The latest AHK World Business Outlook Fall 2024 Survey conducted among German companies in Malaysia reveals an optimistic forecast for 2025, with positive sentiment about both current conditions and prospects.

The survey highlights key insights reflecting the resilience and growth expectations of German businesses operating in Malaysia.

When asked to assess the current performance of their company, 92% of German businesses in Malaysia report conditions as “good or satisfactory”, which marks a significant increase of 10% compared to the same period last year.

Strong economic development and confidence among German businesses in Malaysia are expected to continue into next year, with 97% of respondents describing the outlook for 2025 as “favourable or stable”.

While Malaysia has always been recognised for its strong economic foundation, this year’s survey results demonstrate a significant boost in confidence, surpassing expectations from last year’s outlook and highlighting the continued resilience of Malaysia’s economy.

Reflecting this confidence, more than 63% of companies expect positive business development over the next 12 months, while 35% anticipate the current stability will be maintained. Only 1.8% predict a decline in performance, showcasing a predominantly positive outlook for the year ahead.

Additionally, four in 10 companies intend to increase investments in the coming year, suggesting a commitment to further growth within the business community.

Employment plans also appear to be promising, with almost half of the German companies in Malaysia indicating plans to ramp up hiring. An equal percentage (47%) intend to retain their current workforce, emphasising a dual approach to growth and stability in human resources.

While the survey paints a generally encouraging outlook for businesses in Malaysia, respondents identified several challenges that could potentially impact their economic development in the coming years.

Survey participants view demand, economic policy conditions, and lack of skilled workers as potential challenges. These insights underscore the need for ongoing vigilance and strategic planning as companies navigate both opportunities and uncertainties in a highly competitive and volatile global market.

Overall, the findings of the survey illustrate a strong confidence among companies in Malaysia, highlighting a positive trajectory for business development and economic growth in the coming year.

Malaysian-German Chamber of Commerce and Industry (MGCC) executive director Jan Noether said, “The results of the AHK World Business Outlook Fall 2024 Survey align perfectly with our expectations for the future of German business in Malaysia. The strong sentiment and optimism reflected in the survey highlight the positive situation we are experiencing here and underscore our confidence in Malaysia’s economic stability and growth prospects. German companies are comfortable and committed to the Malaysian market, with a clear outlook for continued success and expansion in the year ahead. Moreover, Malaysia’s stable economic environment and supportive policies play a key role in stimulating further investment, reinforcing our belief in the country as a reliable and attractive hub for business growth.”

In Malaysia, the survey was conducted between Sept 23 and Oct 16, with 111 respondents from MGCC member companies, comprising mostly German companies with branches or subsidiaries in Malaysia, primarily from the manufacturing, trade, and services sectors.

The survey is part of the broader AHK World Business Outlook, a biannual global research initiative conducted by the German Chamber of Commerce and Industry. It surveys member companies from the network of German chambers of commerce abroad (AHK), which represent more than 40,000 companies in 93 countries.

Source: The Sun

German companies in Malaysia optimistic about prospects in 2025, survey shows

Deputy prime minister Datuk Seri Dr Ahmad Zahid Hamidi has arrived in the United Arab Emirates (UAE) capital to kickstart his seven-day official work visit.

The special aircraft carrying Zahid landed at the Al Bateen Airport at 3.12pm local time.

He was welcomed by the UAE Energy and Infrastructure Minister Suhail Mohamed Al Mazrouei and Malaysian ambassador designate to the UAE Tengku Datuk Sirajuzzaman Tengku Mohamed Ariffin.

It is Zahid’s inaugural official work visit to the UAE since becoming deputy prime minister on Dec 3, 2022.

Meanwhile, Tengku Sirajuzzaman said Zahid is expected to highlight the various initiatives under the Madani Economy Frame aimed at providing a conducive environment to attract foreign investors to Malaysia.

“He will also meet with industry players and stakeholders in the UAE that include the fields of education, artificial intelligence (AI) and natural disaster management which is Space42, as well as NAFFCO FAZO (National Fire Fighting Manufacturing FZCO – a Middle East based firefighting products manufacturer).

“Zahid is scheduled to launch the participation of Malaysia International Halal Showcase (MIHAS) in Middle East Organic and Natural Product Expo at the Dubai World Trade Centre on Nov 18.

“Malaysia’s participation will strengthen MIHAS’s status as a globally recognised trade exhibition and at the same time, position the country as a leading player in the international halal landscape,” he said in a media briefing with Malaysian reporters.

Tengku Sirajuzzaman said the bilateral relations between Malaysia and the UAE began in 1973 and since then, the ties between the two countries have grown steadily due to close economic relations, mutual respect and cooperation in various fields.

Both countries, he said, held the Joint Committee for Cooperation meeting here on June 4 this year and have recently concluded discussions on the Malaysia-UAE Comprehensive Economic Partnership Agreement.

He said the UAE is Malaysia’s second largest trading partner, the second largest export destination and the second largest import destination from the West Asia region.

Last year, Malaysia’s total trade with the UAE increased by 5.4 per cent from RM37.6 billion (USD8.53 billion) to RM39.63 billion (USD8.67 billion) compared to 2022, he said.

“The UAE is one of the largest foreign investors in Malaysia among West Asia countries and its current major investments include Mubadala Petroleum, Lulu Hypermarket, Medini Development dan Landmark Group.

“Meanwhile, Malaysian investment in the UAE is RM1.4 billion (USD375.9 million) and Malaysian companies operating in the UAE include Petronas, TNB, UEM, Eversendai Corporation, Shing Yang Shipping and Marrybrown.

“Malaysia encourages UAE investors to continue actively exploring investment opportunities in high value projects.

“Among the potential areas that can be explored together with the UAE are pharmaceuticals, digital and green economy, AI, electric and electronics, chemicals and aerospace,” he said.

Source: NST

Zahid to boost bilateral ties with UAE through trade, investment, AI, green tech

Inquiries by Chinese companies for factory and office space in Malaysia have spiked since Americans voted for Donald Trump to return to the White House, driven in part by his campaign pledge to slap 60 per cent tariffs on Chinese goods.

During his first term, Trump’s “America First” policy sparked a trade conflict with China, with tariffs imposed on US$550 billion of Chinese products. The tensions between Washington and Beijing also led to disruptions in global supply chains and fuelled uncertainty in financial markets.

With multinationals seeking alternative suppliers outside China, regional countries, including Malaysia, Thailand and Vietnam, have benefited from the diversification, especially in sectors like semiconductors and medical supplies.

South-East Asia nations are preparing for more turbulence ahead after Trump said a blanket tariff regime would be levied at 10 per cent on all imports.

In Thailand, WHA Group CEO Jareeporn Jarukornsakul told Reuters that the industrial estate giant has been flooded with phone calls from Chinese customers in anticipation of the tariff spike, prompting it to expand its Chinese-speaking sales force.

Similarly, Malaysian real estate sellers have been reporting an uptick in interest in business relocation as Trump’s return to the White House may bring a surge in Chinese companies looking to move supply chains to Southeast Asia to shield their business from the tariff impact.

“The US election results will drive new growth in Chinese business investment in Malaysia and South-East Asia,” Kashif Ansari, Group CEO of real estate firm Juwai IQI, told This Week in Asia.

The firm, which supports companies in business space expansion, has received six inquiries from Chinese entities since last week. “Chinese companies were prepared for this,” Ansari said.

