Malaysia’s trade and investment prospects with Singapore will likely be bolstered with the passing of the republic’s leadership from Prime Minister Lee Hsien Loong to his deputy Lawrence Wong.

Economists contacted by Business Times also said Singapore was expected to use Johor even more to support its investments in the country, particularly given the republic’s good relations with His Majesty Sultan Ibrahim, King of Malaysia.

Lee, 72, is stepping down on May 15 after two decades in office, handing the reins over to  Wong, 51.

Malaysian Institute of Economic Research economist Dr Shankaran Nambiar expects Wong to continue Lee’s policies, particularly when it comes to trade and investment.

The emphasis will continue to be on growth, and that will mean ensuring that trade and investment are given serious consideration, Shankaran added.

“Therefore, Wong is expected to devote more attention to attracting foreign direct investment (FDI) and keeping the growth numbers on track. This will be more pronounced given the challenging external environment. 

“Singapore will want to deepen trade relations, although Malaysia’s exports are already being re-exported via Singapore,” he told Business Times.

Nambiar highlighted that given the good relations the King has with the government of Singapore and since Johor is a convenient hinterland for Singapore’s investments, one can expect greater use to Johor to support Singapore’s investments. 

This may take the form of housing and land development, but it will also extend to the location of investments in Johor.   

Wong might also see value in being a partner in Johor’s development as a hub for service providers, he said.

Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said the bilateral trade and investment relations had remain very stable over many leaders on both sides.

So, he noted that it would continue into the future under Wong’s administration.

“Singapore has an established and tested set of domestic and foreign policies. But it is also famous for being pragmatic and innovative.  The persistent global economic slowdown affects not only Singapore but all trading nations in Southeast Asia. 

“So, all of us would have to figure out how to transform our economies into more resilient ones and Singapore is usually the leading example in this,” he added.

The total trade between Malaysia and Singapore for the first half of 2023 amounted to US$301.2 billion (about RM1.29 trillion), reflecting a 4.6 per cent decrease compared to the same period in 2022.

Singapore and Malaysia were each other’s second-largest trading partners in 2022, with bilateral trade reaching U$83.53 billion. 

Singapore also ranked as one of Malaysia’s top sources of foreign direct investment, contributing 8.3 per cent to Malaysia’s total investments in 2022.

Early this year, Malaysia and Singapore signed an agreement to work together on the creation of the Johor-Singapore Special Economic Zone to be located in the state of Johor.

Additionally, both countries are also working on the proposed high-speed rail project that would connect Malaysia to Singapore. The project is currently being revived after being cancelled in 2021.

Meanwhile, Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said there would not be much difference in trade and investment relations with Singapore under Wong.

He noted that however, Wong represents the fourth generation, which is a departure from Lee’s generation and therefore, his administration style will likely be significantly different.

“More importantly, Wong needs to demonstrate his capacity to serve as PM, and he doesn’t have much time, perhaps less than a year before the general election in Singapore, possibly by the end of this year or early 2025. 

“To prove his capability, he will likely adopt a stricter approach and prioritise policies that benefit Singapore over its neighbors. This marks a notable difference, particularly in the context of relations with Malaysia and Singapore,” he added.

With Wong assuming office on May 15, Azmi said the era of Lee Kuan Yew’s family legacy in the political arena comes to an end. 

However, he noted that we must pay attention because Wong needs to demonstrate his ability to lead Singapore toward a better future. 

While Wong has displayed leadership as the deputy prime minister, these instances occurred under Lee’s administration.

“When a leader needs to establish their capabilities, they may implement policies that prioritise Singapore’s interests over those of its neighbours. It’s worth noting that Wong wasn’t the first choice to succeed Lee Hsien Loong, adding more pressure on him,” he said.

Source: NST

Incoming Singapore PM may use Johor as launch pad for more investments, says analyst

The Johor government approved RM113.7 billion in investments in the last two years, which is almost 20 per cent of the country’s total approved investments in the same period.

Johor Menteri Besar Datuk Onn Hafiz Ghazi attributed the state’s strategic and robust location as the main factor in achieving the investments.

Between 2022 and 2023, Malaysia’s overall approved investment was RM597.2 billion.

“In a post-Aidilfitri discussion today, the main focus was on the Johor-Singapore Special Economic Zone (JS-SEZ) implementation efforts,” read a post on Onn Hafiz’s Facebook.

A dialogue session with state-based industry players discussed several efforts, including incentives, potential sectors and areas that could be offered the opportunity to conduct their business and operations in the JS-SEZ.

The menteri besar is committed to replicating the Shenzhen-Hong Kong SEZ achievements in the state.

“To achieve Shenzhen’s success in becoming a thriving SEZ, all industry players must share the same agenda within a broader framework.

“We must ensure it is beneficial to the people, too, enjoys economic growth, while creating job opportunities,” he added.

The discussion was attended by state executive council members, Iskandar Regional Development Authority and Malaysian Investment Development Authority representatives, among others.

Source: NST

Johor govt approved RM113.7 billion in investments in last two years, says MB

The positive outlook and overweight ratings in the construction sector following the rollout of infrastructure projects nationwide continued to lift market sentiment.

As we enter the second quarter of 2024 (2Q2024), Budget 2024’s RM90 billion development expenditure allocation to fund projects should drive contract flows this year.

The projects include the Penang LRT, Pan Borneo Sabah Phase 1, MRT3, large-scale flood mitigation projects, Sabah-Sarawak Link Road, Kuching Urban Transportation System-Green Line, and water-related projects. Contract awards are expected to be forthcoming in the first half of this year.

Research houses RHB Investment Bank Bhd, Kenanga Research, Hong Leong Investment Bank (HLIB), and Rakuten Trade Sdn Bhd are broadly optimistic about the industry.

There are also plans to reinstate five more LRT3 stations in the Klang Valley. As for MRT3, the government is acquiring land with notifications of the identified land expected to kick in 2Q2024, finalised in the third quarter, and awards handed out starting 4Q2024.

Still along the public transportation vein, the Johor government will submit its proposal in late November 2024 to the Federal Government for Johor Bahru LRT to have three lines.

While there is much focus on the rail lines, some contractors are also hoping to strike gold in renewable energy-related initiatives such as the Corporate Green Power Programme.

Johor is also being touted as the fastest-growing data centre market in Southeast Asia. With all these goodies coming out, HLIB said they should drive contract flows this year.

RM70 billion budget allocation

Meanwhile, Master Builders Association Malaysia (MBAM) president Oliver HC Wee told Bernama that the budget allocation for the construction industry in 2024 is over RM70 billion.

Based on trends from previous years, MBAM expects this to add up to about RM100 billion, inclusive of the private sector, with private contracts comprising mainly warehouses, data centres and factories manufacturing semi-conductors.

“On the outlook, we have to remain neutral. Costs are rising, and there are many uncertainties even as the government improves policies at the macro level to bring down costs.

“At the same time, it is important to leverage innovations and technologies with industry stakeholders willing to move together towards digitalisation,” he added.

Although the industry is heading in the right direction, companies need to undertake changes, Wee said.

“Fairer forms of contracts should be in place as we seek better ways to conduct business.

