The New Investment Incentive Framework (NIIF) will balance complying with the Global Minimum Tax (GMT) while still keeping Malaysia competitive as an investment destination, said Datuk Johan Mahmood Merican, Secretary-General of Treasury, Ministry of Finance.

He said the government needs time to develop the NIIF because it wants to improve the current sector-based incentive system to a performance-based approach.

“And for the reason why we need that extra time … the Global Minimum Tax is a classic thing where developed countries bully developing countries to prevent us from introducing tax incentives, but at the same time we need to ensure that we have a framework of incentives that still makes us competitive as an investment destination so there are some areas that we are looking at to ensure that we remain competitive,” he said in a panel session at the 50th Deloitte TaxMax event today.

The NIIF is set to be implemented in the third quarter of 2025. The government has allocated RM1 billion for the initiative.

Johan stressed that real intention of NIIF is to show how the country ensures it transitions from the quality of investments rather than just quantity.

Under the new framework, incentives will no longer be automatically be granted to investors just because they operate in a promoted sector. “(Previously) in a promoted sector, and a large investor, they tend to get incentives,” he stated.

Johan suggested that the past approach may have contributed to Malaysia’s low tax-to-gross domestic product ratio as past incentives were too broad based.

“For example, one of the big debates today is we have very high FDR, there’s a lot of interest from data centres, but if we’re not careful, we might end up having a big investment in terms of value, but at the end of the day, a lot of data centres consume a lot of electricity and water, without necessarily creating jobs,” he said.

Johan stressed that the government wants investments that create high-income jobs as part of the transition and value-added. He said the government wants investments that not only bring high-income jobs but also support local businesses, especially small and medium-sized enterprises.

Additionally, the government plans to encourage investments in less-developed areas such as Kelantan.

Johan said the NIIF is also focusing on environmental, social and governance factors as part of the country’s long-term sustainability goals.

The 50th TaxMax, themed “Fostering Economic Growth the Madani Way, saw Deloitte tax professionals and guest speakers providing commentary on Budget 2025, focusing on Malaysia’s growth that is holistic, resilient and inclusive, while also uplifting the rakyat.

Source: The Sun

New Investment Incentive Framework will balance Global Minimum Tax compliance with keeping Malaysia competitive

Malaysia remains on high alert for any shifts in U.S. policies, particularly new tariffs that could disrupt supply chains, especially in the semiconductor sector.

Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz highlighted industry concerns regarding the potential increase in import tariffs pledged during the recent U.S. presidential campaign.

“The main concern is tariff increases that could disrupt and raise the prices of semiconductor chips,” said Tengku Zafrul during a press conference here. 

He is accompanying Prime Minister Datuk Seri Anwar Ibrahim on a working visit to the G20 Summit. 

If the new U.S. administration under Donald Trump implements the proposal to raise the tariffs by 60 per cent on goods manufactured in China, there is a worry of an increase in production costs and semiconductor chip prices. 

“Price hikes could hinder the adoption of new technologies such as artificial intelligence (AI), which relies on semiconductor chips,” explained Tengku Zafrul. 

As a result, Malaysia sees the need to engage with local and multinational semiconductor companies, as well as with parties in the U.S., China, and Europe, to ensure that supply chains remain unaffected. 

Tengku Zafrul stated that his ministry is currently in discussions with companies involved in the industry to ensure the resilience of supply chains. 

“Their concern isn’t just about the supply chain but also about tariffs. There have been rumors, or during the recent U.S. presidential campaign, Trump indicated that he plans to increase tariffs in sectors like semiconductors and other strategic sectors. 

“But this is still speculative; it’s too early to say,” he remarked. 

However, he emphasized the need to be prepared for any eventuality. 

During his presidential campaign, Trump promised to increase tariffs by 10% or 20% on all goods imported into the U.S. and by as much as 60% on China-made products. 

Despite these challenges, Malaysia is seen to benefit from the ongoing trade war in terms of investment. 

“Many investors, particularly from China and Europe, are adopting a ‘+1 Strategy’ and choosing ASEAN as an alternative investment location. 

“This is because they want to reassess supply chains to ensure they are more resilient and secure,” said Tengku Zafrul. 

He highlighted Malaysia’s over 50 years of experience in the electrical and electronics (E&E) sector as a key attraction. 

Tengku Zafrul explained that so far, geopolitical tensions have had a positive spillover effect on ASEAN countries, as the bloc is viewed as strategic and neutral. 

“When we look at ASEAN, Malaysia is one of the countries selected because of our extensive experience in the electrical and electronics (E&E) field,” he said.

Source: NST

Malaysia on high alert for any shifts in U.S. policies – Tengku Zafrul

Malaysia’s investment landscape continues to grow despite global economic challenges, with approved investments reaching RM160 billion in the first half of 2024, an 18 per cent year-on-year (YoY) increase.

Over 60 per cent of these investments, totaling RM97.2 billion, were channeled into the rapidly expanding modern services sector, resulting in over 79,000 new jobs.

Speaking at a recent InvestKL event, Trade, Investment, and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz emphasised the importance of leveraging this sector to transition from traditional manufacturing to a technology-driven economy.

Greater Kuala Lumpur has become a hub for global tech investments, with major companies like Google, Amazon, and Microsoft establishing cloud and data centers, while Oracle has committed to investing over US$6.5 billion to create a public cloud region in Malaysia. 

Honeywell, which set up its regional headquarters in Greater KL in 2017, has invested more than US$500 million, adding executive roles and strengthening partnerships with key local companies such as PETRONAS, KLIA, Malaysia Airlines, and AirAsia.

The presence of companies like AstraZeneca and Kamstrup further highlights Malaysia’s robust ecosystem, positioning Greater KL as a centre for innovation, technology, and growth. 

Datuk Muhammad Azmi Zulkifli, CEO of InvestKL, praised the country’s strategic efforts to attract high-value investments in areas like artificial intelligence (AI), data analytics, and smart city solutions.

“Modern services are the frontier for economic growth. It’s a digital-based economy that supports traditional sectors and drives competitiveness,” he said.

Azmi said that InvestKL’s collaborations are strengthening the supply chain and nurturing talent to help Malaysia achieve its goal of becoming a high-income nation by 2030.

However, he also acknowledged ongoing challenges, such as the need for clearer policies and a skilled workforce. 

“Malaysia must maintain its reputation for ease of doing business with adaptive, forward-thinking policies. Bringing back skilled individuals who have left Malaysia is critical to supporting our growth,” Azmi said.

The InvestKL event also featured insights from key institutions, including the World Bank, the Malaysian Institute of Economic Research (MIER), and Permodalan Nasional Bhd (PNB). 

