Malaysia’s approved investments hit a record RM329.5 billion in 2023, but the impact on local supply chain companies, banks, and capital markets remains uncertain, according to Affin Hwang Investment Bank.

However, there are promising developments that could enhance the benefits of these foreign direct investments (FDI) across various sectors.

Citing an example, Affin Hwang said Sime Darby Plantation Bhd plans to develop the Kerian Integrated Green Industrial Park (KIGIP) in Perak. 

“This project aims to attract industrial plants powered by solar energy, using solar photovoltaic (PV) plants within the park,” Affin Hwang added.

The KIGIP project highlights Malaysia’s commitment to sustainable industrial growth and could be a model for integrating renewable energy into industrial development.

The Penang Institute, advising the Penang state government, is exploring a Special Financial Zone in the northern region. 

“This initiative aims to create a financial hub to make it easier for local companies to access capital,” said Affin Hwang. 

The goal is to help these companies expand and become key parts of the supply chain for multinational corporations (MNCs), especially in the semiconductor and electric vehicle (EV) battery industries, which are rapidly growing in Malaysia.

Affin Hwang said the Malaysia Investment Development Authority has identified several companies already benefiting from FDI inflows. They include Greatech, Vitrox, Oppstar and YBS International. 

“These companies are poised to play crucial roles in Malaysia’s industrial growth and integration into global supply chains,” Affin Hwang said.

As Malaysia continues to attract significant foreign investments, these strategic initiatives and developments are expected to boost the local economy, drive sustainable growth, and position Malaysia as a key global player.

Significant investments have also been seen in Malaysia’s data center industry, attracting global tech companies like Microsoft, Nvidia and Amazon. 

With the rapid evolution of AI and cloud computing, Malaysia is well-positioned to capitalise on digital transformation, driving economic growth. 

The demand for renewable energy, driven by national and corporate commitments to achieve net-zero emissions, is becoming a pivotal factor in attracting FDI to the region.

Affin Hwang said Malaysia’s private investment had grown faster in 2023, indicating a recovery in investment activities amid global recovery. 

Revitalising both FDI and domestic direct investment (DDI) is crucial for Malaysia’s economic growth, it added.

“By fostering a conducive environment for private investment, Malaysia can achieve significant economic expansion, moving closer to its goal of becoming a high-income nation,” it said.

Source: NST

Promising developments to enhance FDI benefits for various sectors in Malaysia

Investments from America in Malaysia have risen significantly due to the strong bilateral relationship between the two nations, said US Ambassador to Malaysia Edgard D Kagan.

He said American companies are the largest investors in Malaysia, with a strong presence for nearly 70 years.

“American companies have a strong presence here in the tin industry. American demand was critical in developing the rubber industry, but also Americans had a very strong role in oil and gas, as well as the development of American investment in the electrical and electronics sector.

“Today, American companies employ over 300,000 Malaysians; they pay over twice the average salary. In Malaysia, we pay RM6,500 a month on average,” he told a press conference after visiting the Semenggoh Wildlife Centre here yesterday.

He said how American companies have invested in Malaysians is also a point of pride.

“When I travel, I’m always impressed how many Malaysians who run major Malaysian companies, have started Malaysian companies, actually at one point in their careers, worked for American companies.

“I think that that’s a testament to the investment in the skills of the workforce that American companies have been putting in for decades,” he explained.

Kagan said the Sarawak government has done much to improve its infrastructure and made the state more attractive for investors.

He said what the state can offer in terms of renewable energy is deemed an increasingly important factor when companies decide where they invest.

“I believe my role as ambassador is to make sure American companies will have the opportunities in Malaysia as a whole, and then in specific parts of Malaysia, including Sarawak; while also engaging with the Malaysian government to make sure that they know what are the interests, what are the concerns that American companies have as they make decisions on policy. They know what kinds of policies will be attractive for serious investors the way American companies have been over so many years,” he said.

On collaboration between Malaysia and the US in terms of renewable energy and sustainability, Kagan said Sarawak is eager to attract more investors as the state has hydropower as well as the potential to expand significantly in other areas, which is vital for companies as they aim to achieve net-zero carbon emissions. 

Source: Borneo Post

US investment in Malaysia on the rise thanks to strong bilateral ties, says ambassador

The location and size of the Johor-Singapore Special Economic Zone (JS-SEZ), covering Iskandar Malaysia and Pengerang, will benefit a lot more companies and sectors.

RHB Research said it is upbeat about the recent new reports that JS-SEZ will cover a total of 3,505sq km, with about 2,300sq km in Iskandar Malaysia and 1,200sq km in Pengerang.

Landowners with parcels located in strategic areas in Iskandar Malaysia and Pengerang that are closer to the Second Link to Singapore and Kulai will benefit more, the research house said.

These include UEM Sunrise Bhd, Sunway Bhd, and IOI Properties Group Bhd.

Other major landowners in Iskandar Malaysia include Mah Sing Group Bhd, LBS Bina Group Bhd, Eco World Development Group Bhd, AME Elite Consortium Bhd, KSL Holdings Bhd, Scientex Bhd, Iskandar Waterfront City Bhd and Crescendo Corp Bhd.

Even other non-developers such as YTL Corp Bhd, with 1,640 acres in Kulai, MPHB Capital Bhd with 1,663 acres in Pengerang, and MMC Corp Bhd being a controlling stakeholder of Port of Tanjung Pelepas, will benefit from the SEZ.

RHB Research does not rule out the possibility that some plantation companies that have sizable holdings in Iskandar Malaysia may also explore opportunities that the SEZ will bring.

Besides providing more clarity about the size and location of JS-SEZ, the Johor government also mentioned 16 economic sectors that will be focused on that are expected to provide spillover benefits to the people of the state.

Johor Mentri Besar Datuk Onn Hafiz Ghazi recently said the SEZ will involve six local councils – Johor Baru, Iskandar Puteri, Pasir Gudang, Kulai, Pontian and Kota Tinggi.

The economic sectors that are expected to play a significant role in the SEZ include electrical and electronics, pharmaceuticals, manufacturing, aviation, specialty chemicals, logistics, healthcare, education, halal industry, finance and business services, digital economy and tourism.

RHB Research said it understands green/renewable energy is also included.

The research house said the zoning of the SEZ is a lot wider than expected and although the areas involved are huge, the research house believes the infrastructure and key economic activity will likely focus on key locations, such as Johor Baru.

It would also cover Iskandar Puteri and Pasir Gudang, both of which feature mainly townships and industrial areas; Kulai, which is home to Senai International Airport, residential and industrial areas, and data centres; and Pengerang, which is a regional oil and gas hub.

Once set up the SEZ would be nearly twice the size of China’s Shenzhen at 3,505 sq km.

Official engagements with Singapore on the economic zone are expected to begin in June, Onn Hafiz said.

The research house said it believes upcoming news about JS-SEZ will likely cover more details on the execution, which may include the implementation of a passport-free QR code immigration clearance system, adoption of digitised processes for cargo clearance, as well as potential incentives to be offered to players in various industries.

Source: NST

Size of JS-SEZ to bring more benefits to a host of industries

A tax incentive proposal for Forest City Special Financial Zone (SFZ) to attract global investors will be finalised by the end of the month.