“We believe a variation of price (escalation) provisions in a contract will allow for fairer risk and rewards between contracting parties against a fluctuating building material price backdrop. This will subsequently reduce the number of projects being abandoned,” he noted.

Industry players overview

Industry players are bullish. Kerjaya Prospek Group Bhd is optimistic about the construction industry’s growth post-COVID-19 despite various challenges, including rising raw material prices. Its FY2023 core profit leapt 20 per cent on higher construction and property billings.

Chairman Datuk Tee Eng Ho said projects could progress faster as the situation improves, with labour shortages no longer a concern.

Tee also announced the company’s plans to pursue new opportunities with Samsung C&T Corporation via a consortium, Samsung-KP JV, focusing on factory construction in Malaysia and opportunities in Penang’s Andaman Island project, estimated to be worth about RM2 billion. 

As for Varia Bhd, formerly Stella Holdings Bhd, its managing director, Datuk Benson Lau, is optimistic about sectoral growth.

The biggest winners are the Klang Valley LRT’s five new stations worth RM4.7 billion, the RM11.8 billion nationwide flood mitigation programme, and Penang’s RM10 billion LRT initiative, he told Bernama.

“The demand for commercial and residential buildings is rising as infrastructure projects and private investment increase. This positive momentum aligns with Varia’s growth prospects, positioning the company favourably for upcoming opportunities,” Lau said.

Varia, which previously signed a memorandum of understanding with Sungai Klang Link Sdn Bhd to embark on the Sg Klang Link elevated highway project, said it is currently in the early stages of planning and development.

“We are open to exploring opportunities to contribute to our growth trajectory. Our tender book currently stands at RM1.5 billion,” Lau added.

Varia also received a contract from Kator Construction Sdn Bhd to undertake the Klang River flood mitigation project in Seksyen 25, Shah Alam, which kicked off on Feb 1, 2024 with a timeline extended to Jan 31, 2029.

1Q2024 performance

The first three months saw solid performance, with the construction index on Bursa Malaysia at 193.83 on Jan 2, 2024. It expanded above the 200 level between January and March and stood at 223.17 on March 29, 2024.

Malaysia aims to transform its economic landscape via infrastructure projects and digitalisation, which have lifted infrastructure-related counters on Bursa Malaysia Bhd since the second half of 2023. 

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng told Bernama that construction stocks saw a 13.5 per cent year-to-date gain.

“In the past 12 months, the construction index surged 37 per cent. We expect the sector to be one of the best performers in 2024,” he said.

New contracts win to improve companies’ earnings

Kenanga Research said companies’ earnings should improve as work progress gathers momentum amid higher contract wins.

There should be a significant improvement in the sector’s earnings delivery versus 4Q2023 expectations, it said.

Here are some numbers to chew on. Gamuda Bhd’s 1Q FY2024 core profit jumped 35 per cent on higher construction billings from Sydney Metro West and maiden earnings from DT Infrastructure Pty Ltd. As for new job wins, Gamuda is leading with RM25 billion in 24 months. 

As for new job wins, Gamuda is leading with RM25 billion over 24 months, and IJM Corp’s RM3.62 billion year-to-date FY2024 has already exceeded its RM3 billion projection.

Sunway Construction raised its guidance on new job wins in FY2024 to RM3 billion, the same level as WCT Holdings Bhd.

Kerjaya Prospek Group Bhd has secured RM377.9 million in year-to-date job wins, and Kimlun Corp Bhd has bagged year-to-date RM133.6 million.

Source: Bernama

Strong spillover from mega infrastructure projects in Q2

Finance Minister II Datuk Seri Amir Hamzah Azizan is leading Malaysia’s delegation to an investor meeting in New York, United States to strengthen the country’s finances and facilitate investment.

The Finance Ministry (MoF) in a statement said the meeting is held in conjunction with Amir Hamzah’s attendance at the Spring Meetings of the International Monetary Fund and World Bank Group 2024 in Washington DC.

“Investors have shown a high interest in understanding the fundamentals and economic potential of Malaysia as well as the progress in implementing the Madani Economic Renewal agenda.

“Investor confidence is stronger due to the fiscal reforms implemented by the government, including deficit reduction, the Public Finance Act, Fiscal Responsibility, and targeted subsidies for electricity and water,” he said.

The meetings and dialogue sessions with financial investors and capital market players are held to provide insights into the current economic status and government planning to strengthen the country’s finances and facilitate investment.

Meetings with international investors such as fund managers and investment banks will also clarify the direction of Madani Economic Framework implementation.

Amir Hamzah also held engagement sessions with investors, and is also expected to meet with around 50 global investors from various industries and businesses in the US.

These engagement sessions are crucial to providing explanations regarding the progress of key government policies, including fiscal reforms to ensure fiscal sustainability and national debt.

Source: NST

Investor confidence high in Malaysia’s economic potential, says Finance Ministry

Investments from Japan to Malaysia are expected to expand further into new areas of retail, green and sustainable energy, digital industry as well as increase in capacity in traditional areas in the manufacturing sector.

Japanese Ambassador to Malaysia Katsuhiko Takahashi said Japanese companies view Malaysia as an attractive investment hub and are eager to do business in Malaysia.

While Takahashi may not be able to divulge the number of Japanese investments coming into Malaysia this year, he said based on recent trends, there will be a growth from an investment inflow of RM5.272 billion last year.

“Japanese companies are attracted to invest in Malaysia based on its cultural diversity, religious tolerance, good command of the English language and no major earthquake, tsunami or other disasters.

“As a result of the Look East Policy, there are many

Malaysians that can speak Japanese,” he told Bernama in an interview.

According to Takahashi, there are now 1,600 Japanese companies operating in Malaysia.

“We are the fourth largest investor in Malaysia after Singapore, Hong Kong and the US,” he noted.

He emphasised that Japanese companies are interested in expanding into the green energy sector, particularly in addressing climate change, in line with Malaysia’s aspirations to be carbon neutral by 2050.

Japanese companies Sumitomo Corp and Eneos inked a tripartite agreement with SEDC Energy, a subsidiary of Sarawak Economic Development Corp (SEDC), last year to establish clean hydrogen supply chain for local consumption and export to Japan.

He said carbon capture, utilisation and storage in clean energy is another potential area that Japan and Malaysia can collaborate.

The retail sector, according to Takahashi, has also attracted Japanese investors with the expansion of retail names such as Jonetz by Don Don Donki concept stores and Tsutaya bookstore.

“Another area is in the digital industry and the data centre for example with the setting up of Intelligent Centre Operations in Johor this year by NEC Corporation of Malaysia Sdn Bhd, a subsidiary of NEC Corporation, a Japanese information technology and electronics corporation,” he said.

In healthcare, he said Japanese companies such as Japanese conglomerate Mitsui & Co Ltd has invested in IHH Healthcare Bhd and Sumitomo Corporation in managed care services in guidance of medical costs.

In the Islamic finance and halal industries, he said, Japanese investors viewed Malaysia as a favourable hub.

