The Ministry of Investment, Trade and Industry (Miti) has reported potential exports worth RM3.3 billion from the three-day trade and investment mission to Vietnam from July 8-10.

The mission was led by Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, supported by senior representatives from Malaysia External Trade Development Corporation (Matrade) and Malaysian Investment Development Authority (Mida).

In a statement today, Tengku Zafrul said the mission serves as a catalyst for expanding and initiating strategic business-to-business partnerships between Malaysian and Vietnamese entities while strengthening bilateral cooperation between the two nations.

“We are pleased with the RM3.3 billion potential exports from our brief mission to Vietnam. The next thing is to ensure that we follow up on realising these commitments quickly and efficiently to support our gross domestic product growth and create job opportunities for our people,” he said.

Miti said 14 Vietnamese companies have committed to sourcing Malaysian products, including electrical and electronics, palm oil, chemicals and petrochemicals, iron and steel, food and beverages, as well as fast-moving consumer goods.

“The encouraging outcome facilitated by Matrade reflects the growing momentum in economic ties between Malaysia and Vietnam, highlighting mutually beneficial opportunities for business communities in both countries,” it said.

During the trade mission, Tengku Zafrul met with key state officials, including Vietnam’s Prime Minister, Phạm Minh Chính; Minister of Planning and Investment, Nguyen Chi Dzung; and Minister of Industry and Trade, Nguyen Hong Dien.

Tengku Zafrul and Nguyen Hong Dien co-chaired the Fourth Malaysia-Vietnam Joint Trade Committee Meeting (4th JTC) in Hanoi on July 9, which was preceded by the Senior Officials Meeting on July 8.

“The 4th JTC focused on several key deliverables to advance Malaysia-Vietnam economic ties, including cooperation in the Halal industry, where Malaysia would assist Vietnam on Halal standards, compliance assessment and accreditation.

“The meeting also discussed possible collaborations in green economy, such as in the electric vehicle sector between the Malaysia Automotive, Robotics and IoT Institute and potential partners from the Vietnamese public and private sectors; as well as renewable energy, particularly offshore and onshore wind power,” it said.

The parties also spoke about Malaysia’s Asean chairmanship in 2025.

“Vietnam expressed its support to Malaysia in propelling Asean’s economic integration efforts to greater heights through the Priority Economic Deliverables during Malaysia’s hosting year,” it added.

Last year, Vietnam was Malaysia’s 11th largest trading partner while Malaysia was Vietnam’s 10th largest trading partner globally, with a total trade volume of US$17.38 billion (RM79.42 billion).

Source: Bernama

MITI: RM3b potential exports from trade, investment mission to Vietnam

The Johor-Singapore Special Economic Zone (JS-SEZ) can be a platform to position Malaysia as a competitor to shift the focus of investments to Johor and Singapore from Vietnam, said Economy Minister Rafizi Ramli.

He said JS-SEZ is attractive to international companies that want to find a way to deal with their geopolitical risks and establish a foothold in Southeast Asia.

“ThE JS-SEZ is not only focused on companies from Singapore, but the greater potential is for companies from all over the world to come to Johor as they can have the best of both worlds.

“They can have the sophistication of Singapore, yet they can leverage the resource and cost advantages of Johor.

“Previously, the destination that was the focus of these companies was Vietnam, so with the JS-SEZ, we can position Malaysia as a competitor to divert investments that previously went to Vietnam, to Johor and Singapore instead,” he said during an information session on JS-SEZ at the Dewan Rakyat today.

Rafizi said JS-SEZ’s focus is on sectors in line with the government’s current policies that are high-value and technology-based, as outlined through the National Energy Transition Roadmap, the New Industrial Master Plan 2030, and the 12th Malaysia Plan.

The JS-SEZ will cover ​​Iskandar Malaysia, including the 3,505sq km area under the administration of the Pengerang Municipal Council.

JS-SEZ will include Johor areas under the Iskandar Puteri City Council, Johor Bahru City Council, Pasir Gudang City Council, Kulai Municipal Council, Pengerang Municipal Council, and part of the Pontian Municipal Council.

The JS-SEZ is in its final stages, paving the way for a joint agreement expected to be signed in September.

The Johor and federal governments are working together to ensure JS-SEZ can attract global investors, especially involving private equity and venture capital.

Source: Bernama

Rafizi says JS-SEZ can shift investment from Vietnam to Malaysia and Singapore

JP Morgan has upgraded Malaysia’s rating from underweight to neutral after almost six years, crediting the country’s policy reforms, data centre investments and infrastructure build-up.

In an interview with CNBC yesterday, JP Morgan head of Asia-Pacific (ex-Japan/China), Rajiv Batra said Malaysia’s rapid pace of progress was impressive with a 4.2 per cent gross domestic product growth in the first quarter of 2024.

“What was more exciting for us was that all the signs were evident last year. Earnings growth almost tracking a 10-11 percent mark was an upside surprise. We need to give credit to the country, and hence we upgraded our rating to neutral,” he said.

Rajiv also spoke about how Malaysia took bold measures in rationalising subsidies, including the recent one on diesel, and highlighted that those who are in need are given monthly cash assistance.

“The people also realise that the money saved on subsidies will be used for productive economic purposes, be it in literacy, re-skilling people, or the progressive wage policies, which Malaysia has tried to take inspiration from Singapore,” he said.

He said the current government, which has been in power for one and a half years, are ‘walking the talk’.

Among others, he said the government has passed some difficult policies and reforms, citing the launch of the National Energy Transition Roadmap (NETR) and New Industrial Masterplan (NIMP) 2030.

“Most importantly, they went ahead with fiscal consolidation while not sacrificing growth, targeting a growth of 5.0 per cent.

“Look at ASEAN this year, which suffered US$7 billion outflows in ASEAN equities. Malaysia also started on a low note with close to US$150 million to US$160 million outflow in the first quarter, but in the second quarter, foreign investors are back with around US$200 million,” said Rajiv.

He said besides a string of data centre investments, Malaysia’s journey in the electric vehicle segment as well as green energy is commendable as well.

“Taking all these factors into account, foreign investors are seeing that there are multiple sectors and ideas to play over there,” he said.

