The country’s policy consistency and adaptability have encouraged investors to implement longer-term commitments while equipping the nation with the capacity to navigate evolving global challenges effectively, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said Malaysia’s commendable performance in securing RM254.7 billion in approved investments during the first nine months of 2024 is a testament to investors’ unwavering confidence in our economic policies and direction.

“This 10.7 per cent year-on-year growth and the creation of over 159,000 jobs speak volumes of Malaysia’s strategic frameworks and our concerted efforts to attract high-impact investments for sustainable growth,” he said in a post on his official X account today.

Tengku Zafrul noted that as the nation progresses towards becoming one of the top 30 global economies by 2033, the MADANI government is steadfast in its commitment to fostering an environment where both domestic and international investors can thrive.

“Our focus extends beyond achieving investment targets; we are laying the foundation for a sustainable and inclusive economy that will empower all Malaysians,” he added.

Source: Bernama

Malaysia’s policy consistency, adaptability attract long-term investment commitments – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim said today Malaysia welcomes investments from Denmark in high-value sectors.

In a Facebook post, he said the investments in green energy, renewable energy, digital economy and healthcare from the country were welcomed by the government.

This followed a visit by Danish Foreign Minister Lars Løkke Rasmussen in Parliament this afternoon.

“I also appreciate the investors from Denmark who have established regional hubs here, especially Maersk and United Plantations,” he said.

Additionally, he said that during the visit, the aspects of bilateral relations and cooperation between the two countries were discussed between him and Rasmussen.

He also welcomed the reopening of the Danish embassy in Kuala Lumpur last August.

Source: NST

Anwar welcomes Danish investments in high-value sectors

After missing the chance to achieve high-income nation status twice, Malaysia is on track to achieve it between 2027 and 2029.

Economy Minister Rafizi Ramli said the 13th Malaysia Plan (13MP) would be geared towards ensuring Malaysia achieved the target.

“We missed the opportunity to achieve high-income nation status twice in 2012 and 2016 due to the circumstances then.

“Based on the projections, we were close to achieving high-income nation status.

“Nevertheless, we have done well. If we can keep up the momentum, we can achieve high-income nation status as early as 2027.”

He said this after the Libat Urus Rancangan Malaysia Ketiga Belas programme with the state government at the Setia Spice Convention Centre in Bayan Lepas here.

Present was Chief Minister Chow Kon Yeow.

Elaborating, Rafizi said the threshold for high-income nation changed every two years.

He said for example, the gross national income per capita was US$14,000 in 2022.

“We were not far from the threshold then.

“If we can maintain our economic growth and grow as fast as other nations, then we are on track to achieving high-income nation status.”

Earlier, Rafizi said the 13MP would focus on further developing the artificial intelligence industry.

He said the government needed to see how to build the overall ecosystem.

“Our presence now is in the data centre (sector).

“After this, we need to ensure we build the value chain to encourage local companies to participate.

“The economic opportunity is huge. Our focus is Penang as the state is at the forefront.”

Source: NST

Rafizi: Malaysia on track to achieve high-income status

According to Lee Ting Han, Johor state EXCO member for investment, trade, consumer affairs & human resources, 11 companies have expressed interested in setting up operations in Forest City’s Special Financial Zone (SFZ) as of November. Of which, eight have expressed their interest to set up family offices — four of whom hail from Malaysia, while the others are from Singapore, Indonesia and Taiwan, says Lee at a media doorstop on Dec 11. 

Under the newly announced SFZ, several incentives have been announced. These include a 0% corporate tax rate for family offices, a 0% to 5% corporate tax rate and a 15% flat income tax rate for knowledge workers. Lee says that as at December, the Malaysian ministry of finance is working on making the incentive packages legally binding, which is scheduled to be in place by 1Q2025.

Forest City isn’t the only area that is attracting investments. In July, The Edge Singapore reported that data centres with capacity of 1GW are being built in Johor. DC Byte reports that capacity is now at 1.5GW.

Bernama says 10 data centres had begun operations as of October this year, while seven were in the process of development in Johor.

Gregory Seow, Singapore head of global banking, and global head of financial institutions group, group global banking, Maybank, says: “We’ve spoken to many clients and they have discussed some pain points.”

Infrastructure, security, ease of clearing customers, ease of payment and free movement of capital were some of the pain points discussed by Seow with his clients. “Forest City is supposed to be the administrative headquarters, and the authorities are proposing a financial hub. But connectivity is required,” Seow observes. 

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

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

“More importantly, our Singapore-based clients have signalled interest. Last month, I had a chairman-level lunch with a very established conglomerate in Hong Kong. They signalled their interest in obtaining a piece of land [in Johor] and getting contracts. The Chinese companies are debating whether they should go to the Eastern Economic Corridor (EEC) in Thailand, or here,” Seow says. 

In October, Asean and China successfully concluded the negotiations for the Asean-China Free Trade Area (ACFTA) 3.0 upgrade. The upgraded agreement aims to modernise and enhance the existing trade framework by deepening commitments in traditional areas while introducing new domains of collaboration, including the digital economy, green economy, supply chain connectivity, competition and consumer protection, and support for micro, small, and medium enterprises (MSMEs).

OCBC Global Market Research says investment flows from Hong Kong and China into Malaysia are likely to continue in 2025. Investment commitments from China and Hong Kong into Malaysia’s manufacturing sector have been broadly stable over the past few years it indicates. “The initiation of the [JS-SEZ] can catalyse further diversification out of China into the SEZ,” OCBC Global Market Research says.

PM Anwar visited China from Nov 4 to 7 while Malaysian Agong Ibrahim Sultan Iskandar also visited China from Sept 19 to 22. “With US-China trade tensions rising, the risk is that Malaysia is caught between the rock and the hard place. This was implied when Deputy Trade Minister Liew Chin Tong, suggested that Chinese companies avoid using Malaysia as a base to ‘rebadge’ products between the rock and the hard place,” OCBC cautioned. 

Source: The Edge Singapore

Forest City manages to attract family offices; Johor continues to attract investments

Selangor, Malaysia’s economic powerhouse, is on track to surpass its RM50 billion investment target for this year, driven primarily by growth in the manufacturing and services sectors. 

