Malaysia and India are looking to enhance their economic relationship through an upgraded Free Trade Agreement (FTA) following Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to New Delhi.

During their bilateral meeting, Anwar and his Indian counterpart Narendra Modi discussed close cooperation in several areas such as the digital economy, semiconductor manufacturing, artificial intelligence, infrastructure, food security and tourism.

“We will elevate whatever cooperation that we have towards a more comprehensive cooperation to cover all these pillars,” Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told Bernama.

He said the Malaysia-India Comprehensive Economic Cooperation Agreement (Miceca), which was signed in 2011 and covers mainly trade and investment, will be upgraded.

“Both prime ministers have given us the timeframe of three months to revert on what are the areas that we want to focus on, and establish the parameters for the upgrade,” said Zafrul, who travelled to India with Anwar.

The range of topics discussed between Malaysia and India during Anwar’s visit also creates significant potential business opportunities in emerging technologies, renewable energy, chemicals and petrochemicals and manpower development.

Trade between Malaysia and India topped US$16.5 billion (RM72.2 billion) last year.

India is Malaysia’s 11th largest destination for exports and 12th largest source of imports.

In changing trade trends, Malaysia’s exports of electrical and electronics products to India have grown significantly while the share of primary commodities has declined from two-thirds two decades ago to one-third of all exports now.

Similarly, Indian exports, which had a big share of agricultural items earlier, now have a large amount of petroleum products and engineering goods.

The semiconductor sector holds huge potential for cooperation with India, Anwar emphasised in his speech at the Indian Council of World Affairs think-tank on August 20.

Anwar said Malaysia is the world’s sixth largest semiconductor exporter and “our country’s expertise lies particularly in the assembly, testing, and packaging segments of the semiconductor value chain” whereas India’s capabilities in software are “almost unparalleled”.

Source: Bernama

Malaysia, India to upgrade bilateral FTA — Zafrul

Malaysia has emerged as a rising star in Southeast Asia, with investors increasingly drawn to the country thanks to the MADANI government’s business-friendly policies, said Housing and Local Government Minister, Nga Kor Ming.

He said that improving economic growth, political stability, and strengthening currency are also factors that attracted investors to Malaysia.

“The ringgit has outperformed its regional counterparts to become the best-performing Asian currency thus far this year, after appreciating over five per cent year-to-date,” he said in a statement today.

Meanwhile, the stock market has demonstrated strong momentum, with the FBM KLCI climbing more than 12 per cent year-to-date.

Malaysia’s economic growth has also exceeded expectations, expanding by 4.2 per cent in the first quarter of 2024 (1Q 2024) and 5.9 per cent in 2Q 2024, fuelled by robust private spending, foreign investment influx and strong export performance.

“Malaysia is now back on the right track,” added Nga.

Source: Bernama

Malaysia emerges as a bright spot in ASEAN

President of the Sabah China Chamber of Commerce (SCCC), Datuk Frankie Liew, pointed out that it is now the best time for China businessmen to invest in Sabah due to favorable timing, geographic advantages and human factors.

He said this is specially under the current protectionist and trade-war attitudes of Western countries, global free trade is increasingly narrowing. Malaysia, Sabah and China need to establish closer relationships to enhance their economic and food security through diplomatic and trade networks and supply chains.

Liew stated this on Friday at a trade and economic seminar in Yanbian Korean Autonomous Prefecture, Jilin Province, with Yanbian Prefecture’s enterprises, SCCC and the Sabah Economic Advisory Council.

He expressed great honor for being able to once again receive the endorsement of Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe to lead the SCCC and represent the business community of Sabah in this official delegation.

“We believe that this visit will not only facilitate direct connections with strong and sincere political and business enterprises but also precisely align with potential projects and industries. We hope to learn from the local leaders and with their guidance and advice, ensure a fruitful and beneficial trip. China, with its vast territory and rich resources, complete industrial and supply chains, ample capital, high-level research, and excellent talent, is currently one of the global economic engines, a leader in Southeast Asia, and a partner we look forward to learning from and collaborating with,” he pointed out.

He noted that since China’s rise, it has been the largest trading partner for Southeast Asia, including Malaysia and Sabah. This year marks the 50th anniversary of diplomatic relations between Malaysia and China, a milestone for further deepening and broadening overall trade cooperation.

He emphasized that the current Malaysian unity government led by Prime Minister Datuk Seri Anwar and the Sabah People’s Alliance (GRS) government led by Chief Minister Datuk Seri Hajiji Noor uphold a neutral “pro-China” stance, resolutely defending friendly and partnership relations with China despite pressures and temptations from Western powers.

“Our advantage lies in our multilingual and multicultural background, relatively mature educational levels, and good interactions and diplomatic relations with ASEAN and Western countries. Sabah is also a gateway to the nearly two billion population market of China and ASEAN. Sabah has a predominantly small and medium-sized economic system, with major sectors in services, tourism, oil palm cultivation, and mining of oil and natural gas. Recently, under the new government and with the strong promotion by Hajiji and Phoong, Sabah is rapidly industrializing, attracting substantial investment and technology from China and South Korea, making us optimistic about future development. Additionally, Sabah has significant development potential in agriculture, fisheries, food industry, new energy, and infrastructure. We are also an important base for bird’s nest production, with abundant herbal resources, a summer-like climate, ample rainfall, and no major natural disasters.

“We believe there are many points of intersection and complementary advantages. Currently, electric vehicles are not yet widespread in Sabah. Leveraging ASEAN and regional free trade advantages, we hope to establish bases or centers for new energy vehicles in Sabah to serve as a hub for the ASEAN region.”

Liew also mentioned that although SCCC’s core service is to promote investment and trade between Sabah and China, it also strengthens its advantages by maintaining close ties with ASEAN countries, including Indonesia, the Philippines and Brunei, to form partnerships and share resources and information. With these conditions, we can not only facilitate investment from Chinese enterprises and investors into Sabah but also assist in entering the ASEAN market, helping sincere and capable enterprises maximize their benefits.

SCCC will actively participate in domestic and international conferences and exhibitions to showcase Sabah’s advantages and potential, connect with international business networks, and achieve mutual benefits and prosperity.

Liew announced that the Sabah government will hold the first Sabah-China Expo and Sabah-China Business Summit from November 22 to 24 at the Sabah International Convention Centre (SICC) in Kota Kinabalu.

SCCCis honored to be a co-organizer and will invite representatives from various provinces and cities in China to participate and discuss future business opportunities in Sabah, known as the “Land Below the Wind.”

Liew emphasized that they will continue to fully cooperate with the policies and directions of the Malaysian and Sabah governments, promote investment and recruitment, and assist Chinese enterprises in establishing technology, production capacity, and resources in Sabah to become a crucial link in the global industrial and supply chains, bringing greater economic benefits and a better life to both regions.

“Many people may have heard of Malaysia and know that China and Malaysia have been close partners for 50 years, but many are not very familiar with our small Southeast Asian country and mistakenly think that Kuala Lumpur is the capital of Malaysia and that all matters can be handled through Kuala Lumpur.

“In fact, Malaysia is a federal country consisting of Peninsular Malaysia, Sabah and Sarawak, geographically divided into West Malaysia (the Malay Peninsula) and East Malaysia (Sabah and Sarawak), separated by the South China Sea. It takes nearly three hours to fly from Kota Kinabalu, the capital of Sabah, to Kuala Lumpur in West Malaysia.