He added that Malaysia is also one of the big markets in terms of market capitalisation, like Singapore, Indonesia and Thailand.

“We are seeing foreign investors taking some baby steps, but the foreign ownership level is still at only 19 per cent, and has not reached its potential peak of 35-40 per cent yet,” said Rajiv.

Source: Bernama

JP Morgan upgrades Malaysia’s rating: ‘Rapid pace of progress was impressive’

The ‘Greater Together: Two Economies, One EcoSystem’ report at the Johor-Singapore Special Economic Zone (JS-SEZ) Joint Investor Forum today revealed that 93 per cent of Singaporean businesses are eager to invest further in the Malaysian state.

This was based on findings from engagement with 160 Singaporean businesses across various sectors.

“The enthusiastic response to our report clearly signals the JS-SEZ’s great potential for our region. This isn’t just another project — it’s a potential game-changer for both Malaysia and Singapore,” said Teo Siong Seng, chairman of JS-SEZ Singapore Business Working Group.

“By bridging our economies, we’re creating new opportunities that will benefit businesses on both sides of the Causeway, he added.

The working group said the SEZ could leverage on Johor’s favourable operating costs and land availability, supported by Singapore’s strength in connectivity, branding and talent pool. Sectors to be targeted include manufacturing, logistics, digital services, healthcare, education and more.

However, the group conceded that some challenges remain, including gaps in manpower and the ease of movement between Singapore and Johor.

Yesterday, Economy Minister Rafizi Ramli said the Malaysian government is aiming to conclude negotiations with Singapore on the JS-SEZ by September, calling the project a “game-changer” for bilateral ties between the two countries.

The JS-SEZ will be located in Malaysia’s Iskandar region, and could cover an area of over 3,000km sq km, four times the size of Singapore.

The Malaysian government is promoting the zone as an investment magnet to boost sectors like electronics, health care and ancillary services for finance and business.

Source: Malay Mail

Trade group says nine in 10 Singapore firms bullish on special economic zone with Johor

The progress status of the East Coast Rail Link (ECRL) project in Kelantan has reached 79.81% as of May 2024, according to the Ministry of Transport (MoT).

The MoT said the progress of the work involved the bridge structures where 428 out of 468 beam launching spans had been installed on the main line and construction work for both stations in Kelantan had also started.

“In addition, track installation work in Kelantan is expected to begin in the fourth quarter of 2024 using a track laying machine,“ the ministry said on the parliament website on Wednesday in a written reply to a question from Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh) who wanted to know the progress status of the ECRL project, especially for the state of Kelantan and what is the plan to ensure the positive impact of the project will provide an economic spillover to the local population when it starts operating later.

The 665-kilometre ECRL project is a rail infrastructure project that will connect the states on the East Coast with the West Coast of Peninsular Malaysia, namely Kelantan, Terengganu, Pahang and Selangor.

As of May 2024, the overall progress status of this project has reached 67.09%.

The MoT said PLANMalaysia, through the East Coast Rail Line Integrated Land Use Master Plan (PeGTaECRL), will map out the land use development along the ECRL alignment and around the station including the development of the Economic Accelerator Project (EAP) investment.

“The detailed proposed plan in the PeGTaECRL for Kelantan involves two ECRL stations, namely the Kota Bharu and Pasir Puteh stations.

“Among the main proposals for the ECRL stations in Kelantan are the development of Bandar Baru Tunjong which is a new township for the Ketereh area, while in Pasir Puteh is the proposed development of a logistics hub as well as the proposed land port in Bandar Baru Tok Bali which will strengthen the Pasir Puteh station as a cargo hub for Kelantan and northern Terengganu,“ according to the MoT.

Source: Bernama

ECRL project work progress status in Kelantan at 79.81% as of May 2024 – MoT

Prime Minister Datuk Seri Anwar Ibrahim’s efforts in attracting high-value sectors like semiconductor fabrication and digital technology, expedite foreign direct investment approvals, and improve the ease of doing business have significant implications for both Malaysia and the broader Asian region.

Forbes quoted the University of Reading’s Henley Business School leadership professor Benjamin Laker as saying that significant investments have been attracted in high-value sectors such as semiconductor fabrication and digital technology.

“By focusing on sectors with high growth potential and technological advancement, Malaysia aims to ascend the global value chain and foster a more dynamic and competitive economy,” he said in a commentary published by the magazine on its website yesterday.

Measures to boost investment quality focus on labour productivity through automation and increased spending on research and development.

“These initiatives are designed to create a more innovation-driven economy — reducing reliance on low-skilled labour and enhancing overall productivity. These reforms have significant implications for both Malaysia and the broader Asian region,” Laker said.

He also commended Anwar’s measures on the cost optimisation front, especially the rationalisation of subsidies and managing civil service costs.

“Transitioning new civil servants to the Employees Provident Fund scheme — projected to reduce long-term pension costs — was a significant step.

“This move aimed to alleviate the financial burden on the government by shifting future pension liabilities to a more sustainable model,” Laker said.

Additionally, the enactment of the Public Finance and Fiscal Responsibility Act institutionalised prudent fiscal management with targets for a three per cent fiscal deficit and a 60 per cent debt-to-Gross Domestic Product ratio.

This legislative framework is intended to ensure that Malaysia’s fiscal policies remain sustainable in the long run, providing a stable economic environment conducive to growth, he wrote.

Nonetheless, he said challenges persist, sighting potential setbacks, like the attempt to retarget petrol subsidies and high living costs linked to other recent subsidy cuts.

Yet Laker opined that Malaysia’s journey could set a precedent for other nations navigating similar post-pandemic recoveries and structural transformations.

Source: Bernama

PM’s reform to attract investments has significant impact on Malaysia, Asia

After almost six years of maintaining an “underweight” rating on Malaysia, JP Morgan has upgraded its stance on the country to “neutral”, according to a recent CNBC interview with Rajiv Batra, its head of Asia-Pacific (ex-Japan/China) equity strategy.

The decision was driven by several key factors, including policy reforms, data-centred investments, and a significant infrastructure buildout. 

“What was more exciting for us were all the signs that were in the making last year,” Rajiv told CNBC.