In the first half of the year alone, the state’s approved investments reached RM34.9 billion.

According to Datuk Paul Khong, group managing director and head of Savills Malaysia, Selangor’s impressive progress over the past three decades has been fuelled by advancements in economic development, infrastructure, urbanisation, as well as education and healthcare. 

Its strategic location within the Klang Valley, coupled with its status as the country’s most industrialised and urbanised state, continues to underpin this growth, he said.

In 2022, Selangor contributed 25.5 per cent to Malaysia’s gross domestic product (GDP)—a historic milestone—representing a 0.7 per cent increase from the previous year. 

The Malaysian Investment Development Authority (MIDA) reported that last year, Selangor outperformed its RM45 billion investment target by recording RM55.3 billion in total investments.

Khong said that the state’s growth is propelled by its strategic focus on economic diversification and its logistical and industrial strengths. 

High-growth sectors like aerospace, logistics, and halal industries are significant contributors to GDP and employment, he told Business Times.

”Under the 2025 Budget, the expansion of Port Klang and investments in renewable energy infrastructure reflect the state’s commitment to fostering a resilient and sustainable economic model,” Khong said.

He also said that i-City is a testament to the state’s commitment to high-tech urban and economic development.

Khong described i-City as the country’s premier smart city, integrating residential, commercial, recreational, and technological elements into a self-sustaining ecosystem. 

In 1997, then acting prime minister Datuk Seri Anwar Ibrahim launched i-City, sparking the transformation that would define the future.

Fast forward today with cutting-edge Internet of Things infrastructure, i-City has become a magnet for IT firms and international investors, solidifying Selangor’s leadership in the digital economy, Khong said.

Khong said that the latest addition to i-City, SkyCity Tower, features Malaysia’s tallest glass water slide, further enhancing the recreational and architectural appeal of Selangor. 

He said that Selangor also continues to boast its development trails in Petaling Jaya, Subang Jaya, and, of course, its main state capital of Shah Alam, which holds many landmark developments all around.

He said that i-City, which is the most modern “smart city” and integrated township development within Shah Alam and also ranked well in the country, is also a “statement and testimony” of the high-tech developments in Selangor itself.

i-City is a “game-changer” in Selangor’s urban and economic landscape. It is the “flagship smart city,” which integrates residential, commercial, recreational, and technological components into a self-sustaining urban ecosystem.

The project emphasises cutting-edge technologies, which include IoT-enabled infrastructure that attracts IT firms and international investors, thus cementing Selangor’s role as a leader in the digital economy.

Khong said that the latest introduction of SkyCity Tower in i-City also features Malaysia’s tallest glass water slide, which adds to the software offerings available in recreational aspects and the architectural landmarks of Selangor. i-City has a strong appeal as a tourism destination, forming a reputable hub for modern and sustainable urban developments.

A market insider noted that Shah Alam, Selangor’s capital, is a key investment destination due to its robust economic activity and industrial presence. 

Infrastructure projects like the Light Rail Transit 3 (LRT3) line are expected to boost connectivity, drive up property values, and attract more buyers and tenants, he said.

“The i-City development in Shah Alam exemplifies Selangor’s push toward high-tech urbanisation,” the insider said.

He said that Shah Alam’s transformation owes much to the visionary leadership of the Selangor Ruler, Sultan Sharafuddin Idris Shah.

“Under his guidance, Shah Alam has evolved from a modest administrative centre into a thriving international hub, embodying innovation, cultural diversity, and sustainable growth. The Ruler’s foresight has been pivotal in shaping Selangor’s transformation. 

“Recognising Shah Alam’s potential as a dynamic city, the Ruler made a landmark decision in 2008 to designate i-City as an International Zone. This bold move set the stage for a technologically advanced ultrapolis that redefined the future of the capital city,” he said.

Source: NST

Selangor set to exceed RM50bil investment target

Malaysia has successfully recorded total approved investments valued at RM254.7 billion from various economic sectors for the first nine months of this year, marking an increase of 10.7 per cent compared with RM230.2 billion for the same period in 2023.

Prime Minister Datuk Seri Anwar Ibrahim said this amount involves 4,753 projects, which are expected to generate 159,347 new job opportunities.

“This was informed during my chairing of the National Investment Council (MPN) Meeting No. 8/2024 regarding the investment performance,” he said in a post on X today.

The Prime Minister said MPN had also agreed and confirmed the Guidelines for the Development of Sustainable Data Centres, which include metrics for Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).

He added that these guidelines would be applied as eligibility requirements for tax incentives under the Digital Ecosystem Acceleration Scheme (DESAC), an initiative to improve policies related to efforts to drive investment in the country’s data centres.

“The Madani Government continues to improve existing policies and create new policies to enhance the nation’s competitiveness,” said Anwar.

Source: Bernama

Malaysia records approved investments of RM254.7bil in first 9 months of 2024 – PM

Local suppliers can reduce risks and enhance their export competitiveness by leveraging business opportunities with Malaysia’s Free Trade Agreement (FTA) partners in trade deals with the US, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry said that in line with the National Semiconductor Strategy (NSS), Malaysian companies are encouraged to “move up the industry value chain” by increasing their research and development (R&D) activities.

“Collaborating with major industry players, particularly from the US, can enhance local industry’s capabilities in microchip innovation and the development of new technologies in high-demand sectors such as artificial intelligence (AI) and 5G,” Miti said in a written response on Parliament’s website on Monday.

The ministry said this in reply to a question from Senator Dr A Lingeshwaran regarding the potential impact on Malaysia following Donald Trump’s successful re-election as the US president.

According to Miti, Trump has announced plans to impose new tariffs of up to 25% on imports from Mexico and Canada, along with an additional 10% tariff on all goods imported from China starting next year.

The ministry added that Malaysia, like other nations, is likely to experience shifts in trade patterns as global supply chains realign.

At the same time, it is confident that Malaysia’s position as a neutral and non-aligned country could further strengthen the nation’s bilateral relations with the US.

