Prime Minister Datuk Seri Anwar Ibrahim’s brief working visit to Japan, which ended yesterday, has strengthened the trade and investment ties between Malaysia and the Land of the Rising Sun.

At the conclusion of his visit, Anwar told the Malaysian media that the visit had also succeeded in securing new potential investments worth RM1.45 billion and potential exports valued at RM550 million from seven major Japanese companies.

“We welcome investments from Japanese companies in the electrical and electronics, robotics, chemicals and petrochemicals, digital economy, renewable energy, and green technology sectors,” he said.

The visit, undertaken to participate in the 29th International Conference on the Future of Asia organised by Nikkei Inc., followed the elevation of bilateral relations with Japan to a Comprehensive Strategic Partnership in December 2023.

Anwar’s bilateral meeting with his Japanese counterpart Fumio Kishida also strengthens Kuala Lumpur-Tokyo cooperation in energy transition, renewable energy, and carbon capture, utilisation, and storage.

Japan has also contributed 400 million yen (RM12.03 million) of Official Security Assistance (OSA) grant aid.

“We look forward to the July 2024 technical visit by the Japan International Cooperation Agency (JICA), which is comprised of experts and industry players in non-radioactive rare earth elements,” said Anwar.

In terms of education, the Prime Minister said student registration at the University of Tsukuba branch campus in Malaysia will begin in September this year, while Universiti Teknologi Petronas (UTP) and Universiti Teknikal Malaysia (UteM) Melaka are currently in talks to collaborate with Waseda University.

The setting up of the University of Tsukuba branch campus in Malaysia is historic, being the first branch campus of a Japanese public university to be established in the country.

Accompanying the Prime Minister on this trip were Foreign Affairs Minister Datuk Seri Mohamad Hasan, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

PM Anwar’s brief visit to Japan strengthens relations for trade, investment

Malaysia’s trade with Japan is expected to increase this year, bolstered by investments, particularly in the semiconductor and renewable energy sectors, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“Last year, trade with Japan stood at around RM35 billion. One-third of this involves liquefied natural gas,” he told Malaysian reporters here.

Tengku Zafrul said Malaysia has been providing Japan with a secure supply of energy and is now focusing on renewable energy.

Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years.

During Prime Minister Anwar Ibrahim’s working visit to Japan from May 22 to 24, 2024, Malaysia secured RM1.45 billion in potential investments and RM550 million in potential exports from meetings with Japanese companies.

The meetings involved six companies already present in Malaysia and one company looking to invest in the country.

Tengku Zafrul said one of the companies planning to invest in Malaysia is from the semiconductor industry. The company’s name will be announced later, pending necessary approvals.

The other companies expressed intentions to commit to new investments in Malaysia, particularly in new and renewable energies, with interest in Sabah and Sarawak.

“Investments in renewable energy could reach RM40 to RM50 billion over a ten-year period.

“Many companies in the electrical and electronics products, especially the semiconductor industry, want green energy supplies and see potential in Sarawak,” he said.

He also mentioned that the government received tax incentive requests from Japanese companies and will conduct a cost-benefit analysis before deciding on any incentives for the sectors.

“These are new sectors, so they need support in terms of subsidies and tax incentives. The government will carry out a cost-benefit analysis before deciding on any incentives for the sectors,” he added.

As of 2023, a total of 2,810 manufacturing projects with Japanese participation have been implemented, with total investments valued at RM102.11 billion (US$29.67 billion), creating 344,120 job opportunities.

Source: Bernama

Semiconductor, renewable energy investments to drive Malaysia-Japan trade surge in 2024

The Ministry of Investment, Trade and Industry (Miti) has secured RM1.45 billion of potential investments, and RM550 million of potential exports, from meetings with Japanese companies, in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s working visit to Japan from Wednesday to Friday.

Several of the projects will be implemented within a three-year time horizon, and will help Malaysia create a strong ecosystem for semiconductors, renewable energy and green technology, according to Miti. A few of these projects are key towards achieving Malaysia’s carbon-neutrality target by 2050.

The companies involved were IHI Corp, Nisshin Oillio Group, Tokuyama Corp, Sumitomo Corp, Eneos Holdings, Mitsubishi Corp and Tokyo Gas.

“We are pleased to have secured RM1.45 billion of potential investments, and RM550 million of potential exports, from this short but fruitful trip,” Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement.

“We welcome expansion projects announced by existing Japanese investors across various strategic sectors, namely semiconductors, chemicals, petrochemicals, renewable energy, oil and gas, as well as palm oil and palm oil-based products,” he added.

The meetings in Tokyo were led by Anwar, who is also the finance minister, accompanied by Tengku Zafrul.

The minister said such projects reflect Japanese investors’ continued confidence in Malaysia’s industrial landscape, which is undergoing key transformative initiatives outlined in the New Industrial Master Plan 2030 and the National Energy Transition Roadmap.

Japan was Malaysia’s fourth largest trading partner in 2023, and the fourth largest investor in the manufacturing sector. As of 2023, a total of 2,810 manufacturing projects with Japanese participation had been implemented, with total investments valued at RM102.11 billion, creating 344,120 job opportunities.

The minister said with emphasis on sustainable development and high-end manufacturing activities, Miti and its agencies — the Malaysian Investment Development Authority (Mida) and Malaysia External Trade Development Corp (Matrade) — will continue to intensify their efforts with Japan to spur more mutually beneficial partnerships.

He added that Japanese investors are welcome to invest in promoted sectors, such as semiconductors, aerospace, chemicals and petrochemicals, the digital economy, electrical and electronics, pharmaceuticals, green technology and renewable energy.

Tengku Zafrul was also in Tokyo, Japan, to fulfil his panellist role in the Nikkei Forum 2024, in a session themed “Circular Economy to Support Asian Growth”.

Source: Bernama

MITI secures RM1.45b potential investments, RM550m potential exports from Japan

Sarawak is committed to work together with China towards a more sustainable development in fields such as digital economy, renewable energy, smart city, and technological innovation, said Deputy Premier Datuk Awang Tengah Ali Hasan.

He said this is in line with Sarawak’s mission to become a developed and high-income region by 2030, driven by data and innovation.

“These collaborations will pave the way for a greener and more resilient future as well as to enhance economic growth. In recent years, our collaboration further expanded to emerging technology such as digital economy, green technology and sustainable development.

“For example, Huawei has collaborated with the Sarawak government to enhance digital connectivity and to support digital transformation in fostering innovation and entrepreneurship.

“We hope that the bilateral relationship continues to grow stronger, which anticipates being one of the key driving forces for sustained growth and prosperity,” he said in his keynote address at the Malaysia-China Summit (MCS) 2024: Networking Engagement Series in Sarawak, at a leading hotel here today.

Awang Tengah – also Minister of International Trade, Industry and Investment – noted that Sarawak’s economic ties with China are driven by strong trade, investment and collaborative projects across sectors.

“China is one of Sarawak’s key trading partners. In 2023, Sarawak’s exports to China such as liquefied natural gas, edible oils and basic metal was worth RM18.8 billion, while imports such as machinery, manufactured goods and consumer products amounted to RM9.9 billion.

“In fact, the economic collaboration between China and Sarawak continues to grow with China’s involvement in hydropower development, namely Bakun, Murum and Baleh, which support our goal to be the Asean powerhouse.”

He said the participation of China in the Autonomous Rapid Transit (ART) project in Sarawak by bringing in expertise and technology promoted modern, sustainable and efficient urban transportation system.

“The ART system is another collaborative project between Sarawak and China, which has led to a significant stride to position Sarawak as the leader to adopt cutting edge green mobility,” he added.

He said investments from China have significant impact on the economic growth and development in this region, enhancing industrial capabilities while fostering sustainable development and innovation.

“To-date, China has invested more than RM19.4 billion, mainly in solar, steel and wood-based manufacturing projects in Sarawak which have led to the creation of more than 10,000 jobs for the local population and spin-offs for the local economy,” he said.

He added that last year, his ministry had organised MINTREDConnect in Guangzhou and Beijing aimed to enhance bilateral economic relations as well as explore new business and investment opportunities.