A recent Juwai IQI report found that Malaysia and neighbouring countries have received significant investment so far this year in sectors such as automotive, real estate, and semiconductors, as Chinese capital shifts away from G7 economies to Asia.

The report also noted that nearly all Chinese investments so far this year have gone into building new facilities, marking a significant shift from pre-pandemic trends.

Private Chinese firms are leading the investment push, with only 10 per cent of Chinese investment in Malaysia coming from state-owned enterprises.

“They’re setting up operations here, hiring local talent, and establishing key production facilities in Malaysia,” Ansari said.

Ten Wee Seong, CEO of Seri Pajam Development, the developer of the SPD Tech Valley industrial estate in Negeri Sembilan, reported “significant interest from Chinese companies” in sectors such as semiconductors, electronics manufacturing, and renewable energy.

“Looking ahead to 2025, we anticipate a continued surge in demand for industrial spaces [from Chinese companies] within SPD Tech Valley,” he said.

In May, Hong Leong Investment Bank’s research division noted that while trade wars often harmed the global economy, Malaysia’s neutral stance has helped attract foreign direct investment.

The bank’s report highlighted that during Trump’s first term, Malaysia’s exports to the US grew at an average of 7.7 per cent annually – a faster growth rate compared with its shipments to China.

Approved foreign investments in Malaysia more than tripled to 188 billion ringgit (US$42.5 billion) between the start of the trade war in 2018 and 2023, according to the report.

In congratulating Trump on his election victory last Wednesday, Prime Minister Anwar Ibrahim noted that the US remained Malaysia’s largest source of foreign investment and a vital player in the Asia-Pacific region.

“Malaysia hopes that America will reinvigorate its engagement with South-East Asia,” Anwar said.

Source: South China Morning Post/The Star

With Trump’s victory, Malaysia sees more interest from Chinese firms for business space

Malaysia’s participation in the two Asia-Pacific Economic Cooperation (APEC) meetings in Peru and the G20 Summit in Brazil is expected to open up opportunities to strengthen Malaysia’s economic ties on the global stage.

The presence of Prime Minister, Datuk Seri Anwar Ibrahim, at these two high-profile conferences holds significant potential but also comes with challenges, according to Executive Director of the Malaysian Institute of Economic Research (MIER), Prof Dr Anthony Dass.

Dass said Malaysia should view the APEC summit as a strategic platform to enhance trade with countries in the Asia-Pacific region.

Data shows that around 82 per cent of Malaysia’s total trade in 2022 involved APEC member countries, with major exports such as electronics, palm oil, and petroleum worth approximately USD 250 billion (RM 1.1 trillion).

“The Latin American market, particularly Brazil, which is a member of BRICS, presents an opportunity for Malaysia to diversify its export markets. In 2022, Malaysia-Brazil trade was valued at about USD 3billion (RM 13.2 billion), but sectors such as palm oil, rubber, and electrical products still have significant potential for growth,” he said.

He added that the summit also provides Malaysia an opportunity to demonstrate its commitment to global issues such as climate action.

Malaysia aims to achieve carbon neutrality by 2050 and targets 31 per cent of its energy mix to come from renewable sources by 2025.

Meanwhile, Dass noted that although Malaysia’s participation in the G20 was by invitation, it allows the country to highlight its efforts in the green economy, attracting green investments estimated to reach USD15 billion (RM 66 billion) by 2025.

Additionally, the digital economy, which contributed about 23 per cent to Malaysia’s GDP in 2022, remains a key focus.

Through the MyDIGITAL framework, Malaysia plans to increase the digital economy’s contribution to 25.5 per cent by 2025.

By participating in these summits, Malaysia has the opportunity to establish partnerships with technology leaders that can strengthen its digital infrastructure, contributing an additional USD 25 billion (RM 110 billion) to the economy over the next five years.

In terms of investment, Malaysia is focusing on expanding the renewable energy sector, particularly solar energy, to achieve its target of 31 per cent electricity generation from renewable sources by 2025.

The G20 summit, which was also attended by international investors, opens up opportunities for Malaysia to attract more foreign investments in this sector.

“By 2022, Malaysia successfully attracted approximately USD 30 billion (RM 132 billion) in Foreign Direct Investment (FDI), mainly in the manufacturing sector. The presence of Anwar at APEC and G20 will help strengthen Malaysia’s position as a hub for semiconductor and electronics manufacturing,” said Dass.

However, the main challenge facing Malaysia is managing the ongoing global geopolitical tensions. The trade conflict between the United States and China, two of Malaysia’s main trading partners, requires a careful approach to ensure that Malaysia can maintain its trade networks without jeopardising the country’s projected GDP growth rate of around 4.5 per cent in the coming years.

The Russia-Ukraine conflict has also affected global energy prices, which in turn has impacted inflation in Malaysia, with an average rate of 3.3 per cent in 2023.

If this conflict persists, rising energy costs could place pressure on the country’s fiscal stability and social spending.

Malaysia also faces the challenge of aligning its priorities with the different agendas of APEC and the G20. APEC focuses more on regional trade integration within the Asia-Pacific, which aligns with Malaysia’s interests, while the G20 is more focused on global economic issues and climate change.

Source: NST

Apec to boost Malaysia’s economic ties

Malaysia is prepared to host the First Coordination Meeting between Malaysia and Saudi Arabia at the Foreign Minister level to discuss further cooperation between the two nations.

This was conveyed by Prime Minister Datuk Seri Anwar Ibrahim during a meeting with Crown Prince and Prime Minister of Saudi Arabia Mohammed Salman Abdulaziz Al-Saud in Riyadh yesterday.

“During the meeting, we touched on various aspects of Malaysia-Saudi Arabia relations that need to be expanded, particularly in the areas of trade and investment, including cooperation in new fields such as artificial intelligence (AI), the green economy, clean energy, and petrochemicals.

“We also exchanged views on regional and international situations of mutual interest,” Anwar shared in a Facebook post.

According to the Prime Minister, he is optimistic that the close relationship between Malaysia and Saudi Arabia will contribute to the prosperity of the Malaysian people as a whole.

During the meeting, Anwar also expressed appreciation for the leadership of the Saudi Arabian government regarding the organisation of the Extraordinary Arab and Islamic Summit, including continuous efforts to support oppressed Muslim communities.

“I also took the opportunity to invite the Crown Prince and Prime Minister of Saudi Arabia to attend the Asean-GCC (Gulf Cooperation Council) Summit in Kuala Lumpur,” he said.

Anwar arrived in Riyadh yesterday to attend the Extraordinary Arab and Islamic Summit.

The Prime Minister’s presence at the summit aims to bring the voice and mandate of the Malaysian people regarding the ongoing atrocities and humanitarian issues related to the actions of the Israeli Zionist regime in Palestine and Lebanon.

Anwar is scheduled to return to Cairo today to continue his four-day official visit to Egypt, which began on Saturday. 

Source: Bernama

PM Anwar: Malaysia to host inaugural coordination meeting with Saudi Arabia, with focus on trade, AI and clean energy

The Sarawak state government has approved RM31.8 billion in foreign direct investments (FDI) for high technology industries such as the electrical and electronics, chemicals and green metal sectors from 2019 to 2023.

State Deputy International Trade, Industry and. Investment Minister Datuk Malcolm Mussen Lamoh said 10 investment projects totalling RM9.3 billion had been implemented.

“The high technology industry projects implemented totalled RM9.3 billion, comprising five electrical and electronics projects, three chemical projects and two green metal projects.