He said the pace of progress in Malaysia has been surprising, with the country recording a 4.2% gross domestic product (GDP) growth in the first quarter of this year, and earnings growth tracking around 10% to 11%.

This positive economic performance warranted a re-evaluation and a subsequent upgrade. 

“We need to give credit to the country,” Rajiv added.

One of the bold steps taken by the Malaysian administration was cutting subsidies, a move often considered controversial and sensitive.

Rajiv noted that the savings from these subsidy cuts are being redirected towards productive uses in the economy, enhancing literacy, reskilling people, and implementing progressive wage policies. 

He added that Malaysia is taking inspiration from Singapore in this regard.

“This money will go for productive uses in the economy,” Rajiv said.

The upgrade in Malaysia’s rating is also reflective of a governance reset in the wake of the 1Malaysia Development Bhd (1MDB) scandal. 

The government has made significant strides in passing pivotal policies and reforms, including the National Energy (NE) transition and the Madani economy budget. 

The administration remains committed to fiscal consolidation without sacrificing growth, aiming for a 5% growth rate.

Foreign money is coming back to Malaysia

The changing perception among international investors is evident, as Malaysia has seen foreign investors returning after initial outflows.

“We suffered (US$)7 billion outflows in Asean equities this year. Malaysia started with around (US$)150 (million) to (US$)160 million outflows in the first quarter, but saw a return of (US$)200 million in the second quarter,” said Rajiv.

Notably, year-to-date, the bellwether index FBMKLCI has gained 11%, while FBM70 is up 28%.

Meanwhile, the ringgit has strengthen more than 2% against the US dollar from its over two-decade low in February.

The increased interest is further demonstrated by Rajiv’s own observations during recent travels.

“People are warming up to Malaysia and asking where they should invest,” he added.

Malaysia, which had fallen off the radar for many foreign investors, is now attracting attention once again. 

One reason for this renewed interest is Malaysia’s potential as a technology hub. 

“Foreign money is starting to come back to Malaysia,” Rajiv said, noting the interest in sectors like chip packaging in Penang, data centres, electric vehicles (EVs), green energy and solar projects.

Foreign investors are recognising the multiple themes and sectors that Malaysia has to offer. 

Considering Malaysia’s substantial market capitalisation, comparable to Singapore, Indonesia and Thailand, it is becoming a more attractive destination for foreign investment. 

“Foreign investors are taking baby steps and putting money in,” he said, although the foreign ownership level remains at only 19%, not yet peaking at the 35% to 40% levels.

Rajiv said JP Morgan’s upgrade reflects a combination of economic growth, effective policy implementation and improving governance, making Malaysia a more promising investment destination. 

Source: The Edge Malaysia

JP Morgan upgrades Malaysia amid economic reforms, renewed investor confidence, data-centred investments — interview

Brazil is looking to increase bilateral trade and investment with Malaysia, mainly in the renewable energy and oil and gas sectors, said its top envoy.

The energy sector has been a mutual investment in strengthening the ties between Brazil and Malaysia, said Brazilian Ambassador to Malaysia Ary Norton de Murat Quintella at the Brazil-Malaysia Energy and Investment Forum on Wednesday.

“We stand ready to work to increase Malaysian investments in Brazil, as well as to increase Brazilian investments in Malaysia,” he said.

Malaysia was the 14th biggest market for Brazil in 2023, according to Quintella. Malaysia’s exports to Brazil grew 7.2% year-on-year to RM5 billion in 2023, Malaysia External Trade Development Corp (Matrade) data showed.

State energy firm Petroliam Nasional Bhd or Petronas has invested more than 24 billion Brazilian reais (RM22.93 billion) in Brazil. Companies like Yinson Holdings Bhd (KL:YINSON) and Sapura Energy Bhd (KL:SAPNRG) also operate production vessels in Brazil.

Prime Minister Datuk Seri Anwar Ibrahim is planning to visit Brazilian President Luis Inacio Lula da Silva in November, which Quintella said would be an opportunity to develop dialogue in the energy sector.

“By having all the important actors in government and industry present in Brazil, we can take further steps to increase [investment in] the energy sector,” he said. “We can encourage, deepen, and forge partnerships.”

On Tuesday, Anwar told the Dewan Rakyat that Malaysia is likely to be admitted into intergovernmental organisation BRICS (which comprised Brazil, Russia, India, China and South Africa initially) as a ‘partner country’ soon.

This came after Anwar’s phone call with Lula in February, which among the discussion was Malaysia’s wish to join BRICS.

BRICS was originally conceived as an investment idea by a Goldman Sachs economist, before it was turned into an actual geopolitical bloc in 2009. South Africa joined a year later, before it was expanded by including new members Iran, Egypt, Ethiopia, and the United Arab Emirates.

Source: The Edge Malaysia

Brazil looks to expand energy trade and investment in Malaysia, says top envoy

Prime Minister Datuk Seri Anwar Ibrahim’s official visits to several foreign countries had managed to generate potential investment value of RM353.6 billion in 2023 and RM77.58 billion from January to May 2024.

According to Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa, the prime minister has made 31 official visits and working visits to 19 countries from November 2022 until May 2024.

“Among the countries visited by the prime minister and the government delegation are Saudi Arabia, Australia, Brunei Darussalam, United Arab Emirates, the Philippines, Indonesia, Japan, Germany, Kazakhstan, Cambodia, Egypt, Laos, China, Singapore, Thailand, Turkiye, Uzbekistan, Vietnam and Qatar,“ she said in a written reply published on the parliament’s website on Wednesday to a question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) who wanted to know the details of the prime minister’s official visits and the amount of investments successfully brought to Malaysia.

Zaliha said they included attending scheduled conferences and meetings at the international level which were also attended by world leaders.

“The mission and purpose of the prime minister’s official visits and working visits were to convince potential investors to invest in Malaysia in addition to strengthening, deepening and expanding bilateral cooperation between Malaysia and these countries and fostering a better understanding between the countries,” she said.

Zaliha said the purpose of Anwar’s visits was also to strengthen and boost diplomatic relations and cooperation with the countries involved as well as position Malaysia as a country that practises transparent and open economic principles.

