After Malaysia’s approved investment grew 13% in the first quarter (1Q2024), the country’s approved investment growth for 2024 should at least match its annual gross domestic product (GDP) growth, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Malaysia achieved a record year in 2023, with approved investments totalling RM329.5 billion, up 23% from RM267.7 billion in 2022. Of 2023’s tally, 57.2% of the approved investments came from foreign capital and 42.8% from domestic investments.

The official forecast for GDP growth this year is 4% to 5%.

“We are still working on this year’s [approved investment] target. The number that Malaysian Investment Development Authority (Mida) had given me, I cannot accept at the moment because I think it is low balling,” Zafrul said at the Stratum Focus Series, jointly held by Bursa Malaysia and Hong Leong Investment Bank (HLIB) on Wednesday.

“With the first quarter (1Q2024) approved investment already up 13%, how can it be flat? To me, there should be at least a positive correlation with the GDP growth. This year’s GDP growth is between 4% and 5%, so approved investment should grow at least one time that rate.  

“Of course, we can see from the pipeline of projects and investments, [that] it looks very strong,” he added.

It was reported that Malaysia recorded approved investment amounting to RM83.7 billion in the first three months of 2024 (1Q2024), marking a 13% increase from the RM74.1 billion recorded in the previous year’s corresponding period.

Source: The Edge Malaysia

Zafrul: Malaysia’s 2024 approved investment growth should at least match its GDP growth after 1Q’s 13% jump

Malaysia achieved foreign direct investment (FDI) net inflow of RM40.4 billion in 2023 while direct investment abroad (DIA) totalled RM40.6 billion according to the Department of Statistics Malaysia.

Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the FDI net inflow in 2023 decreased from RM75.4 billion in the previous year mainly due to equity and investment fund shares, reflecting the global economic slowdown.

“This was in line with Unctad’s 2024 Global Investment Trends Monitor report which highlighted that the FDI flows to developing countries declined approximately 9%, totalling US$841 billion in 2023. Notably, developing Asia dropped around 12% to US$ 584 billion, with Asean’s FDI decreasing about 16%,” he added.

However, the cumulative value of foreign investment, known as the FDI position rose to RM926 billion at the end of 2023, making up 50.8% (2022: 49.0%) of gross domestic product (GDP), primarily attributed to non-transaction categories.

Meanwhile, DIA net outlow fell from RM62.8 billion in the preceding year, while the stock increased to RM664.4 billion, representing 36.4% (2022: 33.8%) of GDP.

Looking at the sectoral distribution, the services sector emerged as the primary recipient of FDI, with a net inflow of RM35.4 billion, surpassing the manufacturing sector. Within services, information and communication contributed the highest share, which is in line with emerging digital global business and data centre related activities, followed by the financial and insurance/takaful sub-sector.

The manufacturing sector remained the highest contributor to total income despite lower net inflow, generating RM41.9 billion, largely driven by the electrical, transport equipment, and other manufacturing sub-sectors. Cumulatively, both services and manufacturing sectors significant value in position, with RM468.2 billion and RM391.3 billion, respectively.

Geographically, Asia remained the dominant source of FDI, contributing RM54.3 billion in 2023 with a position valued at RM508.4 billion. Leading investors from the region included Singapore, Hong Kong and Japan. The Americas, particularly the United States, earned the highest income from FDI, totalling RM41.4 billion.

On Malaysia’s investments abroad, Mohd Uzir said, “The DIA net outflows were mostly contributed by the services sector with a value of RM34.5 billion, primarily in financial and insurance/takaful activities and utilities. This sector also generated the highest income at RM23.9 billion, followed by mining and quarrying RM10.7 billion.

Seemingly, the services sector remained the primary contributor of DIA in 2023 by registering the accumulated position at RM461.1 billion, trailed by mining and quarrying at RM80.5 billion and manufacturing at RM60 billion.

In terms of region, Asia remained the leading destination of DIA flows in 2023 with RM29.9 billion, particularly to Singapore and Indonesia.