Menteri Besar Datuk Onn Hafiz Ghazi said the Ministry of Finance said this during a Special Meeting on Johor Development, chaired by Prime Minister Datuk Seri Anwar Ibrahim, on April 18.

“When examining several other leading financial special zones worldwide, various incentives are provided to attract the interest of global investors.

“The fiscal incentives discussed for SFZ Forest City include corporate tax exemptions and special income tax rates for skilled workers, as well as exemptions and special rates for stamp duty on property, and share transfer-related instruments.”

The tax incentive package to attract global investors to invest in SFZ Forest City, meanwhile, will be announced in a few months, he added.

He said this when answering oral questions at the Fifteenth State Legislative Assembly of Johor, in the Sultan Ismail Building, here, today.

Earlier, Chen Kah Eng (DAP-Stulang) wanted to know the status of the development of SFZ Forest City.

Meanwhile, Onn Hafiz, who is also Machap assemblyman, said the state government would conduct benchmark studies on several other leading international financial special zones to attract investments in SFZ Forest City.

He said SFZ was established to put Johor and Malaysia on the international finance and banking map.

“SFZ Forest City is not aimed at competing with any other financial special zone in the world, but rather, to act as a catalyst for increasing government revenue, besides providing thousands of job opportunities for the people of this state.

“The benefits SFZ Forest City will bring to the people are not only through the creation of thousands of new jobs, but also by enhancing economic growth and stimulating the state and national business sectors, as well as through the improvement of infrastructure, including roads and public transportation, which will bring about many advantages to the people,” he said.

Source: NST

Tax incentive plan to attract investors to Forest City SFZ ready by month-end

Malaysia and Qatar have agreed to enhance investment cooperation between the two countries in the coming years, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the understanding was reached when he met the Emir of Qatar Sheikh Tamim bin Hamad Al Thani, and was later mentioned in depth during a meeting with his counterpart, Sheikh Mohammed bin Abdulrahman Al Thani.

Also discussed was bilateral cooperation and facilitating investment and higher education which was then further discussed in a meeting with Sheikh Mohammed, who is also Qatar’s Foreign Minister, said Anwar.

“We both agree that investment cooperation between the two countries needs to be further enhanced in the coming years,” he said in a message on X today.

Anwar, who is also the Finance Minister, added that his official visit, which was at the invitation of Sheikh Tamim, was also aimed at continuing efforts and strengthening diplomatic ties and links that have already reached 50 years.

“The Malaysian delegation was then treated to a national banquet hosted by Sheikh Mohammed.

“Hopefully the bond of friendship between Malaysia and Qatar will continue to grow for mutual benefit,“ he said.

Earlier, Anwar was felicitated in an official reception and lunch at the Amiri Diwan, which is Qatar’s government hall, in conjunction with his maiden visit to the country.

The Prime Minister spent about 30 minutes with Sheikh Tamim, which was followed by a meeting with Sheikh Mohammed.

Last year, total bilateral trade between Malaysia and Qatar reached RM4.2 billion.

Source: Bernama

Malaysia, Qatar to enhance investment cooperation in the coming years – PM Anwar

Estithmar Holding and Baladna are among Qatar’s largest companies by market capitalisation that attended a roundtable meeting hosted by Malaysia’s Ministry of Investment, Trade and Industry (MITI).

Established in 2014, Baladna, which is a public shareholding company, is Qatar’s largest dairy and beverage producer, supplying over 95 per cent of the country’s fresh milk.

Meanwhile, Estithmar Holding is a Qatari public listed company with a diverse portfolio of 51 companies operating in four strategic sectors namely healthcare, services, contracting and industries, as well as ventures.

The roundtable meeting with these captains of industry is part of Malaysia’s aggressive efforts to attract more high quality investments into the country.

More than 30 top executives and business leaders took the opportunity to meet with Prime Minister Datuk Seri Anwar Ibrahim, as he briefed them on the latest investment climate in Malaysia, while convincing them that the country could be their preferred investment destination and competitive trade partner.

Anwar, who is also the Finance Minister, is currently on a three-day official visit to the capital as part of his mission to increase Malaysia’s visibility as a potential investment destination to the Qataris.

The companies that attended the roundtable are mostly from the services, manufacturing as well as investment sectors.

Other companies that attended include Taleb Group, Morex Group, Tamam Capital and Al Mana Group.

Anwar spent about one hour in an interactive session to engage and update Qatari businessmen on the Malaysian economy, business ecosystem as well as the New Industrial Master Plan 2030.

The session was moderated by MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Apart from attracting potential investments through this meeting, Malaysia is also keen to woo more interest and increase awareness from the Qatari business community to source more products as well as services from Malaysia.

This is seen as vital as the two countries embark on a new phase of cooperation as they celebrate the 50th anniversary of bilateral trade this year.

Last year, Malaysia’s total bilateral trade with Qatar amounted to RM4.2 billion, as the Gulf state became Malaysia’s fifth-largest trading partner, sixth-largest export destination and sixth-largest import source from the West Asia region.

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

According to the International Monetary Fund, Qatar is among the richest countries in the world, with a per capita income of nearly US$96,610 in 2020.

It was reported that petroleum and natural gas are the cornerstones of its economy, with Qatar home to one of the largest reserves of natural gas in the world.

Source: Bernama

Qatar ‘big guns’ of industries attend roundtable meeting with PM Anwar

The Johor-Singapore Special Economic Zone (SEZ) could be a formidable competitive advantage in attracting fresh foreign direct investment (FDI) from multinational companies (MNCs).

This can be achieved by integrating Singapore’s global financial, logistics and advanced manufacturing capabilities with Johor’s access to competitive labour, abundant land and cheaper energy resources.

Maybank Investment Bank (Maybank IB) said Singapore enjoys wide and deep connectivity to global capital sources, while also serving as a gateway to the Asian markets, given unrivalled transport and trade links.

“MNCs are currently diversifying their supply chains away from China, and looking for alternative production bases as global competition for investments has intensified with rising impetus for countries to re-shore and friend-shore production.

“Against this backdrop, governments are looking to strengthen their competitive strengths to capitalise on this shift in supply chains and attract more foreign investments,” it said in a note today.

Maybank IB opined that there is scope for Singapore’s South-east Asia Manufacturing Alliance (SMA) to be expanded to other industrial parks within the SEZ.

“Incentive schemes covering other sectors could also be considered. This will provide additional impetus for complementary investments in Singapore and Johor, building on incentives offered by Malaysian authorities,” it said.

According to Maybank IB, rising business costs in Singapore have increased the need for a hinterland, which Johor is well positioned to provide.

It said Johor is cost-competitive and is a major consideration for Singapore-based small and medium enterprises.

Salary levels in Johor are more than 80 per cent lower for manufacturing; and 40 per cent lower for hospitality, while businesses hiring Malaysian workers are not subject to the foreign worker levies and quotas that they would face in Singapore.

Average electricity tariffs in Johor are around 60 per cent lower for businesses than Singapore, and 80 per cent lower for households.

“Business costs in the island state have climbed markedly in the post-pandemic period, driven by rising global inflation, a tight labour market, rents and tax adjustments, and administrative wage policies.

“Rents in Iskandar (Johor) are 75 per cent lower than Singapore for offices, 65 per cent lower for factories and 85 per cent lower for housing. Office rents are roughly RM9 per sq ft in Iskandar, compared to S$11-S$12 (RM38-RM42) in Singapore,” it said.

