Malaysia has expressed its desire to resume discussions on the Malaysia-EU free trade agreement (FTA), said Prime Minister Datuk Seri Anwar Ibrahim.

In a bilateral meeting with European Council President Charles Michel, Anwar also shared several views on the EU’s Deforestation-Free Regulation (EUDR), which has a direct impact on the nation’s palm oil industry.

“I used this meeting to strengthen bilateral relations between Malaysia and the EU, in addition to exchanging views on regional and international geopolitical developments.

“Among other things, we agreed to work towards enhancing Asean-EU strategic cooperation, particularly during Malaysia’s chairmanship of Asean next year,” he said.

The bilateral meeting took place on the sidelines of the 44th and 45th Asean Summits and Related Summits at the National Convention Centre (NCC) here.

Last month, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced that Malaysia is officially ready to resume FTA negotiations with the EU, aiming for a final agreement.

He said the government would ensure that the negotiations result in a win-win situation for both parties.

Negotiations on the FTA began in October 2010, involving eight rounds of discussions up until September 2012, but were put on hold due to Malaysia’s concerns over several aspects, such as palm oil, procurement policies, subsidies, and the EU’s sustainability clauses.

Meanwhile, Anwar today also received a courtesy call from a delegation of the World Economic Forum (WEF), led by its executive chairman, Professor Klaus Schwab, who is also the prime minister’s long-time friend.

“Our discussions touched on various important issues concerning regional and global economic developments.

“Prof Schwab also extended an invitation for me to attend the WEF in Davos in January next year. InsyaAllah, I will consider it,” he said.

Source: NST

Anwar: Malaysia seeks to resume FTA talks with EU

Malaysia is aiming to strengthen economic cooperation with Vietnam by exploring opportunities for private sector involvement in emerging industries.

Prime Minister Datuk Seri Anwar Ibrahim emphasised that Vietnam’s rapid industrial growth presents significant potential for partnerships that would benefit both economies, particularly as global demand for advanced technologies rises.

“Malaysia is keen to explore opportunities for private sector involvement in emerging value chains, particularly in the electric vehicle (EV), electronics, semiconductor, and advanced materials industries,“ Anwar said in a statement on Thursday.

Anwar had earlier held a bilateral meeting with his Vietnamese counterpart, Prime Minister Pham Minh Chinh, on the sidelines of the 44th and 45th ASEAN Summits in Vientiane, Laos.

He also stated that Malaysia is ready to assist Vietnam in enhancing its fisheries monitoring, control, and enforcement systems by sharing best practices.

Another area of collaboration discussed was the halal industry, with Malaysia, a global leader in halal certification, expressing its readiness to work closely with Vietnam.

“Malaysia is prepared to offer expertise in halal certification and compliance, which could open new opportunities for Vietnam in the global halal market,“ he said.

Hanoi is Malaysia’s 12th-largest trading partner globally and its fourth-largest trading partner in ASEAN, after Singapore, Indonesia and Thailand.

In July, it was reported that the two countries agreed to strive for a bilateral trade turnover target of US$18 billion as soon as possible, by creating favourable conditions for products and services, including halal goods, to enter the consumer markets of both nations.

Source: Bernama

Malaysia eyes stronger economic ties with Vietnam in emerging industries – PM Anwar

Malaysia is on track to achieve the status of a developed and high-income country, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

His remarks followed the World Bank’s revision of Malaysia’s economic growth forecast for this year, reflecting stronger-than-expected household consumption, improved investment and trade performance.

“After nearly two years since the establishment of the Unity Government, we have witnessed substantial progress, particularly in economic growth.

“This success is driven by effective government policies, strengthened investment and trade, and the political stability we have fostered,” he said.

He noted the encouraging performance of the ringgit, which appreciated by 2.5% against the US dollar in July 2024, significantly outperforming the Singapore dollar, Thai baht and Indonesian rupiah, which recorded average increases of only 1%.

Ahmad Zahid made these comments during the Rural and Regional Development Ministry’s monthly assembly here on Wednesday.

He highlighted that approved investments surged to RM160 billion in the first half of this year, marking an 18% increase compared to the same period in 2023.

Additionally, trade value rose by 18.6% in August, the highest growth in 22 months.

The inflation rate decreased to 1.9%, and the unemployment rate stabilised at 3.3%, with 190,000 job opportunities created in the second quarter of this year.

“There are still many achievements [that] we can be proud of, as Malaysians.

“Bursa Malaysia has seen gains, trading values have soared, Bank Negara Malaysia’s reserves have increased, and diesel smuggling has been curbed, among other successes,” he added.

The World Bank Group announced on Tuesday (Oct 8) that it had raised Malaysia’s economic growth forecast to 4.9% for 2024, up from the 4.3% projected last April.

Its chief economist for Malaysia, Dr Apurva Sanghi, attributed the upward revision to both domestic and external factors, noting that the global economy performed better than expected in the past six months.

Source: Bernama

Malaysia poised for high-income status following World Bank revision of nation’s economic growth forecast

MALAYSIA’S economy, reliant as it is on exports, is heavily dependent on Foreign Direct Investments (FDIs).

Little wonder that the government is working very hard on making the country an attractive destination for such investments.

And it shows. In March, the Global Opportunity Index 2024 (GOI) report by the Milken Institute, an American think tank, ranked the country at number 27, even way ahead of China, which is perched at 39.

It is not easy for Malaysia to be among the leading FDI destinations in Asia, especially with economic giants like China and India in the continent.

According to a PwC report, there are more than 5,000 foreign companies from over 50 countries doing business in the country, an evidence that lends support to Milken Institute’s ranking.

But this doesn’t mean Malaysia can rest on its laurels.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz acknowledged as much, though not in those words, to news agency Bernama when commenting on the GOI report.

The recognition by the Milken Institute, he said, would spur the government to deliver better service to investors to make Malaysia a gateway to Asia.

On Monday in Vientiane, where he is attending the 44th and 45th Asean summits, Zafrul outlined three selling points for attracting FDIs into Asean: inclusivity, openness and sustainability.

By this he means trade with all and be friends with all, too. Asean must maintain its neutrality to boost regional investment, he told his peers gathered in the Laotian capital, in the face of geopolitical tensions that are tearing the world apart.

What works for Asean must work for Malaysia.

Geography has blessed us by placing Malaysia in a strategic location, with all 10 Asean member countries within reach by air, sea or road.

Nature has favoured us in more ways than one. Highly skilled workforce is a plus here, too.

But attracting FDI are all of these and more.

The more is about reducing “key pain points along the investors’ journey”, as Zafrul put it to Bernama in March.

This has become more crucial now that more and more countries are competing for the same investment dollars.

Malaysia has aggressive competitors and they are doing very well.

The World Competitiveness Ranking (WCR) by the International Institute for Management Development released in June ranks our neighbours better.

Malaysia ranked 34 out of 67 countries, earning itself a spot behind Thailand and Indonesia for the first time since the ranking began in 1997.

Interestingly, Singapore topped the table, beating Switzerland and Denmark in that order.

Analysts may take issue with the ranking giving much weight to the size of population and gross domestic product, but still the WCR is a good benchmark for identifying areas for improvement.

What is more, it is partly based on what business executives — investors in the final analysis — perceive Malaysia’s competitiveness to be.

This shows that there is still some work to be done in relieving investors’ pain points.

