Malaysia and Turkiye have acknowledged the Malaysia-Turkiye Free Trade Agreement (MTFTA), which has been in force since 2015.

In a joint statement today, Prime Minister Datuk Seri Anwar Ibrahim and Turkish President Recep Tayyip Erdoğan expressed their satisfaction with the expansion of the MTFTA in 2024 to include trade in services, investment and e-commerce.

Both leaders reaffirmed their commitment to the full operationalisation of the Trade Preferential System among the Member States of the Organisation of Islamic Cooperation (TPS-OIC) and D-8 Preferential Trade Agreement (D-8 PTA) and agreed to cooperate for the enhancement of these agreements.

In recognising the critical role of the private sector in advancing economic ties, Anwar and Erdogan have expressed their full support for greater business-to-business collaboration to expand trade and investment opportunities.

They welcomed the mutual readiness to establish a Joint Business Council between the National Chamber of Commerce and Industry of Malaysia and the Foreign Economic Relations Board (Dış Ekonomik İlişkiler Kurulu) of Turkiye to enhance commercial exchanges and unlock new opportunities for sustainable economic cooperation.

The two leaders expressed their steadfast commitment to advancing partnerships and enhancing economic development cooperation under the Developing Eight Organisation for Economic Cooperation (D-8) and welcomed Azerbaijan’s accession to the D-8.

Erdoğan is on a two-day official visit to Malaysia beginning yesterday at Anwar’s invitation.

During the visit, he held extensive talks with Anwar on deepening bilateral relations, as well as exchanged views on current regional and international issues.

Source: Bernama

Malaysia, Turkiye acknowledge MTFTA, its 2024 expansion

The Malaysian government’s meeting with United Kingdom (UK)-based technology company Arm Ltd today proves that clear policies such as the National Semiconductor Strategy, along with the country’s other advantages, continue to make Malaysia a prime destination for foreign investment, said Prime Minister Datuk Seri Anwar Ibrahim.

In a Facebook post, he said that during his meeting with Arm executive vice president and chief commercial officer Will Abbey, accompanied by Economy Minister Datuk Seri Rafizi Ramli, they exchanged views on the direction of computing technology to help Malaysia strengthen its position as a hub especially in relation to the semiconductor and data centre ecosystem.

“Arm Ltd, a UK-based company, is a global leader in central processing unit (CPU) technology and focuses on building the future of global computing.

“The company also acts as an architect, developing and licensing high-performance, low-cost, and energy-efficient intellectual property solutions,” he added.

Source: NST

Malaysia continues to attract foreign investment due to clear policies – Anwar

Malaysia and Turkiye need to collaborate in various sectors, including semiconductors, agri-commodities, electrical and electronics (E&E) as well as food and beverages (F&B) to achieve the US$10 billion (RM44.68 billion) bilateral trade target, said Prime Minister Datuk Seri Anwar Ibrahim.

Yesterday, Turkish President Recep Tayyip Erdoğan, who is on a two-day official visit to Malaysia at Anwar’s invitation, said Turkiye aimed to double its trade with Malaysia to US$10 billion after surpassing the US$5 billion (RM22.34 billion) mark in 2024.

In response, Anwar acknowledged that while the target is ambitious, he believes Malaysia can facilitate Turkiye in achieving it.

“There is no reason why developing or emerging economies like Malaysia and Turkiye cannot increase their intra-trade.

“We therefore need to work in various fields, such as semiconductors, agri-commodities, E&E and F&B,” he said, also emphasising the importance of cooperation in the defence sector and technology exchange.

Anwar was speaking at a joint press conference with Erdoğan, which was broadcast live today.

He called for continued collaboration with Turkiye in sectors like energy, particularly with state-owned oil and gas company Petroliam Nasional Bhd (Petronas) and related firms, halal industries, healthcare, digital technology, and disaster management.

Anwar also praised Turkiye’s successful transformation of its airline and airport management, urging the sharing of its best practices.

Meanwhile, Erdoğan said his recent discussions with Anwar had examined opportunities for cooperation in various fields such as industry and technology, energy, tourism and commerce, as well as culture and education,

“And we have focused extensively on concrete steps to be taken forward,” he said.

Erdoğan added that Turkiye was determined to sustain its momentum in the defence industry through technology transfer and joint manufacturing, and its companies are ready to share their expertise and products with Malaysia for mutual benefit.

On the US$10 billion trade target with Malaysia — Turkiye’s largest trading partner in Asean — he hopes the upcoming Business Forum will serve as an opportunity to unveil new cooperation models and investment projects.

Source: Bernama

Malaysia, Turkiye should collaborate in key sectors to achieve US$10 bln trade target — PM

Malaysia’s proposed high-speed rail (HSR) project could play a crucial role in the success of the Johor-Singapore Special Economic Zone (JS-SEZ), according to a market insider.

The insider said that improved connectivity between Kuala Lumpur and Johor would offer significant advantages, including enhanced labour mobility, which could drive social benefits through increased job opportunities for Malaysians.

Although the JS-SEZ is hailed as a “gamechanger,” he expressed concerns that without the HSR, the zone could disproportionately benefit Singapore, creating an unbalanced economic ecosystem.

“Without the HSR, the JS-SEZ risks shifting the regional economic focus towards Johor and Singapore, limiting Kuala Lumpur’s potential to emerge as a truly global city,” he told Business Times.

He cautioned that while Kuala Lumpur would remain a key domestic hub, its regional and international competitiveness could be compromised.

Covering 3,505 square kilometres in Johor, the JS-SEZ encompasses strategic areas such as the Iskandar Development Region, Forest City Special Financial Zone, and the Pengerang Integrated Petroleum Complex (PIPC). It features business-friendly initiatives, including simplified procedures for Singaporean firms to establish operations in Johor, passport-free checkpoint clearances, and digitised cargo management systems.

The JS-SEZ is expected to create over 20,000 skilled jobs and attract high-value investments in sectors like manufacturing, logistics, digital industries, healthcare, and education.

“This will lead to an increase in road users over time, eventually resulting in congestion. In the absence of the HSR, Malaysia will need to invest heavily in alternative infrastructure and strategic initiatives to strengthen Kuala Lumpur’s global standing and offset these challenges,” he added.

Wan Agyl Wan Hassan, founder and chief executive officer of MY Mobility Vision Sdn Bhd, said that reducing travel time between key economic hubs—Kuala Lumpur, Johor, and Singapore—would significantly boost productivity and stimulate the development of regional economic clusters.

Without the implementation of the HSR, travel times along the North South Expressway are expected to rise due to increased economic activity and population growth driven by the JS-SEZ.

To address this, alternative measures such as upgrading public transport, enhancing road infrastructure, and introducing traffic management strategies may be required. However, these solutions are unlikely to fully match the efficiency and benefits offered by a HSR system.

“We’re talking about the potential to attract FDIs, create dynamic business districts, and enhance our tourism appeal. However, the real challenge is ensuring that we adapt best practices. Just think of Japan’s Shinkansen or China’s HSR in our unique local context, not just replicating a foreign model,” he told Business Times.

Wan Agyl cautioned that failing to invest in HSR infrastructure could put Malaysia at a competitive disadvantage in the region.

“In my view, if we don’t invest in HSR, we risk falling behind our neighbours on several fronts. Modern HSR systems not only speed up travel but also create economic hotspots around station hubs, attracting investment and driving trade efficiencies.

“Without such infrastructure, Malaysia might be seen as less competitive, making it harder to attract both domestic and foreign investors. For tourism, reliable and fast connectivity is increasingly a deciding factor for travellers. The lack of HSR could therefore mean missing out on substantial economic spillover benefits and a diminished role in a rapidly modernising region,” he said.

HSR ‘revival’

Hailed as a “marquee project,” the Kuala Lumpur-Singapore HSR is envisioned as a strategic development aimed at reducing travel time between the two countries to just 90 minutes.

The HSR, which was initially proposed 23 years ago by YTL Group, is planned as a 350 km double-track route with eight stations. Johor will feature the longest stretch of the alignment, covering 182 km out of Malaysia’s total 328 km, with stations expected in Muar, Batu Pahat, Iskandar Puteri, and potentially Forest City.

Johor will also host two key maintenance facilities: a main depot north of the Iskandar Puteri station for general HSR train upkeep and a heavy maintenance base near Muar station responsible for maintaining the track, power supply, and signalling systems.

The project resulted in a legally binding agreement signed in December 2016, with the aim of having the line operational by 2026.

However, it was put on the back burner following several delays at Malaysia’s request and the eventual lapsing of an agreement in December 2020.

Malaysia paid more than S$102 million in compensation to Singapore for the project’s termination.

The Malaysian and Singaporean governments last year agreed to revive the mega rail project.

The project is nearing fruition, with three consortiums reportedly shortlisted: YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd, Berjaya Rail Sdn Bhd-Keretapi Tanah Melayu Bhd-IJM Construction Sdn Bhd, and a Chinese consortium led by state-owned China Railway Construction.

Doris Liew, economist and assistant research manager at the Institute for Democracy and Economic Affairs (IDEAS), suggested that a well-structured public-private partnership (PPP) would be the best approach to ensure the project’s long-term viability and sustainability.

Relying solely on private initiatives for such a large-scale project is risky due to the significant investments involved.

A robust PPP model can balance financial sustainability with public value, Liew told Bernama.

She noted that the success of the HSR project would also depend on the financial resilience of private sector partners involved.

Emphasis on balanced planning

The revived Kuala Lumpur-Singapore High-Speed Rail (HSR) project is projected to cost around RM70 billion, marking a significant reduction of 30 to 35 percent from the previously estimated RM110 billion, according to market insiders.

This revised figure factors in the updated railway alignment within Malaysia, along with adjustments in the number of stations and trains required for the project.

Wan Agyl noted that while project delays often lead to cost escalations due to inflation, rising land prices, and technological advancements, the notion of a “do now or never” approach oversimplifies the complexity involved.