“The state government is also working with the federal government to develop Sarawak as aerospace and semiconductor hubs,” he told the Sarawak State Assembly in today’s question-and-answer session.

Mussen was responding to a question from Razaili Gapor (GPS-Beting Maro) on the status of the high-technology industry FDI received by Sarawak.

Mussen said that the state government is developing the Sarawak Investment Policy to shape the strategy and action plan to improve the state’s attraction as an investment destination of choice and support the high-technology industry.

“The state government is also encouraging strategic cooperation with technical institutions, research centres, higher education institutions and specialised industries such as semiconductors and aerospace to spur innovation and technology development,” he added.

Source: Bernama

Sarawak approved FDI worth RM31.8 bln for high-technology industry from 2019-2023

Malaysia’s welcoming business environment with supportive policies and favourable climate for foreign businesses are among the key factors drawing Chinese companies to establish operations in the country, according to the China Enterprises Chamber of Commerce in Malaysia (CECCM).

CECCM president Ni Qingjiu highlighted that as the two nations celebrate 50 years of diplomatic ties this year, the organisation has observed more opportunities for its member companies to expand in Malaysia.

“This strong partnership has led to a deeper collaboration in key industries like construction, technology and sustainable energy.

“Looking ahead, I see some promising areas where Chinese and Malaysian businesses can collaborate, especially around new technologies and sustainability,” he told Bernama in a recent exclusive interview in conjunction with the upcoming Malaysia-China Summit (MCS) 2024.

The event will be held on Dec 17-19, 2024 at the Malaysia International Trade and Exhibition Centre.

Ni said the CECCM plays an important role in guiding its 348 member companies through local regulations and helping them connect with Malaysian industries.

“CECCM is actively engaging with local authorities to find solutions, and this kind of support makes it easier for them to operate smoothly and build trust in the local business community,” he noted.

Malaysia-China notable partnerships

Ni cited several significant partnerships between Malaysian and Chinese firms, including the collaboration between China’s Geely and Malaysia’s Proton which brought in fresh investments and technology that helped the national carmaker to re-enter the regional market with new models.

“This partnership was mutually beneficial – a win-win situation as Geely gained a foothold in the Asean market while Proton gained advanced automotive technology,” he said.

Other notable cooperation between Malaysian and Chinese companies includes the development of the East Coast Rail Link (ECRL), a mega project under the Belt and Road Initiative involving the China Communications Construction Company (CCCC) and Malaysia Rail Link Sdn Bhd (MRL).

“The project has brought significant investments to Malaysia and created many local jobs, with Malaysian companies contributing to construction and services,” Ni said.

He added that there will be more opportunities for enhanced cooperation for companies in both nations, especially in areas such as the Electric Vehicle (EV) and relevant infrastructure, green technology and renewable energy, advanced manufacturing as well as digital and artificial intelligence-driven technologies.

Malaysia-China Summit 2024 promotes enhanced collaboration

According to Ni, the MCS 2024 is a platform that will offer expanded opportunities for Malaysia and China to strengthen economic, trade, investment as well as cultural ties.

“The summit will serve as a dynamic platform for businesses from both countries to collaborate, explore new trade opportunities, and embrace innovation,” he said.

He added that the MCS 2024 provides a valuable opportunity for business leaders to connect, form partnerships and support the economic growth of both nations, he said.

Ni will be one of the speakers at the MCS 2024 Leadership Conference panel session, which will focus on significant development projects in Malaysia that involve companies from China.

These projects are acting as catalysts for growth in both countries.

“As a strategic partner for MCS 2024, CECCM member companies will be participating in key panel sessions that focus on areas like transformation, investment and green technology.

“Overall, we aim to support Malaysia’s aspirations for sustainable and digital development, while also showcasing the positive contributions that Chinese enterprises are making in the country,” he added

The MCS 2024 is organised by Qube Integrated Malaysia Sdn Bhd in association with the Malaysia External Trade Development Corporation (MATRADE).

Themed “Prosperity Beyond 50”, the summit reflects a strategic initiative to ensure continuous economic growth, societal advancement, and overall well-being, as well as sustained cooperation and synergy between Malaysia and China.

Around 500 exhibitors from Malaysia, China and ASEAN countries are expected to participate in the summit, attracting 10,000 trade visitors and delegates, in addition to a projected RM2 billion worth of potential trade and investments.

Source: Bernama

CECCM: Supportive policies, favourable investment climate attracting Chinese companies to Malaysia

The Madani government’s clear economic policies, supported by encouraging indicators, can attract new investors to drive the country’s economy on the global stage, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said Malaysia was also recognised as a main hub in the semiconductor and green technology sectors in Southeast Asia, thereby positioning the country to play a significant role internationally.

There were several opportunities discussed in a roundtable session last night, he said, which was attended by around 60 industry and business leaders from Egypt, together with the Malaysian business delegation.

They included discussions on palm oil, the automotive industry, pharmaceuticals, medical products, semiconductors, digital technology and renewable energy.

“Among other things, we discussed the potential for investment in several new areas that can be explored through business and trade partnerships with companies in our country, which will further boost the national economy,” he said after attending the session.

Present were Egypt’s Investment and International Trade Minister Hassan El Khatib; Foreign Minister Datuk Seri Mohamad Hasan; and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

While speaking at the session, Anwar said one of Malaysia’s focuses when taking over the Asean chairmanship next year would be to further enhance economic and trade activities among member states.

He said Malaysia, as one of the key players and major producers in the green energy sector, would leverage its strength to boost intra-Asean economic and trade activities.

“As Asean chair, another focus will be efforts to accelerate the expansion of digitalisation among its member countries,” he added.

Source: NST

Madani govt’s clear policies will attract investors, says Anwar

Malaysia and Egypt have significant opportunities to help each other access their respective markets, said Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Aziz.

He said Malaysia serves as a gateway to the dynamic ASEAN economy, and Egypt as an entry point to the Middle Eastern and African markets.

Tengku Zafrul highlighted these opportunities following a meeting with senior management from over 60 leading Egyptian companies and 20 Malaysian companies on Sunday.

He noted that Prime Minister Datuk Seri Anwar Ibrahim emphasised the substantial opportunities not only in the Malaysian market but also in the expanding ASEAN market.

“With Malaysia set to assume the ASEAN chairmanship in 2025, Egypt has the chance to enhance its engagement with the ASEAN region through close collaboration with Malaysia,” he said in a post on X today.

Tengku Zafrul pointed out that sectors such as palm oil, pharmaceuticals, medical devices, energy, food security, infrastructure, and technology have been identified as strategic areas for Egyptian companies to explore.

He also said that through Malaysia’s network of 16 Free Trade Agreements (FTAs), including with ASEAN, the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Egyptian investors have the opportunity to enjoy wider access and attractive incentives to international markets beyond the regional borders, including countries like Japan, Australia, Canada, and Latin America.

“With strong support from MITI and Malaysia’s investor-friendly ecosystem, Egypt is now in an excellent position to leverage this platform to strengthen its presence in this fast-growing region,” said Tengku Zafrul.

He further emphasised that the Malaysia-Egypt partnership holds great potential for exploring new opportunities within ASEAN and expanding more strategic economic engagement.

Tengku Zafrul is currently in Egypt as part of the official four-day visit by Prime Minister Anwar Ibrahim at the invitation of President Abdel Fattah El-Sisi.

Egypt is Malaysia’s fifth-largest trading partner in Africa, with trade value reaching RM3.35 billion in 2023.

