Malaysia has received recognition from the United States for its cooperation in facilitating investment in the country by aircraft manufacturer Boeing.

Prime Minister Datuk Seri Anwar Ibrahim in his speech during the Public-Private Partnership Master Plan 2030 (Pikas 2030) launch said the appreciation was conveyed by US Secretary of Commerce Gina Raimondo in a letter.

“Coincidentally, this morning, I received a letter from the US Secretary of Commerce expressing high appreciation for our cooperation, which has enabled them to invest through Boeing in Kedah.

“This is because they have confidence in our policies, even though there are occasional concerns about a slight shift in our foreign policy.

“I emphasised that our independent and sovereign foreign policy, like Malaysia’s, should remain free. Some refer to ‘centrality’ as the cornerstone of our foreign policy, taking a more pragmatic approach,” he said.

Anwar also said Malaysia was fortunate to receive greater recognition from foreign nations compared with before.

“While we are engaging with China due to its current strong capabilities and its recent developments with Russia in areas such as space, energy and nuclear technology, which are advancing rapidly, we continue to maintain strong ties with our traditional friends, including Asean, Europe and the US,” he said.

Previously, it was reported that Boeing had relaunched its manufacturing facility as Boeing Composites Malaysia which provides composite products and sub-assemblies for all of its commercial airplane models including the 737 MAX and 787 Dreamliner.

This comes after the aircraft manufacturer fully acquired Aerospace Composites Malaysia in December last year, a joint venture with Hexcel Corporation. The renamed facility is Boeing’s first wholly-owned manufacturing facility in Southeast Asia.

The site employs an all-Malaysian workforce of approximately 1,000 people.

As part of its initiative to recognise Malaysia’s growing capabilities in the sector, Boeing also announced a higher education grant of RM44,000 to the National Youth Skills Institute in Jitra, Kedah.

The grant aims to train 30 students in machining and fabrication technology, while also guiding them towards employment opportunities in the aerospace industry.

Source: NST

US praises Malaysian cooperation in facilitating Boeing’s investment

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia enjoys better international recognition now due to strategic cooperation with major powers such as China and Russia.

Anwar, who is also the finance minister, said the cooperation does not affect existing relations with Malaysia’s traditional trading partners, including Asean, Europe and the United States (US).

“Even though we are approaching China because of China’s capabilities and economic strength and updating relations with Russia because of Russia’s capabilities in several fields of technology (such as) aerospace and nuclear energy which is much faster, we remain friends with our traditional friends which include Asean, Europe and the United States,“ he added.

He said this when speaking at the launching ceremony of the Public-Private Cooperation Master Plan 2030 (PIKAS 2030) here today. The ceremony was also attended by Deputy Prime Minister Datuk Seri Fadillah Yusof, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Selangor Chief Minister Datuk Seri Amirudin Shari.

Anwar said recognition of the country continued to be strengthened when the United States, through a letter from Trade Secretary Gina M. Raimondo today, expressed appreciation for Malaysia’s cooperation that allowed them to invest through US aeroplane maker Boeing. “This (appreciation) is because they are confident in our policy capability even though sometimes, some are worried because there is a slight shift in terms of foreign policy,“ he said.

On Aug 29, Boeing renamed its manufacturing facility in Bukit Kayu Hitam, Kedah, as Boeing Composites Malaysia. It was reported that Boeing had fully purchased Aerospace Composites Malaysia Sdn Bhd, a joint venture with public industrial materials company Hexcel Corporation, in December 2023.

The facility provides composite products and sub-assemblies for all Boeing commercial aircraft models, including the 737 MAX and 787 Dreamliner, and is Boeing’s first wholly-owned manufacturing facility in Southeast Asia. Boeing employs about 1,000 people, who are all Malaysians, to work at the facility.

Anwar emphasised the concept of centrality as a main pillar of foreign policy that needs to be followed up with a pragmatic approach to ensure the focus is on national peace and security. He also highlighted the need to equip “our young people (with) skills, especially in some new disciplines including artificial intelligence, digital and energy transition.”

Source: Bernama

Malaysia enjoys better international recognition now due to strategic cooperation with China, Russia – PM Anwar

Sabah is determined to push the investment momentum from China and to ensure the state will remain an attractive destination for investments, said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.

He said Sabah’s economic ties with China are driven by strong trade, investment and collaborative projects across sectors.

“For the manufacturing sector, our state has received RM3.07 billion in investments from China to date, which have created 3,086 jobs. These investments involved solar glass manufacturing, silica and processing, food manufacturing, rubber, wood-based and plastic products.

“I have stressed from the onset that we are investor-friendly, and we will ease all hurdles to facilitate investments. In this respect, Sabah also looks forward to increased cooperation with China in green energy, manufacturing, high-technology agriculture, and smart city construction, among other areas, to promote mutual benefits and win-win partnerships,” he said.

“The cooperation between Malaysia and China has advanced significantly, with both countries continuously working together to promote mutual interests, and I am confident that this partnership will continue to flourish,” he said at the opening of the Seventh Global Longchuan Association Conference, the first to be hosted outside of China at the Sabah International Convention Centre, here on Sunday.

Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe delivered his speech.

The Chief Minister said the energy sector presents significant opportunities, and while oil and gas remain important revenue streams for Sabah, “we welcome investors to also explore the Blue Economy, solar and storage technologies, hydro, geothermal and carbon market opportunities.”

“I am pleased to know that we have participants of various backgrounds, including entrepreneurs, with us here today. We encourage you to learn more about Sabah and its investment potential and welcome all of you to invest here,” he said.

The Chief Minister said in addition to strong bilateral relations, the other aspect worth mentioning was the strong family ties the Longchuan clan has in common with Sabah.

“There is a very large Longchuan community here in Sabah with over 100,000 people of Longchuan origin.

Many of you have relatives here too, and I am sure that will make your visit to Sabah so much more meaningful.

“Thank you to Dr Wu Huiquan, the Global Longchuan chairman and his board members for choosing to host this conference in Sabah. Thank you too to Mr Chong Su Leong, president of the Malaysia Longchuan Association and your Central Committee members for inviting me to address this conference,” he said.

Source: Borneo Post

Sabah determined to push investment momentum from China – CM

United States ambassador to Malaysia Edgard D. Kagan said American investors view Malaysia as an attractive investment destination despite the two governments’ differing views on the Gaza conflict.

He said the crisis should not overshadow the countries’ strong relationship, which dates back 67 years.

“We understand Malaysians feel very strongly about the Gaza conflict, and are disappointed or unhappy with the US.

“My view is that Malaysians are disappointed and unhappy with what the US is or is not doing in Gaza, but that there is still a lot that we agree on,” he said in an exclusive interview with the New Straits Times.

Kagan said Boeing’s investment in its first manufacturing plant in Bukit Kayu Hitam here is a significant milestone in the US-Malaysia economic relationship.

“Boeing’s decision was driven by its appreciation for workforce quality and ability to do well in Malaysia.

“They’ve expanded production at this facility and moved up the value chain.

“To me, the significance of this is a sign that a world-class company is choosing to significantly increase its footprint in Malaysia.”

Kagan hoped to see more US aviation players follow Boeing’s move.

“I think one of the best things you can do to attract companies is to show that the companies that are here are doing well, that they’re happy, that they feel
that they have outstanding talent.

“I think that seeing that Boeing has decided that Malaysia is a good place to bet for the long term and to invest for the long term, that will make it easier to attract other companies.”

Kagan hoped the US-brokered ceasefire in Gaza, with the assistance of Qatar and Egypt, would bear fruit soon.

Source: NST

‘US investors keen on Malaysia despite Gaza war views’

Economic growth, an increase in investment, exports and job opportunities as well as continuous low inflation are among the fundamentals that will help Malaysia to move forward as a rapidly developing country, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

With these features in place, coupled with political stability, the government will then be able to focus on developing the country, he said.

“These are excellent features to have as we continue to develop from an economic point of view, and with a robust economy, the people’s social standing can then improve.

“We will then be able to focus on the existing political stability to continue to develop and improve the economy for the well-being of the people,” he told reporters after launching participants at the Duo Highway Challenge 2024 run here today.