Takahashi said Japanese companies are also expanding into traditional areas of investment in the manufacturing sector in Malaysia such as the extension of production facilities by two Japanese companies based in Malaysia last year, namely ROHM-Wako Electronics (Malaysia) Sdn Bhd and Taiyo Yuden (Sarawak) Co Ltd.

According to Takahashi, Malaysian companies are also investing in Japan as the Land of the Rising Sun is an attractive investment destination as a big market, good human resources and as one of the highest ranked research and development facilities in the world.

Malaysian companies that have successfully expanded their horizon to Japan are Aerodyne Group, a leading drone service provider and Pentamaster Corporation Bhd, an automation technology solutions and services provider as well as Berjaya Land Bhd in the tourism industry, Takahashi said.

He pointed out that Japanese economy is in a transitional period after a relatively quiet period for more than 25 years, with the government’s efforts to stimulate the economy in order to come out from a period of economic stagnation.

“We are starting to see a new economic situation, with the recent hike in salaries this year, which were the highest in 33 years, that motivated the end of negative interest rate regime since 2007 on March 18,” Takahashi noted.

Source: The Borneo Post

‘Investments from Japan will expand further’

With some Japanese multinational corporations (MNCs) looking beyond Singapore to base their regional headquarters due to the rising cost there, Malaysia has what it takes to position itself as a viable destination, say economists.

Sunway University economics professor Dr Yeah Kim Leng said Malaysia’s investment promotion efforts and its rising competitiveness in attracting multinationals to relocate from Singapore and elsewhere are gradually bearing fruit.

“Its well-developed physical, financial and logistics infrastructure, harmonious industrial relations, multilingual workforce and embedded global value chains are gaining increasing attention among foreign investors looking at opportunities in the dynamic Asean and Asian region as a whole,” he said.

By further enhancing government administrative efficiency and coordination effectiveness, as well as sharper policies focusing on facilitating trade and investment, Malaysia would become even more attractive as the next best alternative to Singapore, which is facing rising costs and growth constraints, he added.

“In addition to presenting opportunities for firms here to plug into the global value chains created by MNCs, domestic suppliers and service providers will need to up their game in terms of product and service quality, reliability and cost-efficiency.

“The efficiency of local supply chains will have a ‘crowding in’ effect that would further boost Malaysia’s appeal as a global service and manufacturing hub,” Prof Yeah added.

Economist Geoffrey Williams said despite sharing similar advantages with Singapore, such as the use of English language, high-quality workers and regional access, Malaysia has the edge over the city-state in terms of being cost-effective.

“There are also some good companies in key sectors such as technology and finance to work with in Malaysia.

“Against Indonesia and Vietnam, these advantages are also helping, but the Malaysian market is small. Vietnam is three times bigger and Indonesia is nine times larger.

“They are also opening up directly to MNCs,” he said.

Although the recent surge in applications and approvals for investments is positive, it must be converted into actual investments, Williams said.

“Historically, only 26% of foreign direct investment (FDI) approvals result in actual investment.

“So, the process must be streamlined with less red tape, quicker approvals of working permits, easier access to financial help and even to open bank accounts, and in general, a more welcoming low-tax, low-regulation, agile and competitive ecosystem is needed,” he added.

Malaysian Institute of Economic Research (MIER) head of research and senior research fellow Dr Shankaran Nambiar said by and large, Malaysia has “excellent infrastructure” although it will have to be constantly upgraded.

“All we need to do is to fine-tune some of our existing assets and put in place some structural changes. More could be done to reduce bureaucratic processes.

“Similarly, the offerings and roles of the central and state agencies can be brought into closer alignment,” he said.

More challenging would be to develop talent consistent with emerging technologies and to bring research and development (R&D) up to mark, he said.

“If we could attract FDI with our R&D capacity, that would be a real investment-puller,” Shankaran added.

Nikkei Asia recently reported that although Singapore is unlikely to be dethroned as the leading hub for Japanese companies, Malaysia and Thailand are potential alternatives.

The report also noted that printing ink maker Sakata Inx did not choose Singapore as its regional head office base, despite already having a presence in the region, but instead established it in Malaysia due to tax incentives.

According to the findings of a poll by the Japan External Trade Organisation released in March, among Japanese companies which had their regional headquarters in Singapore, 31% had partly relocated their functions to another country or were considering doing so.

In the 2019 edition of the survey, only 7.4% companies had indicated the same.

In a 2023 survey by the European Chamber of Commerce in Singapore, 69% of respondents indicated that they were willing to move some personnel out due to the rising cost of operations in the city-state.

Meanwhile, the Malaysian Investment Development Authority (Mida) reported a historic investment performance in 2023, with approved investments valued at RM329.5bil across various economic sectors.

InvestKL attracted a record-breaking RM8.7bil in FDI in 2023, a 300% jump from the RM2.79bil in 2022.

About 66% of these investments, valued at RM19.74bil, have already materialised. This translates into the creation of 27,000 executive jobs, of which 74% has been filled, said InvestKL.

It added that 12 leading global corporations from the Americas, Europe and Asia regions drove the FDI.

InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli said in March that the unprecedented FDI into Greater KL showcases the city’s attractiveness across diverse sectors such as technology, healthcare, finance and engineering, signifying a major achievement in efforts to attract high-value activities.

Source: The Star

Malaysia is next best bet – Country can position itself as viable alternative to Singapore

His Majesty Sultan Ibrahim King of Malaysia expressed his hope for increased investment from Chinese companies within Malaysia as this will lead to the creation of more job opportunities for the people in this country.

His Majesty expressed this sentiment when receiving the Ambassador of China to Malaysia, Ouyang Yujing, who was accompanied by FAW Hongqi Global president Wang Lingyu, as well as renowned businessmen Tan Sri Lim Kok Thay and Datuk Lim Chee Wah today.

The audience with Sultan Ibrahim was to discuss bilateral relations between Malaysia and China as well as current issues related to both countries.

“In the meeting, His Majesty shared his thoughts on the direction of diplomatic relations between the two countries and emphasised the importance of identifying broader cooperation opportunities,” according to a post on Sultan Ibrahim Sultan Iskandar Facebook page today.

In his post, Sultan Ibrahim highlighted China’s status as one of the world’s major economic powers and emphasised its significant role as a key trading partner for Malaysia.

As such,  the King hopes that Malaysia will capitalise on its unique capabilities to maximize and enhance trade volume, foster technology exchanges and further expand its exports to China.

During the same meeting, His Majesty was presented with the Hongqi L5, a car manufactured in China, making him its inaugural owner worldwide.

This retro-styled vehicle, crafted by the FAW Group, is utilised by China’s top leaders during state and diplomatic events.

Source: Bernama

King expresses hope for increased investment from Chinese companies in Malaysia

Prime Minister Datuk Seri Anwar Ibrahim said he is confident in Malaysians’ ability to realise the country’s potential in economic development, especially in high-value investments. 

Sharing a video report from the World Economic Forum Facebook page on Malaysia’s growing potential in the semiconductor industry today, Anwar said the Madani government is committed to building a new, high-tech and innovation-driven future for the country. 

“With high-value investments from global firms, resulting in high-paying jobs for more Malaysians. 

“I have absolute confidence in the potential of every Malaysian, in the bright prospects for our economy, and our shared future as a nation,” Anwar posted on his Facebook account.