“This approach would encourage US companies to continue investing in Malaysia as part of their risk-mitigation strategies amidst ongoing geopolitical tensions.

“Indirectly, this ensures a positive outlook for Malaysia, underpinned by its strong fundamentals and the adoption of globally favourable trends,” it added.

Source: Bernama

Local suppliers can boost export competitiveness in US trade via other FTAs — MITI

The significant increase in investments, especially in the cutting-edge technology sector, should be utilised by local companies so that the people will continue to be given the appropriate opportunities.

Prime Minister Datuk Seri Anwar Ibrahim said CG Global Profastex Manufacturing Sdn Bhd, located in the Prai Industrial Zone, Penang, is one of the good examples that has successfully penetrated the global market.

“I extend my congratulations and encouragement to all the people of CG Global (of which 80% of the workforce are women) for successfully penetrating the global market, and is, among other things, the result of support programmes and incentives from the government,” he said through a post on X.

On Saturday, he had the opportunity to visit CG Global — a Bumiputera-owned small and medium enterprise (SME) that is a leading manufacturer in the provision of a spectrum of CEM (contract electronics manufacturing) services.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry always focuses on ensuring that female entrepreneurs have the same space and opportunity to grow as other businesses led by male entrepreneurs.

“As the leader of the Economic Pillar during the Asean 2025 chairmanship, Miti will continue to highlight proactive initiatives that prioritise gender equality in entrepreneurship in line with the Asean 2025 theme of “Inclusivity and Sustainability,” he said through a post on X.

Tengku Zafrul, who also participated in the visit, said CG Global is a bumiputera women-owned SME that has been operating since 2016.

“When it was first established, it only provided services for multinational companies around Penang and Ipoh.

“But now its business is almost 100 per cent export-based, with customers from various countries such as the United States, Australia, France, the UK and China,” he said.

He explained that CG Global employees are 100% indigenous, and almost 80% of the employees are women, of which 90% are diploma and degree holders.

“This is in line with one of the priorities of our economic success, which is to ensure that women entrepreneurs are not marginalised in Asean,” he added.

Source: Bernama

PM: Significant increase in tech sector investments should benefit local firms

The Free Trade Agreement (FTA) between Malaysia and South Korea is expected to be finalised next year, subject to political stability in South Korea, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said the FTA negotiations have already started.

“South Korea’s political situation is indeed uncertain for now; it is yet to be determined whether it will affect the FTA negotiations.

“Nevertheless, we have started FTA negotiations and if the political process in South Korea does not affect negotiations, it will be signed next year,“ he said in response to a question from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) who asked if South Korea’s crisis will affect the FTA negotiations at the Dewan Rakyat today.

During Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to South Korea, both countries expressed their commitment to expedite any delayed negotiations with the agreement expected to be signed during President Yoon Suk Yeol’s return visit to Malaysia.

Meanwhile, Liew said the New Investment Incentive Framework, expected to be announced as early as the first quarter of 2025, will ensure that investment companies receive incentives based on a set evaluation score.

“This evaluation score will determine the type of incentives given to investors, based on their contribution to the economy according to the six main aspects set out in the National Investment Aspiration,“ he said.

Source: Bernama

Malaysia-S. Korea FTA expected to be finalised next year – Liew

Malaysia is set to drive an inclusive and sustainable economic agenda as it assumes the chairmanship of Asean in 2025, focusing on equitable distribution of the economic benefits of regional integration, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He emphasised that Malaysia’s leadership under the theme “Inclusivity and Sustainability” will ensure that Asean’s economic growth extends to all, including women, youth, and micro, small, and medium enterprises (MSME).

“Malaysia is determined to ensure the economic wins of regional integration benefit all, including women, youth and MSMEs. We are creating pathways for the greatest participation from these groups in Asean’s development next year,” he said at the Asean-Malaysia Business Forum 2024 today.

On Priority Economic Deliverables (PED) to boost Asean’s standing, Tengku Zafrul said under the Economic Pillar, the Asean chairmanship will focus on four key PED which are enhancing trade and investment, creating an inclusive and sustainable pathway, promoting integration and connectivity, and building a digitally resilient Asean.

“Our proposed PEDs will be instrumental in establishing Asean as a global economic leader. With Asean projected to grow to a GDP (gross domestic product) of US$4.5 trillion (RM20 trillion) by 2030, this is a pivotal time to deepen economic integration and resilience,” he explained.

Tengku Zafrul noted that the PED will address key areas, including upgrading free trade agreements, fostering sustainable investments, and promoting digitalisation through the Asean Digital Economy Framework Agreement.

“Special attention will be given to the semiconductor supply chain, Asean tourism and climate financing,” he added.

The minister highlighted specific programmes to empower marginalised groups.

“Initiatives like the ‘Women in Trade and Industry’ programme and the Asean Women Entrepreneurs’ Network aim to provide greater regional access for female entrepreneurs. We want to ensure Malaysian women entrepreneurs have greater access to opportunities within Malaysia and Asean. Events like the Asean Women Economic Summit 2025 will serve as platforms for collaboration and growth.”

For MSMEs, Tengku Zafrul said the emphasis will be on supporting their green transition and export expansion, leveraging frameworks such as the i-ESG Framework and regional trade agreements such as the Regional Comprehensive Economic Partnership.

“Youths, women, and MSMEs will play a critical role in Asean’s economic trajectory. We are ensuring that they are not just participants but active contributors to Asean’s growth story,” he added.

Additionally, Tengku Zafrul underscored Asean’s rise as a global economic powerhouse.

“Currently the world’s fifth-largest economy, Asean is expected to become the fourth largest by 2030, fuelled by robust GDP growth, trade momentum and a growing population exceeding 800 million by 2045. Asean is becoming a neutral base for global supply chains amid geopolitical shifts. Malaysia’s chairmanship offers a vital opportunity to attract investments and expand intra-Asean trade, which now stands at 25%.”

Looking ahead, he emphasised the importance of unity and collaboration among Asean nations to navigate global challenges.

“How Malaysia steers Asean in 2025 will have an impact that lasts well beyond our lifetimes. This is our chance to ensure Asean’s prosperity is inclusive, equitable and sustainable,” he said.