Source: Bernama

Malaysia, Egypt have opportunities to access markets in ASEAN, the Middle East, and Africa – Tengku Zafrul

Malaysia is receiving greater foreign interest and investments due to its stability and positive policy reforms, says Citigroup global co-head of corporate banking Jason Rekate.

“There is an influx of investments in high growth sectors such as technology, renewable energy, data centres and semiconductors, with companies from the United States being the largest investors.

“There is also heightened interest from European and Asian countries. We expect a pickup in more strategic merger and acquisition (M&A) activity,” he said in an interview.

US-based Citigroup, which Malaysian corporate banking business is one of the key markets for its Asian franchise, is capitalising on the rapid foreign investment inflows into the country to carve a stronger foothold in the corporate banking arena.

Elaborating on foreign direct investments (FDIs), Rekate said they reached RM85.4bil in the first half of 2024 as many of the corporates used Citigroup’s network when they enter the country or increase their existing investments.

“We have also seen an uptick in investments made in the semiconductor ecosystem, data centres, shared services centres and global billing centres.

“They will continue to increase and remain a focus area for us.

“With the China plus one strategy playing out, where we also see Chinese companies setting up manufacturing bases in new locations to support their Asian and international businesses, Citi Malaysia is well placed to capture the business flows as we support more companies entering the country.”

As Malaysia drives its own environmental, social and governance agenda in technological and green financing initiatives, it will open up new opportunities in green loans and sustainability-linked financing, according to Rekate.

Companies are looking at making incremental investments for manufacturing in other countries to diversify their business under the China plus one strategy.

On the focus areas in corporate banking, Rekate said: “We are deepening client engagement and growing our wallet share with our existing clients.

“Citi continues to work closely with foreign multinational companies who are clients of ours in other parts of the world, as they enter or expand their business presence in Malaysia.

“We will focus on key business corridors where we see maximum opportunity for growth and investment.

“For instance, our Asia-to-Asia corridor strategy has been a huge growth area and will continue to be a focus going forward.”

With the government’s emphasis on attracting FDIs in high-growth sectors, the bank is optimistic that the electrical and electronics ecosystem will grow at a steady pace driven by demand for consumer electronics, automotive and artificial intelligence.

This is a sector that it will focus on in Malaysia, and other parts of the world, as well as the entire supply chain.

The bank also expects opportunities for M&A and capital raising in the healthcare and data centre space as more companies look at Malaysia as a suitable option.

Looking ahead, Rekate said Citigroup saw immense growth opportunities for the country’s economy and multinationals planning to operating here.

The banking group is maintaining its gross domestic product (GDP) growth forecast of 5.2%, implying that the fourth quarter GDP growth is picking up to 5.5% for this year.

Based on official estimates, the economy is projected to grow between 4.5% and 5.5% in 2025, driven by strong domestic demand and strategic investments in critical sectors including technology, manufacturing and renewable energy.

The GDP is projected to be stronger at between 4.8% and 5.3% this year compared with between 4% and 5% previously.

UOB Malaysia acquired Citigroup’s consumer banking business in Malaysia in 2022, resulting in Citigroup’s retail banking and consumer credit card business being transferred to UOB Malaysia.

In terms of the contribution of corporate banking to Citigroup Malaysia’s overall business, Rekate said it formed the bulk of the bank’s business in the country.

“Client relationships are managed by our team of experienced bankers within the corporate banking team.

“They work with our product partners in services and markets who offer our corporate clients a range of sophisticated and innovative services tailored for their business needs, including payments solutions, cash and liquidity management, trade finance, custody and trustee services as well as markets solutions like hedging and foreign exchange.

“This is our annuity business which contributes a steady fee income.

“Then there is the episodic activity where we work with our investment banking partners to deliver capital markets financing and M&A advisory.

“As activity levels in Malaysia increase, and more companies require the services we provide, we expect our local franchise to benefit and grow as our clients grow,” he added.

Source: The Star

Uptick in FDI flows

An increase in investment inflows, improved tax collection relative to Gross Domestic Product (GDP), and a narrower fiscal deficit are positive catalysts expected to drive Malaysia’s economy to grow between 5.0 per cent and 5.5 per cent in 2024 and 2025.

Malaysian Rating Corporation Bhd (MARC) chief economist Dr Ray Choy noted that total approved investments have averaged over RM300 billion – a significant increase compared to the period from 2015 to 2019 when this figure stood slightly above RM200 billion. “This represents a substantial rise in investments over time, reflected in the improvement in GDP growth and an increase in gross fixed capital formation, which indicates additional capacity building in the Malaysian economy,” he said during the virtual MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates event.

Choy further highlighted that Malaysia’s cyclical growth prospects remain strong, bolstered by a relatively elevated manufacturing Purchasing Managers’ Index (PMI) and improving business confidence.

“Malaysia’s PMI has improved. It’s not just about whether PMI is below or above 50, but about the cyclical improvements we’ve observed since the third quarter of 2023.

“This improvement is mirrored across business confidence in services, wholesale and retail trade, as well as in construction and industry,” he said.

In October 2024, the seasonally adjusted S&P Global Malaysia Manufacturing PMI remained unchanged at 49.5, with new orders rising for the first time since June 2024.

S&P Global previously reported that, while the index slightly trailed the neutral 50.0 threshold, it indicated a slight softening in business conditions over the month.

Choy added that global semiconductor trends have shown improvement, benefiting Malaysia as well.

On the fiscal deficit target, Choy stated that the fiscal deficit-to-GDP ratio has shown consistent improvement, with government expenditure as a share of GDP expected to decline due to reduced subsidies and the careful management of development expenditure.

“Malaysia is increasingly utilising public-private partnerships to drive development, effectively managing development expenditure even with a slightly reduced allocation.”

Commenting on the ringgit’s performance, he noted that the currency has performed well year-to-date, and Malaysia stands out for its GDP growth trajectory, which is slightly higher than pre-pandemic levels – an encouraging trend compared to other economies.

Source: Borneo Post

Investment inflows, strong business confidence to support Malaysia’s GDP growth for 2024, 2025

Malaysia and Egypt have agreed to work towards elevating bilateral relations to the level of strategic partnership in the near future, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said both countries are also committed to strengthening bilateral relations in various areas for mutual interest and benefit.

“To achieve this, Malaysia will host the next Joint Commission Meeting and Bilateral Consultation in 2025,“ he said during a joint press conference with Egypt’s President Abdel Fattah El-Sisi after a bilateral meeting between the two leaders at the Al-Ittihadiya Palace here today.

Earlier, Anwar paid a courtesy call on El-Sisi at the palace in conjunction with his four-day official visit to Egypt. The two leaders held a four-eye meeting before the bilateral meeting.

According to Anwar, he and El-Sisi also agreed to expand cooperation in trade and investment, higher education, cultural affairs, defence and security, agro-commodities, and tourism.

He said both countries also will leverage each other’s strengths and explore new potentials such as digital economy, renewable energy infrastructure development, transportation and maritime domain, as well as manufacturing and semiconductor sectors.

“We (Malaysia) are quite fortunate because Malaysia has emerged to be one of the important semiconductor hubs in the region, and we should be able to collaborate in this field.

“As the Chair of ASEAN in 2025, Malaysia expressed its readiness to work closely with Egypt to promote ASEAN-Egypt relations.

“Malaysia also encouraged Egypt to advance its engagement with ASEAN, through its important role and being the founding member of the African Union,” he said.

