bloc, and we must not lose sight of this strategic relationship.

“The FTA document is currently being finalised and is expected to be signed in the near future,” he told the media when met at the Permanent Mission of Malaysia to the United Nations here yesterday.

Prior to this, Mohamad held bilateral talks with GCC secretary-general Jasem Mohamed Albudaiwi, which took place on the sidelines of the 79th United Nations General Assembly.

Meanwhile, Mohamad informed that Jasem is expected to attend the Asean-GCC Summit in conjunction with the Asean Summit 2025, which will be held in Kuala Lumpur next year.

He added that Jasem had expressed his willingness to arrange official invitations for GCC members to participate in the summit.

In August, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia aims to establish an FTA with the six GCC members as a bloc, as well as bilateral agreements in the Middle East, to enhance commercial ties with this key economic region.

He noted that Malaysia is also set to finalise a bilateral agreement with the UAE by the end of this year.

Saudi Arabia, the largest economy in the region, is also facilitating Malaysia’s FTA negotiations with the GCC, said Tengku Zafrul.

Source: Bernama

Malaysia, GCC to sign free trade deal, boost investment ties

Johor is set to become a prime investment destination with the introduction of the Special Financial Zone (SFZ), marking a significant milestone for both local and international investors.

Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said the SFZ’s strategic incentives and infrastructure would position the state as a competitive player in Southeast Asia’s investment landscape.

“The introduction of the SFZ signals a new era of opportunities. With attractive tax incentives, streamlined regulations and world-class infrastructure, Johor is poised to emerge as one of the most competitive investment destinations in the region,” he told the New Straits Times, today.

The SFZ will provide a business-friendly environment that reduces red tape and accelerates growth opportunities across key sectors, including technology, finance, logistics and manufacturing.

Lee likened its potential to the transformation of Johor’s petrochemical industry, recalling how, over the past 10 to 15 years, the Pengerang Integrated Petroleum Complex in Kota Tinggi became a major industrial hub through collaborative efforts by the federal and state governments.

“Just as we built a comprehensive ecosystem in Pengerang, we aim for the SFZ, particularly Forest City, to replicate this success in the financial and technology sectors,” he said.

Local businesses, will not be left behind, Lee said. The state government is committed to ensuring that domestic companies seize the opportunities presented by the SFZ through capacity-building programmes, SME incentives and partnerships with international firms.

Local companies will also gain access to financing, advanced technologies and innovation, enabling them to remain competitive. Additional workforce training and certification programmes will further uplift local talent, equipping them with the skills necessary for the evolving business landscape.

The SFZ is expected to cement Johor’s status as a global hub for trade, finance and investment, attracting multinational corporations and fuelling Malaysia’s economic growth.

“SFZ will drive innovation, create jobs and support sustainable development, reinforcing Johor’s role as a key gateway to Asean markets and enhancing investor confidence worldwide.

The SFZ will elevate Johor on the global stage, attract major players and place the state firmly on the world investment map,” Lee said.

On Friday (Sept 20), Finance Minister II Datuk Seri Amir Hamzah Azizan announced the Forest City SFZ incentive packages, aimed at attracting international capital to the zone.

He said the establishment of the Forest City SFZ was not merely a new chapter in the country’s financial development, but a bold vision that would position Malaysia as a dynamic player on the global financial stage.

Source: NST

Forest City’s SFZ to propel Johor as premier investment hub

Malaysia has officially ratified the United Kingdom’s (UK) accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking it as the country’s first bilateral free trade agreement with the UK.

In a statement today, the Investment, Trade and Industry Ministry (MITI) said this significant move elevates the combined gross domestic value (GDP) of the CPTPP bloc to US$15.4 trillion, enhancing economic collaboration among member nations.

MITI said the ratification allows Malaysian exports to benefit from immediate duty-free treatment on 94 per cent of tariff lines, particularly for palm oil, cocoa, rubber, electrical and electronic products, chemicals as well as machinery and equipment, once the agreement enters into force for the UK, expected by the end of 2024.

Source: Bernama

Malaysia ratifies UK’s accession to CPTPP, expands trade opportunities

Malaysia, like other ASEAN countries, will continue to strengthen its neutral stance so that more investment and trade will flow to the ten member countries of the bloc, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz.

In fact, he said Malaysia’s growing prestige as a leading economy in ASEAN and Asia, and the country’s leadership being recognised by the trade bloc, put the country in a good position to strengthen ASEAN’s position in the eyes of the world.

Tengku Zafrul, who is attending the ASEAN Economic Ministers Meeting in Laos now, also took the opportunity to share on Malaysia’s preparations to assume the 2025 Asean chairmanship with Asean Secretary-General Dr Kao Kim Hourn.