“Due to this geographical separation, valuable information between China and Sabah is often delayed or not fully communicated, causing missed opportunities and suboptimal investment cooperation. Under the Malaysia Agreement 1963 (MA63), the Sabah government has a high degree of autonomy, with many important powers, including land, natural resources and immigration rights, directly managed and approved by the Sabah government. A few years ago, the Malaysian and Sabah new governments were working to restore the equality of the ‘Malaya, Sabah and Sarawak’ partners.

“In 2019, with the encouragement and support of the Sabah government, various industries in Sabah, especially those with ideas and initiatives to promote trade and investment between Sabah and China, were called upon to establish a specialized business organization to represent and safeguard bilateral interests between Sabah and China, and proactively promote and implement trade and investment activities, information and resource interaction, assistance and communication,” he said.

The objectives of the Sabah China Chamber of Commerce are as follows:
Promote economic, trade and other industrial and commercial exchanges and cooperation between Sabah and the People’s Republic of China;
Provide members with information related to bilateral economic, trade and other industrial and commercial activities between Sabah and the People’s Republic of China;
Offer a platform for business information, financial and trade information exchange, including organizing various exhibitions, forums, training activities and investment guidance services, to establish and develop business cooperation;
Jointly safeguard the legitimate rights and interests of members and provide assistance and suggestions for problem-solving when needed;
Promote a healthy business culture and foster a prosperous and harmonious society.

The core members of the Chamber come from various sectors in Sabah including real estate development, plantations, agriculture, tourism and hospitality services, construction sector, building materials, creative design, media, education, e-commerce, and cultural industries.

SCCC has two main wings: the Young Entrepreneurs Committee and the Women Entrepreneurs Committee, bringing together local young talents and female elites, nurturing future successors. The Chamber also has branches in Hubei and liaison offices in Guangzhou, Shengzhou, and other places to assist in promoting cooperation and communication and delivering timely and accurate information.

SCCC has signed a partnership memorandum with Jin Lihua, chairman of Hunchun Huairui Ginseng Bioengineering Co Ltd and has established a liaison office in Jilin Province, with chairman Chen Pengyu appointed as the representative.

Meanwhile, Park Cheol, a researcher from the Yanbian Korean Autonomous Prefecture Foreign Affairs Office, mentioned that the visit by SCCC will enhance understanding and relationships, and contribute to industry exchanges and business opportunities in Yanbian Korean Autonomous Prefecture.

SCCC deputy president Brett Chua invited Yanbian enterprises to participate in the Sabah China Economic Forum and Sabah China Expo to showcase their products.

Meanwhile, Datuk Thomas Logijin, the permanent secretary of the Industrial Development and Entrepreneurship Ministry, visited Hunchun City to observe the production process of Huairui Ginseng Bioengineering Co Ltd.

He welcomed Huairui Ginseng Bioengineering to invest and set up factories in Sabah, and promised to provide all necessary assistance, including coordination with various departments.

Jin Lihua, chairman of the Jilin Functional Foods Association and Huairui Ginseng Bioengineering Co Ltd, stated that Changbai Mountain in Jilin Province and Heilongjiang, which is connected to Russia, is the source of ginseng. He plans to invest in Sabah and establish contact. He expressed that the visit by the Sabah delegation will deepen understanding of ginseng and encouraged cooperation.

Source: Borneo Post

Now best time for China to invest in Sabah

Penang’s holistic electrical and electronics (E&E) ecosystem is seen as a huge advantage by multinational corporations (MNCs) when making investment decisions to expand their existing operations in the state.

Chief Minister Chow Kon Yeow said his recent investment and trade mission to the United States on August 4-14 mostly focused on visiting companies that already have operations in Penang as well as some companies that have the potential to invest.

“A lot of these companies have plans to expand their business by constructing new facilities on vacant land at their current sites.

“From our visits there, I gathered that they are satisfied with what Penang has to offer because our ecosystem can support their growth plans,” he told a press conference after officiating the Malaysia MADANI Penang Indian E&E SME Summit 2024 here, today.

He added that Penang, also known as the Silicon Valley of the East, has established a strong foundation for the E&E industry to thrive given its strong talent pool, supportive government, infrastructure and enabling policies.

Nevertheless, Chow said the state would not rest on its laurels and will continue to introduce new initiatives in the coming months to further invigorate our E&E industry ecosystem.

Towards this end, he said the state government is introducing the ‘Penang Silicon Design @ 5km+’ initiative which comprises four major projects, namely the IC Design and Digital Park, Penang Chip
Design Academy, Silicon Research & Incubation Space, and the Penang STEM Talent Blueprint.

“With such efforts in place, we aim to position Penang as a leading hub for semiconductor innovation and design, reinforcing our strategic role in Malaysia’s ambitious goals.

“By advancing our capabilities and fostering a robust ecosystem, we seek to attract global investments, create high-value jobs, and drive technological advancements that will benefit our state and nation,” he said.

Commenting on the one-day event today, Chow said the summit provided a unique opportunity to shape the future of local small and medium enterprises (SMEs), particularly Indian-owned businesses, and served as a catalyst for meaningful change, thereby helping to steer Penang towards greater economic
diversity and technological innovation.

Source: Bernama

Penang’s Holistic E&E Ecosystem Main Factor For Reinvestment By MNCs -Chow

Investment, Trade and Industry Ministry says it has secured RM8 billion of potential exports and RM4.5 billion of potential investment during Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India from Aug 19-21.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz was part of the Prime Ministerial delegation.

According to the ministry, the potential exports are in sectors such as palm oil and palm oil-based products, chemicals and chemical products, oil and gas and aircraft spare parts.

A commitment of RM4.5 billion in investment was secured from Indian companies in sectors such as information technology, logistics, chemical and pharmaceutical sectors.

“These potential investments are expected to create more than 3,000 high-value job opportunities in the next two to there years,” it said today.

The ministry also hosted a roundtable meeting between Anwar and 31 prominent captains of industry from among major Indian industry players in various sectors such as information technology, pharmaceutical, transportation, semiconductor and fintech services.

This high-level gathering in New Delhi served as a catalyst for fostering strategic partnerships, promoting investment and trade opportunities, while deepening bilateral cooperation between the two nations.

In his opening remarks, Anwar reiterated Malaysia’s commitment to strengthening ties with India across various fronts, particularly in trade and investment.

He said Malaysia’s strategic position as a gateway to the Asean market where robust infrastructure, and vibrant business ecosystem are key factors that make it an attractive destination for investors seeking new opportunities for growth and diversification.

Anwar also held one-on-one meetings with Tata Consultancy Services (TCS), HCL Technologies Ltd (HCLTech) and Emami Agrotech Ltd.

Both TCS and HCLTech discussed their plans to expand their workforce and create training programs for Malaysians, including fresh graduates, women, and public officers, focusing on IT and artificial intelligence (AI) skills.

Emami Agrotech, one of the largest manufacturers of biodiesel in Eastern India and a key exporter of biodiesel to Europe and other Southeast Asian countries, had expressed their intention to import more palm oil from Malaysia.

Meanwhile, Tengku Zafrul said the positive outcome on the workforce expansion plans by TCS and HCL Technologies in Malaysia is also a welcome move.

The ministry, through the Malaysian Investment Development Authority (MIDA), will do its best to facilitate their expansion, he added.

“We will also continue to intensify efforts to attract quality digital investments – such as data and cloud-based technologies – to create more opportunities for our small and medium enterprises (SMEs) and higher-paying jobs for our people,” he noted.  