He said this in response to the speech by Sultan Ibrahim, the King of Malaysia, in which His Majesty expressed his joy about the state of the Malaysian economy and the country’s improved trade performance.

His Majesty also hopes that the government will continue to work to stimulate the national economy,  create more job opportunities and raise the income and living standard of the people.

Sultan Ibrahim said this at the investiture ceremony during the conferment of awards, medals and honours in conjunction with His Majesty’s official birthday on Saturday.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said Malaysia is among the countries that recorded excellent economic growth despite the global economic uncertainty, as evidenced by 5.9 per cent gross domestic product (GDP) growth in the second quarter of 2024 against 4.2 per cent in the same period a year ago, he said. 

Source: Bernama

Fadillah: Malaysia has good fundamentals to continue economic growth

The government will continue to intensify efforts to ensure a stable country with a conducive and business-friendly ecosystem, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the government’s continuous measures to improve governance, fight corruption and focus on high-value investments, are increasingly successful in creating high-income jobs for more people.

“Thank God, the country continues to be in a better position. The country’s economy has shown strong growth with a rate of 5.9 per cent in the second quarter of 2024.

“Apart from that, the recent recovery of the Ringgit against the US dollar and other major currencies, together with the rapid rise of the FBM KLCI this year, also shows investor confidence. This is clear evidence that the policies implemented by the MADANI Government have yielded positive results, Alhamdulillah, “ he said, adding that the country is now one of the preferred destinations for global investment.

He said this while speaking at the Investiture Ceremony in conjunction with the official birthday celebration of the King of Malaysia, Sultan Ibrahim today.

Meanwhile, Anwar said the government realises that growth figures are meaningless if the results do not flow to the people.

Thus, he said the goal to be achieved through the MADANI Economy framework is a more equitable socio-economic society with people’s incomes increasing, reducing the cost of living and expanding the social safety net.

“His Majesty’s government will continue to work hard to increase access to quality education, health infrastructure and affordable housing so that the people can enjoy a more comfortable life,“ he said.

Representing the government and the common people, Anwar also congratulated the King of Malaysia in conjunction with his Official Birthday and prayed to Allah SWT that His Majesty and Her Majesty, Raja Zarith Sofiah, the Queen of Malaysia and the entire family be blessed with Allah SWT’s grace.

“Indeed, as a Constitutional Monarch, His Majesty’s role is very important in preserving the stability and harmony of the country. His Majesty is the umbrella of unity and the protector of the nation’s integrity.

“His Majesty’s decrees in advising the government, often reflect His Majesty’s wisdom and concern for the welfare of the common people,“ he said.

Anwar on behalf of the government and the people also prayed that the country under the reign of the King would continue to be blessed with grace and blessings, free from any calamity and remain peaceful and prosperous.

“May the bond of love between the King and the people remain intact from generation to generation. The government and the people are also requested to pledge their undivided loyalty to His Majesty,“ he said.

Sultan Ibrahim today attended the Investiture Ceremony of the 2024 Federal Awards and Honours at Istana Negara.

It was the first investiture ceremony of His Majesty as the King after he was installed as the King of Malaysia on July 20.

Also present at the ceremony was Her Majesty Raja Zarith Sofiah, Queen of Malaysia.

A total of 116 individuals received the 2024 Federal Awards in conjunction with the official birthday celebration in a ceremony which was broadcast live on national television stations.

Source: Bernama

Govt to continue intensifying measures to ensure nation is stable, business friendly – PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim’s two-day working visit here is a major boost for bilateral ties between Malaysia and Russia.

With several rounds of applause he received from the audience during his keynote address at the plenary session of the 9th Eastern Economic Forum (EEF) on Thursday, Anwar’s visit was undoubtedly, welcomed by the Russians.

Describing the visit as an important one to himself, Anwar, who is on his very first visit to Russia, said this trip has opened up more significant opportunities for the two countries to enhance bilateral cooperation.

He said the bilateral meeting with President Vladimir Putin was also fully utilised not only to enhance trade relations, but also government-to-government (G2G) cooperation, including in aerospace, advanced technology, energy transition, and modern agriculture.

Additionally, topics including the economy, research, education, as well as halal product development and the Islamic finance industry had also been discussed, said Anwar who is the Finance Minister.

Anwar’s presence in Vladivostok to participate in the plenary session of the 9th EEF was at the invitation of the Russian President.

The EEF is an annual economic forum held in Russia’s Far East region, since 2015, to promote investment and economic development as well as international cooperation in the region.

Themed “Combining Strength to Create New Potential”, this year’s forum was attended by high-level foreign and local dignitaries, policymakers, academics, and captains of industries.

The Prime Minister arrived here on Sept 4, accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Aziz, Menteri Besar Selangor Datuk Seri Amirudin Shari, Deputy Economy Minister Datuk Hanifah Hajar Taib, as well as Agriculture and Food Security Deputy Minister Datuk Arthur Joseph Kurup and senior government officials.

Indeed, a wide range of issues were discussed with the host, including Malaysia’s participation in BRICS, ASEAN chairmanship in 2025, Israel’s indiscriminate attacks on civilians in Palestine, and the call for direct flights connecting the two nations.

On BRICS, Anwar said Malaysia is among the countries prioritised for potential BRICS (Brazil, Russia, India, China and South Africa) membership, and Putin had personally extended an invitation to the Prime Minister to participate in the forthcoming BRICS Summit in Kazan, Russia, slated for Oct 22 to 24.

Anwar reassured that joining BRICS would not only allow Malaysia to benefit from the Global South economies but also enable the nation to share its expertise, especially due to its position as a semiconductor hub in the region.

On July 28, Anwar reportedly said that Malaysia had sent an application to Russia to join BRICS and Russian Foreign Minister Sergey Lavrov, who paid a courtesy call on Anwar during his visit to Malaysia that day, also gave assurance that Russia would extend its support to Malaysia’s aspiration to join the intergovernmental organisation.

“Malaysia has sent a letter of application to join the BRICS group to Russia as the BRICS chairman, besides expressing openness to participate as a member country or strategic partner,” he said.

Earlier on June 18, Anwar confirmed Malaysia’s intention to join BRICS to Brazilian President Luiz Inacio Lula da Silva.

BRICS was established in 2009 as a cooperation platform for the largest developing economies, uniting Brazil, Russia, India and China. South Africa joined the group in 2010.

On Jan 1 this year, BRICS expanded its membership to include Egypt, Ethiopia, Iran and the United Arab Emirates.

On Malaysia’s chairmanship of ASEAN next year, Anwar has also extended an invitation to Putin to attend the 2025 ASEAN Summit.

During their meeting, Anwar also assured Putin that, as ASEAN chairman, Malaysia will strive to boost the regional grouping’s collaboration with Russia in all fields.

On the human rights issue, particularly the development in Palestine and Ukraine, Anwar said Malaysia and Russia agreed to demand that Israel stop the violent and cruel attacks on Gaza immediately.

Anwar also urged the world to oppose all forms of colonisation.

While assuring that Malaysia is a friendly country without being dictated by any power, Anwar said Malaysia and Russia should consider introducing direct flights to increase the passage of tourists between the two countries.

According to the Prime Minister, Malaysia received over 100,000 tourist arrivals from Russia last year, and there is a potential to boost Russian tourist arrivals to Malaysia with more flight connections.

Currently, only transit flights via China are available to connect the two countries.

Meanwhile, on the Russian side, Putin reportedly said there are ample opportunities to expand trade relations with Malaysia.

Kremlin.ru reported that Putin also said Russia is expected to find new points of contact with ASEAN when Malaysia becomes ASEAN chairman in 2025.

In 2023, Russia was Malaysia’s 8th largest trading partner among European countries, with total bilateral trade increased by 15.6 per cent year-on-year (y-o-y) to RM14.22 billion (US$3.1 billion), compared to RM12.3 billion (US$2.79 billion) recorded in 2022.

Source: Bernama

PM Anwar’s working visit to Vladivostok a major boost to Malaysia- Russia ties

Malaysia will continue to strengthen economic cooperation with Brazil, particularly in the semiconductor and energy sectors, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said this after chairing a meeting with the Brazilian Ambassador to Malaysia Ary Quintella to discuss efforts to strengthen the Malaysia-Brazil economic cooperation.