The World Economic Forum video report highlighted that Malaysia, especially Penang, is emerging as a new semiconductor powerhouse after the state secured US$12.8 billion (US$1 = RM4.76) in foreign direct investment in 2023.

Source: Bernama

PM Anwar: Malaysians well-equipped to unleash economic potential

The unity government is committed to stimulating the country’s economic growth through building new, high technology and innovation-driven future for the nation, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who is also the Finance Minister, said high value investment from global firms will result in the creation of high-paying employment opportunities that will benefit the people in the country.

“I have absolute confidence in the potential of every Malaysian, in the bright prospects for our economy and our shared future as a nation,” said Anwar in a posting on his Facebook account today.

The social media posting was accompanied with a Facebook post by the World Economic Forum, which highlighted Malaysia as the new semiconductor powerhouse.

“Malaysia’s semiconductor industry is booming. It is centered in Penang. Major players from Europe and the United States are setting up shop or expanding their existing operations (here in Malaysia).”

The World Economic Forum, in the same social media posting, noted that Malaysia has become a destination for firms seeking new options to set-up and expand their operations.

“In 2022, Penang attracted US$12.8 billion in foreign direct investment which is more than in the previous seven years combined.

“Intel, for example, has invested US$7 billion in a new plant in Penang.”

Source: NST

PM vows to propel country’s economic growth through innovation

More Japanese multinational corporations (MNCs) are choosing Malaysia and Thailand over Singapore as the place for their regional hub to reduce costs and take advantage of new perks, according to Nikkei Asia.

One of these is printing ink manufacturer Sakata Inx, which set up a regional office in Malaysia in February ahead of operations starting either at the end of 2024 or early 2025.

Speaking to Nikkei, a Sakata spokesperson cited “tax advantages” as the reason for Malaysia’s selection for the regional head office.

This takes advantage of a Budget 2024 global service hub tax incentive, in which companies that set up regional headquarters here will receive preferential income tax rates of 5% to 10% for up to a decade among other perks.

Nikkei then said that Thailand is another choice for regional headquarters for companies seeking to also enlarge sales and production, adding that Nissin Foods Holdings moved its Southeast Asian headquarters from Singapore to Thailand in 2020.

It added that out of Singapore’s neighbours, Thailand is the most popular as a poll in March by the Japan External Trade Organisation (Jetro) found that 19 respondents who were planning or considering a move were considering heading there, while five chose Malaysia.

Quoting Jetro Singapore office deputy managing director Keisuke Asakura, Nikkei said that this is because Thailand has a concentration of production sites, and there is activity to relocate sales functions away from Singapore and its small market.

According to the Jetro poll’s results, out of the Japanese companies with regional headquarters in Singapore, 31% had partly relocated their functions to another country or were considering doing so.

“The share was up significantly from 7.4% in the fiscal 2019 survey,” said Nikkei.

It also added that many Japanese companies have moved specific functions such as sales or corporate planning out of Singapore instead of uprooting completely for its Southeast Asia neighbours.

On this, Asakura said that “partial relocations to Thailand are expected to accelerate for the purpose of reallocating functions, rather than full transfers” and cited rising office rents and other costs in Singapore.

Nikkei then added that Japanese companies are not alone in expressing concerns about Singapore’s rising costs, citing a 2023 survey by the European Chamber of Commerce in Singapore.

It said that while Singapore still has the advantage in location, language proficiency and financial services, 69% of respondents said they would be willing to move some personnel out, given the rising cost of operations.

This is not the first exodus from one Asian country to another, as companies moved from Hong Kong to Singapore following the 2019 protests.

However, when it comes to Singapore, the exodus will likely be limited to sales and similar functions for the time being.

Source: The Star

Malaysia’s tax incentives attracting Japanese corporations to set up regional hubs, says report

Malaysia and Pakistan have agreed to explore opportunities to strengthen ties between the two countries, especially in trade and investment, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said Pakistan’s Prime Minister Shehbaz Sharif conveyed the matter during a phone call he received from his Pakistani counterpart last night.

“During the phone conversation, we both wanted to explore opportunities to strengthen Malaysia-Pakistan ties, especially in the field of trade and investment.

“Praying that relations between Malaysia and Pakistan will continue to grow for mutual benefit, Insya-Allah,” he said in his Facebook post today.

He said that he also welcomed Shehbaz’s proposal to export halal meat from Pakistan to Malaysia.

Also discussed were various regional and international issues, including the situation in Gaza and Afghanistan.

“PM (Prime Minister) Shehbaz also praised Malaysia’s stance on the Palestinian issue,” he said.

Anwar said the two leaders also expressed hope that the ties between Malaysia and Pakistan would continue to be strengthened and Shehbaz also reiterated his invitation to Anwar to undertake an official visit to Pakistan as soon as possible.

The two leaders also exchanged Aidilfitri greetings.

Source: Bernama

Malaysia, Pakistan agree to strengthen ties in trade, investment – PM

There is no reason for Malaysia to not ascend to high-income status by 2030, according to Asean+3 Macroeconomic Research Office (Amro) chief economist Khor Hoe Ee, citing the recent surge in foreign investment inflows into the country, which is expected to boost economic growth in years to come. 

Khor underlined that Malaysia charted surges in foreign direct investment in 2021 and 2022, which will aid economic growth when realised.  

“So, we are optimistic that as long as they (Malaysia) maintain fiscal and monetary discipline, new inflows of investments from abroad will be able to help them raise the growth rate and reach the high-income level that they aspire to,” Khor said during a press conference for the launch of the Asean+3 Regional Economic Outlook (Areo) 2024 report on Monday.

“Malaysia has a target to break through the middle-income trap and become a high-income economy by the end of the decade, and there’s no reason why it cannot do that,” he added.  

According to the Malaysian Investment Development Authority, Malaysia posted a record-high FDI of RM208.6 billion in 2021, followed by RM163.3 billion in 2022 and RM125.7 billion in 2023.

Meanwhile, Amro group head and principal economist Allen Ng noted that Malaysia’s current nominal gross domestic product (GDP) per capita stands between “US$11,000 and US$12,000” — a gap away from the “US$13,000” (RM61,825) high-income economy benchmark set by the World Bank.

“So, it’s very reasonable for us to expect Malaysia to be able to make that leap within this decade,” he said. 

In 2023, Malaysia’s GDP per capita stood at US$11,141, while the World Bank’s high-income threshold was set at US$13,845.

“But, I think the more important thing that we want to highlight in our report is that Malaysia, like many other regional countries, continues to face very significant structural headwinds,” Ng said.

“Crossing that line to become high-income doesn’t imply that you are a developed economy. You need to do a lot more to manage some of the structural headwinds,” he added.

Long-term challenges to growth

Like other countries in the Asean region, Ng said that Malaysia is not exempt from common long-term challenges to economic prospects, noting that there is a need to manage its ageing demographic, productivity growth and the skills of its workforce.  

According to the Areo 2024 report, Malaysia is expected to see a higher rise in the average age of its labour force among Asean+3 — Asean plus China, Japan and South Korea — peers, with the average working age expected to rise by four years to 40 by 2050 from 36 in 2021.