Tengku Zafrul also witnessed the exchange of seven memorandam of understandings (MoUs) between Malaysian companies and their Indian partners, to be realised within a span of one to five years.

The MoUs cover various areas of interest, including green technology, innovation, waste management, start-ups, railway infrastructure as well as promotion of trade and investment.

India was Malaysia’s largest trading partner, export destination and import source among the South Asia countries in 2023.

Total trade between the countries was recorded at RM75.39 billion (US$16.53 billion) in 2023.

Source: NST

Malaysia secures RM8bil potential exports, RM4.5bil potential investments from PM’s India visit

Malaysia will lead the coordination between Asean countries and India to improve aspects of the free trade agreement (FTA) between the two parties, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said a delegation from Malaysia will visit New Delhi in November to attend an FTA-related consultation session on behalf of Asean with India, given that Malaysia will assume the position of Asean chair in 2025.

“We target next year when as chair of Asean we will not only be able to finalise the revision of the FTA between India and Asean which is already in place, but also to improve it.

“Malaysia is given this responsibility to coordinate,” he told Bernama when met at the sideline of the 2024 Umno General Assembly here on Thursday.

He said this when commenting on the success of Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India recently, where Indian Prime Minister Narendra Modi hoped that the review of the free trade agreement between Asean and India would be completed within the specified time period.

India and Asean have held several rounds of negotiations to make changes to the Asean-India Trade in Goods Agreement (AITIGA) to make the agreement more trade-friendly and beneficial for businesses across the region.

The negotiations began in May 2023.

Source: Bernama

Malaysia to lead coordination of Asean-India FTA review in November — Zafrul

Malaysia and India today solidified their bilateral relations with the exchange of eight memorandums of understanding (MOUs).

The MOUs cover a broad range of sectors, including worker recruitment, traditional medicine, digital technologies, culture, tourism, and public administration.

Prime Minister Datuk Seri Anwar Ibrahim, who departed on a three-day official visit to India yesterday, and his India counterpart Narendra Modi witnessed the MOU exchange at Hyderabad House here.

Hyderabad House is used by the India government for official functions, particularly high-level meetings and banquets involving visiting foreign dignitaries.

The first MOU, concerning the recruitment, employment, and repatriation of workers, was inked and exchanged between Human Resources Minister Steven Sim Chee Keong and India External Affairs Minister S. Jaishankar.

A second MOU, on ayurveda and other traditional systems of medicine, was exchanged between Foreign Affairs Minister Datuk Seri Mohamad Hasan and his counterpart Jaishankar.

An MOU on cooperation in the field of digital technologies was exchanged between Digital Minister Gobind Singh Deo and Jaishankar.

An MOU on cooperation in the fields of culture, arts, and heritage, was exchanged between Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing and Jaishankar. Tiong and Jaishankar also exchanged another MOU on tourism cooperation.

An MOU on public administration and governance reforms was exchanged between the Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz and India External Affairs Ministry secretary (east) Jaideep Mazumdar.

An MOU on cooperation in the fields of youth and sports was exchanged between Mohamad and Jaishankar.

And finally, an MOU between the International Financial Services Centres Authority and the Labuan Financial Services Authority (LFSA) was exchanged between LFSA chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzillah and India High Commissioner to Malaysia B.N. Reddy.

At the ceremony, India-Malaysia CEO Forum co-chair Tan Sri Kuna Sittampalam, presented the Report of the 2nd India-Malaysia CEO Forum to Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

These deals are expected to strengthen strategic partnership between the two nations, promote cooperation across various fields, and create new opportunities for mutual growth and development.

Source: Bernama

Malaysia, India sign eight MOUs

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia aims to diversify its economic diplomacy efforts by participating in the intergovernmental organisation BRICS and enhance its collaboration with member countries through shared initiatives and strategic partnerships.

Malaysia has applied to join BRICS, a grouping of large emerging economies that was established in 2009 as a cooperation platform for emerging economies comprising Brazil, Russia, India, and China, with South Africa joining the group in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE) joined the organisation as new members.

“India’s distinct and influential role within BRICS is of particular importance, as we recognise that our strong bilateral ties will add significant value to the dynamics of the grouping,” he said in his lecture titled: “Towards a Rising Global South: Leveraging Malaysia-India Ties” at Sapru House, Indian Council of World Affairs (ICWA) here, today.

Anwar, who is also the finance minister, said Putrajaya is confident that its entry into this group will not only strengthen our economic linkages with India but also open new avenues for cooperation across a broader spectrum of industries and policy areas.

Calling such grouping as minilateralism, he said contrary to some views that such arrangements are contentious, Malaysia believes that minilateral mechanisms ultimately work towards delivering public goods to benefit our people and raise living standards.

“In that vein, Malaysia will not shy away from exercising agency and participating in these arrangements as we see fit. Our recent application to join BRICS is a fine example.”

Cumulatively, the gross domestic product (GDP) of BRICS member countries amounted to US$26.6 trillion, which is 26.2 per cent of the world’s GDP, almost the same as the economic strength of the G7 countries.

BRICS member countries have a large population of 3.21 billion, which continues to increase with the inclusion of Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE), which have a total of 333 million people, forming a mega-market that includes as many as 3.54 billion people, or almost 45 per cent of the world’s population.

Anwar arrived in the Indian capital of New Delhi on Monday for a three-day official visit to strengthen the 67-year-old India-Malaysia ties and establish a multi-sectoral cooperation agenda for the future.

Accompanying Anwar on the visit are Foreign Minister Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Zafrul Tengku Abdul Aziz; Tourism, Arts and Culture Minister Tiong King Sing; Digital Minister Gobind Singh Deo; and Human Resources Minister Steven Sim Chee Keong.

This is the prime minister’s first visit to India after assuming office in November 2022.

Total trade between Malaysia and India stands at US$16.5 billion, bolstered by an impressive compounded annual growth rate of 8.5 per cent in the last two decades. (US$1 = RM4.38)

Anwar added that the trade growth trajectory is not just a statistic but a testament to the deepening economic linkages facilitated by frameworks such as the Malaysia-India Comprehensive Economic Cooperation Agreement and the ASEAN-India Free Trade Agreement.

Source: Bernama

Malaysia aims to diversify economic diplomacy through BRICS – PM Anwar

Iskandar Malaysia has seen 70 per cent or RM291.4 billion of its total cumulative investment of RM413.1 billion realised to-date since the economic region’s inception in 2006.

Speaking to Bernama, Iskandar Regional Development Authority (IRDA) chief executive Datuk Dr Badrul Hisham Kassim said this remarkable progress demonstrates that Iskandar Malaysia is on track to achieve its  RM636 billion cumulative investment target by 2030.

“From 2006 to December 2023, the economic region has recorded a cumulative investment of RM413.1 billion, surpassing our RM383 billion target set for the end of 2025,” he told Bernama during the recent Southern Zone MADANI Rakyat 2024 programme at Dataran UTM Skudai, Johor Bahru.

IRDA had set a new 2030 cumulative investment target of RM636 billion for Iskandar Malaysia, after it had successfully surpassed the initial target set during the inception of the economic region.

Badrul Hisham said Iskandar Malaysia will continue to focus on high-value and innovation-driven sectors such as electrical and electronics, aerospace, medical devices, modern farming, electric vehicles, renewable energy and information communication technology, including artificial intelligence data centres.

He said this is also supported by adjacent industries like healthcare and life sciences, financial and business services and the digital creative industry.