“I am confident that Malaysia’s chairmanship will highlight the country’s leadership and vision in us driving the direction of the ASEAN economic agenda,“ he said on social media platform X today.

Outside of the meeting, Tengku Zafrul also met with the UK trade policy minister Douglas Alexander in a bilateral meeting. The two leaders discussed various ways to increase economic cooperation between Malaysia and the UK ahead of Malaysia’s ASEAN chairmanship next year, which will also be discussed through the Fourth ASEAN – UK Economic Ministers Consultation in the context of ASEAN.

“Malaysia supports efforts to strengthen the ASEAN-UK partnership, to drive sustainable economic growth and enhance regional integration.

“The United Kingdom is Malaysia’s largest market for the service sector in Europe with the value of bilateral trade between the two countries reaching RM23.28 billion. Malaysia’s total exports to the UK amounted to RM9.94 billion, accounting for 5.1 per cent of our country’s service exports,“ he said.

Meanwhile, he said the Troika Open-ended Dialogue together with the Third Asean Economic Ministers’ Meeting with Switzerland, welcomed the finalisation and acceptance of the ASEAN-European Free Trade Association Joint Declaration on Economic Cooperation (ASEAN-EFTA JDC). He added that the ASEAN-EFTA JDC has the potential to create closer cooperation between ASEAN and EFTA in various priority sectors such as investment, trade, and others.

The minister said Switzerland is ASEAN’s 9th largest source of foreign direct investment (FDI), reaching US$5.2 billion last year while the value of bilateral trade between the bloc and Switzerland amounted to US$28.5 billion in 2023.

Source: Bernama

Malaysia, like other asean countries, will continue to be neutral and attract investments to region

Malaysia’s RM160 billion approved investments in the first half of 2024 (1H 2024), comprising RM85.4 billion in domestic investments (DI) and RM74.6 billion in foreign investments (FI), showed that the country is not overly dependent on FI to stimulate its economy.

Malaysian Institute of Economic Research (MIER) executive director Dr Anthony Dass said that the services sector contributed RM97.2 billion and manufacturing RM60.1 billion to the 1H’s impressive performance, alongside improvements in the ratio of domestic to foreign investments.

“So this tells us that we are not overly relying on foreign investment to drive this economy.

“Going forward, looking at the Madani Economic Framework, Malaysia should potentially receive more exporters due to the way the DI is moving now.

“This is compared with a few years back, when I felt that FI was taking the leading role compared to the DI. Today, the ratio has changed, and with this kind of approval numbers coming in, we are looking at about 80,000 new jobs,” he said in a presentation titled ‘Cautious, Optimism’ held during the Malaysian Investment Development Authority (MIDA) and MIER memorandum of agreement (MoA) exchange event here Thursday.  

Dass said several national master plans, such as the New Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap (NETR), will lead to investment realisation over several years, providing continuous positive spillovers to the economy moving forward.

He said private investment taking shape is one of the key indicators supporting the economic growth for the second half of this year, apart from sustained consumer spending, sustained growth, export momentum, reforms raising confidence and expectations that the ringgit will continue to outperform.

Meanwhile, Dass opined that consumer spending, which makes up about 60 per cent of the gross domestic product (GDP), would continue to support this year’s economic growth.

“The labour market is fairly stable, with unemployment rates decreasing and government benefits supporting the salary adjustments.

“Importantly, inflation is also slowing down, creating a cooling effect despite the decent subsidy and various reforms.

“Inflation is still coming off decently well, and at MIER, we anticipate it will settle around three per cent. As a result, the overnight policy rate is expected to remain at three per cent,” he said.

Dass said that confidence is picking up and Malaysia’s image has significantly improved, where, based on the Business Confidence Survey, more than 70 per cent of companies responded they are very optimistic.

He said that due to reforms, MIER is expecting the equity market to pick up in the second half of this year.

Regarding the ringgit’s performance, he said the local note is expected to continue to outperform after a long period of being undervalued.

He said despite currently being undervalued, indicators like the nominal effective exchange rate (NEER) and real effective exchange rate (REER) suggest the ringgit’s fair value lies between RM3.90 and RM4.20 against the US dollar.

“The key drivers for the ringgit will be the narrowing of the interest rate differential. This year, I anticipate a cut of about 100 basis points. If the Fed implements this cut, we should see the interest rate differential to 125-150 basis points.

“Additionally, the ringgit is supported by fiscal reforms, foreign investment inflows, and investment realisation, which we estimate to be around 80 per cent (investment realisation),” he said.