“For example, the diplomatic relations and close cooperation between Malaysia and China, which has now reached 50 years, had been expressed through the signing of memorandums of understanding and agreements in various economic sectors which will have a positive impact on the country’s economic development,“ she said.

Source: Bernama

Anwar’s official visits abroad generate potential investments of RM353.6 bln in 2023, RM77.58 bln from January to May 2024

Malaysia, and by extension, Selangor, has become a favourite among international investors due to its multilingual population and sizeable pool of skilled workers.

State executive councillor for trade, investment and mobility Ng Sze Han said these aspects have helped expand the Selangor economy, particularly in such advanced industries as aviation.

“From studies and engagement sessions, it was found that Malaysia is a hot favourite for foreign investors in Southeast Asia due to skilled labour and (workers’) proficiency in various languages, especially English,” he told the State Legislative Assembly here today.

Ng reiterated the state government’s aspiration to make Selangor a major industrial hub for Southeast Asia, especially in aerospace.

To achieve this, he said, the state has enacted the Selangor Aerospace Action Plan 2020-2030 as well as several game-changing projects, such as the Selangor Aero Park (SAP) and strategic partnerships with international aviation players.

Ng said the SAP, which is one of several high-impact projects in the First Selangor Plan, aims to provide an environment conducive to research, development and innovation.

“The state government is refining aerospace-related incentives for industry players within the SAP ecosystem.

“This is crucial to ensure industry players remain committed to participating in the SAP, thereby creating quality job opportunities for local residents,” he said during the question-and-answer session.

Ng was responding to a question from Bandar Baru Klang assemblyman Dr Quah Perng Fei about the state government’s moves to expand Selangor’s aviation industry.

He emphasised the state’s efforts to meet the growing demand for skilled workers in the aerospace industry.

Referring to the 12th Malaysia Plan and Malaysian Aerospace Industry Blueprint 2030, he noted that 32,000 skilled workers will be required to meet the demands of the nation’s aviation and aerospace industries12.

“For example, Singapore Airlines’ engineering (arm) requires 600 employees for its new facility in development in Subang, while Malaysia Airlines’ engineering arm needs about 300 employees this year alone.

“This indicates a positive trajectory for Malaysia and the state’s aerospace economy. The state government will take more proactive steps to supply skilled labour and promote and provide incentives to local youth to engage in this industry,” he said.

Ng said the state government has initiated the Selangor Aerospace Apprenticeship Programme, among other plans, to retain Selangor talent and enhance their skills.

He added that the Rumah Selangorku initiative will provide affordable housing for skilled workers, further incentivising them to remain in the state.

“While we strive to retain skilled labour in Selangor, we are seeing a positive trend of skilled workers returning from overseas due to personal and family factors, and because Malaysia is their home.”

Source: Selangor Journal

Multilingual workforce make Selangor investors’ top choice

Malaysia’s good relations with the member countries of BRICS (Brazil, Russia, India, China and South Africa) will enable Malaysia to become a “partner country” soon with the trade grouping, said Prime Minister Datuk Seri Anwar Ibrahim.

He said in that context, Malaysia will be known as a BRICS “new partner country” before Malaysia finalises its participation.

“There is a possibility that Malaysia’s application to join BRICS will take some time, but with good relations with member countries, there is a possibility that we can become a ‘country partner’ as (part of) a BRICS partner country model or as a new partner country.

“In discussions with the Ministry of Foreign Affairs, MITI (Ministry of Investment, Trade and Industry), and the council of ministers, we feel that there is wisdom and a need for us to be together in this new BRICS framework,“ he said during the minister’s question time at the Dewan Rakyat today in response to an additional question from Lee Chuan How (PH-Ipoh Timor) regarding the mechanism that will be taken by the government toward BRICS membership.

He also said that the participation does not conflict with Malaysia’s foreign policy and that the government takes the approach of an independent country and that it is important to establish relations with all parties. “We also take note of the current economic situation where economic strength is no longer unipolar depending on just one big country, the United States,“ he added.

Anwar said preliminary assessments showed that Malaysia’s participation in BRICS has the potential to gain various benefits, particularly in improving trade and export performance, as well as strengthening the country’s economic resilience.

“Cumulatively, the gross domestic product (GDP) of BRICS member countries amounted to US$26.6 trillion, which is 26.2 per cent of the world’s GDP, which is almost the same as the economic strength of the G7 countries. The economic strength of the BRICS member countries as a bloc will help increase international trade among the member countries,“ he continued.

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

“BRICS indeed has great potential to become a world economic power and this will certainly bring good things and contribute to Malaysia’s economic growth in the long term,“ he added.

On June 18, Anwar confirmed that he had expressed the intention to join BRICS to the President of Brazil, Luiz Inacio Lula da Silva.

BRICS was established in 2009 as a cooperation platform for emerging economies comprising Brazil, Russia, India and China with South Africa joining the group in 2010. In January 2024, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE) joined the organisation as new members.

Source: Bernama

Malaysia can become partner country of BRICS first – PM Anwar

A group of investors from Zhejiang Province, China are in Sabah to explore bilateral trade and investment cooperation. They held discussions with Sabah China Chamber of Commerce (SCCC), aiming to boost economic development in Sabah and Zhejiang and foster cultural and commercial exchanges.

SCCC hosted a banquet on Friday night at the Horizon Hotel here to welcome the business leaders from Zhejiang Province.

Among the guests were Li Wei, chairman of Honeycomb Aerospace Technologies (Beijing); Wang Jianwu, Finance Director of Honeycomb Aerospace Technologies (Beijing) and general manager of Hangzhou Honeycomb Aerospace Technologies investment advisor, Feng Jing; Vice President of Malaysia-China Cities Friendship Association, Jeffrey Kok and Zhou Yichao, chairman of Zhejiang Yongheng Household Co., Ltd.
The delegation arrived in Sabah a few days ago for inspection and business networking activities.

SCCC president Datuk Frankie Liew, who recently visited Zhejiang and toured the facilities of Honeycomb Aerospace Technologies, was happy with the prompt return visit by the Zhejiang team, which he saw as evidence of Sabah’s potential as a promising destination for entrepreneurs to explore business opportunities.