This is expected to have an inherent negative impact on productivity, the report said. 

In tandem, the report noted that Malaysia’s public healthcare system’s one-size-fits-all fee structure and reliance on a single source of tax financing have contributed to prolonged underinvestment in health and the health budget that no longer matches the reality of the country’s changing demographics. 

Coupled with a fertility rate of 1.8, the report said Malaysia is likely to rely on net migration as a driver of population change in the future.

Source: The Edge Malaysia

Malaysia to ascend to high-income status by 2030, says Amro

Foreign direct investment (FDI) is crucial and should be further stepped up to bolster the electrical and electronics (E&E) industry, a vital pillar of the nation’s economy, according to HSBC Malaysia.

The bank’s head of global banking Christina Cheah told StarBiz investments by major international companies and a strong E&E ecosystem have contributed to Malaysia’s rise to prominence as a significant hub for the global chip assembly, testing and packaging processes.

At the same time, she said the expansion of sectors like electric vehicles (EVs), renewable energy, aerospace and the digital economy would support the demand and growth of the wider E&E ecosystem.

According to HSBC Global Research, electronics have fuelled substantial investment since the Covid-19 pandemic, accounting for 64% of Malaysia’s total manufacturing FDI in 2023.

It said Malaysia has been topping Asean as one of the main beneficiaries of consistent and quality FDI inflows, as much as 6% of gross domestic product as of the third quarter of financial year 2023. And more than half of the investments have flown into its manufacturing sector, where arguably a large share is concentrated in the electronics sector.

“To draw greater investments into the E&E sector and for the country to move further up the E&E value chain, intensifying efforts to revitalise the industrial sector and drive new economic growth as highlighted in the country’s New Industrial Masterplan 2030 (NIMP 2030) will be crucial.

“This will involve creating augmented capabilities in higher value adding production areas to support the E&E industry’s next phase of expansion. Additionally, improved tax incentives to catalyse the setup of innovation hubs and attract talent to work in the research and development segment are needed to enhance outcomes for the country.

“Malaysia’s goal of becoming an integrated hub for the E&E industry would also be supported by strengthening the capabilities of small and medium enterprises and the vendor ecosystem surrounding the sector.

“Effectively capitalising on free trade agreements such as the Regional Comprehensive Economic Partnership, Comprehensive and Progressive Agreement for Trans Pacific Partnership and others will be fundamental to driving export growth into the sector,” she noted.

For Malaysia, Cheah said there are benefits in opening up market access to both strengthen cross-border trade and economic ties with free-trade agreements partners to spur greater investments and help local businesses expand internationally.

She said implementing further reforms to make it easier for multinationals to invest in the country and improve ease of doing business while also promoting sustainable practices would also be key to attracting greater FDI. This aligns with the strategies laid out in the Malaysian government’s National Energy Transition Roadmap (NETR) and the NIMP 2030, she added.

Furthermore, Cheah said banks such as HSBC are uniquely positioned to partner with the government and clients as they look to establish and grow their presence both into and within Malaysia and beyond and can help build stronger and more connected trade and investment flows.

Separately, she said as one of the leading E&E manufacturing hubs in Asean, Malaysia has the potential to lead in producing high-value E&E parts and components for EVs, servicing the whole automotive supply chain, comprising semiconductors, sensors, automotive electronics, transceivers, batteries, and vehicle assembly.

“Malaysia has ramped up its efforts to attract greater investments into the EV sector, by introducing supportive policy measures, to boost the country’s position as a leading E&E manufacturing hub in Asean and a key link in global supply chains. Among the tax breaks that will stimulate increased investment in the automobile sector are pioneer status and investment tax allowances.

“With reduced initial investment costs, businesses will find Malaysia to be a more alluring destination to start or expand their manufacturing operations,” she said.

On top of increasing its efforts to encourage more foreign investments in EV production, the government has also introduced policies to push the uptake of EVs in the domestic market inclusive of road tax exemptions for EVs along with subsidies for EV charging infrastructure purchases by consumers. Malaysia’s NETR for instance targets to have the penetration of electrified vehicles (including hybrids) and four-wheeler share of the vehicle fleet reach 80% by 2050.

Meanwhile, Cheah said to create the administration and infrastructure needed to draw in additional FDI into targeted industries and accelerate the development of the overall E&E sector and elevate the country’s position in the EV value chain, banks would remain crucial partners with the government.

“We continue to work closely with the national investment promotion agencies such as Malaysian Investment Development Authority and InvestPenang, chambers of commerce and business communities to support the wider growth of the E&E industry in the country.

“To unlock significant flows of capital required to build a resilient EV ecosystem, it is crucial to bring together public and private finance.

“A clear articulation of public sector support through the policy framework and financing available from the government can catalyse private investment by reducing the risk profile of EVs and the infrastructure required to enable its sustainable development.

“By providing the funding necessary to support the growth of the EV ecosystem and meeting the needs of the whole value chain, banks can play a crucial role in promoting more EV adoption,” she said.

Source: The Star

Healthy FDI inflows key

Malaysia has witnessed the emergence of numerous new plants, indicating the enduring resilience and opportunities within its industrial sector despite the post-pandemic closures of certain factories.

Samuel Tan, executive director at KGV International Property Consultants, said the openings symbolise elements crucial for economic recovery such as job creation and the potential adaptation of industries to evolving market demands and emerging technologies.

He said the depreciation of the ringgit presents a notable competitive edge, encouraging investors to channel their investments into Malaysia and leverage it for exporting goods overseas.

“The closure of Goodyear Malaysia is a wake-up call for the stakeholders not to take things for granted. Even though Malaysia has many selling points that attract international investors looking to relocate some of their manufacturing plants outside China, it is facing stiff competition from other Asean countries, such as Vietnam and Indonesia.

“However, it is important to note that while some plants have closed in Malaysia, many foreign companies have either relocated here or expanded their operation in Malaysia,” he told Business Times.

Tan emphasised the necessity of consistently monitoring investor requirements and promptly addressing their concerns to sustain this positive momentum.

He also underscored the necessity of bolstering domestic direct investment (DDI) to serve as the country’s pillars of growth.

According to him, 93 manufacturers had ceased operations between 2018 and July 2022, with 17,648 jobs lost.

However in the same period, 3,893 factories were approved creating 331,509 new jobs, with an investment value of RM503.3 billion.

Of the RM503.3 billion, 70 per cent or RM388.2 billion were from foreign direct investments (FDI) while 22.9 per cent or RM115.1 billion were DDIs.

“This shows that the government is continuously adopting proactive measures to attract investments for various sectors. This includes streamlining strategies to ensure that both foreign and domestic investors to invest in Malaysia instead of moving to other countries,” he said.

Based on a survey conducted by the American Chamber of Commerce, American multinational corporations (MNCs) maintain a positive outlook on Malaysia’s economic potential, recognising it as a prime destination for investment and growth.

In the 2022/2023 survey, 81 companies participated, with 65 of them being American MNCs. Notably, half of the respondents, totaling 42 companies, operate in the manufacturing sector, with a predominant focus on electrical and electronics manufacturing.