He said the meeting was a preparation for Prime Minister Datuk Seri Anwar Ibrahim’s working visit to Brazil this November.

“During the meeting, the semiconductor sector became a priority for cooperation between Malaysia and Brazil.

“Apart from semiconductors, the two countries also have the opportunity to expand cooperation, especially in the energy sector,” he said in a statement on Friday.

Liew also expressed pride in Malaysian companies such as Petroliam Nasional Bhd (Petronas), Yinson Holdings Bhd (KL:YINSON) and Sapura Energy Bhd (KL:SAPNRG), which have been established in Brazil for a long time and have achieved success at the global level.

“The next step is to explore opportunities for joint research and development in the energy sector, followed by green energy transition,” he said.

Source: Bernama

Liew: Malaysia to continue boosting economic cooperation with Brazil, particularly in semicon, energy sectors

Investments created more than 6,600 jobs within that period

A TOTAL of RM31.38bil has been invested in Penang through the Northern Corridor Implementation Authority (NCIA) with cooperation of the Malaysian Investment Development Board (Mida).

NCIA chief executive Mohamad Haris Kader Sultan said the sum was achieved within the first six months of this year.

He said it was encouraging and evidence of investors’ confidence in the long-term prospects offered by the Northern Corridor Economic Region (NCER) and Penang.

“Investments included focus sectors in the NCER Strategic Development Plan such as the high-value manufacturing sector, advanced services and modern agriculture, which in turn created more than 6,600 job opportunities within that period.

“This good performance will be a catalyst for NCER to continue to drive investment and business ecosystem development for the second half of this year by taking advantage of NCER’s regional advantages, particularly in the electrical and electronic (E&E) and semiconductor sectors,” he said in a statement.

Mohamad Haris said the NCER Technology Innovation Centre (NTIC) building in Bayan Lepas had been completed and would be operational soon.

He said it would directly boost innovation, research and development (R&D) activities as well as increase the value chain for small and medium enterprises (SMEs) to further strengthen Penang’s position as a technology and innovation hub in the region.

“During the first half of 2024, 16 Penang SME companies received matching grants to improve the value chain under the NTIC programme through the Centre of Excellence (CoE) and Technology and Innovation (T&I) initiatives.

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

The NTIC programme under NCER’s Technology Valley initiative 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.

Source: The Star

RM31.38bil invested in Penang in six months

Malaysia has demonstrated its resilience and continued appeal to investors amid the global economic uncertainty by attracting a substantial 18 per cent year-on-year increase in approved investments to RM160 billion across the services, manufacturing, and primary sectors from January to June 2024 (1H 2024).

This surge in investment was backed by a substantial 2,948 investment projects, which are expected to create 79,187 new job opportunities.

“Malaysia’s strong investment performance of RM160 billion, representing an 18 per cent year-on-year increase in the first half of 2024 is a testament to our commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth,” Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Zafrul Aziz said today in a statement.

He said Asean is forecast to grow at 4.6 per cent in 2024 and 4.7 per cent in 2025 on solid improvement in both domestic and external demand, and Malaysia is determined to capture this growth.

“The 1H 2024 approved investment figures reflect how investors appreciate Malaysia’s clear policies that provide a conducive landscape for companies to thrive. Driven by our robust frameworks, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy and the Green Investment Strategy, more and more global businesses have begun to recognise Malaysia’s vast potential,” he added.

“MITI and the Malaysian Investment Development Authority (MIDA) will continue to market Malaysia’s increasing appeal as a regional manufacturing or services hub to attract high-quality investments and drive sustainable economic growth while ensuring more business opportunities for our SMEs and higher-skilled jobs for Malaysians,” he said.

MITI said domestic investments (DI) took the lead in 1H 2024, making up a significant 53.4 per cent of the total approved investments, valued at RM85.4 billion. “This is a clear sign of domestic businesses’ continued growth and confidence in the country’s economic policies. In contrast, foreign investments (FI) accounted for 46.6 per cent of the total approved investments, worth RM74.6 billion.”

It noted that while both domestic investment and foreign investment play an important role in supporting Malaysia’s economy, the marked increase in domestic investment’s contribution to the country’s growth is a clear indication of local businesses’ confidence.

The top five states that attracted the most investment in Malaysia are Kuala Lumpur (RM37.6 billion), Selangor (RM35.0 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), and Johor (RM12.9 billion).

A stable MADANI government and a robust business-friendly environment are among the key value propositions for Malaysia to continuously attract foreign investments.

Austria led the approved investments with RM30.1 billion, followed by Singapore with RM16.5 billion, China (RM9.8 billion), the Netherlands (RM4 billion), and Taiwan (RM2.4 billion).

Malaysia’s manufacturing sector has emerged as a bright spot in the country’s economic landscape, attracting RM60.1 billion in approved investments in the first half of 2024. This represented a 34.1 per cent increase from the RM44.9 billion recorded in the same period last year, indicating a strong rebound in investor confidence, said the ministry.

Electrical and electronics (E&E) is the major industry underpinning Malaysia’s manufacturing economic growth with approved investments of RM36.9 billion.

Source: Bernama

Services, manufacturing contribute bulk of RM160 billion investments in first half of 2024 – Tengku Zafrul

New Zealand Prime Minister Christopher Luxon concluded his dynamic two-day official visit to Malaysia from Sept 1 to 3, during which he not only immersed himself in official business but also in the vibrant culture, historical heritage, and local cuisine of the Southeast Asian nation.

Unlike the official visits of previous foreign leaders, Luxon’s visit was something truly unique.

Luxon’s engagement with the public while in Malaysia drew attention even from Tesla CEO Elon Musk, who remarked on Luxon’s X platform update, saying, “Have to say I like the new NZ PM. Good energy and talks directly to the public. This is the way!”

From touring iconic sites in Kuala Lumpur to engaging with local entrepreneurs and renowned influencer Khairul Aming, Luxon’s visit underscored Malaysia’s strategic significance to New Zealand’s future in Southeast Asia.

In a 51-minute video posted on his X account, Luxon said the trip provided valuable insights into opportunities for collaboration between the two countries.

He highlighted the importance of Southeast Asia, particularly Malaysia, as a key region for New Zealand’s economic and strategic interests.

“Nearly 70 years on, Malaysia is still growing and looking to the future. It’s been a massive two days here, seeing great Kiwi businesses like Skyline Luge and Jump Jam absolutely flourishing in this part of the world.

“Malaysia, along with the rest of Southeast Asia, has so much potential for New Zealand, whether it’s trade, defence or people-to-people links. It is vital that we are connecting and building our relationships here,” he said in the video.

The Prime Minister also stressed the necessity of New Zealand’s active engagement with dynamic international markets to enhance its domestic economy.

“As I often say, New Zealand doesn’t get wealthier by selling things to each other. We need to be out in the world, hustling and trading with dynamic markets like this.

“The more successful we are abroad, the stronger our economy is back at home, with more investment, higher incomes, and better public services like health and education,“ he said, after meeting with prominent Malaysian entrepreneur and influencer, Khairul Aming.

Meanwhile, Khairul Aming, renowned for his culinary content and business acumen, welcomed the Prime Minister and expressed his hopes for the continued success of bilateral relations between Malaysia and New Zealand.

“It’s an honour to have Prime Minister Luxon here. I hope this visit paves the way for more collaborations between our two countries,” Khairul Aming shared on his social media platforms, highlighting the potential for cultural and business exchanges.

Khairul Aming mentioned that the meeting, held at the restaurant Hidang KL, was a token of appreciation from New Zealand for his recent visit to the country to produce cooking videos.

The culinary sensation introduced Luxon to traditional Malaysian breakfast dishes, including nasi lemak, roti jala, and teh tarik.

The Prime Minister’s itinerary also included meetings with local business leaders and government officials, where he emphasised the importance of mutual investments.

On the business front, BERNAMA reported a significant outcome of Luxon’s visit — an agreement to explore joint ventures in green technology and sustainable development.

During the visit, both nations expressed a commitment to promoting sustainability and addressing global environmental challenges through these ventures.

“New Zealand and Malaysia share a common vision for a sustainable future, and I am excited about the possibilities that lie ahead.

“The connections we’ve made here are invaluable, and I am confident that this visit will mark the beginning of a new chapter in New Zealand-Malaysia relations,” he said.