“Rushing into a project without solid feasibility studies since we need a new study due to the many years of delay, clear political consensus, and secured financing can lead to even more serious cost overruns and execution failures. Instead, we need to fast-track essential preparatory work. In other words, we must strike a balance between urgency and due diligence so that when we move forward, we do so on rock-solid ground,” he said.

Despite both Malaysia and Singapore signalling readiness to move forward with the project this year, construction may not begin for at least another two years.

“The fact that we haven’t yet secured a formal commitment from Singapore and haven’t even kicked off discussions on our side should be seen as a sign of prudence rather than reluctance. Both nations need to ensure that all technical, financial, and political details are ironed out before making any binding commitments via bilateral agreement.

“For cross-border projects of this scale, aligning differing regulatory and operational standards is a lengthy process. This cautious approach allows us to conduct deeper feasibility studies and stakeholder consultations. It’s not a rejection of the project but a necessary phase to build a robust, mutually beneficial framework. We have done it before and I believe it’s not a big issue for us to go through the process again,” he said.

Wan Agyl explained that this projected timeline reflects deeper structural challenges beyond bureaucratic delays.

“Firstly, comprehensive feasibility studies are needed to tailor the project to our local realities, ensuring that environmental, economic, and social impacts are fully understood. Then there’s the issue of political and bureaucratic inertia. Malaysia has seen large projects stall due to shifting priorities and slow decision-making,” he said.

He further emphasised the complexity of cross-border collaboration with Singapore, highlighting the need to align technical standards, regulatory frameworks, and financial structures.

“These delays, while frustrating, are critical to laying a sustainable and accountable foundation,” he said.

Wan Agyl said that an operational HSR could be a catalyst for growth across multiple sectors.

Shorter travel times would streamline business interactions and foster the creation of new economic corridors, making Malaysia a magnet for both domestic and international investors, he said.

“For tourism, HSR would offer an attractive, efficient way for visitors to experience our rich culture and landscapes, spurring growth in hospitality, retail, and services. Moreover, HSR stations can serve as nuclei for urban renewal and transit oriented development, spurring smart city initiatives and sustainable development.

“In short, HSR isn’t just a transport project; it’s an economic corridor development and an integrated strategy for national economic development,” he said.

Source: NST

Kuala Lumpur-Singapore high-speed rail will complement JS-SEZ

Malaysia’s foreign direct investment (FDI) is expected to remain robust in the long term, but there could be repercussions in the short term as investors hold back on their investment decisions amid heightened global uncertainties.

These uncertainties triggered by geopolitical risks are further exacerbated by US president Donald Trump’s import tariffs and the looming trade war.

However, economists viewed this scenario as a temporary setback as the country’s economic fundamentals remain intact.

Furthermore, they said Trump’s delayed tariffs on Canada and Mexico for another month may reduce the chances of an outbreak of a broader trade war.

HSBC Asean economist Yun Liu told StarBiz despite recent tariff announcements from the United States on Mexico, Canada and China, there remains huge uncertainty on future tariff risks.

She said this would likely put investors on a cautious footing in the near term when looking not only at Malaysia, but also other Asean countries.

That said, she said there are still good reasons to believe in Malaysia’s growth prospects, as the determinants of FDI often focus on long-term fundamentals.

“If we measure FDI commitments as a percentage of gross domestic product (GDP), Malaysia has topped the region since late 2021.

“After all, a confluence of factors, including its significance in the global tech supply chain, friendly FDI policies, existing industry clusters, a skilled labour force and extensive free trade agreements or FTAs make Malaysia an outperformer in the region.

“One thing worth keeping an eye on is the New Investment Incentive Framework, expected to be unveiled in the first quarter of the year (1Q25) and implemented in 3Q25.

“Malaysia needs a set of new incentives to lure investments into high-tech sectors that produce high-value jobs,” Liu added.

RAM Rating Services Bhd economist Nadia Mazlan said in the short term, the perils of potential Trump tariffs may lead investors to hold back on their investment decisions, which could weaken FDI into Malaysia.

However, she said as jitters wear off, tariffs that are currently being imposed on China may prompt even more manufacturing companies to adopt the China Plus One strategy.

This supply chain realignment could lead to a rise in investments into Asean, including Malaysia, as seen during the first United States-China trade war.

“As transpired back in 2018, when the first trade war was initiated, we saw Malaysia’s net FDI slip to RM30.7bil from RM40.4bil in 2017, before rising to RM32.4bil the following year.

“Thus, if history serves as any guidance, the unpredictability of Trump’s trade policies could hamper investor sentiment in the near term, leading to a more moderate net FDI inflow this year compared to last year.

“That said, foreign capital investments are typically made to further an entity’s long-term goals and objectives. Thus, the committed FDIs in Malaysia are unlikely to be swayed by short-term geopolitical fluctuations,” she noted.

Nadia said Malaysia’s FDI will likely remain relatively robust this year on the back of a still-favourable FDI outlook, albeit somewhat dampened by heightened global uncertainties.

She said the latest foreign investments approved data suggest a healthy FDI pipeline, registering RM106.7bil worth of foreign investments approved for the first three quarters of 2024, most of which were in manufacturing.

The full-year investment approval amount for 2024, she said, while likely to come in lower compared to RM188.4bil in 2023, is still markedly higher than the pre-pandemic average (2016-2019 average: RM69.1 bil).

“We expect some of these investments to materialise soon, which should continue to support Malaysia’s FDI inflow this year,” Nadia said.

OCBC Bank senior Asean economist Lavanya Venkateswaran expects FDI inflows to remain steady this year.

She said notwithstanding global volatilities, Malaysia’s economic fundamentals have become stronger in recent years.

“Malaysia remains an attractive destination for manufacturing and services FDI inflows based on relatively solid infrastructure, young workforce, strong positions in the electrical and electronics (E&E) and commodities supply chain.

“These factors will continue to hold water even in 2025. This is complemented by the government’s push to diversify growth across the country, for example, setting up of the Johor-Singapore Special Economic Zone (SEZ), facilitate and develop infrastructure and implement the various medium-term economic plans will keep FDI inflows into Malaysia well buoyed,” Venkateswaran said.

Malaysia recorded FDI inflows (on a balance of payments basis) of RM29.1bil for the first three quarters of 2024, about 39% higher than the period in 2023. The trend for FDI inflows is upward and this is also being reflected in broader investment approvals. For the first three quarters of 2024, Malaysian Investment Development Authority (Mida) approved RM254.7bil of domestic and foreign investments across various sectors.

Juwai IQI global chief economist Shan Saeed said Malaysia continues to draw investment from local and foreign investors due to its macroeconomic stability, increasing demographics and policy consistency.

“The outlook for investment in 2025 looks promising with FDI expected to increase by 10% to 15% in the current fiscal year. Malaysia has created its own niche as information and communications technology (ICT) and data centre reliable hub for the global market in the last three to four years.

“The main drivers that will attract FDI inflows into the country include accelerated economic growth trajectory, ⁠macroeconomic stability, foreign investors positive outlook on the country, tech savvy labor force, modern infrastructure, and its strategic geographical location in the region. These all bodes well for FDI inflows into Malaysia,” Shan said.

At the same time, he said Malaysia continues to compete in FDIs with neighboring Asean countries like Indonesia, Vietnam, Singapore and the Philippines. In terms of regional competitiveness, Malaysia is fairly competitive, thanks to its four key variables to attract FDIs – political stability, productive labor force, modern infrastructure, and consistent economic policies and development outlook.

MARC Ratings Bhd chief economist Ray Choy said the global trade environment is expected to become increasingly complex this year compared to 2024, potentially dampening business sentiment and transaction velocity.

“Despite this, FDI typically operates on multi-year planning horizons, indicating that Malaysia is likely to continue benefiting from a robust long-term economic strategy.

“This strategy includes actively pursuing a diversified portfolio of investors and trade partners, pertinent examples are the Johor-Singapore SEZ and renewable energy investments in collaboration with South Korean companies in Sarawak, which exemplifies Malaysia’s approach to diversifying business partners within Asia amidst global trade challenges,” he said.

Choy said in recent years, Malaysia has experienced a surge in FDI inflows beyond long-term average levels since 2021, driven by national economic blueprints focused on increasing GDP contributions from higher value-added sectors and ongoing economic transformation.

As a leader in semiconductor manufacturing, which is currently a high growth sector, Malaysia would continue to benefit from policies such as the National Semiconductor Strategy, he said. Other sectors would also contribute significantly, driven by the New Industrial Master Plan 2030, National Energy Transition Roadmap, and goals towards the upcoming 13th Malaysia Plan.

“our baseline scenario suggests Malaysia will continue to benefit from trade diversion, as US tariff policies remain primarily targeted at China, with potential for renegotiation if China adopts a less assertive geopolitical stance.

“While the United States has begun with a 10% tariff, this measured approach remains subject to review and depends on China’s diplomatic strategy,” Choy noted.

As to what Malaysia should do to further attract FDIs, he said the country has made considerable progress in enhancing tangible aspects that support (FDI), including improvements in transportation infrastructure, competitive rental rates, and well-connected utilities.

However, Choy said there is an urgent need to address several intangible factors that could further enhance FDI inflows. A critical area of focus is the development of skilled human capital, which is essential for attracting high-value investments, particularly in the technology sector. Additionally, he said there needs to be a greater emphasis on research and development (R&D) to foster innovation and drive economic growth.

“Nonetheless, it is important that basic sectors are not neglected in the pursuit of high-growth, high-value sectors, particularly for the purpose of agricultural security as Malaysia’s ecological abundance is a natural strength that should be capitalised upon.

“When assessing FDI, it is essential for a strategic focus on sectors that create spillover effects across the economy and generate employment opportunities. Consequently, attracting FDI must go beyond mere value creation.

“It should be targeted on a deal-by-deal basis to ensure that sustainable economic impacts are achieved. Given the commercial aspects of attracting FDI, dynamic regulatory and policy flexibilities should be tailored to each investment deal,” Choy said.