Awang Tengah said Sarawak’s partnership with China also extended beyond economic collaboration where cultural and educational exchanges between both regions have enriched societies as well as fostered greater friendship and mutual understanding between the people.

“Kuching and Sibu have established sister city relationships with several cities in China, such as Dali, Kunming, Chongzhou and Dongcheng. These initiatives have provided a platform for new trade and investment opportunities besides boosting the tourism industry.”

On MCS 2024, Awang Tengah said the summit focused on innovation and economic development, highlighting the role of Malaysia as a gateway to Asean and beyond, which fostered cross-border collaboration.

“In this regard, Sarawak can be a key player in Asean due to our strategic location, abundant natural resources and commitment to sustainable development.

“The Malaysia-China Summit 2024 will be a platform for Sarawak to further strengthen socio-economic collaboration and foster meaningful partnership with China,” he said.

Also present were Deputy International Trade, Industry and Investment Minister Datuk Dr Malcolm Mussen Lamoh, China’s Consul-General in Kuching Xing Weiping, Malaysia External Trade Development Corporation board member Dato Mohammad Medan Abdullah, and Qube Integrated Malaysia Sdn Bhd executive chairman Richard Teo.

Source: Borneo Post

Awg Tengah: China collab will drive Sarawak towards developed, high-income status

Prime Minister Datuk Seri Anwar Ibrahim has reassured the bosses of some of Japan’s largest companies that Malaysia remains the best investment destination.

Anwar, who led a Malaysian delegation for a series of one-on-one engagements with business leaders, also said he emphasised Malaysia’s stability and conducive business environment.

Foreign Minister Datuk Seri Mohamad Hasan and Investment, Trade and Industry Minister Tengku Datuk Seri Tengku Zafrul Tengku Abdul Aziz were also part of the delegation.

Among the companies involved were IHI Corporation, Nisshin OilliO Group Ltd., Tokuyama Corporation, Sumitomo Corporation, ENEOS, Mitsubishi Corporation, and Tokyo Gas.

“The investment opportunities in Malaysia discussed included the oil and gas industry, renewable energy, hydrogen and ammonia, the halal industry, and semiconductors.

“I stressed that the commitments of these companies should be closely followed up to ensure that investments in this country can be realised within the stipulated time,” he said in a social media post.

Anwar said engagements with investors will continue to provide significant opportunities for Malaysia.

During his last visit in December, the Anwar-led Malaysian delegation secured potential investments worth RM6.56 billion.

Anwar’s three-day work visit to Japan comes less than a week after he led delegations to Qatar, Kyrgyz Republic, Kazakhstan and Uzbekistan which secured over RM1 billion in potential exports.

Earlier today, Anwar delivered a keynote address at the Nikkei Forum 29th Future of Asia and held a bilateral meeting with Japanese Prime Minister Fumio Kishida.

Tomorrow, Anwar will deliver a speech in honour of the late Professor Toshihiko Izutsu at Keio University and have engagements with the media.

He will then perform Friday prayers at the Tokyo Camii Mosque before departing for Malaysia.

Source: NST

Anwar, Japanese business leaders discuss investment opportunities

China has invested more than RM19.4 billion, mainly in solar, steel and wood-based manufacturing projects in Sarawak, leading to the creation of more than 10,000 jobs for the local population and spin-offs for the local economy.

Sarawak Premier Tan Sri Abang Johari Tun Openg said the investments from the Great Wall nation made a significant impact on the economic growth and development in this region.

“These investments have enhanced industrial capabilities while fostering sustainable development and innovation,” he said in his speech in conjunction with the Malaysia-China Summit 2024: Networking Engagement Series in Sarawak here today.

His speech was read by Sarawak Deputy Premier and International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hassan.

Abang Johari said China is one of Sarawak’s key trading partners, with strong trade, investment and collaborative projects across sectors.

He said that in 2023, Sarawak’s exports to China, namely liquefied natural gas, edible oils and basic metal, were worth RM18.8 billion, while imports, namely machinery, manufactured goods and consumer products, amounted to RM9.9 billion.

“In fact, the economic collaboration between China and Sarawak continue to grow with China’s involvement in hydropower development, namely Bakun, Murum and Baleh, which supports our goal to be the Asean powerhouse,” he added.

Source: Bernama

China’s investments in Sarawak reach RM19.4 billion, creating over 10,000 jobs – Abang Johari

Malaysia is a safe haven for investments, Prime Minister Datuk Seri Anwar Ibrahim said today.

In his keynote address at the Nikkei Forum 29th Future of Asia, Anwar said investors particularly those in the manufacturing sector, were looking for a safe haven amid brewing tensions around the world.

This is exacerbated by trade restrictions especially where microchips are concerned.

“I dare say that Malaysia fits the bill (of a safe haven), thanks to our stability, skilled labour force, and our economic and geopolitical nonalignment,”

“The proof is in the numbers. In 2023, the state of Penang, Malaysia’s semiconductor hub, attracted US$13 billion in Foreign Direct Investment, exceeding the total for the previous seven years combined,” he said in his speech at the forum.

The annual Nikkei Forum brings together the movers and shakers from Asia Pacific to discuss the region’s role on the global stage.

The theme of this year’s Nikkei Forum is “Asian Leadership in an Uncertain World”.

Anwar said economic policymaking in the 2020s cannot be divorced from three global megatrends, namely geopolitics, digitalisation and climate change.

“Hence, Malaysia has recently unveiled three key policy frameworks to provide greater certainty, clarity and transparency on the future of the economy.”

The first of these policy frameworks is the Madani Economy framework, which outlines strategies to drive sustainable and inclusive development.

“The second major policy that Malaysia has introduced is the New Industrial Master Plan 2030, which represents a whole-of-government approach to industrial policy.”

The success of this plan, Anwar said, will bring Malaysia a step-closer to achieving high-income status by the end of this decade.

“Finally, the National Energy Transition Roadmap is Malaysia’s comprehensive strategy to ensure the country meets its commitment to achieving net-zero emissions as early as 2050.”

This entails implementing initiatives in energy efficiency, renewable energy, hydrogen, green infrastructure and carbon capture, utilisation and storage.

“These strategic blueprints are indicative of Malaysia’s role in building Asian leadership in the economic, digital and sustainability domains.”

In his speech, Anwar also paid tribute to Japan.

“Etched in our memory is the humble beginnings in Penang during the 1970s, when companies, such as Clarion and Hitachi, were part of the ‘Eight Samurai’ that is the first wave of electrical and electronic manufacturing investment into the country.

“Active Japanese FDI has been a crucial factor in the success of Malaysia’s semiconductor industry, and this is true even today, with recent large-scale investments coming in from Kaga Electronics and Ferrotec.”

Malaysia’s relationship with Japan has grown from strength to strength, said Anwar.

In December, Anwar and Japanese Prime Minister Fumio Kishida upgraded bilateral ties to a Comprehensive Strategic Partnership.

The two countries also agreed to cooperate in maritime security.

“Japan and Malaysia share a common vision for Asia’s future based on stability, connectivity and cooperation in support of a rules-based order, and I am confident that our relations will only grow from strength to strength from now on.”

This is Anwar’s first keynote address at the event as Prime Minister.

Source: NST

PM: Malaysia a safe haven for investors

Prime Minister Datuk Seri Anwar Ibrahim’s second visit to Japan in six months will be brief but packed with engagements with captains of industry in the world’s fourth-largest economy.

The working trip comes less than a week after the Anwar-led Malaysian delegations to Qatar, Kyrgyz Republic, Kazakhstan and Uzbekistan secured over RM1 billion in potential exports.

Anwar arrived at Haneda International Airport here yesterday, accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Human Resources Minister Steven Sim.

He was received by Japan Parliamentary Vice-Minister of Foreign Affairs Yasushi Hosaka and Japanese ambassador to Malay-sia Katsuhiko Takahashi.

Today, he will attend a series of programmes involving Japanese government and business leaders.

His work visit begins with a keynote address at the Nikkei Forum 29th Future of Asia.

The annual event brings together the movers and shakers from Asia Pacific to discuss the region’s role on the global stage.

It will be the first time Anwar will speak at the forum in his capacity as prime minister.

Other leaders speaking at the event include Thai Prime Minister Srettha Thavisin, Singapore Deputy Prime Minister Gan Kim Yong, and Vietnamese Deputy Prime Minister Le Minh Khai.