On the other hand, it said residential rents in Johor are around a seventh of Singapore’s public housing (HDB apartment) rents, while ready-built factory rents in Johor are roughly a third of Singapore.

“To minimise red tape and provide more clarity on investment policies, Malaysian authorities are working on the Invest Malaysia Johor Facilitation Centre (IMFC-J), which is to be located in Forest City, and scheduled to be operational in the third quarter of 2024.

“The JB-Singapore Rapid Transit System Link is about 70 per cent completed and on track to meet the operational start date at end-2026. Travel time between Singapore and Johor Bahru will take just six minutes,” it said.

Source: Bernama

Maybank IB: Johor-Singapore SEZ has competitive advantage in attracting fresh FDI

Prime Minister Datuk Seri Anwar Ibrahim’s official visit to the Qatari capital, commencing tomorrow, is expected to deepen bilateral relations between Malaysia and Qatar, as the two nations commemorate their 50th anniversary, while also exploring new investment opportunities.

The visit fulfills an invitation from the Emir of Qatar, Sheikh Tamim Hamad Al Thani, and encompasses participation in the Qatar Economic Forum 2024.

Malaysian Ambassador to Qatar, Zamshari Shaharan, hailed the Prime Minister’s inaugural visit as a promising start, aimed at strengthening relations forged over five decades and fostering new cooperation for the next 50 years.

“Qatar regards Malaysia highly as one of the progressive and modern Islamic countries that has achieved remarkable economic success over the years,“ he told reporters during a press conference at the Malaysian Embassy here on Saturday, coinciding with the Prime Minister’s official visit.

Shaharan noted that Anwar’s presence at the economic forum carries significance, especially as Malaysia is featured in a 30-minute ‘In Conversation with Prime Minister Anwar Ibrahim’ session, providing an opportunity for interaction with forum participants, including Qatari industry representatives and government delegations.

Furthermore, Anwar’s participation in a roundtable meeting with 30 representatives of Qatari companies will afford him the opportunity to elucidate Malaysia’s economic landscape and the incentives available for potential investors.

“Qatar is keen on attracting investments, including through joint ventures with Malaysian companies and establishing a presence in Qatar, aligning with the vision of the Qatari government,“ he said.

Renewable energy emerges as a potential sector in Qatar, added Shaharan.

Last year, bilateral trade between Malaysia and Qatar amounted to RM4.3 billion, a figure expected to rise further following this visit.

Malaysia’s major exports to Qatar last year comprised iron and steel products (37.2 per cent), machinery, equipment, and parts (16.5 per cent), and palm oil and palm oil-based agriculture (8.5 per ent), alongside processed foods, electrical and electronic products.

Conversely, imports from Qatar included petroleum products (47.4 per cent), crude petroleum (31.5 per cent), chemicals and chemical products (10.5 percent), manufactures of metal (9.3 per cent), and palm oil-based manufactured products (0.3 per cent).

Source: Bernama

Anwar’s visit strengthens Malaysia-Qatar ties, explores new investment horizons

Penang aims to attract 150,000 talents in the next five years, with a focus on the semiconductor and medical technology industries, which are crucial for the state’s economic growth.

Deputy Chief Minister, Jagdeep Singh Deo said Penang is commited to foster a conducive environment for technological innovation, partly undertaken through the development of tech talents.

“Penang’s strategic initiatives, such as collaborations between industry and academia, investments in education programmes and attracting foreign direct investment, aim to position the state as a global hub for technological advancement and to maintain its competitive edge in the global supply chain,“ he said in his opening speech at the Malaysia Board of Technologists (MBOT) Northern Symposium 2024 here today.

In a statement, MBOT said this symposium serves as a dynamic platform to encourage expertise sharing and facilitate knowledge transfer related to cutting-edge technologies.

It also connects professional members of MBOT under a strategic network, fostering knowledge sharing and collaboration with strategic partners in the Northern region of Malaysia.

The one-day event, organised by MBOT, brought together attendees from various industries, institutions and government agencies to foster meaningful discussions and collaborations that will shape the future of technology in Malaysia.

Source: Bernama

Penang aims to attract 150,000 talents in the next five years

Penang is witnessing robust growth in its technology, property and construction sectors amid an ongoing economic boom in the state.

Buoyed by continued investment inflows, particularly in the electrical and eletronics (E&E) industry, and supported by infrastructure upgrades, Penang has reported an increase in job creation and growth in household disposable income leading to surging demand for real estate.

RHB Research, in its thematic report on Penang yesterday, noted that government incentives and the forthcoming light rail transit (LRT) in the state would further stimulate investments and job creation, and drive growth in the technology, property, and construction sectors.

In the technology sector, the brokerage pointed out that Penang is a thriving E&E hub benefiting from the recovery of the semiconductor sector and the repercussions of the US-China trade tensions.

“Its established E&E and manufacturing industries are positioned to capitalise on heightened investment in technology and medical technology supply chains, presenting vast business opportunities for local companies from design houses and outsourced manufacturing to engineering support and material supply and support services,” said RHB Research.

In construction sector, an increase in activities is providing vast opportunities to local contractors.

“The construction sector in Penang will continue to shine, in our view, buoyed by ongoing projects such as Seri Tanjung Pinang 2, escalating demand for E&E facilities, and property projects, alongside the impending Penang LRT Mutiara Line.

“This heightened infrastructure rollout is set to benefit contractors, with an estimated RM10bil to RM20bil worth of contracts anticipated in the coming years, driven by the Penang Transport Master Plan and development of Silicon Island,” it added.

RHB Research said the property sector is also benefiting from the burgeoning activity in the E&E space, major infrastructure upgrades, and rising income per capita.

For perspective, Penang’s E&E sector registered a five-year compounded annual growth rate of 12.1% from RM209mil in 2018 to RM341mil in 2022, while its gross domestic product per capita had risen to RM69,700 in 2022 from RM44,800 in 2015.

“The proliferation of new industrial parks like Batu Kawan Industrial Park 2, Penang Technology Park @Bertam, and AME Elite Consortium Bhd’s Northern Industrial Park are set to fuel job creation and population migration,” added the research house.

Source: The Star

Technology, property and construction sectors booming in Penang

Malaysia has become a magnet for skilled foreign professionals, with the number of expatriates entering the country surpassing pre-pandemic levels.

According to the Immigration Department’s data, a total of 154,155 expatriate passes were issued last year – the highest since 2018.

As of March, the department has issued a total of 38,197 passes – compared with the 32,947 passes given out during the same period last year.

Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said employers are often forced to hire foreign professionals due to the mismatch in locals’ skills and competencies with the requirements of certain jobs.

There is a need for specific expertise in sectors such as aerospace, manufacturing (food processing) and construction. These sectors require expertise in emerging technologies such as machine learning, automation and data analytics.

“The aerospace industry, for instance, demands highly specialised skills, expertise and experience in aerospace engineering, aircraft maintenance and related fields.

“However, Malaysia faces stiff competition for skilled and experienced workers from neighbouring countries.

“Employers in Malaysia struggle to recruit and retain talent in the aerospace industry, leading to gaps in the workforce and challenges in meeting industry demands,” he said when contacted.

An expatriate is a skilled professional, who is a non-citizen or a permanent resident who is allowed to work in Malaysia on a contract or temporary basis.