The highest income was also generated from Asia, amounting to RM24 billion, especially from Singapore, Indonesia and Vietnam. Hence, the DIA position of Asia stood at RM365.1 billion at the end of 2023, the highest contributor among other regions. The Americas was the second largest contributor for DIA outflows and income, both amounting to RM7.5 billion, with a total position of RM156.2 billion.

On average, the return on investment for FDI companies in 2023 decreased to 10 sen from 12 sen in the previous year for every RM1 of investment. Concurrently, Malaysian companies received 6 sen for every RM1 of investment made abroad.

Source: Bernama

Malaysia’s FDI inflow at RM40.4b DIA outflow at RM40.6b in 2023

Google’s latest investment highlights Malaysia’s competitiveness, ease of doing business and growing importance as a regional hub for digital innovation, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the investment acknowledges the nation’s potential to lead the region’s digital economy.

“This is particularly pertinent as Malaysia intends to strongly promote the digital economy regionally when we take up the Asean chairmanship next year.

“Google’s presence will not only create thousands of high-skilled jobs but also accelerate the digital transformation of our businesses and public sector, strengthening our tech leadership and supporting Malaysia’s positioning as a tech hub in Southeast Asia,” he said at Google Cloud Malaysia Day today.

Tengku Zafrul said this investment serves as a strong foundation for Malaysia to embrace the cloud as a springboard for its operations and business innovation, unlocking opportunities and contributing to the growth and prosperity of the Malaysian economy.

He said digitalisation and artificial intelligence (AI), among others, are key to shaping a sustainable and inclusive socio-economic future, and that the cloud is our gateway to that promising horizon.

He added that the Madani government recognises the transformative power of digitalisation, cloud computing and AI, making them key drivers in our economic roadmaps, such as the New Industrial Master Plan 2030.

“We understand investing in cloud infrastructure and fostering a digital-first mindset is essential for creating a sustainable and prosperous future for our nation,” he said.

Tengku Zafrul said the positive and deep impact of cloud technologies on the Malaysian economy is clear.

It boosts productivity and creates high-skilled jobs, he said.

Malaysia has seen a surge in efficiency and innovation as industries leverage cloud-based solutions to streamline operations, automate tasks and gain valuable insights from data.

The manufacturing sector, in particular, has embraced cloud-enabled technologies to optimise supply chains, monitor equipment performance and improve production efficiency.

“The healthcare industry has also seen significant benefits, with hospitals leveraging cloud technology to improve patient care, manage electronic medical records and facilitate telemedicine services.

“These advancements not only drive productivity by leveraging data-driven insights but also create demand for high-skilled professionals in areas like data analytics, software development and cloud architecture,” he said.

Source: Bernama

Google’s investment testament to Malaysia’s competitiveness — Tengku Zafrul

There is potential for approved investments this year to exceed last year’s RM329.5 billion given the positive data from the first quarter of 2024, Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz said today.

Malaysia recorded RM83.7 billion in approved investments across various sectors in the first quarter, representing a 13 per cent increase from RM74.1 billion in the same period last year.

“We can see from the pipeline of projects. It looks very strong. Some are approved and some are yet to be approved. We must make sure those investments are approved as soon as possible,” he said, adding that some are pending the local council’s approval, such as the water sector.

“So, we need to push through to get better numbers,” said Tengku Zafrul at the Bursa Malaysia-Hong Leong Investment Bank Stratum Focus Series XVII “SEMICON: Light at the end of the tunnel?” event today.

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In 2023, Malaysia recorded a historic high of RM329.5 billion in approved investments, marking a 23 per cent increase from RM267.7 billion in 2022. Of the 2023 total, 57.2 per cent came from foreign investments, while 42.8 per cent came from domestic sources.

“This year’s GDP (Gross Domestic Product) growth is between four per cent and five per cent, so approved investment should grow at least one time that rate,” he said.

source: Bernama

Strong investment pipeline expected in Malaysia for 2024, says Tengku Zafrul

The economic partnership between the United States (US) and Malaysia has led to many shared accomplishments in the last 50 years, said US Ambassador to Malaysia, Edgard D. Kagan.