Improving FDI processes to assist investors must be given precedence for Malaysia to remain an attractive investment destination.

Source: Bernama

Boosting Malaysia’s FDI appeal

The World Bank says the Malaysian economy is in a “good place” with sustainable growth and believes that if the current per capita output can be sustained for the next three to four years, the country could achieve high-income status by 2028.

The World Bank’s lead economist for Malaysia, Dr Apurva Sanghi, said the local economy’s strong first half (1H24) growth beat expectations, leading the international multilateral lender to revise its real gross domestic product (GDP) growth projection up by 14% or 0.6 percentage point to 4.9% for the year from 3.7% in 2023.

“The Malaysian economy is in a rather good place. Growth is back. The second quarter (2Q) growth of 5.9% exceeded expectations. Inflation is less than 2%. It’s higher than in recent quarters, but still moderate.

“Investments are on an uptick. Year-on-year investment grew in 1H24, both in terms of approved foreign direct investment (FDI) and domestic direct investment (DDI). There’s been a turnaround in exports in both the electrical and electronics (E&E) and non-E&E sectors due to the global economic upcycle.

“The ringgit has become the best-performing currency in Asia and real median wage growth is strong,” he said at a media briefing yesterday.

The World Bank expects GDP to grow 4.5% in 2025 and 4.3% in 2026.

When looking at growth per capita in real terms, per capita output in Malaysia was outperforming many of its regional peers and was 12% higher than Covid-19 pandemic levels.

“This means that high-income status is within reach. Based on our assumption with the US dollar-ringgit rate of 4.54 and average growth rate of 4.3%, we expect Malaysia to reach high-income status by 2028.

“If the exchange rate stays at the current level of about 4.2, then the high-income goal reached would be a year earlier in 2027,” Apurva said, adding that high income is not the same as high development.

Apurva warned there’s always a risk of reversal in the income fortunes as witnessed in countries without the right policy support, such as Argentina and Russia.

Increasing political stability and a conducive policy environment, in particular, had been boosting confidence and mobilising investments, Apurva said.

However, he said that the bulk of FDI had been in manufacturing and the government may want to consider undertaking reforms to attract FDI into the upstream sectors such as services.

“In Malaysia, the holy grail is to improve productivity growth. Relaxing the restrictiveness in the upstream sectors can bring about even more FDI and quality investments and lead to productivity growth in downstream sectors,” he said.

DDIs’ were also crucial and would be supported by an initiative that will see six government-linked investment companies investing RM120bil over the next five years, which equalled some 6.6% of GDP.

Although quality DDI would be helpful, the World Bank warned that policy makers should remain vigilant against potential market distortions and inefficiency.

Apurva said the government’s plan to set up the Johor-Singapore Special Economic Zone (SEZ) should take into consideration global experiences and have harmonised customs, trade and labour regulations.

“Engaging the private sector early, supporting workforce training and building sustainable practices are really important success factors, which SEZ’s like the Panama SEZ and the Suzhou Industrial Park did well.

“It is also important to establish robust monitoring and evaluation systems right from the beginning,” he said.

The multilateral institution said a comprehensive fiscal strategy that enhanced the efficiency of government spending and increased revenue without adversely impacting the poor would be crucial for restoring fiscal space to sustainably finance the country’s longer-term spending needs.

Fiscal reform efforts must be complemented by effective policy communication to secure broad-based public support for reform.

Malaysia at present was not collecting enough revenue to meet its steady needs amid prospects of an ageing population, slowing productivity growth and climate challenges.

Age-related public expenditures are expected to increase by 0.8% of GDP to almost 1% of GDP yearly between now and 2030, and then an additional 0.5% of GDP every year.

“That’s a lot of money. Talking about climate challenges, for flood resilience alone, building adaptation measures would cost about 0.2% of GDP annually. To basically future-proof Malaysia’s public finances requires a proper assessment of the cost of these structural tensions,” Apurva said.

“Hence, the country needs to future-proof its public finances. Ultimately, it’s about raising revenues and subsidy rationalisation is a very good measure to support,” he added.

Another option is to improve governance and service delivery, Apurva said. “The goods and services tax would be an option to revisit, but will require engagement with the public as taxes are never popular with anyone.”

He advised subsidy rationalisation of RON95 petrol be done gradually with middle class buy-in, as this group will be impacted the most.

Source: The Star

Malaysia on track to hit high-income status

Asean must maintain its neutrality in the face of global geopolitical tensions to stimulate foreign investments in the region, said Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He emphasised that the bloc’s inclusivity and openness should serve as key selling points to attract investments, while also stressing the importance of sustainability.

“We trade and maintain friendships with all European countries, the West, and BRICS nations such as China and Russia.

“At the same time, the global economy is facing challenges, with global gross domestic product growth appearing to be slower than expected,” he said during a meeting with the Malaysian media here yesterday.

Tengku Zafrul and his delegation arrived in Laos on Oct 6 to attend the 44th and 45th ASEAN Summits, as well as related meetings, which run from today until Oct 11.

He also participated in the 24th ASEAN Economic Community (AEC) Council Meeting yesterday.

Despite global economic and geopolitical uncertainties, Tengku Zafrul noted that ASEAN continues to attract significant investments, even as global foreign direct investments decline.

“We are bucking the trend, which is a positive sign. However, another issue is the possibility of tariffs being imposed to protect certain markets.

“This is why ASEAN must continue dialogues with other blocs, particularly through multilateral platforms like the World Trade Organisation,” he added.

Meanwhile, Tengku Zafrul said the AEC’s Strategic Plan for 2026-2030, currently being developed, is expected to be presented in May 2025 when Malaysia assumes the ASEAN Chairmanship.

He highlighted the plan’s significance in ensuring ASEAN’s economy continues to grow by 4.0-5.0 per cent by 2030, positioning it as the world’s fourth-largest economic bloc.

“Right now, we are the fifth-largest economic bloc, with a population of 680 million, nearly half of whom are under 30 years old.

“Therefore, we need to focus on the post-2025 agenda, strengthening ASEAN and showcasing our unique proposition as a bloc,” he said.

During the AEC Council Meeting, Tengku Zafrul also stressed the importance of increasing intra-ASEAN trade, which currently stands at just 23-24 per cent.

He urged ASEAN to prioritise micro, small, and medium enterprises, which make up around 89 -99 per cent of the region’s total companies.

Prime Minister Datuk Seri Anwar Ibrahim is expected to arrive later tonight to attend the summit.

Laos, the current ASEAN Chair, will officially hand over the chairmanship to Malaysia on Oct 11. 

Source: Bernama

Asean must remain neutral to boost regional investment – Tengku Zafrul

The East Coast Economic Region Development Council (ECERDC) has realised investments totalling RM10.2 billion in Pahang year-to-date, far exceeding its initial target of RM5.7 billion.

In a statement today, ECERDC said that 80 per cent of these investments came from the manufacturing sector, followed by oil and gas and the property sector, generating 3,342 job opportunities and fostering 158 entrepreneurial ventures.

Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail expressed the state’s commitment to enhancing its attractiveness to investors, acknowledging that ECERDC’s efforts have been instrumental in this progress.

“We are implementing proactive measures to streamline investment processes, enabling quicker approvals, and driving the growth of industries that benefit the people,” he said.