“This is in line with the nation’s aspirations, as outlined in the New Industrial Master Plan 2030 and National Energy Transition Roadmap,” he said.

He highlighted that multinational companies such as Insulet, which produces medical devices, and data centres such as Airtrunk, Princeton Digital Group, Wiwynn and Supermicro have all expanded their operations in Iskandar Malaysia recently.

On IRDA’s future direction and the coordination of the Iskandar Malaysia Comprehensive Development Plan III (2022-2030) under the MADANI Economy agenda, he said the government has decided to streamline the economic corridor authorities to focus on efforts to facilitate the realisation of investments.

“Since the Ministry of Economy is now in the process of reviewing and streamlining these functions, we foresee that some changes will be made in our plans and targets soon after,” he said.

The move would enable IRDA to focus on what matters most for Iskandar Malaysia and the people, which is realising investments that will translate into job creation for the people, business for the local businesses and entrepreneurs, and better infrastructure and quality of life, said Badrul Hisham.

Apart from that, he said IRDA will continue to complement the Malaysian Investment Development Authority (MIDA) and Invest Johor by helping to facilitate and ensure that incoming investments can be realised quickly and smoothly.

Commenting on the Johor-Singapore Special Economic Zone (JS-SEZ), Badrul said the Invest Malaysia Facilitation Centre Johor (IMFC-J) which is managed by IRDA, has started its interim operation at its office in anticipation of and to support the creation of the special economic zone.

“The IMFC-J is pivotal in this process, acting as a central facilitator for investments within the JS-SEZ.

“Its role includes expediting approval processes, providing consultation and advisory services, and minimising bureaucratic obstacles by coordinating multiple government ministries and agencies under one roof,” he said.

Source: Bernama

Iskandar Malaysia sees realised investments of RM291.4bil to date

The Northern Corridor Implementation Authority (NCIA), in collaboration with the Malaysian Investment Development Board (MIDA), has successfully secured RM31.38 billion in investments for Penang in the first half of 2024 (1H2024).

NCIA chief executive, Mohamad Haris Kader Sultan said that this impressive achievement reflected investors’ strong confidence in the long-term potential of the Northern Corridor Economic Region (NCER), particularly Penang.

He said the investments encompass key sectors outlined in the NCER Strategic Development Plan, including high-value manufacturing, advanced services, and modern agriculture, creating more than 6,600 jobs in 1H2024.

In a statement today, he said the positive performance will catalyse NCER’s efforts to attract investments and enhance the business ecosystem in 2H2024, leveraging NCER’s regional advantages, especially in the electrical and electronics (E&E) and semiconductor sectors.

Meanwhile, Mohamad Haris also said the NCER Technology Innovation Centre (NTIC) building in Bayan Lepas here has been completed and will commence operations soon.

NTIC is a programme under NCER’s Technology Valley initiative that focuses on activities related to research, product development and specialised design.

The programme also acts as a platform for large local companies, multinational companies, start-ups, individual technocrats and young entrepreneurs to carry out technological and high-value-added activities at NCER and subsequently generate their own intellectual property.

The NTIC is expected to boost innovation, research and development activities as well as enhance the value chain for small and medium enterprises (SMEs), which will further strengthen Penang’s position as a technology and innovation hub in the region.

Mohamad Haris highlighted that 16 Penang SMEs have already benefited from matching grants under the NTIC programme, aimed at improving their value chains through the Centre of Excellence and Technology and Innovation initiatives in 1H2024.

“Besides that,  a total of 144 local workers have been approved to undergo technical skills training under the Advanced Technology Meister Programme (ATMP) initiative,” he added.

Source: Bernama

NCER records RM31.4bil investments in Penang in 1H2024

The immense potential of Sabah’s palm oil downstream industry has recently attracted three Chinese enterprises for an on-site visit in Sabah.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said these Chinese companies are looking into the potential avenues for investment and collaboration in setting up operations in Sabah.

In a statement today, Chan noted that over the past two days, representatives from Grand Oil and Food, Welle Environmental Group and Freepoints Commodities have been in Sabah to gain a deeper understanding of the current state and future prospects of the palm oil downstream sector.

“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry. My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” said Chan.

The Chinese delegation first visited Sandakan, where they toured the Sawit POIC Sandakan Industrial Park, guided by Sawit Kinabalu Group, to inspect the facilities and port infrastructure. Sandakan member of parliament Vivian Wong was present too.

“I extend my gratitude to Datuk Frankie Poon, chairman of the Sabah Development Berhad (SDB), and State Assemblyman for Tanjung Papat, for his proactive cooperation and coordination through the Sabah government-linked companies during this visit. This has strengthened foreign investors’ confidence in Sabah’s economy and fostered close collaborative relationships,” Chan added.

Following their visit to Sandakan, the Chinese delegation traveled to Kota Kinabalu to participate in a roundtable discussion led by the Ministry of Plantation and Commodities, involving both federal and state government agencies and the Chinese delegation.

“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.

Additionally, the Chinese delegation expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of Palm Kernel Cake (PKC), and the production of biomass energy and Sustainable Aviation Fuel (SAF) from Palm Oil Mill Effluent (POME) and pre-treat used cooking oil (UCO).

Chan highlighted that as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry. By focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

The roundtable meeting was attended by various state-level agencies, including the Sabah’s Ministry of Industrial Development and Entrepreneurship (MIDE), the Malaysian Palm Oil Board (MPOB) Sabah Region, the Malaysian Investment Development Authority (MIDA) Sabah, the Sabah Economic Development and Investment Authority (SEDIA), POIC Lahad Datu, Sawit POIC Sandakan, the Sabah Environmental Protection Department, and Invest Sabah.

Source: Borneo Post

Chinese firms explore Sabah investment opportunities

Malaysia’s rapid economic growth in the second quarter, at 5.9 per cent and above expectations, reflected the confidence of foreign investors in the country’s potential, said Economy Minister Rafizi Ramli.

He said this also shows that the government’s policies and economic growth narratives have been well received. Therefore, Rafizi said the government needs to continue the growth momentum by intensifying its efforts to attract investors to maintain the international confidence and positive views of Malaysia.

“So what the government is focusing on now is to ensure that not only the narrative and policy are attractive for investment and growth but also to translate that into (investment) immediately and to provide everything necessary. That needs to be done quickly and in an orderly manner.

“(Then) the (growth) momentum can continue and if this happens, we will continue to be seen as a good investment destination in the region and the world,“ he told reporters after the ‘Ask Minister Anything with the Minister of Economy’ session in conjunction with the MADANI Rakyat South Zone 2024 programme at Dataran UTM here today.

He said this when commenting on the announcement yesterday of Malaysia’s economic growth rate in the second quarter which exceeded the initial forecast of 5.8 per cent.

As one of the strategies to maintain the positive economic growth momentum, he said Prime Minister Datuk Seri Anwar Ibrahim will launch the Business Facilitation Framework, which also touches on the efficiency of government services in facilitating business. Rafizi said his ministry took a year and is now in the final stage to complete the framework.

Anwar is expected to launch the framework on Oct 4.

Meanwhile, at the “Ask Minister Anything” session, Rafizi said Malaysia would be recognised as a global middle economic power if its wish to join the intergovernmental organisation BRICS (Brazil, Russia, India, China and South Africa) was accepted.

BRICS consists of a group of countries that include prominent middle economic powers.

“I believe that if Malaysia is admitted to BRICS, it will not affect our international relations with other countries. This is because Malaysia is known as a country that practices neutral principles when dealing with global issues. When accepted, God willing, it is a recognition and their confidence in Malaysia as a middle economic power in the world. This will increase our economic capacity.