The survey revealed that these MNCs have injected RM172.6 billion in FDIs into Malaysia by the end of 2023, demonstrating their enduring commitment to the country, which traces back to the 1950s.

Furthermore, the survey highlighted that the 81 participating companies collectively employ 148,778 individuals, with 89 per cent of them being Malaysians.

These companies contribute significantly to the economy by paying RM11.7 billion in salaries.

Additionally, they contribute to their employees’ future security by allocating RM1.3 billion towards the country’s Employee Provident Fund and Social Security Organisation.

Commenting on the findings, Tan emphasised Malaysia’s historical significance as a major recipient of foreign direct investment, particularly in sectors such as manufacturing, services, and technology.

“The attractiveness of Malaysia as an investment destination depends on various factors including government policies, economic stability, infrastructure development, ease of doing business, and geopolitical factors.”

Tan said many MNCs on the global front have either relocated, expanded, or closed their operations post-Covid-19 and due to the changes to the geopolitical landscapes and investment environments.

“Malaysia has experienced all the above. The recent announcement by Goodyear Malaysia to shutter their plant in the Shah Alam, which opened in 1972, is part of its Goodyear Forward corporate restructuring program, aimed at delivering US$1 billion in cost reductions by 2025. It is not the end of the era for Goodyear Malaysia,” he said.

Tan noted that Malaysia’s competitive edge surpasses that of its neighbouring countries, largely owing to the government’s proactive initiatives and policies.

Measures such as the New Industrial Masterplan (NIMP) 2030 have significantly attracted more investors to the country, he said.

Tan also highlighted the National Energy Transition Roadmap (NETR) as another noteworthy policy capable of facilitating fresh investments across various sectors, particularly in renewable energy. This encompasses the establishment of solar farms and the implementation of energy systems within industrial parks, specifically designed to be eco-friendly.

Such endeavours aim to further enhance Malaysia’s attractiveness to FDIs, he said.

Meanwhile, Dr. Yeah Kim Leng, a professor of economics at Sunway University Business School, said it is normal for companies to enter and exit the market in a free market economy, according to

He noted that it is also typical to witness expansion and contraction within individual industries.

However, widespread and persistent closures of companies and declines in industries, without a simultaneous emergence of new and higher-value firms and industries, would raise concerns, he told Business Times.

“It indicates an erosion or loss of the country’s competitiveness and this will be reflected in slower economic and income growth, rising unemployment and declining standard of living.

“The Goodyear case is unique and specific to the tyre industry. Malaysia’s other industries especially E&E, machinery and equipment, chemicals and most service industries are expanding at a healthy pace,” he said.

Yeah added that a dynamic and healthy economy will undergo structural change whereby weaker firms and industries are forced out by competition and replaced by stronger ones in the well-known process called “creative destruction”.

Source: NST

Malaysia shows resilience and opportunities in attracting investments

The Sabah government is seeking investment collaboration with the Australian government.

State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said that the potential sectors include food industry, biomass, mining and green manufacturing.

“Her Excellency Danielle Heinecke and I have identified several areas of mutual interest and potential collaboration, laying the groundwork for initiatives that will benefit both parties in the future.

“This visit marks a significant step towards strengthening bilateral relations and fostering mutually beneficial cooperation,” he said in a statement after visiting the new Australian High Commissioner to Malaysia in Kuala Lumpur.

Phoong had paid a courtesy visit to Her Excellency Danielle Heinecke, the newly appointed Australian High Commissioner to Malaysia.

The Luyang assemblyman also expressed the significance of strengthening ties between Sabah and Australia, given the strong cultural and educational connections between the regions.

He also praised Australia’s efforts in advancing renewable energy, particularly in regions like South Australia and Canberra, where some areas have achieved 100 per cent renewable energy generation.

He added that Sabah was eager to learn from Australia’s successes in this field as Sabah had recently gained jurisdiction over energy from the federal government.

“I also welcome Australian enterprises to explore investment opportunities in Sabah.”

He cited similarities between the two regions’ lengthy coastlines and the potential for collaboration in desalination technology.

“I am also hoping to enhance air connectivity between Sabah and Australia, particularly in the Perth-Kota Kinabalu route, to facilitate travel and strengthen people-to-people ties.”

Source: NST

Sabah seeks investment collaboration with Australian govt

RM13.67bil worth of ventures clinched last year set to generate 14,000 employment opportunities

PENANG secured RM13.67bil in investments and created more than 14,000 job opportunities last year through a joint effort between the Federal Government and the Northern Corridor Implementation Authority (NCIA).

Penang Chief Minister Chow Kon Yeow said NCIA played a key role in facilitating investments, thus supporting investment growth.

He believes programmes such as Northern Corridor Economic Region (NCER) Technology Innovation Centre (NTIC), which is designed to bolster the industrial ecosystem and nurture talent, will strengthen Penang’s position as a regional technology and innovation hub.

He thanked investors for their trust in the region’s long-term prospects.

“Penang is also well-positioned to attract foreign investors, given its investment-friendly atmosphere,” he said as reported by Buletin Mutiara during a certificate presentation ceremony to five companies involved in the NTIC Centre of Excellence (CoE) programme.

The five companies honoured were GF Technology Sdn Bhd, Elliance Sdn Bhd, IME Technology Sdn Bhd, Visionlytics Sdn Bhd and Easy Park Machinery Sdn Bhd.

NCIA chief executive officer Mohamad Haris Kader Sultan said the NTIC building in Bayan Lepas was expected to be completed by mid-2024.

At another event, Chow said Penang remained steadfast in upgrading its infrastructure to attract more investments.

He said the plans included addressing traffic congestion, expanding the Penang International Airport (PIA), implement the Light Rail Transit (LRT) railway project and expediting the Perak-Penang Water Scheme.

He added that the state would work closely with various stakeholders, including the Penang Foundry and Engineering Industries Association (PENFEIA).

“We strive our best to address the concerns raised by them.

“We hope to provide an ideal business ecosystem for stakeholders to ensure Penang prospers further,” said Chow during the PENFEIA 22nd New Committee and Advisors Board swearing-in ceremony held at a hotel in Bukit Mertajam.

He thanked PENFEIA for contributing to the state’s growth and for its role as a bridge between government agencies and manufacturers.

“Penang has always been one of the top three states in Malaysia in terms of economic prowess, growth and investment attraction.

“The manufacturing sector, being the backbone of the country’s and state’s economies, stands out as one of the leading contributors,” he said.

PENFEIA president Datuk Richard Teh said he looked forward to the Penang LRT project and affirmed the industry’s commitment to supporting the state.

Source: The Star

Tech investments, jobs grow in Penang

Johor continues to record positive investment figures through the first quarter of this year, despite the recent decline of the ringgit against the US dollar.

Johor Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said the state recorded 200 high-impact projects, that included foreign investments, during the first quarter period.

“Until March 31, the state government has approved more than 200 projects.

“The four sectors that have received the most investment are electrical and electronics manufacturing, food processing, chemicals and petrochemicals.

“Despite the decline in the ringgit’s value, the rate of economic growth and investment in the state still showed an increase,” Lee told reporters after the Rahmah Ramadan Bazaar Walkabout Programme and breaking fast event at Taman Perling here yesterday.