Anwar will then hold one-on-one meetings with Japanese captains of industry.

These include leaders of some of Japan’s largest companies, including Sumitomo Corp, IHI Corp, Nisshin OilliO Group Ltd, ENEOS Corp, Tokoyuma Corp, Mitsubishi Corp and Tokyo Gas Co Ltd.

At 2pm, Anwar will have a bilateral meeting with his Japanese counterpart, Fumio Kishida, at Naikaku Sori Daijin Kantei, the office of the Prime Minister of Japan.

Anwar and Kishida, who oversaw the elevation of bilateral ties to a Comprehensive Strategic Partnership in December, are expected to discuss a host of issues.

These include collaboration on the economy, trade investment, the halal industry, energy transition, the environment, defence and security, capacity building and higher education.

The two leaders will also discuss regional and international issues, including the conflict in Gaza, the war in Ukraine, the South China Sea and the Korean Peninsula.

Anwar will then have one-to-one meetings with Japanese business leaders.

In the evening, he is scheduled to have a short meeting with Srettha and later attend the Nikkei Forum 29th Future of Asia conference dinner.

The meetings with Kishida and the Japanese businesses are expected to see the continuance of strong Malaysia-Japanese bilateral and economic ties.

During his last visit in December, the Anwar-led Malaysian delegation secured potential investments worth RM6.56 billion.

It also comes at a time when 50.2 per cent of Japanese companies in Malaysia are considering expanding their businesses within the next two years, according to the Japan External Trade Organisation’s survey in January.

Tomorrow, Anwar will deliver a speech in honour of the late Professor Toshihiko Izutsu at Keio University in Tokyo.

Izutsu, an Islamic studies and comparative religion scholar, is renowned for translating the Quran into Japanese in 1958.

Anwar will hold engagements with members of the Japan National Press Club and the international press.

This will be followed by a session with the Malaysian press here.

He will then perform Friday prayers at the Tokyo Camii Mosque before departing for Malaysia.

Source: NST

PM to meet chiefs of top firms in Japan

The country’s investment record is expected to jump further this year compared to 2023, evidenced by potential foreign investments totalling RM76.1 billion that have been successfully attracted as of March 2024, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the amount was recorded through traditional investors such as the United States and China, and included investments from Australia worth RM24.5 billion as well as Germany and France (RM46 billion).

“This year’s record will be increased even more with the participation of Saudi Arabia, the United Arab Emirates (UAE) and Qatar.

“So these investments will guarantee increased employment and comfort for the people,” he said in a national address broadcast live today.

In 2023, Malaysia managed to record total investments of RM329.46 billion, including foreign investments of RM188.37 billion and domestic investments of RM141.09 billion.

Anwar said the MADANI Government always makes every effort to ensure that all national investments are realised on time. He cited the progress of previously approved investments that are on the right track, including 75.5 per cent of approved manufacturing projects from 2021 to 2023 that have been completed or are being implemented.

In addition, the value of early stage construction work is also high, which is RM31.5 billion in 2023 compared to RM26.3 billion in 2022.

“The result of these investments symbolises the new confidence of investors in driving the country’s economy at the moment, guided by the MADANI Economy,” he said.

Anwar added that Malaysia is already considered a major investment centre for microcomputer chips that attracts tens of billions (of ringgit) of investments from major companies from Europe, the United States and China.

He emphasised that the business ecosystem should support new industries that are competitive, capable of growing and of high value so that investments can be increased in the local economy.

“The local industry (needs) to be given added value, especially the semiconductor sector which is gaining a place in the eyes of the world,” he added.

Source: Bernama

Country’s investment record to jump further this year – PM Anwar

Malaysia serves as the launching pad and gateway for foreign investors in the Asean region including companies from Sweden for businesses, said Swedish ambassador to Malaysia Dr Joachim Bergstrom.

He said Malaysia continues to attract Swedish companies due to its political stability, good standard of living and widespread use of English.

“The ease of doing business in Malaysia ranks very high for Swedish companies. It’s relatively affordable to operate here, and also a launching pad towards other economies in the Asean region, so using Malaysia as a gateway to operate wider is very attractive.

“Penang also is a fantastic place and has an interesting fabric of culture, legacy, food, literacy and very attractive investment area for European industries,” he told reporters after attending the cocktail reception in conjunction with the Regional Meeting of Swedish Ambassadors to Asean Countries here, last night.

Bergstrom noted Penang and Sweeden shared long-standing bilateral ties in various areas, including sustainability, green transition, digitalisation, transportation and manufacturing.

“We have a number of Swedish companies in the region here in Penang and Kulim, Kedah. It is really an area in Malaysia that is attracting more investment and interest from the Swedish industry,” he added.

Meanwhile, Penang Chief Minister Chow Kon Yeow hopes to further increase cooperation with Scandinavian countries, especially Sweden, to boost their investments in Malaysia and Southeast Asia.

“I am happy that Penang is able to attract investments from all over the world, including Sweden and the Nordic countries. For the Malaysian government, regardless of whether it is at the national or state level, we have many things to work on, particularly in talent development,” he said.

There are currently over 80 active Swedish companies based in Malaysia, with close to 9,000 employees working with local counterparts to increase access to green energy.

Swedish investments into Malaysia amount to US$500 million (RM2.34 billion), making Malaysia one of the largest receivers of Swedish investment.

Source: Bernama

Malaysia gateway to attract Swedish companies, says ambassador Joachim Bergstrom

Malaysia may gain from the recent tariff hike by the United States on imports from China, which could divert trade and increase foreign direct investment.

Hong Leong Investment Bank Sdn Bhd (HLIB Research) pointed out that imports from Malaysia to the US grew at a five-year compound annual growth rate of 7.7 per cent (using 2017 as the base year) during the US enacting tariffs on China under Donald Trump’s administration in 2018, as opposed to 1.2 per cent from China and 6.7 per cent from the rest of the world.

Following the start of the US-China trade war, approved foreign investments into Malaysia increased significantly; from RM54 billion in 2017 to RM188 billion in 2023, this amount increased by 3.5 times.

“From another perspective, prior to the trade war (i.e., from 2013–2017), the foreign composition of total approved investments was 26 per cent; however, this has risen to 59 per cent over the trade war period (2018–2023). 

“We believe these trends are in part a reflection of Malaysia benefiting from the “China+1 strategy,” which has seen a revival, fuelled by the trade war and Covid-19 pandemic,” it said in a note. 

Last week, the US introduced or increased tariffs on US$18 billion of imports from China. The firm stated this sum was relatively small as it represented four per cent of US imports from China and six per cent of existing tariffed Chinese imports, which is far less than the previous ones imposed by Trump, which stood between US$34 and $300 billion. 

“Given the relatively small quantum of this recent tariff decision, the market reaction was unsurprisingly muted. Political observers interpret this recent tariff move as politically motivated, given the impending US presidential elections in November, rather than a precursor to another episode of “tariff tantrums.”. 

“Nevertheless, this serves as a useful reminder that the US-China trade war is very much still ongoing.” 

To recap, when the US-China trade war broke out and escalated in 2018–2019, the FTSE Bursa Malaysia KLCI lost 10.4 per cent over those two years, though domestic factors such as the unprecedented 14th general election outcome may have also played a role. 

Meanwhile,the firm highlighted that tariffs on medical and surgical rubber gloves imported from China will be increased from the current 7.5 per cent to 25 per cent effective 2026. 

“While at first glance this appears positive for Malaysian glove makers, we believe that Chinese glove makers would likely choose to lower their pre-tariff pricing in order to remain competitive. 

“For the more immediate term, we reckon that Chinese players will start to gradually shift their focus from the US to Europe and Asia; this will lead to US glove imports being diverted from China to Malaysia.”

Tariffs on certain steel and aluminium imports from China will also see an increase from 0–7.5 per cent to 25 per cent this year. We expect the impact to be relatively neutral for the aluminium market and Press Metal Aluminium Holdings Bhd, as China is a net aluminium importer and China only made up five per cent  of US aluminium imports in the fourth quarter of 2023 (Q4 2023).