Anwar also expressed hope to work closely with Egypt and other BRICS members towards its full membership in BRICS and to advance the Global South Agenda after Malaysia was endorsed by BRICS Leaders of the Modalities of BRICS Partner Country Category at the 16th BRICS Summit in Kazan, Russia on Oct 23, 2024.

He said El-Sisi’s support is very important and needed by Malaysia in its application to be a full member of BRICS.

According to Anwar, Egypt has a great tradition of being one of the most profound voices for the global South and is always seen to be one of the leading voices of independence and neutrality.

“And this is consistent with the ASEAN position we call centrality. We engage with all countries, are friends with all countries, but we maintain our independence and we collaborate with all countries, particularly in terms of trade investments,” he added.

Source: Bernama

Malaysia, Egypt to work towards elevating bilateral relations to strategic partnership level

Johor’s economy is expanding into high-growth sectors, including food technology, agritech and renewable energy, showcasing the state’s adaptability to global trends.

State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said these areas reflect Johor’s responsiveness and readiness to embrace change.

“In food tech, we’re exploring sustainable agriculture solutions for domestic and international markets, while agritech enables efficient, technology-driven agricultural production.

“Clean energy is another sector we’re keen to expand, with projects that contribute to a sustainable economic future. We’re also actively seeking partners who can support and accelerate these initiatives, making Johor a leader in responsible growth and innovation,” he said in a Facebook post.

Lee added that Johor’s growth is anchored by partnerships with industry leaders committed to sustainable, high-value development.

“One recent example is our RM500 million collaboration with Fuji Oil Asia Pte Ltd through Johor Plantations Group, a fully owned subsidiary of Johor Corporation.

“Furthermore, our recent discussions with over 80 South Korean companies reflect Johor’s global appeal and our openness to international collaboration,” he said.

He also pointed to an upcoming agreement with Singapore on the Johor-Singapore Special Economic Zone (JS-SEZ), set to be signed on Dec 8 or 9 this year, as a key part of Johor’s broader economic strategy.

“This SEZ is more than just an economic zone; it is a model of economic integration within Asean, designed to facilitate cross-border investments, streamline regulations, and connect regional markets.

“Asean, with a population currently of 700 million, is projected to become the fourth-largest market in the world by 2030, up from fifth today. Our combined GDP is about US$3.8 trillion (US$1 = RM4.38), with intra-regional trade of about US$3.5 trillion,” he added.

Source: Bernama

Johor targets high-growth sectors to drive economic expansion

Companies have been moving factories from China to South-east Asia, anticipating Donald Trump would slap high tariffs on Beijing if he regained the White House, a move set to accelerate with his election win, industrial park developers in the region say.

Trump, who won a resounding victory on Tuesday, has threatened 60 per cent tariffs on goods coming into the US from China, much higher than the levies of 7.5 per cent to 25 per cent he imposed in his first term, a major risk for the world’s second-largest economy.

South-east Asia — with auto and electronics factories from Thailand to Vietnam and Malaysia — will likely benefit at China’s expense, said two executives, two business groups, a lawyer and an analyst in the region.

Developers of industrial parks are adding Chinese speakers and preparing land tracts for factories, a sign of how Trump, who takes office in January, could reshuffle global supply chains.

As Trump geared up his campaign to retake the presidency earlier this year, calls from Chinese customers flooded WHA Group, one of Thailand’s largest industrial estate developers, said CEO Jareeporn Jarukornsakul.

“There was (already) a relocation to South-east Asia, but this round is going to be more intense,” she said, referring to Trump’s 2017-2021 first term.

WHA is expanding its sales force and adding Chinese speakers to teams overseeing maintenance and administration of industrial parks spanning more than 12,000 hectares (30,000 acres) in Thailand and Vietnam, Jareeporn said.

Of the 90 factories that have opened this year in industrial parks run across South-east Asia by Thailand’s Amata Corp, some two-thirds have been companies relocating facilities from China, said Vikrom Kromadit, the developer’s founder and chairman.

Trump ‘needs some friends’

Trump will be a “big punch” to China, potentially doubling the number of firms looking to move from there into Amata’s 150 square km of industrial estates in four South-east Asian countries, Vikrom said.

Construction begins this month on an Amata industrial park in Laos, where China has built a high-speed rail line connecting Kunming in southwestern China to the Laotian capital Vientiane, he said.

Thailand, a regional automobile manufacturing hub, has drawn over US$1.4 billion (RM6.14 billion) in investment from Chinese automakers into its fast-expanding electric vehicle industry.

“We want a lot of investment from China so we can sell to America,” said Thai Commerce Minister Pichai Naripthaphan.

“I believe this will happen,” told reporters yesterday. “The Americans love us, the Chinese love us — we don’t have to choose sides.”

Malaysia, hoping to draw over US$100 billion in new investments to its semiconductor sector, could benefit from a realignment of supply chains, said leaders of two business groups.

“This shift could provide Malaysia with new opportunities to capture a larger share of exports to the United States and other key markets,” said Soh Thian Lai, president of the Federation of Malaysian Manufacturers.

But risks persist, particularly with some indications that Trump may consider tariffs on imports from countries across the region, said Leif Schneider, head of international law firm Luther in Vietnam.

Vietnam, a major exporter to the US with US$90 billion bilateral trade surplus between January and September, is bracing for volatility under Trump.

“Trump will have to choose — you can be anti-China, but you’ll need to have some friends in South-east Asia,” said WHA’s Jareeporn. “He is a negotiator, so we will negotiate.”

Source: Reuters

Malaysia poised to gain as companies shift production from China amid Trump’s tariff threat

Donald Trump’s re-election as the United States (US) President is expected to accelerate the China Plus One strategy, benefitting Malaysia through higher investments and enhanced export potential, particularly in sectors such as electronics, machinery, and palm oil.

Making this prediction, CIMB Securities senior economist Vincent Loo said Trump’s return to the White House solidifies a trajectory of heightened tariffs and protectionist policies, including a proposed 10 per cent tariff on all imports and a specific 60 per cent tariff on Chinese goods.

“With escalating US-China trade tensions, Malaysia could see increased export demand from US companies looking to source products outside China, creating export growth opportunities in high-value sectors,” he said in a research note today.

Loo said foreign direct investment (FDI) in Malaysia is expected to rise as companies seek stable manufacturing bases in the ASEAN region, with the country emerging as a competitive destination owing to its infrastructure and relatively lower production costs.

“However, renewed trade uncertainty may lead to risk-off sentiment in financial markets, prompting investors to seek safe-haven assets, supporting a stronger US dollar and accentuating capital outflows from emerging markets, including Malaysia,” he added.

He noted that increased tariffs on Chinese goods may prompt US companies to shift sourcing from China to Malaysia, increasing demand for Malaysian exports of semiconductors and electronic components.

However, if trade tensions escalate, overall demand might decline, curtailing exports to both the US and China.

Similar to electrical and electronics (E&E) exports, Loo said Malaysia’s machinery and appliance exports stand to gain as the US seeks alternatives to Chinese products.

“However, heightened tariffs and trade barriers could raise costs and reduce global trade demand, impacting Malaysia’s trade volume,” he added.

Meanwhile, Trump’s “America First” energy policy, with an emphasis on boosting US production, could lower global energy prices, diminishing the value of Malaysia’s mineral fuel exports, said Loo.