The ambassador said that in his keynote address at the 47th annual general meeting of the American Malaysian Chamber of Commerce (AMCHAM) today, Prime Minister Datuk Seri Anwar Ibrahim highlighted that US investments are the leading source of foreign direct investment (FDI) in Malaysia.

“Not only do US investments support Malaysia’s bottom line, but their commitments to training and upskilling Malaysian workers and developing impressive corporate social responsibility programmes underscore US-Malaysia shared ties and enduring values.

“We are looking forward to celebrating the opportunities that lie ahead,” he said in his official X.com (formerly Twitter) posting today (June 25). 

Source: Bernama

US Ambassador lauds US-Malaysia economic partnership

Malaysia has enormous potential to emerge as an “economic giant” in the region, said Prime Minister Datuk Seri Anwar Ibrahim.

Speaking during the luncheon of the 47th annual general meeting of the American Malaysian Chamber of Commerce (Amcham), Anwar stressed that Malaysia must remain a trading nation and be open to investments.

“We made it very clear that the government will support investments from overseas, particularly from the United States,” he said in reference to the domestic issue surrounding BlackRock.

Anwar, who is also the finance minister, revealed that the government is addressing the issue of preparedness to undertake the necessary measures to ensure Malaysia remains competitive and continues to grow. “We have the workforce, infrastructure and the semiconductor ecosystem, and now we are pushing ahead on the fast track the issue of energy transition, both in Peninsular Malaysia and Sabah and Sarawak,“ he said.

Anwar noted that Penang is a fine example of how investments from foreign investors have immensely benefitted the country’s economy. The Prime Minister said the advantages can be seen through the transfer of technology, training and the establishment of centres of excellence.

“From the early days…Intel Corporation for example, used Penang as their base, and Penang has now emerged as one of the major centres for semiconductors in the country, from the back end to the front end.

“Therefore, (I am) here to personally acknowledge that and thank you for your confidence and (we will) give all the necessary support and help to facilitate (and) we will accelerate (the investment process),” he said.

Anwar said although there are growing investments from Europe, particularly Germany and Netherlands, and also China, cumulatively the United States is the largest investor in Malaysia.

Source: Bernama

Malaysia has potential to become ‘economic giant’ in region – PM Anwar

Seeking a formal membership to join BRICS, the largest and most influential geo-political grouping, is certainly the right thing for Malaysia to do as the global landscape changes.

The group was founded by its core members of Brazil, Russia, India, China and South Africa, thus the acronym of BRICS, but its membership has expanded very fast as countries search for multi-polar platforms.

A week ago, Thailand submitted its formal request to join the grouping of emerging economies.

It was reported that Thailand hopes to become a member at BRICS’ next summit in Russia in October, which will make the country the first Asean country to do so.

But Malaysia’s entry into BRICS would even be more significant as it will hold the Asean chairmanship next year.

Given Prime Minister Datuk Seri Anwar Ibrahim’s global stature and influence, it would certainly be more significant.

The new members of BRICS have included Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates with over 30 countries having expressed interest, according to a Reuters report last week.

While there are some commentators, who have expressed concern at Malaysia’s decision to join BRICS, a grouping they said is spearheaded by Russia and China.

They see these two countries which have challenged the world order headed by the United States and its Western allies.

While these worries are understandable, they are not entirely accurate.

India, for example, is regarded to be close to the West and has well-published differences with China, but it also has a reputation for pursuing a fiercely independent foreign policy.

Malaysia has repeatedly said it would not take sides in the rivalry between the US and China and has been careful in its handling of the delicate situation.

After all, Malaysia has also gained much from the US-China chip war, for example, with Penang being the largest benefactor.

The state reportedly attracted RM60.1 billion in foreign investment last year, then the total it received from 2013 to 2020 combined.

Certainly, Malaysia will continue to welcome US investments into Malaysia, and would not do anything to harm that friendship.

The report said that the broadening curbs on Chinese technology, especially for chipmaking, are a key reason for neutral Malaysia’s appeal.

At the same time, Malaysia is also mindful that China has been its largest trading partner for the last 40 years.