He also noted that the completion of the 29km interstate water supply project from Kemaman, Terengganu, to Gebeng, Pahang, will ensure a reliable water source for industrial growth, attracting more investments and enhancing business operations in Gebeng’s industrial parks.

“Looking ahead, the East Coast Rail Link, set to begin operations in 2027, will further enhance connectivity, positioning Gebeng as a beacon of economic development on the East Coast and establishing it as a major hub for future industrial growth,” he said.

Meanwhile, ECERDC chief executive officer Datuk Baidzawi Che Mat emphasised ECERDC’s commitment to intensifying its reskilling and upskilling programmes to ensure the local workforce is equipped with the technical skills required by industries.

These initiatives are crucial to enhancing employability, aligning with the needs of investors seeking skilled and adaptable talents, he noted.

“We believe that by empowering the local workforce with the right skills and knowledge, Pahang will become an even more attractive destination for investors, particularly in high-tech and advanced manufacturing sectors.

“The focus on upskilling and reskilling will contribute to the region’s long-term economic resilience and ensure that Pahang remains competitive on a global scale,” he added.

According to ECERDC, several key infrastructure and industrial projects are currently underway.

These include Phase 3 of the Malaysia-China Kuantan Industrial Park, scheduled for completion by July 10, 2025, which is expected to attract RM1.5 billion in investments by 2027.

The ECERDC is also currently overseeing the revitalisation of Pekan, the historic royal town, which includes restoring old buildings and their surroundings.

This project is set for completion by Nov 14, 2024, with tourism to Pekan expected to reach 400,000 visitors by 2025.

Meanwhile, the upgrading of Cherating’s Turtle Conservation Centre, expected to be completed by April 2025, aims to raise awareness about turtle conservation and attract 120,000 visitors to the complex by 2025, it added.

Source: Bernama

ECERDC Exceeds 2024 Investment Target With RM10.2 Bln Realised Investments In Pahang

Malaysia will explore cooperation opportunities on smart city and technology investment with China, said Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa.

She said the cooperation areas would be stated in her six-day official working visit to China starting today.

She said she and a team from the Federal Territories Department will be visiting three main cities in China, namely Hangzhou, Shanghai and Shenzhen.

“The visit to Hangzhou follows a series of collaborations through the Letter of Intent between Kuala Lumpur City Hall (DBKL) and the Hangzhou Municipal Government that was signed in April regarding the KL20 project.

“God willing, I am scheduled to meet with Mayor Yao Gaoyuan, the Mayor of Hangzhou in a lunch which will be hosted by him to discuss more in depth the areas of collaboration,“ she said in a post on her official Facebook page today.

In Shanghai, Zaliha said the visit would focus on the potential of ‘twin city’ cooperation between Putrajaya and Shanghai which had been presented to the Cabinet previously.

The delegation which also involved Putrajaya Corporation president Datuk Fadhlun Mak Ujud will exchange expertise related to the smart city concept since Shanghai is ahead in that aspect.

“Lastly in Shengzhen, our focus is more focused on cooperation with ‘prominent industry players’ in the field of technology such as Huawei,“ she said.

She said recently, Huawei has expressed its intention to invest in Labuan in smart city technology.

“Apart from Huawei, we will also discuss with other technology conglomerates such as Tencent, BYD and Baidu to find a collaboration space with them.

“It is hoped this visit will bear fruits and attract more potential companies to invest either in Kuala Lumpur, Putrajaya or Labuan,“ she said.

Source: Bernama

Malaysia to explore cooperation on smart city, technology investment with China – Zaliha

Malaysia will focus on strengthening economic cooperation in ASEAN and enhancing regional trade and investment at the 44th and 45th ASEAN Summit and Related Summits that will begin tomorrow in Laos.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who arrived in Vientiane late last night, said Malaysia will also prioritise finding solutions to regional challenges.

In a post on X, he said that both he and his team from the ministry’s team had held a pre-council meeting to ensure all key agendas were smoothly aligned.

The summit will be held at the National Convention Centre (NCC) in the Laotian capital from Oct 8-11.

More than 2,000 delegates are expected to attend the summit, including heads of state and government from ASEAN member countries, dialogue partners, and external partners, as well as representatives from regional and international organisations.

The ASEAN Foreign Ministers’ Meeting will officially kick off the summit on Oct 8, followed by the opening ceremony of the 44th and 45th ASEAN Summits and Related Summits on Oct 9.

Prime Minister Datuk Seri Anwar Ibrahim is expected to deliver Malaysia’s statement during the summit.

On Oct 11, Laos will officially hand over the ASEAN Chairmanship to Malaysia.

Source: Bernama

Malaysia to focus on strengthening economic cooperation, attracting investments in ASEAN Summit

Malaysia will likely gain indirect benefit from China’s recent stimulus measures, which includes interest rate cuts and property market support measures, as a stronger economy spurs demand for goods and services and more disposable income for travel, said economists.

IDEAS Malaysia economist and assistant research manager Doris Liew said that the property market support measures in China, such as reduced mortgage rates and downpayment requirements, could free up funds for consumers to spend on other goods and services.

“This could potentially boost demand for Malaysian exports, including food products, and increase tourism revenue,” she told Business Times.

Tourists from China were among top five tourist arrivals for Malaysia for the January to June period, bringing in 1.44 million tourists.

“While China’s economic stimulus could have some positive implications for Malaysia, the immediate impact is likely to be muted.

“A broader and more comprehensive approach is needed in China to address both domestic and external factors affecting trade and investment,” she said.

Liew explained however that the overall weakness of the Chinese economy, coupled with high unemployment rates, particularly among young people, may limit the effectiveness of the stimulus.

She said that consumers may remain cautious about spending due to uncertainty about their future financial stability.

She added that People’s Bank of China (PBoC) efforts to inject liquidity into the stock market through refinancing and collateralisation measures are unlikely to significantly boost business and consumer sentiment in the short term.

While these actions can provide a temporary lift to stock prices, she said they do not address the underlying economic issues that are driving the slowdown.

The PBoC has trimmed the reserve requirement ratio for major banks by 50 basis points from 10 per cent to 9.5 per cent, providing about 1 trillion yuan in long-term liquidity.

Meanwhile, the one-year medium-term lending facility was cut by 30 basis points to 2.0 per cent.

For the property market, the central bank will slash the downpayments for the second home purchases from 25 per cent to 15 per cent and existing mortgage rates for around 50 basis points.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Business Times China’s demand is likely to remain instrumental in driving global growth.

“Given that China is also a major trading partner for Malaysia, the recovery in China’s economy would be positive for Malaysia. This includes sectors such as tourism, manufacturing, palm oil, oil and gas,” he said.

However, he said the impact to Malaysia will take sometime due to the weaknesses in the country’s real estate markets as bulk of China’s citizen wealth resided in the property sector.

Therefore, he said the sharp fall in house prices would have serious impact to China’s wealth, which in turn, have an adverse impact to consumption and investment.

“So what we are seeing now is the China’s authority shift in their stand to become more proactive at promoting growth whereby such act should be positive for confidence building among the businesses, investors and households. “There will be time lag for policy move to be transmitted into the economy but eventually, it should be able to turnaround the growth momentum,” he added.

Total exports value to China fell 2.2 per cent to RM120.98 billion  for the January to August period this year.