Also present was the Domestic Trade and Cost of Living Ministry’s state director Lilis Saslinda Pornomo.

Earlier, Lee was commenting on Johor’s promising investment figures despite the ringgit’s depreciation which usually signals the likelihood of lacklustre economic growth.

The Paloh assemblyman said that Johor’s promising development shows that the state government is confident of surpassing the record of 751 approved investment projects worth RM43 billion recorded throughout the past year.

He added that the state government is also optimistic about a rapid economic recovery through several large infrastructure projects that are in the works, including the widening of the North-South Expressway which will start in June, followed by the widening of the Senai-Desaru Highway which will start in September.

“At the same time, we will also be co-signatories for the Malaysia-Singapore agreement on the Johor-Singapore Special Economic Zone and the special financial zone initiative in Forest City.

“With the various infrastructure development as well as private sector cooperation, we expect Johor’s economy to improve and to some extent contribute to the national economy,” he said.

Last month, it was reported that the recent depreciation of the ringgit was largely driven by the strengthening of the US dollar and the uncertainty of China’s economic growth.

The Finance Ministry said that this factor also affects other regional currencies.

Source: Malay Mail

Johor exco says state continues to record positive investment numbers despite ringgit’s decline

The government is calling on local companies to explore new markets via the country’s free trade agreements (FTAs), said Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz.

The minister said the Malaysia External Trade Development Corporation (MATRADE) has been tasked to focus on securing new markets.

“We are also looking at the EU now and we want to initiate discussions on the EU-Malaysia FTA. I hope the FTA will bring in something. Soon (we are also going) to resume the FTA (talks) with South Korea,” he said at the ministry’s breaking of fast event with orphans, organised by Mamee-Double Decker (M) Sdn Bhd.

Speaking on the halal industry, Tengku Zafrul said the industry is an important part of MITI’s focus via the Halal Development Corporation (HDC) and that the companies involved should feel free to work closely with the agency in expanding their businesses in this area.

“We just did a roadmap for HDC for halal development. The target for the global halal market is worth US$5 trillion and we want to make sure that we capture it as we are in a good position (to capture the market share),” he added.

Source: Bernama

Govt calls on Malaysian companies to take advantage of FTAs and explore new markets

The East Coast Economic Region (ECER) Development Council (ECERDC) has realised investments totalling RM41.4 billion up to March 2024, or 84 per cent of the RM49 billion target under the ECER Master Plan 2.0 (EMP 2.0).

These investments have created 68,000 job opportunities and 23,000 entrepreneurial opportunities in ECER, Prime Minister Datuk Seri Anwar Ibrahim said in a post on his Facebook page today.

“During the same period, ECERDC also achieved RM55.2 billion in committed investments, or 79 per cent of EMP 2.0’s target of RM70 billion,” he posted after chairing the first ECERDC meeting for 2024, which was also attended by the Menteris Besar who sit on the council.

Anwar, who is also the Finance Minister, said he emphasised the important role played by economic corridor authorities in investment facilitation along with the Malaysian Investment Development Authority.

He said governance for planning and completing projects through the economic corridor authorities also needs to be refined by the relevant ministries prior to approvals.

Therefore, the meeting has agreed to establish an executive committee (exco) to study and make decisions on all operational matters for ECER development.

“The formation of this exco will enable the ECERDC to focus more on strategic and policy matters in the ECER socioeconomic development,” he added.

Source: Bernama

PM: Investments worth RM41.4b realised by ECERDC up to March 2024

The country recorded foreign investment amounting to RM188.4 billion last year, marking a 15.3% increase from 2022, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said domestic investment contributed RM141.1 billion, reflecting a 35.1% increase from the previous year.

Foreign investment accounted for 57.2% of the total investment of RM329.5 billion approved in 2023, while domestic investment represented the remaining 42.8%.

“We aim to expedite the realisation of approved investments to maximise their spillover effects on the national economy.

“By actualising the approved investments, we can create better job opportunities with higher wages for Malaysians,” Liew said during a question-and-answer session in the Dewan Negara on Monday.

He was replying to Senator Datuk Lim Pay Hen’s query regarding the amount of investment successfully secured by the government throughout 2023.

According to Liew, the country previously recorded high investment amounts without prioritising localisation.

“This time, the government aims to ensure that incoming investments generate quality jobs with higher wages, and prioritises localisation to benefit local entrepreneurs from foreign investment,” he added.

Source: Bernama

Malaysia saw RM188.4b foreign investment, RM141.1b domestic investment last year, says Liew

The United States (US) Ambassador to Malaysia Edgard D Kagan has expressed confidence in the continued investments of American firms in Malaysia, attributing their interest in the country’s market potential and its integration into global trade networks.

He underscored the enduring economic partnership between the US and Malaysia and highlighted the significant investments and job opportunities generated by American companies in the region.

“We are very proud that US investments in Malaysia have created over 300,000 jobs,” he said on Bernama TV’s The Nation programme on Monday.

He said Malaysia has benefited extraordinarily from global trade and has prospered as a result of its engagement in international trade.

“One of the things that became very clear during the pandemic was that there were challenges in areas, for instance, like supply chains, which traditional trade didn’t really address,” he said.

Kagan also highlighted the importance of Malaysia’s participation in the Indo-Pacific Economic Framework (IPEF) and emphasised Malaysia’a role in shaping international trade norms and standards.

IPEF encompasses 14 countries in the Indo-Pacific region, representing about 40% of global gross domestic product (GDP).

It was set up under US President Joe Biden’s administration to address long-term economic issues, enabling partners to nimbly respond and keep pace with new global challenges and opportunities.

The 14 countries are Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the US and Vietnam.

He said these countries are extraordinarily important and are not limited to those that are part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comprising Malaysia, Vietnam, Brunei, Singapore, Indonesia, Thailand and the Philippines.

“We are going to grow,” Kagan said, referring to the IPEF.

“I think that having a seat at the table, helping shape the outcomes, reflects Malaysia’s long-standing engagement on trade,” Kagan said.

He also pointed out that Malaysia’s long-standing engagement in helping set the norms that govern international trade sends a signal to investors that Malaysia wants to be part of setting the highest possible standards.

“You can see the impact of that by the initiatives, the additional flows of investment from American companies into Malaysia since the IPEF was announced,” he said.

Kagan also highlighted the strong US-Malaysia economic ties, citing over RM150 billion worth of foreign direct investments (FDIs) since 2021. The US is the top investor in Malaysia.

Source: Bernama

Malaysia’s market potential drives continued US investments — Ambassador

The implementation of targeted subsidies in the future, as considered by the government, will not affect foreign investments in the country, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the implementation, if carried out, would not affect foreign investments because investors have invested for the long term.

The investors, he said, focus more on looking at the policies as well as national policies that are consistent before deciding to invest in this country.

“For example, I mention the semiconductor sector…this sector started in the 1970s and it has been 50 years, and that is the focus for our investors to see how the country’s policies are, if consistent, they will invest.

“In terms of costs, we are still low compared to other countries because most companies do not receive targeted subsidies.

