The Melaka government is on track to meet its RM10 billion investment target this year by focusing on 10 key industries.

State Economic Planning, Finance, Land Affairs, Non-Government Agencies, Investment, Industry and Development of Technical and Vocational Education and Training (TVET) Committee chairman Datuk Khaidhirah Abu Zahar said the sectors include electrical and electronics, automotive, aerospace, oil and gas, renewable energy, halal manufacturing, biotechnology, machinery and equipment, pharmaceuticals and shipping.

“This target is a challenge to ensure that Melaka remains relevant as a prime investment destination in the country.

“To achieve this goal, the Academy in Industry (AiI) programme is one of the initiatives that can boost the growth and productivity of the industrial sector in the state,” she told reporters here today.

Khaidhirah added that the AiI programme can help improve the quality or skills of the workforce, especially for the industrial sector to reduce dependence on foreign labour and enable Melaka residents to fill the jobs offered by industry.

She called on more industries in the state to participate in the AiI programmes as it shows the serious commitment of the state government to attract more foreign investors to the state. 

Source: Bernama

Melaka aims for RM10b investment, focuses on 10 key sectors, says exco

The government aims for the Northern Corridor Economic Region (NCER) to record RM367.8 billion in realised investments by 2030 through three new focus areas.

Prime Minister Datuk Seri Anwar Ibrahim said NCER plans to become a world-class economic and technological hub through three new areas of focus — advanced services, high value manufacturing and modern agriculture.

He said the two drivers of change that will support the plan are Environmental, Social and Governance (ESG) practices and applying digital usage.

At the 31st Northern Corridor Implementation Authority (NCIA) meeting he chaired on Wednesday, the prime minister said he had examined the main issues related to the NCER Strategic Development Plan 2024-2030.

“From 2021 to 2022, NCER contributed 34% (RM197 billion) of the total approved investments,” he noted in a post on X (formerly known as Twitter) on Wednesday.

Anwar said the meeting also discussed the “Facilitation@NCER” initiative to drive and realise investments in the corridor region. “This will involve coordination with the Malaysian Investment Development Authority (Mida) for ease of access to information, management of investment relationships, adjustment of services and use of the On-Track digital management platform,” he added.

The meeting was also attended by Deputy Prime Minister and Minister of Rural and Regional Development Datuk Seri Dr Ahmad Zahidi Hamidi as well as the relevant menteris besar as NCIA council members.

Source: Bernama

PM: Govt eyeing RM368b in realised investments for NCER by 2030

The Northern Corridor Economic Region (NCER) will be developed into a world-class economic and technological hub, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said this will be realised through a focus on three industries, namely advanced services, high-value manufacturing, and modern farming.

“The two catalysts for change that will support this endeavour are environmental, social, and governance (ESG) practices and digitalisation,” Anwar said after chairing a Northern Corridor Implementation Authority meeting.

Anwar said the government aims to realise RM367.8 billion in investments in the NCER by 2030.

Earlier, Anwar said he chaired the NCIA meeting which was also attended by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Menteris Besar of the northern states including Perak, Kedah, Perlis, and Penang.

The meeting discussed the NCER strategic development plan 2024-2030.

“Between 2021 and 2022, the NCER has realised 34 per cent (RM197 billion) from approved investments.

“The meeting also discussed the “Facilitation@NCER” initiative to further catalyse and realise investments in the NCER,” said Anwar, adding this involved coordination by the Malaysian Investment Development Authority (MIDA).

Source: NST

Northern Corridor Economic Region to be world-class economic and tech hub, says PM

The Small and Medium Enterprises Association (Samenta) Malaysia has expressed confidence in the ability of the government’s plans for the Northern Corridor Economic Region (NCER) to bolster the economy.

Its national president, Datuk William Ng, said capitalising on Penang’s “lion’s share” of the country’s Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) over the past decade is a strategic move to stimulate growth in neighbouring states.

“With the semiconductor and medical devices sectors spurring growth in Kedah and Northern Perak, and considering the region’s rich natural attractions such as ancient forests, pristine beaches, and archaeological sites, the northern states are poised to become a tourism hub,” he told the New Straits Times.

However, Ng said it is essential to have unity among state governments — especially given their diverse political affiliations — in driving economic progress.

“This entails maintaining policy transparency and continuity, as well as instilling confidence in both local and foreign investors that their investments will be secure, irrespective of changes in administration.

“If successfully executed, the Northern Corridor has the potential to replicate the growth seen in the Klang Valley and stem the outflow of talent to both the Klang Valley and neighboring countries.”

Earlier, Prime Minister Datuk Seri Anwar Ibrahim said the NCER will be developed into a world-class economic and technological hub.

Anwar said this will be realised through a focus on three industries: advanced services, high-value manufacturing, and modern farming.

He said the government aims to realise RM367.8 billion in investments in the NCER by 2030.

Source: NST

Samenta upbeat on govt plans for NCER

Since the start of the US-China trade war in 2018, companies reliant on China’s manufacturing surge have been actively exploring alternatives to diversify their supply chains. Southeast Asia has emerged as a prime destination for several compelling reasons. The region boasts a youthful workforce, varied industry specialisations, abundant raw materials and a strategic geographical position that facilitates efficient service to both Western and Eastern markets. Notably, media reports highlight that a substantial 60% of Samsung mobile phones are currently manufactured in Vietnam, while Apple has shifted a portion of its latest iPhone production to India.

The momentum behind the relocation of industries away from China is fuelled by a combination of factors. First, the persistent trade tensions between the US and China show no signs of abating, even amid the Covid-19 pandemic. These tensions have expanded beyond traditional trade realms to encompass high-tech, finance, geopolitics and other sectors. Many multinational firms are increasingly concerned about potential high sanction risks that the US might impose on their operations in China.

Secondly, the global supply chain disruptions and shortages experienced by advanced countries during the pandemic have prompted governments and companies to re-evaluate the security of their supply chains, especially those heavily reliant on China. Furthermore, China’s de facto nationwide lockdowns in the latter half of 2023 have intensified the determination of multinational firms to diversify their supply chains rather than solely relying on China. This cautious approach was spurred by the recognition that concentrating all operations in China entails significant risks.

The pandemic also exacerbated the challenges within China’s business environment. In addition to strict human mobility restrictions, Chinese authorities implemented sweeping regulatory measures in 2021, affecting various sectors including real estate, private education, online gaming and financial technology (fintech). This regulatory crackdown has prompted international investors to question the viability of China as a conducive business environment.

What is China + 1, and can Malaysia stand to benefit?

