Selangor should leverage on national policy push and enablers to reach its RM500 billion gross domestic product (GDP) in two to three years target, Investment, Trade and Industry (MITI) minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said.

Highlighting the various national level plans, like the recently announced Green Investment Strategy (GIS), he said, all these policy push and enablers will be able to help Selangor achieve its objectives, including that of developing its green manufacturing industry.

“In fact, Selangor’s  approved investments in the first quarter of 2024 (Q1 2024) of RM12.4 billion makes it one of the biggest investment contributors to Malaysia’s first quarter,” he said in his keynote address at the 8th Selangor Asean Business Conference (SABC 2024).

Tengku Zafrul said with strong coordination and collaboration between MITI, Invest Selangor and Malaysian Investment Development Authority, he is confident more investments can be attracted into Selangor, and realise these approved investments quickly, and possibly at a realisation rate higher than the national rate.

He said Selangor can leverage on Malaysia’s chairmanship of Asean and Asean’s position as “darling destination” for investments in manufacturing for the world to attract  more investments.

He said Asean has a collective GDP of almost US$3.7 trillion (2022) and ranks as the third largest regional economy in Asia and the fifth largest in the world.

Despite global challenges, foreign direct investment (FDI) inflow into Asean was US$155 billion in 2023.

“Thanks to Asean’s neutral stance – FDI flows looks set to remain steady in the coming years, particularly amidst the continued geopolitical conflict between US and China, as well as Ukraine and Russia,” Tengku Zafrul said.

He added that Asean also has many other things going for it to attract more FDI into this region, such as its combined population of over 670 million people, out of which 213 million, or 31 per cent, are youths aged 15 – 34 years old, which make up for a young talent pool.

“This demographic dividend is also seen in Selangor, whose working people make up 67 per cent of its population, partly due to its popularity as a ‘land of opportunities’ for workers from other states,” said the minister.

On Malaysia’s Asean chairmanship next year,Tengku Zafrul said it was a crucial opportunity to align Asean’s direction with our national and state economic policies.

“MITI will lead Malaysia’s Chairmanship in the economic pillar, guided by the overarching objectives of the Asean Economic Community (AEC) Council. MITI is in the process of crafting Malaysia’s Priority Economic Deliverables or PEDs,” he said.

PEDs will be framed around four key strategic thrusts namely  enhancing trade and investment between Asean member states, integrating and connecting economies, forging inclusive and sustainable future and transforming the digital future.

“Given Selangor’s location within the Klang Valley, its businesses stand a strong chance of leveraging on key events to be held in Kuala Lumpur to elevate themselves and build their regional profile, particularly as MITI and its agencies have been working hard towards making Malaysia a manufacturing and services hub for the region,” said Tengku Zafrul. –

Selangor’s gross domestic product (GDP) growth at 5.4 per cent in 2023, surpassed national GDP growth of 3.6 per cent.

Source: NST

Selangor should leverage national policy push and enablers to reach RM500b GDP target – Tengku Zafrul

Selangor remains focused on maintaining its performance as the country’s largest investment contributor by state through the organisation of the Selangor International Business Summit (SIBC 2024), said Selangor Menteri Besar Datuk Seri Amirudin Shari.

For the first quarter, Selangor was in third place with an investment of RM12 billion, while for the whole of 2023, Selangor was in second place with an investment of RM55 billion

“So the target this time is to maintain the large amount of investment and create significant economic opportunities for the people,” said Amirudin following the opening of the 8th SIBC at the KL Convention Centre on Thursday.

At the same time, Amirudin said the state government will cooperate with the Ministry of Investment, Trade and Industry as well as other ministries in programmes that will bring economic benefits to Selangor.

“With Malaysia set to be the Asean chair in 2025, Selangor stands ready to support and complement the federal government and Miti in every way possible,” he added.

Meanwhile, commenting on Malaysia as the Asean chair, he said Asean countries should build trust and commitment through sharing technology goals to strengthen cooperation among Asean countries.

“Asean should no longer be a region where big players look to offshore their manufacturing hubs to lower costs, but be leaders in innovation and create technologies of our own to solve the grand challenges of our time,” he added.

Source: Bernama

Selangor plans to be the country’s biggest investment contributor this year — Amirudin

Country leads from the perspective of infrastructure and stability

Malaysia is increasingly seen as the epicentre and gateway to the broader Asean region by investors, underpinned by its relatively advanced infrastructure and stable business environment.

Penjana Kapital Sdn Bhd chairman Tunku Alizakri Raja Muhammad Alias said while the country’s yield flow may not be as high as some other countries, the nation is quite advanced from an infrastructure perspective for investments compared to many of its Asean counterparts.

“There are a lot of opportunities in Southeast Asia and Malaysia. I think the country is much more advanced in terms of stability and ability for companies to conduct their business.

“We might not be as advanced as Singapore but Malaysia is definitely cheaper. This is what is generating a lot of interest among investors,” he said at a panel discussion on “Malaysia’s government-backed funds and their investment strategies” at the Tech in Asia conference yesterday.

Penjana Kapital is a sovereign venture capital fund.

Alizakri said the key question now is whether Malaysia and Asean as a whole will be able to “get its act together” to unlock the true value of Asean.

“I think this question is still being answered and this is where the Malaysian government attempts to give that perspective, with an ambition to position Malaysia as a hub for venture capital and startups, specifically for Asean. This is also taking into account that the country is going to be the chairman of Asean next year,” he said.

Alizakri said when it comes to investment, it is important to have a whole-ofasean approach and not just on individual countries.

He noted that instead of competing over ownership of companies, like Grab, countries should embrace the idea that Asean owns these individual companies

“In the early days, which was about five to 10 years ago, we used to look at what is happening in the West, and try to replicate it in Malaysia, not really taking into account that we do not have the same fundamentals.

“What worked in the United States and Europe does not necessarily work for Malaysia. Some of our companies had gone into a ‘cash-and-burn’ model.

“We should look at Asean as a whole. So if you want to go on a cash-and-burn model, start in a country which actually has its core fundamentals in place, like Malaysia. Use Malaysia as a testbed for prototypes into targeted businesses.

“Once a company reaches a certain saturation point, it can then seamlessly transition to a larger market like Indonesia where you actually scale up.

“So in that case, you will be able to unlock the true potential of Asean itself rather than any individual country in its own right,” he said.

In response to what success would look like, Alizakri said it would be when the true promise of Asean is realised, using Malaysia as a partner, given that the country is an unexplored launchpad into Asean for global funds at this point in time.

“Some people assume that when they establish their headquarters in Singapore, they automatically know the whole of Asean. This is a mistake because each country is very diversified with very different cultures, religions and practices.

“Malaysia has the potential to be a solid hub, especially for impact investmenting, because I believe this is going to be the next generator of not only financial returns but also social returns.

“I also hope, in terms of success, that at long last, we will see solid global partners who will look at Malaysia as their home.”

In a separate panel discussion on “Digital banking in emerging markets: What’s next?”, GXS Bank Pte Ltd group chief executive officer Muthukrishnan Ramaswami said while what digital banks offer is not significantly different in terms of digital capacity, their products and services have been significantly reinvented, as they have started afresh.

“Digital banks can make a big difference in the sense that users have the flexibility of putting money into a digital bank and earning interest that is much more competitive than what the big banks pay.

“What the regulators have done is to provide the central-bank guarantee or the insurance guarantee for deposits held in digital banks and therefore hold us to the same high standards as any big bank.

“So I don’t think we get any regulatory slight. The ratios are the same, we are pretty much governed like a big bank but we are able to extend services that are much more far-reaching for the underserved customers,” he said.

Muthukrishnan said the key thing for digital banks is the simplicity of products and services in bringing banking to underserved segments.

“The products are geared to cater for what I would call non-complex needs. Because most people do not have very complex needs early in their financial journey.

“The quid pro quo for that is the service costs are very low, acquisition costs are very low and we do not have a branch network, therefore our cost to service is low.

“Hence, if we can keep our costs small and if we can keep our products simple, then I believe it’s a win-win,” he said.

Boost group chief executive officer Sheyanta Abeykoon said if one were to look at digital banks that are successful around the world, having a robust ecosystem – whether captive or through a partner – is a major contributing factor.

“Ecosystems play two important roles. The first is bringing an existing customer base where digital banks can seamlessly integrate an onboarding journey or products in an already familiar environment to customers.

“Secondly, it offers data, especially of the underserved segment, that is not publicly available. This unique customer data gives digital banks a competitive advantage in our customer-centric strategies as well as in product design.

“Boost Bank is doing the same by tapping into our own and partner ecosystems to bring banking directly to our customers by seamlessly embedding our digital banking products and services within these ecosystems,” he said.

Source: The Star

Malaysia investment gateway to Asean

PENANG has had a successful industrialisation journey over the past 50 years. During this time, its semiconductor and electrical and electronics (E&E) sectors have transformed from being labour-intensive and low-value-added industries into a powerhouse known as the Silicon Valley of the East.

Last year, the state contributed an impressive 32% share of the country’s exports, amounting to RM41.15 billion, and attracted RM71.9 billion in investments. Foreign direct investment (FDI) made up a significant portion of these, strengthening its position as an investment destination.

However, the influx of investments into the island state has posed challenges to its next phase of economic growth — land scarcity and talent shortage, among others.

“Penang’s greatest economic advantage is its people. It is the backbone of industrial and economic growth. At the same time, we believe Penang is now part of the growing nexus of the economic region vis-à-vis Kuala Lumpur, Johor, Singapore and Sarawak,” Affin Hwang Investment Bank Bhd CEO Nurjesmi Mohd Nashir said at the Penang Economic Forum 2024 organised by the investment bank and Penang Institute.

Several topics were discussed at the forum, including the state’s next growth prospects, its strategy to harness a competitive advantage and the collaboration between Penang, Johor and Sarawak as an economic corridor.

Speaking at the forum, the Yang di-Pertua Negeri of Penang Tun Ahmad Fuzi Abdul Razak acknowledged Sarawak’s wisdom in taking the initiative to drive economic growth, including the takeover of Bintulu Port, the launch of its own airline and the establishment of a sovereign wealth fund. Nevertheless, he added that it would not be practical for Penang to simply replicate these.