“Don’t be confused, we want to join not because of politics but because we want to establish good relations with all countries, including middle economic power countries like Russia, Brazil, India, and others,“ he added.

Source: Bernama

Robust second quarter growth reflects investor confidence in Malaysia’s economic potential – Rafizi

Penang Chief Minister Chow Kon Yeow and delegates from InvestPenang have concluded a 10-day investment and trade mission to the US, strengthening ties with American investors, and offering insights into the future of artificial intelligence (AI) and new technologies.

According to a statement issued by the chief minister’s office, the mission, which was held from Aug 4 to 14, involved a total of 22 official strategic meetings and site visits aimed at encouraging the expansion of the US companies’ Penang operations, and to attract new investments into the state.

“During the meetings, key discussions revolved around the transformative impact of AI across critical sectors, with previews of its potential applications and innovations. 

“The dialogues highlighted Penang’s strategic importance in the global supply chain, particularly in light of current geopolitical tensions,” the office said.

In addition, the discussions also underscored the exceptional capabilities of Penang’s talent pool in sustaining and enhancing the local ecosystem. 

Notably, the office said there was a strong emphasis on the urgent need for renewable energy adoption and Penang’s strategic direction towards environmental, social, and governance principles.

According to the statement, the first four days were spent in San Jose, where the delegation visited companies such as MKS Instruments, Brooks Instrument, Lattice Semiconductor, AMD, Synopsys, Efinix, Agilent, Coherent, SambaNova and Western Digital. 

The delegation then travelled to Seattle, San Diego and Los Angeles for the remaining six days, where they met with Centific, Monolithic Power Systems, Dexcom, Cohu, UST, TTM Technologies, Mattel and potential investors.

“This mission to the US not only offered better insights into the future of AI and new technologies engaged by existing and potential investors, but also served as a significant step towards reinforcing our existing partnerships and laying the groundwork for future growth. 

“The collaborative efforts and feedback gathered during this trip will undoubtedly strengthen economic ties, and ensure continued prosperity for both Penang and our international partners,” the office added. 

Source: Bernama

Stronger investor ties, expansion opportunities following delegation’s 10-day trip to US, says Penang CM’s office

The Ministry of Investment, Trade and Industry (MITI) will implement preventive measures to address potential supply chain disruptions, including the development of a platform to enhance traceability, ensuring the resilience of Malaysia’s industrial supply chain.

MITI also plans to establish initiatives that provide centralised access to guidelines, funding opportunities, and support programmes, while fostering knowledge sharing among industry players.

These measures were decided at the Sixth National Investment Council (MPN) Meeting, which focused on “Building Economic Security Through a Resilient Supply Chain,“ the ministry said in a statement.

Its minister, Tengku Datuk Seri Zafrul Abdul Aziz emphasised the need for responsive strategies to manage and recover from supply chain disruptions, citing findings from its engagement sessions with industry stakeholders and bilateral and multilateral cooperation.

He said the global supply chain is the lifeline of the world economy, with interconnected systems that complement one another.

“Supply chain security ensures the smooth flow of goods, services and inputs across borders and fosters economic growth and universal prosperity.

“The COVID-19 pandemic served as a wake-up call, exposing vulnerabilities and underscoring the importance of a resilient and efficient industrial supply chain,“ he said.

As an open economy, Malaysia is particularly sensitive to supply chain disruptions caused by global geopolitical events and natural disasters, MITI noted.

To maintain the competitiveness of the Malaysian economy, MITI is committed to ensuring that the national industrial supply chain remains resilient and secure against future disruptions, the minister added.

The ministry stressed the importance of a multi-pronged approach to bolster global supply chain resilience.

“Collaboration between governments, businesses, and international organisations is crucial for facilitating information sharing, coordinating responses, and developing uniform standards.

“This includes leveraging technology, diversifying sourcing options, fostering regional cooperation, and enhancing flexibility as key strategies to strengthen supply chains against disruptions,“ MITI said.

MITI also highlighted the need for digitisation to reinforce supply chain resilience and security, drive innovation, and provide a competitive edge in the increasingly complex global market.

“By embracing digital technology, Malaysia can improve its ability to prevent and respond to disruptions, implement robust security measures, and streamline operations for greater efficiency and agility through digitisation, including systems, applications, and virtual centres of excellence,“ the ministry explained.

Source: Bernama

MITI unveils initiatives for stronger industrial supply chain

Malaysia needs to continue playing its role as a ‘neutral’ country with a strong ecosystem in the technology sector to ensure the country remains an investment destination.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s economy is open and has established cooperative relations with all countries.

“Southeast Asia is neutral, has good demographics, a growing, stable and peaceful economy.

“Malaysia and Singapore are two countries that have been involved in the semiconductor sector for a long time — Malaysia is over 50 years old and we have a good ecosystem, almost complete and mature.

“So, that’s one of the reasons we see investment also increasing in this sector,” he said on the Agenda Awani programme titled ‘Tech War’, Tesla and Investment Magnet broadcast by Astro Awani on Tuesday.

He said the increase in investment inflows was also supported by recent data which showed Malaysia recorded approved investments of RM83.7 billion in various fields in the first quarter, representing an increase of 13 per cent from RM74.1 billion in the same period last year.

“We expect the Gross Domestic Product (GDP) to grow 5.8 per cent in the second quarter of 2024 with the manufacturing sector growing by 4.7 per cent, boosted by the electrical and electronics (E&E) sector, especially semiconductors,” he said.

Tengku Zafrul said that in terms of trade, Malaysia has 16 Free Trade Agreements (FTAs) including multilateral and bilateral, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

“We have various FTAs ​​with all groups, for example the BRICS (Brazil, Russia, India, China and South Africa) is not an economic block but a grouping that discusses global south issues.

“We are also together with the United States in the Indo-Pacific Economic Framework (IPEF). Recently we are looking to start discussions with the European Union on the Malaysia-EU Free Trade Agreement (MEUFTA).

“In my opinion, almost all of our blocs are together because our country is a country with an open economy and is also small compared to its main trading partners, the United States and China,” he said.

Source: Bernama

Malaysia needs to continue as ‘Neutral’ country to become primary investment destination – Tengku Zafrul

The standoff between the United States and China presents opportunities for Malaysia’s electrical and electronics (E&E) and renewable energy sectors, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said globally, investors in industries such as electric vehicles and solar power are focused on securing sensitive trade goods.

“At the heart of today’s tech Cold War lies a battle over the semiconductor supply chain and Malaysia’s 50-year-old sector places us in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain for us to export more higher-value products,” he said in his keynote address at PRAXIS 2024 here on Tuesday (Aug 13).

He said Malaysia has already welcomed global investors such as Infineon, Intel and Texas Instruments who have also increased their investments in Malaysia, citing Malaysia’s agile technology supply chains.

Aside from efforts on skilled talent development, Tengku Zafrul said Malaysia must also apply data-driven solutions.

He added that a proposal to establish an Integrated Digital Platform consisting of a Supply Chain Intelligent Management System, Business Continuity App and Virtual Centre of Excellence, was also presented to the National Investment Council on Tuesday.

“Together, these will map, gather and analyse real-time data from the supply chain of critical industries in Malaysia and show clearly how one sector’s supply chain supports another sector,” he said.

In terms of record investments, Tengku Zafrul also said Malaysia achieved a record high of RM330bil last year and RM83.7bil in the first quarter of this year.