The “China + 1” strategy involves companies diversifying their supply chains by establishing an additional manufacturing or production base outside of China. This strategic approach aims to reduce dependence on China as the sole manufacturing hub, thereby mitigating risks associated with trade tensions, supply shortages and regulatory changes within China.

Is Malaysia well-positioned to benefit from supply chain diversification?

To assess this, we compare Malaysia with its regional counterparts as potential investment destinations for diversification efforts. Among our regional peers actively seeking foreign direct investment (FDI) in the context of supply chain diversification are Indonesia, Thailand and India. According to the International Institute for Management Development World Competitiveness Ranking, Malaysia ranks 27th out of 64 countries. This ranking places Malaysia ahead of Indonesia, Thailand and India, suggesting a favourable environment for investment and business operations.

At a categorical level, Malaysia has the strongest economy and infrastructure among the four countries; however, it trails behind Thailand in government efficiency and records the lowest rank in business efficiency. Government and business efficiency are integral components of soft infrastructure that are crucial for fostering FDI and facilitating business formation. Our shortcomings in these aspects, attributed to regulatory inefficiencies, protectionist policies, brain drain challenges and a lack of local business adaptability to global trends, contribute to our diminished performance in these metrics. These challenges impede our capacity to capitalise on global trends and attract investments seeking destinations beyond China.

A closer examination of the shifts in rankings over the years provides intriguing insights. Despite notable advancements in all fundamental aspects in 2023, our standings in categories, apart from economic performance, demonstrate a decline compared to pre-Covid levels.

This prompts a critical evaluation of the factors influencing our rankings across diverse criteria. While our efforts have evidently improved our economic indicators, strategic reassessment and targeted interventions are needed to address the areas where our performance lags behind pre-pandemic benchmarks.

What builds our past resilience?

This raises the issue of our economic resilience. Our continual strong economic performance today is built upon solid economic foundations that emerge from three key factors.

First, our abundant natural resources have been a significant contributor to our economic prosperity. The oil and gas sector alone constitutes approximately 20% of Malaysia’s gross domestic product  and serves as a primary source of government fiscal revenue. This industry has played a crucial role in supporting various aspects of the economy, funding both operational and developmental expenditure. While lucrative, this coffer is threatened by the escalating global concerns regarding climate change, posing the risk of rendering this sector obsolete and unprofitable in the future.

Secondly, during the past era of good governance, we have successfully established a substantial manufacturing hub, particularly focused on electronics. This strategic move has consistently driven economic growth and employment. The current economic prosperity is a testament to past policies that continuously fuelled our economic engine. Nonetheless, this momentum may wane if we fail to keep pace with evolving global trends.

Thirdly, the rise of Malaysia in the past decades happened in tandem with the lacklustre development of our neighbours. In the epoch of the country’s industrialisation, we were one of the most appealing countries in the region. Our strength lay in political and economic stability, coupled with a young and competitive workforce. However, this landscape is evolving. Vietnam, Indonesia, Thailand and the Philippines have emerged as formidable contenders, challenging Malaysia across various dimensions of economic vibrancy. These countries are offering liberalised trade regulations, young and adaptable workforces, streamlined business setups, accessible foreign visas and a notable absence of protectionist policies, among other factors.

Building up economic fundamentals to drive growth

Foremost, we need to acknowledge that our current strong economic performance is an outcome of our historical legacy. In the face of intensifying global competition, we cannot hinge our progress solely on past achievements.

Adapting to a shifting global landscape demands resilience, competitiveness and dynamism. To harness the advantages of supply chain diversification, we must construct a sturdy economic foundation that propels investment and fosters growth. The fundamental building blocks for achieving this are as follows.

1.     Enhance investment promotion to attract high-value firms: Elevate efforts to draw top-tier anchor companies to Malaysia, particularly in key sectors such as green technology, digital enterprises, agritech, semiconductor manufacturing and the halal industry. This effort will be complemented by tax incentives such as pioneer status, investment tax allowances and reinvestment schemes.

2.     Remove protectionist policies for foreign firms: Tesla’s exemption from the minimum 30% equity ownership by bumiputera should be expanded to include all foreign investments.

3.     Ensure governance and policy stability: Uphold consistency and predictability in trade policies to mitigate uncertainty for businesses, particularly during the period of political transition. A stable regulatory environment is crucial to attract foreign investment and nurture a robust trade ecosystem.

4.     Streamline regulatory processes: Simplify regulatory frameworks and expedite bureaucratic procedures to eliminate barriers that deter foreign investors. A complex regulatory environment or slow bureaucratic processes deter foreign investors who may find setting up business easier in other Southeast Asian nations.

5.     Enhance workforce education and training: Invest in upskilling and reskilling programmes to equip the local workforce with the skills needed for higher-value jobs. Addressing the current reliance on low to middle-skilled labour through broadened educational initiatives will contribute to national workforce development.

6.     Facilitate visa requirements: Implement easier visa processes, including long-term stay visas and foreign worker visas, to attract talent from abroad. Encouraging the influx of foreign workers to complement our existing market should be encouraged to address skill gaps, facilitate knowledge transfer and alleviate manpower shortages.

Malaysia’s strategic location in Southeast Asia and its well-developed infrastructure make it an attractive alternative for companies looking to diversify their supply chains. The country’s strong trade ties, especially within the Asean region, provide an excellent platform for companies to access other regional markets.

To capitalise on the potential of supply chain diversification, it is imperative for the country to enhance its economic foundations, aiming not only to match but surpass the benchmarks set by neighbouring countries. This strategic approach will enable Malaysia to assert itself as a prominent trade partner and sought-after investment destination, not only in the US and China but also across various regional markets.

Doris Liew is an economist, public policy thinker and environmentalist at Penang Institute who regularly observes Asean’s economic development, policy frameworks and regional and international trade dynamics

Source: The Edge Malaysia

Positioning Malaysia to receive FDI from global supply chain diversification

Malaysia and Chile can boost bilateral ties by tapping into new sectors such as renewable energy, tourism, and education while maintaining a positive momentum in the existing areas.

Natalia Arcos, international director of the Chilean government’s export promotion agency ProChile,  said that collaborations in solar and wind energy projects, technology sharing, and the promotion of sustainable policies in the renewable energy sector could significantly benefit both nations.

“In tourism, the countries could develop integrated packages and promote joint tourist destinations. In education, they could facilitate student exchanges and establish joint research programmes, strengthening academic ties,” she told Bernama.

Arcos said that these areas of collaboration would not only broaden the scope of bilateral relations but also promote mutual and sustainable development between the two countries.

Halal certification is vital for Malaysia-Chile trade, given Malaysia’s large Muslim consumer base.