“I have long admired the Sarawak government’s proactive approach to driving economic growth through innovative ideas and initiatives. I believe that while it may not be practical or necessary for Penang to blindly follow similar initiatives, it may be useful for the state to be sufficiently inspired to develop its own niche and identity to protect its own long-term interests in the federation,” he said in his keynote speech.

Ahmad Fuzi pointed out that Penang had gone through a rapid industrialisation journey and developed numerous industrial zones, which have transformed the state into a semiconductor powerhouse. Thanks to its strong and vibrant E&E ecosystem, the state now accounts for more than 7% of the world’s semiconductor sales.

However, he highlighted, Penang lacks sufficient land to expand its economic base and develop even more industrial or economic zones, as well as to get into solar farming and large-scale plantations, among others. He also pointed out that the state does not have the financial resources to implement high impact socioeconomic projects and had become dependent on the federal government.

“We also face a lack of water resources, including insufficient raw water from Sungai Muda with the three major dams — Air Itam, Teluk Bahang and Mengkuang — unable to fully meet Penang’s increasing water requirements and need to purchase treated water from Perak and Kedah,” said Ahmad Fuzi.

Having said that, he hoped that the federal government’s agreement in principle to allocate RM4 billion to pipe raw water from Sungai Perak to the Bukit Merah Dam would help to increase the supply of treated water in Penang. “This means the challenges that Penang faces and what it can do are inextricably linked to the challenges faced by the country as a whole, as well as what are determined and implemented at the federal level.”

Selective on FDI flows

Recognising these challenges, the Penang government has taken a proactive approach to tackling such matters, including upgrading the infrastructure in the state, moving up the semiconductor value chain and being more selective in terms of FDI flows into the state.

Over the years, local semiconductor and semiconductor-related firms, especially public-listed ones, have been mostly involved in the mid to lower end of the value chain, serving foreign semiconductor manufacturers, brand owners, integrated circuit (IC) developers and fabricators.

InvestPenang CEO Datuk Loo Lee Lian emphasised the crucial role of resources like land, water and human capital. As such, the state has identified IC design, advanced packaging and equipment manufacturing as its key growth areas in line with the National Semiconductor Strategy.

“I think all of us know that we are in the midst of the geopolitical tensions, escalating the importance of semiconductors that has caused a shift in capital and investment to countries in Southeast Asia. Malaysia, especially Penang, has been a beneficiary or a high recipient of that FDI,” she said during the third panel discussion: The Penang Agenda — the State’s Prospects and Aspirations.

“But the point to also note is that: Will this FDI come unlimited? Are we to enjoy this flow of FDIs forever?

“We have benefited from this inflow of capital based on our existing ecosystem that we have built over the last 50 years. The capacity, the human capability and human capacity, built over the past years. But challenges are emerging.”

Loo pointed out that Penang needs to be strategic in its FDI approach and consider its capacity, infrastructure, land, electricity and water needs, and human capital.

“In the past, we used to receive two or three investors on a weekly basis. But now, we receive three to five on a daily basis,” she said.

“But we are running out of capacity. So we learnt to be more clever and resourceful. We needed to be more strategic.

“Back in 2022, we mapped out the semiconductor supply chain to identify the opportunities against what we had. We concluded that we could not play in every field, but to have a strategy to choose what sectors we want to invest in — IC design, advanced packaging and equipment manufacturing — because these have the highest value and will give us a multiplied effect that will provide more opportunities for SMEs (small and medium enterprises). The allocation of resources, including land and utilities, will take into account the sector that we want to promote.”

Infrastructure development a game changer

Penang is in the midst of a massive reclamation project to develop a 930ha man-made island known as Silicon Island.

“It will be a smart, sustainable and green city of the future. It will also serve as the high technology and E&E hub,” said Silicon Island Development Sdn Bhd CEO Datuk Szeto Wai Loong.

“When we started to propose Silicon Island, we were advised that it had to be an economic catalyst for Penang. If not, as a lot of people would say, it would become another Forest City. As such, we have to add the industrial plan, and of course you cannot run away from the semiconductor sector.”

Penang state exco and chairman of the infrastructure, transport and digital committee Zairil Khir Johari said that apart from building new industrial parks, the state is working very hard to upgrade its infrastructure. “If we want to create and develop new industrial parks, we will need more power and water.”

In terms of water, Zairil said that while the state has been investing consistently over the last five years to ensure that it has enough water supply, it has faced an unexpected rise in water consumption.

“We are a bit water stressed at the moment due to an unexpected rise in water consumption and demand, since Covid actually, which was a bit unexpected and way over our projections. It usually takes us 10 years to increase water demand by 10%, but it increased 10% between 2019 and 2023. So sort of a 10-year demand surge in three years, which is causing some of our water stress problems,” he said.

Nevertheless, the state is working on upgrading its water infrastructure. But it will take at least one to two years to complete, he said.

Zairil also talked about some of the transport-related infrastructure projects in the state that would address the congestion on the island. He expects the Penang LRT project, which will run from Silicon Island to Penang city centre and towards Penang Sentral on the mainland, to start construction this year.

He also said the LRT will have its own connection bridge from the island to the Penang mainland.

“This will solve a lot of traffic problems that we face, bearing in mind that a lot of traffic comes from outside of Penang [island]. It will be a game-changing project,” he said.

“The other [form of] transport that we’re looking at is water taxis. Penang is an island, but we make very little use of our waterways in terms of transport.”

He also revealed that for the proposed water taxis, the state had called for tenders.

Getting more Penang-based companies to go public

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said that although Penang is a semiconductor powerhouse, not many Penang-based companies opt to list on the local stock exchange. He pointed out that between 2020 and May 2024, only 17 companies from the state had an initial public offering (IPO) on the local bourse.

It should be noted that about 129 companies had their IPO on Bursa during that period.

“In terms of GDP (gross domestic product), Penang is the fifth-largest economy in Malaysia based on 2022 numbers. In terms of wealth, GDP per capita, Penang stood at number four in the country,” he said during the panel discussion.

“When it comes to representation on the stock exchange, Penang is underweighted. Although it contributed 7.4% to the country’s GDP, the total market capitalisation is RM71 billion out of more than RM2 trillion, which is below 4%. Potentially, we should see a doubling of Penang-based companies listed on Bursa Malaysia.

“Nonetheless, in recent times, we are seeing more Penang-based companies coming to the market. About 13% of new companies coming to the market are from Penang.”

Source: The Edge Malaysia

Penang is not short of FDI, but resources

Malaysia recorded a total of 9.48 million visitors from January to May this year, an increase of two million visitors compared to the same period in 2023.

500 Global managing partner Khailee Ng said tourist arrivals to Malaysia are increasing, highlighting why major global corporations such as Microsoft, Cloud AI and Infineon choose to invest in the country.

He said the nation has made significant progress by having the world’s largest production site of silicon carbides, with Infineon recording up to RM22.8 billion (US$5 billion).

“There are also projects from China, Europe, the United States, and other countries that are being set up not just in Penang but also in Johor, Sabah and Sarawak.

“Events like this will also bring the community into the opportunities and insights of the Malaysian investments,“ he said in his speech at the opening of the Tech in Asia Conference 2024 today.

The two-day conference, powered by Mystartup by Cradle, as attracted tech enthusiasts, investors and entrepreneurs from across Southeast Asia. The event , underpinned by Mystartup’s commitment to fostering startup growth and innovation, is a pivotal moment for the region’s tech ecosystem.

The conference opened with a keynote address by Cradle Fund Sdn Bhd CEO Datuk Seri Mohd Yusof Sulaiman, who highlighted the transformative impact of startups on the Malaysian economy. “The role of Mystartup by Cradle is key in nurturing homegrown talent and supporting scalable business models through funding, mentorship and market access,“ he said.

Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai shared his insights on Malaysia’s semiconductors opportunity, which focuses on leveraging opportunities to enhance the industry and localising semiconductors in the Malaysian industry.

The conference features panel sessions and workshops addressing critical issues in the tech industry.

Sessions such as “Scaling Startups in Southeast Asia” and “The Rise of Malaysia Fintech Scene” provided valuable insights into market trends, regulatory challenges and growth strategies.

A recurring theme at the conference is the emphasis on sustainability, opportunities and inclusivity in technology. 

Source: The Sun

Malaysia has made great progress in attracting tech investments: 500 Global head

The Ministry of Investment, Trade and Industry (MITI) is in the process of reviewing the Countervailing and Anti-Dumping Duties Act 1993 (Act 504), said Deputy Minister Liew Chin Tong.

He said the amendment to Act 504 is expected to be tabled in Parliament in January 2025.

In the meantime, he said the government supports the measures to protect small and medium enterprises (SMEs) from the effects of unfair trade following the influx of cheap imported goods in large quantities, including from China through the enforcement of trade remedies.

Among the remedial measures taken are the imposition of anti-dumping duties, countervailing duties and protective duties, he said.

“MITI implements this trade remedy action in accordance with national legislations namely Act 504 and the Countervailing and Anti-Dumping Duties Regulations 1994 (1994 Regulations).

“This trade remedy action is aimed at overseas manufacturers or exporters that result in harm to local industries including SMEs in Malaysia and the scope of its imposition includes all local industries,“ he said during a question and answer session at the Dewan Negara today.

He was resplying to Senator Tan Sri Low Kian Chuan’s question about the ministry’s efforts to support SMEs in Malaysia in overcoming the impact of Chinese business entry.

Liew added that between 2015 and 2023, MITI had enforced nine anti-dumping measures against Chinese exporters to protect local industries from unfair trade practices.

Source: Bernama

MITI reviewing Countervailing and Anti-Dumping Duties Act 1993

Sarawak continues to be recognised by the World Bank as a high-income region in 2023, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the World Bank Malaysia has confirmed that Sarawak still maintains its status as a high-income region, with a gross national income (GNI) of US$17,000 compared to US$15,000 in the previous year.

“With a non-conventional approach, Sarawak can determine its own economic direction that revolves around economic initiatives that are closely related to the global effort to deal with climate change.

“This was proven when Sarawak became the first region in the country to take steps to move its economy towards a green economy and transition to clean energy from carbon while adding value to the state’s natural resources,” he said during the Sarawak Day 2024 celebration in Bintulu last night.