Source: NST

Malaysia set to benefit indirectly from China’s stimulus – economists 

The event aims to connect the public, businesses and SMEs with MITI’s various initiatives

THE Investment, Trade and Industry Ministry’s (MITI) annual MITI Day 2024 has brought together local businesses, international brands, and government agencies to highlight Malaysia’s commitment to fostering economic growth through trade, investment and sustainability. 

The event aimed to connect the public, businesses and small and medium enterprises (SMEs) with MITI’s various initiatives, offering them insights into how they can leverage the government’s support to expand their businesses and contribute to the nation’s economic development. 

One of the main highlights of MITI Day 2024 was the focus on electric vehicles (EVs) and green mobility, in line with Malaysia’s National Automotive Policy 2020 (NAP 2020). 

Brands such as Proton, Perodua, BMW, Volkswagen and Chery were part of the Mini Malaysia Autoshow, showcasing their latest EV models. 

At the launch, MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced road tax exemptions and rebates of up to RM2,400 for the purchase or subscription of electric motorcycles, encouraging more Malaysians to adopt eco-friendly transportation options. 

In addition to green initiatives, the event also featured a career carnival offering over 2,600 job opportunities from more than 22 companies, specifically targeting graduates. 

The emphasis on Technical and Vocational Education and Training (TVET) was evident, with key players such as the Department of Manpower, Volkswagen Group Malaysia and the German Malaysian Institute actively participating. 

This provided attendees with valuable opportunities to explore potential career paths and upskilling programmes. 

A key aspect of MITI Day was the launch of the MITI Sustainability Report 2023, the first of its kind at the ministry level in Malaysia. 

The report highlighted MITI’s efforts to integrate sustainability practices across the industrial and trade sectors, demonstrating the ministry’s commitment to environmental, social and governance (ESG) standards. 

“We expect the industry to adopt these practices, but as a ministry, we must lead by example,” said Tengku Zafrul, reflecting on the significance of sustainability in driving long-term business competitiveness. 

Among the entrepreneurs and SMEs at MITI Day is Entrusol, a local brand selling date-based oat drinks. 

The drink, which is ideal for breakfast or as a meal replacement, requires only water to prepare, making it a convenient option for busy lifestyles. 

The product comes in five unique flavours, combining dates with honey, banana, chocolate, coffee and strawberry. 

The sweetness of the drink is derived entirely from date extract, providing a natural and wholesome taste. 

Its reseller, Muhamad Shidiq said MITI Day programme has helped in terms of product exposure. 

“Previously, people might not have known about us, but now they can see that there is a date-based oat drink in the market,” he told The Malaysian Reserve (TMR). 

He said the feedback at the event has been positive, noting increased visibility and valuable customer insights. 

“We have met more people in the business and been able to observe different customer segments. We have also gathered feedback to help improve our next product,” he added. 

However, Muhamad said there have been some challenges, particularly in educating customers about the drink’s ingredients. 

“When offering samples, some people assume it contains milk, so some customers are afraid to try due to lactose intolerance, but our product is not milk-based. Explaining the content and ingredients to consumers has been a key challenge,” he explained.

With its unique blend of flavours and health benefits, he hoped the date-based oat drink would become a favourite among health-conscious consumers in Malaysia. 

On the other hand, Ulyaa Natural founder Nurul Alia Md Noor said the brand’s participation at MITI Day attracted customers’ interest in its unique prebiotics drinks and skincare products, all derived from date cider through a bio-fermentation process. 

The innovative homegrown brand, established in 2022, is quickly carving out its niche in the market. 

Nurul Alia, who previously worked as a researcher, assembled a team of experts in biotechnology, chemistry, pharmacy and health science to develop Ulyaa Natural’s in-house formulations. 

Her motivation for starting the business came from the financial pressures she faced during the Covid-19 pandemic. 

“The idea to sustain my cost of living led me to establish Ulyaa Natural in 2022. 

“Our products are relatively new, so we need to explain them to customers. Participating in MITI Day has been helpful because we can provide product knowledge directly to them,” she told TMR. 

She further highlighted that Ulyaa Natural received an invitation to join MITI Day through the State Development Corp of Selangor and the Malaysian Agricultural Research and Development Institute. 

In addition, she said government agencies have been very supportive. 

“A lot of government agencies have approached us here, and through this event, we have learned that there are many forms of government support available for SMEs,” she said. 

Nurul Alia also shared that Ulyaa Natural has attracted interest from agencies that suggested the brand participate in the World Expo in Osaka next year. 

“Several agencies are encouraging us to join under their wing for the Osaka event. So, I see the potential for our product to expand internationally,” she added. 

Nonetheless, she acknowledged the challenges of raising brand awareness, especially as a new product in the market. 

Although she sells online, Nurul Alia found that face-to-face interactions at exhibitions are far more effective in building customer trust. 

Under Ulyaa Natural, there are two main product lines: Fermented drinks, which include Dates Valley prebiotics drinks and Khall dates cider; and Orga fermented skincare, available for both adults and babies. 

The drinks are available in all Aeon outlets, while the baby skincare range is predominantly sold in pharmacies. 

On the celebrity booth side, celebrity entrepreneur Norlie Tamam Idris took the opportunity to showcase a range of Johor products, including asam pedas paste, laksa Johor and steamed fruit cake, at the event. 

All of the products featured at the event were personally prepared by her, highlighting her dedication to quality and craftsmanship. 

Norlie, who started her business in 2003, has primarily relied on online platforms to sell her products. 

However, this was her first time participating in MITI Day, and she expressed satisfaction with the experience. 

“As a first-timer here, the initiative to promote SMEs has been very successful. The response has been great and the event’s promotion was excellent. It has really helped and we can now look at expanding our business further,” she shared. 

While discussing the challenges faced by small businesses in today’s digital age, Norlie emphasised the importance of maintaining product quality. 

“Nowadays, especially with platforms like TikTok, small businesses can easily get overshadowed. That is why we must focus on maintaining the quality of our products to stay competitive,” she said. 

She noted her dedication to growing her business to a wider audience at MITI Day, further solidifying her brand’s presence in the local market. 

Overall, MITI Day 2024 served as a platform for MITI to demonstrate its continued dedication to strengthening Malaysia’s industrial and trade sectors. 

By promoting investment, fostering international trade and ensuring sustainability, MITI reaffirmed its role in advancing the country’s economic agenda while supporting SMEs and businesses in their journey to global markets.

Source: The Malaysian Reserve

MITI Day 2024 showcases investment, trade and sustainability initiatives

The Johor government is setting its sights on creating over 100,000 high-paying job opportunities under the Johor-Singapore Special Economic Zone (JS-SEZ).

The initiative aims to strengthen economic ties between Malaysia and Singapore while enhancing employment prospects for residents.

State Education and Information Committee chairman Aznan Tamin said the salaries for these positions were anticipated to range from RM3,000 to over RM15,000, depending on the job role.

He emphasised the critical role of Technical and Vocational Education and Training (TVET) in cultivating a skilled workforce capable of meeting the demands of these new positions.

Currently, there are 108 TVET institutions collaborating with the Johor Talent Development Council (JTDC), a dedicated committee designed to connect educational institutions with industry needs.

“JTDC will lead initiatives for Johor’s youth, creating a platform that aligns educational institutions with industry requirements,” said Aznan.

He said JTDC was negotiating with private companies to ensure that the salaries offered in the JS-SEZ are competitive and attractive.