In the property sector, the ongoing US-China trade war has prompted companies to embark on the “China+1 strategy,” with some of these “plus ones” coming to Southeast Asia, including Malaysia. 

Tariffs on solar cells, assembled or not assembled into modules, imported from China will be raised from 25 per cent to 50 per cent starting in 2024. 

“Wood Mackenzie estimates that the US imported less than 0.1 per cent of its solar modules directly from China in Q4 2023. 

“Therefore, we believe the impact of this latest tariff hike on direct imports from China to be mild, if any.”

It added tariffs on semiconductors imported from China, which will increase from 25 per cent to 50 per cent in 2025. The first wave of tariff imposition (back in 2018–2019) led to capacity relocation, on- or friend-shoring manufacturing pants, and diversifying supply chain redundancy. As such, this latest tariff move should lead to continued acceleration in such trends.

Source: NST

Malaysia can benefit from trade diversions, increase in investments

The Sabah government has set various plans in motion and implemented initiatives, particularly through the Hala Tuju Sabah Maju Jaya (SMJ) development plan, to make the state more attractive for investors, said Chief Minister Datuk Seri Hajiji Noor.

He said the Sabah government’s commitment to address various challenges including infrastructure and basic amenities in order to spur economic growth was evident by the substantial allocation of RM2.63 billion for infrastructure development programmes and public amenities in the state budget this year.

Hajiji said this in his speech text which was read by state Finance Minister Datuk Seri Masidi Manjun at the Sabah Investors Forum here today.

The forum organised by Sabah Development Bank Bhd with investors-coordination support from the RHB Investment Bank was timely as it would provide the platform for investors to engage with the state government on key recent and upcoming developments that will spur the growth of Sabah and how the state government will facilitate and support these developments.

Hajiji said RM679.85 million was allocated to manage and address the critical issue of clean water supply while RM430.84 million was channelled to infrastructure maintenance.

Another significant action plan, he said, was enhancing the road connectivity and the state government is committed to completing the Pan Borneo Highway project as well as adding other road linkages outside the project, some of which are in the construction phase.

To help transition the state’s dependence on non-renewable energy sources to renewable energy, the Chief Minister said Sabah has launched the Sabah Energy Roadmap and Master Plan 2040.

“To improve hydro capacity, we launched the Ulu Padas hydroelectric project last December which can contribute some 187.5MW and also has the potential to supply some 6,000 million litres daily of water. The capacity of existing water treatment plants has also been increased,” he added.

Source: Bernama

Sabah govt sets various plans, initiatives to attract investors

Malaysia’s neutral position in the ongoing US-China trade war enables it to capitalise on trade diversions and attract foreign direct investments (FDIs), said Hong Leong Investment Bank Bhd (HLIB).

The research firm said trade wars are generally detrimental to the global economy.

“Imposing tariffs causes trade volume to decline as countries move away from globalisation and lean towards self-sufficiency. Trade links are also redrawn as countries switch from hostile trade partners to friendlier ones,” it said in a note.

When former US President Donald Trump implemented his barrage of tariffs on Chinese goods, HLIB noted that US imports from Malaysia grew at a 5-year compound annual growth rate of 7.7 per cent (2017 as a base) versus 1.2 per cent from China and 6.7 per cent from the world.

“Approved foreign investments into Malaysia saw a significant boost after the US-China trade war began; it swelled 3.5 times to RM188 billion in 2023 (2017: RM54 billion),” it explained.

From another perspective, from 2013 to 2017, the foreign composition of total approved investments was 26 per cent, rising to 59 per cent over the trade war period between 2018 and 2023.

These trends partially reflect Malaysia benefitting from the China+1 strategy where businesses avoid investing in China only, it said.

Last week, the US increased tariffs on US$18 billion of Chinese imports, with a potential impact on gloves as tariffs on medical and surgical rubber gloves imported from China rise to 25 per cent effective 2026 versus the current 7.5 per cent.

This appears positive for Malaysian glove makers, but the research firm believes Chinese glove makers will likely drop their pre-tariff pricing at the expense of profit margins to remain competitive.

“For the more immediate term until 2026, we reckon Chinese players will gradually shift their focus from the US to Europe and Asia, diverting US glove imports from China to Malaysia, it said.

Meanwhile, tariffs on semiconductors imported from China will rise to 50 per cent in 2025 versus 25 per cent.

The 2018-2019 first wave of tariff imposition led to capacity relocation, friend-shoring manufacturing with companies re-allocating production and sourcing away from unreliable, geopolitical rivals and diversifying of supply chain.

This latest tariff move should accelerate such trends. Nevertheless, China is the largest consumer of semiconductors, buying more than 50 per cent of chips manufactured globally, it said.

Source: Bernama

US-China trade war opens opportunities for Malaysia — HLIB

The Madani government’s success in attracting investments last year, which rose 23 per cent to a historic high of RM329.5 billion, will create thousands of new jobs, including high-skilled jobs, for the people and raise their per capita income in the process.

This is based on 5,101 projects approved in 2023, which would generate a staggering 127,000 much-needed new jobs, especially for youths coming out of schools, colleges, and universities.

An encouraging factor is that 57.2 per cent or more than half of the investments constitute foreign direct investments, clearly proving that Malaysia continues to be an attractive destination despite stiff regional competition, thanks to well-tailored investment policies.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai lauded the government’s economic management measures, which enabled Malaysia to lure significant foreign direct investments (FDIs) into the manufacturing sector.

These included investments from renowned multinational companies in high-technology industries with established manufacturing plants here, as well as those companies expanding their operations in the country, creating numerous job opportunities for locals.

“Government policies and development plans targeting to transform Malaysia into a high-income economy identified the manufacturing sector as a key game changer for growth leading to various initiatives to lure investments and boost job creation in the sector,” he told Bernama.

For 2024, the government expects a minimum eight to 10 per cent growth in approved investments from last year.

So far this year, Malaysia has secured US$2.2 billion (RM10.5 billion) in investments from American multinational technology giant Microsoft, which has committed to empowering the country’s technology with cloud and artificial intelligence (AI).

The zest to continue creating jobs is evidenced by the Madani government ramping up efforts to this end with the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).

Under the seven-year plan until 2030, NIMP would provide employment for 3.3 million people by creating high-skilled jobs as the country advances towards higher value-added activities and improvements in automation as well as technological advancements.

As for the NETR, its flagship catalyst projects covering six energy transition levers — energy efficiency (EE), renewable energy (RE), hydrogen, bioenergy, green mobility, and carbon capture, utilisation and storage (CCUS) — are expected to attract investments of more than RM25 billion.

In the process, it would create 23,000 job opportunities and reduce greenhouse gas emissions by more than 10,000 gigagrams of carbon dioxide equivalent annually.

FMM’s Soh said the manufacturing sector’s job creation has evolved significantly over the years due to a combination of factors, including technological advancements, shifts in global trade dynamics and business-friendly government policies.

Manufacturing companies in Malaysia also play an integral role in global supply chains, which, again, has led to job growth as manufacturers supply components and parts to major global players.

Malaysian Economic Association deputy president Professor Dr Yeah Kim Leng said Malaysia’s share of skilled jobs should be increased to 30 per cent or higher by 2030 from the current 25.1 per cent, as the greater the proportion of a skilled workforce, the more prosperous the economy.

He reckoned that a quicker increase in skilled jobs would reflect a quicker pace of structural upgrading and a shift to higher-value-added activities, which would have greater spillovers to the economy through increased consumption and investment spending.

He said that with Malaysia’s GDP growth projected at four to five per cent per annum over the medium term and population increases estimated at around one per cent, the real income per capita growth is forecast at three to four per cent annually.

“However, Malaysia should aim for a ‘high case’ scenario of 5.5-6.5 per cent GDP growth for the remaining period to 2030.

“At this rate, the country will be able to attain high-income status before the end of the period and achieve a majority of the United Nations 2030 Sustainable Development Goals,” he said.

Yeah, said the nation saw a reduction in low-skilled jobs by four per cent to 1.11 million in the first quarter of 2024 from the same quarter in the previous year, which augurs well for the economy to move to higher-skilled jobs.

Putra Business School economic analyst associate professor Dr Ahmed Razman Abdul Latiff said that while automation and AI have the potential to improve efficiency and productivity, they also raise concerns about job displacement.