He added that the ringgit is attracting attention from portfolio investors, not just in bonds but also in equities, thanks to a stable and stable political environment.

According to Dass, MIER anticipates Malaysia’s GDP growth to surpass five per cent this year, with inflation projected at three per cent.

He said inflation should be coming off a bit low next year because the only impact left is the RON95 fuel subsidy rationalisation.

Source: Bernama

Robust 1H 2024 domestic investments show country not dependent on foreign investments — MIER

Deputy Investment, Trade and Industry secretary-general (Industry) Datuk Hanafi Sakri said Malaysia and Palestine will sign a memorandum of understanding (MOU) to boost bilateral cooperation in several sectors.

Speaking at the Palestinian-Malaysian business networking dinner on Wednesday (Sept 18), Hanafi said the MOU covers 14 areas, including trade facilitation, investment, small and medium-sized enterprise (SME) development and the halal industry.

“It will help establish mechanisms to facilitate smoother trade flows and promote joint ventures, providing a clear framework to deepen economic ties,” he said. 

He said Malaysia’s total trade with Palestine in 2023 grew by 52.1% to RM20.85 million, versus RM13.7 million in 2022.

“Exports to Palestine surged by an impressive 96.2% to RM13.47 million, from RM6.87 million in 2022, while imports from Palestine grew by 7.9% to RM7.38 million, from RM6.84 million in 2022.

“This MOU will serve as a catalyst to enhance trade and investment, creating opportunities for large corporations and SMEs — the backbone of both economies,” he said. 

By leveraging Malaysia’s position as a gateway to Asean, along with its Asean chairmanship next year, new markets can be unlocked, stimulating trade and investment, and driving innovation across various industries, he said.

“Malaysia is committed to supporting Palestinian efforts and looks forward to seeing Palestinian companies excel in the region,” he said.

 Palestinian Ambassador to Malaysia Walid Abu Ali and Palestine Trade Centre (PalTrade) chief executive officer Ruwa Jabr attended the dinner organised by the Palestinian Embassy, in collaboration with the Malaysia External Trade Development Corporation (Matrade).

Source: Bernama

Malaysia, Palestine to boost bilateral cooperation in sectors including trade and investment — MITI

The Malaysian Investment Development Authority (MIDA) and Alliance Bank Malaysia Bhd have recently hosted a Carbon Border Adjustment Mechanism (CBAM) workshop to help exporters navigate the European Union’s (EU) carbon border policy.

In a joint statement today, they said the groundbreaking event brings together industry leaders, and an environmental expert from Riverstone Environmental Sdn Bhd to 

explore the potential of CBAM in revolutionising sustainable industrial practices.

The workshop was divided into three parts, focusing on CBAM’s impact on businesses,

implementation timelines, compliance processes and strategies to navigate them.

CBAM is a carbon border tax designed to address the growing concern of carbon leakage by putting a fair price on the carbon emitted during the production of carbon-intensive goods entering EU countries. 

This innovative mechanism encourages cleaner industrial production in non-EU countries, paving the way for a more sustainable future.

Investment, Trade and Industry Ministry (MITI) deputy secretary general (Investment and Management) Datuk Bahria Mohd Tamil said the ministry actively engaging with international partners to promote a low-carbon economy. 

She stated that they are working together to ensure Malaysia’s interests are represented in global climate negotiations and to facilitate trade for exporters affected by CBAM. 

“While it’s a new regulatory challenge, CBAM also incentivises sustainable practices and can enhance the long-term competitiveness of our businesses. 

“With strategic planning and government support, we can navigate this transition successfully and drive innovation, improve our environmental credentials, and secure a leading position in the global market,” she added.

Meanwhile, MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said it is crucial for everyone involved in the supply chain of European importers to 

understand the CBAM requirements thoroughly and start taking steps to meet these new regulations. 

“Being ahead of the curve is vital to maintaining our competitiveness in the global marketplace.

“The shift towards greener practices is not just a regulatory hurdle, but a chance to innovate, to enhance efficiency, and to position Malaysian businesses at the forefront of sustainable trade,” he said.

According to the statement, about 75 per cent of Malaysia’s exports to the EU will be impacted by CBAM, albeit collectively accounting for about 8.0 per cent of Malaysia’s total exports from 2021 to 2023. 

The new regulatory requirement will impose significant compliance costs and further drive the importance of sustainability in the global supply chain. 

Malaysian exporters, particularly those that are heavily reliant on exports to the EU and those that produce carbon intensive products from six groups being cement, iron & steel, aluminum, fertilizers, electricity and hydrogen will be impacted in the initial phase.