Dr. Anthony Dass of MIER noted, “To sustain growth, Malaysia must modernise its manufacturing sectors and integrate modern services such as technology, communication, and business solutions.” 

PNB’s chief economist, Dr. Kamaruddin Mohd Nor, underscored the link between innovation and economic progress. 

“Economic growth hinges on innovation. To achieve this, we need a conducive ecosystem to foster innovation where startups and new ideas can come to fruition and deliver returns,” he said.

Kamaruddin said that many countries that rank high on the Global Innovation Index by the World Intellectual Property Organisation, prioritise institutional support, research, human capital, ease of doing business, and access to credit. 

“Malaysia should focus on encouraging innovation, especially in academic research and development.”

Panellist Yu Cao, an economist at the World Bank’s East Asia and Pacific Chief Economist Research Centre, emphasised the evolving relationship between services and manufacturing. 

“For Malaysia to sustain its growth, it must modernise its manufacturing sectors. International studies show a positive link between modern services, such as technology, communication, information, and business services, with the manufacturing sector.”

Malaysia must leverage this sector to transition from traditional manufacturing to a technology-driven economy, says the trade, investment, and industry minister.

Source: NST

Malaysia’s investment landscape improving despite global turmoil

Sarawak has recorded approved investments totalling RM10.43 billion across 212 projects for the third quarter of this year (3Q2024), which are expected to create about 5,400 new job opportunities, the Sarawak State Assembly was told on Wednesday.

Sarawak Minister of International Trade, Industry and Investment, Datuk Amar Awang Tengah Ali Hasan, said domestic direct investments (DDIs), which included reinvestments by existing foreign investors, utilising domestic funding, amounted to RM7.18 billion, while foreign direct investments (FDIs) contributed RM3.25 billion.

“The manufacturing sector was the largest contributor at 55.7%, attracting investments worth RM5.81 billion, followed by the services sector at 28.5% or RM2.97 billion, and the primary sector at 15.8% or RM1.65 billion. 

“These manufacturing projects were mainly in chemical and chemical products, totalling RM2 billion (urea, melamine and fertiliser); electrical and electronic products (solar ingots, wafer, cell and module), amounting to RM1.2 billion; and non-metallic mineral products (cement and clinker), totalling RM0.8 billion,” he said in his winding-up speech for his ministry here.

Awang Tengah, who is also Sarawak deputy premier, said the state continued to attract and facilitate investors in high-tech industries, including electronics, sustainable fuels, renewable energy and composite materials.

He said the amendment to the Electricity Ordinance last year had created more opportunities for investors to be involved in low-carbon power generation.

“For example, a recently signed joint-study agreement between Sarawak and an investor from Abu Dhabi will explore the floating solar power project’s potential in Murum.

“This project will further transform Sarawak’s energy landscape towards more renewable resources, spurring industrial advancement, as well as attracting green and sustainable investments,” he added.

Source: Bernama

Sarawak secured investments worth RM10.43b across 212 projects in 3Q2024, expects to create 5,400 jobs — state minister

Malaysia’s record achievement in attracting foreign direct investment (FDI) underscores its growing prominence as a key economic player within the ASEAN region.

Prime Minister Datuk Seri Anwar Ibrahim has described ASEAN as a “vital trade platform,” offering “simplified access to ten markets in Southeast Asia”, according to Forbes in an article released today.

Anwar, who is also the Finance Minister, recently sat down with Forbes to discuss how the country’s resources and regional connections can benefit companies seeking to establish a presence in the region.

During the interview, the Prime Minister also highlighted the country’s central role within the bloc, emphasising actions to streamline trade flows and reduce bureaucratic hurdles to attract foreign investment.

He also explained Malaysia’s strategic geographic position, which enables broader trade opportunities with non-ASEAN partners, including Australia and India.

Apart from that, the Prime Minister also emphasised trade facilitation and economic partnerships, which reinforces Malaysia’s regional relevance.

The article also pointed out that by integrating Malaysia into a larger regional strategy, companies can unlock its potential as a gateway to Southeast Asia while navigating the complexities of an increasingly interconnected global economy. Nevertheless, it said businesses should prioritise analytical evaluations of Malaysia’s policies and market conditions rather than rely solely on government policies.

Within this dynamic regional landscape, the article said Malaysia exemplifies ASEAN’s economic appeal, attracting a record US$74 billion in approved FDIs in 2023 – the highest in its history.

By mid-2024, the article noted that Malaysia had already secured an additional US$36 billion, further cementing its pivotal role within ASEAN and highlighting the region’s attractiveness to global investors.

Source: Bernama

Malaysia’s record FDI solidifies position as key economic player in ASEAN – Forbes

As Southeast Asia cements its role as a key player in the global economy, Malaysia is positioning itself as a prime entry point for businesses seeking to tap into the region’s growing market.

In a recent interview with Forbes, Prime Minister Datuk Seri Anwar Ibrahim outlined Malaysia’s unique advantages and its efforts to attract foreign investment by leveraging its strategic location and strong ties within Asean.

Anwar described Asean as a “vital trade platform” that simplifies access to ten Southeast Asian markets.

He highlighted Malaysia’s central role in the bloc, emphasizing government initiatives to streamline trade processes and reduce bureaucratic hurdles to draw global businesses.

Additionally, the report said that Anwar noted Malaysia’s strategic geographic location, which enables trade expansion not only within ASEAN but also with partners such as India and Australia. 

“Malaysia’s strategic geographic location not only enhances intra-Asean trade but also offers significant opportunities with key non-Asean partners,” Anwar told Forbes. 

To support Anwar’s analysis, Chidiebere Ogbonnaya, a professor of human resource management at King’s Business School, King’s College London said Malaysia’s commitment to trade facilitation reflects a broader global trend of governments strategically positioning themselves to integrate into and maximise the benefits of global value chains.

“Countries like Malaysia are leveraging their location and policy frameworks not only to attract investment but also to embed themselves within the production networks of advanced and emerging economies,” he explained to Forbes. 

In the report, Ogbonnaya also suggested that Malaysia exemplifies the theoretical framework of global value chain integration, where state-led initiatives and strategic geographic positioning enable firms to streamline cross-border operations, integrate into regional production systems, and enhance their participation in interconnected global economies.

According to Forbes, Malaysia’s robust infrastructure, thriving digital economy, and proactive trade policies make it an attractive destination for firms aiming to establish a presence in Southeast Asia.

However, Forbes said while these factors present clear opportunities, business leaders are encouraged to carefully assess Malaysia’s market conditions and regulatory landscape to maximise their potential for success. 