Due to skill gaps among the local workforce, Syed Hussain said employers are favouring expatriates over local talents.

“The upward trend in expatriate hires over the years can be attributed to various factors.

“One reason is the real lack of locals especially for new and emerging technologies.

“Higher learning institutes need to ensure that the programmes they offer are meeting the latest and emerging skills required by the labour market,” he said.

Malaysian Trades Union Congress president Mohd Effendy Abdul Ghani said companies will only employ overseas workers if they fail to find suitable candidates for highly skilled positions.

“In fact, companies often prioritise hiring locally to avoid issues related to work permits, cultural integration and potential language barriers,” he said.

The Statistics Department’s 2023 fourth quarter report revealed that Malaysian labour share in the skilled category only amounted to 25% of the total filled jobs.

The report showed that the majority of local talents were in the semi-skilled category with over 62.7% cumulatively.

Sunway University economics professor Dr Yeah Kim Leng said it is encouraging that the number of expatriates in the country is on the uptick after experiencing a decline over the last few decades.

“The decline has been reflective of falling foreign investment in the country as well as increased use of Malaysians in running the foreign-owned operations due to lower cost,” he said.

“The rise in the number of expatriates is a good indicator that affirms the surge in foreign investment over the past two years.”

It is also positive to the economy in terms of business confidence, domestic spending and investment, especially in the high-end property, automotive and durable goods markets in addition to domestic tourism, education and other household services.

He said expatriates are typically brought in to manage critical operations, train local employees and transfer their knowledge.

“With more high-value foreign investments, the expatriates play an important role in stemming the brain drain problem by training Malaysians and providing career enhancement opportunities,” he said.

He said they may also contribute to the economy by renting high-end properties.

“The weak ringgit enhances the purchasing power of expatriates who are paid in the currencies of their home countries,” he said.

Besides contributing in direct and indirect taxes, their daily consumption and spending power will boost local products.

Economist Dr Geoffrey William said there is no dearth of local talent in the high-skilled workforce.

“There is no lack of local talent in the local professional and high-skilled workforce; the problem is lack of jobs,” he said.

“Malaysia has an underemployment of around two million people with qualifications higher than the jobs they are doing.”

Source: The Star

Malaysia a magnet for expats

ALTHOUGH the 17 Sustainable Development Goals were adopted by the United Nations (UN) in 2015 companies were largely under the impression that such pursuits were mostly the responsibility of governments.

Ideas that the private sector are just as obligated to create a world with no poverty, has zero hunger, with access to health and education for everyone, were only subscribed to by a few corporations.

In fact, as the Ministry of Investment, Trade and Industry (Miti) senior director for Industry Development Division, Dr Meenachi Muniandy pointed out: “If you ask companies if they would say those are their priorities, definitely they will say ‘no’.”

Meenachi was presenting the ministry’s i-ESG Framework during Star Media Group’s ESG PIA Winners Showcase Agenda networking event, which was held on May 3.

Importance of ESG

However, she pointed out that today’s catch-all phrase for sustainability—ESG (environmental, social and governance)—has been in existence way longer.

The ideas were already present on Feb 1, 1999 when former UN secretary-general Kofi Annan called upon firms and their business associations to “embrace, support and enact a set of core values in the areas of human rights, labour standards, and environmental practices.”

She explained that the term “ESG” was then coined in a 2004 UN report called Who Cares Wins.

The report provided examples or components for “E”, “S” and “G” as well as on how companies can respond to climate change, treat their employees, build trust and innovation, and manage the supply chain.

She then addressed the reason why ESG is so important to the nation’s economy by saying that Malaysia is a small and highly open economy.

“Trade accounts make up more than 100% of the gross domestic profit, which means we are dependent on trade, with the European Union, for example, is a major trading partners.”

With more first-world countries pushing ESG and their sustainability agendas via regulations, exporting countries, such as Malaysia, have to meet these requirements.

In fact, Malaysia has pledged to observe the Paris Agreement 2015 and fulfil the objectives of the UN’s SDGs.

“We are committed to reducing our emission level intensity to 45% of GDP by 2030 as compared to the 2005 levels.

“We also aspire to become a net zero country as early as 2050,” she shared.

To align with these commitments, she explained that Bank Negara introduced the Climate Change and Principle-based Taxonomy, which mandates financial institutions on sustainability reporting.

“Financial institutions would have to disclose their Scope 3, which means they would eventually need to get disclosures from their clients,” she said.

She also indicated that companies that want to be listed will also have to meet Bursa Malaysia’s ESG requirements as well as the Securities Commission’s (SC) own requirements.

Approaching MSMEs“When we started our journey in 2022, our division was established on Nov 1, i-ESG division, with the ‘i’ standing for ‘industry’”, she mentioned.

“We were tasked to come up with the framework for the manufacturing sector in ESG.”

During the survey, she said Miti realised that ESG awareness was low among the micro, small and medium sized entrepreneurs (MSMEs).

These companies were also under the impression that ESG is difficult to implement and will incur more costs to them, for they lack the capacity, financial resources or technology.

“They think of it as a programme and not a journey, and that was actually the issue we identified in 2022,” she said.

Furthermore, the plethora of available standards in sustainability reporting and speed in which they evolve make it difficult for them to follow.

In September 2023, when Miti launched a new industrial master plan that included a mission to push for net zero within its four missions, the ministry recognised the need for a framework.

“In the subsequent month, we launched the i-ESG framework. This framework is guided by the 17 SDG goals, the 12th Malaysia Plan and two documents produced by Miti, which are the New Investment Policy and New Industrial Master Plan.”

Miti’s i-ESG Framework aims to foster economically beneficial environmentally sustainable and socially equitable manufacturing sectors.

Its main objective is to build and strengthen a system that encourages and enhances ESG practices among the manufacturers.

The framework will be in line with other plans and roadmaps that are supposed to come by the end of this year, such as the Nationally Determined Contribution Roadmap, the National Energy Transition Roadmap and the 13th Malaysia Plan.

The i-ESG Framework

The framework has four components; standards, capacity building, financing and market mechanism.

It also lists 70 strategies, 50 deliverables and is supported by six enablers.

Miti’s portal that hosts the framework has detailed information on ESG as well as the reasons to push for the standards.

It holds a readiness assessment tool called i-ESGReady that companies can use to gauge themselves with.

They need to answer about 40 questions in terms of their ESG practices and at the end of the form, they will be shown either if they are at the basic, limited, evolving or advanced level.

“If you’re at the evolving or advanced levels that means you are actually on the right track.

“You may not need much help from Miti, but if you’re at the basic or limited levels, then you may look at Miti’s starter kit,” said Meenachi.

The starter kit is available at the conclusion of the readiness assessment, after pressing the “done” button.

As it is just a starter kit, Meenachi cautioned that it is not a guideline or a standard and it is not a framework.

It however helps companies understand how to do their ESG reporting, as it will link them to the frameworks or standards that they will need to use.

“So if you want to disclose total energy consumption, the starter will show the link to the Global Reporting Initiative, to the European Sustainability Reporting Standards, the SDGs, to Bursa and more—but those documents will not show you how to disclose.

“That is in your own capacity, either you want to engage a consultant to gather the information, or you do it internally,” she added. In order to assist MSMEs in navigating the starter kit, which has 200-over pages and can be overwhelming, Miti has “ESG Clinics” to guide them in the process.