Luxon’s first visit to Malaysia since taking office in November 2023 has set the stage for enhanced collaboration between the two nations, with both sides looking forward to a future of shared growth and prosperity.

In 2023, New Zealand was Malaysia’s 28th largest trading partner, 22nd largest export destination, and 27th largest source of imports among countries in the Oceania region, with the total trade between Malaysia and New Zealand amounting to RM11.56 billion (US$2.54 billion).

Source: Bernama

New Zealand PM hails Malaysia’s potential, strengthens NZ-Malaysia relations

Domestic investments (DI) took the lead for the first half of 2024 (1H24), making up a significant 53.4 per cent or RM85.4 billion, of the total approved investments of RM160 billion for the period.

Malaysian Investment Development Authority (MIDA) said this reflected domestic businesses’ continued growth and confidence in the country’s economic policies.

In contrast, foreign investments (FI) accounted for 46.6 per cent of the total approved investments, worth RM74.6 billion.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia’s strong investment performance of RM160 billion, representing an 18 per cent year-on-year (YoY) increase in 1H24, is a testament to MITI’s commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth. 

“ASEAN is forecast to grow at 4.6 per cent in 2024 and 4.7 per cent in 2025 on solid improvement in both domestic and external demand, and Malaysia is determined to capture this growth. 

“The 1H24 approved investment figures reflect how investors appreciate Malaysia’s clear policies that provide a conducive landscape for companies to thrive. Driven by our robust frameworks, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy, and the Green Investment Strategy, more and more global businesses have begun to recognise Malaysia’s vast potential,” he said in a statement. 

The top five states that attracted the most investment in Malaysia are Kuala Lumpur (RM37.6 billion), Selangor (RM35.0 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), and Johor (RM12.9 billion).

In terms of foreign investments. Austria led the approved investments with RM30.1 billion, followed by Singapore with RM16.5 billion, the People’s Republic of China (PRC) with RM9.8 billion, the Netherlands with RM4.0 billion, and Taiwan with RM2.4 billion.

Sectors aligned with the National Investment Aspirations (NIA) brought in RM81.6 billion, representing 51.0 per cent of total approved investments from 562 projects, set to create 35,780 jobs. 

Under the stewardship of MITI and MIDA, 42.0 per cent of the total approved investments, valued at RM67.2 billion from 978 approved projects, will create 35,499 new job opportunities.

The services sector accounted for a substantial RM97.2 billion, or 60.7 per cent of the total approvals. It is expected to create 45,249 new jobs.

The growth was led by domestic investments, which made up 72.5 per cent of the total approvals in the services sector at RM70.5 billion. 

Among the notable ventures in the services sector include Asiabina Solar Sdn Bhd, which is investing RM200.4 million in a 50 MW Large Scale Solar (LSS) Project in Parit Buntar, Perak, as part of its expansion into the renewable energy sector.

The manufacturing sector attracted RM60.1 billion in approved investments in the period, representing a significant 34.1 per cent increase from the RM44.9 billion recorded in the same period last year. 

The approved investments are spread across 519 projects, poised to generate an estimated 33,887 job opportunities, with 80.0 per cent of the jobs (27,121) reserved for Malaysians.

FI contributed RM47.6 billion, or 79.2 per cent while DI accounted for a respectable RM12.5 billion, or 20.8 per cent. 

Electrical and electronics (E&E) is the major industry underpinning Malaysia’s manufacturing economic growth, with approved investments of RM36.9 billion. 

Meanwhile, MITI and MIDA have executed 11 high-level overseas investment missions to key countries such as Germany, France, Australia, Italy, Singapore, India, and Japan. 

As of August 31, MIDA is actively pursuing 1,562 proposed projects worth RM54.8 billion, comprising 1,493 projects in the services sector (RM44.8 billion) and 69 projects in the manufacturing sector (RM10.1 billion). 

While negotiations are ongoing between MIDA and prospect investors for high-potential leads totalling RM53.8 billion.

Meanwhile, from 2021 to June 2024, the National Investment Committee (NCI) approved 2,905 manufacturing projects, of which 76.6 per cent or 2,224 projects, have been implemented, including those in production, factory construction, or machinery/equipment installation. 

This is followed by 21.7 per cent in the planning stage, covering projects in planning, site selection, and discussions with developers and consultants. Only 1.7 per cent of the projects remain unimplemented.

Source: NST

Malaysia’s clear policies led to RM160bil in approved investments in first half of 2024: Tengku Zafrul

Approved investment inflows into the country from January to June 2024 increased to RM160 billion, representing an 18% growth compared to the same period last year, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that these investments involved nearly 3,000 new projects that will create over 79,000 job opportunities for Malaysians.

“This level of investment has been achieved with the cooperation of all agencies and ministries, such as the Ministry of Investment, Trade and Industry (Miti) and the Ministry of Finance, as well as departments abroad like the Malaysian Investment Development Authority (Mida),” he said in his speech at the 30th anniversary celebration of Khazanah Nasional Bhd here, Tuesday.

Meanwhile, Anwar also criticised previous political decisions that lacked transparency, which gave opportunities for several cronies to destroy a company, particularly companies that are symbols and pride of the nation, such as Malaysia Airlines.

“Due to these mistakes, the company remains a burden to us until day. Do not erase that historical fact. The decisions were made with the intention of protecting the interests of a few cronies and sidelining the interests of the nation and the people,” he said.

However, the Prime Minister said that efforts to restore the national airline have been initiated by Khazanah Nasional.

“I congratulate Khazanah. But it takes time. For the government, almost every week in the Cabinet meetings, we discuss recovery and reforms; how to help save the national institutions.

“But believe it, from the government’s perspective, I have told Khazanah and Malaysia Airlines that we remain completely committed to ensuring the success of the airline because it is our national airline, and it has to come back to perform,” he said.

Anwar also urged the public not to discuss only the weaknesses, as there are dozens other undeniable successes, including ventures abroad — such as Malaysia Airports Holdings Bhd (MAHB), which owns the Istanbul Sabiha Göçken International Airport.

“In my discussions with Turkish President Tayyip Erdoğan, he expressed his confidence in MAHB’s ability to manage and operate the important airport in Istanbul. This shows the capabilities of companies under Khazanah’s management,” he said.

Hence, he hoped that these unsettling news stories can be a lesson so that political leaders especially do not interfere in the business and trade matters including companies under Khazanah’s stable.

“What I’m doing in Khazanah’s board meetings is setting the policies and priorities to remind that development should emphasise the value of fairness,” he added.

Source: Bernama

Anwar: Approved investment inflows into Malaysia up 18% to RM160b from Jan-June 2024

Johor recorded RM753 billion in trade value last year, Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said, adding that the figure was 29% of the country’s total trade.

“This achievement is not merely a statistic but rather a testament to the importance of Johor and the important role it plays in Malaysia’s economic growth.Johor is committed to creating an environment that supports business growth and investment. We will continue to improve the infrastructure and simplify the legislative process,” he said at a press conference after officiating the opening ceremony of Greif Malaysia (Pasir Gudang) here today.

Also present were Greif Inc president and CEO Ole Rosgaard and Invest Johor CEO Natazha Harris.

Meanwhile, Lee said the implementation of the Johor-Singapore Special Economic Zone initiative will further increase the commercial value of the investment sector in the state.

“The unique collaboration between Malaysia and Singapore through Johor aims to stimulate economic growth, innovation and cross-border trade between the two countries.

“I believe this initiative will also benefit foreign investment businesses operating in the state,” he said.

Regarding the opening of Greif Malaysia, Lee said the US-based company has made an investment worth RM50 million in Pasir Gudang by providing 150 high-skilled job opportunities to the locals.

Greif is a packaging product manufacturing company that has production facilities in three Southeast Asian countries namely Malaysia, Singapore and Vietnam.

Its products include industrial packaging, steel drums, plastic drums and intermediate bulk containers.

Source: Bernama

Johor registers RM753 billion trade value in 2023

The recent official visit of Prime Minister Datuk Seri Anwar Ibrahim to India has been hailed as a significant milestone in enhancing the economic and strategic partnership between the two nations.