Liew highlighted the significant attention and support from the Sabah state government and business community for the visit by Zhejiang investors.

Key government departments and institutional representatives have met with the delegation, and visits to several major industrial parks have been arranged over the coming days.

He believes that this visit will provide Zhejiang investors with an initial understanding of Sabah’s economic and commercial landscape, inspiring future bilateral trade and investment cooperation.

“We conduct business with integrity and build genuine friendships. Even if business deals do not materialize in the short term, our sincere friendship endures. With honest communication and a shared commitment to cooperative and mutually beneficial goals, I believe there are opportunities for collaboration and development,” said Liew

He also expressed gratitude to Invest Sabah Bhd for their careful arrangements and efforts to facilitate exchanges between SCCC and local businesses, resulting in numerous significant cooperation opportunities. He thanked them once again for their support.

Both parties would hold a formal exchange meeting  today and discuss potential cooperative projects and directions.

The dinner was attended by several key members of the SCCC including Vice President Datuk Kevin Lim, JP and Datuk Jonathan Koh, JP, Secretary General Ir. Ts. KJ Tan, JP, Vice President cum Young Entrepreneurs Chairman Chiew Heng Hock, Vice President cum Women Entrepreneur Chairlady Tan Siew Ling and committee members.

Deputy Chairman of Invest Sabah Berhad, George Wong and marketing manager Jaccie Koh also attended the banquet.

Source: Borneo Post

Zhejiang investors explore cooperation in Sabah

The value of Malaysia’s halal exports reached RM54 billion in 2023, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz

He said the halal industry plays a vital role as a catalyst for the country’s economic growth, and the sector has tremendous potential to grow as the global halal industry, including both products and services, is expected to hit US$5 trillion by 2030. (US$1 = RM4.71)

The minister said that the government is committed to increasing the number of entrepreneurs producing halal products, and several approaches have been taken, including the Jelajah Halal Malaysia (JHM) programme carried out by its agency, the Halal Development Corporation Bhd (HDC)

“JHM aims to help micro, small and medium industries (MSMEs) gain exposure to opportunities to penetrate domestic and export markets in the halal industry.

“Since the JHM programme’s inception in 2022, more than 1,800 MSMEs have successfully participated in the programme,“ he said in his speech at the Jelajah Halal Malaysia@Paya Besar event here today.

The event was also attended by Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.

Tengku Zafrul said the HDC assisted 15 entrepreneurs in placing their products at the Mydin Tunjong Hypermarket through a business matching session at a previous JHM programme in Kota Bahru, Kelantan.

Commenting on Pahang’s halal sector, he said the Department of Islamic Development Malaysia (JAKIM) has informed him that 158 companies in the state hold halal certification as at July 1, 2024.

“Nevertheless, I am certain the (Pahang) state government and the Pahang Islamic Religious and Malay Customs Council (MUIP) have initiated various programmes to elevate food and beverage companies so that they can obtain halal certification,“ he said.

Tengku Zafrul also acknowledged that several locations have the potential to be developed and contribute to the economic development of their residents; the Ministry of Investment, Trade and Industry (MITI) is prepared to offer its services to improve the local economy, especially in the halal industry.

Meanwhile, HDC chairman Khairul Azwan said Paya Besar is the first JHM event this year, and the following events will be held in Sabah at the end of July and Penang in October.

He said the JHM programme is part of HDC’s responsibility to prepare entrepreneurs to expand their businesses until they are able to export their products to the global market.

“This (JHM programme) is a platform for local MSMEs to obtain the information and skills to expand their capabilities as a company that can grow beyond their current scope,“ he said.

More than 200 participants attended the JHM@Paya Besar, and local entrepreneurs were provided with the latest information on opportunities in the halal industry. They also received assistance in Islamic banking and takaful products, as well as information on halal certification and halal development and training.

Source: Bernama

Malaysia’s Halal exports reach RM54b in 2023 – Tengku Zafrul

Selangor’s success in leading the contribution to the country’s gross domestic product (GDP) proves the confidence of both local and foreign investors in the efficiency of the state administration.

Dusun Tua state assemblyman Datuk Johan Abd Aziz said this achievement is impressive, but Selangor must return the profits and benefits accrued to the people so all layers of society may enjoy it.

“This achievement is very impressive, but it must be remembered that the state government needs to give back to the people, from infants to the elderly.

“This can be provided either in the form of comfortable public infrastructure facilities or programmes and initiatives that can be felt comprehensively in line with the aspirations of the Madani (Federal) government,” he said.

Johan was speaking to SelangorKini after the debate on the presentation of the First Selangor Plan’s (RS-1) Mid-Term Review at the Selangor State Legislative Assembly session today.

On Tuesday (July 2), the Department of Statistics Malaysia published a report stating that Selangor remains the country’s highest contributor to its GDP, accounting for 25.9 percent last year.

Increasing by 0.4 percent compared to 2022, Selangor’s economic value also reached RM406.1 billion for the first time, making it the first state in Malaysia to exceed the RM400 billion threshold.

Meanwhile, the representative suggested a detailed study of the management of solid waste in rural areas in Hulu Langat and in Selangor overall.

He said waste disposal locations, especially in villages, are not well managed, which contributes to environmental pollution.

“The existence of illegal dumping sites is also due to unclear management systems between local authorities and residents,” Johan said.

Source: Selangor Journal

Selangor heading national GDP contributions is proof of investors’ confidence — State rep

Malaysia and Thailand have agreed to set up a joint task force focusing on streamlining border trade and investments in both countries to achieve US$30 billion (RM141.29 billion) in bilateral trade by 2027.

The decision on the task force was made at the joint trade committee (JTC) meeting between Malaysia and Thailand hosted by Malaysian Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz here on Wednesday. Meanwhile, Thailand was represented by its deputy Prime Minister and Commerce minister Phumtham Wechayachai.

In the past seven years (2017-2023), trade between Malaysia and Thailand averaged US$24.73 billion per annum, recording the highest value in 2022, at US$27.74 billion, according to the Ministry of Investment, Trade and Industry (Miti) in a statement on Thursday.