He added that between 2021 and Q1 this year, the realisation rate of approved investments stood at about 80%.

He attributed this to diligent follow-ups by agency-led initiatives such as the Malaysian Investment Development Authority (Mida) Invest Malaysia Facilitation Centre, among others.

Trade-wise, he said Malaysia’s total exports last year surpassed RM1 trillion for the third year running, despite a cyclical downturn in the semiconductor industry and commodities.

“I am equally proud to share that for the first half of 2024, our total trade reached RM1.4 trillion, the highest ever for the period.

“The country has also recorded over two decades of uninterrupted quarterly trade surpluses, with E&E products and other manufactured goods massively contributing to exports,” he said.

Separately, Institute of Strategic and International Studies (Isis) Malaysia chairman Datuk Prof Dr Mohd Faiz Abdullah said the policy solutions put forward at the research sessions will be combined with cutting-edge research and analyses from the country’s researchers and knowledge partners.

“These policy papers will be made publicly available for all, and we will deliver them to the desks of all stakeholders to advance better policy solutions for the country,” he said in his welcoming remarks at PRAXIS 2024.

The Isis Malaysia website describes PRAXIS as its flagship public policy conference, designed to bridge ideas and translate theory into practice.

It has been held since 2011, bringing together policymakers, the private sector, civil society and academia to discuss topics of national interest.

Source: The Star

US-China tech impasse opens up opportunities for Malaysia, says Zafrul

Some 80% of approved investments between 2021 and the first quarter of this year have been realised, says the Investment, Trade and Industry Minister.

Tengku Datuk Seri Zafrul Tengku Abdul Aziz (pic) attributed this to diligent follow-ups by agency-led initiatives such as the Malaysian Investment Development Authority’s Invest Malaysia Facilitation Centre.

He said the country achieved a record high RM330bil in terms of approved investments in 2023 and a 13% year-on-year increase in the first quarter of 2024.

On trade, he said Malaysia’s total exports surpassed RM1 trillion for the third-year-running last year, while total trade reached RM1.4 trillion for the first half of 2024, making it the highest ever for the period.

“Compared with many of our regional neighbours, Malaysia has shown its ability to punch well above its weight in the movement of goods across borders. This is also attributed to Malaysia’s commitment to the rules-based framework of global trade through its membership of an extensive ecosystem of free trade agreements,” he said at PRAXIS 2024 here yesterday.

PRAXIS is the Institute of Strategic and International Studies (ISIS) Malaysia’s flagship public policy conference, designed to bridge ideas and translate theory into practice.

Despite the achievements, Tengku Zafrul said there was considerable room for improvement.

This includes enhancing the utilisation rates of free trade agreements like the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) among Malaysian firms.

He also highlighted the need to empower more small and medium enterprises to participate in international trade, and build resilience by economic diversification.

Separately, Tengku Zafrul said the standoff between the United States and China presents opportunities for Malaysia’s electrical and electronics (E&E) and renewable energy sector.

He said globally, investors in industries such as electric vehicles and solar power are focused on securing sensitive trade goods.

“At the heart of today’s tech Cold War lies a battle over the semiconductor supply chain and Malaysia’s 50-year-old semiconductor sector places us in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain for us to export more higher-value products,” he said.

He said Malaysia has already welcomed global investors such as Infineon, Intel and Texas Instruments who have also increased their investments in Malaysia, citing the country’s agile tech supply chains.

Aside from efforts on skilled talent development, Tengku Zafrul said Malaysia must also apply data-driven solutions.

He added that a proposal to establish an Integrated Digital Platform consisting of a Supply Chain Intelligent Management System, Business Continuity App and Virtual Centre of Excellence, was also presented to the National Investment Council yesterday.

Meanwhile, ISIS Malaysia chairman Datuk Prof Dr Mohd Faiz Abdullah said the policy solutions put forward at the PRAXIS 2024 sessions will be combined with cutting-edge research and analyses from researchers and knowledge partners.

“We commit that these policy papers will be made publicly available for all, and we will be delivering them to the desks of all stakeholders to advance better policy solutions for the country,” he said.

Source: The Star

‘Country achieved record high in approved investments’

Malaysia needs to strategically acquire and develop its own technology to be counted among developed nations, said Deputy Investment, Trade and Industry Minister (Miti) Liew Chin Tong. 

The deputy minister said that while foreign direct investment (FDI) is necessary, it is not an end in itself, and Malaysia needs to be strategic in its approach.

“Malaysia thinks that FDI is almost everything, and I think that mindset has to change,” he said. 

He said in the Madani Economic Framework, Prime Minister Datuk Seri Anwar Ibrahim highlighted that for over 20 years, investment has constituted only about 20% of the gross domestic product (GDP). 

“In contrast, during the early days of economic growth, it constituted around 40% of GDP. At one point in 1997, it rose to about 45%.

“While there were instances of overheating, the key takeaway is that investment is crucial and foreign investment is necessary, but we need to be strategic in our approach,” he said. 

Liew said this in his keynote address at the National Consultation on Green Industrialisation in Malaysia: Integrated Policy Strategies for a Sustainable Future meeting organised by the United Nations Trade and Development (Unctad) intergovernmental organisation and Khazanah Research Institute (KRI) here on Tuesday. 

He stressed that industrialisation cannot be just about exports; instead, it has to have some form of mission to solve societal problems.

“The New Industrial Master Plan 2030 [NIMP 2030] lists down four missions namely advance economic complexity; tech up for a digitally vibrant nation; push for Net Zero; safeguard economic security and inclusivity, which are all key to transforming Malaysia’s industry into one that is of high productivity, high skill, and most importantly, high wage,” he said.

Liew highlighted a comparison made by Seoul National University professor of economics, Prof Keun Lee, on the semiconductor sectors in Taiwan, Shenzhen and Penang, where the sector in Penang is still mainly driven by foreign firms.

“In comparison, the sectors in Taiwan and Shenzhen have acquired much more technologies and innovations,” he said.

Meanwhile, Liew said he is glad to see government-linked investment companies (GLICs) paying more attention to the semiconductor industry in Malaysia.

“The semiconductor industry used to be treated as a private-driven investment. Now, the industry has been thrust into the spotlight amid the current geopolitical fight between China and the United States due to the growing necessity of having access to advanced chips to power everything from smartphones to electric vehicles.

“Clearly, the ability to think critically about the way to position and accelerate advancements in semiconductors will have significant implications for trade, investment and geopolitics in the years to come,” he said. 

Liew said that it is also crucial to develop horizontal industrial linkages within Malaysia.

“For example, the mature semiconductor industry in Malaysia should form a basis for developing the automotive industry, including electric vehicles (EVs) and agritech,” he said.

Liew added that Malaysia is at the brink of a second economic takeoff built upon the development of a high productivity, high skills, and high wage model. 

Recently, the Ministry of Finance announced that six GLICS, Khazanah being one of them, have pledged to invest RM120 billion in domestic direct investments (DDI) over the next five years in high-growth, high-value industries, including the energy transition sector and advanced manufacturing, particularly in semiconductors.

Source: Bernama

Malaysia must be strategic in acquiring and developing technology to be developed nations

Malaysia, as a middle power, can play its role in global supply chain security amid the United States-China tensions, particularly via its electrical and electronics and renewable energy (RE) sectors.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said globally, investors in industries such as electric vehicles (EV) and solar power are focused on securing sensitive trade goods.