“Certain jobs may become obsolete due to automation, requiring workers to upskill or reskill to remain employable.

However, automation can also create new job roles, particularly in areas that require human creativity, empathy, and problem-solving skills,” he said.

Ahmed Razman said job creation and income per capita are closely linked; as more jobs are created, the overall income per capita tends to increase, reflecting a higher standard of living.

“However, the quality of jobs created, including wages and benefits, also impacts income per capita. Low-paying or unstable jobs may not contribute significantly to income growth.

“Initiatives by the government to increase the minimum wage as well as introducing progressive wages are indicative of the government’s seriousness in ensuring the continuous increment of average salaries as well as the quality of life of the workers,” he said.

Source: Bernama

Madani govt’s policies to drive job creation, income growth, say industry experts

Malaysia views Kazakhstan as its strategic partner in building the interlinkages between Central Asia and Southeast Asia, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

At the same time, the minister extended a warm invitation to companies from Kazakhstan to use Malaysia as a base to expand globally, leveraging on the country’s strategic position as a gateway to Asean. 

Zafrul said Kazakhstan has not only been Malaysia’s top trading partner among Central Asian countries for many years, but both nations also share values and mutual dedication to institutional reforms to boost competitiveness and economic resiliency.

According to him, Kazakhstan President Kassym-Jomart Tokayev’s new economic model, founded on principles of fairness, inclusiveness and pragmatism, stresses the pivotal role of the manufacturing sector in achieving economic self-sufficiency, reflecting the country’s commitment to deep and comprehensive socio-economic transformations. 

“Malaysia is keen to work with Kazakhstan in your endeavour to transform the economy through the sharing of our experiences, industrial cooperation, new investments by Malaysian companies in strategic areas in Kazakhstan as well as deepening trade linkages between our countries. 

“At the same time, I would encourage our business leaders to explore opportunities for collaboration either here in Kazakhstan or in Malaysia,” Zafrul said in his remarks during the Kazakhstan-Malaysia Investment Roundtable here on Friday.

Prime Minister Datuk Seri Anwar Ibrahim and his Kazakh counterpart Olzhas Bektenov were present at the session.

Zafrul added that Malaysia and Kazakhstan have established a Joint Trade Committee (JTC) and the last JTC, which was hosted by Malaysia in 2017, has agreed to facilitate greater cooperation in the areas of halal industry, Islamic finance, tourism, renewable energy, oil and gas, and investment cooperation.

“I look forward to the next JTC meeting to set the direction for our cooperation agenda,” he said.

Also accompanying the prime minister on his two-day official visit to Kazakhstan that ended Friday were Foreign Minister Datuk Seri Mohamad Hasan; Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing; and Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar; as well as senior officials from various ministries and agencies.

Kazakhstan, the ninth largest country in the world, has a population of about 20 million people, with more than 70% being Muslim.

The country is bordered by Russia to the north, the Caspian Sea to the south-west, Turkmenistan, Uzbekistan and the Kyrgyz Republic to the south and China to the east.

Astana’s main export is oil, followed by natural gas and other commodities. It is also a major wheat producer.

Source: Bernama

Zafrul: Malaysia sees Kazakhstan as strategic partner in bridging Central, SE Asia

Malaysia and Uzbekistan have agreed to explore opportunities for cooperation in the petrochemicals sector and clean green energy solutions, said Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Uzbekistan President Shavkat Mirziyoyev.

The Uzbek side has expressed a keen interest in collaborating with Petronas, particularly through the methanol-to-olefins (MTO) and derivatives project, as well as in the green hydrogen and associated derivates production, including green ammonia, they said in a joint statement.

“Both sides welcomed Petronas’s potential contribution to the training of Uzbekistan personnel in the oil and gas sector,” the statement said.

The Uzbek side also noted that Malaysia is one of the largest centres of Islamic finance in the world and expressed its readiness to provide necessary assistance to Malaysian commercial banks in active participation in the financial market of Uzbekistan to establish mutual cooperation in the field of Islamic finance.

“Malaysia took note of the interest and is ready to engage with Uzbekistan on the development of Islamic finance ecosystem in Uzbekistan. The leaders confirmed their determination to enhance and strengthen framework of bilateral treaty-based cooperation through signing of new long-term documents in investment, law enforcement, education, innovation, customs and other areas of mutual interest,” the statement said.

Earlier, Anwar paid a courtesy call on Mirziyoyev and held a meeting with the president.

During the one-hour meeting, the two leaders discussed relations between Malaysia and Uzbekistan as well as exploring potential areas of cooperation.

Earlier, the special aircraft carrying Anwar, who was flying in from Kazakhstan, landed at the Tashkent International Airport at 2.15pm local time.

Uzbekistan is the last stop of Anwar’s official visit to three Central Asian countries. He had earlier visited the Kyrgyz Republic and Kazakhstan. 

Source: Bernama

Malaysia, Uzbekistan to explore cooperation in petrochemicals sector, says PM Anwar

THE Malaysian economy is expected to continue its growth trajectory this year. 

As Malaysia’s GDP forecast for 2024 projects a growth rate of 4% to 5%, key sectors such as technology and tourism are poised to significantly contribute to the nation’s economic resilience and expansion, despite ongoing global challenges like weaker external demand and geopolitical tensions. 

Last Friday, Bank Negara Malaysia (BNM) announced a GDP of 4.2% for the first quarter of 2024 (1Q24), underpinned by stronger private expenditure and a positive turnaround in exports. 

BNM Governor Datuk Shaik Abdul Rasheed Abdul Ghaffour said exports turned around to record positive growth after three consecutive quarters of contraction, particularly from electrical and electronics (E&E) exports which gradually improved in tandem with the global tech upcycle while non-E&E exports (mainly machineries, equipment and construction-related materials) remained robust given continued demand. 

“Upside risks include greater spillovers from the global technology upcycle and more robust tourism activity. 

“In addition, faster implementation of existing and new investment projects will also boost growth,” he said during a press conference on the 1Q24 GDP announcement at BNM last Friday. 

Tech Sector Spurs Economic Growth

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tech industry, especially the outsourced semiconductor assembly and test, continues to be a major growth driver. 

“The tech sector has historically been pivotal, but with the advent of smart technologies requiring extensive microchip applications, Malaysia’s role in the global supply chain is increasingly crucial,” he told The Malaysia Reserve (TMR). 

Meanwhile, Dr Shankaran Nambiar of the Malaysian Institute of Economic Research emphasised the minimal impact of global challenges on Malaysia due to strategic economic adjustments. 

“The China+1 policy may work to our advantage, driving more investments into the country. 

“Although global demand is not robust, a tech upcycle driven by demands in memory and non-automotive chips and new technologies like generative artificial intelligence is expected,” he said. 

Sunway University economics professor Dr Yeah Kim Leng also highlighted the significant opportunities arising from global supply chain reconfigurations due to US-China trade tensions. 

“Malaysia is benefiting from investments as companies diversify their production bases and supply chains. 

“The tech upcycles, driven by the widespread use of chips in consumer electronics and industrial products, positions Malay- sia advantageously for sustained growth in the tech sector,” he said. 

He added that areas like Penang, the Kulim High Technology Park, and the Johor-Singapore Special Economic Zone are witnessing significant investment inflows, enhancing their economic prospects. 

On the impact of rapidly implemented investment projects, Afzanizam said the construction sector had seen remarkable growth. 

“From a growth of 3.6% previously to a robust 11.9% in the first quarter alone, the sector’s progress has positive ramifications across manufacturing and services, including demand for materials like cement and steel, as well as professional services,” he said. 

Robust Growth in Tourism

On the other hand, Tourism Selangor CEO Azrul Shah Mohamad reported significant gains in the state’s tourism sector. 

Selangor recorded the highest GDP in Malaysia last year, with the tourism industry contributing 25.5% to this total. 

“We welcomed 6.54 million tourists in 2023, a 46.4% increase from the previous year, driven by attractions in ecotourism, food, shopping and leisure,” he said. 

Azrul noted that the Petaling district alone attracted 4.1 million tourists, showcasing the strong demand for diverse tourism offerings. 