“Although bilateral trade in 2023 decreased to US$24.83 billion in line with slower global trade, Malaysia was still Thailand’s largest trading partner in Asean.” Miti said.

It said that the task force aims to increase cross-border connectivity between both countries and facilitate imports and exports of agricultural products and explore cooperation in various fields such as rubber, land transport and connectivity, entrepreneurship, franchise, agriculture and digital environment.

Both countries also agreed to continue collaboration in promoting halal products through export promotional activities.

As for Malaysia’s Asean Chairmanship in 2025, both countries expressed confidence that the Asean Community Vision 2045 and the Asean Economic Community (AEC) Strategic Plan 2026-2030 will be finalised by 2025.

Source: The Edge Malaysia

Malaysia, Thailand to set up joint task force to boost bilateral trade to US$30 bil by 2027

The services and manufacturing sectors remained as the primary drivers of Malaysia’s economy for 2023, contributing a cumulative 82.6 per cent to the total gross domestic product (GDP).

According to the Statistics Department of Malaysia (DOSM), the services sector which constitutes 59.2 per cent of the national GDP, grew by 5.1 per cent from the previous year.

DOSM said the performance was supported by strong growth in key subsectors such as wholesale & retail trade (5.9 per cent), transport & storage, (13.8 per cent) and food & beverage and accommodation (7.7 per cent).

“Five states experienced growth rates surpassing the national level, specifically Selangor (6.1 per cent), Pahang (6.0 per cent), Pulau Pinang (6.0 per cent), Sarawak (5.4 per cent), and Johor (5.4 per cent),” it said.

The states contributing the most to the services sector were Selangor, Kuala Lumpur, Johor, Pulau Pinang, Sarawak and Perak.

Meanwhile, DOSM said the manufacturing sector contributed 23.4 per cent to the national GDP,showing marginal growth of 0.7 per cent as compared to 8.1 per cent in 2022.

Selangor led the sector’s growth with 2.0 per cent followed by Johor, which grew by 2.8 per cent.

Selangor, Pulau Pinang, Johor and Sarawak posted double-digit contributions to the sector in 2023.

While Negri Sembilan and Melaka were also significant contributors at 5.4 per cent and 4.6 of the sector’s GDP contribution.

As for the agriculture sector, DOSM said the sector constituted the third largest share of the national GDP in 2023, experienced a slight increase of 0.7 per cent.

It said Pahang emerged as the leading performer in this sector, achieving a growth of 2.5 per cent followed by Sarawak with a growth rate of 2.0 per cent, and Melaka with an increase of 6.5 per cent.

Lastly, for the mining & quarrying sector, DOSM said this sector accounted for 6.2 per cent to the national GDP in 2023, lowest among all sectors.

DOSM said the sector showed a modest growth of 0.5 per cent.

“The weak global demand for crude oil, coupled with a series of geopolitical conflicts that caused a drop in world crude oil prices, has negatively impacted the two states that dominate the sector,” it said.

“The two states are Sabah and Sarawak, resulting in negative growth of -5.2 per cent and -1.0 per cent, respectively,” it added.

Source: NST

Services, manufacturing made up 82.6 per cent of economy in 2023

China is interested in collaborating with Malaysia in the halal industry, covering certification, services, and halal products, said Deputy Foreign Minister Datuk Mohamad Alamin.

He said the matter was conveyed by Premier Li Qiang during a meeting with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi during the latter’s official visit to China recently.

“During a courtesy call on Premier Li Qiang, the Deputy Prime Minister took the opportunity to inform him about the global halal industry, which was worth US$3.1 trillion in 2018 and is growing by 4.1 per cent every year and is expected to reach US$5 trillion in 2030,“ he said.

Mohamad told the Dewan Rakyat this today in response to a question from Tan Kok Wai (PH-Cheras) about the outcome of Ahmad Zahid’s to China in conjunction with the 50th anniversary of Malaysia-China bilateral relations.

Mohamad said that during the visit, Ahmad Zahid, who is also the Minister of Rural and Regional Development, took the opportunity to explore cooperation opportunities between Malaysia and China, in Technical and Vocational Education Training, connectivity and people-to-people relations.

“The two leaders also exchanged views on regional and international issues involving mutual interests including the fields of high technology, renewable energy, digital economy and semi-conductors,” he added.

According to him, overall, the official visit succeeded in achieving the goal of strengthening bilateral relations and maintaining the existing understanding between Malaysia and China.

Meanwhile, in response to a supplementary question from Zakri Hassan (PN-Kangsar) on the South China Sea issue, Mohamad said Malaysia is firm in defending the country’s sovereignty and will use all available platforms to negotiate with China, which is reported to have deployed its warships to the area.

“We will not compromise on sovereignty and will use existing mechanisms to continue negotiations including on the Code of Conduct (COC) dealing with the South China Sea issue,“ he said.

Source: Bernama

China keen to collaborate with Malaysia in halal industry

The state contributing the most to Malaysia’s gross domestic product (GDP) was also the fastest growing in 2023.

Selangor contributed the lion share of GDP at 25.9 per cent, or RM406.1 billion, for 2023, according to the Department of Statistics of Malaysia (DOSM).

It also surpassed national growth, with a 5.4 per cent increase in 2023.

Malaysia’s GDP moderated to 3.6 per cent in 2023.

The services sector, led the economy, grew by 6.1 per cent (2022: 13.6 [per cent), supported by wholesale & retail trade, accommodation, food & beverage, as well as utilities, transport, and information comunication technology (ICT). The manufacturing sector moderated to 2.0 per cent growth (2022: 9.0 per cent), supported by vegetable and animal oils & fats, food processing, beverages and tobacco products, as well as non-metallic products, basic metals, and fabricated metal products.

Meanwhile, the construction sector strengthened to 10.2 per cent (2022: 4.2 per cent) driven by all subsectors especially civil engineering.

Conversely, the agriculture sector contracted by 7.3 per cent (2022: -0.5 per cent) affected by the decline of the fisheries, crop and forestry and logging subsectors.