As Asean gears up for its next phase of economic integration, Tengku Zafrul noted that Malaysia’s leadership will be crucial in ensuring that the benefits are shared by all segments of society, fostering growth and resilience across the region.

Source: The Sun

Malaysia, as Asean chair, to focus on equitable distribution of economic benefits in region

The significant increase in investments, especially in the cutting-edge technology sector, should be utilised by local companies so that the people will continue to be given the appropriate opportunities.

Prime Minister Datuk Seri Anwar Ibrahim said CG Global Profastex Manufacturing Sdn Bhd located in the Prai Industrial Zone, Penang is one of the good examples that has successfully penetrated the global market.

“I extend my congratulations and encouragement to all the people of CG Global (of which 80 per cent of the workforce are women) for successfully penetrating the global market, and is, among other things, the result of support programmes and incentives from the government,” he said through a post on X.

Today (Dec 7), he had the opportunity to visit CG Global – a bumiputra-owned small and medium & enterprise (SME) that is a leading manufacturer in the provision of a spectrum of CEM (contract electronics manufacturing) services.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry always focuses on ensuring that female entrepreneurs have the same space and opportunity to grow as other businesses led by male entrepreneurs.

“As the leader of the Economic Pillar during the Asean 2025 chairmanship, MITI will continue to highlight proactive initiatives that prioritise gender equality in entrepreneurship in line with the Asean 2025 theme of “Inclusivity and Sustainability,” he said through a post on X.

Tengku Zafrul also participated in the visit, said CG Global is a bumiputera women-owned SME that has been operating since 2016.

“When it was first established, it only provided services for multinational companies around Penang and Ipoh.

“But now its business is almost 100 per cent export-based, with customers from various countries such as the United States, Australia, France, the UK and China,” he said.

He said CG Global employees are 100 per cent indigenous, and almost 80 per cent of the employees are women of which 90 per cent are diploma and degree holders.

“This is in line with one of the priorities of our economic success, which is to ensure that women entrepreneurs are not marginalised in Asean,” he added.

Source: Bernama

PM: Significant increase in technology sector investments should benefit local companies

Malaysia can leverage its mature digital infrastructure and skilled workforce to become the focal point for regional headquarters of multinational companies (MNCs) and high-skilled services and manufacturing.

Strategic advisory firm, Bower Group Asia, associate director, Darryl Tan, said that Malaysia — as chairman of ASEAN in 2025 — and each Southeast Asian country, has a niche in the global value chain that they can leverage.

He cited how Singapore serves as the regional headquarters for many MNCs, while Malaysia serves as a high-skilled service and manufacturing hub for these companies, and Indonesia and Vietnam focus more on the manufacturing side of the value chain.

As chair of ASEAN in 2025, Tan emphasised that many of the strategies outlined by Prime Minister Datuk Seri Anwar Ibrahim support the vision of leveraging each member country’s advantages.

“Together, they can make ASEAN a competitive hub,” he said in response to questions raised during the Bernama Global news programme on Wednesday (Dec 4), by host Jessy Chahal, regarding the topic “Southeast Asia’s markets: Navigating Challenges and Opportunities in 2025”.

This includes fostering digital adoption at every level of the supply chain, increasing regulatory cooperation as well as increasing logistical linkages to enable smoother transactions of goods and expertise across borders.

Tan said Putrajaya should also leverage its significant investments in renewable energy to attract companies that want to set up environmentally sustainable manufacturing plants in the region.

He highlighted that Malaysia should take advantage of its regulatory and policymaking experience — for example, in the digital and energy sectors — and share this knowledge to foster stronger regulatory cohesiveness across the region.

“Deeper economic integration within the region will allow ASEAN to position itself as a hub for businesses at every level of the supply chain,” he said.

Asked about Malaysia’s economic outlook, Tan said the country would benefit from the overall tech boost, as “we are a major exporter of semiconductors and electrical and electronics (E&E) products”.

There will be stable growth next year, with the economy expanding by 4.5-5.5 per cent supported by the continued demand for E&E goods, as multinational companies invest heavily in new technologies, particularly artificial intelligence (AI).

Contributing to Malaysia’s stability will also be the sustained domestic demand.

Despite the government’s plans to further rationalise petrol subsidies next year, he said any spillover effects from the increase in the cost of living would be offset by government initiatives, including the increase in the minimum wage and the rise in civil servant salaries.

Source: Bernama

Malaysia can emerge as regional focal point for multinational firms in ASEAN – Economist

ASEAN countries have the potential to capitalise on significant opportunities in the digital economy, manufacturing, and supply chains led by BRICS countries, which are dialogue partners of the region, said the Ministry of Investment, Trade and Industry (MITI).

Its Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the digital economy sector holds great potential, particularly due to rapid advancements in technologies such as artificial intelligence (AI), as well as the demographic trend in ASEAN where nearly half of the population is under 30-years-old.

“If we look at the cooperation with BRICS countries in the field of e-commerce, we can see that financial technology and digital innovation can open new pathways to strengthen trade initiatives in our efforts with other ASEAN countries and BRICS,” Tengku Zafrul said during the Minister’s Question Time session in the Dewan Rakyat today.

He was responding to a supplementary question from Young Syefura Othman (PH-Bentong) on how Malaysia can leverage the market potential controlled by BRICS members (whose membership has grown from Brazil, Russia, India, China, and South Africa to also include Egypt, Ethiopia, Iran, and the United Arab Emirates) and which sectors present the biggest opportunities for ASEAN.

Tengku Zafrul also said that as the chair of ASEAN in 2025, Malaysia will also have the opportunity to create synergies with dialogue partners, including BRICS countries.

“The manufacturing value chain in Malaysia and ASEAN can be enhanced through cooperation with BRICS countries, China, and India.

“Therefore, the government plans to enhance free trade agreements (FTA) with dialogue countries, including China and India, during the ASEAN chairmanship next year,” he said.

Additionally, the ASEAN chairmanship in 2025 will also discuss knowledge transfer and resource sharing, said Tengku Zafrul.