Abang Johari said this green economic policy has highlighted many opportunities to transform the state’s economy in terms of increasing foreign and local investment as is and will happen in Bintulu.

He officially opened Sarawak’s first wholly-owned Methanol Plant in Tanjung Kidurong yesterday with the aim of increasing the added value of Sarawak gas thus generating the state’s economy.

“Tanjung Kidurong will see more investment by giant companies such as Petronas, Shell, Samsung, Sumitomo and others in the next six to 10 years.

“I am confident that Sarawak’s economy will continue to grow as a whole with the development of Tanjung Kidurong as the hub of Sarawak’s gas industry and Samalaju as an industrial area based on intensive energy use.

“Therefore, I am also confident that Sarawak’s economy will continue to grow in the period up to 2030 and up to 2050 and strengthen Sarawak’s status as a high-income economy,” he said.

Abang Johari said the recognition from the World Bank is not the final goal of the Gabungan Parti Sarawak (GPS) Government.

“A high level of GNI does not mean that the income of every household of our people is high. This situation should not be politicised but what is more important is to implement efforts to deal with these shortcomings both at the state level and at the federal level.

“The GPS Government’s current focus is to increase the median household income in Sarawak (or Median Household Income) which is at the level of RM4,978 compared to the national rate at the level of RM6,338,” he said.

He was confident with the measures to transform Sarawak’s economy that are being implemented and will be implemented, the state will strive to improve the current level to surpass the national rate.

Source: Borneo Post

Abg Johari: Sarawak still maintains status as high-income region in 2023

Malaysia is considering joining several international organisations, including the Organisation for Economic Co-operation and Development (OECD), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Zafrul said in its effort to maintain a balance of the country’s economic development and good relations with all trading partners, especially world economic powers, Malaysia will continue to ensure an independent, principled and pragmatic foreign policy.

“The government will use a multi-directional approach so that the interests of the country are always upheld.

“This is one of the main reasons why Malaysia is not only considering participating in BRICS but also some other appropriate organisations such as the OECD, where Malaysia can contribute to the development of the international community.” 

He said in reply to a question from Senator Datuk Noraini Idris in the Dewan Negara today regarding the propriety of Malaysia joining the BRICS economic alliance and how such participation does not hinder planning and global trade relations.

Zafrul stressed that Malaysia, as a trading country, always focuses on strengthening economic cooperation with all partner countries.

He said this is proven through the country’s involvement and active role in various international organisations at the regional and multilateral levels, including Asean, the Asia Pacific Economic Cooperation, the United Nations, and the Organisation of Islamic Cooperation (OIC).

“In that context, Malaysia’s participation in BRICS is in line with efforts to drive the economic agenda for the benefit of the country and the people.

“With a strategic and balanced approach, Malaysia can optimise the benefits of participation in BRICS, in addition to ensuring the stability and continuity of trade relations globally with all our main economic partners.”

BRICS, which comprises Brazil, Russia, India, China and South Africa as well as four new member countries — Egypt, Ethiopia, Iran and the United Arab Emirates (UAE) — have a cumulative population of 3.54 billion.

The total gross domestic product of the organisation is estimated at US$26.6 trillion (US$1=RM4.68) or equivalent to 26.2 per cent of the world’s GDP, said Zafrul.

Source: Bernama

Malaysia mulls joining OECD

As we step into the next 50 years, there is strong optimism about the immense potential of Malaysia-China relations, which are currently at the level of a Comprehensive Strategic Partnership.

Since the formal establishment of diplomatic relations on May 31, 1974, the first 50 years have seen both countries build a strong and significant relationship in various fields, primarily driven by the economic and investment sectors.

China has emerged as Malaysia’s largest trading partner for 15 consecutive years since 2009. Bilateral trade value reached RM450.84 billion (US$98.80 billion) in 2023 – a jump of more than 481 times compared to the total trade of just less than US$200 million ( RM937 million) in 1974.

Looking ahead to the next five decades and beyond, analysts are optimistic that the relationship between the two countries has significant room and opportunities for further development and exploration for mutual benefit and prosperity.

Geostrategist Prof Dr Azmi Hassan said, that although Kuala Lumpur’s relationship with Beijing is not without its challenges, including in the matter of overlapping claims in the South China Sea, it should be maintained based on the country’s policy of neutrality and non-alignment.

Malaysia-China relations have always been based on mutual trust and a win-win situation. This dispels the perception that Malaysia favours China in geopolitical matters, he told Bernama.

“In reality, Malaysia is close to both China and the United States (US) because what we want is to ensure that trade activities are not disrupted by the geopolitical rivalry between China and the US,” said Azmi.

This was also highlighted by Prime Minister Datuk Seri Anwar Ibrahim and Chinese Premier Li Qiang, who agreed to promote a fair and orderly multipolar world and inclusive globalisation that benefits all universally.

The strategic bilateral relationship between Malaysia and China, which are important representatives for developing countries in Asia and rapidly growing economies, “should be highlighted.”

This aspiration was expressed in a joint statement by both prime ministers during Li’s official visit to Malaysia to celebrate the golden jubilee of the diplomatic relationship between the two countries recently.

This is not only for the people but also for the future of the region, in addition to enhancing unity and cooperation within the “Global South.”

“The Malaysia-China relationship can be a model to be emulated, where major powers can trade and deal for mutual benefit and not merely use their strength to take advantage of smaller countries,” said Azmi.

The analyst also opined that the rise of China as a global power should serve as a lesson for developing countries like Malaysia to benefit from China’s rise in their development, such as in the fields of economy, infrastructure, high technology, digitalisation, and artificial intelligence (AI).

Azmi said one aspect that Malaysia needs to learn from China is the growth of its economic sector.

“Malaysia needs to follow China’s example of how the domestic market is the main support of the country’s economy. Although the population in Malaysia is only 33 million, we can learn from China. If
there is a recession, the domestic support remains,” he said.

He believes China can also learn from Malaysia, particularly how Kuala Lumpur’s non-aligned stance, including towards any major power, makes it easy for other countries to deal with Malaysia.

Meanwhile, Deputy Head of the Department of International and Strategic Studies at Universiti Malaya, Dr. Lam Choong Wah, said one of the emerging areas that Malaysia should focus on in its expanding relations with China is “space exploration.”

Highlighting China’s major success in the lunar exploration and their quest to Mars in recent years, Lam said Malaysia should tap into the Chinese expertise in this field.

Last month, China made history in its space exploration endeavours when the Chang’e-6 lunar probe landed on Earth with rock samples collected from the moon’s far side, the first in mankind’s history.

“Malaysia should no longer be a mere bystander in this field. We should take part actively in this important age of discovery.

“Malaysia should look at the opportunity to tap into Chinese astronomical achievement via bilateral cooperation for instance, and sending our people to the Chinese Science Academy to conduct joint research on lunar soil,” he said.

He said this factor also aligns with Malaysia’s ambition to develop its space industry.

Last year, Science, Technology and Innovation Minister Chang Lih Kang said Malaysia is studying the feasibility of establishing a space launching site here, citing the country’s unique geographical position and the immense economic potential it stands to generate from the industry.

Source: Bernama

Malaysia-China Relations Have Huge Potential To Be Explored For The Next 50 Years – Analysts

The Ministry of Investment, Trade, and Industry (MITI) will continue its efforts to enhance trade, attract investments, and advance the country’s industrial sector.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, citing advance estimates from the Department of Statistics Malaysia (DoSM), said that Malaysia’s economy grew by 5.8 per cent in the second quarter of 2024, up from 4.2 per cent in the previous quarter.

This growth is the highest since the fourth quarter of 2022 (7.4 per cent), he said in a post on X on Friday.

He said for the first half of 2024, GDP increased by 5.0 per cent compared to 4.1 per cent in the same period last year.

The estimated growth for the second quarter is in line with recent indicators such as the Industrial Production Index, which rose by 6.1 per cent and 2.4 per cent in April and May 2024 respectively compared to the previous year.

The manufacturing sector also expanded to 4.7 per cent from 1.9 per cent in the previous quarter.

Malaysia’s trade has consistently grown since January 2024, recording an 8.7 per cent year-on-year increase in June 2024 to RM237.81 billion.

Exports registered growth for the third consecutive month, rising by 1.7 per cent to RM126.05 billion.

The trade surplus, which amounted to RM14.29 billion, marks the 50th consecutive month of surplus since May 2020.

Source: Bernama

MITI continues efforts to enhance trade, draw investments in industrial sector

The Ministry of Investment, Trade and Industry (MITI) maintains the investment growth projection at 5.0 per cent this year despite the domestic economic recovery environment.

Its Minister Tengku Datuk Seri Zafrul Abdul Aziz said the target, set by the Malaysian Investment Development Authority (MIDA), is in line with the Gross Domestic Product (GDP) growth target.

“In the first quarter of 2024 (1Q 2024), we have made an announcement, an increase (in investment) of 13 per cent compared to the same quarter last year. For now (the investment target) is officially at 5.0 per cent, but we will review this based on the pipeline.

“At the moment, the 5.0 per cent (target) is based on the correlation with the GDP target of between 4.0 and 5.0 per cent…but we will see, there are things that are out of our control,“ he told reporters after presenting the ministry’s report card for the second quarter of 2024 (2Q 2024) here, today.

Moving forward, he said the digital and green economy sectors will be the key drivers of Malaysia’s economic growth, apart from the services sector.

“The digital economy has already surpassed our previous (growth) target of 22.6 per cent, growing at 23 per cent as of 2Q 2024, and we have revised the target up to 25.5 per cent of GDP by 2025,“ he said.

Regarding the impact of the strengthening ringgit against the US dollar, Tengku Zafrul said the ringgit is not the only primary indicator in investor evaluations.

He pointed out that investors would consider long-term prospects and something reliable in making their decisions.

He said the situation is different when it involves investments in the capital market, whereby fluctuations in the ringgit would have a quick effect.

When foreign investors decide to invest in the country, it would take about two years or more to see the impact, he added.

Meanwhile, on Malaysia’s intention to join the BRICS (Brazil, Russia, India, China and South Africa) intergovernmental organisation, Tengku Zafrul said the discussion is currently led by the Ministry of Foreign Affairs (MOFA) as the pact is not an economic bloc per se like other economic pacts joined by Malaysia.