He added that local talent for these high-paying job opportunities must be prioritised, to encourage youth in the state to seize the chance for a prosperous future.

Johor is poised to become a hub for economic and career opportunities stemming from Singapore, projecting rapid growth compared to other states in the coming years.

“In less than two years, Johor has attracted RM113.7 billion in investments, generating over 35,000 new jobs,” Aznan said at the Politeknik Ibrahim Sultan 29th convocation ceremony,

The JS-SEZ memorandum of understanding is set to be signed on Dec 8, with the finalisation process underway.

Source: NST

Johor aims for 100k high-income jobs in JS-SEZ Initiative

Prime Minister Datuk Seri Anwar Ibrahim has highlighted Malaysia’s strategic role as a gateway for Pakistan to access the ASEAN region’s growing economic opportunities.

In an interview with Pakistan Television (PTV) on Friday, he pointed out that ASEAN is one of the most peaceful and economically dynamic sub-regions, with its member nations experiencing rapid growth.

As a regional bloc, ASEAN remains an open trading group that maintains neutrality while actively engaging with countries across the East and West, said Anwar, who also serves as Malaysia’s finance minister.

He further emphasised Malaysia’s ongoing efforts to strengthen economic ties with various nations, including Australia, India, Bangladesh, and now Pakistan.

The Prime Minister’s remarks reflect Malaysia’s commitment to fostering stronger economic collaborations within and beyond the ASEAN region, positioning itself as a vital bridge for global trade.

“So we will open up the avenue and I have assured Prime Minister Shehbaz Shariff that (Malaysia) is open; not only that, you can use Malaysia as a (gateway) to the region,“ said Anwar, who just ended a three-day state visit to Pakistan.

He said there is huge potential for Malaysia-Pakistan bilateral trade. “There are so many areas (to explore between the two countries), (such as) energy from Pakistan and Malaysia now has become a hub for the semiconductor industry; huge investments are coming in and we can share (experiences) in these areas and propel the two economies (forward),“ he said.

Anwar also highlighted that Malaysia’s current political stability and the government’s clarity on policies are among the factors that attract foreign investments into the country.

Among South Asian countries, Pakistan is Malaysia’s third largest trading partner, top export destination and second largest import source in 2023.

From January to August 2024, total trade between Malaysia and Pakistan recorded a 54.8 per cent increase to RM5.68 billion (US$1.21 billion). In terms of investment, a total of 27 manufacturing projects with the participation of Pakistani companies, valued at RM304.14 million (US$81.89 million), were implemented to create 1,382 job opportunities in industries such as paper, printing and publishing, food processing, textile, as well as chemicals and chemical products.

Source: Bernama

PM Anwar calls on Pakistan to use Malaysia as gateway to ASEAN

The East Coast Economic Region Development Council (ECERDC) has realised investments totalling RM3.1 billion in Terengganu, 98 per cent of which is in the manufacturing sector and the balance in the tourism sector.

This sets the state on the fast track to achieving its 2024 investment target of RM4.2 billion, further boosting economic growth and development in the region.

ECERDC has also secured an additional RM1.7 billion in committed investments from the targeted RM5.8 billion, with 59 per cent of these investments coming from the oil and gas industry.

As of August 2024, ECERDC is working to realise another RM12 billion in potential investments, with RM5 billion facilitated by the Malaysian Investment Development Authority (MIDA).

The investment portfolio is diversified as follows: 77 per cent in manufacturing, 13 per cent in tourism, and 10 per cent in oil and gas, ensuring continued growth for Terengganu.

Meanwhile, Terengganu Menteri Besar Ahmad Samsuri Mokhtar said it is essential for the federal and state governments and relevant agencies to work in tandem to attract new investments.

“Initiatives like the Economic Accelerator Project (EAP) play a strategic role in connecting ministries, agencies, and the private sector, creating a strong economic ecosystem.

“With rail infrastructure as a key growth driver for the East Coast Economic Region (ECER), the EAP is set to enhance local economies by increasing passenger and freight traffic along the East Coast Rail Link (ECRL) route,” he said after chairing the Terengganu Implementation and Coordination Committee (ICC) Meeting.

During the meeting, members of ICC Terengganu were briefed on various projects, including the upgrading of the Sultan Mahmud Airport to Kuala Terengganu City Centre road, which will enhance connectivity and increase Terengganu’s attractiveness to investors.

The expansion of the Kerteh Biopolymer Park SME Complex to Phase 1B was also highlighted as a key initiative to drive the growth of small and medium enterprises and create more employment opportunities.

Source: Bernama

ECERDC secures RM3.1 bln in realised investments in Terengganu, on fast track to achieve RM4.2 bln in 2024

Investment, Trade and Industry Ministry says it has secured RM2.65 billion of potential exports and RM100 million of potential investment from meetings with Pakistani companies in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s inaugural visit there.

The potential exports and investment will be implemented within the next three years, involving sectors such as palm oil, timber, fertiliser, petrochemical oleochemical, food manufacturing and pharmaceuticals. 

Its minister Tengku Datuk Seri Zafrul Aziz was part of the Prime Minister’s delegation for the visit from Oct 2-4.

Tengku Zafrul had a bilateral meeting with his counterpart, Pakistan commerce minister Jam Kamal Khan to discuss, among others, the proposed review of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) and potential cooperation in areas such as food, agriculture, halal, IT and supply chain. 

“Malaysia is committed to foster stronger economic partnership with Pakistan in mutually beneficial areas. 

“With Malaysia’s strategic location in the heart of Southeast Asia, and various commonalities between both countries, this was our opportunity to strongly position Malaysia as Pakistan’s ideal gateway to other markets in Asean,” he said in a statement today.

Both ministers believe that the signing of the memorandum of understanding between the Malaysia External Trade Development Corporation (Matrade) and Trade Development Authority Pakistan (TDAP) as well as the opening of Matrade office in Karachi would help enhance and deepen both countries’ bilateral economic linkages.

Referencing the robust bilateral economic relations, Jam Kamal Khan proposed a Pakistani business delegation to Malaysia to forge stronger ties between the private sectors of both countries.

The ministry also hosted Malaysia-Pakistan High Level Business Dialogue that was attended by Anwar and Pakistan Prime Minister Shehbaz Shariff together with other ministers.

The business dialogue was attended by 42 prominent Pakistani companies and 24 Malaysian companies in various sectors such as pharmaceutical, food manufacturing, chemicals, automotive and textiles. 

Also present were representatives from seven business associations including the Islamabad Chamber of Commerce and Malaysia Pakistan Business Council. 

This meeting provided an opportunity for the business community in both countries to share feedback and updates on the policies and strategies in fostering a closer collaboration in new and emerging sectors.

Among South Asia countries, Pakistan was Malaysia’s third largest trading partner and export destination, and the second largest import source in 2023. 

From January to August 2024, Malaysia-Pakistan total trade registered a 54.8 per cent growth, reaching RM5.68 billion (US$1.21 billion).

On the investment front, a total of 27 manufacturing projects with Pakistani participation worth RM304.14 million (US$81.89 million) have been implemented, creating 1,382 jobs in industries ranging from paper, printing, publishing, food manufacturing, textile, chemical, chemical products.

Source: NST

Malaysia secures RM2.65bil potential exports from Pakistan

Malaysia’s political stability and the confidence-inspiring policies of the Madani government have successfully attracted major global technology companies to choose the country as their investment destination, said Digital Minister Gobind Singh Deo.