Consortium of Indian Industries in Malaysia (CIIM) chairman Datuk Umang Sharma expressed his enthusiasm for the outcomes of the three-day official visit from August 19-21, particularly the elevation of bilateral relations to a “Comprehensive Strategic Partnership”.

He said this new level of cooperation promises increased collaboration in emerging sectors such as semiconductors, fintech, renewable energy and start-ups.

“We are optimistic about the potential for increased trade and investment, benefiting industries and fostering growth in both nations. Malaysian businesses will have several new opportunities in India due to the strengthened partnership between the two countries,” he said in a statement made available to Bernama.

Highlighting key areas of collaboration, Sharma pointed to the digital economy, noting the expected growth in opportunities within Information Technology 2.0, including artificial intelligence (AI), the Internet of Things and cloud computing.

He said Fintech collaborations are also anticipated to expand under the new partnership.

“Already, Eros Group of India has pledged to invest US$1 billion (US$1=RM4.35) to develop an AI park and movie studio in Malaysia. This is a very good start, and we expect several Bollywood movies to be shot in this new studio,” he added.

Sharma also emphasised the importance of small and medium-sized enterprises (SMEs) in the Malaysia-India economic relationship.

While acknowledging the revival of the Malaysia-India CEO’s Forum, he advocated for a separate CEO’s forum dedicated to SMEs, highlighting the need for deeper SME engagement from both countries to foster long-term, tangible trade and investment growth.

Sharma said Malaysia’s expertise in semiconductors and electronics is seen as aligning well with India’s growing market, offering opportunities for technological collaboration between companies from both nations.

He added that Anwar’s visit also led to the establishment of the Malaysia-India Digital Council and the India-Malaysia Start-up Bridge, initiatives expected to facilitate smoother business operations and open new markets for Malaysian enterprises in India.

Sharma noted the potential in the tourism sector, with annual Indian visitors to Malaysia expected to reach one million in the near future, adding that the likely extension of visa-free entry for Indian tourists into Malaysia presents immense opportunities for the country to upgrade its tourist sites and facilities.

“To fully capitalise on this opportunity, we need to increase flight frequency and introduce new routes from different Indian cities, allowing tourists from all over India to easily visit Malaysia,” he said.

Source: Bernama

Indian industry group hails strengthened Malaysia-India ties following Anwar’s visit

The New Zealand Malaysia Business Association (NZMBA) and the Singapore Business Association New Zealand have signed a memorandum of understanding (MoU) with the Auckland Business Chamber to enhance economic cooperation among New Zealand, Malaysia, and Singapore.

The MoU, inked recently at the Auckland Business Chamber, New Zealand’s largest business network, aims to boost economic collaboration between the three countries, focusing on trade, investment, and business networking.

It is expected to leverage the strengths of each nation to create a robust framework for sustainable economic growth.

Malaysian High Commissioner to New Zealand, Mazita Marzuki, said this MoU opens up new avenues for collaboration, particularly in the agriculture sector, which is of mutual interest.

“As Malaysia prepares to chair Asean in 2025, we are committed to fostering a vibrant economy and strengthening regional cooperation,” she said in a statement made available to Bernama.

She also highlighted the significance of the official visit of New Zealand Prime Minister Christopher Luxon to Malaysia from September 1-3, as both countries enjoy warm diplomatic ties spanning over 67 years.

Chief executive officer of the Auckland Business Chamber and former National Party leader of New Zealand, Simon Bridges, said New Zealand has always valued its relationships with Malaysia and Singapore.

“This MoU is a testament to our commitment to deepening these ties and exploring new avenues for economic cooperation,” he said at the signing event, which was also attended by Singapore High Commissioner to New Zealand, William Tan.

Meanwhile, NZMBA president Dave Ananth said the MoU acknowledges the strong existing relations between the countries and sets the stage for greater economic collaboration.

“I am hopeful it will lead to more trade and investment opportunities between New Zealand and Malaysia,” he said.

Dave also highlighted the potential for increased business exchanges and the sharing of expertise among the three nations.

The agreement is expected to significantly impact the economies of all three countries by enhancing market access, reducing trade barriers, and encouraging the exchange of knowledge and technology.

Bilateral trade between New Zealand and Malaysia has been rising, with 2023 seeing significant trade volumes.

Malaysia remains one of New Zealand’s key trading partners in South-east Asia, with exchanges including agricultural products, manufactured goods, and technological services.

Source: Bernama

Malaysia, New Zealand and Singapore ink MoU to supercharge economic cooperation

Negri Sembilan (NS) is on the right track towards becoming a developed state after recording an encouraging growth in its Gross Domestic Product (GDP).

A 1.8 per cent GDP growth was recorded last year, compared with 5.6 per cent the previous year.

Menteri Besar Datuk Seri Aminuddin Harun said despite facing a challenging global economic environment, NS was able to achieve positive GDP growth.

He said the services sector was the main contributor with a strong performance of 4.5 per cent, offsetting the moderate growth of the manufacturing sector at 1.2 per cent, in addition to the 4.9 per cent contraction in the agricultural sector.

“The good performance of the services sector was supported by the increase in tourist activity, as Negri Sembilan recorded a significant rise in domestic tourist arrivals in 2023 with an annual growth of 30.2 per cent, jumping to 15 million tourists, compared with 11.5 million in 2022.

“Among the large-scale activities organised was the NS Fest held from July 27 until Aug 3, which recorded 969,000 visitors throughout the eight days of the programme.

“In line with Visit Negri Sembilan Year 2026, the state government will increase the development of tourism products based on the determination of tourism segments,” he said.

To strengthen productivity and drive the state’s progress, Aminuddin said the state government is focusing on high-tech industries involving seven clusters.

These are semiconductors, aerospace, maritime, driverless vehicles, electric vehicles, smart cities and oil and gas logistics hubs.

Commenting on the inflation rate, the Menteri Besar said NS recorded a moderate rate last year at two per cent, compared with 2.8 per cent in 2022.

This followed lower global commodity prices, gradually recovering supply disruptions, price controls and subsidies for selected goods.

In addition, the Labor Force Participation Rate (KPTB) in the state increased by one percentage point to 66.1 per cent in 2023, compared with 65.1 per cent in 2022, with the people’s monthly income also improving.

Regarding investment, Aminuddin said NS recorded the highest investment of RM10.1 billion for 2023.

According to him, this figure exceeded what was targeted, and even exceeded the highest ever recorded in 2022, which was RM8.9 billion.

“Manufacturing is the most important sector because it recorded 75 per cent, equivalent to RM7.6 billion, while the services sector contributed 25 per cent (RM2.5 billion),” he said.

In terms of foreign investment, Aminuddin said the state received RM6.04 billion for 2023, with the largest investment from Sandvik Equipment Sdn Bhd from Sweden for the manufacturing of battery packs in Sendayan.

Similarly, the value of domestic investment also recorded a positive performance of RM4.05 billion for the manufacturing and selected services sectors.

Aminuddin said the state government is focusing on high-tech projects and intends to open more strategic industrial areas.

The state government is also providing investment incentives, including setting a premium payment discount rate of 15 per cent for 30 days from the date of receiving Notice 5A or 7G from the District Land Office beginning Jan 1 this year.

Meanwhile, the Menteri Besar said a study on the happiness index in 2024 showed that all residents of Negri Sembilan were satisfied with all the components which were evaluated, giving the state a score of 4.75.

“Port Dickson was awarded one of the 10 Happiest Cities in Malaysia while Tampin received the Happiest Community Town award,” he said, adding that the state government is channelling various assistance to all disadvantaged and needy community groups in the state.

“The assistance and initiatives provided are among the government’s continuous efforts and commitment to improving the living standards of the people of this state,” Aminuddin said.

Source: NST

Negri Sembilan on track to achieve developed state status

Investment landscape remains robust with positive outlook in short to medium term

MALAYSIA is poised to record absolute annual foreign direct investment (FDI) inflows of more than RM50 billion by 2030, according to UOB Global Economics and Markets Research.

This is supported by the robust FDI performance so far this year, with Malaysia having secured US$3.1 billion in FDI inflows alone in the first half, or a 17.9 per cent increase from US$2.6 billion recorded a year ago.