Overall, Forbes said Anwar’s emphasis on trade facilitation reflects Malaysia’s ambition to serve as a key regional hub.

Nevertheless, the report said businesses should prioritise analytical evaluations of Malaysia’s policies and market conditions rather than rely solely on government-promoted narratives.

By integrating Malaysia into a larger regional strategy, firms can unlock its potential as a gateway to Southeast Asia while navigating the complexities of an increasingly interconnected global economy, it added.

Source: NST

PM positions Malaysia as prime entry point into Southeast Asia – report

International partnerships and foreign investments, especially in the green technology sector, should enable Sarawak to record a double Gross Domestic Product (GDP) of RM280 billion by 2030, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

According to him, Sarawak is expected to achieve a double GDP from RM140 billion in 2022 to RM280 billion by 2030.

“Under the Post-Covid19 Development Strategy 2030 (PCDS 2030), we have three main thrusts, namely economic prosperity, social inclusion and environmental sustainability, and of course, to implement them, the enablers are innovation, digital infrastructure and education.

“This ecosystem that we will implement and by the end of it, by 2030, we will be able to achieve a GDP of RM140 billion to RM280 billion, which is our target,” he said when delivering a keynote address for a RAM Conference themed ‘Advancing an Inclusive and Sustainable Future – Spotlight on Sarawak’, at a hotel here today.

On investments, Abang Johari said Sarawak was currently collaborating with Japan and Korea in hydrogen production, which should produce about 240,000 tonnes of hydrogen to be exported to the two countries by 2028.

Sarawak is the first state in Malaysia to have carbon trading legislation, namely the Environment (Reduction of Greenhouse Gas Emissions) Ordinance 2023, which took effect on March 1 this year.

“The federal government is paying attention to this matter. They came to Sarawak to collaborate on the legislation that we had enacted for them to introduce in (Parliament) in December.

“We (Sarawak) are the first to enforce this legislation.”

With regard to PCDS 2030, Abang Johari stressed that Sarawak was very concerned about the climate change happening now.

He added that the state government had been actively involved in tree-planting activities, especially for mangrove forests, deemed as the best carbon storage compared to regular forests.

However, he said to carry out environmental sustainability activities, especially in addressing climate change in line with efforts towards achieving the ‘Net Zero 2050’ goal, it would require large funding.

“In addressing global climate change, one problem faced is finance because any approach in addressing climate change, you need a large capital in addition to equipment in our efforts towards achieving Net Zero 2050.

“For that reason, this is where developed countries play their role in financing all the related projects. I hope the financial community would find ways and approaches to finance all these projects.”

Also present at the event were Deputy Minister of Energy and Environmental Sustainability Sarawak Datuk Dr Hazland Abang Hipni; Development Bank of Sarawak (DBOS) chairman Tan Sri Datuk Amar Mohd Morshidi Abdul Ghani; and RAM Holdings chairman Datuk Kamaruddin Taib.

RAM Holdings Bhd operates as a holding company and, through its subsidiaries, provides independent credit ratings, research, training, risk analysis, environment-social-governance (ESG) analysis, and bond-pricing services.

During the RAM Sustainability Awards 2024 presentation, Abang Johari was honoured with the ‘Sustainability Steward of the Year’.

Three other ‘RAM Sustainability Awards’ were also presented to Press Metal, Sarawak Energy Bhd, and Sarawak Oil Palms.

Source: Borneo Post

Premier: Global collabs among key boosts for S’wak to post RM280 bln in GDP by 2030

Prime Minister Datuk Seri Anwar Ibrahim held a meeting with the President of France, Emmanuel Macron, on the sidelines of the G20 Summit in Rio de Janeiro, Brazil.

“During this meeting, we expressed our commitment to continue to strengthen relations and cooperation between the two countries.

“It covers the fields of trade, investment, tourism and defence as well as cooperation in the field of Artificial Intelligence (AI),” he told Malaysian reporters here on Monday.

 Datuk Seri Anwar Ibrahim also held a bilateral meeting with the French president in conjunction with the G20 Summit held at the Museum of Modern Art (MAM) today.

Anwar and Macron discussed Malaysia’s role as Asean chair 2025 and the Malaysian prime minister expressed his appreciation to Macron for his support through the Asean-France Development Cooperation.

In addition, the two leaders also had time to discuss the genocide that occurred in Palestine which requires a ceasefire as soon as possible and the cooperation of all parties to end the suffering of the people there.

Also present during the meeting was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Source: Bernama

Anwar, Macron discuss trade, AI collaboration at G20 summit

It has been a busy November for me, having first accompanied the prime minister on his visit to the China International Import Expo (CIIE) in Shanghai and Beijing, then to Egypt before we headed to the 31st Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Week (AELW) in Peru.

It is a gruelling schedule but international engagements, including forums like Apec, are crucial to Malaysia, particularly given the geopolitical developments in recent years.

As early as 1989, Malaysia became one of the founding economies of Apec, which arguably remains a cornerstone of regional economic integration and collaboration.

This year’s Apec AELW, with the theme of “Empower-Include-Grow” sought to tackle pressing challenges and reinforce commitments to inclusivity and sustainability. This was particularly significant given Malaysia’s upcoming chairmanship of Asean in 2025 and the recent re-election of Donald Trump as US president, introducing new variables into the global “chess board” of economic prowess and positioning — something everyone was talking about in Lima.

Being part of Apec matters to and benefits Malaysia on several fronts. First, with a combined population of three billion, Apec’s 21 member economies represent approximately 62% of the world’s gross domestic product (GDP) and 47% of global trade. Aside from trade, Apec also facilitates investments, capacity building and knowledge sharing.

In 2023, Apec’s GDP grew by 3.5%, surpassing the global growth rate of 3.2%. This was driven by robust household spending and a resilient services sector, notably the recovery of travel and tourism. The same 3.5% growth rate is forecast for Apec in 2024. Although geo­political uncertainties, trade protectionism, and commodity price fluctuations may temper growth to 3.1% in 2025, there is undoubtedly resilience in our combined strength.

In terms of enhancing trade, as of July 2023, member economies had signed a combined total of 212 free trade agreements (FTAs), with 202 in force. Notably, 74 of these FTAs are intra-Apec, involving at least two member economies, and to good effect for us — in 2023, Apec economies accounted for 78.1% or over RM2 trillion of Malaysia’s total trade, while contributing 57.2% or RM107.8 billion of total approved investments across all sectors in Malaysia. In short, one can safely presume that the Apec membership has supported Malaysia’s economy in a big way.