CIMB Securities maintained its forecast of Malaysia’s gross domestic product (GDP) at 5.2 per cent for 2024 and 5.0 per cent for 2025 although its export-import outlook may face upside risks owing to increased volatility of trade flows and fluctuations in foreign exchange levels.

“We continue to expect an external demand recovery driven by the global tech upcycle, as well as strong domestic spending supported by robust investments and resilient consumer spending,” said Loo.

The ringgit is anticipated to experience near-term volatility, but this would ultimately hinge on the US

Federal Reserve’s policy decisions, he said.

Meanwhile, Hong Leong Investment Bank (HLIB) said the proliferation of the China Plus One strategy would benefit Malaysia’s electronic manufacturing services sector as brand owners shift or diversify their manufacturing from China, while increased FDI to Malaysia would benefit sectors such as construction, industrial property and real estate investment trust.

It also said more economic fluidity and market volatility are expected under a Trump presidency given his rather confrontational “shoot from the hip” style.

“This isn’t entirely a bad thing, noting that Malaysia did benefit from the ongoing US-China trade war. However, the key risk this time around is if he drags the entire world into it as well with his proposed blanket 10-20 per cent tariff – the US was Malaysia’s third largest export destination in 2023 at 11.3 per cent,” it added.

For now, the investment bank is maintaining its end-2024 FTSE Bursa Malaysia KLCI target at 1,700.

“Our investment themes on tourism recovery, energy transition, Johor’s developmental reinvigoration and disposable income boosting measures should be fairly insulated the US election outcome – while trade war beneficiaries could see revived interest,” said HLIB. 

Source: Bernama

Trump presidency to enhance Malaysia’s export potential, FDI inflows

An increase in investment inflows, improved tax collection relative to the gross domestic product (GDP), and a narrower fiscal deficit are positive catalysts expected to drive Malaysia’s economy to grow between 5.0 per cent and 5.5 per cent in 2024 and 2025.

Malaysian Rating Corporation Bhd (MARC) chief economist Ray Choy said that total approved investments have averaged over RM300 billion — a significant increase compared to the period from 2015 to 2019 when this figure stood slightly above RM200 billion.

“This represents a substantial rise in investments over time, reflected in the improvement in GDP growth and an increase in gross fixed capital formation, which indicates additional capacity building in the Malaysian economy,” he said during the virtual MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates event today.

Malaysia’s cyclical growth prospects remain strong, bolstered by a relatively elevated manufacturing Purchasing Managers’ Index (PMI) and improving business confidence.

“Malaysia’s PMI has improved. It is not just about whether PMI is below or above 50, but about the cyclical improvements we have observed since the third quarter of 2023.

“This improvement is mirrored across business confidence in services, wholesale and retail trade, as well as in construction and industry,” Choy said.

In October, the seasonally adjusted S&P Global Malaysia Manufacturing PMI remained unchanged at 49.5, with new orders rising for the first time since June.

S&P Global previously reported that, while the index slightly trailed the neutral 50.0 threshold, it indicated a slight softening in business conditions over the month.

He added that global semiconductor trends have shown improvement, benefiting Malaysia as well.

On the fiscal deficit target, Choy said the fiscal deficit-to-GDP ratio has shown consistent improvement, with government expenditure as a share of GDP expected to decline due to reduced subsidies and the careful management of development expenditure.

“Malaysia is increasingly utilising public-private partnerships to drive development, effectively managing development expenditure even with a slightly reduced allocation,” he said.

Commenting on the ringgit’s performance, Choy said the currency has performed well year-to-date, and Malaysia stands out for its GDP growth trajectory, which is slightly higher than pre-pandemic levels — an encouraging trend compared to other economies.

“This is drawing global investors to Malaysia-denominated assets,” he said.

Meanwhile, the MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates is the latest instalment of its MARC360 series, where economic experts, policymakers, and industry stakeholders explored Budget 2025 and its expected impacts on Malaysia’s economic landscape.

The session featured presentations and insights from prominent voices in economic and fiscal policies, including the Finance Ministry’s Fiscal and Economics Division’s deputy undersecretary (economic research) Nirwan Noh, Moody’s Ratings’s senior sovereign risk analyst Christian de Guzman, and the Center for Market Education’s chief executive officer Carmelo Ferlito.

Source: Bernama

Malaysia’s GDP growth for 2024, 2025 boosted by investment inflows, strong business confidence

Prime Minister Datuk Seri Anwar Ibrahim reaffirmed Malaysia’s commitment to strengthening collaboration with China, emphasising both trade and broader global objectives.

During his courtesy call on President Xi Jinping at the Great Hall of People, Anwar expressed his gratitude for China’s continued support and emphasised the importance of shared values and vision between the two nations.

“I have followed you closely, Mr. President, especially your brilliant speech at the BRICS summit. Your support for our partnership with BRICS has been invaluable. More importantly, your vision for global security and development resonates deeply with us,“ said Anwar, referring to China’s President.

He further noted that China’s emphasis on “values and civilisation” sets it apart from many other world leaders, underscoring China’s passion for not only its people but also for the welfare of humanity.

“This is why we view China not just as a leader of the East but as a voice for the Global South, one that champions the interests of the developing world.”

The Prime Minister also highlighted the deepening ties between Malaysia and China, focusing on areas such as trade, investment, digital technology, energy, and training.

He said Malaysia particularly appreciates China’s willingness to embrace the nation as a partner in these key sectors.

“I spoke at Peking University earlier today on how I view China’s vision for a shared future, something that many developed countries have yet to embrace,“ he added.

“Your vision of a global community where China’s success is understood and shared with the international community is a powerful example of leadership.”

Looking ahead, Prime Minister Anwar also discussed Malaysia’s upcoming ASEAN chairmanship and the region’s growing ties with the Gulf Cooperation Council (GCC) and China.

He highlighted a notable achievement in ASEAN’s diplomatic efforts: the ASEAN-GCC-China partnership, which he believes will play a pivotal role in shaping the future of global trade and cooperation.

Despite challenges, the Prime Minister assured that Malaysia would continue to act in its national interest, citing the country’s independent decision-making process on issues such as 5G technology.

“We have decided that Chinese 5G technology will be a key part of Malaysia’s digital infrastructure, a choice made to benefit our country,“ he said.

The Prime Minister concluded his remarks by expressing confidence in the success of ASEAN’s future initiatives, with China’s involvement being essential to ensuring the region’s prosperity.

“We look forward to your continued support, Mr. President, as your presence is critical to the success of ASEAN,“ he said.

This statement reflects Malaysia’s increasingly strategic position on the global stage, positioning itself as a key player in both regional and international affairs.

Anwar arrived in Beijing on Wednesday, the last stop of his working visit to China from Nov 4 to 7. He arrived in Shanghai on Monday to attend the 7th China International Import Expo (7th CIIE).

Source: Bernama

PM Anwar: Malaysia committed to strengthening collaboration with China beyond trade

From January to September 2024, Malaysia’s halal product exports increased to RM45.04 billion compared to RM39.36 billion in the same period in 2023.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said Malaysia’s ability to dominate the halal market is still constrained by the low issuance of halal certificates by the Malaysian Islamic Development Department (JAKIM).

“Early analysis carried out under Halal Industry Master Plan 2030 (HIMP 2030) estimated the global halal market to be worth RM5 trillion,” he said when winding up the debate on the Supply (Budget) Bill 2025 at the policy stage for the Ministry of Investment, Trade and Industry (MITI) in the Dewan Rakyat today.