He noted that numerous discussions are underway with companies not only from within the region but also across the globe, adding that the details will be disclosed once the deals have been finalised.

“I’m confident that moving forward, we will see more investment announcements, not only in areas like data centres or cloud services but in various other sectors in Malaysia as well,” he told the media after launching the Malaysia Digital Content Festival (MYDCF) Biz Day 2024 here on Thursday.

He highlighted Oracle’s recent decision to invest over US$6.5 billion to set up its first public cloud region in Malaysia as a positive sign of foreign investors’ confidence in the country.

“I believe that this is a very positive development, and we will continue to work hard to attract more investments from around the world, positioning Malaysia as a prime destination for international industries looking to invest in the region,” he added.

Oracle’s announcement follows similar investments by other tech giants like Microsoft, Amazon Web Services and Google, reinforcing Malaysia’s position as a key investment destination.

In a post on X on Wednesday, Prime Minister Datuk Seri Anwar Ibrahim said the investments by these companies amounted to an estimated US$16.9 billion (RM70.3 billion) to date.

The Digital Ministry is confident that it will secure even more digital investments in the second half of this year (2H2024), after securing digital investments worth RM66.22 billion in 1H2024, surpassing the RM46.2 billion recorded for all of 2023.

This growth is attributed to the pro-business policies of the Madani government.

These investments created 25,498 job opportunities in 1H2024, exceeding the 22,258 jobs created in the same period in 2023.

Source: Bernama

Political stability, govt policies attracting global investors to Malaysia

Malaysia’s entry into the BRICS economic bloc will bring greater investment and trade potential to Johor through the Johor-Singapore Special Economic Zone (JS-SEZ), said Johor Menteri Besar Datuk Onn Hafiz Ghazi.

He said that participation in the inter-governmental organisation, which comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE), will also open doors to new markets and increase foreign investment in the country.

“One significant global development that will impact the implementation of the JS-SEZ is Malaysia’s intention to join the BRICS economic bloc, which represents rapidly growing economic powers globally.

“Therefore, on behalf of the state government, we warmly welcome and support the federal government’s intention to join BRICS, which will bring greater investment and trade potential to the state through the JS-SEZ,” Onn Hafiz said during the Johor State Legislative Assembly meeting here on Thursday.

The menteri besar said this in response to a written question from Nazri Abdul Rahman (PH-Simpang Jeram) regarding the preparation of the JS-SEZ in welcoming Malaysia’s interest in joining the economic bloc.

Established in 2009, BRICS initially included Brazil, Russia, India, and China, followed by South Africa’s participation in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the UAE joined as new members.

Meanwhile, Onn Hafiz, who is also Machap assemblyman, said that Prime Minister Datuk Seri Anwar Ibrahim is expected to announce an incentive package for investors in the JS-SEZ during the tabling of Budget 2025 on Oct 18.

He said that the JS-SEZ agreement document is currently being finalised among various ministries, federal and state agencies, and Singapore.

“The memorandum of understanding for the JS-SEZ is expected to be signed during the leaders’ retreat between the governments of Malaysia and Singapore, scheduled for Dec 8,” he said.

Onn Hafiz also said that they will not overlook the northern areas of Johor, while southern Johor benefits from economic and infrastructure development due to the JS-SEZ.

“The rapid growth in the JS-SEZ area will contribute to increased state tax and non-tax revenue. These can be used to improve infrastructure in areas outside of the JS-SEZ,” he said.

Source: Bernama

Malaysia’s BRICS entry will boost Johor’s investment, trade potential through JS-SEZ — Onn Hafiz

Johor recorded a total of RM12.93 billion in committed investments until the second quarter of this year (2Q 2024), said Lee Ting Han.

The state Investment, Trade, Consumer Affairs and Human Resources Committee chairman said that this amount includes RM7.97 billion in foreign direct investment (FDI) and RM4.96 billion in domestic direct investment (DDI).

“Out of the RM12.93 billion, the manufacturing sector contributed RM6.02 billion. FDI in the manufacturing sector is RM4.57 billion, while DDI in the manufacturing sector is RM1.45 billion.

“The services sector recorded a committed investment of RM6.90 billion, with FDI in the services sector amounted to RM3.40 billion, and DDI at RM3.50 billion,” Lee said during the state assembly meeting held at Bangunan Sultan Ismail here in Kota Iskandar today.

The Paloh assemblyman said this in reply to Anuar Abd Manap (BN-Pemanis) regarding the investment figures for the first quarter of this year.

Lee added that a total of 396 projects have been approved, creating 8,948 job opportunities in the state.

He also stated that to further increase investment in the state and make Johor a premier investment destination in the region, several initiatives have been implemented.

“This includes establishing the Invest Malaysia Facilitation Centre Johor (IMFC-J), aimed at reducing bureaucratic red tape and expediting the approval process, as well as the Johor Fast Lane (JFL) initiative.

“Additionally, the implementation of the Johor-Singapore Special Economic Zone (JS-SEZ) and the Forest City Special Financial Zone (FCSFZ) initiatives will position Johor as a key trading and investment hub in the region,” Lee said.

He expressed optimism that these initiatives will drive economic growth in Johor, particularly in the professional services sector. 

Source: Bernama

Johor records RM12.93b in committed investments up to 2Q 2024

The Ministry of Investment, Trade and Industry (MITI) will ensure industry access to sustainable markets, while improving resource efficiency, strengthening governance and supporting the country’s net-zero target.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz, said the MITI Sustainability Report 2023, launched today, aims to develop a trade and industry sector that incorporates sustainable practices.

“The purpose of this report is to demonstrate that we not only expect the industry to adopt sustainability measures, but as a government ministry, MITI must also lead by example with its own report.

“This highlights our focus on sustainability, including environmental, social and governance (ESG) issues,” he told the media after launching MITI Day 2024 today.

Tengku Zafrul noted that the report was produced and published entirely in-house, with third-party audit verification to ensure its credibility.

“This effort is expected to encourage more industry players to undertake their own sustainability reporting, as this initiative not only benefits the environment and future generations but also enhances business competitiveness.

“This is the first sustainability report of its kind at the ministry level in the country and follows the launch of MITI’s National ESG Framework last year,” he added.

Meanwhile, Tengku Zafrul said the MITI Open Day highlighted key aspects of the ministry’s industrial policy implementation, including the National Automotive Policy 2020, the National Semiconductor Strategy (NSS), and the New Industrial Master Plan 2030 (NIMP 2030).

He described the initiative as a people-centric concept, focusing on five core elements: investment, international trade, industrial development, job opportunities and community engagement.

“For those seeking employment, our career carnival offers over 2,600 job opportunities from more than 22 companies for graduates in attendance.

“We are also prioritising the TVET training sector. Among the training providers present today are the Department of Human Resources, Volkswagen Group Malaysia, German Malaysian Institute, AERO Malaysia Engineering Center, and Advanced Technology Training Center (ADTEC) Shah Alam,” he added.

Source: Bernama

MITI commits to sustainable markets and net-zero pathway

There will be 2,600 job opportunities from 80 local and international companies for young people at MITI Day 2024 organised by the Investment, Trade and Industry Ministry (MITI).