“For now, BRICS is more like a diplomatic grouping. In the future, if there any plans to include trade agreement or economic cooperation (in the pact), then MITI will be involved (in a bigger role).

“At this stage, MITI is not leading it, usually we will lead like other blocs as the economic element for this bloc is more indirect. Eventually, we will lead it as at the end of the day, trade and investment cooperation will make sense for it to be sustained. But for now we are in the team led by MOFA,” he said.

Source: Bernama

MITI maintains investment growth projection at 5.0 % for 2024 – Tengku Zafrul

Sarawak’s stable political climate and transparent governance will give confidence to investors who wish to establish and grow their ventures in the state, said Datuk Amar Awang Tengah Ali Hasan.

“We provide a business-friendly environment. Our clear legal framework and supportive policies are designed to support investment and improve ease of doing business,” said the Deputy Premier and Minister for International Trade, Industry and Investment.

He said this in his welcoming address at the ‘Invest Series Sarawak – Unfolding Its Business Potential’ programme at the Malaysian Investment Development Authority (MIDA) headquarters in Kuala Lumpur today, where Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was the guest of honour.

The comprehensive incentives offered by the federal and Sarawak governments such as tax holidays, investment allowances, as well as competitive electricity and water tariffs make Malaysia, including Sarawak, an attractive investment destination, added Awang Tengah.

“These incentives reflect our commitment to create a business-friendly environment and foster sustainable development.

“Sarawak is a beacon of economic opportunity within the heart of Southeast Asia and has been making significant strides in sustainability. She is a jewel in the crown of Malaysia, bestowed with rich natural resources, biodiversity and cultural heritage.

“Our growth is driven by strategic initiatives and a commitment to sustainable development, which integrates with our long-term plan known as the Post Covid-19 Development Strategy (PCDS) 2030. We aim to be a high income and developed region by 2030,” he said.

Being strategically located on Borneo Island, he added, Sarawak provides excellent access to the booming Asian market, comprising about 60 per cent of the world population.

He said this prime geographic position makes Sarawak an ideal gateway to penetrate the broader market in Asia and beyond.

“Our land mass of 12.4 million hectares is richly endowed with natural resources, from vast forest, arable agriculture land, extensive mineral deposits to large reserves of petroleum and natural gas, which have yet to be fully tapped.

“These resources present numerous investment opportunities, which also provide a solid foundation to grow and expand the six economic sectors identified under the PCDS 2030. These sectors are manufacturing, agriculture, forestry, tourism, mining and services.

“We will ensure this natural wealth is managed responsibly through sustainable practices between economic development, societal progress and environmental stewardship,” he stressed.

He said Sarawak aims to be a regional green energy powerhouse, leveraging on 20GW hydropower potential from a vast network of rivers.

“We have made significant strides in harnessing hydropower potential. Major hydropower projects, namely Batang Ai, Bakun and Murum, have contributed more than 60 per cent to our energy mix.

“We are exploring innovative ways of harnessing energy using cascading dams, solar, wind, biomass, sustainable fuel and hydrogen. These create a dynamic environment for investors to invest in sustainable and renewable energy solutions.

“In addition, renewable energy has become a major attraction for investors seeking to reduce their carbon footprint,” he explained.

He said Sarawak is also poised to lead in the emerging hydrogen economy and the state’s hydropower provides a sustainable and affordable energy source that enables Sarawak to become a hydrogen hub.

This new economy, he pointed out, offers investment opportunities, from developing advanced electrolysers and fuel cells to creating sustainable storage solutions and transportation networks.

He highlighted that Sarawak is also a major player of Carbon Capture, Utilisation and Storage (CCUS) industry in Southeast Asia, and is the first in Malaysia to pass the laws which enable CCUS and carbon related activities to be carried out in Sarawak.

CCUS is an enabler for low-cost low-carbon hydrogen production that supports decarbonisation efforts.

Besides, he added, Sarawak is at the forefront of digital revolution and will continue to expand digital infrastructure, enhance digital skills and innovation to create an integrated ecosystem and vibrant technology sector.

“We offer investors a conducive environment for pioneering new technologies and solutions such as digitalisation, automation, artificial intelligence and internet of things (IOT).”

Awang Tengah also pointed to strategic infrastructure development as a key pillar to enhance connectivity and support economic growth.

“We are upgrading the transportation networks including roads, ports and airports as well as utilities and telecommunication for more efficient business operations within Sarawak and beyond.

“We have developed industrial parks equipped with basic infrastructure and facilities such as Sama Jaya Free Industrial Zone, Samalaju Industrial Park and Demak Laut Industrial Park to drive economic growth.”

Awang Tengah also said that skilled workforce is a critical asset to attract investment.
“Our young, well-educated and trainable workforce not only meets the demand of industries but is adaptable to future needs.

“Therefore, we are dedicated to building a stronger, resilient and innovative community through talent development. We are collaborating with international education institutions and industry partners to unlock the full potential of our people,” he said.

He also said Sarawak offers a compelling value proposition across various economic sectors aligned with Sustainable Development Goals and ESG principles.

“These principles are integral parts of our development strategy. Therefore, unfolding a sustainable future for Sarawak is about showcasing balanced economic growth with environmental stewardship and inclusive future,” he added.

Sarawak will continue to have close operation and collaboration with the federal government, particularly with the federal Ministry of Investment, Trade and Industry (Miti) and MIDA, he said.

“Finally, I invite you to explore the investment opportunities and to be part of our vision for a prosperous, inclusive and sustainable Sarawak,” he told the audience.

Source: Borneo Post

Political stability, good governance make Sarawak attractive for investment, says Awg Tengah

Kedah, particularly in Kulim, has witnessed the highest influx of foreign investments for the manufacturing sub-sector in the country in the first quarter of this year (1Q2024), according to Knight Frank Malaysia executive director of land and industrial solutions Allan Sim.

In his presentation on the overview of the industrial sector in conjunction with the release of Knight Frank’s The Real Estate Highlights 1st Half of 2024 report on Wednesday, Sim highlighted that Kedah recorded a significant RM30.98 billion worth of foreign investment activities in 1Q2024. This is followed by Klang Valley (RM3.27 billion), Johor (RM2.33 billion), Penang (RM1.82 billion) and Sarawak (RM1.3 billion).  

“International orders are coming in fast. And manufacturers could not get to their sites in Penang on time. Hence, they head to the nearest state, that is Kedah,” explained Sim, adding that the Kedah Express Construction Permit (E10) initiative has significantly expedited the process for investors.  

According to the report, approved foreign investments in the industrial sector saw an estimated 203% surge year-on-year (y-o-y) to RM38.15 billion for 1Q2024. Domestic investments on the other hand, recorded an estimated 58% increase y-o-y to RM4.79 billion.

The report also indicated that major investments in data centres, notably by Google in Klang Valley, underscore the sector’s growth.

In Johor, rapid growth in the data centre market is driven by its proximity to Singapore as well as the launch of the Johor-Singapore Special Economic Zone in January 2024.

Meanwhile, other states such as Penang, Sabah and Sarawak continue to see growth in investment value in the industrial sector.

Additionally, there have been an increase in transaction volume and value for the sector in Klang Valley, Penang, Johor, Sabah and Sarawak in the first quarter, with detached factories in the Klang Valley seeing a significant rise of about 44% to an estimated RM2 billion for 1Q2024, according to Sim.

Overall, Malaysia’s industrial production index remained stable in 1Q2024 at 130.4 points — a 3.3% annual growth compared to 1Q2023 (2.9%). All sub-sectors recorded growth, led by electricity (8.9%), mining (5.9%) and manufacturing (2.1%), according to the report.  

Trade performance in the country continued its upward trajectory in 1Q2024, growing by 7.1% to RM690.6 billion, with a trade surplus of RM34.22 billion, reflecting global trade recovery.

Exports also increased by 2.2% to RM362.4 billion compared to 1Q2023, driven by higher exports of manufactured and mining goods.

“The manufacturing sector is forecast to grow by 3.5% in 2024, supported by a rebound in export-oriented industries and sustained growth in the domestic-oriented cluster. The electrical and electronics (E&E) sector is expected to recover in 2024, led by an upswing in the global technology cycle,” Sim said.

He added: “The ‘flight-to-quality’ and ‘flight-to-sustainability’ trends are expected to shape the future development of logistics space in Klang Valley. With higher development costs associated with prime logistics space, market rents are anticipated to experience a marginal increase in the short term.”

Meanwhile, the report provided other highlights from other real estate sectors such as the office sector, which is seeing growing demand for co-working and flexible office spaces, reflecting changing work patterns and preferences.

The retail industry is showing positive momentum. Trends indicate a surge in digital integration and experiential offerings, with retailers adapting to changing consumer preferences and enhancing in-store technologies to boost engagement and sales.

As for the hospitality sector, the luxury hotel segment is set for significant growth, with new developments dominated by international brands. Rising average occupancy rates (AOR) and average daily rates (ADR) indicate a robust recovery in the hospitality sector.

For the residential market, the Klang Valley saw 3,413 units sold for RM2.8 billion, marking an increase of 19.2% in volume and 19.3% in value, which indicates a trend towards luxury high-rise residential units.

Source: The Edge Malaysia

Kedah records highest foreign investment activity in industrial sector in 1Q2024, says Knight Frank

Malaysia aims to enhance economic cooperation opportunities through the BRICS platform as an alternative to reducing dependence on traditional markets.

In a written reply, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government is aware that reliance on traditional markets risks long-term economic development.

He explained that traditional markets, such as the United States and European countries, are increasingly introducing new unilateral trade policies and regulations, posing challenges for developing countries like Malaysia.

“Therefore, to achieve the aspirations of sustainable economic development, Malaysia must not only strengthen economic cooperation with existing trading partners but also penetrate new high-impact markets and establish economic partnerships with non-traditional trading partners,” he said in response to Datuk Seri Hamzah Zainudin (PN-Larut).

Hamzah had inquired about Malaysia’s stance on BRICS to reduce dependence on the United States and European markets.

Zafrul added that the government will always ensure that its neutral and non-aligned policy with any economic power remains unaffected.

“Good trade and investment relations with traditional trading partners such as the United States, the European Union, and the United Kingdom will also be maintained.”