Juwai’s Shan said to further step up FDI, the government can navigate the new tariff regime from the Trump administration by exploring new markets in the Gulf Cooperation Council (GCC) countries, Africa and Asia, especially Asean to spearhead economic growth and achieve higher income.

“FDI, trade and commerce move in countries where economic growth momentum is strong, political stability is solid, has the ability to consume goods and services to bolster the GDP growth, and strategic geography.

“I foresee Malaysia’s GDP growth outlook to meander around 5 to 6% in 2025, and the country will continue to stay on global investors radar as it is the 26th largest economy of the world, 11th in Asia and third in ASEAN. Malaysia has also been running the trade surplus for the last 27 years,” Shan said.

RAM’s Nadia said Malaysia remains an attractive FDI destination given its unique strengths such as having a skilled workforce, robust infrastructure, and a business-friendly environment as showcased by our 12 th ranking in the World Bank’s ease of doing business index.

“Furthermore, Malaysia’s ability to attract FDI is clearly demonstrated in sectors where it holds a competitive advantage, such as E&E, as well as data centre developments, which have received significant government attention and support.

“However, increasing regional competition from peers could make it a challenge to sustain Malaysia’s investment competitiveness. In particular, Vietnam has been a top alternative to China for firms while Indonesia’s pull factor includes its large labour and market size,” she said.

Source: The Star

FDI forecast to remain robust

The Johor-Singapore Special Economic Zone (SEZ) will encourage the industry diversification needed for the state to shield itself from global trade uncertainties, said Chief Minister Datuk Onn Hafiz Ghazi.

In an interview with Channel News Asia, he said the SEZ, which was formalised in January, spans 3,571 sq km and covers 11 key sectors, including manufacturing, logistics, financial services, and the digital economy.

With rising geopolitical tensions such as those arising from Donald Trump returning as the US presidency as disruptions in the artificial intelligence space from the release of China’s DeepSeek model, doubt has befallen Johor’s data centre gold rush.

Global technology giants Nvidia, Microsoft, and GDS International have already established data centres in southern Johor, the release of the DeepSeek model has led the technology sector to rethink if the previous projections for data centre requirements remained accurate.

“At the moment, the demand (for) data centres in Johor is huge, there are requests from US, China, Australia and quite frankly, this demand is getting higher,” Onn Hafiz was quoted as saying.

“Right now, it’s not a major concern, but we will monitor as it goes.”

Onn Hafiz explained that the JS-SEZ would help mitigate this as the zone covers 11 disparate sectors that considered “global demand and Johor’s strength”.

The 11 are manufacturing, logistics, food security, tourism, energy, the digital economy, the green economy, financial services, business services, education, and health.

The state was also pushing for travel infrastructure development to complement the Johor Baru-Singapore RTS Link that is expected to come online next year, such as by expanding the MyBorderPass QR-code clearance system to improve cross-border connectivity.

Onn Hafiz said the state was also working to ensure the growth and development would be both sustainable and equitable, by ensuring that some of the revenue is channelled back to ensuring the quality of life for state residents.

These include prioritising affordable housing and food security to balance economic expansion with local quality of life improvements.

Source: Malay Mail

With Singapore SEZ, CM says Johor will be more than just data centres

The Johor-Singapore Special Economic Zone (SEZ) is well-positioned to handle uncertainties stemming from the ongoing US-China trade tensions, thanks to its diverse industries and strong workforce.

“I think if you look at the sectors, there is a clear show that we are diversifying into lots of industries, I think that should help manage the uncertainties that’s happening in the world,” said Johor Menteri Besar Datuk Onn Hafiz Ghazi to Channel News Asia today.

Onn Hafiz said that Johor’s top priority now is to implement SEZ policies and attract investors to ensure the zone complements the economic strengths of Singapore and Malaysia’s Klang Valley.

“And at the same time, we are putting a lot of effort when it comes to (developing) our talents.

“I think by having a resilient workforce, by giving them proper training and education, we should be able to embrace (the challenges of a global trade war) quite well,” he added.

Onn Hafiz highlighted the 11 different sectors outlined in the Johor-Singapore SEZ agreement, adding that they reflect “global demand and Johor’s strength”, making the economic zone resilient despite geopolitical uncertainties.

He expressed confidence in Johor’s growing data centre industry, citing strong demand from international firms.

“At the moment, the demand (to build more) data centres in Johor is huge, there are requests from US, China, and Australia, and quite frankly, this demand is getting higher” he said.

Onn Hafiz also reaffirmed Johor’s ambition to become Malaysia’s most developed state by 2030.

Yesterday (Jan 8), Onn Hafiz said investors in the JS-SEZ will enjoy new tax incentive packages announced by the Johor state government and Finance Ministry.

The tax incentive package that took effect on Jan 1 aims to position Johor as a premier destination for high-value investments and bolster economic ties with Singapore.

Investors in JS-SEZ are eligible for suite incentives that include a special corporate tax rate of five per cent for up to 15 years for companies investing in advanced sectors such as Artificial Intelligence (AI), quantum computing, medical devices, aerospace manufacturing, and global services hubs.

Source: NST

Johor-Singapore SEZ’s industrial diversity resilient against trade tensions – Onn Hafiz

Johor is the top contributor to the country’s agricultural sector, says Johor Mentri Besar Datuk Onn Hafiz Ghazi.

Onn Hafiz said the state recorded a Gross Domestic Product (GDP) value of RM17.21bil or 17.1% of the national GDP in the agriculture sector.

“Johor continues to be the leader and the largest contributor to the country’s agricultural sector.

“The state government is committed to strengthening Johor’s position as the country’s food basket and a key supplier for regional and international markets.

“This will be achieved by increasing agro-food production and boosting agricultural exports to global markets,” he said in a statement on Facebook on Saturday (Feb 8).

Onn Hafiz made the remarks following a meeting with Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup to discuss agricultural development and food security in Johor.

“To ensure continued growth in production, we will also collaborate with the ministry to focus on research and development (R&D), particularly for pineapple, coconut, durian, banana, and papaya cultivation.

“The state government has also allocated RM18.48mil for various agricultural development initiatives this year,” he added.

He also thanked the Federal government for allocating over RM21mil to intensify efforts and programs related to food security in Johor under Budget 2025.

“We are confident that with the ministry’s cooperation and support, these efforts will not only establish Johor as a major agro-food production hub but also increase farmers’ and entrepreneurs’ incomes while ensuring better food security for Bangsa Johor,” he said.

Source: The Star

Johor contributes 17.1% of Malaysia’s GDP, says Onn Hafiz

All Uzbek and Malaysian companies are urged to forge new collaborations to reap the synergistic opportunities offered by both countries, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. 

He said earlier today that business-to-business (B2B) and government-to-business (G2B) sessions facilitated discussions on key industries, paving the way for new strategic partnerships.

“There were also several memorandum of understanding (MoUs) signed between our entities for promising projects, including in electronics and semiconductors, automotive industry, hydropower and solar energy, chemical industry, food industry and pharmaceuticals, that will facilitate the development and growth of both our economies and industries,” he said at the Malaysia-Uzbekistan Business Forum here today.

Also present at the event were Prime Minister Datuk Seri Anwar Ibrahim and Uzbekistan’s President Shavkat Mirziyoyev.

Tengku Zafrul highlighted that Malaysia, as a dynamic hub for manufacturing and services, boasts excellent infrastructure, strong connectivity, and a highly skilled talent pool across various fields.

He also expressed satisfaction with the participation of representatives from Malaysia’s small and medium enterprises (SMEs) in today’s forum, acknowledging their crucial role as the backbone of the Malaysian economy.

Over the years, Malaysian SMEs have strengthened their capabilities, allowing them to become increasingly integrated into global supply chains, he said.

“They offer a wide range of products and services, spanning manufacturing, technology, agriculture, and logistics while showcasing innovation, resilience and adaptability.

“The highly competitive and capable Malaysian SMEs will make reliable partners for Uzbekistan companies in enhancing their own supply chain operations, whether for materials sourcing or expanding distribution networks in the region,” he said.

 Meanwhile, Tengku Zafrul is encouraged by the strong interest from Uzbekistan in fostering closer ties with Malaysia across multiple sectors, primarily to learn from Malaysian experience and expertise and to build partnerships for industrial development. 

“As one of the youngest and fastest growing countries in the world, with a gross domestic product growth rate of between 5.5 and 5.8 per cent forecast for the next three years, and a series of comprehensive reforms aimed at modernising the economy and improving governance, Uzbekistan’s economy is on a positive trajectory and is poised to maintain a robust expansion,” he added.

Source: Bernama

Malaysian, Uzbek companies must forge new collaborations – Tengku Zafrul

Malaysia and Uzbekistan should enhance bilateral trade and investment in sectors like food technology, agriculture, semiconductors, green energy, and electric vehicles, said Prime Minister Datuk Seri Anwar Ibrahim.

He said both countries should also strengthen collaboration in the halal industry, education, artificial intelligence, digital and energy.

Trade and investment across all fields should be expanded, with a focus on halal industries and education, particularly higher education, he said in his speech at the Malaysia-Uzbekistan Business Forum here today.

“There must be a report coming every month to us (on this). This can only happen when we trust one another. This can only happen when we see both countries having the strength and respect for one another,“ he said.

Anwar said that Uzbekistan has also invited Petroliam Nasional Bhd (Petronas) to participate in its oil and gas activities.

Hence, he called on Petronas to facilitate this arrangement as it would benefit both nations.

He said that Malaysia and Uzbekistan should complement each other to overcome limitations and look at the economic fundamentals in order to protect the interest of the peoples of both countries and their welfare.

“No one person, country or entity can claim to have the sole expertise. Thus, why can’t we work together and benefit from (our strengths)?

“The point is, all ministries and major companies, both government-linked companies and the private sector, can listen directly to us (the leaders of both countries). We have given a clear commitment and a clear roadmap,” he said.