Source: NST

Selangor grew and contributed the most to GDP in 2023

The decline in foreign direct investment (FDI) recorded last year was not a concern as the country’s overall investment had recorded an increase, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said the increase in the country’s overall investment was supported by a strong inflows of domestic investment.

“As we know, the FDI did see a decline in 2023. However, the overall investment was the highest due to a sudden increase in the (country’s) domestic investment.

“Therefore, we (the government) are not overly concerned, especially considering that foreign investment in the first quarter (Q1) of 2024 has increased.

“I do not have the specific figures with me at the moment but this has been announced by the Investment, Trade and Industry Ministry (Miti) where the figures for 2024 are significantly higher than what was projected previously, with details on companies and investment amounts,” he said during prime minister’s question time in Dewan Rakyat, today.

Anwar said this in response to a supplementary question by Datuk Idris Ahmad (PN-Bagan Serai) who enquired about the government’s plan to asses the low FDI and whether it will affect the investment prospects of the Kerian Integrated Green Industrial Park (KIGIP) project.

Malaysia saw a 13 per cent jump in approved investments to RM83.7 billion in the first quarter this year, compared with the same period the previous year.

Of the total approved investments, RM47.5 billion, or 56.8 per cent, fall under the jurisdiction of Miti and the Malaysian Investment Development Authority (Mida), covering 500 projects with 18,517 new job opportunities.

The approved investment comprises manufacturing (51.3 per cent or RM43 billion), services (47 per cent or RM39.3 billion), and primary (1.7 per cent or RM1.4 billion) sectors.

Foreign investments contributed 56.2 per cent or RM47 billion, while domestic investments contributed 43.8 per cent or RM36.7 billion.

At the same time, Malaysia recorded strong growth in gross domestic product (GDP) with 4.2 per cent in Q1 this year due to sustained domestic demand and better export performance, where the country outperformed countries such as Singapore (2.7 per cent), Thailand (1.5 per cent) and the United Kingdom (0.2 per cent).

Source: NST

Low FDI last year not a high concern due to increased domestic investment, says Anwar

The Ministry of Investment, Trade, and Industry (Miti) is in the final phase of finalising the supply chain mapping for six main sectors, said Miti Deputy Minister Liew Chin Tong.

According to Liew, the six sectors are pharmaceuticals, medical devices, electrical and electronic, automotive, food processing, and personal protective equipment.

“This effort is part of the ministry’s initiative to establish sustainable and resilient supply chains, as outlined in one of the four missions of the New Industrial Masterplan 2030 (NIMP 2030), which focuses on safeguarding economic security and inclusivity,” Liew told the Dewan Rakyat on Monday during an oral quation-and-answer session.

He said that NIMP 2030, launched by the government in September last year, adopts a mission-based approach with 21 strategies and 62 action plans spread across four missions. The ministry, serving as the implementation coordinator, has identified 10 key action plans.

The four missions aim to advance economic complexity, foster a digitally vibrant nation, achieve net zero emissions, and ensure economic security and inclusivity.

Under the mission to advance economic complexity, Liew highlighted the launch of the National Semiconductor Strategy (NSS) in May to develop the semiconductor and electronics ecosystem and attract foreign investment. Additionally, the government launched the Chemical Industry Roadmap in August 2023 to support the specialty chemicals subsector.

Regarding the mission to foster a digitally vibrant nation, Liew said there are ongoing improvements to the readiness assessment programme under the National Policy on Industry 4.0 (Industry4WRD), which aims to establish 3,000 smart factories by 2030.

“Miti is currently finalising the TechUp programme in collaboration with SIRIM Bhd, the Federation of Malaysian Manufacturers (FMM), and financial institutions to facilitate these efforts,” Liew added.

Concerning the mission to achieve net zero emissions, Liew said that Miti is conducting a study on sectoral decarbonisation pathways, slated for completion by November 2024. Concurrently, efforts involving multiple ministries and agencies are underway to develop carbon capture, utilisation, and storage (CCUS) as a new economic resource.

Liew also noted that the CCUS Bill is anticipated to be tabled in Parliament by the end of 2024, as a steering committee led by the Ministry of Economy examines various aspects of CCUS ecosystem development.

Source: The Edge Malaysia

MITI finalises supply chain mapping for six key sectors, says deputy minister

The Ministry of Investment, Trade, and Industry (MITI) aims to raise awareness about the abundance of job opportunities in high-skilled sectors.

Its Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said he had visited several industrial plants in Penang and observed positive developments, particularly in the electrical and electronics (E&E) sector.

“The E&E sector is one of the focal points under the new industrial plan or National Semiconductor Strategy (NSS) recently launched. Penang is well-known as the country’s semiconductor hub.

“Alhamdulillah, we have learned about the progress and success of companies in Penang, especially our local companies in the E&E and semiconductor fields.

“These companies are also active, particularly in terms of talent development, focusing on students from Technical and Vocational Education and Training (TVET) programmes and emphasising the importance of STEM. There are significant opportunities and demand for skilled professionals,” he said.

He made these remarks after visiting semiconductor industry plants in Penang today.

Tengku Zafrul also visited several plants, including Motorola Solutions, Abbott Medical Devices, Pentamaster, and UWC Technology in the state.

He added that the government aims to train 60,000 highly-skilled local engineers in the semiconductor industry, as previously announced by Prime Minister Datuk Seri Anwar Ibrahim.

Previously, Tengku Zafrul said shortage of the right skill workforce particularly in the engineering profession is the most challenging talent issue for Malaysia.

He emphasised on the importance of talent management as Malaysia is positioned well to ride on the current global trend.

Source: NST

‘Abundance of job opportunities in high-skilled sectors’, says Zafrul

Efforts to produce more local talent should be supported not only by the high-tech industry but also intensified across various sectors to ensure the country’s economic growth, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

During an official visit to several electrical and electronic (E&E) and semiconductor facilities in Penang today, the minister noted that these companies were actively supporting the development of science, technology, engineering and mathematics talent, as well as technical and vocational education and training.

“We aim for various industries to support these efforts to boost Malaysia’s industrial sector,“ he said after the visit, emphasising that nurturing talent is a national responsibility.