Meanwhile, Malaysia intends to leverage its chairmanship of Asean in 2025 to bring about synergistic benefits between the Apec economies and the Asean member states, seven of which are also in Apec. Asean, arguably, is also at the heart of Apec geographically, strategically and economically.

This rare dual-role opportunity places Malaysia in a unique position to strongly advocate for both forums to pursue a balanced, non-polarising approach in the Indo-Pacific, with a clear call to action for member economies to deepen their collaborative focus on inclusivity, innovation, equitable growth and sustainability.

Indeed, Malaysia’s 2025 Asean chairmanship theme of “Inclusivity and Sustainability” is very much aligned to Apec’s 2024 theme, as both frameworks seek to prioritise the digital economy, green technologies, and support for small and medium enterprises, to pave the way for regional stability and shared prosperity.

A rules-based international system is key

But Apec’s most important contribution moving forward might be its role in enshrining a multilateral, rules-based international system. Trump’s return to the US presidency resurrects concerns that his previous “America First” policies will result in a further retreat from multilateralism, vis-à-vis Apec and other regional frameworks, although admittedly, the new administration’s official policies will only be known post-inauguration of the new US president.

However, I would likewise posit that this development also presents us with opportunities. Apec has been and can continue to serve as a platform for the US to engage constructively with the region on economic issues like supply chain resilience, strategic resources and digital trade.

Indeed, we are hopeful that the new Trump administration will approach global trade with pragmatism and a clear view of the mutual benefits of multilateral engagement, which will complement Apec’s cooperative ethos.

Apec has proven its effectiveness in fostering cooperation among diverse economies, enabling them to address shared challenges such as economic inequality. In the context of Apec, adherence to an agreed-upon rules-based system facilitates trade liberalisation, investment flows and economic integration to promote stability in international relations. It also provides mechanisms for dispute resolution and the enforcement of agreements, which are crucial for maintaining trust.

Moreover, a rules-based system upholds the sovereignty of nations while encouraging them to collaborate on global issues. This balance is key to avoid unilateral actions that can lead to conflicts and economic disruptions.

Cooperation, not conflict, for global progress

The US and China, as the two largest economies within Apec, remain pivotal to the world’s economic trajectory. This year, their economies are expected to grow by 2.5% and 4.8% respectively. In the long run, concord between the US and China is the best outcome for not only their peoples, but also the wider world.

While we may not agree on everything, I believe the Trump White House will find Malaysia, as well as Apec and Asean willing to engage with them to ensure peace, stability and prosperity in our region and beyond. When it comes to trade and investment, we believe Malaysia’s neutrality is valuable, not only to our own foreign and economic policies, but also as a bridge between rival powers. Ours is neutrality in engagement, not in isolation, to help address global supply chain vulnerabilities, economic shocks and climate-related disruptions.

Regardless of what is happening globally, Malaysians can rest assured that the government will continue to proactively navigate whatever implications arise to protect the rakyat’s interests. Indeed, recent geopolitical developments validate our strategy to be friends to all, without suppressing Malaysia’s strong views on glaring global injustices. Indeed, our continued participation in international forums like Apec, as well as new ones like the BRICS reflect Malaysia’s desire for more constructive engagement to bring about a better counterbalance of superpowers in the global world order.

As the world grapples with geopolitical realignments and economic uncertainties, institutions like Apec and Asean must stand as a beacon of multilateralism, resilience and innovation, especially in fostering deeper cooperation and consensus-based decision-making. When all is said and done, the world’s ability to thrive for the many needs more, not less constructive multilateralism.

Tengku Datuk Seri Zafrul Abdul Aziz is the minister of Investment, Trade and Industry

Source: The Edge Malaysia

Malaysia’s strategic position in shaping regional economic collaboration

The new leadership change in the US is expected to affect the global trade landscape, particularly in trade relations between the US and China.

The Ministry of Investment, Trade and Industry (Miti) said that should the geopolitical issues continue, there is a greater opportunity for other countries such as Malaysia to become alternative destinations for multinational companies to increase or start their investments.

According to Miti, the government has introduced various initiatives to attract investors to move or expand their operations in Malaysia as a result of the US-China trade war.

Among the initiatives are making the semiconductor industry a major programme under the New Industrial Master Plan 2030 (NIMP 2030), drafting a National Semiconductor Strategy, including efforts to modernise the existing outsourced semiconductor assembly and test companies, which is an important element in the semiconductor value chain.

The government will also strengthen existing infrastructure, focus on local talent and encourage  government-linked investment companies to invest in local semiconductor companies, Miti said in a written reply on the parliament website on Monday to a question posed by Mohd Syahir Che Sulaiman (PN-Bachok) during a question session in Dewan Rakyat on Monday. 

Mohd Syahir inquired what the government’s plan is for the growth of the semiconductor industry in line with NIMP 2030 in view of the US-China trade war.

Source: Bernama

US-China trade war can boost Malaysia’s chances to be multinational investment destination — MITI

A total of 2,132 investment projects in the manufacturing and services sectors have been approved in Selangor from 2023 to June 2024, with a combined investment value of RM90.21 billion, said Selangor Exco for Investment, Trade, and Mobility Ng Sze Han.

For 2023 alone, he noted that 1,311 investment projects were approved, amounting to RM55.24 billion, while from January to June 2024, 821 projects were approved with a total investment value of RM34.97 billion.

Ng also highlighted that these investments created 63,912 job opportunities in Selangor during the same period, reecting the positive development of the economic sectors.

He was responding to questions from Muhammad Izuan Kassim (PH-Kota Damansara) and Quah Perng Fei (PH-Bandar Baru Klang), who enquired about the amount of investment in Selangor for 2023 to 2024 during the Selangor State Assembly session here today.

Ng added that the state government has set a target of RM50 billion in investments for the manufacturing and services sectors this year, with RM15 billion allocated to manufacturing and RM35 billion to services.

To achieve that target, he said the state government, through Invest Selangor, has implemented various initiatives, including organising investment promotion programmes, developing new industrial areas, and conducting regular project coordination meetings.

Source: Bernama

Selangor records RM90.21 bln investment in manufacturing and services sectors

The introduction of the Investment Incentive Framework (IIF2025) in 2025 Budget marks a transformative step to revolutionise Malaysia’s investment landscape.

InvestKL said the step aligned to InvestKL’s focus on attracting modern services investments in areas such as Artificial Intelligence (AI), robotics, internet of things. data science and fintech.

InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli said the 2025 Budget is a comprehensive and forward-looking plan to accelerate Malaysia’s economic growth.