“Thus, strengthening supply chain resilience can be achieved through diversification in the manufacturing sector, and we aim to reduce disruptions caused by geopolitical uncertainties, thereby boosting the region’s competitiveness,” he added.

Source: Bernama

ASEAN has potential in digital economy, manufacturing, and supply chains led by BRICS members – MITI

United Overseas Bank (UOB) forecasts Malaysia’s economy to grow 4.7 per cent for 2025, reflecting normalisation from a high base effect, strong trade diversification and supportive domestic drivers.

UOB senior economist (Malaysia) Julia Goh said Malaysia continues to have strong domestic levers supported by its stable labour market conditions, ongoing investments, energy transition efforts, implementation of national masterplans and regional development despite higher external risks.

“With a total expenditure budget of RM421 billion or 20.2 per cent of gross domestic product (GDP) for next year, the fiscal engine remains expansionary despite a narrower fiscal deficit target of 3.8 per cent of GDP.

“Potential investments in the pipeline include RM25 billion by government linked-investment companies (GLICs) alongside several public-private partnership projects, and more than RM40 billion worth of government construction projects to commence in 2025,” she said at UOB Global Economics and Market Research’s 2025 Macroeconomic Outlook virtual media briefing today. 

Ringgit outlook

Goh said that despite sound economic and financial fundamentals, the ringgit is vulnerable to external developments, especially the potential upcoming Trump tariffs which is expected to weigh on Asian foreign exchange.

“The ringgit which is closely correlated to the yuan will likely take direction from the latter. There should be more efforts to encourage more consistent inflows by government linked companies (GLCs) and Malaysian corporates,” she said.

She also expected the Qualified Resident Investor programme to offer flexibility for resident corporates to reinvest abroad after repatriation of foreign funds, and the liberalisation of foreign exchange policies for multilateral development banks and non-resident development financial institutions to issue ringgit-denominated debt securities for use in Malaysia and provide ringgit financing to resident entities. 

Source: Bernama

UOB projects 4.7 pct GDP growth for Malaysia in 2025, driven by strong domestic levers, investments

United States envoy Edgard D. Kagan has today downplayed the impact of the upcoming Donald Trump presidency on the country’s ties with Malaysia, saying it will continue to benefit both sides.

However, the US ambassador to Malaysia conceded that the exact details of the new administration’s policies will not be known until it takes over in January next year.

“I think that it’s very clear, and this has been true from both candidates, that there is a strong desire to increase manufacturing jobs in the United States, and there’s an effort to look for a mix of policies that will do that.

“I think that that is very, very clear that that is going to be an important goal for the incoming administration, based on what they’ve said during the campaign,” he told reporters after delivering a talk on the US-Malaysia economic partnership at the Penang Institute here.

“I feel very confident that you’re not going to see a fundamental destruction or major change in the relationship,” he added, when explaining how the trade ties are set to continue.

As for concerns on tariffs being imposed on Malaysian-made semiconductor items, such as those that contained certain Chinese products, Kagan said the integrity of supply chains is critical when it comes to this.

He said it is very dangerous for any country to become a vehicle or locale for mislabelling of goods.

“There is a perception, and I think it has been largely correct, that Malaysia does offer a great deal of integrity in terms of supply chains,” he said, adding that this was one of the reasons that made Malaysia a very attractive destination for US investments.

He welcomed recent remarks by Deputy Minister of Investment, Trade and Industry, Liew Chin Tong, that Malaysia will not be a vehicle or a locale for mislabelling of goods.

He said the integrity of supply chains also means protecting of intellectual property, and that it is also critical for companies that are operating at the cutting edge of technology.

“You do not want to be operating in a place where your intellectual property can be stolen. And in that regard, Malaysia has a tremendous advantage because of the fact it has a 5G network that has trusted technology and trusted suppliers,” he said.

Kagan said it is also worth to remember that a lot of companies started moving out of China based on concerns about intellectual property rights (IPR) that would have happened regardless of the geopolitical tension.

Earlier, in his speech, Kagan said that since 2021, US companies have announced over RM200 billion in new investments in Malaysia.

He said Malaysia, especially Penang, has one of the world’s major ecosystems in technology.

“So I think that it is worth keeping in mind that Penang’s strength isn’t just the policies towards the manufacturers, towards MNCs,” he said, referring to multinational companies.

He said it is also the talents that have led to the development of a sophisticated and resilient ecosystem, which made Malaysia attractive in a way that went beyond whatever incentives offered by the government.

He said Malaysia is very much the centrepiece of Southeast Asia, and it is a critical region for the United States.

“It is worth keeping in mind that US exports have increased significantly as well as US imports,” he said.

He said US remains the largest investor in Southeast Asia and the largest foreign investor.

According to data released by the US Embassy, Malaysia’s exports to the US increased 19.1 per cent in 2024.

Malaysia’s exports to US totalled RM159.4 billion in 2024. The US-Malaysia two-way goods trade increased 29.1 per cent in 2024.

Source: Malay Mail

Envoy says beneficial economic ties between US and Malaysia set to continue, even with Trump administration 

Economic and trade cooperation between China and Malaysia continues to advance towards new higher-value opportunities, according to China’s Ambassador to Malaysia Ouyang Yujing.

“In order to achieve economic growth in the future, the digital economy and green development would represent two key trends, aligning with the high-quality development of a green Belt and Road,” Ouyang said at the launch of a report titled Assessing the Roles of Chinese Enterprises in Malaysia’s Economic Development yesterday.

For the purpose of exploring new opportunities in the digital sector, the ambassador also invited the Malaysian government and business sector to participate in the Global Digital Trade Expo taking place in Hangzhou, Zhejiang Province, next September.

Ouyang also urged companies to concentrate on sectors like clean energy, electric vehicles, green finance, and green infrastructure construction for cooperation in green investments.

“China’s annual direct investment flow into Malaysia nearly quadrupled from 2014 to 2023, recording more than US$2bil last year,” he said.

Meanwhile, South-East Asia Research Centre for Humanities senior research fellow Ong Sheue Li said China has been Malaysia’s largest trading partner for 15 consecutive years, with bilateral trade reaching RM450bil in 2023.