UOB Research said in the absence of any unexpected economic shocks, it expected FDI inflows to sustain the average longterm 15-year growth trend of 3.6 per cent per annum in the medium term, or around RM51.6 billion annually by 2030.

It added that despite a challenging and complex global environment, Malaysia’s investment landscape remained robust with a positive FDI outlook in the short to medium term.

The Malaysia Investment Development Authority approved almost RM1 trillion worth of investments between 2021 and March this year, with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments at RM461.8 billion (46.6 per cent) and primary sector investments totalling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, about 21.1 per cent in the planning phase, and the balance are unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31.

UOB Research said various catalytic projects identified in national masterplans, such as the New Industrial Master Plan 2030, National Energy Transition Roadmap and Midterm Review of 12th Malaysia Plan, would further enhance opportunities for investments in Malaysia’s high-growth, high-value sectors.

The planned Johor-Singapore Special Economic Zone and Malaysia’s five regional economic corridors will also work to bring in more investments.

To date, Malaysia has also implemented 16 free trade agreements (seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership, Indo-Pacific Economic Framework, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

However, it cautioned that the possibility of expanded universal United States tariffs, export controls and secondary sanctions to countries that were part of the China “Plus One” strategy remained a key risk, particularly for Malaysia and other Asean members that had benefited from diverted “China-US” flows.

The United Nations Trade and Development, in its World Investment Report 2024, also said the global environment for international investment “remains challenging” due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting multinational enterprises to stay cautious on overseas expansion.

Source: NST

‘Annual FDI set to hit RM50B by 2030’

Since gaining independence in 1957, Malaysia has undergone a remarkable economic transformation, evolving from a primarily agriculture-based economy to a diversified and resilient one.

This journey of growth and development is a testament to strategic planning, adaptability, and visionary leadership, laying the foundation for sustained prosperity.

Malaysia’s economic trajectory has not only ensured continued progress but has also positioned the country for a future focused on sustainability and innovation.

The Early Years: Agriculture and Commodities

In the years following independence, Malaysia’s economy was predominantly reliant on agriculture and commodities.

Rubber and tin were the backbone of the economy, with the former being the country’s largest export.

In fact, by the 1960s, Malaysia was the world’s leading producer of both rubber and tin.

The reliance on these commodities, however, made the economy vulnerable to global price fluctuations, a risk that the government quickly recognised.

As Malaysia embarked on its nation-building journey, there was an urgent need to diversify the economy to ensure long-term sustainability and resilience.

This marked the beginning of a series of strategic initiatives aimed at transforming the economic landscape.

The Shift to Manufacturing: The 1970s and Beyond

The 1970s marked a pivotal era in Malaysia’s economic transformation.

Recognising the limitations of an agriculture-based economy, the government, under the New Economic Policy (NEP) launched in 1971, began to shift the economic focus towards industrialisation.

The NEP aimed to reduce poverty and restructure society to eliminate the identification of race with economic function, which had been a source of tension.

This period saw the establishment of free trade zones, attracting foreign direct investment (FDI) and promoting export-oriented industrialisation.

The government also invested in infrastructure, such as roads, ports, and industrial estates, to support the burgeoning manufacturing sector.

Sunway University economics professor Dr Yeah Kim Leng noted that to reduce its high dependency on the agricultural sector, particularly plantation export commodities in the 1960s, Malaysia embarked on an FDI-led electronics and light manufacturing export development strategy in the early 1970s.

This was followed by a government-led heavy industries import substitution strategy in the 1980s.

“In the decades that follow, Malaysia benefitted from the rise in global trade and investment.

“The manufacturing industries integrated into regional production networks and global supply chains that expanded with rising globalisation.

“Led largely by FDI inflows, the shift up the value chain was however impeded by low domestic research and development (R&D) investment, weak technology transfers, inadequate indigenous technological capabilities and skills shortages,” he told Business Times.

Yeah also pointed out that the decade following the 1998 Asian Financial Crisis was marked by low private investment, which hovered around 10 per cent to 12 per cent of gross domestic product (GDP) compared to above 30 per cent before the financial crisis.

However, he noted that the surge in investment over the last two years has raised private investment-to-GDP levels to 16 per cent to 18 per cent, closer to the desired 20 per cent to 25 per cent level for a vibrant and fast-growing economy.

By the late 1970s and early 1980s, Malaysia had become a significant player in the global electronics and electrical products market.

The Penang Free Trade Zone (FTZ), established in 1972, became a hub for multinational corporations like Intel and Hewlett-Packard, propelling the nation into the global manufacturing arena.

IDEAS Malaysia economist and assistant research manager Doris Liew said Malaysia’s industrialisation in the 1980s was significantly driven by the “Look East Policy” and the Penang FTZ played a pivotal role in attracting FDI.

She noted that over the decades, Malaysia has established itself as  a prominent hub in the manufacturing sector, encompassing electrical and electronics (E&E), automobiles, chemicals, and appliances.

“This strong manufacturing ecosystem positions Malaysia advantageously in the face of increasing global demand for high-tech manufacturing, including artificial intelligence (AI), wafer fabrication, and energy transition-heavy industries like battery processing.

“Maintaining an open trade policy and a business-friendly environment will be crucial to sustaining Malaysia’s competitiveness in these sectors,” she said.

Doris pointed out that in the north, Kulim has already benefited from Penang’s spillover effects and will continue to see such benefits.

“Meanwhile, in the central region, the Selangor integrated circuit (IC) design park targets high-value manufacturing, such as IC chip design.

“In the south, the Singapore-Johor special economic zone (SEZ) offers the potential to benefit from the strong spillover from Singapore and establish a third manufacturing zone,” she said.

The success of the manufacturing sector not only reduced Malaysia’s dependence on agriculture but also contributed significantly to employment, income growth, and urbanisation.

By the 1990s, manufacturing accounted for nearly 30 per cent of the country’s GDP, with exports of manufactured goods driving economic growth.

The Rise of the Service Sector: 1990s to Present

As Malaysia continued its economic journey, the 1990s heralded another shift—this time towards the service sector.

Recognising the need to further diversify and add value to the economy, the government began promoting services such as finance, tourism, education, and information and communication technology (ICT).

The Multimedia Super Corridor (MSC), launched in 1996, was a significant milestone in this transition.

The MSC was envisioned as a high-tech hub, attracting global technology companies and fostering local innovation.

This initiative marked Malaysia’s entry into the digital economy, positioning the country as a leader in ICT in the region.

The financial services sector also saw rapid growth, with Kuala Lumpur emerging as a regional financial centre.

The development of Islamic finance further solidified Malaysia’s reputation in the global financial markets, with the country becoming a leading centre for Islamic banking and sukuk issuance.

Looking Forward: Malaysia’s Future Economy

As Malaysia charts its course into the future, several key themes are expected to shape its economic trajectory: the green economy, the silver economy, and continued economic reform.

In terms of green economy, environmental sustainability is set to be a cornerstone of Malaysia’s future economic strategy.

The government has recognised the need to transition to a low-carbon economy, with initiatives aimed at promoting renewable energy, energy efficiency, and sustainable practices across industries.

The  Malaysia Renewable Energy Roadmap (MyRER) outlines ambitious targets for increasing the share of renewables in the energy mix, positioning the country as a leader in green technology in the region.

Commenting on this, Yeah said the National Energy Transition Roadmap (NETR) has provided the policy direction and strategies to effect the shift to renewable energies, decarbonisation, carbon capture, storage and utilisation (CCSU) and efficient energy utilisation that underpin a green economy.

He added that there are green economy investment opportunities that are integrated with a circular economy driven by sustainable production and consumption where the carbon footprint, resource usage and wastes are minimised.

“The main challenges in undertaking green investments include high cost, access to financing and availability of technology which are either too costly or unproven,” he noted.

Doris said Malaysia’s NETR outlines ambitious plans to achieve net zero emissions. Numerous opportunities exist for greening the economy, including Tenaga Nasional Bhd’s (TNB) initiative to decarbonize the grid and the growing use of sustainability-linked financial instruments in the financial sector.

“The transportation sector also offers significant potential for greening. As the electric vehicle (EV) cars are gaining traction, there is also room for growth in electric buses, trains, and bicycles. Additionally, creating more walkable cities can contribute to reducing carbon emissions.