“The introduction of IIF2025 prioritises emerging sectors and reskilling the workforce to meet industry demands, aligning with InvestKL’s mission to draw high-quality investments in the modern services sector.”

As Malaysia prepares to chair Asean in 2025 and explores joining BRICS, the 2025?

Budget positions the nation and Greater Kuala Lumpur to seize global opportunities, further solidifying their standing in the international investment landscape,” he said.

InvestKL added that targeted fiscal measures and incentives in the 2025 Budget will accelerate key sectors, including green technology, digital economy, and advanced manufacturing.

It said the 2025 Budget places a significant emphasis on expanding Malaysia’s modern services sector, a move set to profoundly impact the rakyat’s economy.

It said these measures are critical in advancing Malaysia’s roadmap towards becoming a high-income nation by 2028.

“The recent influx of foreign direct investments is poised to be a catalyst for the creation of high-skilled jobs across diverse sectors.”

“The influx is not just a financial boon; it is a transformative force that will significantly elevate the quality of employment opportunities available to Malaysians.”

“As these high-skilled jobs proliferate, they will infuse the nation’s economic engine with new vigour, driving growth and innovation,” it added.

Source: NST

2025 Budget to revolutionise Malaysia’s investment landscape: InvestKL CEO

Strong cooperation between ASEAN and APEC remains a key agenda to ensure sustainable development and stronger economic integration in the region, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz.

As Malaysia’s representative, he is confident that this commitment will continue to strengthen the country’s position in shaping a more inclusive, sustainable, and competitive Asia-Pacific economic future.

During a dialogue session with the APEC Business Advisory Council (ABAC) and APEC economic leaders, he emphasised Malaysia’s vision to drive sustainable growth and regional economic transformation.

“As Malaysia prepares to lead ASEAN in 2025, we are committed to strengthening the green economy, accelerating digital transformation, and ensuring economic inclusivity, with strong support from our regional partners under the ASEAN-APEC framework.

“I also shared Malaysia’s success in attracting foreign direct investment (FDI), particularly in the data and semiconductor sectors. These two sectors are now critical pillars in strengthening the country’s economic resilience,” he said in an Instagram post on Friday.

Tengku Zafrul added that Malaysia also believes that close cooperation between the public and private sectors plays an essential role in achieving mutual benefits for all member countries.

Through such cooperation, he said, it would ensure sustainable economic development and a more robust regional integration.

Tengku Zafrul is currently in Lima, along with the Malaysian delegation led by Prime Minister Datuk Seri Anwar Ibrahim, who is on an official visit to the capital, attending the 31st Apec Economic Leaders’ Week.

APEC member economies represent approximately three billion people or nearly 30 per cent of the global population.

These countries also account for nearly 60 per cent of the global gross domestic product and facilitate almost 50 per cent of global trade.

Source: Bernama

Strong ASEAN-APEC cooperation key to sustainable development, economic integration – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim is scheduled to hold a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva here Sunday.

Anwar, who is also the Finance Minister, will also meet with representatives from the Malaysian and Brazilian semiconductor industries and participate in a roundtable session with Brazil’s captains of industry on the second day of his visit here.

The Prime Minister will also participate in the first oil celebration of Malaysia’s Yinson Holdings Bhd’s floating, production storage, and offloading (FPSO) unit, Maria Quitéria, which achieved its first oil production on Oct 15, 2024.

This milestone marked the commencement of the project’s firm charter, under which contracted day rates will be paid to the group’s unit, Yinson Production, for a period of 22.5 years until 2047.

FPSO Maria Quitéria is the second asset delivered by Yinson Production for its client, Petrobras, following the delivery of FPSO Anna Nery in May 2023. FPSO Maria Quitéria has a production capacity of 100,000 barrels of oil per day (bpd) and a storage capacity of one million barrels.

The day will end with the Prime Minister having dinner with Malaysian diaspora and friends of Malaysia.

Anwar arrived in this vibrant coastal city on Saturday after attending the APEC Economic Leaders Week (AELW) in Lima, Peru for his first official visit to Brazil and as a guest country for G20.

Malaysia, along with 16 other countries, including Chile, Qatar, Egypt, Singapore, Spain, United Arab Emirates, and Vietnam are guest countries for the G20 Summit. Anwar’s visit was made at the invitation of Brazilian President Lula da Silva.

The Prime Minister is accompanied by Foreign Minister Datuk Seri Mohamad Hasan and Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz.

The Malaysian delegation also includes Deputy Minister of Natural Resources and Environmental Sustainability Datuk Seri Huang Tiong Sii, Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir, and other senior Malaysian government officials.

In 2023, Brazil, the largest country ini South America, was Malaysia’s 20th largest trading partner, 29th largest export destination, and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination, and largest import source.

Source: Bernama

PM Anwar to meet Brazilian president, captains of industry

The state government is planning to introduce several initiatives under the Speed Selangor Policy next year, with a focus on emerging and advanced industries, aimed at streamlining processes and facilitating investor entry.

Menteri Besar Dato’ Seri Amirudin Shari said these efforts are in line with the administration’s objective of becoming a top choice for both domestic and international investors across Asia.

Amirudin added that the initiative can help Selangor create quality, dignified job opportunities more quickly.

“Every day and week saved is precious time for our workforce — whether they are youths, graduates, or Selangor residents already employed — to advance more quickly and contribute to strengthening the state’s economy.”

“In line with this, starting next year, the administration will introduce several initiatives under the Speed Selangor Policy, focusing on emerging industries,” he said when tabling the 2025 Selangor State Budget at the assembly here today.

“They include artificial intelligence (AI), supporting industries, semiconductors including electrical and electronics, the development of industrial parks, housing including affordable categories, aerospace, and advanced manufacturing.”

Amirudin said once focus is established on these industries, it will be expanded to involve all government processes to boost the ease of doing businesses in Selangor.

Among others, the Menteri Besar said the approval period for planning permits for industrial areas will be reduced from the current three-and-a-half months to 14 days, provided the specified criteria are met.

“For fast-track planning permit applications, all local councils will standardise their procedures, and approvals will be issued within seven days. This policy will be implemented by April 2025 at the latest.

“Processes and procedures that can be enhanced through the use of AI technology and automation will be expedited,” he said.

Meanwhile, the Industrial Green Lane approach for planned industrial areas will allow construction projects that are 80 per cent complete on site to be granted a business licence within 24 hours after the Certificate of Completion and Compliance is issued.

Separately, Amirudin said the state will develop a high-impact project management system, with an allocation of RM600,000, to ensure the success of projects initiated by the state government or those done in collaboration with private entities.