Liew was clarifying the issue of the Halal Development Corporation Bhd (HDC) and Malaysia External Trade Development Corporation(MATRADE) merger raised by several members of Parliament from the government bloc.

He said the merger between HDC and MATRADE was justified as part of the effort to increase the export value of halal products and to seek new markets, as MARTRADE has a network of ready markets that local halal industry players can capitalise on.

“MITI believes the merger will increase the HDC-MATRADE synergy and optimise ready resources, especially to promote the halal industry to become more effective and competitive.

“At the same time, efforts to develop a local halal champion to penetrate the export market will be focused on serious industry players,” he added.

Source: Bernama

Malaysia records RM45.04b in halal product exports from January to September 2024 – MITI

Malaysia stands ready for a new era of investment, supported by a clear vision for economic transformation and a commitment to attracting investments aligned with the nation’s high-growth and sustainable future, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the government is committed to making Malaysia a top-tier investment destination, attracting high-value investments, as articulated in the New Investment Aspiration. 

“As announced in the 2025 Budget, the MADANI Economy framework will continue its focus on reinvigorating the economy, driving reforms, and prospering the nation,” he said in his speech at the InvestMalaysia Portal launch today.

Among the growing investment landscape in Malaysia are the National Semiconductor Strategy (NSS), and the National Energy Transition Roadmap (NETR), as well as the New Investment Incentive Framework which is expected to be announced in the first quarter of 2025.

The framework aims to open new avenues for investors, including tax incentives and strategic investment funds.

Additionally, government-linked investment companies have collectively pledged to channel RM120 billion over the next five years in domestic direct investments towards high-growth and high-value industries, he said. 

“Collectively, these reforms were built on the back of our solid fundamentals, strengthening our resilience and maximising the growth potential of local supply chains – positioning Malaysia as an ideal, high-returning, and safe investment destination,” he said. 

Meanwhile, the government has launched the InvestMalaysia portal (www.investmalaysia.gov.my) to provide investors with essential information on investing in Malaysia. 

The portal aims to reinforce Malaysia’s standing as a competitive and appealing investment destination by showcasing opportunities in the country’s financial markets to both domestic and international investors. 

“Investors can obtain comprehensive information on Malaysia’s economic and investment policies, as well as gain real-time insights on not just the investment opportunities that Malaysia has to offer, but also the relevant steps to make the most of them. 

“The portal will also redirect investors to the right path and links to the relevant agencies’ websites based on their investments of choice. Ultimately, the goal is to empower investors to independently assess Malaysia’s economic prospects and explore investment opportunities the country can offer,” he said. 

He concluded that the InvestMalaysia Portal marks a significant advancement in bridging the gap between investment intention and action, simplifying access for investors, and making Malaysia’s investment landscape more navigable and rewarding. 

“Together, the Investor Relations Office and the InvestMalaysia portal would act as navigators for portfolio investors looking to participate in the Malaysian market,” he said.

Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said the platform is akin to an arbiter of Malaysia’s macroeconomic strength and investment potential.

“In this post-abundance world, often, it is not information that we lack but rather a mechanism to help us decide and evaluate our choices. This effort is imperative for Malaysia as we accelerate structural reforms to strengthen Malaysia’s long-term economic prospects,” he added.

Source: Bernama

Malaysia ready for new investment era with clear economic vision – MOF

Malaysia’s strategic position and appeal as an investment destination, supported by a skilled workforce and government policies, were among the topics discussed by Prime Minister Datuk Seri Anwar Ibrahim with potential Chinese investors today.

Anwar, who is on a working visit to China, began the third day of his trip in Shanghai with a dialogue session organised by Khazanah Nasional Bhd (Khazanah) this morning.

The session brought together two Chinese investors, including representatives from Chengwei Capital, a leading venture capital firm with unique expertise and resources in the global semiconductor industry.

He also met with representatives from NRL Capital, a science and engineering company founded by individuals pivotal in the successful development of high-tech industrial clusters across China.

During the meeting, potential collaborations in technology and innovation investments in Malaysia were explored with the investors.

The investors are expected to partner with Khazanah to develop next-generation Malaysian companies and enhance Malaysia’s role in global supply chains, especially within high-tech sectors.

At the same time, Anwar held a closed-door, one-to-one business meeting with several Chinese companies from the banking, energy and chemical sectors.

This includes Bank of China, SinoChem, SICC Co, SEMCORP and Zhejiang Jiahua Energy Chemical Industry Co.

The prime minister also participated in a roundtable session with 24 ‘captains’ of industry.

Anwar is scheduled to depart for Beijing at 4pm today to visit the Huawei Executive Briefing Centre before a courtesy call with President Xi Jinping tomorrow.

The prime minister’s working visit to China is at the invitation of his counterpart, Li Qiang, to attend the 7th China International Import Expo (7th CIIE) in Shanghai.

For 15 years since 2009, China has been Malaysia’s largest trading partner. 

In 2023, total trade with China was valued at RM450.84 billion (US$98.80 billion), contributing 17.1 percent to Malaysia’s global trade.

As of September this year, the total trade was recorded at RM355.15 billion (US$76.72 billion).

In the first half of 2024, a total of 15 manufacturing projects were implemented with investments totalling RM1.2 billion (US$252.5 million).

Source: NST

Anwar highlights Malaysia’s strategic role as investment hub with Chinese investors

Chinese investors and companies are showing greater interest in Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.

“This is a very positive development,” he told Malaysian media after a roundtable session with over 20 industry leaders here today.

The Prime Minister said there were discussions on national policies, including on regulations and investment.

“I see rising enthusiasm and interest (shown by investors and companies from China),” he said.

Asked about potential investments secured during his visit, Anwar said: “We will announce the figure tomorrow.”

He started the day by attending a dialogue with Chinese investors, organised by Khazanah Nasional Bhd.

“It has been exhausting as there have been back-to-back meetings since morning, but I think it is beneficial,” he said.

Separately, the Prime Minister’s Office (PMO) said Anwar engaged in several productive discussions with Chinese investors on the third day of his working visit to China.

The investors include Chengwei Capital, a prominent venture capital firm with proprietary global semiconductor expertise and resources; and NRL Capital, whose founders have played instrumental roles in the successful development of hi-tech industrial clusters in China.

The PMO said the discussions anchored on Malaysia’s centrality and its attractiveness as an investment destination given its talented workforce and supportive government policies.

It said Anwar also discussed potential collaborations with these investors with regard to investing in technology and innovation in Malaysia.

“These investors will look at collaborating with Khazanah Nasional in building next-generation Malaysian companies to further boost Malaysia’s prominence in global supply chains, particularly in high technology sectors.

“This will drive the Madani Economy vision of fostering innovation and making technology more accessible and inclusive to all,” the PMO said in a statement today.

Besides attending the dialogue and roundtable sessions, Anwar also met with several companies in one-to-one business meetings.

They comprised representatives from the Bank of China, SinoChem, SICC Co Ltd, Semcorp, and Zhejiang Jiahua Energy Chemical Industry Co Ltd.

He is set to depart for Beijing this afternoon.

He is accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, and Human Resources Minister Steven Sim Chee Keong.

Anwar’s working visit to China is at the invitation of Premier Li Qiang, to attend the 7th China International Import Expo (CIIE) in Shanghai.

CIIE is a trade fair organised by the China government that provides a platform for countries involved in the Belt and Road Initiative to promote and export goods and services to the country.