“Chinese investments in Malaysia span various sectors, particularly manufacturing, infrastructure, energy, and digital technology. Notable projects include collaborations with Proton, the East Coast Rail Link, and digital initiatives by Huawei and Alibaba, which contribute to Malaysia’s industrialisation and digital-transformation goals,” she said.

Ong said looking at bilateral trade data, Malaysia’s exports to and imports from China continue to grow, driven by factors like the strengthening cooperation in trade agreements and increasing foreign direct investment (FDI) from China.

“Trade between Malaysia and China is mainly concentrated in the categories such as machinery and transportation equipment, manufacturing products, chemical products and hybrid manufacturing products,” she said.

Ong noted that with regards to FDI, China’s investment in Malaysia has increased significantly in recent years, especially after the launch of the Belt and Road Initiative in 2013.

Source: The Star

China-M’sia economic ties continue advancing

Sarawak’s gross domestic product (GDP) growth, driven by strategic investments in infrastructure and green technology, is projected to surpass 5.0 per cent in 2025 said Sarawak Premier Tan Sri Abang Johari Tun Openg.

The Premier said for 2025, Sarawak’s budget has been meticulously crafted with an unprecedented allocation of RM15.8 billion to ensure sustainable economic growth, while prioritising key sectors that drive Sarawak’s prosperity.

“To further demonstrate the government’s commitment to equitable growth and uplifting vulnerable communities, infrastructure development remains a top priority under urban-rural economic integration.

“We have earmarked RM10.9 billion for development expenditure. Key projects include roads, bridges, ports, and enhanced water and electricity supply systems,” he said in his speech during the 2025 Sarawak Budget Conference here today.

Meanwhile, Abang Johari said Sarawak’s GDP growth is projected to range between 5.0 and 6.0 percent by the end of the year.

He said key sectors such as services, mining, and agriculture have all demonstrated commendable growth, driven by strategic investments and innovative policies.

“Guided by our PCDS 2030 (Post-Covid-19 Development Strategy 2030), our investments in catalytic projects, such as the 50MW Batang Ai Floating Solar Farm and hydrogen initiatives, has positioned Sarawak as a leader in renewable energy and digital transformation,” he said.

Source: Bernama

Sarawak’s GDP projected to grow above 5pct in 2025 – Abang Johari

Pahang attracted committed foreign direct investments (FDIs) totalling RM22.67 billion between 2022 and June this year, said Pahang Investment, Industries, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Najib today.

He told the Pahang state legislative assembly that the committed FDIs were based on the memorandum of agreement (MoA) signed for 15 projects across the state.

“The committed FDI increased from RM11.01 billion in 2022 to RM11.666 billion last year. However, the potential FDI for this year is still in the negotiation stages.

“China has invested in five projects with committed FDI amounting to RM14.489 billion while three projects amounting to RM22 billion have been granted the manufacturing licence by the Malaysian Investment Development Authority,” he said during the question and answer session at the Pahang state assembly sitting at Wisma Sri Pahang here today.

He was replying to a question from Thomas Su Keong Siong (DAP-Ketari) on the total FDI recorded by Pahang between 2022 and June this year, and the total investments from China.

Meanwhile, Pahang Agriculture, Agro-based Industry, Biotechnology and Education committee chairman Datuk Seri Mohd Soffi Abd Razak said all cage fish farmers especially those involved in the ikan patin (silver catfish) farming industry in Sungai Pahang have been given early notice to prepare for the northeast monsoon season (MTL).

“The breeders were issued early notices in October to prepare for the monsoon season including securing the cages with extra ropes.

“Fish farmers are advised to plan and sell their harvest(silver catfish) at a suitable size before the season. Fish breeders affected by the monsoon season are told to lodge a report with the district fisheries department and follow other procedures including lodging a police report,” he said, assuring the state’s fish supply will be sufficient throughout the northeast monsoon season.

Soffi was replying to a question by Datuk Seri Mohd Johari Hussain (BN-Tioman) on the fish supply status in Pahang and the approach adopted by the state government to help fish farmers prepare for the northeast monsoon season.

Source: NST

Pahang attracted some RM11 billion in foreign direct investments for two consecutive years

Selangor attracted RM29 billion in approved foreign investments from 2023 to June 2024, securing its position as the country’s fifth-highest recipient.  

According to Deputy Investment, Trade and Industry Minister Liew Chin Tong, Penang led the rankings with RM65 billion, followed by Kedah (RM54 billion), Kuala Lumpur (RM43 billion) and Johor (RM38 billion).  

Liew said nationwide, Malaysia recorded a total of RM489.5 billion in approved investments across the manufacturing, services and primary sectors during this period.

“Of this, RM262.9 billion (53.7 per cent) represented foreign investments, while RM226.5 billion (46.3 per cent) came from domestic sources,” he said during the question and answer session in the Dewan Rakyat here today.

Liew was responding to a question from Stampin MP Chong Chieng Jen on the number of approved investments the country has received in the past year.

The deputy minister said the Federal government is committed to working with international partners like the United States to ensure fair treatment for existing companies operating in Malaysia.

This is especially after US President-Elect Donald Trump reportedly said he wishes to impose tariffs on goods produced in China as well as countries participating in BRICS.  

“We are prepared to engage with the US and work closely with both foreign and domestic companies already established in the country. However, our strategy goes beyond merely attracting foreign investments.  

“This includes strengthening our semiconductor diplomacy and maintaining strong relationships not only with the US, but also with the European Union, Brazil, and other middle-power nations,” he said.

Source: Selangor Journal

Selangor records RM29 bln in approved foreign investments from 2023 to June

Cautious optimism is guiding Malaysia’s path to economic resilience, with the country projected to maintain steady growth of 5% in 2024, in line with this year’s performance.

Kenanga Investment Bank Bhd head of economic research Wan Suhaimie Wan Mohd Saidie said the nation is leveraging its regional integration and strategic diversification to navigate ongoing global challenges.

Despite geopolitical tensions and shifting trade dynamics, he emphasised that Malaysia’s positive economic outlook is supported by strong domestic demand and favourable government policies.