“This system will monitor every project phase, from the announcement stage, the agencies involved, allocated budgets, to planning and implementation, including any issues causing delays.

“This initiative will enhance the administration’s ability to manage high-impact projects as outlined in the First Selangor Plan and any other future plans.

“The system will also serve as a reporting platform to enhance government accountability to all stakeholders, providing an official, accurate, and reliable source of information on state government projects.”

Amirudin added that the state government has also allotted RM523,800 to enhance the state’s online tender system.

Source: Selangor Journal

Speed Selangor Policy to drive investment, create more jobs — MB

Malaysia’s strategic location, coupled with forward-looking and progressive policies, makes it an ideal hub for business and collaboration, especially for French stakeholders aiming to tap into the Asean market, said Malaysia’s Ambassador to France, Datuk Eldeen Husaini Mohd Hashim.

Positioned in the heart of South-east Asia, he noted that Malaysia boasts a robust and diversified economy, offering unparalleled access to the rapidly growing Asean bloc.

“Having said this, there is a need for deeper engagement with our French counterparts to enhance understanding of the South-east Asian region through the Asean bloc.

“As Malaysia prepares to assume the Asean chairmanship in 2025, we (the embassy) are committed to championing this vision,” he told Bernama, in conjunction with a networking event held in Paris, France, to celebrate Malaysia’s heritage and prospects in the country.

Guided by the Madani concept, Eldeen said the embassy is committed to driving inclusive and sustainable growth that ensures no one is left behind.

He said the highlight of the event was the launch of the Malaysia Business Club, an initiative aimed at fostering stronger business ties between Malaysia and France.

“This initiative provides a dedicated platform for Malaysian and French businesses to connect, explore opportunities, and foster cross-sector collaborations.

“Positioned as a precursor to a future formal association, the club aims to strengthen bilateral trade and investment ties,” Eldeen said.

Under the theme “Inclusivity and Sustainability”, he pointed out that the event served as a prelude to Malaysia’s Asean chairmanship in 2025 and underscored Malaysia’s pivotal role in promoting Asean’s collective vision, while simultaneously strengthening bilateral relations with France.

Eldeen added that the event was held yesterday in collaboration with the Mairie du XVI (City Council of the 16th Arrondissement) and was attended by approximately 200 guests, including Excellency Mayor Jeremy Redler, members of parliament, officials from the National Assembly and Ministry of Foreign Affairs France (MFA), French business leaders, cultural practitioners, and other government officials.

On Sept 12, Bernama reported that the Malaysian Embassy in Paris plans to establish a business association for Malaysian entrepreneurs in France by the end of this year to build business ties and pave the way for new opportunities with one of Europe’s largest economies.

Source: Bernama

Malaysia aims to strengthen French ties with new ‘Business Club’ initiative, says ambassador

The Bandar Teknologi Maju Perlis project in Chuping, set to begin next year, is expected to create around 2,000 direct job opportunities in technology fields.

Communications Minister Fahmi Fadzil said the project, costing US$11 billion (US$1 = RM4.47), is expected to begin phased operations by mid-2027.

He added that the project would also empower the country’s Technical and Vocational Education and Training (TVET) sector through collaborations with public institutions of higher education such as Universiti Malaysia Perlis (UniMAP) and other TVET institutions.

“Our youth will gain skills to support the operations of this technology city while also becoming proficient in utilising AI (artificial intelligence) technology,” he told a press conference here today.

Earlier, Fahmi had accompanied the Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail, who attended an agreement signing ceremony on Bandar Teknologi Maju Perlis, a joint venture between Sirage Capital Sdn Bhd and Skyvast Sdn Bhd.

Fahmi also said that the project would include infrastructure to accommodate an up to 1.25 Gigawatts (GW) AI data centre, which would operate off-grid, not relying on existing power networks.

“They will utilise energy sources such as solar, battery storage, or gas turbines to ensure the 1.25GW data centre can operate efficiently,” he explained.

“This strategic investment in Chuping is unique because it is one of the places with the highest sunlight exposure in Malaysia, supported by the suitable topography for the development of Bandar Teknologi Maju Perlis,” he explained.

According to Fahmi, the off-grid concept is expected to attract many companies aiming to ensure their investments receive green ratings.

He said the Communications Ministry is confident that this development would contribute to the country’s digital economy transformation, particularly in Perlis.

“This is a game-changer, a project that will put Perlis on the global map for AI data centres. The Ministry will provide support, including discussions on aspects like submarine cables to facilitate the construction of data centres in Perlis,” he said.

Source: Bernama

Bandar Teknologi Maju Perlis to offer over 2,000 jobs in technology fields – Fahmi

Prime Minister Datuk Seri Anwar Ibrahim has conveyed the government’s readiness to collaborate with and assist the new Hong Kong Economic and Trade Office (HKETO) in Kuala Lumpur, whose establishment was announced by Hong Kong early this year.

“This will further strengthen the ties and cooperation between Malaysia and the Hong Kong Special Administrative Region (HKSAR),” he told reporters after a bilateral meeting with HKSAR chief executive John Lee Ka-chiu here on Friday.

During the meeting, the two leaders had the opportunity to consider collaborations in the areas of investment, trade, education, tourism, semiconductor, information technology, financial services and people-to-people relations, he added.

Hong Kong also invited Malaysia to learn about transportation technology and participate in its science, technology and innovation hub development project, including a science park.

Also present during the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Malaysian Ambassador to Peru Ahmad Irham Ikmal Hisham.

Anwar is on an official visit to Peru where he is attending the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week. During the visit, bilateral meetings were also scheduled with leaders of some APEC member economies.

In February this year, the Foreign Ministry said in a statement that the move to open the HKETO in Kuala Lumpur highlights the strong economic and trade ties between the HKSAR and Malaysia.

The decision for this initiative came after Anwar, who is also the Finance Minister, made the proposal to Lee during their bilateral meeting in Putrajaya in July 2023.

“Being strategically located in Southeast Asia, Malaysia continues to solidify its position as a key partner for Hong Kong – as the two sides seek to further expand and deepen the existing trade, investment, and economic collaborations,” the statement said.

The strength of this partnership is evident in the robust trade figures between the two sides.

In 2023, Malaysia and Hong Kong enjoyed total trade of RM105.09 billion (US$23.03 billion) — comprising exports valued at RM89.84 billion (US$19.69 billion) and imports worth RM15.25 billion (US$3.34 billion) — with the trade balance being in Malaysia’s favour.

Both sides have been actively engaging one another during the exchange of high-level visits.