“The emergence of competing supply chains, and both countries’ (the United States and China) efforts to decouple from each other’s economies, has reshaped the dynamics of both international trade and investments,” he said in his keynote address at the Isis Praxis 2024 Conference today.

On Malaysia navigating this turbulent terrain, Tengku Zafrul said understanding the clear division within the global tech ecosystem has been crucial in positioning Malaysia as a preferred investment destination, particularly for semiconductors.

“China’s ‘Made in China 2025’ initiative seeks to establish dominance in crucial technologies such as artificial intelligence (AI), robotics, RE, EV, aerospace and biotechnology. In response, the US has restricted critical exports and domestic innovation investments through initiatives such as the CHIPs Act.

“As a result, many investors are seeking diversification across regions and sectors, as a risk-mitigation measure. Security concerns and over-reliance have led both economies and their regional partners to invest more in separate, rival tech supply chains,” he said.

Tengku Zafrul said at the heart of today’s Tech Cold War lies a battle over the semiconductor supply chain, and Malaysia’s 50-year-old semiconductor sector places the country in an excellent position to reap such opportunities.

“This is why we introduced the National Semiconductor Strategy (NSS) to move our semiconductor producers up the global value chain to export more higher-value products.

“We have already welcomed global investors such as Infineon, Intel and Texas Instruments who have increased their investments in Malaysia, due to our agile tech supply chains. Indeed, as technology continues to evolve, investors are also considering the transformative potential of emerging technologies such as generative AI,” he said.

To that end, Tengku Zafrul said, Malaysia is courting investments in related assets such as robotics, AI-powered logistics suppliers and industrial real estate — in short, hardware, software and applications across the AI ecosystem — to help global investors mitigate risks.

“Indeed, the semiconductor industry is the backbone of today’s biggest technologies, including AI, electric vehicles and factory automation. It is also pivotal in securing economic prosperity and national security for tech superpowers such as China and the US, especially as Taiwan still dominates semiconductor manufacturing worldwide,” he said.

According to the minister, analysts have estimated that government initiatives, such as the CHIPS Act, may inject roughly US$100 billion (RM444.9 billion) into the semiconductor industry across the US, Europe and Asia, of which Malaysia has the industrial capacity, the track record and the rule of law to successfully reap that opportunity.

“Malaysia can truly become a ‘middle-power broker’ to support the security of the global tech supply chain. This is why the NSS has earmarked over RM25 billion over the next decade to strengthen and upscale Malaysia’s semiconductor sector through talent development, targeted initiatives for local companies, and incentives to promote investment in high value-added front-end activities.

“Aside from our efforts on skilled talent development, Malaysia must also apply data-driven solutions. Hence, the continued need for strategic, deliberate and conscious action by policymakers like the Investment, Trade and Industry Ministry,” he said.

Source: Bernama

‘Malaysia can be middle power in global supply chain amid US-China tensions’

Johor is poised to be the country’s growth engine with the Johor-Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ) in Forest City as key drivers.

RHB Research said JS-SEZ is designed to foster stronger business connections and improved connectivity between the two countries.

“We view all these positively, as it indicates that both the Malaysia and Singapore governments are working well together, and Johor may be able to capture a stronger inflow of investments from Singapore going forward,” it said.

The country’s third largest state by gross domestic product contribution, economic growth for Johor is expected to continue to surpass the national gross domestic product (GDP) average, said RHB Research.

It said Johor stands out with its strategic location, advanced infrastructure, and a diverse economic landscape that includes robust manufacturing activities and a strong services sector.

“We believe the government-led catalytic developments as well as an influx of foreign and domestic direct investments will help to lift the construction, data centre, energy, petrochemicals, industrial, tourism sectors, in addition to a positive spill over to the property market,” it said in note.

The firm said the work progress on the RTS Link project has significantly boosted buyers’ confidence, given the visibility of growth prospects for Johor.

The RTS Link is a game changer, as increased cross-border traffic and the powerful “SGD factor” should benefit the local real estate sector, including housing, retail, and hospitality.

It said demand for rental and housing in the central region of Johor is likely to grow more significantly in the coming years, while the influx of new investments will translate into higher affordability in the long run.

“Major developers remain confident in the long- term outlook with Johor continuing to be an important market.

“We like UEM Sunrise Bhd and Sunway Bhd in the Johor property space. For construction, we highlight Sunway Construction Bhd, Kerjaya Prospek Group Bhd, and Malaysian Resources Corp Bhd. “Other beneficiaries of the Johor growth story include Tenaga Nasional Bhd, YTL Power International Bhd, AME Real Estate Investment Trust and VS Industry Bhd,” it added.

Source: NST

Johor will be Malaysia’s next growth engine thanks to Johor-Singapore SEZ and Forest City SFZ

Johor is set to be the next growth engine for Malaysia, driven by two high-impact projects, namely the Johor-Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ) in Forest City, according to RHB Research.

The research house pointed that government-led catalytic developments as well as an influx of foreign and domestic direct investments will help to lift the construction, data centre, energy, petrochemicals, industrial and tourism sectors, in addition to a positive spillover to the property market.

“We believe that Johor’s economic growth will continue to surpass the national average, fuelled by its robust manufacturing sector, sustained strength in its services industry, advantageous location and well-developed infrastructure, as well as supportive policies from both state and federal governments. Johor has a well-developed infrastructure that includes ports, airports, road network and utilities, complemented by competitive business operation costs,” RHB said in its Johor Market outlook report on Monday.

Currently, Johor ranks as the third-largest economic contributor in Malaysia — behind Selangor and Kuala Lumpur — and second largest contributor to Malaysia’s trade.

The state accounts for 9.5% of the country’s gross domestic product (GDP). About 29% or RM753.1 billion of national total trade in 2023 came from Johor.

In recent years, RHB said Johor’s GDP growth has outpaced the national average, expanding by 4.1% year-on-year (y-o-y) in 2023, compared to Malaysia’s 3.6% y-o-y growth, driven by the services and manufacturing sectors, which contribute 84% of Johor’s GDP.

“Johor’s services sector has experienced the fastest growth among Malaysian states over the past five years. Several economic and demographic factors fuel the services sector there — consumer spending and retail trade are buoyed by a rising middle class and increasing per capita income,” it added.

Favourable FDI destination

Meanwhile, major ports like the Port of Tanjung Pelepas (PTP) and Johor Port provide excellent connectivity for export and import activities, with PTP standing out as one of Malaysia’s busiest ports and largest trans-shipment hubs, handling a significant portion of the nation’s container traffic and serving as a key gateway for regional and global trade.

“Johor continues to be a leading investment destination in Malaysia for 2023, attracting significant interest from domestic and international investors.

The state’s appeal is driven by its robust infrastructure such as ports and road networks while being well-equipped with utilities services as well as abundant labour.

“In 2023, the Malaysian Investment Development Authority (Mida) approved 751 projects in Johor totalling RM43.1 billion — accounting for 13% of the national figure. These projects are expected to create 19,053 new jobs,” the research house added.

On the other hand, Johor’s manufacturing output in 2023 grew by 2.8% y-o-y, surpassing the national average of 0.7%, driven by a diverse sector portfolio including electrical and electronics, automotive, and petrochemicals, with significant foreign direct investment in the Iskandar Malaysia region bolstering its industrial parks and multinational presence.

“This flagship economic zone is designed to attract high value industries and global investors, offering tax incentives, specialised business parks, and a business-friendly regulatory environment,” it said.