Previously, Prime Minister Datuk Seri Anwar Ibrahim said the government had conducted a detailed study on all the implications of Malaysia joining the intergovernmental organisation BRICS.

During the Prime Minister’s Question Time in Dewan Rakyat, Anwar mentioned that Malaysia’s views differ from those of other BRICS member countries on specific issues and should not hinder the country’s participation.

This follows his announcement on June 18 that Malaysia will soon begin the process of joining BRICS.

He said Malaysia, in principle, has agreed to join BRICS and that the matter has been brought to the Foreign Ministry for further study.

BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).

Source: NST

Malaysia eyes economic growth through BRICS collaboration says Zafrul

MALAYSIA is on track for further economic growth this year, following a 4.2 per cent upturn in the first quarter of 2024, as announced by Bank Negara Malaysia (BNM) on May 17.

Free Malaysia Today reports that improvements in productivity in pivotal sectors of the economy — palm oil, manufacturing, services and oil and gas (O&G) — have fueled this growth.

Other contributing factors to the country’s economic surge include higher household spending, growth in employment and wages, higher capital spending and a rebound in exports.

An analysis by Ratings Agency Malaysia also projected a growth rate of 5.5 per cent in 2024, up from 3.7 per cent recorded in 2023.

Here is a closer look at how various sectors are contributing to Malaysia’s economic output.

PALM OIL

Palm oil is the cornerstone of Malaysia’s agricultural output and global trade, positioning the country as the world’s second-largest producer of the commodity.

It is also a major contributor to Malaysia’s gross domestic product (GDP) growth.

In 2022, Malaysia exported around 15 million metric tonnes of palm oil and palm oil-based products valued at around RM137 billion. The sector contributes about RM40 billion annually to the GDP.

MANUFACTURING

The manufacturing sector, accounting for RM1.2 trillion of the GDP, is one of the largest contributors to the Malaysian economy — it includes the chemical, automotive and electrical and electronics (E&E) sub-sectors.

The chemical sub-sector is expected to add RM40 billion to the GDP by 2030, following the launch of Malaysia’s Chemical Industry Roadmap 2030 (CIR2030) last August.

“With the CIR deviated policies and strategies put in place, this will move up the value chain with the high value products and would add additional RM40 billion by 2030,” said Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The automotive sub-sector contributes about RM40 billion to the GDP annually, with homegrown brands like Proton and Perodua leading the way.

With almost 30 producers and more than 600 component manufacturers, the Malaysian automotive industry is also among the largest in Asia.

As a leading player in Southeast Asia, the E&E industry is the backbone for Malaysia’s manufacturing sector. The Malaysian Investment Development Authority (Mida) reported that it accounted for 5.8 per cent of the GDP in 2023.

It aims to contribute RM120 billion to the GDP and RM495 billion in export earnings by 2025.

SERVICES

The services sector is the largest contributor to the economy, accounting for close to 55 per cent of GDP growth annually.

It includes tourism, finance and information and communications technology (ICT).

The tourism sub-sector brought in RM75 billion revenue in 2023, while the market for ICT services was valued at RM121.72 billion, according to various global databases.

The Malaysian finance sub-sector is also stable. BNM’s Financial Sector Blueprint 2022-2026 outlines efforts to foster market dynamism and support sustainable development objectives, with a continued focus on its monetary and financial stability mandates.

OIL & GAS

Of Malaysia’s many natural resources, O&G continues to be the mainstay, contributing around RM300 billion to the country’s economy.

While Petronas is the main driver of this sector, major oil companies like Exxon-Mobil and Hess Corporation of the US, PTT Exploration and Production Public Co Ltd of Thailand and EnQuest of the UK have invested in the upstream segment of the O&G sector.

Over the years, the sector has weathered global market volatilities, remaining a key source of revenue and employment for Malaysians. It significantly contributes to Malaysia’s economy at both national and state levels.

In states such as Sarawak, Sabah, Terengganu, and Johor, Petronas has trained local vendors and brought substantial economic benefits to these communities.

DRIVING THE ECONOMY TOGETHER

Malaysia’s rapid economic growth is driven by the strong partnership between the federation and the states, with national policies designed to ensure each state benefits from the country’s diverse resources.

While oil is largely extracted in or off the coast of a few states, even non-producers of the commodity share in its benefits.

In fact, each state contributes equally to the economy in its own way — Penang and Selangor lead the manufacturing sector, while Sabah, Sarawak, and Johor are the largest producers of palm oil.

Together, these sectors bolster the strength and stability of the nation’s economy.

In conclusion, all Malaysians play a role in the country’s economic growth and share in its benefits.

Source: NST

4 sectors driving the Malaysian economy

Sarawak has attracted RM4.2 billion in approved investments in the first quarter of 2024 (1Q2024), a key part of its national growth story following the launch of the New Industrial Master Plan (NIMP) 2030.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this ranks the state at fourth place in terms of value of investment flow.

He said the key achievements since NIMP 2030’s launch almost a year ago include approved investments valued at RM329.5 billon recorded by Malaysia in 2023, potentially creating almost 130,000 jobs.

“(We also achieved) approved investments of RM83.7 billion for 1Q2024, up 13% year-on-year (y-o-y), and out of this, more than 56% was approved foreign investment.

“The total investments approved will create 29,000 new jobs for Malaysians, a 14.6% increase y-o-y,” he said in his remarks at the Mida Invest Series titled “Sarawak unfolding its business potentials” here Wednesday.

Zafrul said many electrical and electronics and chemicals companies have established their presence in Sarawak, including Taiyo Yuden Sdn Bhd, OCI Co Ltd, Melexis and X Fab Sarawak Sdn Bhd.

“Together with many other domestic and foreign investors, these investments have created valuable spillover opportunities for small and medium enterprises and our fellow citizens in Sarawak, proudly contributing to the vibrant economic development of the state and nation,” he said.

The minister also said Sarawak’s ambitious green energy agenda, which aims to decarbonise its transport system and transition towards a low-carbon economy, is highly complementary to the national-level strategy on green investments, NIMP 2030 and National Energy Transition Roadmap (NETR).

He also revealed that from 2021 to March 2024, about 80% of manufacturing projects approved had been implemented.

“The high implementation rate has been made possible through initiatives such as the Invest Malaysia Facilitation Centre (IMFC) at the Malaysian Investment Development Authority, with support from key agencies like the Royal Malaysian Customs, Immigration and Inland Revenue Board, to ease investors’ journey in Malaysia,” he said.

He added that the Investment, Trade and Industry Ministry has been focusing on revamping the country’s industrial and investment ecosystem, including incentives, talent, infrastructure, as well as regulatory, procedural and institutional mechanisms.

Source: Bernama

Sarawak recorded RM4.2b investments in 1Q2024, targeting more green investments — Zafrul

The Look East Policy of the past is now replaced by ‘Cooperation with the East’, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the new policy has been discussed with Prime Minister Datuk Seri Anwar Ibrahim and compared to the previous policy, it is now expanded to include China with various other initiatives.

“The prime minister has agreed to change the Look East Policy with ‘Cooperate with the East’.

“The previous policy only included South Korea and Japan. Now, China, South Korea, and Japan are our core partners, not just for TVET (technical and vocational education and training) but for other developments”, he said in a speech at the flag-off ceremony for 56 participants of TVET initiative programmes by the Malaysian-China Institute (MCI) here today.

Zahid, who is also Rural and Regional Development Minister, believes that such a cooperation with these countries may lead to Malaysia becoming a new economic ‘Asian tiger’

“The Look East policy is no more”, he declared.

This initiative is among the results of Zahid’s official visit to China from May 22 until June 1 and an official visit by Chinese prime minister Li Qiang to Malaysia from June 18 to 20.

Also present at the ceremony was Port of Tanjung Pelepas (PTP) head of human resources Jaizal Kamar Jalaludin, National Association of Skilled Workers (PKPB) head Rizan Hassan, and Tang International Education Group chief executive officer Li Jinsong .

Also present were Ipoh Timor member of parliament Howard Lee, Malaysian Indian Transformation Unit chairman and Batu MP P. Prabakaran and representatives from Chery and China Eastern Airlines.

In his speech, Zahid highlighted the programmes under MCI which are a realisation of China’s Belt and Road Initiative.

While the original allocation made by the Chinese government for these programmes was only for around 2,000 particpants, which include both students and teaching staff, additional allocations have pushed it to more than 5,000.

Zahid said the increased allocations allows for Malaysians of all ethnic backgrounds to be given an opportunity to pursue advanced TVET education in cutting-edge technologies.

“The reason? To ensure equity for students to receive hands-on instruction.”

The 56 participants sent off today will arrive at Zhejiang International Maritime College, Yantai Vocational College and Tangshan University in China for various training programmes involving port activities and electric vehicle technology.

Source: NST

‘Look East’ is no more, now it is ‘Cooperation with the East’, says Zahid

Invest Selangor Bhd has indirectly generated 476,886 jobs and RM218.14 billion in manufacturing investments for the state since its inception in 1999.

In a post on X, Menteri Besar Dato’ Seri Amirudin Shari noted the state investment arm has attracted 6,496 manufacturing projects in Selangor in this period.

He vowed the state would maintain its economic momentum and reiterated the government’s goal of contributing RM500 billion to the national economy in the coming years.

“Invest Selangor’s 25-year journey demonstrates our relentless drive. We will not rest; Selangor remains the economic powerhouse of Malaysia.

“In 2023, we achieved a record RM406.1 billion gross domestic product (contribution), outpacing the national growth rate, but we’re not stopping there.

“By enhancing our manufacturing capacity and maintaining an annual investment of no less than RM12 billion since 2018, Selangor is becoming a strategic hub for Southeast Asia and beyond,” he said.

On Monday, Invest Selangor celebrated its silver jubilee, marking 25 years since its inception and its journey in attracting investment and helping local and international businesses establish a base in the state.

Speaking at the ceremony then, Amirudin set an ambitious target of contributing RM500 billion to the national economy within three years, but warned the state not to rest on its laurels.

In his post today, the Menteri Besar reiterated the progress of the First Selangor Plan, with 33.7 per cent of the main projects and initiatives completed as of June.

The remaining projects are at various stages of implementation, including the Integrated Development Region in South Selangor, Sabak Bernam Development Area and the new Shah Alam Sports Complex.