The annual event, to be held at Menara MITI, Kuala Lumpur on Oct 1 is expected to attract more than 10,000 visitors who will benefit from the government’s initiatives in boosting the country’s economic growth.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said MITI Day 2024 is an important platform for government agencies, industry players, youths and the micro, small and medium-sized enterprises to interact, especially in the manufacturing and services sector.

“The important message to convey is the good career prospects in the manufacturing and service industry sectors,” he said.

“Through this approach, I am confident that we can together develop a more sustainable and inclusive economy,“ he said.

According to a MITI statement, the highlights of MITI Day 2024 include career exploration; the National Technical and Vocational Education and Training (TVET) exhibition; ministries and agencies exhibitions; business, investment and stock briefings; factory price sales and local entrepreneurs’ mini Malaysia Autoshow; and the Royal Malaysian Police discount counter.

Source: Bernama

Local, international companies to offer 2,600 jobs at MITI Day 2024

State can help promote green cities, blue economy and sustainable development, says exco member

JOHOR’S role in the Indonesiamalaysia-thailand Growth Triangle (IMT-GT) is a key opportunity to promote green cities, the blue economy and sustainable development.

state investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said these efforts aligned with the Johor Green Deal that was launched during Asia Pacific Climate Week 2023 in Johor Baru.

The Green Deal focuses on promoting green energy, low-carbon cities and sustainable industries.

“For example, the IMT-GT Blueprint (2022-2026) emphasises the integration of green and blue economy strategies to support sustainable urban development, with backing from the Asian Development Bank (ADB).

“These initiatives aim to cut carbon emissions, create jobs in green and marine sectors and attract investment in renewable energy and marine industries,” he said when contacted.

Lee added that by working with industry experts and international organisations like the ADB and Asean secretariat, the state could play a more active role in this agenda as the IMT-GT framework encouraged participation from state and regional governments.

He highlighted that the recent 21st Chief Ministers and Governors Forum (CMGF) held in Desaru, Kota Tinggi, provided a platform to improve regional cooperation within the IMT-GT.

“This year’s discussions focused on issues such as environmental sustainability, resilient tourism and developing the blue economy, aimed at strengthening the economic and environmental aspects of the IMT-GT region.

“We also reviewed reports from the 7th IMT-GT Green Council Meeting, progress on the IMT-GT sustainable Urban Development Framework, regional cooperation projects and updates from the ADB and Asean secretariat.”

Lee said the 7th Green Council Meeting reaffirmed the members’ commitment to accelerating sustainable development in seven key areas – transport, energy, solid waste management, biodiversity, circular economy, climate change literacy and raising awareness about sustainability.

He also pointed out that aligning local green projects with national and regional policies, especially on cross-border issues like pollution and waste management, would reinforce environmental resilience.

“Each member country showcased its contributions to the green agenda.

“For instance, Indonesia highlighted the development of the Tenayan Industrial Park, focusing on palm oil industry infrastructure, while Thailand shared progress in eco-friendly public transport, solar roof projects and climate change education.

“As for Thailand, they have upgraded Phuket International Airport and established new transport links across the Golok River.

“Thailand also suggested more integrated cooperation by establishing CMGF secretariat offices in member countries and a mechanism to strengthen the CMGF’S role within the IMT-GT Framework,” he said.

Lee added that Malaysia had introduced several major projects, including Johor-singapore special Economic Zone, special Financial Zone in Forest City, Melaka Waterfront Economic Zone (M-WEZ), Malaysia Vision Valley and Kerian Integrated Industrial Park.

“These are expected to boost cross-border cooperation and industrial growth.

“These projects and initiatives will improve connectivity, tourism and economic resilience across the IMT-GT region, making our region stronger and more competitive globally,” he said.

Source: The Star

Growth triangle presents opportunities for Johor

Economic incentives particularly in Johor’s Iskandar region and Forest City are aimed at bolstering Malaysia’s attractiveness to international investors, Prime Minister Datuk Seri Anwar Ibrahim said today (Sept 26).

In his keynote address at the Investment Malaysia- Iskandar 2024 conference, Anwar said these measures included a competitive tax regime, talent development initiatives, and a stronger focus on bilateral relations, notably with Singapore.

He said it was also important for continued economic collaboration within Asean, to ensure the country’s economic growth remained resilient.

“We have outpaced expectations in GDP growth for the first two quarters, and the third quarter is looking promising,” he said.

The key initiatives in Johor’s Forest City offered a concessionary corporate tax rate of zero to five per cent and a special individual income tax rate of 15 per cent for knowledge workers.

Forest City is the first in Malaysia to offer a zero-tax rate for family offices.

The initiative, managed by the Securities Commission, is aimed at attracting regional and Malaysian families to handle their wealth from within the country.

“These incentives are designed to make Johor a primary engine of growth for Malaysia,” Anwar said.

He also emphasised the need for talent development to keep pace with global technological changes, noting that Johor’s Universiti Teknologi Malaysia (UTM) had set up an Artificial Intelligence (AI) faculty in just four months to meet these emerging demands.

Anwar reiterated the government’s commitment to fight corruption and ensure better governance, which he linked to the ease of doing business.

He said Malaysia’s strategic advantage is part of a peaceful and economically vibrant Asean region, with continued bilateral cooperation with Singapore, which has spurred significant real estate and talent development in Johor.

As Malaysia prepares to chair Asean next year, Anwar reaffirmed the nation’s goal of becoming a leader in clean energy and sustainability, citing the progress in large-scale solar projects and net energy metering initiatives.

“These projects, in collaboration with Tenaga Nasional and Petronas, are key to Malaysia’s target of achieving net-zero emissions by 2050.

“With these initiatives, we aim to position Malaysia as a hub for international capital and technological innovation, driving the nation’s growth while fostering stronger regional ties,” he said.

Meanwhile, Johor Menteri Besar Datuk Onn Hafiz Ghazi said Johor’s strategic advantages and strong growth momentum made the state an unbeatable investment destination.

“We are witnessing growing interest from investors, both locally and internationally.

“Johor’s GDP growth outpaced the national average, expanding by 4.1 per cent year-on-year in 2023, driven primarily by our thriving services and manufacturing sectors,” Onn Hafiz said.

He added that Johor recorded RM5.2 billion in exports in July, with strong performances in petrochemicals, electronics, and non-metallic materials.

The menteri besar said Johor’s robust economic growth and infrastructure development are due to its political stability.

“Johor has a two-thirds majority in the state assembly, which allowed for the smooth execution of the Maju Johor 2030 plan.

“This initiative focused on six key areas, including governance, economic development, and youth empowerment,” he said.

Onn Hafiz also said Johor’s superior connectivity positioned it as a critical regional hub.

“This included Johor’s links to global supply chains through Johor Port and the Port of Tanjung Pelepas, its close integration with Singapore, and the infrastructure upgrades like the Johor Baru-Singapore Rapid Transit System Link.

Onn Hafiz expressed confidence in Johor’s future, citing the state’s ongoing infrastructure projects, skilled workforce, and strong support from the federal government as key enablers for sustained growth.

Source: NST

PM: Johor’s economic incentives poised to attract global investors

Malaysia is now more selective in choosing foreign direct investments, with a focus on projects that would greatly benefit the country, especially in the field of artificial intelligence (AI) and data technology, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the opening of a data centre that used to depend on cheap energy and water to move and cool the operating systems, is now no longer sufficient.