Source: Bernama

Malaysia, Uzbekistan should enhance bilateral trade, investment – PM Anwar

It is too early to determine whether the tariffs imposed by the United States on Canada, Mexico and China will harm or benefit Malaysia, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He said that even though Malaysia had benefitted before, it would not mean the same benefits would be achieved.

“For an open trade country like Malaysia (where the ratio of trade to gross domestic product is 130 per cent), long term stability in the global trade market is very important. We also do not know what the United States will do next to Malaysia and our neighbouring countries,“ he told Bernama TV in an interview today.

He said this in response to the US’s move to impose a 25 per cent tariff on imports from Canada and Mexico and a 10 per cent tariff on imports from China. The tariffs on China took effect on Feb 4 but the tariffs on Canada and Mexico have been delayed for a month.

According to Tengku Zafrul, although the trade war between the US and China is seen to be increasingly tense and may affect certain sectors, Malaysia might receive positive spillovers in the short term.

He said the trade tension had actually started during the administration of Donald Trump 1.0 and was continued by Joe Biden, and now Trump 2.0 is expanding it.

“The trade war has led to a shift in the global supply chain, with investors looking for a more stable alternative location… the realignment is (headed) to countries that are neutral like Malaysia, like ASEAN and some other countries or economic blocs.

“Neutral countries such as Malaysia and ASEAN members have become preferred destinations because we offer a strong ecosystem and a conducive investment climate… and due to this shift, our country has recorded an increase in export value. Malaysia is chosen because of its political stability, open economy and neutral status in the geopolitical arena,“ he noted.

Last year, Malaysia’s exports reached a record high, driven by the electrical and electronics (E&E) and semiconductor sectors.

Malaysian remains neutral, focus on investments

Amid the global geopolitical tensions, Malaysia maintains a neutral stance and continues to attract quality investments, said Tengku Zafrul.

In 2023, the country posted approved record investments worth more than RM330 billion.

He said Malaysia is also active in strengthening investment policies, including through the New Industrial Policy (NIMP), the National Energy Transition Roadmap (NETR) and the National Semiconductor Strategy.

“Investment is not only of high value but should provide economic spillover to local companies, especially small and medium enterprises (SMEs). With the continued trade tensions, global companies tend to choose countries with stable ecosystems, economic openness, and strong free trade agreements (FTAs),“ he explained.

He noted that Malaysia has the advantage of having signed 16 FTAs, including the latest one with the United Arab Emirates (UAE) and that “we are also renegotiating the FTA with the European Union and South Korea.”

Challenges and opportunities

However, Tengku Zafrul warned that in the long term, the slowdown in global growth could affect demand and supply chains, emphasising the importance of ASEAN in strengthening internal trade and not being too dependent on the world’s big economies.

“ASEAN is the world’s fifth largest economic bloc with a GDP of US$3.8 trillion, but intra-ASEAN trade is still less than 25 per cent … we need to increase regional economic integration. Malaysia is also trying to diversify its export markets to other regions such as Africa and South America to reduce dependence on major economic powers,“ he added.

Addressing the US concern about technology security, Tengku Zafrul stressed that Malaysia is committed to complying with international regulations. “We need to ensure continued enforcement and discussions with the US and China to convince them that Malaysia remains a responsible trading partner. Malaysia will continue to monitor global developments and be ready to respond to any major trade policy changes….and we must be ready to take advantage of the opportunities that emerge from these challenges,“ he added.

Source: Bernama

Malaysia remains careful of US tariffs, ready to take advantage of geopolitical opportunities – Tengku Zafrul

Malaysia is on track to meet its 2025 gross domestic product (GDP) growth target despite the US-China trade war on the back of drivers that include chip demand supporting medium to long-term prospects, said Economy Minister Datuk Seri Rafizi Ramli.

He noted that key hypotheses that have driven interest in the Malaysian economy over the past year remain unchanged.

“The projection that the world is going to be more digital and AI is going to be mainstream has not changed. That means the demand for chips will go up, which will bolster Malaysia’s trade. Malaysia’s long-term plan to ensure that Malaysia plays a pivotal role in the global supply chain has not changed either,” he told reporters after the launch of the joint report by the World Bank and the Ministry of Economy titled “A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia” today.

Rafizi said the stronger ringgit over the last week indicates that investors and market participants have a positive outlook on Malaysia’s economy. “It’s (the strengthening ringgit) very much the function of the market because of the evolving and developing nature of the trade war that is happening now,” he said.

He explained that market expectations, speculation and projections will inevitably impact the ringgit’s movement.

“So, I think we have to navigate some changes and volatility. I hope it is not going to be extreme,” Rafizi said, adding that the government is monitoring the situation closely, with the Ministry of Investment, Trade and Industry (Miti) tasked with evaluating the trade war’s potential impact.

“We will take guidance from Miti on our official stance. As of now, there is no discussion on revising Malaysia’s economic growth outlook. Typically, the government’s growth forecast is finalised and shared closer to the budget unless there are drastic developments,” Rafizi said.

He opined that adjustments and volatility will be a permanent feature of the global economy as more economies become influential in the overall global supply chain.

“We will have to go through some adjustments and volatility. The question is whether it will be short- or medium-term. Eventually, the market will price in everything, provided that our fundamental growth narrative remains strong. And at the moment, I believe we still have a very strong value proposition for the world,” he said.

Meanwhile, Rafizi said the Carbon Capture, Utilisation and Storage Bill is expected to be tabled in Parliament by early March, pending final drafting and stakeholder consultations.

“The target is to be tabled in this Parliament sitting. We are going through some final drafting. We’re going through some improvements based on feedback from stakeholders. The target is to finalise and bring the Bill to Parliament in this session.”

The joint report highlights the importance of building on progress to ensure that everyone benefits. Strengthening access to quality education, healthcare and employment opportunities will be key to ensuring that economic prosperity is shared by all.

“To address inequality, we have to adopt a holistic assessment, early intervention on opportunity gaps, and commit to creating a dynamic labour market,” said Rafizi.

Source: The Sun

Malaysia on track to meet 2025 GDP growth target despite US-China trade war: Rafizi

Malaysia’s proactive approach in establishing ties with all countries, in line with the government’s neutral and independent stance, will help to create investment opportunities while boosting exports.

Prime Minister Datuk Seri Anwar Ibrahim said although the nation’s investment ties are seen to lean towards China, Brazil, South Africa, Canada and Mexico, its trade relations with the United States (US) continue as usual.

“The US remains an important trading partner. Trade with the US stands at 11 per cent, which is quite high, and Malaysia’s exports to the US are still close to 13 per cent,” he said during the Minister’s Question Time in the Dewan Rakyat today.

He said this in reply to a question from Lim Guan Eng (PH-Bagan) on Malaysia’s stance regarding the global trade war sparked by the US President’s tariff policies.

Lim also asked whether Malaysia would align itself with China, Canada, and Mexico, as well as financial and fiscal measures that would be taken to protect the Malaysian economy and its people from the impact of these tariffs.

“We cannot act too hastily as there are uncertainties in some of the decisions announced by the US President Donald Trump.

“For instance, there was a policy change just yesterday when he decided to delay the implementation of tariffs on Canada and Mexico. So, within a month, further policy shifts could happen, or the decision may be maintained,” Anwar said.

Aside from expanding its trade network, the Prime Minister stressed that the government must also ensure domestic growth initiatives are strengthened, in line with policies that have been announced, including the industrial, energy transition, and digital transformation plans.

The commitment of government-linked investment companies (GLICs) to inject RM120 billion into national development projects over five years is also expected to help drive economic growth.

“This will be complemented by several fiscal measures, including subsidy rationalisation, which will ensure sustainable growth and keep inflation under control,” he added.

Source: Bernama

Malaysia’s global ties to boost investments, exports – PM Anwar

The overall progress of the East Coast Rail Link (ECRL) project, spanning four states — Pahang, Kelantan, Terengganu and Selangor — has reached 78.5% as of last month, said Second Finance Minister Datuk Seri Amir Hamzah Azizan.

He said this promising progress aligns with the scheduled completion of the first phase of the ECRL, running from Kota Bharu, Kelantan, to the Gombak Integrated Terminal, Selangor, by December 2026, with operations expected to begin in January 2027.

Amir Hamzah added that the second phase, connecting Gombak to Port Klang, is set to be completed by December 2027 and fully operational by January 2028, based on the project’s current developments.

“Alhamdulillah, this is no small project — it is a major endeavour involving many stakeholders working together. I congratulate MRL [Malaysia Rail Link Sdn Bhd] and CCC-ECRL [China Communications Construction] for their collaboration in achieving the current progress.

“This project will boost the economy of the East Coast, acting as a catalyst to attract more investments to the region while creating numerous job opportunities in Kelantan, Terengganu and Pahang,” he said.

He was speaking at a press conference after launching the SDG Sukuk Impact Reporting for the ECRL project at the Section 10 ECRL project site on Tuesday. Also present was MRL chief executive officer Datuk Seri Darwis Abdul Razak.

Regarding the Sukuk report, Amir Hamzah highlighted in his speech that it serves as proof of MRL’s commitment to ensuring sustainable, high-impact infrastructure development for long-term benefits.

By leveraging the Sukuk SDG Impact Report, he said the ECRL project not only enhances connectivity but also aligns with the United Nations’ Sustainable Development Goals (SDGs), advancing environmental, social and economic objectives for the country.

“The report highlights the significant progress made and the measurable impacts of this landmark initiative. In April 2024, MRL achieved a historic milestone by becoming the first Ministry of Finance [MOF] company and the first in the transport industry to establish an SDG Sukuk programme.

“This groundbreaking effort raised RM4.5 billion in 2024 to fund the ECRL, a transformative project connecting Kelantan, Terengganu and Pahang to the Greater Klang Valley as well as enhancing connectivity and unlocking vast economic opportunities across these regions,” he said.

He said the SDG Sukuk issuance attracted overwhelming interest from investors and achieved the tightest spread for a government-guaranteed Sukuk in Malaysia’s history.