According to Arcos, sectors such as halal-certified food products will likely continue driving trade between the two countries.

Chilean exporters who meet these standards stand to benefit, but maintaining and expanding Chilean product presence in Malaysia requires top-notch quality and adaptability to local preferences.

Arcos emphasised that Malaysia and Chile need to explore new opportunities in emerging industries such as technology and innovation to strengthen their economic ties.

“Collaboration in research and development, as well as knowledge sharing in cutting-edge areas, could boost the competitiveness and capacity of both countries to meet the economic and technological challenges of the future.

“In addition, strengthening ties in sectors such as health, biotechnology, and the digital economy could open new prospects for bilateral cooperation and sustainable economic growth,” she noted.

Arcos said Chile is seeking to diversify its export basket and looking at new opportunities for Chilean exporters. The South American country is currently exporting more than 4,000 goods and services to about 190 destinations worldwide.

She said exports play a vital role in Chile’s economy, serving as a key driver of employment and economic growth.

“Exports are important for Chile, both for employment and economic growth.

“Exports currently contribute 36 per cent of the country’s gross domestic product, involving more than 7,700 companies, of which 35 per cent are small and medium enterprises, and generating more than 1.1 million jobs,” she added.

ProChile is an agency under Chile’s Ministry of Foreign Affairs.

Source: Bernama

Chile keen to boost ties with Malaysia by exploring new trade sectors

Germany has chosen Malaysia to be its export and trade hub, apart from China, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said this comes after the trade war between the United States and China, which had impacted the global economy, especially to countries that export to China, including Malaysia.

“Germany’s policy is to de-risk, meaning to reduce risk and not rely on only one country, so they chose other countries (to trade with).

“So, at this moment, Germany has chosen Malaysia as their export and trade hub, apart from China, and this will help us.”

He said this in his reply to a supplementary question from Jimmy Puah Wee Tse (Pakatan Harapan-Tebrau), who had asked about how the trade war would affect Malaysia’s economic growth.

Anwar added that the Investment, Trade and Industries Ministry (Miti) had seen an increase in official visits from foreign trade ministers, including three this week.

He said the Madani government’s clear policies and stable politics made Malaysia an attractive destination for both domestic and foreign investors.

He said the success that the country achieved in attracting investment was a collaborative effort between Miti, the Foreign Ministry and the whole government machinery.

“Malaysia managed to do this because of our stable politics, and clear Madani Economy policies.

“We have a clear industrial plan, an energy transition plan, a digital transformation plan, and a food security programme.

“Secondly, it is because of the speed of approvals. There have been remarks that there is too much bureaucracy, so at the federal-level, only one agency, which is Miti, that will coordinate,” he added.

Source: NST

Malaysia is Germany’s choice as a trade, export hub

South Korea’s Trade Ministry said Tuesday (March 26) it has agreed with Malaysia to resume bilateral free trade agreement (FTA) talks that have been stalled since 2019.

Trade Minister Cheong In-kyo (pic) and his Malaysian counterpart, Tengku Zafrul Aziz, made the announcement during their meeting in Kuala Lumpur, according to the Ministry of Trade, Industry and Energy, reported Yonhap news agency.

The two countries agreed to seek a bilateral FTA in 2019 but related negotiations have been stalled after holding three rounds of talks that year.

South Korea and Malaysia also agreed to expand the scope of the envisioned FTA to cover new areas, such as service, investment, digital and biotechnology, the ministry added.

Malaysia is the third-largest trade partner for South Korea in South-East Asia.

South Korea already has an FTA with the Association of Southeast Asian Nations (Asean), but the country is seeking to broaden economic ties with individual members through separate free trade deals.

“As the two countries hold a mutually beneficial trade portfolio, the FTA will significantly strengthen South Korea’s ground for trade and investment in the Asean bloc,” the ministry said in a statement.

Source: The Star

S. Korea and Malaysia to resume free trade talks

Malaysia remains a preferred destination for foreign direct investment (FDI) in the region and has attracted increasing interest from multinational corporations aiming to diversify their footprint strategically, says DHL Express Malaysia and Brunei managing director Julian Neo.

Due to the recent geopolitical developments, omni-sourcing has been a key focus for companies across industries as it strengthens supply chain resiliency, he said.

“Contract manufacturers continue to move into the country and we have observed similar expansion by those already here,” he replied to a Bernama question via email.

Citing news report, Neo said Penang alone has attracted over RM60bil in FDI last year, more than the total received for 2013 to 2020 combined.

He said Malaysia’s key strengths include easy access to key Asian markets, robust consumer demand for international goods and services, institutional support, well-developed infrastructure, sound legal framework, English-speaking and digitally native talent, as well as liberal trade agreements.

“Therefore, it is no surprise that the country is rated among the best for globalisation,” he added.

According to DHL Group’s latest Global Connectedness Report launched on March 13, 2024, Malaysia ranks 26th out of 181 economies, attributable to the growth of its trade flows (imports and exports, across both goods and services) and increases in FDI flows (inward and outward).

Asked if the 6% service tax on logistics services that came into effect on March 1, 2024 would affect the company’s business in the country, Neo shrugged off the concern, saying that the service tax only applies to domestic shipments and excludes international ones, which is the main remit of DHL Express Malaysia.

“Regardless, implementation of the service tax has long been a topic of conversation within the logistics industry and we remain in close dialogue with the relevant authorities.

“At the same time, we have maintained open lines of communication with customers to provide the necessary guidance and support towards a smooth transition,” he added.

Source: The Star

Malaysia still a preferred destination for FDI in the region

Three mega projects have the capacity to elevate Perak to be among the major states buttressing national economic growth, said Prime Minister Datuk Seri Anwar Ibrahim.

Expressing his confidence, Anwar said that these three projects – the Automotive High Tech Valley (AHTV) in Tanjung Malim, Lumut Maritime Industrial City (Lumic), and the Kerian Integrated Green Industrial Park – would help Malaysia’s economy emerge strongly in Asia.

“Three mega projects in Malaysia are based in Perak. Perak, compared to Johor, Penang, and Selangor, is slightly lagging behind, but with the programmes and emphasis taken by the Saarani team (Perak Menteri Besar Datuk Seri Saarani Mohamad), we believe that in a few years, Perak will emerge as a major state in this country.

“I was informed earlier that there are still about 4,000 people classified as hardcore poor in Perak, but we believe with the determination of the Menteri Besar’s team, Perak will eradicate poverty in no time,” said Anwar.