“Now, if you want to (establish) a data centre, you must have AI,” he said, referring to projects like Nvidia in Johor, “which is an example of how technology needs to be improved to remain relevant,“ he said at the Ilmuan Malaysia Madani Forum here on Wednesday organised by Tenaga Nasional Bhd.

Anwar said universities in this country should also be empowered to produce skilled workforce in the field of AI and engineering in order to meet the needs of high-tech investors.

“So, if the investment is big, we are now more selective in choosing investments that can benefit the country more,“ he explained.

Meanwhile, touching on the national budget, he outlined education and health as the main priorities, with the highest allocation given to the education sector, followed by health.

Source: Bernama

Malaysia more selective in choosing foreign investment for country’s greater benefit — PM Anwar

Sabah has become a highly sought-after destination for both leisure and business from China, said Chief Minister Datuk Seri Hajiji Noor.

“Sabah has ample opportunities for investors in green technology and high-tech agriculture, as well as mixed developments.

“We are also keen for Chinese investors to explore opportunities in the state’s blue economy.

“Similarly, the energy sector presents significant opportunities, with oil and gas remaining important revenue streams for Sabah.

‘We also welcome investors to explore solar and storage technologies, hydro, geothermal, and carbon market opportunities,’ he said during the 75th anniversary reception of the founding of the People’s Republic of China at a hotel yesterday (Sept 24).

Also present were Head of State, Tun Juhar Mahiruddin, and his wife, Toh Puan Norlidah RM Jasni, Hajiji’s wife, Datin Seri Julia Salag, and the Consul General of China in Kota Kinabalu, Huang Shifang.

Malaysia and China celebrated the 50th anniversary of the establishment of diplomatic relations on May 31.

“The King of Malaysia’s recent four-day visit to China was a significant step in strengthening diplomatic ties between the two nations,” he said.

The mutual visa exemption between Malaysia and China since last December has contributed to a surge in Chinese tourists to Sabah, with 262,070 of the 706,383 international arrivals recorded from January to July this year, making them the largest foreign source of tourists, he said.

China’s visitor arrivals were recorded at 26,054 of the 424,052 international arrivals for the same period last year.

Hajiji said that since tourism is a critical driver of Sabah’s economy, the state government would continue to enhance its business environment and upgrade tourism facilities to attract more investors and tourists to the state.

Source: NST

Sabah attracts Chinese investors, tourists

Strategic reforms and global trends set to attract further fund inflows

The outlook for Malaysia’s investment climate in the second half of 2024 (2H24) remains positive, with experts expecting continued growth across key sectors.

Ongoing economic reforms, favourable global trends and the country’s strategic position in supply chains are set to attract further investments.

However, external risks, including global geopolitical tensions and economic uncertainties, could influence investor sentiment.

Bank Muamalat (M) Bhd chief economist Mohd Afzanizam Abdul Rashid is optimistic about Malaysia’s investment prospects, highlighting the country’s appeal as firms seek alternatives to China, driven by trade tensions among developed economies.

“Malaysia seems to be a natural choice in light of the pro-business government, along with a supportive regulatory framework, decent infrastructure and the availability of a talent pool that would facilitate the investment process almost seamlessly.”

He noted that clarity in policy and fiscal reforms has already encouraged portfolio inflows.

Mohd Afzanizam sees growth potential in renewable energy (RE), cloud technology and tourism-related projects.

Similarly, OCBC Bank senior Asean economist Lavanya Venkateswaran sees continued interest in Malaysia, provided the government remains committed to its reform agenda.

“As long as the momentum is sustained, we expect investors to remain interested,” she noted, highlighting that Malaysia’s diversified export base, particularly in electrical and electronics (E&E) and machinery, offers a solid platform for future investments.

CIMB Bank Bhd head of treasury and markets research Michelle Chia echoed this sentiment, emphasising that Malaysia’s strategic location and policies position it to seize opportunities from the China+1 strategy, as well as green energy investments.

“These complement the existing investments into electronics, machinery and natural resources,” she noted.

However, economist Geoffrey Williams cautioned that much of the focus in 2H24 will be on consolidating and finalising deals.

“The main announcements have already been made,” he explained.

He highlighted external risks such as

ringgit volatility, US interest rates and the geopolitical impact of the upcoming US elections.

“These are outside of Malaysia’s control,” he stated, urging the government to focus on maintaining domestic economic stability and a sustainable budget to mitigate the effects of external uncertainties.

On the upside, Malaysian Institute of Economic Research executive director Anthony Dass sees a bright future for Malaysia, particularly in sectors like E&E, data centres, RE and real estate.

He also pointed out that the political stability, underpinned by initiatives like the National Energy Transition Roadmap and the Johor-singapore Special Economic Zone (JS-SEZ), will bring positive spillovers to the economy in the years ahead.

In 1H24, Malaysia’s total approved investments reached RM160bil, marking an 18% year-on-year growth.

Domestic investments accounted for Rm85.4bil or 53.4% of the total, with a 19.1% increase, while foreign investments contributed Rm74.6bil (46.6%), growing by 16.7%.

The services sector attracted Rm97.2bil (60.7%), growing by 14.4%, and the manufacturing sector secured Rm60.1bil (37.6%), with a significant 34.1% increase.

Maybank Investment Banking Group macro research regional co-head Chua Hak Bin also emphasised the significance of the JS-SEZ in driving investments, particularly in manufacturing, logistics and RE.

He predicts property demand and values in Johor to rise, further fuelling real estate investments.

Despite the promising outlook, experts warn that global uncertainties could disrupt the investment wave.

“An escalation in the United States-china trade war, particularly if Trump wins the election, could disrupt investments and trade,” Chua added.

Bank Muamalat’s Mohd Afzanizam highlighted concerns over the global economic climate, particularly the weakness in China’s economy.

“Global investors are worried about the state of China’s economy, especially as its real estate market struggles. As the world’s second-largest economy, China’s challenges could seriously impact global demand,” he explained.

The economist noted that the upcoming US presidential election could also influence global trade and geopolitics.

Lavanya echoed these concerns, emphasising that geopolitical factors, including the outcome of the United States elections, could significantly impact Malaysia’s investment and export growth. Domestically, she warned that if there is lack of progress on the government’s reform agenda or disappointing announcements in Budget 2025, this could keep investors cautious.

Regarding the ringgit, while most experts expect it to remain firm or even appreciate, economist Williams offered a different perspective as he believes the appreciation of the ringgit “might have been overdone.”

“The exchange rate should be stable if possible. A steep appreciation makes exports more expensive and can cause a loss of markets.”

He illustrated this by noting that for a US buyer when the ringgit was at 4.80 against the US dollar, a RM10 product cost US$2.08. With the ringgit now at 4.20, that same product costs US$2.38, making it more expensive for the buyers.

Conversely, exporters pricing their products in US dollars are feeling the pinch as a product that once brought in RM48 at a weaker rate now only fetches RM42 due to the strengthened local note.

Mohd Afzanizam predicts the dollar-ringgit rate could reach RM4 by yearend, driven by increased foreign investor confidence boosting demand for the ringgit.

Lavanya expects dollar-ringgit levels to remain around 4.17 until the end of 2024, with further appreciation likely in 2025.

Similarly, Anthony believes the ringgit has room to strengthen, estimating its fair value at 3.80 to 3.90 against the greenback.

Source: The Star

Investment outlook remains bright in 2H24