“However, challenges remain. A lack of expertise and skilled workforce in sustainability-related fields hinders widespread adoption of green technologies and practices. Moreover, carbon reporting can be resource-intensive, particularly for Malaysia’s 900,000 small and medium enterprises (SMEs),” she added.

With an ageing population, Malaysia is also focusing on the silver economy—leveraging the potential of the elderly as a source of economic growth.

This includes promoting healthcare, wellness, and financial services tailored to the needs of the elderly, as well as encouraging lifelong learning and active ageing.

The silver economy is expected to create new opportunities in various sectors, from healthcare to real estate.

Yeah suggested that Malaysia can further prepare its economy by tapping into the female labour force, which currently has a participation rate below its peer countries, and gradually raising the retirement age to 65.

He also stressed the importance of establishing old age social protection schemes and planning for higher spending on healthcare and aged care, where private sector investment can play a critical role in contributing to overall GDP growth.

Nevertheless, economic reform is expected to continue to be a key driver of Malaysia’s growth, with a focus on enhancing productivity, improving governance, and fostering innovation.

The government’s Shared Prosperity Vision (SPV) 2030 aims to ensure that all Malaysians benefit from the country’s economic progress, addressing income disparities and promoting inclusive growth.

Yeah also noted that Malaysia needs to expand the infusion of technology across all sectors and raise investment in R&D and innovations to escape the ‘middle-income trap’.

According to a recent World Bank report, these steps are crucial for ensuring that Malaysia continues on its path toward becoming a high-income nation.

Meanwhile, Doris highlighted that while the country faces challenges with brain drain, there is an increasing need to consider attracting foreign workers for both blue-collar and white-collar roles to help drive various industries.

She emphasised that this should be done cautiously to ensure that local workers are not put at a disadvantage.

“Foreign workers should be brought in as a complement to the domestic workforce, supporting continued economic growth.

“As the population ages, government spending on healthcare and social welfare will increase. Ensuring robust economic growth and government revenue is essential to sustain the care economy,” said Doris.

Source: NST

Malaysia’s major economic transformation since 1957

Malaysia is on track to see more than RM50 billion in foreign direct investments (FDI) by 2030, in the absence of any unexpected economic shocks.

UOB Global Economics and Markets Research in a note today said it anticipates FDI inflows, in ringgit terms, to sustain its average long-term 15-year growth trend of 3.6 per cent per annum in the medium term.

This will translate into absolute annual FDI inflows of around RM51.6 billion (or about US$13.5 billion) by 2030.

“Our projection is supported by the 2024 year-to-date performance of FDIs, whereby Malaysia has attracted a total of US$ 3.1 billion FDI inflows in the first half of 2024 (1H24), which was 17.9 per cent higher than US$2.6 billion recorded in 1H23,” it added.

UOB Research said, despite a challenging and complex global environment, Malaysia’s investment landscape remains robust, and prospects are encouraging with a positive FDI outlook in the short-to-medium term.

Between 2021 and Mar 2024, the Malaysia Investment Development Authority (Mida) has approved almost RM1 trillion worth of investments with committed manufacturing investments making up RM474.3 billion (47.9 per cent), services investments amounted to RM461.8 billion (46.6 per cent) and primary sector investments totaling RM54.2 billion (5.5 per cent).

About 77.2 per cent of approved manufacturing projects have been implemented, while about 21.1 per cent are in the planning phase and the balance of 1.6 per cent remain unimplemented.

This is in addition to projects in the pipeline that totalled RM128.4 billion as of May 31, this year.

UOB Reserach said various catalytic projects in the national masterplans, such as New Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap, will further enhance opportunities for investments in Malaysia’s high-growth high-value (HGHV) sectors.

Johor-Singapore Special Economic Zone (JS-SEZ and the country’s five regional economic corridors will also work to bring in investments. along with Malaysia’s efforts to grow its trade ties.

To date, Malaysia has implemented 16 Free Trade Agreements (FTAs, seven bilateral and nine regional) and joined the Regional Comprehensive Economic Partnership (RCEP), Indo-Pacific Economic Framework (IPEF) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The report did however caution that the possibility of expanded universal US tariffs, export controls and secondary sanctions to countries that are part of China “Plus One” Strategy remains a key risk particularly for Malaysia and other Asean members who have benefited from diverted “China-US” flows.

The United Nations Trade and Development (UNCTAD) in its World Investment Report 2024 said the global environment for international investment “remains challenging” in 2024 due to economic fracturing trends, trade and geopolitical tensions, industrial policies and shifts in supply chains reshaping FDI patterns, prompting some multinational enterprises to stay cautious on overseas expansion.

Source: NST

Malaysia on track to bring in more than RM50b in FDI by 2030 – UOB Research

The uptrend in the semiconductor industry and the rollout of various construction projects in the second half (2H) of 2024 are expected to continue supporting Malaysia’s economic growth, said MIDF Amanah Investment Bank Bhd.

In a research note, MIDF also anticipated the export recovery to continue in 2H 2024, driven by foreign demand for both electrical and electronics (E&E) and non-E&E products.

“Export growth accelerated to 12.3 per cent year-on-year (y-o-y) in July 2024, marking the fastest growth in more than 1.5 years, driven by stronger domestic exports (18 per cent y-o-y), supported by higher shipments of palm oil and palm oil products, as well as rebounds in exports of E&E and petroleum products.

“By destination, exports grew faster to major destinations except China and Hong Kong,” it said today.

MIDF said Malaysia’s gross domestic product (GDP) growth accelerated to 5.9 per cent y-o-y in the second quarter (2Q) of 2024, marking the fastest expansion in six quarters, compared to 1Q 2024 of 4.2 per cent y-o-y.

It noted that the great GDP performance also surpassed the advance estimate of 5.8 per cent y-o-y.

“For 1H 2024, the economy expanded 5.1 per cent y-o-y, stronger than the 3.0 per cent y-o-y in 2H 2023.

“The robust performance was driven by sustained resilience in domestic demand, improvements in manufacturing activities, and recovery in external trade,” it said.

Therefore, MIDF predicted that Malaysia’s economic growth to grow stronger at 5.0 per cent this year, given the robust growth in 2Q 2024.

“Despite the more optimistic view on the domestic economic picture, we will keep a close look at several factors which could derail the growth outlook, such as weaker growth in China, recession risk in the US, the recent escalation in geopolitical tensions, and potential disruptions to the global supply chain and trade flow.

“Although inflation has been generally under control, the potential uptrend in price pressures from planned policy changes could hurt consumer sentiment and their discretionary spending,” it said.

Source: Bernama

Malaysia’s growth set to be buoyed by semiconductors and construction projects in second half of 2024, MIDF says

UOB today signed a Memorandum of Understanding (MOU) with Invest Johor, the state’s investment agency, to drive investment opportunities into the upcoming Johor-Singapore Special Economic Zone (SEZ).

UOB also signed a second MoU today with China’s Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

Under the partnership with Invest Johor, UOB will collaborate with the state investment agency to jointly promote and facilitate investment opportunities into the Johor-Singapore SEZ. This will be done by targeting high value, high technology and high impact investments from priority sectors such as electrical and electronics, advanced manufacturing and engineering, digital economy, green economy, life science and med-tech, electric vehicles, aerospace and port and logistics.

Notably, a “green lane” will be jointly established, with UOB designated as a partner to assist with foreign direct investments in these prioritised sectors to accelerate their investments. UOB will also provide advisory and banking services to companies looking to invest in Johor as part of the MoU.

The MoU was signed by Invest Johor’s CEO, Natazha Bin Hariss and UOB Malaysia’s CEO, Ng Wei Wei, at the Asean Conference held in Singapore today. The ceremony was witnessed by Johor Menteri Besar, Datuk Onn Hafiz Ghazi, and UOB’s deputy chairman and CEO Wee Ee Cheong.

Onn Hafiz said, “From our engagements with key stakeholders of the Johor-Singapore SEZ, expectations are very high. This will require us to step up our game, provide excellent service and ensure that we not only meet, but exceed these expectations. Today’s MoU between Invest Johor, the state’s lead investment agency and UOB, one of Asean’s leading financial institutions with over seven decades of experience in assisting investors in Malaysia, is one example of our seriousness and focus in improving the investor experience in Johor.”