Also present were Saarani, Minister of Higher Education Datuk Seri Zambry Abdul Kadir, Majlis Amanah Rakyat (MARA) chairman Datuk Seri Asyraf Wajdi Dusuki and 300 KPTM students.

Anwar said that foreign investments in Malaysia demonstrate that the government’s vocal stance on humanitarian issues does not deter investors from continuing to show trust in the Malaysian economy, thus repositioning the country as a great nation in Asia.

“Why? Because of stable infrastructure, clear economic policies, and political stability. The MADANI economic policy, which prioritises the welfare of the people, adds to investor confidence,” said the Prime Minister.

At the same time, he reminded the youth to set aside politics of hatred.

“Enough with rising hatred politics, let us rise together to become good citizens, increase knowledge, master good fields, and make Malaysia a country to be emulated and admired by the world,” he said.

At the same event, Anwar, who is also the Member of Parliament for Tambun, handed over contributions totalling RM291,000 to 34 mosques and 35 surau within the Tambun parliamentary constituency.

The contributions is hoped will assist the mosque and surau committees in implementing planned Ramadan activities.

The Prime Minister then performed the Maghrib prayer in congregation with the guests present.

Source: Bernama

PM identifies three mega projects to propel Perak’s economic growth

There is a need to be proactive in attracting the right investments to the country, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

He pointed out that among the new and promising economic sectors to attract more investments included green hydrogen, Carbon Capture Utilisation and Storage (CCUS), and renewable energy.

“With this, there must be targeted incentives and steadfast policies to facilitate the growth of these industries,” he said during his meeting with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz in Kuala Lumpur yesterday.

Awang Tengah, who is state International Trade, Industry and Investment Minister, also discussed various matters of common interest with Tengku Zafrul including showcasing Sarawak as the green and renewable energy hub for the region.

Both leaders also agreed to work closely together to attract more investments to Sarawak.

Also present were Awang Tengah’s deputy minister Datuk Dr Malcolm Mussen Lamoh, his ministry’s advisor Dato Sri Naroden Majais and permanent secretary Dulkornain Masron, Regional Corridor Development Authority chief executive officer Datu Ismawi Ismuni, and InvestSarawak chief executive officer Timothy Ong.

Source: Borneo Post

Attracting right investments requires govt to be proactive, says Awg Tengah

Malaysia has experienced a 25 per cent increase in bilateral trade with Canada since 2018, particularly since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the CPTPP has led to a notable uptick in the issuance of Certificates of Origin (CO) by Malaysian businesses for exports to CPTPP partners, including Canada.

“I am pleased to share that Canada is also the second largest export market for trade in services after the US in 2022, valued at RM110 million, with the two largest components being on transport and travel.

“I believe events such as today’s Business Forum could begin or expand collaborative partnerships between our two countries’ businesses and investors, and what better way to do so than through the CPTPP platform and trade missions such as the Team Canada Trade Mission (TCTM),” he said at the launch of the mission here today. 

Beyond CPTPP, Tengku Zafrul said Malaysia is also optimistic on additional trade potential via the Asean-Canada Free Trade Agreement (ACaFTA), of which Malaysia is also a party and coordinating country. 

Malaysia looks forward to ensuring the success of the ACaFTA when Malaysia takes over Asean’s chairmanship in 2025, he added. 

In terms of investments, Tengku Zafrul said Malaysia is proud to host Canadian companies like Celestica and Sun Life which have been thriving here for more than a decade. 

As of today, he said a total of 96 manufacturing projects with Canadian participation had been implemented, with total investments worth US$ 274 million.

“The top three sectors for Canadian investments are E&E, basic metal products, and wood and wood products. I am also delighted to share that these projects have generated employment for 11,027 people.

“The TCTM today is a platform to up our game on both trade and investment. We invite Canadian businesses to consider Malaysia as your main trading and investment partner in this region,” he added.

The trade mission seeks to expand and deepen Canada’s existing partnerships in the region. 

The strategic objective of the mission is to expand trade, investment and supply chain resilience including through expanding Canada’s trade network at home and abroad, paving the way for long-term growth and prosperity.

Source: NST

Malaysia’s trade with Canada jumps 25pct since 2018: Tengku Zafrul

The East Coast Economic Region Development Council (ECERDC) has successfully realised investments worth RM2.4 billion in Terengganu as of March 2024.

Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar said the investments included in the fields of iron and steel manufacturing, napier cultivation, pulp mills and food containers which created 5,000 job opportunities for the locals.

He said the value of the investments represented 57 per cent of the RM4.2 billion investment target set by ECERDC for the state of Terengganu this year.

“ECERDC also managed to attract new committed investments worth RM1.02 billion in the oil; gas and petrochemical sectors (RM940 million); services (RM50 million); tourism (RM20 million) and manufacturing (RM10 million) as of March.

“A total of 65 per cent involved foreign direct investments (FDIs) with the highest investment received from Japan which was RM660 million,“ he said in a statement after chairing a meeting of the Implementation and Coordination Committee (ICC) of the East Coast Economic Region (ECER) here today.

Also present at the ICC meeting were Terengganu state secretary Datuk Seri Tengku Farok Hussin Tengku Abdul Jalil; secretary of the development division of the Prime Minister’s Department, Datuk Jazmanie Shafawi; and ECERDC chief executive officer Datuk Baidzawi Che Mat.

Baidzawi said the ICC meeting also discussed the development of the recreational vehicle (RV) industry in an effort to make Malaysia an RC hub in Asia Pacific by 2025.

According to him, several locations have been identified to be developed as RV parks in Terengganu.

“ECERDC has also signed a memorandum of understanding (MoU) with a leading power generation company from China.

“For the Kuala Terengganu airport road (KTAR) project, progress has reached 37 per cent as of February 2024,“ he said.

Meanwhile, in a separate ceremony, Baidzawi also completed the handing over of Surau Al-Ikhwan Teluk Ketapang to the Department of Religious Affairs of Terengganu and the Teluk Ketapang kindergarten to the Department of Community Development of Terengganu.

He said the two infrastructures worth almost RM1 million under the KTAR project were able to benefit about 2,000 residents around Kampung Teluk Ketapang and nearby areas.

“The surau and kindergarten are part of the KTAR project implemented at a cost of RM28 million by the federal government through the ECERDC.

Source: Bernama

ECERDC has realised RM2.4b investments in Terengganu as of March 2024

Figures of realised investments in Malaysia for 2023 will be made public early next month, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry Minister said the approved investments for last year amounted to RM329.5bil, which was the highest in history.

“We will be announcing in the first week of April an update (on realised investments).