“Therefore, even if the subsidies are withdrawn for large companies, they and also investors will compare us with other countries, and our country is still attractive in terms of costs,” he told reporters after the Ihya Ramadan and Iftar event at Masjid Jamek Al Ansar, Felcra Changkat Lada near here, today.

Tengku Zafrul said this when asked if the implementation of targeted subsidies that is being considered by the government would affect foreign investments in Malaysia.

Earlier, he presented contributions to the asnaf group and prospective Hajj pilgrims at the event.

Meanwhile, regarding the Malaysia-Korea Free Trade Agreement (MKFTA), Tengku Zafrul said both parties will begin discussions at the officials’ level in May this year.

“We have just agreed to resume our negotiations because in 2019 the negotiations were suspended due to issues that we felt were not favourable to our side.

“In the discussions before we resume, the Korean side has agreed to consider and understand sensitive issues, especially in sectors we feel are important in the country, so we resume.

“There are no details yet, maybe after the May meeting I can provide an update,” he said.

On March 26, 2024, the Investment, Trade and Industry Ministry announced that Malaysia and South Korea have resumed the MKFTA, which is set to increase bilateral trade and investment between the two countries.

According to the ministry, both countries are also parties to the ASEAN-Korea FTA and the Regional Comprehensive Economic Partnership (RCEP) agreement.Apart from that, regarding the electric vehicle (EV) charging stations in the country, Tengku Zafrul said his discussions with the relevant parties found that they are confident in building more charging stations due to high demand.

“I am trying to ensure that we can achieve the targets,” he said.

Tengku Zafrul was reported saying that the ministry would review the target of 10,000 EV charging stations operating in the country by 2025 as previously set. 

Source: Bernama

Targeted subsidies implementation will not affect foreign investments, says Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim stressed today that Malaysia must have clear and responsible investment policies to attract foreign investors.

He said when he was in Germany to lead a Malaysian delegation on an official visit recently, many investors wanted an explanation from Malaysia regarding its policies.

“As a result, many have expressed their interest to invest in Malaysia, and they want to come to Kulim and Johor,” he said in his speech before breaking fast at Masjid Al-Muttaqin here.

“Many investors have picked Sarawak in terms of energy transition.”

He noted that Sarawak has a clear policy, coupled with political stability and strong leadership that concentrates on the development of the country, adding that it knows how to choose green and renewable energy that is required by the world.

“Then there is the question of digitalisation that the state government is currently undertaking.

“I raise this issue because sometimes we, especially in Peninsular Malaysia and among the Muslim community, are still stuck with old issues…always wanting to quarrel and be angry at other people,” he said.

The prime minister took a swipe at social media that blew out of proportion minor differences.

“We should learn from Sarawak. The state is peaceful, we see here all the communities are here. The Malays, Dayaks, Melanaus, Orang Ulu and Chinese live peacefully and in harmony,” he said referring to those who attended the event.

He said this means that there exists a spirit of racial unity in Malaysia, and certainly Sarawak has this kind of spirit.

“That is why I have said earlier that when there is political stability in Malaysia we can concentrate on implementing our main policies,” he said.

Source: Malay Mail

Malaysia must have clear and responsible investment policies to attract foreign investors, says PM Anwar

Selangor has attracted the highest investment value in Malaysia, totalling RM231.7 billion between 2019 and 2023, according to recent data by the Ministry of Investment, Trade and Industry (Miti).

In a written parliamentary reply, its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Selangor’s investment haul contributed 18 per cent of the total RM1,285.5 billion approved nationally during the period.

This was followed by Penang (RM221.5 billion or 17.2 per cent) and Johor (RM162.4 billion or 12.6 per cent).

Combined, the three states accounted for nearly half (47.9 per cent) of all approved investments in Malaysia from 2019 to 2023.

“Of the overall 24,231 projects (from total investment), it is expected to create 611,705 new job opportunities, with foreign investment contributing RM709.5 billion (55.2 per cent), while domestic investment amounted to RM576 billion (44.8 per cent),” said Tengku Zafrul in a written reply dated March 27, responding to a question from Paya Besar MP Datuk Mohd Shahar Abdullah, who asked the ministry to provide investment values and returns by state and district from 2013 to 2023.

In terms of other states, Kuala Lumpur received RM159.8 billion, followed by Kedah (RM129.9 billion) and Sarawak (RM104.8 billion).

Sabah, Perak, and Negeri Sembilan accumulated RM62.4 billion, RM39.6 billion, and RM39.4 billion in investments, respectively.

Meanwhile, Pahang, Melaka, and Terengganu recorded RM36.9 billion, RM25.9 billion, and RM12.6 billion, respectively.

Smaller contributions in states such as Kelantan, WP Putrajaya, WP Labuan, Perlis, and others recorded a total of RM45.7 billion in investments.

Source: Selangor Journal

Selangor leads in investment growth, RM231.7 bln recorded from 2019 to 2023

Malaysia remains steadfast in its commitment to reforming the economy while embracing innovation and sustainable development, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah said under the visionary leadership of Prime Minister Datuk Seri Anwar Ibrahim, Malaysia is embarking on an ambitious agenda of economic transformation driven by the principles of inclusivity, innovation, and sustainability.

“Central to our vision is the BRI (Belt and Road Initiative), which presents unprecedented opportunities for collaboration between Malaysia and China in various fields, including infrastructure development, connectivity, trade facilitation, and people-to-people exchanges.

“By leveraging the synergies between our economies and harnessing the transformative power of the BRI, we can unlock new avenues of growth, create jobs, and improve the livelihoods of our people,” he said in his keynote address at The Silk Road and Asian Civilisation Forum 2024 here, today.

Also present were Deputy Investment, Trade and Industry Minister Liew Chin Tong, Communist Party of China’s (CPC) International Liaison Department Minister Liu Jianchao, and Chinese Ambassador to Malaysia Ouyang Yujing.

Fadillah said that at the heart of Malaysia-China bilateral relations lies a robust framework of trade and investment that has served as the cornerstone of economic cooperation between the two nations.

He said in 2023, China continued to be Malaysia’s largest trading partner and had remained so for 15 consecutive years since 2009, taking up 17.1 per cent share of Malaysia’s total trade.

“China was also Malaysia’s largest import source, absorbing 21.3 per cent share of total imports. Imports from China stood at RM258.63 billion with major imports comprising E and E (electrical and electronics) products, machinery, equipment and parts, as well as chemicals and chemical products,” he said.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said Malaysia is fully committed to promoting green energy and environmental sustainability as integral components of its development agenda.

He said Malaysia and China were also poised to lead the way in promoting green energy and renewable resources, and both nations are committed to investing in clean energy technologies, such as solar, wind, and hydroelectric power.

“Through collaborative efforts and knowledge-sharing initiatives, we aim to harness the vast potential of green energy to reduce greenhouse gas emissions, mitigate the adverse effects of climate change, and create a more sustainable future for our planet.

“By prioritising innovation and sustainable development in the energy sector, Malaysia and China are not only contributing to global efforts to combat climate change but are also unlocking new opportunities for economic growth and prosperity,” he said.

Source: Bernama

Belt and Road Initiative central to Malaysia’s economic makeover