Wee said, “UOB is pleased to work with like-minded partners to support businesses in navigating the diverse Asean region. Our strategic partnerships with regional government investment agencies and trade associations have successfully connected enterprises such as Lingang Group to cross-border investment opportunities, benefitting businesses across multiple sectors. We remained committed to serving as an effective gateway to the region for companies expanding into the region.”

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

UOB is the only bank to have signed MoUs with all the government investment agencies in the key Asean markets.

Ng said, “The MoU with Invest Johor reinforces UOB’s commitment to facilitate foreign direct investment into Malaysia and support the success of the Johor-Singapore SEZ. Apart from bringing in investments, we will also connect foreign investors to the local ecosystem value chains with the aim to benefit our local businesses, particularly the SMEs. This is to ensure that foreign investors can tap into local resources and the investments can bring multiplier effect to the economy.”

In addition, UOB facilitated a meeting with China’s Lingang Group, Johor’s Menteri Besar and a delegation from Invest Johor at the sidelines of the Asean Conference.

This followed the signing of the second MoU today between UOB and Lingang Group, an industrial park operator with more than 18,000 tenants across China. Under the partnership, UOB will facilitate Lingang Group and its tenants to expand into Southeast Asia.

The state-owned enterprise has more than four decades of experience developing industrial parks and focuses on investment promotion and operation of industrial parks, professional enterprise services and sci-tech industrial investment. Lingang Group currently operates the China (Shanghai) Pilot Free Trade Zone (FTZ), a tech hub established in 2019 and have played a key role in the opening of China’s economy to global investors.

Lingang Group’s cross-border expansion plans will leverage UOB’s extensive trade network as the preferred bank for all their banking needs. UOB, through UOB China, has successfully facilitated first-of-its-kind cross border transactions with Lingang Group, benefitting both onshore Chinese and UOB clients to route their capital and trading flows through the policies and concessions offered under the Pilot FTZ.

UOB’s Foreign Direct Investment Advisory Unit will also serve as a one-stop shop dedicated to helping Lingang Group through its close partnerships with regional government agencies, trade associations and professional service providers, providing customised solutions to fit Lingang Group’s expansion plans.

Source: The Sun

UOB partners Invest Johor to drive foreign direct investments into Johor- Singapore SEZ

Malaysia and Saudi Arabia discussed efforts to further enhance bilateral relations today, according to Foreign Minister Datuk Seri Mohamad Hasan.

In a Facebook post, he mentioned that the discussion took place during a courtesy visit by Saudi Arabia’s Minister of Haj and Umrah, Dr. Tawfiq Fawzan Al-Rabiah, along with his delegation, at Wisma Putra, Putrajaya.

He stated that the topics discussed included increasing investments in Malaysia, adding more flights between Kuala Lumpur and Jeddah, and increasing the number of scholarships for Malaysian students to study in Saudi Arabia.

He also mentioned that the Saudi-Malaysia Consultative Council has been agreed upon to be co-chaired by the Foreign Ministers of both countries.

Source: Bernama

Malaysia, Saudi Arabia Discuss Strengthening Ties and Investment

The Sabah government is focusing on efforts to increase its visibility among foreign investors towards achieving its goal of becoming an industrial state by 2040, according to Sabah Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe.

Speaking to Bernama on the sidelines of The Business Show Asia here, he said that besides participating in more conferences and exhibitions, the state government is also ensuring the local manpower and facilities are industry-ready.

“I found out through programmes like today’s, at the international level, that many people actually don’t know about Sabah and what we can offer. So it is important for us to increase Sabah’s visibility.

“Another one is training. If we want high quality investment, we need high quality manpower, so we are working with several training institutes to train Sabahans, so that they can contribute to the industry that we are going to tap into such as the green sector and renewable energy,” he said.

Phoong said that to increase its visibility, Sabah will also introduce two new industrial parks in Kota Belud and Kimanis, to add to the already established three major parks — Kota Kinabalu Industrial Park (KKIP), POIC Lahad Datu, and Sipitang Oil and Gas Industrial Park (SOGIP).

“These developments are part of our broader strategy to expand our industrial infrastructure and support economic diversification and industrialisation,” he said, adding that the state had total investments of more than RM11 billion in 2022 and 2023.

At the event, Phoong witnessed the signing of a letter of intent (LoI) between Sabah’s KKIP Aviation Training Centre (KATC) and Singapore’s DroneDash Technologies for collaboration in training on drones for cargo delivery services.

KATC chief executive officer Datuk Dr Mohd Dali Isa said that through the future collaboration, DroneDash will provide its expertise to train Sabah youths at KATC as drone engineers, technicians and pilots “so that they know how to operate relatively large-scale drones for cargo handling”.

“For now we have not yet determined the number of trainees who will be involved in this programme which is still in the planning stage,” he said.

This initiative will equip the local workforce with essential skills, support the existing industrial parks and contribute to the development of two new industrial parks in Sabah, driving innovation to the state.

Meanwhile, Phoong also witnessed the memorandum of agreement (MoA) signing between Hong Xin Food Sdn Bhd and Alkemal Singapore Pte Ltd on the distribution of the former’s Tem Tem Tempeh Chips in Singapore’s market.

The chips available in original and Tadong (red rice) variations will now be available at 30 Sheng Siong Supermarket outlets, a leading retail chain in the republic.

Hong Xin Food founder Cherry Ding Chew Li said she hoped the agreement will help to increase visibility of the brand and products, as well as attract more investors.

“We are a young startup opened in December 2021 during the pandemic, started manufacturing from home and with more demand, we already have a factory in Kota Kinabalu, with small-scale production for now. We hope with more investors, we can increase our production and export to more countries,” she said.

Also present was Malaysia’s High Commissioner to Singapore Datuk Dr Azfar Mohamad Mustafar.

Source: Bernama

 

Sabah plans to increase its visibility, attract more FDI

Malaysia has enjoyed five decades of rapid and inclusive economic growth, bringing the country within reach of high-income status, said a chief economist.

Organisation for Economic Cooperation and Development (OECD) Economics Department director Dr Luiz de Mello said the economy has achieved an impressive average yearly growth of over six per cent since the 1960s. 

He added that Malaysia has been ahead of regional peers in terms of per capita incomes and has been able to consolidate this lead. 

Luiz said while incomes were only one-third of the World Bank’s threshold for high-income countries in 1989, they are set to surpass that threshold by 2028.

“Significant policy reforms in the 1980s allowed Malaysia to attract large inflows of foreign direct investment, turning it into a global chips and electronics manufacturer.

“Growth and productivity could be strengthened further by easing restrictive regulations and creating a more level playing field between state-owned enterprises and private firms. 

“This would bring particular benefits for services and for small and medium enterprises (SMEs),” he said in a presentation at the launch of the 2024 OECD Economic Survey of Malaysia today.

Luiz noted that with higher incomes, however, surging demands for better public services require different policies from those that were successful in the past. 

He said the public sector will have to deliver more and become more effective, which calls for improved economic governance.

He also emphasised that filling the substantial gaps in the current social protection system requires increased expenditure. 

On Malaysia’s growth, Luiz said the country’s growth is accelerating, mostly driven by expanding domestic demand. 

He added that exports are set to rebound amid stronger external demand, and inflation has fallen below historical averages but is expected to rise as energy subsidies are withdrawn.

“The economy has shown resilience in the face of shocks, including the pandemic, supply chain bottlenecks, and the economic implications of Russia’s war of aggression against Ukraine.

“Growth is projected to reach 4.9 per cent in 2024 and then 4.7 per cent in 2025. 

“Buoyant domestic demand and new opportunities in technology-intensive sectors and the expected rebound in exports will encourage private investment despite higher financing costs,” he said.

On monetary policy, Luiz said the monetary authorities started a tightening cycle in 2022 as inflation approached five per cent, driven by global energy prices and currency depreciation.

“With inflation near its two per cent long-term average, the current monetary policy stance seems adequate and provides room to accommodate a temporary increase in inflation as energy subsidies are withdrawn. 

“At the same time, monetary authorities should stand ready to raise rates to counter possible second-round effects from higher energy prices,” he noted.

Source: NST

Malaysia to achieve high-income status soon: OECD director