“The numbers are being finalised to show how much (investments) has started in terms of the total sum,” said Tengku Zafrul during the Concorde Club meeting at Wisma Bernama yesterday.

The Concorde Club is an informal group of editors and senior journalists who meet with politicians and key policy makers.

Previous guests of the Concorde Club, led by SMG advisor and Bernama chairman Datuk Seri Wong Chun Wai, included Prime Minister Datuk Seri Anwar Ibrahim, Penang Chief Minister Chow Kon Yeow, Opposition leader Datuk Seri Hamzah Zainudin, former premier Datuk Seri Najib Razak and ministers Datuk Seri Mohamad Hasan and Anthony Loke.

According to Tengku Zafrul, the realisation of approved investments usually takes between two and three years.

He said that on average, the annual implementation performance from 2021 to 2023 showed that more than 85% of approved manufacturing projects had been executed.

To ensure that approved investments are realised, the minister said it is imperative to focus on execution.

“That is why the Prime Minister, through the national investment council, is pushing all parties in the government, especially ministries, state governments and local councils to speed up the process,” said Tengku Zafrul.

At present, he said Malaysia is seeing a positive flow of investments and the country should capitalise on its strength, among them the green economy and semiconductor industry.

The approved investments of RM329.5bil last year was 23% higher compared to 2022, which recorded RM264.6bil.

The total approved investments involved 5,101 projects and could potentially create over 127,000 new job opportunities for the people.

The services sector recorded the highest investments, contributing over half or 51.1% of total approved investments at RM168.4bil, followed by the manufacturing sector at RM152bil (46.1%) and primary industries at RM9.1bil (2.8%).

Source: The Star

Tengku Zafrul: Realised investments to be announced early April

In his welcoming remarks at the Madani breaking of fast programme with ambassadors, foreign representatives, and international organisations at Seri Perdana Complex here today, Anwar said he is looking forward to working together with his counterpart, Thailand’s Prime Minister Srettha Thavisin, in other areas.

“We are working with Srettha to have further collaborations. The Foreign Ministry will also be assisting (the country) to ensure collaborations between Asean and bilateral relations with our neighbours will further strengthen,” he emphasised.

Thailand was Malaysia’s seventh-largest trading partner globally in 2023, with total trade of RM113.16 billion (US$24.83 billion).

Anwar also said that besides Thailand, Malaysia is working with Singapore in completing the Johor-Singapore Special Economic Zone (JS–SEZ), with a joint agreement between both countries expected to be inked by year-end.

“This (JS-SEZ) would benefit south Malaysia and Singapore as well,” said Anwar, who is also Finance Minister.

On March 14, the Ministry of Economy announced Malaysia and Singapore are expected to ink the joint agreement during the 11th Malaysia-Singapore Leaders’ Retreat later this year.

Elaborating on Malaysia’s collaborations within Asean, Anwar said Malaysia would expand and deepen collaborations in several areas such as energy transition, digital transformation, public health, and education.

“We are fortunate to pursue this policy and at the same time, we are traveling abroad (within) ASEAN and I have covered all of these countries,” he said.

In 2023, Malaysia’s major trading partners were Asean, China, the United States, the European Union and Japan, which accounted for a 67.7 per cent share of Malaysia’s total trade.

Earlier, Anwar spent time breaking fast with 300 guests from Maahad Tahfiz Sulaimaniyah, Kajang, ambassadors, foreign representatives and international organisations.

Source: Bernama

Malaysia to deepen collaboration with Thailand — PM

 The Ministry of Investment, Trade and Industry (MITI) will continue to accelerate and facilitate the implementation of industrial master plans to ensure that all investments are realised, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said Prime Minister Datuk Seri Anwar Ibrahim has successfully attracted potential foreign investments amounting to RM76.1 billion as of March this year.

Hence, he said it is crucial to implement government measures to achieve Malaysia’s targeted economic growth rate of between four per cent and five per cent this year.

“Various strategies, including the industry masterplans, are primary drivers. So it (Bank Negara Malaysia) is urging for a focus on execution,” he told reporters on the sidelines of the Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

On a question on realisation of investments, Tengku Zafrul explained that investments should take between two and three years to be realised.

“That is why the facilitation centre has been improved and through the National Investment Council, we are pushing for all parties within the government, especially the agencies in the ministries including the local councils to speed up the whole process,” he added.

Tengku Zafrul also said MITI is dedicated to ensuring that approved investments materialise and that investors do not encounter unnecessary difficulties.

“In fact, we are confident that we will start announcing the tracking of this (investments) in a more regular manner.

“Previously, we have done this (investment announcement) every six months and every one year, but we want to increase that and be more transparent so that people are aware of the process that is taking place and where those investments are,” he added.

Tengku Zafrul said the Malaysian Investment Development Authority (MIDA) is expected to produce a monthly report that provides comprehensive information regarding the value of both approved and realised investments.

During Bank Negara Malaysia’s (BNM) Annual Report 2023 release on Wednesday, the central bank called for the expediting of numerous industry master plans launched last year to support economic growth.

Among the master plans announced by the government in 2023 are the New Industrial Master Plan 2030 to transform key sectors such as manufacturing and the National Energy Transition Roadmap to uplift the nation’s renewable energy sector as a growth engine.

BNM has projected Malaysia’s gross domestic product growth at between four per cent and five per cent in 2024 versus 3.7 per cent in 2023, with upside risks stemming from the tech sector upcycle spillover, improved tourism numbers and project roll-outs.

Inflation, after incorporating the targeted subsidy roll-out, is forecast at between two per cent to 3.5 per cent by the central bank for the year, from 2.5 per cent in 2023.

Source: Bernama

MITI continues to accelerate, facilitate investments to achieve economic growth target – Tengku Zafrul

Malaysia has successfully attracted potential foreign investments amounting to RM76.1 billion as of March this year, the result of the country’s successful trade and investment missions in Australia, Germany and France, said Prime Minister Datuk Seri Anwar Ibrahim.

He attributed the success to the collaborative efforts of several ministries and government agencies, such as the Ministry of Finance (MOF), the Ministry of Investment, Trade and Industry, the Ministry of Foreign Affairs, the Securities Commission and Bursa Malaysia.

Speaking at a gathering with the MOF’s staff here today, he said this was the result of the government’s efforts to ensure political stability, cooperation with civil servants, as well as its clear national goals and policies.

“Clarity in our economic policies is important and will help us and give us a new hope,” he said.

Anwar also highlighted the warm reception extended during his recent official visit to Germany.

“Germany boasts a robust economy, ranking as the third-largest globally. The warm reception we received as a small nation fills us with pride,“ he said.