“This success earned prestigious accolades, including Best Islamic Finance Deal in Southeast Asia and Best Green Sukuk 2024 by Alpha Southeast Asia, further reinforcing Malaysia’s global leadership in Islamic finance and sustainable development,” he added.

Meanwhile, Darwis stated that the ECRL project is on track for completion as scheduled, with construction progressing smoothly across 361 active work sites involving more than 18,000 personnel along the ECRL route.

“With this highly encouraging construction momentum, MRL is optimistic about commencing ECRL operations in two years, aligning with the aspirations of the public and the business community in providing seamless transportation for passengers and cargo.

“As such, East Coast residents living in the Klang Valley will only need to wait for two more Syawals before they can take the ECRL home to celebrate Hari Raya Aidilfitri in 2027,” he said.

Source: Bernama

ECRL progress surpasses 78%, first phase to start operations in 2027

Malaysia’s export diversification is crucial as its manufacturing sector continues to face headwinds from subdued global growth prospects, geopolitical tensions and trade policy risks, economists said. 

TA Securities, in a note, cautioned that any slowdown in China’s trade flows could have indirect repercussions for Malaysia, given that China is one of its largest export destinations.

Moreover, the ongoing shift in global supply chains, coupled with geopolitical uncertainties, may introduce further volatility in trade performance, the house said. 

“Against this backdrop, Malaysia’s ability to diversify its export markets and enhance trade resilience will be crucial in sustaining economic growth targets for the year,” it added. 

The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers index (PMI) edged up slightly month-on-month to 48.7 in January 2025, compared with 48.6 in December 2024, but marked the eighth consecutive month of output contraction on a year-on-year basis.

PublicInvest Research noted that subdued global growth prospects and escalating geopolitical tensions could weigh on export-oriented industries. Additionally, heightened uncertainty surrounding global trade policies — particularly in light of US President Donald Trump’s policy stance — may further pressure industrial activity.

“Despite these challenges, steady domestic consumption, fiscal measures supporting investment, and a gradual recovery in key trading partners may help mitigate external headwinds,” the house said in a note.

BIMB Securities, meanwhile, highlighted that Trump’s renewed trade war — especially tariffs on Mexico, Canada, and China — could negatively impact Malaysia’s export-driven industries, particularly those deeply integrated into China-centric supply chains. 

Sectors such as electronics, automotive components, and machinery, which rely heavily on cross-border supply networks, are especially vulnerable, the house said.

Nevertheless, it said Malaysia could benefit from the “China+1” strategy, as companies seek to diversify their production bases away from China. This could drive investment inflows into the country, strengthening its manufacturing capabilities and trade competitiveness, said the research house. 

“Despite ongoing challenges, Malaysia’s manufacturing sector has the potential for stabilisation in 2025, supported by sustained electronics exports and increased foreign direct investment under the China+1 strategy. Additionally, domestic policy support under Budget 2025 is expected to stimulate demand and provide a buffer against external headwinds,” said BIMB. 

Source: The Edge Malaysia

Export diversification crucial for Malaysian manufacturers as US tariffs, China slowdown weigh, say economists

The Johor-Singapore Special Economic Zone (JS-SEZ) is still in a strong position to attract foreign investment despite the global economic uncertainties sparked by the United States’ recent tariff imposition, says Lee Ting Han.

The Johor investment, trade, consumer affairs and human resources committee chairman said this is because the JS-SEZ is a platform for foreign investors to tap into the growing Asean market.

“There is uncertainty following the United States’ move to impose high tariffs on goods from Canada, Mexico and China. In my personal view, this could impact the global supply chain.

“However, it will not immediately impact the JS-SEZ as the zone is a window of opportunity for foreign investors to get into the Asean region, which has a population of almost 700 million,” he said yesterday.

On Saturday, US President Donald Trump slapped 25% tariffs on imports to the US from Mexico and Canada, and 10% for goods coming from China.

Analysts have warned that the move risks igniting a trade war and cause global economic uncertainty as the US and China are the world’s two largest economies.

Despite these concerns, Lee said the JS-SEZ continues to attract investments from western firms, including those based in the US.

He added that recently, Microsoft acquired several plots of land from two developers in Johor to expand its data centres.

“The investments made by Microsoft showed that there are tech companies not only from United States or other western countries, but also from within Asia setting up their data centres here,” he said.

According to business magazine Forbes, the plot, located within the Nusa Cemerlang Industrial Park, was purchased by Microsoft Payments Malaysia, the company’s data centre arm, for RM119.8mil.

This is the company’s fourth land acquisition in Johor, which has become a hub for data centres.Lee said the US’ tariffs could inadvertently benefit Malaysia.

“Malaysia, in particular the JS-SEZ, could be at an advantage but it is still too early to tell as we need to know what kind of goods that are being imposed with high tariffs,” he said.

He also said that the state government was following the current situation closely so that they would have a clearer picture of what is expected to happen.

“The Johor government will continue to play its role in attracting more foreign investments into the state through the JS-SEZ.

“This is because our target still remains, to attract high-quality investments that will generate thousands of high-income jobs for locals,” he said.

Source: The Star

JS-SEZ still strong despite uncertainty over US tariffs

His Majesty Sultan Ibrahim, King of Malaysia commended the government’s efforts to boost foreign investment in high-tech and digital sectors.

At the same time, His Majesty called for the immediate strengthening of digital infrastructure and the economy, enhanced cybersecurity, and the adoption of the latest technology.

“The government service system must also be upgraded with more efficient and transparent digital technology to combat corruption, abuse of power, and the bureaucratic ‘red tape’ that burdens the people,“ His Majesty said.

Sultan Ibrahim said this during the opening ceremony of the First Meeting of the Fourth Session of the 15th Parliament for the Dewan Rakyat and Dewan Negara here today.

His Majesty also urged the government to continue improving the country’s economic performance.

Expressing satisfaction with Malaysia’s economic and trade growth, he emphasised that the benefits should be enjoyed by everyone and not just certain groups.

“I am grateful to see economic progress, including stronger domestic growth, rising investments, a recovering ringgit, and a low unemployment rate.

“Last year, the gross domestic product grew by 5.9 per cent across various sectors, while total trade surpassed RM2 trillion in the first nine months,” he said.

Sultan Ibrahim also called for continued efforts to empower Bumiputera economic participation, with the support and collaborations with government-linked companies .

The Dewan Rakyat session will run for 18 days starting today, while the Dewan Negara session will begin on March 3 and last for 13 days.

Source: Bernama

King lauds govt’s efforts to boost foreign investment in tech, digital sectors

Uzbekistan’s President Shavkat Mirziyoyev will visit Malaysia on February 4 to 5 for an official trip, according to the Uzbekistan National News Agency (UzA).

The visit, made at the invitation of Malaysian Prime Minister Datuk Seri Anwar Ibrahim, will focus on further strengthening relations between Uzbekistan and Malaysia.

Mirziyoyev’s itinerary is packed with high-level engagements, including bilateral talks with Anwar, meetings with top executives of leading Malaysian companies, and participation in a joint business forum.

The agenda of the high-level talks will focus on deepening bilateral relations and expanding practical cooperation, particularly in key areas such as trade, investment, innovation, technological collaboration, petrochemicals, electronics, green energy, smart agriculture, and tourism.

Both leaders are expected to place special emphasis on enhancing cultural and humanitarian exchanges.

In addition, the leaders will discuss key issues of international politics and regional cooperation.

Following the visit, a joint statement is expected to be adopted, along with a comprehensive package of agreements, aimed at strengthening the full-scale partnership between the two countries.

Leading up to the visit, a series of preparatory events is being held in Malaysia, including a meeting of leading analytical and research institutions, presentations showcasing Uzbekistan’s tourism potential and cultural heritage and a forum of rectors from top universities in both countries. 

Source: Bernama

Uzbek President to embark on official visit to Malaysia

AI is projected to contribute RM530b to the economy by 2030, further strengthening the country’s commitment to lead in digital growth 

MALAYSIA is positioning itself as South-East Asia’s (SE Asia) artificial intelligence (AI) hub, aiming to make AI a cornerstone of its economy by 2030. 

With initiatives like the National AI Roadmap and investments in AI start-ups, research hubs and digital transformation policies, the government is driving AI adoption across key sectors such as healthcare, education and agriculture. 

AI is projected to contribute approximately US$115 billion (RM530 billion) to Malaysia’s economy in five years, according to the Digital Ministry, further strengthening the country’s commitment to leading in digital growth. 

In line with these efforts, RM10 million has been allocated for the National AI Office (NAIO) and RM50 million for AI education under Budget 2025. 

These funds aim to enhance AI coordination, develop regulatory frameworks and create a skilled workforce to drive AI advancements, ensuring Malaysia’s leadership in the region. 

High-value Activities 

Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang said a key initiative supporting AI’s integration various sectors is the introduction of the Strategic Investment Fund, which amounts to RM1 billion. 

“The fund is intended to foster high-value activities in AI, robotics and the Internet of Things, stimulating local talent development and nurturing homegrown innovation. This investment was announced during the prime minister’s speech in the Dewan Rakyat on Oct 18. 

“The Strategic Investment Fund will help Malaysia leapfrog in AI and innovation, making sure local entrepreneurs and tech companies thrive,” he told The Malaysian Reserve (TMR). 

Chang also mentioned that Malaysia has been successful in attracting foreign investments, including major commitments from tech giants. 

A US$2 billion data centre project from Google LLC and a US$2.2 billion investment by Microsoft Corp in cloud and AI services are set to significantly boost the country’s digital infrastructure. 

He noted that these projects are expected to create jobs and enhance Malaysia’s global competitiveness. 

Chang said the government is equally focused on fostering innovation among AI start-ups and research hubs. 

The Strategic Investment Fund and the National Start-up Single Window platform, developed by MOSTI, provide crucial financial support and simplify the process for start-ups to access resources. 

“We are creating a supportive ecosystem for innovation, connecting research institutions, universities and the private sector to accelerate the development of AI technologies,” he said. 