Meanwhile, Hulu Selangor’s tourist numbers soared by 358%, a testament to the growing appeal of ecotourism in the area. 

On potential economic headwinds, Azrul detailed strategic measures to sustain growth. 

“Despite global economic pressures, our local campaigns and targeted international marketing have kept Selangor as the most visited state. 

“We’re also investing in sustainable tourism practices and leveraging digital technologies to enhance traveller experiences and maintain stability,” he said. 

On a broader scale, Sarawak’s Tourism, Creative Industry and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah was optimistic about the sector’s recovery. 

“With Covid-19 now behind us, we’ve witnessed a significant revival in tourism, not just in Malaysia but globally. 

“Here in Sarawak, the trend is evident with an increasing number of visitors each year,” he said. 

Sarawak is on track to exceed its target of four million visitors in 2024 much earlier than anticipated, thanks to effective marketing strategies and the introduction of appealing tourism products. 

“We’re also preparing for major events like the Rainforest World Music Festival and international marathons, which have already started to attract a lot of interest,” he added. 

He also expressed confidence in navigating potential economic headwinds. 

“Challenges are part of the landscape, but with South-East Asia’s potential, along with markets like China, Korea and Japan, we are well-positioned to keep the tourism sector vibrant and thriving,” he said. 

As Malaysia navigates a complex global environment, the concerted efforts in tech and tourism underscore the country’s adaptive strategies and potential for sustained economic growth. 

Source: The Malaysian Reserve

Malaysia’s economy resilient amid global challenges

This year as Malaysia and China commemorate 50 years of diplomatic relations, enhanced collaboration, and cooperation between the two nations will prove beneficial. The potential for the strengthening of bilateral relations is most recently demonstrated by the numerous commercial agreements and memorandums of understanding (MOUs) worth billions of ringgit that both countries inked.

The history between the two goes back 600 years when China’s Admiral Zheng He visited Melaka in quest of trade and amicable ties. Since the official establishment of diplomatic relations through the signing of the Joint Communique between Malaysian Prime Minister Tun Abdul Razak and Chinese Premier Zhou En-Lai on 31 May 1974, both countries are closer than they have ever been.

The numbers speak for themselves. China has been Malaysia’s largest trading partner for 15 consecutive years and Malaysia is China’s second-largest trading partner in ASEAN. As of 2023, China held 17.1% of Malaysia’s total trade and in the first quarter of this year, trade with China expanded 3.3 per cent year-on-year to over RM112billion.

The emergence of several trends perpetuated by the global economic shift, including the reorientation of supply chains, the rapid acceleration of digitisation, and the fight against the threat of climate change, has enabled Malaysia and China to reap the benefits of collaborating closely, with both having pledged to build an even stronger strategic partnership.

In maintaining its status as a crucial trading partner of China, Malaysia has focused on expanding foreign direct investment (FDI). This is especially true in the sectors of manufacturing, infrastructure development, and digital innovation, where high-quality investments need to be prioritised, and is consistent with Malaysia’s strategic growth aspirations as outlined in the New Industrial Master Plan (NIMP).

Riding the manufacturing wave

Chinese investors are showing greater interest in exploring investment opportunities in Malaysia’s manufacturing sector, particularly in the electrical & electronics (E&E), automotive, and solar equipment manufacturing segments. As noted in the NIMP, the country is committed to the development of high-growth, high-value industries within these segments such as integrated circuit design, battery manufacturing for electric vehicles, and the development of high-end solar panels; all of which can attract greater investments from China.

Malaysia is already deeply ingrained in China’s regional value chain and is expected to continue to reap the benefits of increased post-Covid diversification and the derisking of supply chains. As supply chains are reconfigured, there is a rising likelihood that multinational manufacturing firms, including China-based manufacturers, will relocate their production facilities. Now more than ever, Malaysian businesses need to reassess the global footprints of both their supply and production networks while also capitalise on opportunities to improve their global connectedness.

Implementing further reforms to make it easier for Chinese multinationals to invest in the country while improving the ease of doing business will also be crucial. Banks will continue to be essential partners in attracting more FDI into targeted industries and accelerating the sustainable development of local businesses. This aligns with the strategies laid out in the Malaysian government’s Madani Economy Framework, the National Energy Transition Plan, and the NIMP.

Boosting infrastructure cooperation

One of the four catalytic policy enablers of the Twelfth Malaysia Plan focuses on enhancing the country’s connectivity and transport infrastructure, and FDI will be vital in supporting this development. Already, there has been significant Chinese investment in major Malaysian transport, telecoms, and energy infrastructure projects. Clearly, the way forward is to attract further investments in infrastructure that unlocks productivity and delivers growth, but that does so in a way that minimises future carbon emissions. At the same time, financing the colossal need for sustainable infrastructure is going to require all available sources of private and public sector capital.

The recent MOUs signed between Malaysia and China have the potential to advance Malaysia’s infrastructural development. Chinese businesses themselves continue to see the advantages of collaborating with local partners in Malaysia to execute projects. This presents several prospects for Malaysian businesses with distinctive competencies and the ability to carry out infrastructure projects abroad.

Further developing Malaysia into a hotspot for infrastructure investments and a location where Chinese companies are more inclined to invest would be valuable.

Embracing digital transformation

Beyond traditional sectors, attracting investments from China into diversified sectors such as the digital economy will also be important. Malaysia itself has an ambition to expand the digital economy’s contribution, with various efforts having been put in place to smooth the way for more high-quality investments in the industry. This includes the implementation of Malaysia Digital.

Digital technology investments in areas such as Artificial Intelligence, Big Data analytics, and robotics amongst others, have the potential to be a major factor in breaking new ground. To draw these kinds of investments, it will be crucial to market Malaysia as a centre for digital innovation. Fostering the development of Malaysia’s workforce by encouraging the acquisition of competencies essential for both current and future job needs is part of this.

E-commerce continues to be a vital component in the growth of the country’s digital economy. With many Chinese cross-border e-commerce platforms and sellers turning their attention to Malaysia, the country stands to benefit from greater innovation and an enhanced retail experience.

Encouraging businesses in the country to adopt new and advanced technology to fortify the industry ecosystem and attract a larger pool of Chinese investors will be advantageous. Enhancing the permeation of digitisation across industries can be achieved by allocating funds to create stronger sector ecosystems, elevating digital standards and practices, and improving the way industries respond and adapt to changing payment systems.

Closer ties make sense on both sides and HSBC is well placed to strengthen relations

As a strategic hub in ASEAN with strong economic fundamentals, Malaysia provides a range of investment opportunities to organisations from China. Along with attracting a diversified pool of international talent, the nation’s competitive business environment, growing infrastructure capabilities, and connectivity to global trade networks and supply chains offer major draws for global corporations looking to establish their regional centres in Malaysia.

With China’s increased focus on venturing outwards, the commercial opportunity for Malaysia will be significant and wide-ranging. Economic transformations such as China opening access to its financial market have also made it easier for Malaysian businesses to tap into growth opportunities there.

Boosting the level of engagement will be crucial to galvanising the relationship between both countries, and HSBC is ideally positioned to support this with our extensive portfolio of financial solutions, unrivalled international network, and capacity to effectively seize local growth opportunities.

HSBC itself has been part of China’s story for more than 150 years. We were established for the express purpose of facilitating trade and investment between China and the West. Our dedication to assisting Chinese enterprises as they grow internationally does not waiver.

For HSBC Malaysia, this year we celebrate 140 years since we opened our first branch here in Penang in 1884. Then, as now, our role has been to foster the development of trade and investment between Malaysia and the wider world.

Throughout the years, HSBC has assisted Chinese businesses in accessing the Malaysian market and supported Malaysian enterprises looking to expand into China. And today, we are as committed as ever to collaborating with the Malaysian government to attract additional FDI from China while also providing essential services for Malaysian companies looking to grow and make investments in China.

With its solid economic foundation and strategic location as an ASEAN hub, Malaysia offers Chinese organisations a variety of investment prospects. Consequently, these institutions have the potential to be a major source of funding for the country. But success will require the strengthening of trade and investment efforts across Malaysia’s strategic economic sectors. This will be fundamental to stimulating Malaysia’s economic growth and opening a plethora of opportunities for both countries in the future.