Recently, it was reported that Malaysia had succeeded in attracting potential investments worth RM45.4 billion following the prime minister’s recent visit to Germany.

However, Anwar stressed that there is still ample room for improvement, including in terms of expediting project approvals.

“We must sustain such efforts, and if we can increase it, I think that in two or three years, Malaysia’s landscape will change,” he said.

Meanwhile, commenting on the growth figures and forecasts for this year, Anwar noted that Bank Negara Malaysia’s Economic and Monetary Review 2023 released yesterday was positive and reassuring.

“The foundation of Malaysia’s economy remains robust, and the economic outlook for 2024 is better than that of 2023 as we achieved a gross domestic product growth of 3.7 per cent despite facing various challenges and the global economic volatility.

“For this year, our economy is expected to strengthen further with growth forecasts of 4.0-5.0 per cent,“ he said.

Factors which would support the improvement in economic performance include the decrease in the unemployment rate, which fell to 3.3 per cent in January 2024, and the inflation rate which dropped to 1.6 per cent in the fourth quarter of 2023 (4Q 2023) from 2.0 per cent in 3Q 2023.

Export performance also showed signs of recovery in January this year with an increase of 8.7 per cent after declining for ten consecutive months (March to December 2023).

In addition to the positive macroeconomic figures, the prospects for national investment are also at a very promising level.

“Last year, we achieved approved investments totaling RM329.5 billion, the highest in the country’s history,“ added Anwar.

Source: Bernama

Malaysia attracts RM76.1 bln potential foreign investments as of March 2024 – PM Anwar

A total of 898 foreign investment projects valued at RM281.5 billion have been approved in the manufacturing and services sectors from 2022 to 2023, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong (pix).

He said the approved foreign investment projects were expected to create 98,725 new job opportunities, of which 86,880 or 88 per cent would be for locals.

“For the manufacturing sector, 78,033 new jobs are expected to be created for locals.

“Five main subsectors with the highest new job opportunities for locals are the electrical and electronics (40,618 job opportunities), non-metallic mineral products (6,746), machinery and equipment (5,555), scientific and measuring equipment (3,791), and chemicals and chemical products (3,684),” he said during the question-and-answer session in the Dewan Rakyat today.

As for the services sector, Liew said 8,847 new job opportunities were expected to be created for locals, with the three main subsectors being support services (5,124), health-related services (1,407) and information and communication (1,022).

“Generally, investment projects take 18-24 months to be realised depending on the project scale and current economic situation.

“Based on Malaysian Investment Development Authority statistics and experience, usually 85 per cent of foreign investment projects would be realised in that timeframe,” he said.

He was responding to Datuk Larry Soon’s (PBM-Julau) query on the number of jobs that locals can benefit from by sector and industry as a result of foreign direct investment (FDI) inflow into the country for 2024.

Liew said that Malaysia currently possesses advantages such as good logistics, the skills and ecosystem, and a strong supply chain.

“This has given Malaysia an opportunity to capitalise on the tense geopolitical situation between the United States and China, and we could observe the effect last year and the year before when record-high foreign investments flowed into our country.

“We have the skills and the skilled workers. But many Malaysians are working in Singapore as gig workers. So the issue we have to resolve for creating more jobs or developing more skilled workers is to raise the salary levels in the manufacturing sector,” he added.

Liew said the global semiconductor industry needs new talent as it is experiencing a rapid shift or transformation.

“We need more people with expertise in semiconductors and artificial intelligence chips,” he added. 

Source: Bernama

Foreign investments worth RM281.5b approved in 2022-2023 to create 98,725 jobs

Malaysia and Hungary discussed efforts to strengthen ties particularly in trade and investment, agriculture, and cooperation in electro-mobility during a bilateral meeting today.

The Foreign Ministry (Wisma Putra) said Foreign Minister Datuk Seri Mohamad Hasan and Hungarian Foreign Affairs and Trade Minister Peter Szijjártó also spoke about Malaysia-European Union (EU) bilateral relations, Asean-EU Dialogue Relations, as well as regional and international issues of mutual interest during their meeting.

“The Foreign Ministers exchanged two Diplomatic Notes, namely the Bilateral Work Arrangement between both countries; and Cooperation between Malaysia’s Institute of Diplomatic and Foreign Relations (IDFR) and the Hungarian Diplomatic Academy (MDA),” it said in a statement.

Szijjártó, who is on one-day working visit to Malaysia, had earlier met Higher Education Minister Datuk Seri Zambry Abdul Kadir to strengthen cooperation in the higher education sector, including the ongoing Hungary’s Scholarship Programme — Stipendium Hungaricum.

Malaysia and Hungary have a longstanding and multi-faceted cooperation. Last year, the trade value between Malaysia and Hungary was RM3.08 billion (US$670 million), with exports amounting to RM2.38 billion (US$520 million) and imports valued at RM700 million (US$150 million).

Meanwhile, Szijjártó said increasing Hungarian agricultural exports and the fight against the world blockade were on the agenda for his visit in Malaysia.

In a his Facebook post, he added that Malaysia is the last stop on his visit to three most competitive countries in Southeast Asia, following Thailand and Singapore.

Source: Bernama

Malaysia, Hungary discuss efforts to enhance ties in bilateral meeting

Malaysia has secured potential investments worth RM46 billion and potential Malaysian exports valued at RM2.4 billion from its recent trade and investment mission to Germany and France.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who was leading the mission, said among notable companies engaged during the mission were X-Fab, Melexis, Infineon Technologies AG, Airbus Group, Schott Glass, BMW, Nexperia, B-Braun, Michelin, Institut de Soudure (IS) Groupe and Simaero.

He said these corporations shared their investment plans and interest in establishing strategic partnerships in Malaysia, which will contribute significantly to Malaysia’s economic landscape particularly in terms of technology transfer and creation of high-value jobs in the country.

In terms of export potential, Tengku Zafrul held discussions with Airbus Group, Deutsche Bahn, Safran, and X-Fab (France) to reinforce their ongoing interest in sourcing from Malaysia.

“These business interactions with German and French companies are part of our strategic engagement to update them on the implementation of the New Industrial Master Plan 2030 (NIMP 2030), our commitment to the speedy execution of projects as well as our business-friendly stance on expanding investments and trade.

“Our door is always open on hosting companies from Germany and France, two of Europe’s main drivers of economic growth and industrial powerhouse, which will pave a significant pathway towards reindustrialising our nation and revitalising our economy,” he said in a statement today.

He said these engagements were also aimed at enhancing Malaysia’s involvement in the global value chain, thus facilitating further integration into international markets.