The integration of AI in key sectors is also a priority. The National AI Roadmap identifies agriculture, education, healthcare, smart cities, transport and public services as strategic areas for AI adoption. 

In agriculture, AI-powered tools are being introduced to enhance precision farming, while in education, personalised learning solutions are being developed. 

“AI is transforming how we approach every sector, from farming to healthcare, making Malaysia an example of how AI can drive sustainable growth,” Chang said. 

The government is also tackling the challenges posed by AI adoption, especially workforce displacement and the need for skill development. 

Malaysia’s upskilling and reskilling programmes are designed to equip workers with the skills necessary for emerging digital and AI-driven industries. 

Collaboration between MOSTI, the Human Resources Ministry and agencies like Malaysia Digital Economy Corp (MDEC) is crucial to the success of these programmes. 

“We are preparing our workforce to take on new roles in AI, data analytics and other tech-focused sectors, ensuring they are not left behind in this digital revolution,” Chang said. 

In addition, the government is integrating AI and digital literacy into national education, with universities and technical schools offering dedicated programmes in AI and automation. 

Education reforms are a key part of the strategy to ensure the next generation is ready for the AI-driven future. 

Malaysia’s AI strategy is designed to address workforce displacement and skill development through a multi-pronged approach that includes upskilling programmes, educational reforms, industry-specific support and public-private collaborations. 

The aim is not only to protect workers from the negative impacts of AI but also to equip them with the skills and opportunities needed to thrive in the evolving digital economy. 

Challenges and Opportunities 

A Mimos Bhd researcher said Malaysia’s AI strategy, as outlined in the nation’s AI Roadmap, revolves around several key components designed to strengthen the country’s position in the rapidly evolving digital landscape. 

“The roadmap focuses on developing strong policies to guide AI development, boosting research and innovation, building a skilled AI workforce, and promoting AI awareness and use across all sectors,” the researcher told TMR. 

One of the industries benefitting from this strategic focus is healthcare, where AI is improving diagnostics, streamlining operations and even supporting remote patient care. 

The researcher added that in healthcare, AI’s potential to enhance precision medicine and predictive analytics is immense. 

In manufacturing, AI’s role in improving efficiency and driving growth has been transformative. 

It enables more accurate quality inspections, predictive maintenance and reduces costs, which ultimately boosts industry competitiveness. 

The transport sector, too, has seen AI’s impact, particularly in enhancing traffic management and optimising energy consumption. 

AI is crucial for supporting smart cities and sustainable development goals, such as waste reduction and energy efficiency. 

The researcher added that enhancing the country’s digital infrastructure to support AI applications is crucial for ensuring reliable connectivity. 

Malaysia also faces significant challenges in becoming a leader in AI, with a major hurdle being the shortage of skilled talent. 

To tackle this, efforts to reskill the workforce and attract global experts are key. 

“Expanding industry-based AI education programmes will also be a critical component of overcoming this challenge,” he said. 

Another significant concern is the need for stronger infrastructure to support AI training and data processing. 

While data centres are being developed, there is a need for more robust infrastructure to fully leverage AI’s potential. 

Data privacy is another crucial issue, with the Personal Data Protection Act playing an essential role in ensuring responsible AI use. 

Additionally, promoting ethical AI practices, reducing bias and ensuring transparency are critical for fair and trustworthy AI adoption. 

Bridging Financing Gaps 

Malaysia Debt Ventures Bhd (MDV) CEO Rizal Fauzi said Malaysia’s AI ecosystem offers substantial opportunities across multiple sectors, including healthcare innovation, agritech (agriculture technology), fintech (financial technology), regtech (regulatory technology), green technology and smart manufacturing. 

He explained that these sectors leverage AI-driven solutions to address industry challenges and unlock efficiencies, creating a fertile ground for innovation and investment. 

He also mentioned the government’s initiatives to support AI development, such as the National AI Roadmap and targeted incentives. These efforts include the AI Sandbox Programme, which fosters the development of start-ups and aims to establish 900 AI companies and train 13,000 AI talents by 2026.

He noted that the AI Talent Roadmap 2024-2030 focuses on building a skilled workforce to enhance Malaysia’s global competitiveness. 

Moreover, Malaysia holds a competitive position in SE Asia, supported by a strong foundation of talent, robust infrastructure and stable policies. 

“Malaysia’s unique advantage lies in its balanced approach to affordability, scalability and market-readiness. 

“This positioning not only attracts investments but also fosters collaboration, reinforcing Malaysia’s role as a key player in AI innovation and adoption,” he told TMR. 

He touched upon the challenges Malaysia faces compared to regional players like Singapore and Indonesia, such as talent retention and access to international capital. 

However, these gaps are being addressed through national efforts to scale research and development initiatives, and strengthen the talent pipeline. 

“MDV plays a pivotal role in bridging financing gaps for start-ups, further solidifying Malaysia’s AI ecosystem and enhancing its regional standing,” he added. 

Overcoming Misconceptions 

Industrial digital intelligence Agytek Sdn Bhd CFO David Xiong noted that the government is attracting a huge amount of investments into AI-related industries, providing opportunities for start-ups to participate in this surge of growth. 

He said initiatives such as NAIO have been created in a timely manner to support and consolidate these efforts. 

One of the biggest challenges AI start-ups face in Malaysia, he said, is the perception and understanding of AI among the general population and businesses. 

“During our client engagement, we have come across many cases where customers have, to a degree, an inaccurate understanding of AI. 

“Simpler technology such as rule-based approaches are being perceived as AI, which is really not. This creates additional challenges for companies like ours, which are going for real machine learning capabilities, as we are effectively competing in an unfair style,” he said. 

Furthermore, Xiong explained one of the biggest resource requirements for AI is graphics processing unit (GPU) computing power, and Malaysia is uniquely positioned to become a GPU hotspot in the upcoming months and years, as proven already by the huge amount of investment pouring into this sector. 

However, more importantly, Malaysia has one of the most diverse economic structures within ASEAN, which provides training grounds in practically every single application scenario, fostering a more innovative social culture. 

Xiong said Malaysia’s position as a hub within ASEAN gives it a significant edge for AI start-ups. 

“As a hub in ASEAN, businesses proven in Malaysia are well-positioned to venture into other regional countries, which gives Malaysia an edge as the place of choice for AI start-ups,” he added. 

Talent and Infrastructure 

New Digital Sdn Bhd CEO and founder Nhu Nguyen said the company is committed to supporting Malaysia’s ambition to become a regional AI hub by 2025, focusing on research and development to create cutting-edge AI solutions. 

In terms of collaboration, Nguyen explained that New Digital is actively engaging with various sectors and government bodies. 

New Digital is a tech agency mainly focused on ticketing solutions for industries such as fleet, transport, hotels and tours, as well as virtual event platforms. On top of that, it offers AI solutions for customer service and sales inquiries. 

Nguyen said the company is keen to contribute to Malaysia’s digital transformation by integrating AI in these sectors. 

In terms of scaling operations and attracting talent, she said New Digital is taking proactive steps to ensure sustainable growth. 

“We invest in AI infrastructure and collaborate with universities to nurture local talent through special programmes. 

“We also partner data experts and AI academies to drive innovation together. The company is working with government initiatives such as MDEC’s Malaysia Digital Status Network and promoting Malaysia as a strategic tech hub,” she added.

Source: The Malaysian Reserve

Malaysia lays roadmap for regional AI hub

The Forest City Special Financial Zone (FC-SFZ) is seeing a surge in interest from prominent companies, signalling its promising trajectory as a burgeoning financial hub. 

Eleven companies, including eight family offices from Malaysia, Singapore, Indonesia and Taiwan are keen to establish operations within FC-SFZ. 

Among them are logistics giant Tiong Nam Logistics Holdings, developer AME Elite Consortium Bhd and investment firm Wan Li Holdings.

Asset management heavyweights CIMB Group Holdings Bhd and China’s Galaxy Securities Co Ltd have expressed intentions to set up operations in the area.

The SFZ’s strategic focus includes sectors such as banking, financial services, logistics and global services.

Malaysia’s banking giant Malayan Banking Bhd is not hesitating to jump on the bandwagon, aiming to establish itself as the preferred bank for both local and international businesses in the zone.

Maybank president and group chief executive officer Datuk Khairussaleh Ramli said the bank is committed to becoming the preferred financial institution for Malaysia-Singapore financial transactions and solutions, which aims to foster economic integration and bolster regional growth.

Khairussaleh added that Maybank is set to facilitate cross-border trade, fast-track loans and offer seamless financial solutions.

Maybank is also enhancing digital payments and will open a “phygital” branch in Forest City.

With 37 branches in Johor and 18 in Singapore, Maybank has mobilised RM104.89 billion in sustainable finance since 2021. Its shares rose six sen to RM10.16, valuing the bank at RM122.6 billion.

 Meanwhile, Johor Menteri Besar Datuk Onn Hafiz Ghazi said to bolster FC-SFZ’s appeal, the federal government has introduced a suite of incentives, including a zero per cent tax rate for single-family offices, a concessionary corporate tax rate between zero and five per cent, and a special individual income tax rate of 15 per cent for knowledge workers and Malaysians opting to work in Forest City.

These measures aim to attract international capital and position Forest City as a preferred investment destination. 

Onn Hafiz told Business Times the SFZ will focus on two key sectors mainly banking and financial services and logistics, global services and relocation services.

Banking and financial services, including investments, insurance, financial technology (FinTech), regulatory technology (RegTech) and insurance technology (InsurTech)for both conventional and Islamic banking, will be based on Forest City Island 1.

Logistics, global services, and relocation services will be cantered on Forest City’s mainland, supported by customer support, product development, marketing, finance, and accounting.

The ambitious megaproject Forest City, is a joint venture between Esplanade Danga 88, an affiliate of state government subsidiary Kumpulan Prasarana Rakyat Johor, through a joint venture, Country Garden Holding Ltd (CGPV), with CGPV holding 60 per cent of shares, while KPRJ holds the other 40 per cent.