“Companies can join in a group of about 50 for us to conduct hand-holding sessions to teach them how to use the starter kit.”

She also said that Miti does awareness programmes nationwide, such as “Kenal ESG”, where it meets industries and participates in various webinars, seminars and forums organised by third parties.

It also runs “ESG Mentor”, where multinationals and large companies can team up with Miti to brief their vendors on adopting ESU practices and reporting on their sustainability.

The i-ESG Framework on Miti’s official portal at https://www.miti.gov.my/index.php under the “Transformation Industry” tab and is freely available to all companies.

Source: The Star

Making ESG accessible to all companies

Malaysia and Saudi Arabia are in the midst of discussions about new investments into the country, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said he and his delegation are expected to finalise the details of investments from Saudi Arabia into Malaysia on Monday evening. 

“We will be announcing some new investments with the Kingdom of Saudi Arabia,” said Anwar, who is also finance minister, here on Monday. 

He said this after witnessing the memorandum of understanding (MOU) signing ceremony between the Securities Commission Malaysia and the Islamic Development Bank (IsDB) Group.

Anwar, who has been in Saudi Arabia for a three-day working visit since Saturday (April 27), has had a series of bilateral meetings with his counterparts from Pakistan, Iraq and Bangladesh, among others, amid the World Economic Forum’s Special Meeting and the IsDB annual meeting.

“I am having a private meeting with Saudi Crown Prince Mohammed bin Salman today. They have been to Pengerang in a big way and through IsDB.

“There are also some new ventures with the Kingdom in terms of digital technology and also energy transition, which gel with Malaysia’s priorities,” said the prime minister. 

To recap, in March this year, the board of IsDB approved the US$100 million (RM477 million) Pengerang Energy Complex project for Malaysia under the bank’s public-private partnership programme.

The project aims to develop a sustainable, energy-efficient, state-of-the-art aromatics complex in Pengerang, thereby adding value to Malaysia’s downstream oil and gas chain and economic growth. 

“The Kingdom takes a more progressive and open position in terms of looking at globalisation, inclusivity, issues of equity and inequality, and our capacity to involve or venture into new aspects or instruments (like digital technology and artificial intelligence) would help immensely.

“At the same time, this is how countries can propel the economy through these sorts of networking between countries, and some fiscal and institutional reforms,” he added.

Malaysia joined the IsDB on Aug 12, 1974. It has a capital subscription of 1.55%, worth 868.18 million Islamic dinars, which is equivalent to one special drawing right of the International Monetary Fund.

The IsDB has funded 166 projects in Malaysia, worth US$963.2 million.

Of these, 160 projects (worth US$945.8 million) have been completed and the other six projects (worth US$17.4 million) are ongoing.

Source: Bernama

Anwar: Malaysia in talks for new investments into country by Saudi Arabia

Malaysia faces competition for foreign direct investment (FDI) from the ongoing global supply chain shifts.

Other regions and countries are also benefiting from such investments due to their own unique advantages, a survey published on a whitepaper called New Anchors Reshaping Supply Chains revealed.

The survey, carried out by PwC Singapore and commissioned by Eastspring Investments, showed business leaders expect India, Mexico, South-East Asia, Emerging Europe and South America to gain from the ongoing supply chain realignment investments.

Business leaders particularly see India as having significant future importance owing to the ongoing manufacturing boom in the country.

The survey showed companies are moving ahead with long-term plans to move their supply chains due to the various challenges of geopolitics, trade disruptions, climate events and rising costs.

Apart from geography, PwC Singapore partner Sidharta Sircar said other factors that will set a market or country apart for FDI consideration include the overall ecosystem and maturity of local capabilities of the market.

“The local demand in the area is important as well – whether they are emerging hubs for demand within the market or the region in a broader sense – are some of the factors that clients do consider,” Sidharta said at a panel discussion of the whitepaper findings.

Source: The Star

Global supply chain shift sparks competition for FDI

Malaysia is poised to attract more investments from United States companies in the wake of Microsoft’s recent RM10.5 billion investment, says Tengku Datuk Seri Zafrul Aziz.

Highlighting the need to bolster Malaysia’s technological infrastructure, he emphasised the importance of data storage, computing power, and network capabilities to attract high-technology industries. 

Following a productive meeting with Google chaired by Prime Minister Datuk Seri Anwar Ibrahim and attended by Digital Minister Datuk Gobind Singh Deo, Tengku Zafrul stressed the necessity of establishing a robust technological ecosystem to facilitate further investments.

“It was a good meeting with Google yesterday which was chaired by the prime minister, and attended by Digital Minister Datuk Gobind Singh Deo and I.

“There are three things needed for the industry which are data storage, computing power and network. And we need to build all these which requires investments in terms of technology and support.

“For high-technology companies to come in, we need a highway and we don’t have that. (Later on) when we have the structure, the ecosystem will come in (and invest),” he told reporters after the soft launch of the Myaero 3D visualisation and virtual augmented mixed reality lab at the Defence Services Asia and National Security Asia 2024 exhibitions.

While Malaysia was emerging as a data hub in Asean, Tengku Zafrul said the country’s increasing investment in data centres amounted to approximately RM100 billion last year. 

He said Malaysia’s commitment to sustainability further enhanced its appeal as a preferred destination for investments, with ongoing efforts to achieve net-zero targets.

“We are inviting more companies to achieve our net-zero targets,” he said.

Last week, Microsoft announced that it would invest RM10.5 billion over the next four years to support Malaysia’s digital transformation – the single largest investment in its 32-year history in the country.

Yesterday, Anwar held an online conference with the president and chief investment officer of technology (CIO) giant Alphabet & Google, Ruth Porat.

He said during the conference, Porat informed on the progress of the framework areas that Alphabet & Google could expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government.

Last year, former US Ambassador to Malaysia Brian McFeeters said US companies had made investment pledges totalling US$100 billion (RM465 billion) in various sectors in Malaysia over the last 18 months.

Source: NST

Malaysia poised to attract more US investments following Microsoft’s RM10.5bil investment

Malaysia foresees significant potential for deepened collaboration with China, notably in infrastructure, the digital economy, green development, new energy vehicles, and the rare earth industry, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the Madani initiative, launched in January last year, aligns with the values and principles of the Community Shared Future (CSF) advocated by Chinese President Xi Jinping since 2013.

“Both concepts advocate and promote innovation, care and compassion, inclusiveness and mutual respect. The Malaysia Madani economic framework aims to strengthen national competitiveness by focusing on fiscal sustainability, excellent governance, and effective service delivery.

“Both countries can translate these concepts into reality for the benefit of their people,” Fadillah said in his keynote address during the Malaysia–China Commemorative Forum today.

His speech was read out by Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir, who represented the Deputy Prime Minister.

The event was organised by the KSI Strategic Institute for Asia Pacific in collaboration with the Malaysia China Business Council and China Daily, aiming to mark the 50th anniversary of diplomatic ties and foster deeper economic collaboration between Malaysia and China.

Fadillah also emphasised Malaysia’s leadership in promoting renewable energy through its partnership with China. Both nations are heavily investing in clean technologies such as solar, wind, and hydroelectric power.