“By fostering collaborative relationships with key players in France and Germany, Malaysia seeks to expand its footprint in global trade and solidify its position as a reliable and competitive partner in various industries,” he continued.

During the mission to France, a significant bilateral meeting took place between Tengku Zafrul and his French counterpart Franck Riester, the Minister Delegate for Foreign Trade, Economic Attractiveness, Francophonie, and French Nationals Abroad.

Both sides were engaged in a fruitful exchange of views and updates, aimed at further fortifying bilateral economic collaborations, said Investment, Trade and Industry Ministry (MITI) in the same statement.

Of particular focus were areas of mutual interest, including advancing energy transition initiatives, fostering the adoption of green economy practices, and exploring the potential to recommence negotiations for a free trade agreement with the European Union, it added.

The ministry said such discussions underscored the shared commitment to enhancing economic cooperation and leveraging opportunities for sustainable growth between Malaysia and France.

The mission, which started on March 11 and concluded yesterday, covered the cities of Berlin and Hamburg in Germany, as well as Paris, France.

The German leg of the mission was in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Germany from March 11 to 15.

The mission’s delegation comprised of officials from MITI, the Malaysian Investment Development Authority and Malaysia External Trade Development Corporation.

These officials were engaged in high-level meetings with European companies in target sectors under the NIMP 2030 such as semiconductor, automotive, aerospace, railway, chemical, medical devices, as well as machinery and equipment.

Source: Bernama

Malaysia secures RM46 bln potential investments from trade and investment mission to Germany, France

The Northern Corridor Implementation Authority (NCIA), in collaboration with the Kedah state government, recorded RM11.6 billion in realised investments for the state in 2023.

In a statement today, NCIA, the development authority for the Northern Corridor Economic Region or NCER, said the realised investments have created over 3,400 job opportunities in 2023.

NCIA chief executive officer Mohamad Haris Kader Sultan attributed the success to close and continuous cooperation with stakeholders, including the federal government, the state government, and their agencies.

“The recorded investments comprised key sectors outlined in the NCER strategic development plan, namely manufacturing, agriculture, logistics, digital economy, and tourism.

“NCIA intends to leverage the strategic advantages of the NCER by collaborating with neighbouring countries such as Thailand via the Malaysia-Thailand Special Border Economic Zone (SBEZ) initiative,” he said.

Mohamad Haris said the cross-border advantages hold significant potential for attracting foreign investments and accelerating economic progress in the northern region.

Meanwhile, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the achieved value surpassed the initial target set by NCIA, which was RM8.8 billion.

This success served as an indicator of industry players’ confidence in Kedah’s future potential, he added.

Source: Bernama

NCIA, state govt realise RM11.6b in investments for Kedah in 2023, created over 3,400 job opportunities

The government will continue to encourage investments that benefit Malaysia without interfering in the geopolitics of any country, said Prime Minister Datuk Seri Anwar Ibrahim.

Although aware of the strained relations between two major powers, namely China and the United States, he said Malaysia is not interested in favouring either side.

“Only a few issues have been highlighted, such as the Palestine and China issues, because many Western countries are somewhat suspicious about why we seem to be aligning with China. My response is simple, we are a small country, we want to develop, and we prioritise the well-being of our people.

“The cumulative investment from the US is still number one and we have no problem with investors from the US, we welcome them warmly,“ he said when addressing the monthly assembly of the Prime Minister’s Department here today.

Malaysia also does not want to stir up issues with China and even though there may be slight differences in opinion, such matters are discussed amicably, he added.

“So when I’m asked about the issue of Chinaphobia or Sinophobia, my response is that there is no reason for hostility and being anti-anyone,“ he said.

Anwar added that although Malaysia may have differing opinions regarding the US stance on the Israel-Palestine conflict or the violence and injustices perpetrated by Zionist Israel on Palestinian land, particularly in Gaza, these issues are voiced clearly.

“It’s not that I choose to make harsh statements against others; I prefer to focus on correcting our country’s economy, and structure, as well as elevating our nation’s dignity.

“However, when innocent children, babies, women, and people are destroyed every day, when facing President Joe Biden, of course, I gather the strength to express my stance.

“I said I didn’t raise the issue of him recognising Israel, or supporting Israel; I said stop this oppression and killing immediately,“ he said.

Source: Bernama

Malaysia welcomes beneficial investments, not favour any country – PM Anwar

While geopolitical tensions between China and the United States and the European Union (EU) offer Malaysia opportunities to grow trade and investments, experts say consistent engagement with international partners is crucial to ensure such opportunities materialise.

Malaysia’s commitment to fostering strong international relationships and positioning the nation as a prime investment destination is exemplified by the Prime Minister Datuk Seri Anwar Ibrahim’s working trips to Australia and Germany recently.

Speaking with StarBiz, Asia-Pacific Economic Cooperation (Apec) secretariat executive director Tan Sri Rebecca Fatima Sta Maria highlighted the importance of maintaining consistent business and international relationships.

She said regular engagement in international relations and diplomacy helps foster strong partnerships.

“You must set the tone at the highest level about Malaysia’s openness for business and interest in foreign investment. So, there is absolutely no problem with the Prime Minister going on his various trip missions,” the former International Trade and Industry secretary-general told StarBiz.

In the backdrop of China-US and EU-China trade tensions, Malaysian Institute of Economic Research head of research Shankaran Nambiar said the geopolitical tensions presented greater-than-normal opportunity for countries like Malaysia as investors and companies seek alternatives to China.

“The ‘anything but China’ policy will encourage countries with investments in China to relocate to Malaysia. Even Chinese companies will want to be based in Malaysia,” he added.

Despite recognising the possibility for Malaysia to do better, Sta Maria said the government must work hard to keep Malaysia competitive at the global stage.

She stressed on the importance of having a presence and engaging with international business communities and policymakers to foster political and economic relationships.“It is important to be seen being on the ground, to get a feel about what perceptions businesses have towards Malaysia. It is important to have those interactions,” she noted.

With Malaysia set to chair Asean next year, Sta Maria expects the prospects for trade and investment to improve.

Commenting on the positives, Nambiar pointed out Malaysia’s stable political environment and abundant supply of educated and skilled workers.

“We also offer a good investment ecosystem, strong investment facilitation and we have agencies such as Malaysian Investment Development Authority that have a long tradition of being investor-friendly. Besides, our economic fundamentals are solid,” he noted.

For example in the electronics and electrical sector, he said Malaysia enjoys a competitive edge, boasting top-notch supporting services and networks in the region.

He said such advantages position Malaysia well for leveraging opportunities in the global market.