Source: NST

MIDA, Alliance Bank host workshop to help exporters navigate EU carbon border policy

Malaysia saw an 18% surge in investments in July, reflecting the country’s strategic focus on driving growth through innovation and strong international partnerships.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said with trade numbers up by 9.28%, reaching RM1.6 trillion, the government’s commitment to stimulating investment, particularly with China, is proving effective.

“China remains Malaysia’s largest trading partner for the 15th consecutive year, contributing to nearly 18% of Malaysia’s total trade as the trade relationship has amounted to RM451 billion in 2023,” he said at a partnership signing ceremony between MY EG Services Bhd (MyEG) and Federation of Malaysian Freight Forwarders (FMFF) today.

Tengku Zafrul said recent developments, such as the extension of the Malaysia-China Five-Year Economic and Trade Cooperation Programme (2024–2028), reflect both nations’ commitment to enhancing cooperation in commerce, digital economy, logistics, and small and medium enterprises.

“As part of our efforts to modernise trade processes, Malaysia and China have also established a National Single Window (NSW) to facilitate cross-border trade. This is a reflection of the commitment of both governments to leverage technology in trade,” he added.

Tengku Zafrul said Malaysian Investment Development Authority and the Ministry of Investment, Trade and Industry (Miti) have prioritised the NSW’s integration with Asean’s Single Window, anticipating Malaysia’s chairmanship of Asean next year.

Meanwhile, MyEG has announced a collaboration with FMFF to promote the adoption of ZTrade among FMFF members and to establish the cross-border trade facilitation platform as the NSW.

The partners signed a memorandum of understanding, agreeing to work together on several initiatives related to the positioning of ZTrade as the NSW for domestic trade as well as cross-border trade to and from Malaysia. These include promoting the platform to businesses and government ministries and agencies, providing training and support to users of the platform, and introducing and jointly market services presently on ZTrade to FMFF members.

ZTrade is a Web 3 platform that provides verification and exchange of digitised trade documents for the trading of goods between China and its global trading partners. By leveraging ZTrade’s digital solutions, customs clearance can be expedited as there will no longer be any need for manual document verification.

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Tengku Zafrul said the ZTrade platform, based on blockchain technology, is at the forefront of innovations, empowering businesses to manage trade documents efficiently and track shipments in real-time. “With ZTrade’s implementation, Malaysia is positioning itself as a key player in global trade, while fostering a more competitive and business-friendly environment.”

As Malaysia strengthens its economic ties with China, the nation is poised for continued growth and prosperity, driven by strategic investments, technological advancements, and a robust commitment to international trade, he added.

Source: The Sun

Investments in Malaysia soar 18% in July as international partnerships pay off

Malaysia is targeting RM75.2 billion halal export value or 11 per cent of the gross domestic product by 2030, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The country’s halal exports, totalling RM55 billion last year, he said, play a crucial role in driving the country’s economic growth.

Of this total, he said, halal food and beverage (F&B) was the largest contributor with an export value of RM29.4 billion.

This is followed by halal ingredients, cosmetics and personal care products; palm oil derivatives, the chemical industry, and pharmaceuticals.

“Despite facing the global economic challenges, Malaysia remains top in the Global Islamic Economy Indicator (GIEI) 2023.

“Malaysia’s 10th year achievement signifies its position as the industry leader at the global level,” he said in his speech at the Malaysia International Halal Showcase (Mihas) 2024.

Mihas 2024 is hosted by the Investment, Trade and Industry Ministry (Miti) and organised by the Malaysia External Trade Development Corporation (Matrade).

In the service sector, Islamic financing was well received and widely used on the principle of risk-sharing, and investments based on Islamic values such as fairness, transparency and social responsibility, he said.

He said those values were in line with the Environmental, Social & Governance (ESG) principle, which is widely promoted in non-Muslim countries.

In driving the exports digitalisation agenda, the ministry also encouraged Malaysian companies, including the micro, small and medium enterprises (MSMEs) to use eDagang platform for exports through e-TRADE, he said.

“Miti and Matrade also encourage Malaysian exporters to make use of the Free Trade Agreements (FTAs), including the biggest FTA Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“RCEP and CPTPP constitute 28 per cent and 11.5 per cent of global GDP, respectively,” he said.

Mihas 2024 runs until Sept 20 at the Malaysia International Trade & Exhibition Centre (Mitec).

Themed ‘Globalising Halal Innovations’, the showcase will be positioned as the leading platform for global Halal companies to showcase their most innovative Halal products, services, and technologies through 14 clusters.

Source: NST

Malaysia targets RM75 billion halal exports by 2030