“Malaysia’s resilience lies in its ability to balance opportunities and risks in a multipolar world.

“Key drivers for growth include infrastructure projects, small business support, and initiatives to strengthen export sectors such as electrical and electronics.

“However, execution challenges and rising competition within Asean are hurdles to overcome,” Wan Suhaimie said at Malaysian Investment Development Authority-Malaysian Institute of Economic Research (Mida-MIER) Budget Insights forum today.

He noted that the global shift towards multipolarity has intensified the need for strategic partnerships.

“As Malaysia prepares for its 2025 Asean chairmanship, the country is positioning itself as a leader in fostering regional cooperation.

“Asean integration is critical for Malaysia’s trade and investment growth, especially amid the United States-China tensions,” Wan Suhaimie said, stressing that the chairmanship provides an opportunity to champion intra-regional trade and deepen ties with emerging economies like India and Brazil.

On the geopolitical front, he highlighted China’s projected growth slowdown and the implications of US policies under a potential Trump presidency present challenges.

“Malaysia is focused on diversifying trade to mitigate dependency on its two largest partners, embracing opportunities in India, Europe and BRICS nations,” Wan Suhaimie noted.

Domestically, he said, the government is prioritising talent development and economic diversification.

While Malaysia’s path is fraught with uncertainties, Wan Suhaimie, said its neutral stance in global geopolitics, coupled with proactive policies, has instilled cautious optimism among stakeholders.

The forum held at Mida Sentral saw CEOs, investors and policy leaders engaged in open and dynamic discussions about Malaysia’s economic future. The line-up of moderators and panellists, comprising industry thought leaders and economic experts, delivered presentations and discussions that provided a comprehensive view of Malaysia’s economic landscape, offering attendees a unique perspective on the country’s prospects and opportunities for growth.

MIER executive director Anthony Dass highlighted that the Budget Insights forum set a new standard for economic cooperation in Malaysia, marking a crucial milestone in the country’s efforts to achieve more inclusive and sustainable growth.

“By fostering a culture of collaboration and open dialogue between the public and private sectors, the event became a driving force for Malaysia’s economic progress,” he said.

Source: The Sun

Malaysia’s path to economic resilience guided by cautious optimism

The first comprehensive Free Trade Agreement (FTA) between Malaysia and the United Kingdom (UK), through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will boost trade and investment relations between both countries.

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the UK’s entry as a Group of Seven (G7) member and leading advocate of the rules-based trading system brings significant value to the CPTPP.

In his speech at the UK’s CPTPP countdown ceremony, Tengku Zafrul said the UK remains a strategic trading partner to Malaysia, with total trade reaching RM14 billion (US$3 billion) in the first 10 months of 2024.

“These numbers will improve, through increased Malaysian exports of sustainable palm oil, aerospace parts, oil and gas, renewable energy, environmental products, electrical and electronics and lifestyle products, and British exports of machinery, pharmaceuticals, chocolates and confectionaries and high-tech goods.

“Furthermore, UK exporters can also leverage the 16 FTAs Malaysia has ratified, including the Regional Comprehensive Economic Partnership (RCEP) and many others,” he said.

The UK is scheduled to enter the CPTPP on Dec 15, 2024.

Tengku Zafrul said the electrical and electronics sector would benefit from the FTA between Malaysia and the UK through the CPTPP.

He said British investors will appreciate Malaysia’s political stability and its strong rule of law, which supports a conducive landscape for investors seeking to establish their manufacturing or services hub in Asia.

Policies like the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS) and the Green Investment Strategy, are all aimed at attracting investments that would promote sustainable, equitable and inclusive growth.

“Besides, the Malaysian government is serious about the execution of its industrial and other structural reforms,” stressed Tengku Zafrul.

On Malaysia’s ASEAN chairmanship in 2025, Tengku Zafrul said it is important for UK businesses to invest and collaborate with neutral and non-aligned partners as ASEAN’s neutrality and centrality have brought about long-standing regional peace.

Malaysia strongly intends to strengthen its centrality and neutrality so that more investments and trade would flow into the region, he said.

Meanwhile, acting British High Commissioner David Wallace said the agreement would see 94 per cent of tariffs eliminated between the UK and Malaysia which would boost palm oil, cocoa and confectionery, cars and aerospace.

“We’re hoping this will strengthen our modern partnership and grow both of our economies,” he said.

With the UK joining CPTPP, Wallace said the combined gross domestic product (GDP) of CPTPP members has risen from over £9 trillion to £12 trillion (£1= RM5.64).

He said the UK will be the second-largest member behind Japan, increasing the GDP of the bloc by 25 per cent.

“Joining this existing trading group means that over 99 per cent of UK goods exports to CPTPP members are eligible for tariff-free trade and it means lower tariff on CPTPP exports to the UK,” he said.

Source: Bernama

CPTPP: Malaysia-UK FTA will boost trade and investment – Tengku Zafrul

Malaysia has approved RM489.5 billion in investments across the manufacturing, services, and other primary sectors over the past 18 months, said Deputy Minister of Investment, Trade, and Industry Liew Chin Tong. 

Of the total RM262.9 billion invested, 53% consisted of foreign investments and the remainder domestic, covering the period for the whole of 2023 through June 2024.

“In terms of foreign investments, Penang recorded the highest at RM65.9 billion, followed by Kedah at RM54.9 billion, the Federal Territory of Kuala Lumpur at RM43.79 billion, Johor at RM38.97 billion, and Selangor at RM29.89 billion,” he told the Dewan Rakyat on Tuesday during the oral question-and-answer session.

He was responding to Chong Chieng Jen (Pakatan Harapan-Stampin), who inquired about the total approved foreign direct investments (FDIs), and the detailed breakdown by state.

Liew further explained that the term “foreign investment” (FI), as reported by the Ministry of Investment, Trade, and Industry (Miti), through the Malaysian Investment Development Authority (Mida), differs from the FDI term used by the Department of Statistics Malaysia (DOSM).