“The opening of the HKETO in Kuala Lumpur not only signifies a new chapter in Malaysia-Hong Kong relations, but also adds significance to the 50th anniversary of Malaysia-China diplomatic ties,” the statement said.

Source: Bernama

Malaysia prepared to work with new Hong Kong Economic and trade office, says PM

Japan has expressed its support for Malaysia as the Chair of ASEAN in 2025, while Putrajaya intends to continue its Look East Policy, particularly in education and technology transfer, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that during a bilateral meeting with his Japanese counterpart, Shigeru Ishiba, they also assessed the progress of cooperation between the two countries in various fields, including trade, energy transition, security and defence, maritime, education, and culture.

“We also discussed issues related to the South China Sea and the current situation in Myanmar,” said Anwar following the meeting on Friday, on the sidelines of the 2024 APEC Summit here.

Anwar said he also gave assurance to Ishiba that Malaysia will certainly strengthen its relations with Japan during its ASEAN Chairmanship, which will begin on Jan 1, next year.

“Malaysia gives priority to its relations with Japan. I am thankful that since you assumed leadership as (Japan’s) Prime Minister, you have taken a very positive position in terms of promoting bilateral relations with Malaysia.

“Once, we assume ASEAN Chairmanship, we will certainly strengthen the relations with you,” he said.

Anwar said Japan is one of the first countries to support Malaysia’s industrial advancement and his MADANI Government intends to continue cooperation in this area.

He said he had also invited Ishiba to visit Malaysia as soon as possible.

“I hope that the relationship between Malaysia and Japan will continue to be strengthened, thereby attracting more investments for the progress and economic potential of the country,” he added.

Also present at the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Malaysia’s Ambassador to Peru, Ahmad Irham Ikmal Hisham.

Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years, with total trade between the two countries valued at RM156.64 billion (US$34.39 billion) in 2023.

As of 2023, a total of 2,810 projects by Japanese companies have been implemented in Malaysia, with investments amounting to RM102.11 billion (US$29.67 billion).

Source: Bernama

Malaysia-Japan bilateral meeting touches on ASEAN, look east policy – PM Anwar

A “scoping exercise” to strengthen the Malaysia-New Zealand Free Trade Agreement (MNZFTA) will cover new areas of cooperation such as digital trade and halal recognition, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In a posting on his X account on Friday, Tengku Zafrul said he is confident that close cooperation between Malaysia and New Zealand will open up new opportunities for the people of both countries as well as strengthen regional economic competitiveness.

Tengku Zafrul, who is in Peru to accompany Prime Minister Datuk Seri Anwar Ibrahim to the 31st Apec Economic Leaders’ Meeting (AELM), met with New Zealand Trade Minister Todd McClay to discuss opportunities to strengthen economic ties between the two countries.

“We discussed opportunities to strengthen economic ties between Malaysia and New Zealand. With strong bilateral trade relations, New Zealand is Malaysia’s second largest trading partner in the Australasia region, with trade value reaching US$2.54 billion [RM11.38 billion] in 2023,” he said.

Malaysia and New Zealand are also targeting a 50% increase in bilateral trade by 2030, especially in the high-value manufacturing sector and the digital economy.

Source: Bernama

Malaysia, New Zealand committed on having ‘scoping exercise’ to strengthen FTA

Malaysia stands ready to align its policies to match new demands and ever-evolving industries in a multi-pronged approach to continuously attract high-value investments.

For instance, Malaysia is now talking about assessing the entire policy on water conservation, Prime Minister Datuk Seri Anwar Ibrahim said, citing the high demand for water by data centres.

“We have never encountered such a high demand for water except now by these data centres. I don’t know what they do with it, but they have been asking for more water, more energy,” he quipped at the session titled, “Opportunities and Challenges in the AI Revolution”, APEC CEO Summit here Thursday.

Other panellists in the session were Microsoft vice-president of Data & AI, Zia Mansoor, Vobile chief executive officer Yangbin Wang, and Google vice-president, government affairs & public policy, Karan Bhatia.

Also present at the session were Foreign Minister Datuk Seri Mohamad Hasan and International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The event took place at the Grand National Theatre of Peru and was moderated by APEC Business Council (ABAC) Canada member, Jan De Silva.

Besides this, there is also a need for skilling, up-skilling, training and exposure, changing the curriculum in universities, colleges, and schools. To this end, Malaysia is successful because the government listens, Anwar said.

“When our friends from Microsoft, Google, and Huawei come to us, we tell them to give us some time, let us listen to the requirement you have,” he said.

Hence, public policy and governments cannot assume that they can go on inviting and attracting this sort of investment without being prepared to undertake major initiatives which would allow these agencies of investment to come in, added the Prime Minister.

Anwar, who is also the Finance Minister also acknowledged that the progress the country made in attracting investments was not without its set of challenges and bottlenecks.

“We were also stuck with some bureaucratic rules and we have to be able to coordinate or bypass this. And then the system is not only the state governments, we have municipalities. So, how do you cut across all this?

“But, if we could do it with one particular major investor. Then, it would just spread out,” he explained in the 45-minute session.

On a question about how this could be done in the context of ASEAN, Anwar said it requires effective coordination.

“We have a bigger framework, somewhat similar incentives, and we complement each other because other countries have the expertise, but no water, and some have energy. So, we are keen to have this sort of collaboration more effectively.

“I am proud to say that within ASEAN, we are already talking about an ASEAN grid, that will help, for example, create or provide more energy,” said the Prime Minister.

Malaysia will be the ASEAN chair in 2025.

Source: Bernama

Malaysia stands ready to align policies to match new demands, industries – PM Anwar

As ASEAN Chair in 2025, Malaysia is committed to increasing regional integration and benefitting from stronger cooperation, including in the halal industry, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said through the latest memorandum of understanding, Malaysia will support Peru’s efforts to develop a halal certification framework, thereby strengthening Peru’s position in the rapidly growing global halal market in various industries. “I am confident that this cooperation will bring great economic benefits and open up new opportunities for the people of both countries,“ he said in a post on X today.

He said the Ministry of Investment, Trade and Industry (MITI) had held a roundtable meeting that brought together 17 Malaysian companies and 18 Peruvian companies, opening opportunities for cooperation in important sectors such as finance, renewable energy, halal, and logistics. “With a comprehensive range of free trade agreements (FTAs), Malaysia is not only the gateway to the ASEAN market, but also offers wider access to Peruvian companies to expand in the Asia-Pacific region,“ he added.

The minister is attending the 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week (AELW) 2024 in Lima, Peru.