CGPV deputy president Syarul Izam Sarifudi said Forest City is poised for further economic growth in this year, following its designation as a tax-free zone last November.

Its SFZ, duty-free status and integration with the Johor-Singapore Special Economic Zone (JS-SEZ) are expected to boost Johor’s economy and attract global investors.

To engage stakeholders, Forest City has launched investor seminars, including a recent session on Malaysia’s only zero per cent tax single-family office. 

He said pre-bookings for commercial units in Cerulean Bay have also begun, featuring flexible office and retail spaces.

Interest from financial institutions has grown, with a Johor delegation, led by Onn Hafiz’s recent visit to Dubai’s International Financial Centre to gain insights. 

Syarul said investors, particularly in artificial intelligence (AI), expressed interest in setting up in the SFZ.

Infrastructure upgrades are also in progress. 

Forest City plans to expand transport links, including new weekend and holiday bus services with Causeway Link to Kuala Lumpur, as well as improvements to cycle lanes and connectivity with Johor Baru’s transit system.

“With strategic incentives and global positioning, Forest City is emerging as a key investment hub in Asean, driving job creation and economic expansion,” he said.

Despite these advancements, industry experts have identified areas requiring further enhancement to attract a broader spectrum of investors.

Key concerns include the need for improved infrastructure, enhanced security measures, streamlined customs procedures, currency harmonisation, and the facilitation of free capital movement. 

The Malaysian Investment Development Authority reported that connectivity between Malaysia namely Johor and Singapore needed to be further enhanced. 

Singapore head of global banking at Maybank Gregory Seow said a clear navigation between state and federal approvals is crucial for seamless project execution. 

“Forest City is supposed to be the administrative headquarters, and the authorities are proposing a financial hub. But connectivity is required,” Seow was reported saying. 

“Some projects require just Johor state’s approval, some may need federal approval. That complicates the issue. I hope they have navigated those issues back in April. Prime Minister Datuk Seri Anwar Ibrahim also demonstrated his support. Banks like ourselves want to be the go-to bank,” Seow said.

“One of the projects that requires federal approval is Johor’s Autonomous Rapid Transit (ATS) system which is required to link commuters from the Johor-Singapore Rapid Transit System (RTS) that is operational from end-2026.

“More importantly, our Singapore-based clients have signalled interest. Last month, I had a chairman-level lunch with a very established conglomerate in Hong Kong.

“They signalled their interest in obtaining a piece of land in Johor and getting contracts. 

“The Chinese companies are debating whether they should go to the Eastern Economic Corridor in Thailand, or here,” Seow said.

“Hopefully we are not let down by the political agenda,” he added.

In September 2024, Finance Minister II Datuk Seri Amir Hamzah Azizan announced a package of incentives to make Forest City a magnet for international capital.

This included attractive rates for single-family offices, concessionary corporate and a special individual income tax rate for knowledge workers and Malaysians who choose to work in Forest City.

Source: NST

Forest City SFZ gains momentum to attract ‘giant’ investors

by IFAST RESEARCH TEAM 

Malaysia, Singapore pledge financial support to promote JS-SEZ’s development 

THE Johor-Singapore Special Economic Zone (JS-SEZ) was formalised through a memorandum of understanding in January 2024, and a formal agreement has now been signed between Malaysia and Singapore.

With increasing clarity on its development, we are confident that JS-SEZ will be instrumental in driving regional economic expansion. 

We believe it will be a transformative force for domestic economic growth and a key investment theme that investors should closely watch in the near future. 

In addition to the initially proposed six key zones, JS-SEZ now includes three additional areas: Forest City, Pengerang Integrated Petroleum Complex and Desaru. The zone covers a wide range of sectors, including business services, the digital economy, healthcare, manufacturing, energy, logistics, education, tourism, food security, financial services, aerospace, electrical and electronics, chemicals, medical devices and pharmaceuticals. These sectors build upon those previously highlighted by the Iskandar Regional Development Authority (IRDA) in the earlier phase of Iskandar Malaysia. 

Plans for implementing QR code clearance and passport-free travel to streamline cross-border movement and reduce delays at checkpoints are still under consideration. Meanwhile, the Malaysian government has confirmed various financial incentives, such as reduced corporate tax rates for companies investing in the zone and preferential personal income tax rates. Additionally, both Malaysia and Singapore have pledged financial support to promote the development of JS-SEZ. 

Poised to Become Johor’s Economic Growth Engine 

In 2023, Johor’s GDP stood at RM148.2 billion, making up about 9.6% of Malaysia’s total GDP. The manufacturing and service industries contributed nearly 80% of this figure. Through the Maju Johor 2030 economic plan, the state aims to boost its GDP to RM260 billion by 2030. This target requires an annual growth rate of 8.4% from the 2023 level, notably higher than the five-year average growth rate of 5% between 2019 to 2023. 

Nonetheless, we hold a sanguine view that the target growth rate is achievable as JS-SEZ that fosters closer collaboration between two nations could serve as an engine to boost economic growth. 

Also, we foresee increased foreign direct investment (FDI), enhanced trade opportunities and the creation of high-value jobs as key outcomes. Additionally, the focus on infrastructure development and streamlined regulatory processes will likely attract both multinational corporations and local enterprises. 

Key sectors such as aerospace, electronics, and pharmaceuticals are expected to play a significant role in achieving this goal. With the help of strategic policies and incentives, Johor hopes to foster economic growth and replicate the success of prominent special economic zones around the world. 

The strategic collaboration, supported by fiscal incentives, infrastructure development, and streamlined regulatory processes, will not only benefit Johor’s economy but also enhance the economic ties between Malaysia and Singapore. As such, these sectors’ earnings could be propelled by the greater connectivity between the two countries. 

Malaysian Banks, Construction and Property Lead as Biggest Winner

The development of JS-SEZ is expected to benefit Malaysian banks by driving demand for loans from both local businesses and multinational corporations involved in infrastructure and commercial projects. Government incentives for small and medium enterprises (SMEs) expanding in the zone could further boost SME financing. Additionally, the influx of businesses and high-net-worth individuals will create opportunities in wealth management and investment services. Overall, the heightened economic activity will enable banks to generate more non-interest income from advisory, transaction banking and cash management services. 

Focusing on public transportation will also benefit contractors involved in railway construction and solar panel installation. We believe the construction sector will be the primary beneficiary, with many local firms likely to secure more contracts, unlike projects such as Forest City, which were largely developed by Chinese companies. 

The revival of private investment, supported by key public sector initiatives, offers substantial medium-term opportunities for order book expansion in the construction sector. Despite the high-speed rail announcement being perpetually postponed until further notice, we opine the orderbook from data centres and city development-related projects may continue to boost the sector’s earnings in the next couple of years. 

The property market, especially those with significant land reserves in the southern region, is set to gain from enhanced cross-border mobility, driving increased demand for properties in the area. Additionally, the basic materials sector is expected to see a boost from these construction projects, with cement being our top pick due to its strong domestic market presence. 

Singaporean Banks, Manufacturers have New Opportunities 

Similar to Malaysian banks, we posit Singaporean banks will benefit from the development, too. Over the past five to six years, Singaporean banks have focused on regional integration of wholesale and retail banking, positioning themselves to support supply chain shifts from North Asia to ASEAN. A strategic partnership between Johor and Singapore, aimed at improving business operations, labour mobility and capital flows, could open new opportunities for banks to leverage their integrated platforms. 

Initiatives for multinationals and government-funded SME expansions in JS-SEZ are expected to drive credit demand and non-interest income through advisory services, transaction banking and cash management. Additionally, increased cross-border spending should boost credit card fee revenues, while shifting back-office operations to Johor could enhance cost-to-income ratios due to lower labour and rental expenses. 

We remain optimistic about Singaporean technology and industrial manufacturers. The zone’s cost-efficient infrastructure, improved connectivity and focus on green investments and semiconductors are expected to benefit manufacturers. Singa-pore-listed firms could gain from tax incentives by establishing production in JS-SEZ, accessing a more affordable talent pool. 

Priority sectors such as life sciences, aerospace and electronics are also likely to benefit from tax advantages and other incentives, enhancing their growth prospects. 

Key Takeaway 

We believe JS-SEZ could draw inspiration from the success of the Shenzhen SEZ. This economic cooperation between Malaysia and Singapore is poised to benefit both nations significantly. As export-oriented countries and major tourist destinations, the enhancements in trade flows and incentives provided by JS-SEZ are expected to stimulate economic activities in both nations. 

Furthermore, their relatively neutral geopolitical stance may offer a haven for companies looking to diversify their supply chains amid escalating geopolitical risks. 

Although JS-SEZ has been highly anticipated and the agreement with Singapore is now finalised, the execution part will still be crucial. Besides, the final missing puzzle — Kuala Lumpur-Singapore HSR is still undergoing discussion as the government is collecting proposals from private companies to revive the project, which could be the next game changer for JS-SEZ if it materialised. 

Source: The Malaysian Reserve

JS-SEZ: From south to regional growth, prosperity

The Ministry of Investment, Trade and Industry (Miti) needs to intensify efforts in formulating strategies to ensure the trade and investment target of RM13 billion at the World Expo 2025 in Osaka, Japan, (Expo 2025 Osaka) is achieved.

Deputy Prime Minister Datuk Seri Fadillah Yusof said this includes ensuring the signings of the memoranda of understanding lined up for 2025 at the Malaysia Pavilion are held on schedule, which could contribute to achieving the set target.

“Miti, together with the Malaysian Investment Development Authority (Mida), and especially the Malaysia External Trade Development Corporation (Matrade) as the business programme coordinator, must increase efforts in formulating strategies to ensure the nation’s success in reaching this target.

“I hope that the programmes and activities held at the Malaysia Pavilion, whether in the business or non-business categories, can help us achieve the target of attracting about 1.5 million visitors to the pavilion,” he said in a Facebook post after chairing the year’s first National Organising Committee Meeting for Malaysia’s World Expo 2025 Osaka Participation on Tuesday afternoon.