“Our collaboration with the private sector ensures smooth engagement with state and local agencies, paving the way for a prosperous future. Together, we can achieve anything,” he said.

Source: Selangor Journal

MB: Invest Selangor has created over 476,000 jobs, drawn RM218 bln in investment

The global supply chain operates as a vast and intricate cycle, encompassing the production, transportation, and consumption of goods and services across the world.

It is also the same flow that highlights the interdependence of economies, industries, and consumers globally, making the supply chain a dynamic and essential element of modern commerce.

Today, however, it has become clear that it is no longer a competition between the countries or companies intertwined in the supply chain, but rather a collaboration and how each one brings something to the table.

Speaking exclusively to TheStar, Boston Consulting Group (BCG) managing director and partner, Alex Dolya said each country in the Asean bloc is blessed with a different size of population, logistics, and geographical positions.

He said some of them have softer or harder commodities, each with strengths of currencies while some may even have historical prerequisites of manufacturing facilities being located there.

“What we noticed is that for the last 20 years, there’s been a trend of accelerated economic collaboration and cooperation within Asean.

“For more complex supply chains, very often one country is not enough,” he said.

Inverto managing director for South-East Asia Fahad Anwar said while the region has always been a vital hub, today, it has reinforced its position within the global supply chain.

“There are various reasons for this. One of them being the geopolitical conditions that are happening out there. Trade wars, trade restrictions between entities causing diversification of supply chains, all benefit South-East Asia.

“The other factors, if you look at it from a secular point of view, there’s a trend about wage inflation and ageing demographics and other geographies that are close by.

“Again, that is spurring investment into South-East Asia,” he said.

Fahad explained supply chains have been proliferating in the region as a result of all that.

According to Dolya, Malaysia has had a rather interesting domestic market in terms of consumption.

“If you talk to Eastern and Western big manufacturers, they think Malaysia is fantastic. In terms of logistics, talent pool, friendly visionary government, and of course, the natural resources.

“So from this perspective, Malaysia has its own competitive advantages to bring to any type of supply chain,” Dolya said.

He added it is for this very reason that BCG decided to open an Inverto office in Malaysia.

Inverto chief executive officer and BCG managing director and senior partner Daniel Weise said Inverto is BCG’s arm to bring procurement and supply chain as an end-to-end offering to its clients.

“We support our clients to take costs out of their supply chains, to make them more resilient, and actively manage the risk positions in those supply chains.

“We also help our clients to actually move on the sustainability agenda. For example, scope-free and decarbonisation, water usage. All of this is part of what we do in supply chains,” he said.

Weise said as a global company, BCG had rigorous processes when it came to the decision making about moving into the region.

He said the Asean region and the US have become a priority to them, simply for the fact that it has been a trade hub for the last 2,000 years.

“We also began the year with opening up in North America, and we will be opening an office this year in Zurich.

“Malaysia and Indonesia are the firsts in South-East Asia to have an Inverto office. We aim to become as global as possible so we need to choose wisely on where to go,” Weise said.

The disruption factor

Despite companies like Inverto making a significant mark on the procurement and supply chain sector, disruptions seem to be inevitable.

Fahad said complexities in supply chains have grown exponentially, while everything is interconnected.

He added to make matters harder, customers’ expectations have radically shifted, meaning most expect same day or next day delivery.

“At the same time, you see news of disruptions all the time. The scale is just growing because of macroeconomic and geopolitical factors.

“What happens now if you couple the two together is that a supply chain can’t react to an event like that, or even begin to figure out how to react without having digitalisation to help speed up information flow,” he said.

This, he said, is where technology and artificial intelligence have become a part of the solution.

He said for example, if a company, through intelligence, had identified that 30% of its value chain flowed through the Red Sea – a politically contentious place to be – then they would also realise the need to diversify away from it or have alternative means of getting products to customers.

“Now when you have figured out that there are alternative pathways, you have to create models because now you have a cost to your business of managing risk. Managing risk, unfortunately, comes at a cost. So you try to minimise as much as possible,” he said.

Weise said over the years, turmoils have amplified, whether it was the Covid-19 pandemic, geopolitical unrest or shortages.

“We have come to the conclusion that you cannot manage black swans, but you can anticipate those grey rhinos coming out of the fog, where we use artificial intelligence to model that out and create scenarios, but do this proactively,” he said.

Weise added that using AI is one of BCG and Inverto’s super strengths – there is a workforce of more than 2,000 software engineers, developers, and platform engineers who programme and give AI the architecture it needs for the supply chain.

“What we now see with generative AI is that it can be even quicker than we have anticipated, it takes less time to conceptualise towards the ready-to-use product.

“That is why the BCG investment we made five years ago in that workforce is now paying off tremendously,” he said.

Automation on the other hand, has been utilised at BCG for the last ten years or more.

Despite this, Dolya said supply chains are vulnerable from a digital point of view, in particular from cyberattacks.

To this end, a practice area of tech applications and non-tech applications are set up, whereby the team learns how to mitigate such issues if it should take place for real.

The people factor

Dolya reiterated how important the people factor is as the backbone of not only companies but also entire supply chains.

He said some 20 years ago, no one might have heard of a discipline to do with procurement or supply chain, it was simply not common at all.

“Today however, this has changed. There is a growing number of universities across the globe and even here in Malaysia that are starting to uncover this specialisation and offer these disciplines to students,” he said.

Dolya said this was magnified especially during the pandemic, as supply chains were often at the forefront of news for its disruptions and deficits.

He said when speaking to the younger generations, a majority have been excited because it is stimulating and intellectually interesting.

“Right now, if you ask a young person, why would you want to study a course in supply chain? They would say, it has an impact because we can fix something which is broken. It is also such a data-rich environment that you can analyse so many data points and apply quite advanced mathematical computer science,” he said.

Dolya added there’s been a mega trend of professionalisation of the whole supply chain body of knowledge and how it is being taught in undergraduate and graduate programmes.

Weise added what is in fact, fuelling this trend is that many of the chief executive officers of renowned companies were previously chief procurement officers.

“If you think about a very recent example,Tim Cook who leads Apple Inc, he was the CPO of Apple.

“Think about some of the German automotive companies where the CEO has been a CPO, there is really a pathway now for talent also going via the procurement and supply chain to become the CEO of a company,” Weise said.

He noted companies today are keen on leaving corporate Siberia, and leaning towards becoming a meaningful corporate function that fuels growth.

“The growth we have been describing does not only show that universities emphasise more on the important pathway, but also that companies themselves invested a lot by recruiting the right talent for the procurement supply chain.

“It gives them a home and invests in their expertise, so they become really knowledgeable.”

Source: The Star

Building resilient supply chain

Malaysia’s confirmation of its involvement in the Belt and Road Initiative (BRI), among the first in Asean to do so, has further cemented its economic partnership with China, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said this has brought about transformative projects that enhance connectivity and economic development.

“Indeed, the business communities of Malaysia and China have been at the forefront of our bilateral relations,” he said in his speech at the launch of the BRI cooperation sharing forum here today.

Tengku Zafrul said Chinese companies have invested significantly in Malaysia, from large-scale infrastructure projects like the East Coast Rail Link to hi-tech industries in special economic zones.

“These investments have created jobs, transferred technology, and boosted Malaysia’s economic growth.

“Likewise, Malaysian companies have also made their mark in China, particularly in sectors such as construction, finance, agriculture produce, and halal food production,” the minister said.

Tengku Zafrul said the second cycle of the Five-Year Programme for Economic and Trade Cooperation (2024-2028) between China and Malaysia is set to further deepen links between the nation’s industries in priority sectors such as hi-tech manufacturing and the digital economy.

“This programme will promote cooperation in automotive manufacturing, digital economy, innovation and startup, financial services as well as research and development in agriculture and primary industries.

“These initiatives will not only drive economic growth but also foster technological advancement and innovation in both our countries,” he added.

Tengku Zafrul said today’s event, organised by the Southeast Asia Research Centre for Humanities, took place as Malaysia and China celebrate a significant milestone — the 50th anniversary of the two nations’ diplomatic relations.

“Over the past five decades, our two nations have fostered a bond that has not only strengthened our economic and business ties but also enriched our cultural and people-to-people connections.

“Today, we celebrate the achievements of the past, recognise the present opportunities, and look forward to a future of even greater collaboration,” he said.

Tengku Zafrul said China has been Malaysia’s largest trading partner for the last 15 consecutive years, with bilateral trade of RM450.8 billion in 2023.

“This robust trade relationship reflects the mutual trust and a shared vision for prosperity between the two countries. Our economic ties are not just about numbers; they represent real benefits for our people,” he said.

Tengku Zafrul said Malaysian exports such as electrical and electronics, mining goods, chemicals and chemical products, liquified natural gas, palm oil, and rubber have been welcomed by China, while Chinese investments in Malaysia have spurred growth in infrastructure, technology, and manufacturing sectors.

China was among the five largest sources of foreign investment into Malaysia in 2023 with a total investment of RM14.5 billion.

From 1980 to 2023, 497 manufacturing projects with participation from China, valued at RM74.2 billion, have been implemented, creating more than 82,000 job opportunities for Malaysians, he added.

Source: Bernama

Nation’s involvement in Belt and Road Initiative strengthens partnership with China — Tengku Zafrul

This transformation is creating new opportunities while potentially displacing some traditional roles 

EMERGING job sectors like sustainable energy, smart infrastructure, data analytics and cyber security are reshaping the job market. 

Roles such as new energy engineers, smart city architects, big data analysts, Internet of Things (IoT) experts and cyber security specialists are increasingly important, hence the need to upskill and reskill to bridge the gap between job requirements and current workforce skills. 

Meanwhile, many young graduates face underemployment and skills mismatch. To tackle this, the government and industries are improving training programmes and educational curricula. 

The government is pushing for technical and vocational education and training programmes, and Science, Technology, Engineering and Mathematics subjects to meet the demand for tech professionals. 

Dr Paul Anthony Mariadas, a senior lecturer from Taylor’s University’s School of Accounting and Finance said the future job market will be driven by several key trends. 

“Automation and artificial intelligence (AI) will transform job roles, significantly increasing the demand for tech skills,” he told The Malaysian Reserve (TMR). 