Source: Bernama

Tengku Zafrul: Malaysia committed to regional integration including for halal industry

Small and medium enterprises (SMEs) play a crucial role in driving economic growth within the Asia-Pacific Economic Cooperation (APEC) region, particularly when it comes to fostering inclusive development, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said inclusive growth is not only a kind of growth that large companies and multinationals can enjoy, but it must also be equitable.

“(This is) why we need to get the involvement of SMEs and the youth, as well as the involvement of women enterprises,” he said during a recent interview with the Heat, a daily talk show under the China Global Television Network (CGTN) America.

Tengku Zafrul said that during the APEC summit this year, inclusive growth will be among the topics to be discussed to ensure that all segments of businesses can gain market access, for example, through digital and green platforms.

The interview was uploaded to the CGTN America YouTube Channel here today.

Tengku Zafrul said that 79 per cent of Malaysia’s trade was with APEC member economies last year.

He also cited the fact that 70 per cent of Malaysia’s working population is employed by SMEs, including women-owned enterprises and micro SMEs.

With Malaysia assuming ASEAN chairmanship next year, he said the country is planning to conclude the Digital Economic Framework Agreement, which will see e-commerce as one platform with streamlined guidelines, policies, and laws, enabling small companies to participate in payments, for example, and many more.

“So, this is similar for APEC economies. We need to make sure that even urban and non-urban areas are integrated in terms of access to markets.

“And I think it is important that this (inclusive growth) is being discussed because we are always talking about growth with large countries versus smaller countries, countries that are more developed versus less developed,” said Tengku Zafrul.

However, he stressed that at the same time, the grouping needs to look at the growth of countries, within regions, between big and small companies, and other enterprises like social enterprises and women’s enterprises.

Tengku Zafrul is currently in Lima, Peru, along with the Malaysian delegation led by Prime Minister Datuk Seri Anwar Ibrahim, who is on an official visit to the capital, attending the 31st APEC Economic Leaders’ Week from Tuesday.

Today, APEC member economies represent a population of around three billion people, nearly 30 per cent of the global population.

They constitute almost 60 per cent of the global gross domestic product and facilitate nearly 50 per cent of global trade.

Source: Bernama

SMEs play crucial role in driving growth in APEC economies, fostering inclusivity – Tengku Zafrul

Malaysia’s businesses must now adapt the US regulatory and environmental, social and governance (ESG) compliance standards to remain competitive in one of the world’s largest markets.

This necessity is underscored by Malaysia’s strong trade relationship with the US, which is characterised by a 19.8% trade surplus and robust export growth, highlighting the nation’s competitiveness, according to the American Malaysian Chamber of Commerce (Amcham Malaysia) chief executive officer Datuk Siobhan Das.

During her presentation on What does it take to export to the US and participate in the US Global value chains today?, Siobhan said the US remains a critical export destination for Malaysian goods, ranging from petroleum products to machinery and palm oil.

“However, evolving consumer expectations and new regulations such as California’s SB 253 mandate [Passed in October 2024] for emission disclosures, require Malaysian exporters to realign their operations.

“If your customer demands ESG requirements, it is incumbent on suppliers to either meet those compliance areas or opt out of the market,” she said at the Malaysia External Trade Development Corporation (Matrade) webinar entitled “Remain relevant with ESG or exit US market” held on Wednesday. 

She added that Malaysian businesses must understand their customers’ needs to succeed in the US supply chain.

Highlighting the importance of due diligence, Siobhan noted that compliance issues, such as forced labour concerns and the US Customs Border Protection’s enforcement measures, could severely impact trade.

“Malaysia’s reputation as a trusted trading partner depends on adhering to these requirements,” she said, urging companies to ensure transparency and traceability in their supply chains.

New US regulations, including the Green New Deal and stricter enforcement under acts such as the Foreign Corrupt Practices Act (FCPA) and the Lacey Act, pose additional challenges, she noted.

Siobhan said Malaysian exporters must also account for emerging tariffs and sanctions amid shifting geopolitical dynamics, particularly with the potential implications of a new US administration.

“Despite these challenges, Malaysia’s role in global supply chains remains significant.

“The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) provides Malaysian exporters a competitive edge, allowing them to tap the US market,” she said.

She, however, said businesses must avoid risks associated with transshipment practices and comply with country-of-origin rules.

“Compliance is not just about fulfilling regulatory requirements. It is also about protecting Malaysia’s reputation and ensuring continued trade success to the US,” Das added.

She also emphasised the importance of leveraging technology to enhance supply chain traceability and mitigate risks.

“As the US consumer market increasingly prioritises sustainability and ethical practices, Malaysian exporters must proactively address these expectations to remain competitive.

“The alignment with ESG principles not only boosts brand reputation but also attracts new business opportunities and mitigates regulatory risks,” she said.

Earlier, Matrade senior director Raja Badrulnizam Raja Kamalzaman said in his opening remarks that ESG is no longer a peripheral topic but has become integral to corporate operations across industries.

“Businesses that fail to adopt ESG practices risk losing market share and face regulatory backlash, which could ultimately lead to their exit from the US market,” he said.

He noted that compliance with sustainable practices such as utilising eco-friendly materials and minimising waste can significantly enhance the marketability of Malaysian exporters.

Source: Bernama

Malaysian businesses urged to prioritise ESG compliance to compete in US market

Continuous investment in infrastructure projects is helping Malaysia strengthen its position as a regional trade and investment hub while boosting global competitiveness.

Deputy Economy Minister Datuk Hanifah Hajar Taib said the government remains committed to infrastructure projects such as highways, ports, and airports, aiming to achieve a gross domestic product growth target of five to six per cent under the 12th Malaysia Plan (12MP).

“The availability of robust transport infrastructure facilitates the smooth movement of goods and people, contributing to public welfare and accelerating economic activities, including tourism, travel, and import and export,” she told the Dewan Rakyat in a question-and-answer session today.

However, Hanifah noted that project distribution remains constrained by budget and financial capacity, alongside considerations such as sustainability, urgency, criticality and public safety.

She was responding to a question from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) on key infrastructure plans to support Malaysia’s economic growth and competitiveness globally.

Hanifah added that the infrastructure plan also benefits underserved areas like rural regions in Sabah and Sarawak through enhanced basic infrastructure, increased mobility, and improved digital connectivity, optimising land use for the rural economy.

“Key indicators set under the 12MP Mid-Term Review for Sabah and Sarawak include a target of 98 per cent coverage for clean water access and 99 per cent for electricity access.

“Additional indicators are the construction and upgrading of 700 km of rural roads, new sites for digital infrastructure, and increased internet connectivity points in rural schools,” she added.

Source: Bernama

Malaysia ramps up infrastructure to strengthen global competitiveness