He said that Mida reports the approved investment value, which reflects proposed projects and their implementation status, while DOSM’s FDI data focuses on actual foreign capital inflows and outflows, with investments involving at least 10% holding in affiliated companies in Malaysia. 
MIDA’s FI data emphasises the economic impact of approved projects, contributing to economic growth, while DOSM’s FDI data provides insights into financial transactions and macroeconomic statistics.

Liew said that the ministry and Mida will continue to intensify efforts to attract quality investments to benefit the country and its people, including through economic activities, business opportunities, and high-value jobs.

Meanwhile, Liew acknowledged that Malaysia is facing uncertainty with the upcoming inauguration of United States President-elect Donald Trump next year, but emphasised that the government is always ready to negotiate with the country’s third-largest trading partner.

“We will also cooperate with companies based in Malaysia, whether foreign or local, to ensure that we receive fair treatment in this new situation,” he said.

Source: The Edge Malaysia

Malaysia approves RM489.5b in investments over the past 18 months — Liew

Malaysia leverages its foreign relations to enhance the economy, investment and the quality of education, said Prime Minister Datuk Seri Anwar Ibrahim.

He shared that during his recent working visits to Peru and Brazil, numerous world leaders expressed interest in meeting him, reflecting recognition of Malaysia’s position on the global stage.

“But what do we leverage these opportunities for? For the economy, investments, and education quality. That’s what matters.

“I have instructed follow-up actions to be coordinated by the Foreign Ministry, the Ministry of Investment, Trade and Industry (MITI), the Prime Minister’s Department (JPM), and relevant agencies,” he said.

He was speaking at the monthly gathering with staff of the Prime Minister’s Department here today. Also present were Deputy Prime Ministers Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar,.

The Prime Minister also noted that Malaysia’s achievements in combating corruption caught the attention of Peru’s President Dina Ercilia Boluarte Zegarra, who expressed interest in learning from the experience of the Malaysian Anti-Corruption Commission (MACC) to address corruption in her country.

He added that the Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said is now chairing the International Anti-Corruption Academy, following MACC’s good performance, a recognition that benefits Malaysia.

Meanwhile, strategic ties with Brazil have opened economic opportunities, as President Luiz Inacio Lula da Silva granted Malaysia privileges, including enabling Petronas to continue exploration activities and Yinson Holdings Berhad to secure investments in the world’s largest electric energy vessel. 

Source: Bernama

Malaysia leverages foreign relations to boost economy, investment — Anwar

Malaysia has urged Chinese companies to refrain from using it as a base to “rebadge” products to avoid US tariffs, its Investment, Trade and Industry Deputy Minister Liew Chin Tong said on Monday, amid increasing export restrictions and concerns of a US-China trade war.

Washington is expected to further curb exports to Chinese semiconductor toolmakers and sales of certain chipmaking equipment, including products manufactured in Malaysia, Singapore and Taiwan, sources have told Reuters.

Malaysia is a major player in the semiconductor industry, accounting for 13% of global testing and packaging, and is seen as well-placed to grab further business in the sector as Chinese chip firms diversify overseas for assembling needs.

“Over the past year or so… I have been advising many businesses from China not to invest in Malaysia if they were merely thinking of rebadging their products via Malaysia to avoid US tariffs,” Liew told a forum on Monday (Dec 2).

He did not specify the types of businesses.

Liew said regardless of whether the United States had a Democratic or Republican administration, the world’s largest economy would impose tariffs, as seen in the solar panel sector.

Washington imposed tariffs on solar exports from Vietnam, Thailand, Malaysia and Cambodia – home to factories owned by Chinese firms – last year and expanded them in October following complaints from manufacturers in the United States.

US President-elect Donald Trump has threatened to slap an additional 10% tariff on all Chinese imports when he takes office on Jan. 20.

Source: The Star/Reuters

Malaysia urges Chinese firms to avoid using it to dodge US tariffs

Malaysia’s robust economic growth amid a global economic downturn provides a vital gateway for Chinese firms seeking to enter the Asean market, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry Minister said Malaysia’s vibrant open market and trade utility, backed by numerous bilateral and multilateral agreements, made the country a strategic base for investors wanting to export goods and services.

“We are also upgrading the China-Asean Trade and Services Agreement, which will further enhance trade opportunities.

“Our open market policy provides an excellent platform for businesses to leverage Malaysia as a hub for regional and global trade,” he told Malaysian and Chinese business leaders at the “Invest in Malaysia, Expand Beyond: A Global Vision for the Future” forum at the 5th World Association Presidents’ Conference (WAPC) here yesterday.

Tengku Zafrul highlighted several factors that gave Malaysia the edge as an investment destination.

“Our robust infrastructure, with strong energy capacity and a net zero target by 2050, supports extensive manufacturing exports, particularly in electrical and electronics (E&E) products,” he said.

The minister said Malaysia’s policy consistency, despite regime changes, fosters a stable environment for long-term business growth, especially in the semiconductor industry.

“Malaysia’s skilled and multilingual workforce also enhances its attractiveness. Our diverse talent pool makes Malaysia ideal for various industries,” he added.

He welcomed global companies to co-invest in five sectors where Malaysia has a competitive edge: E&E, chemical and petrochemical, digital economy, pharmaceuticals and medical devices, and aerospace, to help build a thriving ecosystem, and emphasised a collaborative approach for Asean and Malaysia to thrive.

“We don’t believe in a zero-sum game. A stronger Asean benefits us all, and we are committed to fostering sustainable, inclusive and equitable growth across the region,” he said.

On geopolitics, Tengku Zafrul said the evolving global landscape, particularly shifts in US policies, presents both challenges and opportunities, adding that many companies from China, Europe, the United States and Australia are seeking to “de-risk” their supply chains.

“Malaysia’s position as a neutral country within Asean makes it an attractive destination. We believe in Asean centrality and engage actively with all global partners,” he said.

Looking ahead, he said Malaysia is set to host the Asean-GCC China Summit next May 2025.

“The focus will also be on upgrading the Asean-China FTA next year, acknowledging China as Malaysia’s top trading partner for 15 consecutive years. This is expected to significantly boost trade between Asean, Malaysia and China,” he said.

Source: The Star

Tengku Zafrul: Malaysia perfect gateway to Asean markets