Connecting The World. 140 Years And Beyond.

Source: The Edge Malaysia

Trade and investment key to bolstering Malaysia-China relations

Johor made RM43 billion worth of investment last year, state executive councillor in charge of investment, trade, consumer affairs and human resource Lee Ting Han told the state legislative assembly today.

He said RM31 billion was from foreign direct investment (FDI) and RM12 billion from domestic direct investment (DDI) .

The manufacturing sector contributed more than RM9.4 billion in FDI with the main investors coming from Singapore, Taipei and the United States.

“The DDI for manufacturing is at RM5.1 billion and total investment for the sector stood at RM14 billion.

“The service sector contributed RM28.4 billion that consisted of RM21.5 billion in FDI coming from Singapore, China and South Korea,” he said.

Lee was replying to a question by backbencher Hahasrin Hashim (BN-Panti) who wanted to know the total FDI and DDI that Johor received for last year.

Lee, who is the Paloh assemblyman, said a total of 19,053 job opportunities were created from the 751 investment projects that have been approved.

He explained that the manufacturing sub-sectors involved electrical and electronics manufacturing, chemicals and chemical products as well as machinery and equipment.

“The sub-sectors for the service sector included information and communications technology (ICT), which involved data centres, cloud sharing services, software and system design, as well as creative and digital content,” he added.

Source: Malay Mail

Johor records RM43b in 2023 investments

Malaysia and Singapore’s strength in sustainability should be utilised to pioneer regional benchmarks to drive essential changes across Southeast Asia.

Asian Strategy & Leadership Institute (ASLI) analyst Anas Hayyan believes that Malaysian Prime Minister Datuk Seri Anwar Ibrahim and the incoming Singapore Prime Minister Lawrence Wong can kick start the sustainability agenda by establishing and championing environmental, social and governance (ESG) standards within Asean, riding on great initiatives being considered by both countries.

“Together, Singapore and Malaysia are well-positioned to advance their sustainability agendas and set a precedent for collaborative green initiatives.

”This partnership could underscore the potential of joint-ventures to not only enhance bilateral relations but also contribute significantly to global environmental goals,” he told Bernama.

Anas said the green economy presents numerous collaborative opportunities for both countries to explore further.

He highlighted the recent Memoranda of Understanding sealed between Malaysia and Singapore have set the stage for joint-ventures in developing electric vehicle infrastructure and exploring green technologies like hydrogen and carbon capture.

“These initiatives are pivotal, leveraging Singapore’s technological and financial capabilities alongside Malaysia’s rich natural resources and larger geographic area.

“This synergy not only facilitates the deployment of sustainable technologies but also supports their integration into the broader regional economy,” he added.

Anas said Wong has held the position of Finance Minister since 2021 and Deputy Prime Minister since 2022, and it is anticipated that his approach as the Prime Minister will be characterised by continuity rather than making drastic changes to ensure a stable basis for ongoing economic cooperation.

“He will continue the economic policies set by the former Prime Minister, wherein he was involved in the discussions as well, which have historically been favourable to maintaining robust trade relations between Singapore and Malaysia,” he added.

The think tank said Malaysia and Singapore share a critically strategic economic relationship, consistently ranking as each other’s second-largest trading partners for the past decade.

The economic interdependencies are reflected by the substantial trade volumes which totalled US$79.6 billion in 2023 and US$83.53 billion in 2022.

“This partnership plays a significant role in the broader economic strategy of each nation, which also translates as being each other’s largest trading partner in the Asean region, facilitating robust cross-border trade that is vital for regional stability and growth,” Anas said.

He added that as Malaysia prepares to chair Asean in 2025, the strategic relationship with Singapore could be instrumental in attracting more investment to the region, leveraging their established economic ties and status as major trading hubs.

“Both countries can enhance their appeal to investors looking for stability and growth opportunities in Southeast Asia. This collaboration could potentially increase their influence and ‘economic clout’ within Asean, in driving more integrated and sustainable regional development,” he said.

Among the crucial element of the strategic collaborations between Malaysia and Singapore is the Johor-Singapore Special Economic Zone (SEZ), engineered to enhance economic activities by offering attractive business incentives, such as reduced tax rates and simplified entry processes for skilled workers.

“Key to its success is the infrastructure development aimed at ensuring seamless movement between the two countries, which not only facilitates easier access for businesses and investors but also significantly boosts the economic integration and attractiveness of both nations.

“This strategic initiative underscores the shared commitment to fostering economic growth and enhancing their collective influence within Asean,” he concluded.

Source: Bernama

Anwar-Wong can lead regional ESG standards within Southeast Asia — analyst

Malaysia and the Kyrgyz Republic have affirmed their commitment to increasing bilateral cooperation for the benefit of both countries and their peoples.

The affirmation came after Prime Minister Datuk Seri Anwar Ibrahim and Kyrgyz President Sadyr Zhaparov signed a joint statement today, following a four-eyed meeting at the Ala Archa State Residence, confirming their mutual desire and readiness for comprehensive enhancement of cooperation.

Anwar is on a two-day official visit to the Kyrgyz Republic at the president’s invitation. He was earlier accorded an official welcome, during which he also inspected the guard of honour.

In a joint statement, both leaders outlined three areas to enhance through cooperation, namely political cooperation; trade, economic, and investment cooperation, as well as cultural and humanitarian cooperation.

Among other points, Anwar and Zhaparov emphasised a common commitment to enhancing regional security and acknowledged the importance of joint efforts in addressing challenges and threats such as international terrorism, cyber threats, transnational crime, and illegal drug trafficking.

“The leaders recognised the need to counter these challenges in a holistic manner and therefore committed to facilitating, as far as possible, cooperation in information exchange and coordination of actions at the international level,” said the statement.

Anwar and Zhaparov also acknowledged the importance of coordinated actions within international organisations such as the United Nations (UN) and the Organisation of Islamic Cooperation (OIC).

They also committed to jointly supporting initiatives to strengthen the world order, justice, and compliance with international law.

Anwar and Zhaparov also agreed to recognise the importance of regular and open dialogue between their governments and will thus ensure regular consultations at various levels, including high-level and senior-level meetings, as well as meetings of diplomatic representatives and experts.

“These meetings will contribute to the exchange of views on current global issues, as well as discussions on matters of bilateral and multilateral interest,” said the statement.

The two leaders also noted the importance of strengthening inter-parliamentary cooperation between the countries as an important component of enhancing bilateral relations.

This includes organising regular meetings of parliamentarians at the level of friendship groups and international committees and arranging reciprocal visits of Speakers and other relevant committees and members of the Parliaments of both countries.

In addition, Anwar and Zhaparov expressed their readiness to actively work towards strengthening and expanding the bilateral legal framework for cooperation.

“The leaders will intensify the process of developing and signing new bilateral agreements covering various aspects of cooperation, including trade, investment, education, healthcare, tourism, certification, science, new technologies, and so on,” said the statement.

Malaysia and the Kyrgyz Republic recognised the importance of education as a key component of cultural and humanitarian cooperation.

Both leaders are confident that the development of educational and cultural ties will contribute to deepening mutual understanding and enriching cultural heritage.

They believe these efforts will strengthen the friendly relations between the peoples of both countries.

“The two parties will actively support the exchange of educational experiences, including student exchange programmes, joint master’s and doctoral programmes, teaching visits, and collaborative research projects.

“This will contribute to the multifaceted enrichment of educational practices and support the development of higher and secondary specialised educational institutions in both countries,” said the statement.

Both leaders will also pay particular attention to developing cooperation in the fields of physical culture and sports to promote a healthy lifestyle.

“The parties will enhance the exchange of sports delegations, strive to organise joint training camps, and support the participation of athletes in international competitions held in the territories of both countries,” it added.

Source: Bernama

Malaysia, Kyrgyz Republic affirm commitment to increasing bilateral cooperation

Malaysia can further strengthen bilateral ties with Qatar that have been established since 1974 through the halal industry, Islamic banking, renewable energy, and the application of artificial intelligence (AI), among others, said an academician.

Universiti Sains Islam Malaysia, Faculty of Economics and Trade senior lecturer Dr Umi Hamidaton Mohd Soffian Lee said reinforcing bilateral ties with Qatar will ensure Malaysia’s economy is on a good track and in line with other developed countries.