He said the Malaysia-China collaboration has expanded beyond technology, with both countries actively participating in knowledge-sharing initiatives to harness the immense potential of green energy.

“Through these initiatives, we strive to reduce greenhouse gas emissions and mitigate the impacts of climate change. By prioritising innovation and sustainable development, Malaysia and China are making significant contributions.

“We are addressing global climate challenges while also unlocking new economic opportunities. This dual approach promotes growth while ensuring environmental stewardship,” Fadillah said.

China has remained Malaysia’s largest trading partner for the past 15 years, with total trade between the two countries reaching US$98.80 billion (RM450.84 billion) in 2023, with imports from China amounting to US$56.69 billion (RM258.63 billion).

These imports predominantly consist of electrical and electronics products, machinery, and chemicals, underscoring the robust economic relationship between the two nations.

Meanwhile, Malaysia-China Business Council executive and acting director Datuk Alvin Tee Guan Pian highlighted an increasing interest among Chinese investors, particularly in the data centre industry.

“Malaysia is among the earliest countries in the region to venture into the digital economy. We established the Multimedia Super Corridor to accelerate the industry’s growth, and as we open our doors to investors, we need to ensure that we meet the local content requirements.

“We must ensure that wherever investors from China come in, the local content contribution is reasonable. We do not want to close our doors, but it must genuinely be a win-win situation,” he said.

Source: Bernama

Malaysia anticipates deeper collaboration with China in five key sectors — DPM

Science, Technology and Innovation Minister Chang Lih Kang is confident that more German companies will enter Malaysia to invest, following the recent major investment by Infineon Technologies AG.

He said that considering the many years of good bilateral relations between Malaysia and Germany, the relationship has become better now, especially after the recent visit by Prime Minister Datuk Seri Anwar Ibrahim to Germany this year.

“There are a lot of good German companies in Malaysia, including the recently announced major investment from Infineon.

“So, I can see that more German companies will (consider) joining them in Malaysia and hope that some of our businesses can also explore the market in Europe through Germany,” he told Bernama and RTM after delivering his keynote address at the 4th German-Malaysian Business Forum here today.

Chang said that Malaysia should dive more into the technology sector by working together with Germany, as Malaysia possesses a relatively complete ecosystem to do so.

“I think one of the areas that we can work together is, of course, technologically related, for example, with Infineon which is a big player in the semiconductor industry.

“In Malaysia, we have a relatively complete ecosystem, especially in Penang. So, I think we can work together and forge closer collaboration in the semiconductor sector,” he added.

Meanwhile, Chang, in his keynote address, said that the Ministry of Science, Technology and Innovation has collaborated with the Ministry of Higher Education and NVIDIA Corporation to launch the artificial intelligence (AI) sandbox initiative.

He noted that the initiative would facilitate the establishment of up to 900 AI startups, with 13,000 new AI talents to be trained by 2026.

“We aim to transition Malaysia into a knowledge-based economy by using AI as a key driver of innovation.

“The programme will not only provide Malaysians with new economic opportunities but also encourage entrepreneurship, attract foreign investments, and create high-value jobs in emerging AI-driven industries,“ Chang said.

The minister said that the potential of AI is that it can be used to increase productivity in multiple industries, but like any new technology, where there is opportunity, there is risk.

“This is why the AI governance and code of ethics is pivotal in establishing regulations and parameters for the technology to allow people to benefit from it while being aware of the risks and pitfalls,” he added.

Source: Bernama

More German companies will invest in Malaysia – Chang

AS geopolitical tensions escalate in the Middle East, the significance of the Regional Comprehensive Economic Partnership (RCEP) for Malaysia has come under renewed scrutiny.

With global trade routes potentially threatened, especially those vital for oil and gas, RCEP can be a crucial stabiliser for Malaysia’s economy. This agreement may buffer the nation from the escalating economic uncertainty that typically accompanies geopolitical strife, thereby maintaining stability in trade and investment flows.

RCEP, the world’s largest free trade agreement, includes 15 Asia-Pacific nations covering about 30% of the world’s population (2.3 billion people) and 30% of global economic and trade volume.

Since its inception, RCEP has been touted as a milestone that would lead to an increase in economic integration and support member economies.

For Malaysia, which has been working towards enhancing its trade ties and reducing economic vulnerabilities, this partnership can significantly bolster economic resilience and growth, providing a strategic hedge against global economic turbulence.

With the Middle East embroiled in new conflicts, the security of maritime routes through the Strait of Hormuz and the Suez Canal, critical for oil shipments, is increasingly uncertain.

According to the International Energy Agency, in 2022, Malaysia imported US$12.2 billion (RM57.8 billion) in crude petroleum, mainly from Saudi Arabia (US$5.54 billion), United Arab Emirates (US$1.53 billion), Brazil (US$1.07 billion), Kuwait (US$513 million), and China (US$397 million).

Disruptions in these supply lines can have significant ramifications for the country’s energy security and economic stability. This makes it imperative for Malaysia to explore alternative markets and diversify its trade to ensure a steady supply of essential commodities.

The significance of RCEP is highlighted by its provision of varied trading opportunities for Malaysia, extending beyond the unpredictable markets of the Middle East.

From January to March, exports to RCEP countries comprised 29% of Malaysia’s total exports, reaching around RM203 million. This statistic emphasises the agreement’s ability to reduce the risks linked to reliance on a single region.

By enhancing trade ties within Asia Pacific, Malaysia not only shields itself from potential supply disruptions but also creates new possibilities for diversifying exports and enhancing industrial collaboration.

Furthermore, RCEP enhances access to expansive markets such as China, which has a population of 1.4092 billion, and Indonesia, with 275 million people. Therefore, this economic integration can significantly benefit Malaysia as it deals with the complexities of global trade in the context of instability in the Middle East.

The simplified trade rules and unified standards under RCEP are likely to improve operational efficiency and lower expenses for Malaysian companies, thereby strengthening their export potential.

As RCEP continues to develop, its strategic importance to Malaysia is likely to grow, especially if Middle Eastern tensions do not subside.

While the immediate benefits of RCEP are clear, the long-term impact on Malaysia’s economic landscape remains to be seen. As such, the country’s engagement with this monumental trade pact will be critical in shaping its economic future amid an ever-changing global context.

To truly benefit from RCEP, Malaysia can focus on four strategic approaches:

1. Enhancing product standards to meet international benchmarks

Malaysia can take advantage of RCEP by elevating the quality and standards of its products to align with international benchmarks. This involves adopting best practices in manufacturing, improving quality controls, and ensuring that products comply with the environmental and safety standards prevalent in other RCEP member countries.

By doing so, Malaysian products can become more competitive and appealing in these markets. For instance, Malaysian electronics and agricultural products could undergo rigorous testing and certification processes to ensure they meet stringent quality requirements. This will not only increase their marketability but also potentially command higher prices.

2. Investing in sectors likely to see increased demand from RCEP countries

Malaysia can identify and invest in key sectors that are likely to see a surge in demand from other RCEP countries. These include sectors like digital technology, renewable energy, and healthcare.

By focusing on these areas, Malaysia can position itself as a vital player within RCEP, attracting foreign investment and creating new job opportunities.

For example, the growth of e-commerce and digital services across Asia offers a lucrative opportunity for Malaysia’s burgeoning tech industry to expand its reach.