New Job Opportunities 

This transformation is expected to reshape industries across the board, creating new opportunities while potentially displacing some traditional roles. 

He also said remote and gig work would become more prevalent, supported by global talent pools. 

This shift towards more flexible work arrangements (FWAs) is likely to change how companies operate and how individuals approach their careers. 

Mariadas noted that sustainability and green jobs are also emerging, focusing on renewable energy (RE) and environmental protection. 

This shift towards sustainability is expected to create new opportunities in various sectors, from energy production to urban planning and environmental management. 

As the world grapples with climate change and resource scarcity, professionals with expertise in sustainable practices will be increasingly sought after. 

Mariadas also emphasised on continuous learning and upskilling, with a focus on both tech and soft skills. 

This adaptability will be essential for future job seekers to remain competitive in an ever-changing market. 

The rapid pace of technological advancement means that skills can quickly become obsolete, making lifelong learning a necessity rather than an option. 

Specifically, Mariadas said the healthcare and biotech sectors will expand due to ageing populations and telehealth advancements. 

He also noted the growing importance of diversity, equity and inclusion initiatives in shaping inclusive workplaces, suggesting that professionals with skills in these areas will be in high demand. 

Mariadas also discussed urban development and its impact on future job markets. 

“Global supply chain management and smart city development will drive demand for experts in urban planning and sustainable infrastructure,” he said. 

This trend reflects the ongoing urbanisation of the global population and the need for more efficient and sustainable cities. 

On what are the most valuable skills for the future workforce, Mariadas gave a list that balanced technical and soft skills. 

He said data analysis, AI, machine learning and cyber security will be highly valuable, while digital literacy in emerging technologies and digital marketing will be crucial. 

Meanwhile, soft skills like critical thinking, creativity, emotional intelligence and strong communication will be more valuable as AI and automation take over more routine tasks, leaving complex problem-solving and interpersonal interactions to human workers. 

Mariadas also noted the dual nature of technological advancement — while it may displace some jobs, it also creates new opportunities in emerging fields. 

He then mentioned that the increasing remote work trend will have far-reaching implications which would enable access to a global talent pool, fostering diversity and bringing specialised skills to organisations without geographical constraints. 

Skill Development and Working Experience

This globalisation of the workforce could lead to increased competition but also opens up new opportunities for job seekers to find roles that match their skills and interests, regardless of their location. 

Mariadas suggested young professionals focus on developing a versatile skill set that combines technical expertise with strong soft skills. 

This balanced approach to skill development recognises the importance of both technical proficiency and the ability to work effectively with others. 

He also pointed out the importance of gaining practical experience through internships, freelance projects or volunteering. 

“Hands-on experience enhances your employability and showcases your capabilities to potential employers. 

“This practical approach can help young professionals to bridge the gap between academic knowledge and real-world application of skills,” he said, adding that building a professional network and seeking mentors who can provide guidance are crucial. 

He said these connections can provide valuable insights, opportunities and support throughout one’s career. 

Additionally, Mariadas said there is a need for proactive adaptation and investment in education and training, as well as thoughtful policy frameworks to navigate these changes successfully. 

Meanwhile, business law lecturer Dr Ridoan Karim said while AI is often perceived as a future technology, it is already deeply integrated in the present landscape. Ridoan, who is also deputy director of Undergraduate Studies at the School of Business at Monash University Malaysia, said this brings attention to the urgency for professionals to adapt to AI technologies across various sectors. 

AI Not Replacement for Human Intelligence

He said AI’s capabilities are primarily focused on analysing information and performing predefined tasks, rather than replicating human-like intelligence. 

“AI is an intelligent tool that can gather a lot of information, analyse it and present a summary of information,” he elaborated, demystifying AI and presenting it as a powerful tool rather than a replacement for human intelligence. 

Ridoan also underlined the enduring importance of human skills in the job market for tasks related to creativity and empathy. 

He said robots can only do what they are programmed to do, reflecting the limitations of AI. 

While many jobs can be done remotely today, certain professions still require in-person interaction, such as healthcare. 

Ridoan underlined the importance of human empathy of a nurse which cannot be replicated by an AI robot, regardless of how well it was programmed to do so. 

Regarding job transitions, Ridoan drew parallels with past technological revolutions, saying it has been happening since the Industrial Revolution. 

He noted that with every new technology, there are some transitions to new jobs but that did not push humans out of work. 

This historical perspective provides reassurance that while roles may change, new opportunities will emerge. 

This optimistic view suggests that AI-driven changes in the job market could lead to more fulfilling and productive work for humans rather than widespread unemployment. 

Ridoan warned that those unable to adapt to new technologies might face challenges in their careers regardless of their existing knowledge or experience. 

He said for example, in academia, there are many highly regarded professors who are struggling at work just because they could not get used to today’s technologies. 

However, Ridoan pointed out AI’s potential to exacerbate societal inequalities as only those who have the means to access AI will have better job and business opportunities hence, he said, the importance of ensuring equitable access to AI technologies and education. 

On fields that job seekers should look out for, Ridoan stressed the continued importance of service industries. 

He suggested that AI would augment rather than replace these professions, enhancing their capabilities and efficiency. 

“Even with AI, we will seek the advice of a legal counsel, a doctor or an auditor,” he said, arguing that these professions would evolve to work alongside AI, leveraging its capabilities to provide enhanced services. 

This illustrates the complex interplay between technological capabilities, regulatory frameworks and human skills in shaping the future job market. 

Addressing the risks in the evolving job landscape, Ridoan pointed out the challenge of continuous training and professional development. 

He said companies now have to spend a larger amount of capital for human training and professional developments. 

However, Ridoan said large corporations are at an advantage in leveraging AI technologies. “Big companies can purchase the resources and easily adapt while smaller companies struggle,” he said. 

Continuous Learning and Adaptation

Malaysia Employers Federation (MEF) president Datuk Syed Hussain Syed Husman highlighted the importance of embracing technological advancements and sustainability in today’s workforce. 

He said the integration of technology, digitalisation and sustainability is driving significant growth in the future job market. 

Businesses across various sectors are investing heavily in digital transformation initiatives, adopting sustainable practices and leveraging new technologies to innovate and maintain their competitive edge. 

“Professionals skilled in new technologies, digital strategy, data analytics, sustainability practices and digital marketing are exceptionally well-positioned to seize these emerging job opportunities,” he told TMR. 

Syed Hussain stressed the necessity for continuous learning and adaptation in the workforce as the current job market evolves rapidly due to technology. 

“Industries are continuously disrupted by technologies such as AI and IoT, making it crucial for job seekers to stay abreast of these advancements,” he added. 

Short-term courses and certifications, coupled with the accessibility of free online learning platforms, can quickly fill skill gaps and align with industry standards, encouraging all employees to seize these opportunities for skill enhancement. 

Syed Hussain said technological progress has catalysed the emergence of entirely new sectors, for instance, the rapid growth of RE has spurred job creation in solar and wind power industries. 

He pointed out the expansion of industries like e-commerce, leading to new roles in logistics, digital marketing and customer service. 

“Professions such as data scientists, AI specialists, cyber security analysts and cloud computing experts were non-existent decades ago but now play indispensable roles in modern business landscapes. 

“Technology enhances traditional jobs rather than replacing them, in healthcare, for example, it aids doctors in diagnosing and planning treatments, ultimately improving patient outcomes,” he said. 

Syed Hussain remarked on the transformative impact of remote work technologies, enabling FWA that enhance work-life balance. 

“This has created new opportunities for flexible work setups, allowing individuals to work from anywhere and achieve a better balance between personal and professional lives,” he noted. 

Based on findings from the MEF Survey on FWAs, 70.5% of employers have observed a rise in hybrid work models, with 60.7% expanding remote work opportunities, signalling notable changes in workplace dynamics. 

Syed Hussain said these changes reflect broader trends in business adaptation and the leveraging of technological advancements, with continued shifts towards hybrid and remote work models that prioritise collaboration and team-building activities in office spaces. 

Importance of Digital Skills 

He also noted that digital skills are becoming essential for future job seekers, as technology continues to integrate into daily life and business operations. 

Mastering skills like digital literacy, data analysis, communication and cyber security is crucial for individuals to thrive and enhance their employability in today’s job market. 

On the relevance of the gig economy, Syed Hussain observed that its emergence has brought about significant changes in the traditional job market, offering both workers and employers increased flexibility and new opportunities. 

He said technological advancements, particularly through digital platforms and mobile apps, have been instrumental in expanding the gig economy, making it easier for businesses to connect with on-demand talent.

“To retain talent, employers are increasingly adopting FWAs such as remote work, flexible hours and hybrid models that blend office-based and remote work environments,” he added.

The importance of effective government regulation in adapting to these technological and demographic shifts was also highlighted, with recent amendments to the Employment Act 1955 aimed at integrating FWAs.

These changes are designed to meet modern workforce expectations while ensuring compliance with updated regulatory standards. 

Syed Hussain emphasised the growth of various upcoming job prospects, advising job seekers to focus on a variety of technology-related fields such as computer science, AI, machine learning, finance, health data analytics, digital marketing, game design, and environmental science and engineering. 

The green economy is also gaining recognition as a critical sector for tackling global environmental issues like climate change, biodiversity loss and resource depletion. 

As societies and industries increasingly prioritise sustainability and environmental stewardship, jobs within the green economy are anticipated to be highly sought-after. 

Meanwhile, Syed Hussain said as technology integrates more into jobs, there is a delicate balance between supply and demand. 

“With technology advancing quickly and more automation in businesses, there’s a growing need for digital professionals, but there are not enough skilled experts in digital fields, causing a job market gap which leads employers to offer competitive pay and higher wages to attract and keep qualified professionals,” he said. 

This pressure means businesses must invest not only in technology but also in training programmes to build a strong talent pool. 

There is also an urgent need for schools and industries to work together to develop digital skills in the workforce. 

On the shifts in Malaysia’s job market, Syed Hussain underlined the profound impact of technology advancements, changes in societal norms, evolving demographics and dynamic regulatory changes. Furthermore, he highlighted the transformative effect of digital platforms and e-commerce on retail and marketing sectors, stressing the growing importance of roles in digital marketing, data analytics and cyber security while the rising demand for expertise in sustainability and green technologies reflects broader environmental priorities. 