When asked if Malaysia needs a free trade agreement (FTA) or other deals with the EU or other economies to gain a competitive edge against its rivals, Nambiar said the country has attempted to sign an FTA with the EU multiple times, but failed.

Instead of engaging in long talks of FTA with the EU, he suggested turning the focus to attracting investments from them.

“Rather than engage in long, costly negotiations with the EU, as a quick fix, we should direct our attention to attracting investments from the EU.

“At a firm-level that would give us quick results. An FTA with the EU should be on the radar,” he added.

On the impact of a potential Donald Trump’s second presidency term, Nambiar suggested it might escalate trade tensions with China, potentially redirecting investments intended for China to Malaysia.

“Trump’s attempt to make America great again will make Malaysia a tiger, since investments that are destined for China could find their way to Malaysia,” he said.

Consequently, he said Trump’s policies could inadvertently bolster Malaysia’s as an investment destination.

In contrast, Sta Maria emphasised the importance of maintaining business relationships regardless of the outcome of the November US presidential election.

“Regardless of who is in the White House, maintaining the economic relationship is important,” she noted.

In a recent survey conducted by Nomura Research, about 40.7% of respondents perceive a Trump second term (2.0) will have a positive impact on Asian economies, compared with his first term.

The survey findings, which received around 60 responses, noted that 33.9% of respondents expect Trump 2.0 to have a similar negative impact as his first term, while only 25.4% anticipate it to be worse than before.

Nomura Research said the findings were intriguing as the respondents suggested that although a second Trump presidency was viewed negatively for Asia overall, a majority expected it to be less detrimental than his first term.

“Our interpretation is that investors believe Trump 2.0 will be less of a shock factor (compared to Trump 1.0), given greater familiarity with his policies. We broadly agree,” the Japanese investment bank noted.

Unlike Trump’s first presidential term, Nomura Research said Asia is more prepared this time.

It added firms and investors have become well attuned to the ongoing trends of US-China decoupling and shifts in global supply chains, and now know how to navigate the situation better.

Source: The Star

Important to maintain international business ties

Selangor government has unveiled plans designed to help businesses, especially those from abroad, establish or expand their operations in the state.

State investment, trade and mobility committee chairman Ng Sze Han said the pilot Selangor Soft Landing (SSL) initiative emerged after considering feedback from last year’s Selangor International Business Summit events.

Ng added that it was important for the state to make things easier for potential investors.

He said the initiative, orchestrated by Invest Selangor Bhd in collaboration with strategic partners, would offer unparalleled support to potential investors seeking to establish or expand their business operations in Selangor.

“SSL is designed to enhance Selangor’s investment appeal and operate with a modest budget of less than RM50,000, while aiming to significantly contribute towards Invest Selangor’s ambitious goal of securing RM50bil in investments for the state this year.

“The objectives of SSL are to provide a holistic platform and support for new and potential investors, optimise their feasibility costs and assist in accelerating the execution of their projects,” Ng said.

Investors eligible for the programme must be first-time investors in Selangor, focusing on one of seven targeted clusters: electronics and electrical, food and beverage, life sciences, transport equipment, machinery and equipment, logistic services, and digital investment.

The initiative not only caters to the pre-investment phase but also supports investors in the post-investment phase requiring a signed sales and purchase agreement or tenancy agreement within Selangor.

Ng said those who qualified for the programme would receive support and access to business ecosystems, complimentary co-working or office spaces, special rates for talent search and support as well as corporate-rate accommodation, during both the pre-investment and post-investment phases.

“This initiative underscores Selangor’s commitment to fostering a conducive investment environment, reinforcing its position as a leading economic hub in Malaysia and South-East Asia,” he added.

The SSL programme is supported by an array of government agencies and private entities, including the Malaysian Investment Development Authority, Invest Selangor, Cyberview Sdn Bhd and Selangor Information Technology and Digital Economy Corporation, and various hotels offering special corporate rates.

The programme will run until Dec 31 on a first-come, first-served basis.

For details, interested investors are encouraged to reach out to Invest Selangor via its official website or email.

Source: The Star

Incentives set to draw investors

The revival of the proposed Malaysia-European Union (EU) Free Trade Agreement (FTA) could boost investments and opportunities for Malaysian businesses, say experts.

Former deputy international trade and industry minister Ong Kian Ming said it was the right time to revive the Malaysia-EU FTA as it would allow the country to be on a par with regional competitors.

“Vietnam has signed an FTA with the EU and Indonesia is negotiating an FTA with the EU,” he told the New Straits Times.

He said this was important given the many opportunities and challenges to attract more foreign direct investments (FDI) into Malaysia.

He was commenting on Prime Minister Datuk Seri Anwar Ibrahim’s call for the restart of talks on the long-stalled Malay-sia-EU FTA.

Anwar said the FTA would allow Europe to capitalise on Malaysia as a gateway to Asia and leverage the country’s open market policies.

Ong said an FTA with the EU would allow Malaysia to have more “substantiative” negotiations in “challenging” areas, including the palm oil sector.

A number of sectors would benefit from an FTA, including in high-end electrical and electronics, palm oil, automotive and electric vehicles, logistics and financial services, he said.

“The restart of the Malaysia-EU FTA talks would provide a boost of confidence to those who have invested in Malaysia and to those who are interested in investing in Malaysia.”

Irish chamber of commerce Malaysia chairman Donal Crotty described Anwar’s push as “excellent” as the EU had been pushing for a restart of talks, which ended in 2012.

He said an FTA with the EU would boost Malaysia’s credibility and reputation as an FDI partner.

“Europe is the second largest collective economy in the world making up 29.8 per cent of global gross domestic product, and is thus a massive market opportunity for Malaysian products.”

Trade between Malaysia and EU stands at about €50.3 billion up to 2022.

“Economic results of FTAs over the past 30 years suggest a mean increase of trade of 4.5 per cent per annum.”

He said the FTA would be good in the context of environment, social and governance (ESG) in trade and foreign relations.

“The EU is a primary influencer where ESG regulations are concerned,” he said, adding that this aligned with Malaysia’s own ESG aspirations.

“This alignment may enable a significant advantage as part of any FTA agreement.”

Centre for Market Education chief executive officer Dr Carmelo Ferlito also said the time was right for a Malaysia-EU FTA.

“Given the weaker economic scenario in China and geopolitical tensions in the region, Malaysia can serve as a gateway for businesses in Southeast Asia.

“Obviously, this needs to be paired with the right set of business-friendly regulations in place,” he said, adding that this included issues related to finance, labour, licensing and immigration.

Source: NST

‘FTA with EU will put Malaysia on a par with neighbours’