Besides, the ongoing RTS Link project in Johor, with an estimated investment of RM3.7 billion, was 77.6% completed as of May 2024 and is on schedule to begin operations by early 2027. This cross-border rail service, spanning some four kilometres, will connect Bukit Chagar (Malaysia) to Woodlands (Singapore), accommodating up to 10,000 passengers.

Increasing appetite for property in Johor

Additionally, the RTS Link is poised to be a game changer, boosting cross-border traffic and leveraging the “SGD factor” to benefit Johor’s local real estate sector, including housing, retail and hospitality.

Demand for rental properties and housing in Johor’s central region is expected to rise significantly, with new investments likely to enhance long-term affordability.

“Major developers remain confident on the long term outlook with Johor continuing to be an important market.” it said.

Source: The Edge Malaysia

RHB bullish on Johor as Malaysia’s next economic powerhouse

The Johor government has proposed for the Forest City Special Financial Zone (SFZ) to be included within the Johor-Singapore Special Economic Zone (JS-SEZ).

Johor’s Investment, Trade, Consumer Affairs, and Human Resources committee chairman Lee Ting Han said the proposal was discussed internally and it would be submitted to the JS-SEZ working committee for further deliberation.

“The Forest City master plan, launched in 2016, aimed to develop the area into an integrated zone focusing on medical, tourism, education, and real estate sectors.

“There was also a plan to transform an island into a duty-free zone, which was realised this year with government support, making Forest City Island One duty-free.

“The SFZ was announced by Prime Minister Datuk Seri Anwar Ibrahim about a year ago, and has been progressing well,” he said in a statement today.

Lee said Forest City’s strategic location and alignment with its master plan made it an ideal choice for the SFZ.

He added that they were now incorporating the financial sector into Forest City’s development, and said the existing infrastructure was nearly complete.

Forest City’s proximity to Singapore, a major international financial and logistics hub, presents a significant opportunity to complement Singapore’s offerings.

“Our focus is on attracting investors to the SFZ and addressing the need for soft infrastructure like talent and connectivity.”

Lee added that the state government intended to elevate Johor’s financial industry, which has traditionally been conventional, by introducing advanced banking, capital, and bond products.

The initiative is expected to complement Singapore’s financial sector and potentially establish a new industry in Johor.

“We anticipate more details on the SFZ incentives by the end of August, before the signing of the JS-SEZ agreement between Malaysia and Singapore,” Lee said.

“We are proposing that the Forest City SFZ be integrated into the JS-SEZ to ensure it benefits from the same incentives.”

He said folding in the SFZ within the JS-SEZ would formalise cooperation between Malaysia and Singapore, enabling more concrete collaborations.

One of the proposals under consideration was for financial investors in Singapore to expand their operations into Forest City.

Since the SFZ announcement, the Johor government had engaged with various financial institutions, both domestic and international, to explore opportunities.

“Many industry players are eager to invest in the SFZ, but they are awaiting the announcement of incentives.

“We aim to position Forest City as a hub for launching financial products into international markets,” Lee said.

Source: NST

Forest City’s SFZ to be integrated into Johor-Singapore SEZ

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz expressed confidence in Malaysia’s ability to withstand a potential recession in the United States (US), citing the nation’s recent economic performance as evidence.

Despite rising unemployment in the US, Tengku Zafrul highlighted several positive domestic economic indicators.

These include controlled inflation and a second-quarter growth forecast of 5.8 per cent, which contribute to an optimistic outlook for Malaysia.

However, he emphasised the need for Malaysia to prepare for worst-case scenarios by focusing on resilient industries.

“As an open economy with a trade-to-GDP ratio of 130 per cent, we must ensure our economy is diverse, not just in terms of products and GDP, but also in our markets,“ he told the media today.

Tengku Zafrul made these remarks following the National Consultation Meeting on Green Trade, organised by Khazanah Research Institute in collaboration with the United Nations Conference on Trade and Development.

When asked if the worsening situation in the US would impact the recently announced National Semiconductor Strategy (NSS), Tengku Zafrul clarified that the NSS is a long-term programme extending until 2030.

“If there is an external shock, we need to be prepared. However, it’s important to remember that this is a long-term target. There will be fluctuations, but the overall trajectory will remain upward.

“We are focusing on resilient industries, and the semiconductor sector is particularly robust. The growing use of artificial intelligence (AI) will continue to drive demand for microchips, energy, and data centres, making these resources as essential as water and electricity,“ he said.

Earlier in his speech, Tengku Zafrul highlighted the importance of extending green financing to all companies in Malaysia, particularly small and medium enterprises (SMEs), to foster industry development and green trade.

“Large corporations, including multinationals and major local companies, do not face financial challenges. However, SMEs require financial support to meet upcoming stringent requirements, particularly when exporting to foreign markets,“ he said.

He added that the government is in discussions with various stakeholders, including the financial and banking sectors, to prioritise loans that support these companies.

Source: Bernama

Malaysia poised to withstand US recession – Tengku Zafrul

The Perlis government has approved 12 new investments in the state amounting to RM2 billion since November 2022, the State Legislative Assembly sitting was told today.

Perlis Menteri Besar Mohd Shukri Ramli said of the total, seven companies have been granted approval to invest in the Chuping Valley Industrial Area (CVIA), with an investment value of RM1.75 billion. These investments span the manufacturing, industrial, and renewable energy sectors, including solar energy.

“The state government considers more than just the financial value of investments. We also evaluate how investments will bring greater economic spillover to the local community,” he said.

He said this in his reply to a question from Saad Seman (PN-Chuping), in a question and answer session today.

Saad wanted to know the number of investors which the state government has received so far, how many are involved with CVIA, and the total in Malaysian Ringgit earned from these investments.

Mohd Shukri said that factors such as job creation, opportunities for small businesses due to increased demand for industrial labour, and the potential for developing new growth centres, were key considerations in evaluating investment proposals.

He expressed confidence that, through ongoing efforts, cooperation with relevant agencies, and support from elected representatives, Perlis will continue to attract further investments over the next three years, driving economic growth in the state.

Source: Bernama

12 investments worth RM2 billion approved since November 2022 – Perlis MB

The strengthening of the ringgit reflects the fundamentals of the country’s economy and policies, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Despite tough policy implementation decisions, confidence has grown among both foreign and local investors.

“We look at the capital market and stock market, showing that investors are confident about the prospects of Malaysia.

“Additionally, the first quarter gross domestic product (GDP) growth and the second quarter advanced estimate of about 5.8 per cent. All these are the basis of the ringgit strengthening,” he said when asked about the ringgit’s performance.

Tengku Zafrul was speaking to the press after the groundbreaking ceremony of Vantage Data Centers’ second campus today. Also present was Digital Minister Gobind Singh Deo.

At 8am, the ringgit traded slightly higher at 4.4200/4300 against the US dollar, compared to Monday’s close of 4.4240/4305.

Economists noted that the ringgit has made impressive gains this year, appreciating 4.1 per cent against the US dollar.

The minister is also optimistic about achieving this year’s GDP growth target of four to five per cent, crediting the government’s persistent efforts.

“We have seen trade increase by 8.4 per cent in the first six months of this year, with investments up by 13 per cent. If we can sustain these (trends), we should be able to meet our GDP growth target of four to five per cent this year,” he said.

However, Tengku Zafrul acknowledged that the ringgit’s gains are partly due to a weakening US dollar, following a weak employment report and the prospect of US rate cuts.

Source: Bernama

Tough policy decisions boost investors’ confidence — Minister