Earlier, Tengku Zafrul visited Motorola Solutions, Abbott Medical Devices, Pentamaster and UWC Bhd facilities.

He said there is a need for the industry to be more proactive in raising awareness about the numerous job opportunities in the high-tech sector.

“For example, through the National Semiconductor Strategy (NSS), we are targeting 60,000 skilled workers in technology and engineering to attract high-quality investments that create high-income jobs,“ he said.

During the visit, Tengku Zafrul observed the companies’ progress in supporting the New Industrial Master Plan and their readiness to achieve the NSS targets.

The NSS, launched last month, focuses on sectors including E&E, with Penang as the hub for the country’s semiconductor industry.

Source: Bernama

MITI minister urges broader industry support for local talent development

Kedah secured the top spot in approved investments among the states for the first quarter (Q1) of 2024 with RM31.3 billion in investments.

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the figure was part of the total RM83.7 billion approved investments in Malaysia for Q1 2024.

He said the approved investments in Kedah were for 51 projects, which are expected to create 2,262 jobs.

“Kedah tops the other states with the highest approved investment value, comprising RM30.9 billion in investments in the manufacturing sector and RM327.6 million in investments in the services sector.

“From the total, RM30.6 billion or 97.7 per cent are foreign direct investments (FDI) while the remaining RM656.2 million or 2.3 are domestic investments.

Sanusi said Kedah has large tracts of land that can be developed, positioning the state as a main investment destination.

He added that Prime Minister Datuk Seri Anwar Ibrahim is expected to witness the memoranda of understanding signing ceremony involving four main investors.

“The prime minister is also expected to launch the groundbreaking ceremony for Phase 4A of the Kulim Hi-Tech Park (KHTP),” he said.

Sanusi said the development of Phase 4 of KHTP covering 104 hectares of land was funded by a loan disbursed by the state government.

Source: NST

Kedah tops Q1 2024 with RM31.3 billion in approved investments

The country needs to address the challenges faced in developing the right human workforce, particularly the engineering profession as it moves towards the successful execution of the government’s economic plans, namely the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said without the right human capital and the right talent management of human capital, it is difficult for the country to realise its dreams and aspiration to become an industrialised nation.

He said that given the geopolitical environment today, Malaysia is at a sweet spot where industries are converging, and companies are realigning and redefining their supply chains.

“Malaysia is involved with 16 free trade agreements (FTAs), both bilaterally and multilaterally. And in those FTAs, talent is the focus because we want the economic spillover effects to benefit the local communities,” he said in a panel session entitled ‘Strategic Integration of Trade, Talent Management and Industry Policies: Fuelling Economic Growth Through Human Capital Development’ for ‘The Ministers Leading From the Front: Creating A Talent-Driven Economy — Government Policies and Practices’ programme here on Thursday.

Meanwhile, Tengku Zafrul told the media that the government plans to be “agile” and dynamic and to use the “whole of government approach” which involves all the ministries that have engagement sessions with industry.

“With this approach, I am optimistic that the country will be able to speed up efforts to train and produce the necessary engineers,” he said.

Although Malaysia is not producing that many (engineers), Tengku Zafrul said there have been improvements in the (number of) enrolments according to the Higher Education Ministry.

“At least it is moving in the right direction. There is no quick fix for this,” said Tengku Zafrul.

He said it is important to destigmatise the traditional and conventional view on technical and vocational education and training (TVET) especially to parents, families and guardians, and stressed that TVET is equally important and not secondary to the academic track.

“However, I think this is slowly changing. Even when looking at developed countries, TVET is a crucial stream towards industrialisation, for example in Germany and many other countries.

“We must ‘widen the talent funnel’, which must begin at primary school. We need to build a robust pipeline of future-ready industrial workforce primed for embracing innovation in key technologies,” he said.

In the next five to 10 years, Malaysia is targeting 60,000 skilled technology/engineering-based talents to attract high-quality investments that creates higher-paying jobs.

Source: Bernama

Malaysia needs to address workforce challenges to execute economic plans — Tengku Zafrul

Higher investments and exports will support Malaysia’s economic growth though consumer spending is likely to stay subdued, Australia and New Zealand Banking Group Ltd (ANZ) said.

Gross fixed capital formation, capital goods imports and rising manufacturing productions point to more robust investment activity in 2024, ANZ said in its quarterly outlook note. New export orders and intermediate goods imports have also risen, indicating that exports are likely to recover further, it said.

Uncertainties surrounding the petrol subsidy rationalisation and its impact on household purchasing power will impede consumption spending in the near term, ANZ flagged. ANZ’s forecast is for Malaysia’s economic growth to come in at 4.2% this year.

That compares to the official projection of 4%-5% growth this year. Malaysia is betting on exports recovery and higher tourist arrivals to bolster consumer spending and business investments. In the first quarter, gross domestic product grew 4.2% year-on-year.

Earlier this month, the government announced withdrawal of the blanket diesel subsidy and floated retail diesel prices in Peninsular Malaysia. The subsidy rationalisation for RON95, the most widely-used petrol variant, is expected to follow suit.

On its own, the adjustment in diesel prices will have little impact on the inflation outlook as only 1% of personal transport vehicles run on diesel, while the second-round effects should also be “limited”, ANZ noted.

The rationaliszation of petrol subsidy, however, will have “a more substantial impact” on overall inflation, ANZ said. It expects headline consumer price increase to average 2.9% in 2024 and 2.7% in 2025.

Still, “timely implementation of targeted subsidies for the RON95 fuel will be necessary to avoid the risk of a fiscal slippage”, ANZ stressed.

Malaysia’s central bank, meanwhile, will see any spike in inflation as a one-time structural adjustment in prices, which would not warrant any monetary policy action, ANZ said.

Bank Negara Malaysia (BNM) will likely keep the overnight policy rate unchanged at 3.00% till the end of 2024, according to ANZ. “There is no urgency to cut rates with real rates at low levels and wide negative spread of local rates over the USD interest rates,” it added.

BNM has kept the benchmark rate unchanged since it was last raised in May 2023 by 25 basis points.

Source: The Edge Malaysia

Higher investments, exports to support Malaysia’s growth amid tepid consumer spending — ANZ