For 15 years since 2009, China has been Malaysia’s largest trading partner.

In 2023, total trade with China was valued at RM450.84 billion, contributing to 17.1 per cent of Malaysia’s global trade.

As of September, total trade stood at RM355.15 billion.

In the first half of 2024, 15 manufacturing projects were implemented with investments totalling RM1.2 billion.

This trip marks Anwar’s third visit to China as Prime Minister, after his maiden visit in March 2023 that was followed by another in September the same year.

However, this is his first visit to Shanghai.

His four-day working visit will end in Beijing tomorrow.

Source: Bernama

Anwar sees rising interest in Malaysia among China investors, firms

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has joined Prime Minister Datuk Seri Anwar Ibrahim in congratulating Donald Trump on his victory in the United States (US) presidential election.

Republican candidate Trump, 78, defeated Democrat Kamala Harris in the 2024 US presidential election held on Tuesday.

Tengku Zafrul in his posting on his ‘X’ platform today said that the US and Malaysia have an enduring economic as well as trade partnership.

“The US has consistently been one of Malaysia’s top trading partners and one of the largest investors in our country. Our people-to-people ties, spanning generations, extend across various areas like education, as well as family and friendships.

“I am keen — especially with Malaysia assuming the 2025 Chairmanship of ASEAN — to work with my counterparts in the new administration to strengthen and add mutual benefit to our relationship, whether on a bilateral or multilateral basis,” he said.

Source: Bernama

United States to remain top trading partner, largest investor in Malaysia – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim led a Malaysian delegation in one-on-one meetings with four leading companies in Shanghai before continuing his visit to Beijing today.

The Prime Minister, currently in China, said the sessions started with a meeting with a Bank of China delegation led by its chairman Ge Haijiao.

“Our discussion involves opportunities to strengthen Malaysia-China financial cooperation, including local currency trade settlements.

“This was followed by the petrochemical company Sinochem delegation, led by general manager Liu Chun, who expressed their intention to import chemicals for the manufacture of personal care products, cosmetics and the like, in line with Malaysia’s capabilities and strong network of manufacturers and suppliers, especially in the petrochemicals field,” he said in a post on X (formerly Twitter).

Anwar added that the next meeting was with SICC Co. Ltd, a leading semiconductor company that also expressed its intention to expand into Southeast Asia.

The delegation also met with SEMCORP, the world’s largest manufacturer of lithium-ion separator films, which wants to explore establishing a hub to meet the growing demand for electric vehicle components in the region.

“This series of discussions illustrates Malaysia’s growing attractiveness as a competitive investment destination, and the Madani Government wants to continue to attract quality investments, thereby creating more highly skilled jobs,” he said.

This is Anwar’s maiden visit to Shanghai and his third to China.

The Prime Minister made his maiden visit to the country in March 2023, followed by September the same year.

The four-day working visit will end in Beijing on November 7 and is at the invitation of his counterpart Li Qiang to attend the 7th China International Import Expo.

He was accompanied by Foreign Minister Datuk Seri Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

Meetings with companies in Shanghai an opportunity to attract quality investments — PM

Malaysia is set to launch a new investment incentive scheme by mid-2025, that aims to introduce stricter regulations for foreign investors to meet localisation requirements.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said the ministry is currently working with the Malaysian Investment Development Authority (Mida) and the Ministry of Finance (MOF) to propose the new scheme.

“This aligns with the National Investment Aspirations (NIA), as we will impose stricter rules to ensure that foreign direct investment benefits the local economy,” Liew told the Dewan Rakyat during an oral question-and-answer session on Wednesday.

Liew was responding to Bayan Baru Member of Parliament Sim Tze Tzin, who asked if the government would follow Indonesia’s approach of suspending sales of Apple’s iPhone 16 for allegedly failing to meet domestic content requirements.

In response, Liew stated that Malaysia might not adopt as stringent a measure as Indonesia, given Malaysia’s relatively smaller domestic market compared to the archipelagic state.

Indonesia’s population size exceeds 260 million, while Malaysia’s is just over 34 million.

“In drafting any policy, Malaysia needs to consider both the domestic and international markets,” Liew noted.

Nevertheless, Liew emphasised that under the current policy, Mida requires foreign firms receiving incentives from the authority to adhere to localisation programmes. These requirements include purchasing equipment locally or partnering with local contractors, as part of efforts to boost the domestic economy.

Source: The Edge Malaysia

Liew: Malaysia to introduce stricter localisation requirement for foreign investments

Malaysia should capitalise on the growth opportunities presented by BRICS while addressing the challenges ahead to enhance its competitiveness on the global stage, say industrialists.

Small and Medium Enterprises Association of Malaysia (Samenta) national president Datuk William Ng foresees a significant increase in trade missions, coupled with enhanced diplomatic and economic representation, following the country’s admission as a partner nation of BRICS.

He believes this will lead to greater overall trade and investment opportunities within the international bloc.

“Our inclusion as a partner country is an important first step in that direction. It offers Malaysian businesses greater opportunities in member countries that go beyond free trade agreements.

“It will also reinforce Malaysia’s standing as a non-aligned economy in an increasingly polarised world,” he said.

BRICS, originally comprising Brazil, Russia, India and China, was established in 2009 as a cooperation platform for emerging economies, with South Africa joining in 2010.

The grouping has since expanded to include Iran, Egypt, Ethiopia and the United Arab Emirates.

This year, Malaysia has been one of 13 nations officially added as a partner country to the bloc that collectively accounts for one-fifth of the global trade.

The other 12 are Indonesia, Thailand, Vietnam, Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkiye, Uganda and Uzbekistan.

However, none of these countries have achieved full membership yet.

Looking ahead, Ng called for efforts to reduce non-tariff barriers among BRICS member and partner economies to encourage a smoother flow of people and goods.

“One low-hanging fruit to achieve is to negotiate visa-free movement across the bloc, if not for all travellers, then at least for business purposes.

“With the expected greater business exchanges via trade missions and perhaps the ‘upgrading’ of diplomatic and economic representations, we hope to see more trade and investments across the bloc,” he said.

Federation of Malaysian Manufacturers Penang (FMM Penang) chairman Datuk Seri Lee Teong Li said while Malaysia’s participation in BRICS presents exciting new opportunities, it also brings a set of challenges that need to be carefully considered.

“The business community feels cautiously optimistic but recognises the potential benefits and preparations for competitive challenges.

“There would be access to new market and trade opportunities, as BRICS membership could open doors for Malaysian businesses to access new and diverse markets in major economies like Brazil, Russia, India, China and South Africa, which collectively have substantial demand for various goods and services,” he said.

Lee also noted that Malaysia can reduce reliance on traditional trade partners.

“We can expect an increase in foreign direct investment (FDI), with member countries looking to expand in South-East Asia, and this will benefit local industries through capital inflow, technology transfer and job creation.”

He added that if BRICS pursues a shared currency or alternative trade mechanisms, local companies might benefit from lower transaction costs and reduce dependence on volatile currency exchange rates to enhance trade stability.However, Lee said regulatory and cultural differences are aspects to be looked into.

“Entering BRICS markets requires navigating varied regulations, business practices and cultural differences.

“Businesses may need support in these areas to fully capitalise on BRICS opportunities,” he said.

BRICS represents about 40% of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion, or 26.2% of the world’s GDP, nearly matching the economic strength of the Group of Seven (G7).

Source: The Star

‘BRICS set to bring more opportunities and competition’