Similarly, as more RCEP countries commit to green energy initiatives, Malaysia’s investments in solar panel manufacturing and green technology services could see heightened demand.

3. Fostering technological collaborations

Engaging in technological collaborations with fellow RCEP members can facilitate the transfer of new technologies and innovations across borders.

Malaysia can establish partnerships with enterprises and research institutions in countries such as China and Singapore, which are leaders in fields such as artificial intelligence, biotechnology, and fintech.

Such collaborations can include joint research projects, technology-sharing agreements, and innovation hubs where businesses from multiple countries work together on new technologies. These efforts can help Malaysian companies integrate cutting-edge technologies into their operations and enhance their productivity and competitiveness.

4. Developing human capital to compete effectively in new markets

To fully capitalise on the opportunities presented by RCEP, Malaysia needs a workforce that is skilled and adaptable to the demands of a changing global market. This can be achieved through an emphasis on education and training in areas critical to the future economy, such as digital skills, language proficiency, and cross-cultural communication.

Additionally, creating vocational training programmes that align with industry needs can ensure that the workforce is equipped with relevant skills, such as in advanced manufacturing and logistics management, making them more competitive in local and international markets.

By strategically implementing these approaches, Malaysia can strengthen its economic position within the RCEP framework and ensure sustainable growth and resilience against global economic fluctuations.

Source: The Sun

Pivotal role of economic partnerships

The Investment, Trade and Industry Ministry has called upon local companies to establish investment partnerships with companies from Saudi Arabia, especially in the services sector.

Minister Datuk Seri Tengku Zafrul Abdul Aziz said Saudi Arabia invited Malaysian companies to invest in the country to bolster bilateral trade and investment.

He said Riyadh’s Saudi Vision 2030 welcomes investment from countries like Malaysia, especially in the services sector.

“We have expertise in diverse sectors, including electrical and electronics, tourism, logistics, and facility management.

“This opens up opportunities for Malaysian companies to expand their business into the country,” he said after a dinner reception in honour of the Saudi delegation’s visit to Malaysia today.

In this regard, Tengku Zafrul said the Malaysia-Saudi Business Council has been established to boost business-to-business activities between the two countries.

Meanwhile, Saudi Commerce Minister Dr Majid Abdullah Alkassabi encouraged Malaysian companies to go to Saudi Arabia to explore potential business opportunities in the country.

He said his visit was of significant importance as it was a fact-finding mission where both parties sought to build connections and jointly discover the multitude of opportunities available.

“We are preparing a comprehensive plan… a cooperation plan based on Saudi Crown Prince Mohammed bin Salman’s direction to prepare a joint plan and to enhance the bilateral trade cooperation,” Majid said.

Source: Bernama

MITI urges local firms to form investment ties with Saudi Arabia

Trade between Malaysia and the United Kingdom (UK) has flourished over the years, standing at RM17.3 billion (US$3.79 billion) last year, according to Investment, Trade and Industry Ministry.

Its deputy minister Liew Chin Tong said the UK is Malaysia’s 21st largest trading partner, while the former ranks Malaysia as its 41st.

“The imminent ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by the UK marks a significant milestone, as it will be the first free trade agreement between our nations.

“Additionally, the establishment of a joint economic and trade committee, co-chaired by our respective ministers and scheduled for later this year, underscores our commitment to fortifying economic ties,” he said at the opening of the British Malaysia Chamber of Commerce’s (BMCC) new office in Tun Razak Exchange (TRX) here today.

Liew expressed confidence that the progress made will lead to significant growth in Malaysia’s bilateral trade and investment relations in the foreseeable future.

Ailsa Terry, British high commissioner to Malaysia, noted that 2024 marks a pivotal moment to elevate the longstanding trade relations between the UK and Malaysia into a contemporary partnership.

The transformation is anticipated to be marked by significant events such as the upcoming implementation of the CPTPP for the UK and the inaugural ministerial meeting of the UK-Malaysia Joint Economic and Trade Committee (Jetco).

“The chamber’s move into the green and modern office at TRX will support efforts to provide even better services to their members, and ultimately support the growth of our bilateral trade and creating economic benefits for both our countries,” she said.

The new office signifies a progression in the BMCC’s continuous efforts to promote trade, investment, and partnership between the UK and Malaysia, leveraging the growth opportunities offered by TRX.

Source: NST

Malaysia-UK trade ties flourished over the years: Liew Chin Tong

The Ministry of Investment, Trade and Industry (Miti) must be congratulated for bringing in US$2.2 billion (RM10.4 billion) in investments from Microsoft Corp, the tech giant’s largest outlay ever in its 32-year history in Malaysia.

In a statement, Microsoft says the investment includes building cloud and artificial intelligence (AI) infrastructure in Malaysia, creating AI skilling opportunities for an additional 200,000 people in the country, partnering the government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities, as well as supporting the growth of the country’s developer community.

Microsoft’s investment commitment is testament to Miti’s hard work and relentless efforts to attract investors. Without the ministry championing Malaysia among global investors, the country might be overlooked in favour of our regional counterparts.

Before the announcement was made by Microsoft chairman and CEO Satya Nadella on May 2, the tech giant disclosed a US$1.7 billion investment in Indonesia and said it was investing in a data centre in Thailand.

Had Miti not promoted Malaysia as an investment destination, other countries would have snatched a bigger share of the pie, leaving Malaysia with little to no investments from global giants.

Competition for investment among countries in this region is intensifying. Therefore, we must not rest on our laurels, but instead work harder to bring in quality investments that can develop and augment Malaysia’s capacity and capabilities.

Source: The Edge Malaysia

No resting on laurels for Miti

The Penang government is placing emphasis on high-impact sectors such as integrated circuit (IC) design, research and development (R&D), and global business services (GBS) to ensure the sustainability of the future economy.

Chief Minister Chow Kon Yeow said that the state government also aims to pioneer emerging fields that will not only benefit the state economy but also have positive spill-over effects for other states in the northern corridor.

“Furthermore, efforts to strengthen the Halal Industry, Halal Tourism and Islamic Finance Technology (Fintech) within Penang will contribute to diversifying investment flows and overall income into Malaysia,” he said.

He was speaking at the closing ceremony of the 2024 Northern Zone MADANI Rakyat Programme, officiated by Prime Minister Datuk Seri Anwar Ibrahim and held at the Sungai Nibong Pesta site near here today.

Chow also said that Anwar’s recent official visits to Saudi Arabia and several other countries hold the potential to assist Penang in achieving its objectives.

“I am hopeful that the Prime Minister will help the state in realising these aspirations by directing investment potentials to Penang, now hailed as the Silicon Valley of the East,” he said.

Source: Bernama

Penang focuses on high-impact sectors, diversifying investment inflows – CM

Prime Minister Datuk Seri Anwar Ibrahim emphasised the importance of Malaysia maintaining its competitive edge in attracting investors to the country, stressing the need for continual improvement in efficiency.

While acknowledging recent reforms aimed at expediting approval processes, he noted that there was still room for improvement.

He urged comparison not just with Malaysia’s past performance but also with other countries, citing Vietnam’s remarkable efficiency in approvals as an example.

“We cannot compare our level of efficiency today to five years ago. Our level of efficiency must be compared to that of other countries.

“Take Vietnam as an example. It emerged as a giant in the Asean region and its strength lies in its speed in approvals granted.