Syed Hussain echoed the importance of balancing soft skills and technical skills. 

“Technical skills are important for specific job tasks, but strong soft skills like communication, teamwork and adaptability are what truly distinguish individuals in their career. 

“Meanwhile, someone with strong soft skills but less technical expertise may struggle with tasks and contributing to projects, and employers nowadays value candidates who have a good mix of technical knowledge and strong soft skills,” he said. 

This balance helps individuals advance in their careers but also boosts organisational success by encouraging innovation, creativity and resilience. 

He also advised future job seekers to maintain a positive attitude towards tasks, prioritise skills that support long-term career development in a changing job market and stay updated with technological advancements crucial for maintaining competitiveness and employability. 

Source: The Malaysian Reserve

Future jobs: How technology, sustainability reshape the workforce

In the second quarter of 2024 (2Q24), businesses in Malaysia maintained a positive outlook, as revealed by the RAM-CTOS Business Confidence Index (BCI) survey.

The latest figures, released by RAM Holdings Bhd and CTOS Digital Bhd, showed an overall BCI of 54, up slightly from 53.4 in 2Q23, marking the second consecutive quarter above the neutral mark of 50.

Corporate sentiment surged to 59.3 in 2Q24, an improvement from 57.1 in 1Q24, highlighting robust optimism among larger enterprises.

Meanwhile, small and medium enterprises (SMEs) remained optimistic at 52.6, albeit slightly lower than the 53 recorded in 1Q.

Respondents indicated heightened confidence in their business performance outlook for 2Q24, with both the sales (2.1 points to 56.4) and profitability sub-indices (1.5 points to 50.5) showing quarter-on-quarter improvements.

However, concerns lingered over profitability, which just surpassed the neutral 50 mark, influenced by persistent cost pressures.

The survey, conducted from May 27 to June 18, involved 109 respondents, with nearly 80% citing rising business costs as their top challenge, a decrease from 90% in the previous quarter.

Despite these challenges, respondents expressed optimism about future prospects.

CTOS Digital group CEO Erick Hamburger commented on the positive trend, noting the importance of business agility and ongoing support through data analytics, digital solutions and training initiatives.

The recent retargeting of diesel subsidies had minimal impact on business sentiment, according to survey results.

Responses collected before and after the policy change indicated a slight uptick in sentiment post-implementation for corporates, contrasting with a marginal decline for SMEs.

Looking ahead, concerns loom over the upcoming phase-out of blanket RON95 subsidies, with two-thirds of firms expecting cost increases for their products or services, given RON95’s significant role in their overall business costs.

Moreover, the Progressive Wage Policy (PWP) emerged as a focal point for businesses, with 61% expressing concerns over higher labour costs.

Despite apprehensions about compliance and productivity benchmarks, a majority foresee benefits such as improved morale, talent retention and enhanced productivity from PWP adoption.

RAM Holdings group CEO and ED Chris WK Lee noted the need for broader adoption and better communication of the PWP’s benefits among businesses, stressing its potential to reshape Malaysia’s wage landscape.

“We welcome the implementation of the PWP, given the potential benefits of a restructured wage system, which links wage increases to training and upskilling.

“However, a more broad-based adoption is needed to realise its full benefits to the nation as a whole,” said Lee.

Source: The Malaysian Reserve

Malaysian businesses maintain optimism in 2Q24

More firms keen on investing in special economic zone with S’pore

As the discussions for the proposed Johor-singapore Special Economic Zone (JS-SEZ) enter their final stages, the project is attracting more interest from investors and multinational companies.

State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said there has been a series of engagements by the Johor government with stakeholders pertaining to the JS-SEZ.

“We have been talking to these stakeholders in Singapore and Kuala Lumpur. Soon, there will be another forum with stakeholders in Johor.

“The state government will continue to hold such engagements before the JS-SEZ framework agreement is signed in a couple of months.

“Feedback for the project has been very encouraging so far,” he said.

Lee, who is also the Paloh assemblyman, said the state government has received many enquiries about the JS-SEZ from multinational companies that are considering whether to pour their investments into the JS-SEZ, Penang or Vietnam.

“These companies are waiting to know what benefits they will get in terms of things like corporate tax or income tax if they invest in JS-SEZ.

“These matters are being ironed out and once the JS-SEZ framework is signed, then we can see multinational companies moving their operations here,” he said.

The state government, said Lee, is confident that having the JS-SEZ will be a game changer that benefits not only Johor but Malaysia as a whole.

“The investments we are looking at for JS-SEZ will provide not only employment opportunities but also high-paying ones.

“This is essential for us to address brain drain, which affects Johor the most among the states.

“With higher salaries, our local talent can work here with pay that is on par with working abroad,” he said.

On Thursday, Johor Mentri Besar Datuk Onn Hafiz Ghazi said the framework for the JS-SEZ is in the final phase of discussions and is expected to be finalised in September.

He noted during an investment forum organised by the Economy Ministry in Kuala Lumpur recently that adequate manpower, ease of doing business and good connectivity are among the main factors being worked on to make the JS-SEZ a success.

The forum brought together some 200 stakeholders to discuss opportunities, challenges, strategies and cooperation involved in implementing the JS-SEZ framework.

Onn Hafiz has also repeatedly expressed the state’s aspiration to turn the JS-SEZ into the “next Shenzhen of South-east Asia”.

Source: The Star

Sunny outlook for Johor

Political stability is key to attracting investments to Malaysia, as it allows the government to formulate the right policies to convince investors.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said foreign and domestic investors placed significant consideration on the policies put forward by any government before making huge and long-term investment decisions.

“When I asked the investors why they chose Malaysia and KHTP (Kulim Hi-Tech Park), one of the main reasons was that they needed political stability to ensure we have the right policies in place.

“These are hard to formulate if our politics are unstable.

“Hence, government stability is paramount, and they believe the current government can speed things up (formulating the right policies),” he told reporters after opening the Merbok Umno division delegates’ annual general meeting at the Sungai Petani Municipal Council Tower here today.

Present was Merbok Umno division chief Datuk Shaiful Hazizy Zainol Abidin.

Zafrul said good cooperation between the federal and state governments, regardless of political differences, played an important role in realising investments.

“I wish to reiterate that the ministry and I believe my colleagues in the cabinet do not view states under the opposition, such as Kedah, as a hindrance.

“We have good cooperation with the state government to make sure all Kedahans will reap benefits from the country’s economic growth,” he said.

Zafrul paid tribute to state-owned Kulim Technology Park Sdn Bhd (KTPC) for its instrumental role in facilitating investment in KHTP.

He lauded KTPC’s long-term plan to further strengthen KHTP’s position as a preferred high-technology investment destination.

“We had a meeting with the KHTP management yesterday, and they have presented a good report since for the first quarter (of 2024) Kedah has attracted about RM31 billion in investments, of which RM30.1 billion went to KHTP, he said, adding that the investments were made possible by KHTP’s high-performing top management team.

Zafrul said that during the meeting, he was briefed on a plan to realise the approved investments and the long-term plan to strengthen KHTP’s operation.

Last month, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said Kedah secured the top spot in approved investments among the states for the first quarter by logging RM31.3 billion in investments.

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

From the total, RM30.9 billion are approved investments in the manufacturing sector and RM327.6 million are investments in the services sector.

He said RM30.6 billion, or 97.7 per cent, of the investments are foreign direct investments, while the remaining RM656.2 million, or 2.3 per cent, are domestic investments.

Source: NST

Tengku Zafrul: Political stability key to attracting investments

ingapore firms view Johor as an attractive destination and are eager to set up operations and invest in the proposed Johor-Singapore Special Economic Zone (JS-SEZ), according to a report released by the Singapore Business Federation (SBF).

Key findings from the JS-SEZ Singapore Business Working Group’s (SBWG) report, titled ‘Greater Together: Two Economies, One Ecosystem,’ revealed that 93 per cent of respondents consider Johor an appealing investment destination, with half of them already operating in the state.

However, they expressed concerns about sourcing skilled and technical workers, congestion at the land crossings delaying the movement of people and goods, and difficulties handling tax issues.

Nearly 60 per cent of the Singaporean businesses surveyed reported challenges in sourcing technical and skilled workers in Johor, and they also faced difficulties in attracting Singaporean talent to work across the border.

Additionally, 61 per cent of the companies attributed the manpower crunch to employment pass issues, 58 per cent cited skill gaps in the Malaysian labour force, and 21 per cent pointed to salary mismatches as a contributing factor.

The findings were released at a JS-SEZ Joint Investor Forum on Thursday and are based on SBF’s engagements with 160 Singaporean businesses across various industries. Speaking at the forum, SBWG Chairman Teo Siong Seng said the enthusiastic response to the report highlights the JS-SEZ’s great potential for the region.

“This isn’t just another project; it’s a potential game-changer for both Malaysia and Singapore. This is about more than just closer integration; it’s about crafting an economic powerhouse that harnesses our complementary strengths on a sustainable basis. 

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

To address the manpower crunch, the SBWG suggested that authorities from both sides create a unique labor ecosystem that leverages the strengths of the two economies: Singapore’s research and development (R&D) and management capabilities with Johor’s technical skills for execution and operations supporting various industries.

Other key proposals included developing harmonized workforce regulations, investing in each other’s workforce to enhance manpower capabilities and bridge skill gaps, and establishing talent acquisition programs.

In January, Singapore and Malaysia signed a Memorandum of Understanding (MOU) on the JS-SEZ, which is expected to offer both fiscal and non-fiscal incentives like tax breaks and easier travel between the two countries.

The special economic zone will target sectors related to electronics, financial services, business-related services, and healthcare.

Economy Minister Rafizi Ramli, who is heading SEZ negotiations for Malaysia, said at an investor forum for the JS-SEZ on Wednesday that the signing of the agreement is on track for September, with officials from both sides working on finalizing the details.

Rafizi said that Malaysia has presented its framework to Singapore and is awaiting a response, adding that negotiations should be kept confidential and that specific details, including the JS-SEZ’s geographic scope, can only be announced after the agreement is signed.

Following that, Malaysia aims to present its financial package for the JS-SEZ, including fiscal and non-fiscal incentives, in the October budget speech.

Source: NST

9 in 10 Singaporean firms keen to invest in Johor