“We are in the midst to upmerge the halal industry, among other industries. Through AI, we want to make sure that our country is as successful as other developed countries.

“We do not want to fall behind so we will attempt to integrate this AI element in new sectors that we can explore, for example in the field of halal and Islamic finance and look forward to transforming the existing digital economy,” she said during Bernama TV’s “Malaysia Petang Ini” programme, titled “Malaysia’s Mission to Attract Qatari Investors”, today.

Umi Hamidaton elaborated that Malaysia can project the halal industry through AI because the development of the industry is expected to reach up to RM500.4 billion by 2030.

“I see that this proliferation can make a big contribution to the gross domestic product (GDP) that we are trying to achieve which is 8.1 per cent by 2025.

“We have a well-defined plan called the Halal Industry Master Plan 2030 (HIMP 2030). This plan can be an avenue to explore with Qatar, given their potential to produce products or services that we can showcase,” she said.

Umi Hamidaton explained that Qatar recorded the highest per capita income in the world and is one of the potential investment destinations that are lucrative for companies investing in the country.

“Investing companies in the country, for example, can seize the opportunity from the intimate business relationship that had been built over the years to develop with the richest country in the world,” she said.

In 2023, the total bilateral trade between Malaysia and Qatar stood at RM4.3 billion.

Malaysia’s main exports to Qatar are iron and steel products amounting to 37.2 per cent; machinery, fittings and equipment (16.5 per cent); palm oil and palm oil-based agricultural products (8.5 per cent), while the rest is processed food and electrical and electronic products.

Meanwhile, Malaysian imports from Qatar consist of petroleum products (47.4 per cent), crude petroleum (31.5 per cent); chemicals and chemical products (10.5 per cent), manufactured metal goods (9.3 per cent) and palm oil-based manufactured products (0.3 per cent).

From January to March 2024, Malaysia’s total trade with Qatar increased 178.4 per cent to RM1.43 billion (US$303.9 million) compared to RM514.9 million (US$116.7 million) for the same period in 2023.

Qatar was Malaysia’s fifth-largest trading partner in 2023, being the sixth-largest export destination and sixth-largest source of imports from the West Asian region.

Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Qatar, commencing from May 12 until May 14, is expected to further deepen bilateral relations between Malaysia and Qatar in various aspects.

While in Doha, Anwar, who is also the Minister of Finance, will participate in the Fourth Qatar Economic Forum (QEF) 2024 and meet with captains of industry and investors from Qatar to attract investments for the MADANI Economy initiative.

Anwar will also attend a meeting with the Malaysian diaspora in Doha.

Source: Bernama

Enhance Malaysia-Qatar bilateral relations by exploring benefits of various sectors — Academician

The meeting between Datuk Seri Anwar Ibrahim and executives and business leaders from Qatar here has yielded results as the Ministry of Investment, Trade, and Industry (Miti) received export potential worth RM700 million.

The announcement was made by Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz, during his speech at a Malaysian community dinner in Qatar with the Prime Minister last night.

Tengku Zafrul said that the export commitment was stated by 36 captains of industry from Qatar during a business roundtable meeting chaired by the prime minister.

“Alhamdulillah, we received a commitment worth RM700 million. This shows Qatar companies’ confidence in our products and services. Furthermore, we also see the potential of the West Asian market, which is a significant market for Malaysia that we can explore,” he said when met after the dinner attended by more than 500 Malaysians.

Earlier, a total of 45 prominent industry captains from 36 companies representing sectors such as food and food processing, pharmaceuticals, construction materials, real estate and construction, education, hospitality and healthcare, finance, aviation, retail and distribution, and the digital economy attended the roundtable meeting.

During the roundtable dialogue, Anwar reiterated Malaysia’s commitment to strengthen bilateral relations with Qatar, especially in trade and investment.

He emphasised Malaysia’s attractive value, with its robust infrastructure, rule of law factor, presence of skilled and trainable talent, disciplined project implementation, and vibrant business ecosystem.

He said it made an attractive destination for investors aspiring to make Malaysia a strategic manufacturing and service hub for the Asian market, besides attracting new opportunities for growth and diversity.

Tengku Zafrul also said the roundtable meeting in Doha served as a catalyst for fostering strategic partnerships, promoting investment and trade opportunities, besides enhancing bilateral cooperation between the two countries.

He reiterated Miti’s and its agencies’ priority to facilitate all export and investment commitments by Qatari businesses, especially in sectors such as chemicals/petrochemicals, digital economy, electrical and electronics (including medical devices), food processing, halal industry, pharmaceuticals, oil and gas, and renewable energy.

Also highlighted was Malaysia’s strategic importance as a major trading partner, considering its membership in 16 Free Trade Agreements that can be leveraged by Qatari businesses based in Malaysia.

Source: NST

Tengku Zafrul: Anwar’s meeting in Qatar secures RM700mil export commitment

The incoming Singapore Prime Minister, Lawrence Wong, who is scheduled to take the oath of office tomorrow, will enhance bilateral relations between Malaysia and Singapore, said Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In a post on X today, Tengku Zafrul said Malaysia and Singapore have indeed been strong trade and investment partners for a long time.

“However, the world now has to face two main megatrends, namely deglobalisation and also the need to achieve zero carbon emission target to improve the world’s socio-economic situation,” he said.

Hence, Tengku Zafrul said Malaysia and Singapore have the synergy to develop the required leadership needed for the ASEAN region in both matters, especially during Malaysia’s ASEAN chairmanship next year.

He also welcomed the promotion of Gan Kim Yong as Singapore’s deputy prime minister, who is currently the republic’s minister for trade and industry.

“I am confident that these two old friends of mine can navigate issues of mutual interest, such as investment in Johor, to bring overflowing development for both Malaysia and Singapore,” said Tengku Zafrul.

Wong, 51, is scheduled to be sworn in as Singapore’s fourth prime minister to replace Lee Hsien Loong, 72, who has served as premier since 2004.

Source: Bernama

New Singapore Prime Minister will strengthen Malaysia-Singapore bilateral relations – Tengku Zafrul

The Qatar Economic Forum (QEF) 2024 commenced today, featuring numerous global leaders, including Prime Minister Datuk Seri Anwar Ibrahim, who will present their countries’ top selling points to attract investors.

In addition to Qatari Prime Minister and Foreign Affairs Minister Sheikh Mohammed bin Abdulrahman Al-Thani, the fourth edition of the QEF will be attended by Polish President Andrzej Duda, Indonesian President-elect Prabowo Subianto, and President of the Republic of Palau, Surangel S. Whipps Jr.

These leaders, along with over 100 chief executives, influential voices, and decision-makers from sectors such as economics, finance, technology, investment, energy, education, sports, and climate, are expected to provide insights into their respective countries.

The first day will commence with an opening address by Sheikh Mohammed, followed by three sessions featuring Sheikh Mohammed, Duda, and Anwar.

Anwar will take the main stage in a session titled “In Conversation with the Prime Minister of Malaysia,“ moderated by Bloomberg TV anchor and chief international correspondent for Southeast Asia, Haslinda Amin.

During his 30-minute session, Anwar who is also the Finance Minister, will discuss the attractiveness of Malaysia as an investment destination, emphasising its appeal beyond Qatar, West Asia, and the Gulf Cooperation Council (GCC) market.

The Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani, will also grace the event.

Under the theme “A World Remade: Navigating the Year of Uncertainty,“ the forum’s discussions will focus on five key areas: geopolitics, globalisation and trade, the energy transition, technology innovation, business and investment outlook, as well as sports and entertainment.

In addition to the main stage discussions, more than 70 speakers will participate in 12 breakout sessions across two stages, addressing themes such as investing in emerging markets, rewiring global trade and real-life applications of artificial intelligence.

Following his session, Anwar is scheduled to hold a bilateral meeting with Duda and participate in an interview with Al-Jazeera.

The Prime Minister will conclude his official visit by inaugurating the UKM Qatar offshore campus.

Anwar is currently on his maiden three-day official visit to the Qatari capital.

Source: Bernama

Malaysia to woo investors at Qatar Economic forum