“In certain aspects, it even overtook us. I do not think that Malaysia should lose in terms of efficiency. This is because our strength lies in our workforce, our mastery in the English language, better training and more.

“As such, I hope that all state governments and local councils will give their fullest cooperation to the federal government. There are steps taken but more can be done. That is the input I have been getting,” he said.

Anwar said this at the closing of the northern region Madani Rakyat 2024 programme here today.

Present was Chief Minister Chow Kon Yeow, Communications Minister Fahmi Fadzil, Economy Minister Rafizi Ramli, Transport Minister Anthony Loke, Education Minister Fadhlina Sidek and Human Resources Minister Steven Sim.

Others included Dewan Rakyat Speaker Tan Sri Johari Abdul.

Anwar cited Infineon’s €5 billion investment in the Kulim Hi-Tech Park as evidence of the benefits of an efficient system.

“The company agreed to invest as there are less problems with the system there, which is more efficient, new and outside the norm,” he said.

He also expressed gratitude to the Chief Secretary to the Government, Tan Sri Mohd Zuki Ali, and other officials for their efforts in improving efficiency. 

Anwar urged continued reforms across all sectors, emphasising the need for swift approvals and efficient operations in seaports and airports.

He stressed the importance of addressing inefficiencies in services, noting that delays at airports like Penang International Airport or Kuala Lumpur International Airport were unacceptable.

“We cannot have people waiting for hours unless we are operating the airport in New York which is already a major attraction.

“But for the Penang International Airport or even the Kuala Lumpur International Airport, that cannot be forgiven.

Anwar emphasised the necessity of genuine efforts from both state and federal governments to improve efficiency, dismissing mere claims of doing one’s best as insufficient.

“And if there are discussions between the state governments and federal government, everyone will say they have done their best but that is not always the case,” he said, adding that this was what investigators were claiming.

Source: NST

Anwar calls for enhanced efficiency to attract investors

The construction of the East Coast Rail Link (ECRL) project in Selangor, Pahang, Kelantan, and Terengganu has reached an average of 65 per cent as of April, said Transport Minister Anthony Loke.

Particularly for Selangor, the project has progressed by over 26 per cent as of last month, which is in line with the schedule for preparing the ECRL line from Gombak to Port Klang in December 2027. Operations are set to begin in January 2028.

“Today, over 100km (of track) has been laid. I was told that each day, over one km of the railway track could be laid. The ECRL project is highly efficient.

“Each day, there is progress… by the day not by month, so that is why the project is running very smoothly.

“For your information, the ECRL network in Selangor, which is nearly 120km, will have five stations, namely the Gombak, Kapar, and Jalan Kastam Integrated Terminals for passengers only.

“The Bandar Serendah and Puncak Alam stations are connecting stations for passengers and cargo,” he said at the launch of the ECRL Career Carnival in Serendah today.

Loke added that the Serendah area will become the main station connecting the Port Klang and East Coast routes, making it an important logistics hub.

“The ECRL line, which crosses Selangor, can spur the tourism, hospitality, and business sector in Batang Kali, which also has the potential to become a railway transport centre to drive the industry.

“This can be achieved with the construction of ‘Pintasan Serendah’ to Port Klang which includes standard gauge tracks for ECRL and meter gauge tracks for KTMB, thus strengthening the competitiveness of rail freight transport, as well as the logistics sector and local cargo handling,” he said.

Land acquisition for the construction of the train infrastructure on the East Coast has been completed, while developers in Selangor have been given another year to resolve the matter.

Commenting on the Career Carnival, the minister said it is part of the Mesra ECRL Programme, which includes an open interview for the East Coast Rail Link Industrial Skills Training Programme (PLKI-ECRL) to offer training and job opportunities to locals.

The PLKI-ECRL initiative is expected to train 1,800 locals to participate in the construction phase of the project and 3,200 local trainees for the operation and maintenance phase in the future.

Source: Bernama

ECRL project progress in four states at 65 pct — Minister

With a majority of the RM170bil foreign investment deals inked with China last year rolling in high gear, more foreign investors are looking at relocating to Malaysia.

Leading trade groups said this is especially true amid trade tensions between Beijing and Washington, and the government must leverage the opportunity.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general Datuk Koong Lin Loong said Malaysia still possesses the qualities to stand out among the 10 South-East Asian countries in attracting foreign investments.

“Investors can take the queue from several of the huge foreign investment projects that are going on in Malaysia,” he said.

Among the notable projects were the RM80bil refining facility by China’s Rongsheng Petrochemical Co Ltd in Pengerang, Johor, and the RM30bil Automotive High-Tech Valley development and commercialisation by Zhejiang Geely Holding Group Co Ltd in Tanjung Malim, Perak.

Koong said that these projects, worth a total of RM110bil, are already operational.

He said he anticipates further investments after these positive developments.

“These projects make up a large chunk of the RM170bil record investment deals reached following Prime Minister Datuk Seri Anwar Ibrahim’s successful whirlwind trip to China in late March last year.

ACCCIM played a significant role as a strategic partner in Anwar’s visit to the world’s second largest economic powerhouse.

Chinese investors still find Malaysia appealing due to its favourable infrastructure, including points of entry and communication, as well as its receptive attitude toward foreign investors.

“When compared with Singapore, we have more land and are cheaper, giving us the advantage and cost-effectiveness, which is crucial in business decisions.

“The strategic location of Malaysia, within a six-hour flight to many destinations, further adds to its appeal.”

However, Koong noted that some Chinese companies may encounter setbacks due to bureaucratic processes in Malaysia.

“Streamlining procedures to reduce bureaucracy can further enhance Malaysia’s attractiveness to Chinese investors.

“This is particularly important in light of ongoing trade tensions between China and the United States, as Malaysia must strive to become the top choice for investors in South-East Asia,” he said.

Malaysia-China Chamber of Commerce president Loo Kok Seong said trade tensions between China and the United States had led to a re-evaluation of supply chains, particularly in semiconductor and electric vehicle manufacturing industries, among others. “As a result, some companies are relocating their operations to South-East Asia, including Malaysia.

“Malaysia stands to benefit by attracting foreign investment, enhancing technological capabilities, diversifying supply chains, fostering infrastructure development and nurturing an innovation ecosystem.

“These developments can contribute to Malaysia’s long-term economic prosperity and position the country as a key player in the global high-tech manufacturing landscape,” he said.

To fully leverage this opportunity, Loo emphasised the importance of developing a skilled and diverse workforce, establishing robust infrastructure, streamlining regulations, supporting research and development and embracing green technology and sustainability.

He also highlighted the need for regulatory clarity, competitive tax systems, infrastructure development and zero-emission efforts to improve Malaysia’s competitiveness in the global market.

“It is essential to maintain open communication channels with Chinese counterparts to address concerns, negotiate terms and identify areas of collaboration effectively.

“By being responsive to feedback and demonstrating a willingness to address issues raised by Chinese partners, trust can be built, and the partnership can be strengthened over time,” he said.

Loo added it is important to have efficient collaborations between trade groups and the government in promoting Malaysia and attracting more foreign direct investments.

When contacted, a spokesperson from Malaysian Investment Development Authority said the detailed foreign investment figures for the first quarter of 2024 would be released later by early June after obtaining the Cabinet’s approval.

Source: The Star

More FDIs set to flow in