Among those present were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Communications Minister Fahmi Fadzil, and Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa.

Expo 2025 Osaka will be held for six months from April 13 to Oct 13, 2025.

Fadillah said significant progress has been achieved in terms of the Malaysia Pavilion’s procurement, with construction work reaching 86.7% completion as scheduled.

“I have high hopes for Malaysia’s participation in this expo, with the pavilion currently in the final phase of development, and our transition to preparing for operations.

“This is crucial to ensure that the Malaysia Pavilion can operate at optimum level throughout the period of the expo,” he said.

He expressed hope that this year will witness the committee members’ outstanding achievements in supporting Malaysia’s role and responsibilities as Asean chair, as well as in its participation in Expo 2025 Osaka.

Source: Bernama

MITI must intensify efforts to achieve RM13b trade and investment target at World Expo 2025 in Osaka — Fadillah

Small-cap and mid-cap Malaysian companies are poised to benefit from the development of the Johor-Singapore Special Economic Zone (JS-SEZ) over the next decade, according to Public Investment Bank Bhd (PublicInvest).

The domestic economy is projected to remain strong in 2025, bolstered by favourable fiscal reforms, increased domestic consumption fuelled by a stable labour market, and growing foreign and local direct investments.

Several industries are well-positioned to leverage these favourable conditions, PublicInvest said in a note.

The firm said that although geopolitical tensions and global economic uncertainties will challenge businesses, especially those reliant on exports, companies with growth driven by domestic demand will show more resilience.

The Malaysian and Singapore governments are committed to attract investments in 50 projects in the first five years, targeting domestic as well as global investors looking to diversify their operations given the growing geopolitical risks and trade tensions that could reshape international trade flows.

With Asia being the key engine of global economic growth and Johor-Singapore’s strategic geographical location, PublicInvest said JS-SEZ is well-positioned to capture the benefits of a fragmented trading system that would lead to greater trade flows within this region.

“While 11 high-value economic sectors have been identified, we reckon companies like CBH Engineering Holding Bhd, UUE Holdings Bhd, Farm Price Holdings Bhd, SDS Group Bhd, and Feytech Holdings Bhd could potentially benefit from the spillover effects of JS-SEZ’s development.

“All three companies are based in Johor and involved in the economic sectors identified, such as data centres, manufacturing, and food security,” the firm said in a note.

Given the trend of a declining fertility rate, it stated that the demand for assisted reproductive services is expected to increase while the rising occurrence of infectious diseases and health awareness will continue to drive demand for condoms.

PublicInvest also expects the renewable energy as well as bioenergy industry to expand further given the introduction of the National Energy Transition Roadmap that should benefit BM Greentech Bhd.

As domestic consumption growth is likely to sustain given the stability of the labour market and the recovery in tourism activities, the firm said IGB Commercial REIT’s portfolio of strategically located office buildings should continue to maintain its high occupancy rates.

“It is estimated to deliver an attractive yield of seven percent, anchored by its 10 investment-grade office buildings in the highly successful Mid Valley City and KLCC area.

Meanwhile, to navigate the increasing protectionist policies from the West, PublicInvest expects more efforts will be made to strengthen alliances through trade agreements within the region, such as Asean and BRICS.

“Southeast Asia’s growth potential could be further unlocked given its strategic geographical location, with Malaysia likely to be favoured as one of the next generation trading hubs,” it added.

Source: NST

Small and mid-cap local firms poised to benefit from JS-SEZ

Malaysia’s Asean chairmanship is poised to position the region as a global hub for investment, trade and industry, a senior minster said.

Malaysia can leverage its standing to strengthen regional economic integration and expand the bloc’s cooperation with all nations focusing on building resilience in global supply chains, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In 2024, trade with Asean market improved 6.1 per cent to RM765 billion, accounting for 26.6 per cent of Malaysia’s total trade.

As a major regional export destination, exports to Asean increased 4.2 per cent to RM437.9 billion on the back of larger exports of machinery, equipment and parts, manufactures of metal as well as petroleum products.

The top three export destinations within Asean were Singapore, Thailand and Indonesia, accounting for 78.6 per cent of Malaysia’s total exports to the region.

Meanwhile, imports from Asean picked up by 8.9 per cent to RM327.17 billion with main imports being electrical and electronics products products, petroleum products as well as chemicals and chemical products.

Tengku Zafrul emphasised the pivotal role of Asean in Malaysia’s trade strategy, citing regional agreements as essential tools for navigating global economic uncertainties.

This includes Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that enhance regional supply chains and expand market access for Malaysian businesses, providing a solid foundation for continued growth.

“Despite our prominent position within Asean, Malaysia’s neutral foreign policy stance help strengthens its trade relations with all trading nations. We believe that this neutrality will help mitigate any negative impacts of global trade uncertainties,” he said at a briefing today on Malaysia’s 2024 trade performance which was announced recently.

Within Southeast Asia, Tengku Zafrul said the nation stands to gain substantial benefits from its current position as a manufacturing and supply chain hub that makes it well-placed to capitalise from trade diversions and increased foreign investments.

Competitiveness will be further strengthened through digital economy including cross border e-commerce, whereby technologies and digital platforms provide local businesses with access to new opportunities in e-commerce, digital services and cross-border data flows.

Tengku Zafrul noted that the emerging markets continue to be a key focus with trade expansion efforts directed toward Africa, the Middle East and Latin America.

He said the efforts are evident in the growth recorded in 2024 in trade with African nations, such as Angola (59.3 per cent), Ethiopia (56.4 per cent), Egypt (53.6 per cent), Algeria (27.9 per cent) and Libya (19.7 per cent).

Malaysia is also diversifying within Asean, targeting rapidly urbanising cities like Medan (Northern Sumatra, Indonesia), Surabaya (Eastern Java, Indonesia), Da Nang (Central Vietnam), Hai Phong (Northern Vietnam) and Can Tho (Southern Vietnam).

This diversification strategy will be key for Malaysia to sustain its strong trade performance in the coming years.

Recognising the potential new challenges, including geopolitical risks and natural disasters, Tengku Zaful said the ministry and and its trade promotion agency Matrade committed at meeting their goals, despite changes in economic trends like Internet of Things, artificial intelligence and electric vehicles.

“Malaysia’s competitiveness will be further strengthened through digital economy including cross border e-commerce. Technologies and digital platforms provide Malaysian businesses with access to new opportunities in e-commerce, digital services and cross-border data flows,” he added.

Source: NST

Malaysia set to position Asean as global hub for investment, trade & industry

Malaysia plans to focus on strategic engagements with free trade agreement (FTA) partners and emerging markets this year in an effort to increase its exports, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the economies of emerging markets have been growing rapidly over the years, including regions such as Africa, the Middle East and Latin America.

In addition, the minister said, the Malaysia External Trade Development Corp (Matrade) is actively pursuing opportunities with non-traditional markets that are also Malaysia’s FTA partners such as Peru and Mexico.

“The benefits of these FTAs include zero-rate tariffs, and preferential market access will make Malaysian products and services more attractive and competitive,” he said in a pre-recorded keynote speech at an event titled “Malaysia’s 2024 trade performance: Navigating Trade Winds of 2025” on Monday.

Zafrul said that last year, the Investment, Trade and Industry Ministry (Miti) and its agencies were part of Prime Minister Datuk Seri Anwar Ibrahim’s delegation in his visits to Egypt and BRICS member states such as Brazil and India to strengthen trade relations.

“In the last two weeks, I was with the prime minister in the United Arab Emirates (UAE) for the Middle East market engagement,” he said, adding that the country continues to pursue more bilateral trade agreements.

On Jan 14, Malaysia signed the Comprehensive Economic Partnership Agreement (CEPA) with the UAE.

“This is Malaysia’s first FTA with a Gulf Cooperation Council (GCC) member and it has actually set a new record for the nation as the fastest FTA to be concluded — in just 11 months,” he noted.

Zafrul said Miti is also intensifying its outreach to second tier cities in China and Indonesia as part of the diversification strategy, focusing on cities such as Chongqing, Chengdu, Nanjing, Medan, Surabaya and Pontianak.

“These cities are currently undergoing rapid urbanisation and economic growth with fast-growing populations that will create huge demands for products and services,” he said.

As 2025 Asean chair, Zafrul said Malaysia aims to position the region as a hub for trade and investment by deepening economic cooperation and enhancing supply chain resilience.

“Agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are vital tools for mitigating global trade disruptions.

“These frameworks enhance regional supply chains and expand market access for Malaysian businesses, providing a solid foundation for continued growth,” he added.

Meanwhile, Matrade chairman Datuk Seri Reezal Merican Naina Merican said Malaysia achieved its highest-ever trade value in 2024 — RM2.88 trillion, a 9.2% increase from 2023.

Exports grew by 5.7% to RM1.508 trillion, marking the second time the figure surpassed RM1.5 trillion. The first time was in 2022 when exports hit RM1.550 trillion.

Imports increased by 13.2% to RM1.371 trillion, contributing to a trade surplus of RM136.88 billion — the highest trade value ever recorded in the nation’s history.

Reezal Merican said the positive momentum achieved in 2024 will serve as a catalyst to drive Matrade further in elevating Malaysia’s trade performance this year.

He revealed some of Matrade’s initiatives and programmes for 2025.

Among others, it will participate in at least 24 trade fairs, including Gulfood, Paris Air Show and Semicon SEA.

He said Matrade will have an interactive and intelligent platform — Madani digital trade — for its partners, exporters, importers and customers.

Furthermore, it will launch a Women in Export Conference to recognise women entrepreneurs and empower them to thrive in local and global markets.

Reezal Merican also disclosed that for the first time, Matrade will host the National Export Awards Day aimed at honouring the outstanding contributions of the nation’s exporters. 

Source: Bernama

Malaysia eyeing trade growth with FTA partners, emerging markets this year — Zafrul