Malaysia, like other countries, cannot ignore the fact that China has the largest Gross Domestic Product (GDP) of the Brics country. Combined, the BRICS bloc has a GDP of slightly more than the US.

According to reports, BRICS now accounts for 37.3 per cent of the world GDP, or more than half as much as the European Union at 14.5 per cent but the growing frustrations of members have been the dominance of the US dollar.

Joining BRICS will surely broaden markets and possibly help to reduce overreliance on the US dollar for trade settlements with local currencies being used instead of the arrangements.

As Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid rightly told Bernama, “it will effectively insulate the country and the region from the changes in the US monetary policy and currency volatility, potentially improving predictability in the currency market and lowering transaction cost for exporters and importers.”

The inclusion of new members has given BRICS a boost but like Asean, it also works on a consensus basis.

Admission of a new member is based on the consensus among member states. There is no automatic admission and Malaysia still must be on the waiting list.

Selection criteria for the New Partner Country Category include good representation and close relations with BRICS members, strong standing in regional and international politics, as well as economy and not imposing any unilateral sanctions on the Brics members.

It is also not on a first-come-first-serve basis with political decisions of BRICS leaders taking precedence.

But given Malaysia’s credentials and that of Anwar, certainly, we will be given strong consideration.

*The author of this article, Datuk Seri Wong Chun Wai, the chairman of Bernama, has been a journalist for over 40 years.*

Source: Bernama

Joining BRICS right thing to do for Malaysia

Malaysia is optimistic that its investment growth momentum will continue in 2024 despite external challenges, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Based on current trends, he anticipates the momentum to persist, supported by the double-digit increase in trade for May.

“So we are on the right track. We can see that our exports to Asean and the US rose by double digits in May. In terms of exports, 85% are from the manufacturing sector, especially the electronics and electrical sector,” he told reporters after the launch of the Centralised Sustainability Intelligence Solution at Bursa Malaysia here on Friday.

However, he said there are many challenging issues as well. “Issues such as ongoing trade tensions and geopolitical events, like the US-China trade war, pose challenges,” he added.

Malaysia recorded approved investments amounting to RM83.7 billion in the first three months of 2024, a 13% increase over the previous year’s corresponding period, creating 29,000 new jobs for Malaysians.

Tengku Zafrul said the main sectors contributing to the approved investments are: manufacturing sector 51.3% (RM43 billion), services sector 47% (RM39.3 billion) and the primary sector 1.7% (RM1.4 billion).

“In terms of breakdown, foreign investment is 56% and domestic investment is 44%,“ he added.

Austria topped the list of foreign investors by a very wide margin, with RM30.1 billion (64%) in approved investments, followed by Singapore (RM5.6 billion), the Netherlands (RM3.6 billion), China (RM3.4 billion) and the United States (RM632.8 million).

In terms of states, Kedah recorded the highest value of approved investments (RM31.3 billion), followed by Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion) and Johor (RM4.1 billion).

Target sectors stipulated by the National Investment Aspirations (NIA) contributed RM53.7 billion, accounting for 64.1% of the total approved investments across 252 projects, which are expected to create 17,056 new job opportunities.

The NIA is built on five robust pillars: enhancing economic complexity, creating high-value job opportunities, expanding domestic linkages, developing new and existing clusters, and promoting inclusivity.

Of the total approved investments, RM47.5 billion, or 56.8%, fall under the jurisdiction of Miti/Mida, covering 500 projects with 18,517 new job opportunities.

Source: The Sun

Malaysia expects Investment growth momentum to continue in 2024

Malaysia’s proactive measures and favourable investment policies have strategically positioned it well in the global foreign direct investment (FDI) landscape, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2024.

The report, released on June 20, highlighted a slew of strategic initiatives mulled by Malaysia, ranging from assistance in obtaining specific permits to comprehensive support for foreign investors.

Among others, Malaysia adopted a dedicated visa facilitation service for strategic investors identified by the Malaysian Investment Development Authority (Mida).

The nation is also implementing fast-track “green” lanes and simplified processes to ease investment, it said.

According to UNCTAD, Asean member countries have also developed investment portals and digital platforms for e-payment and acceptance of electronic documents and certificates, further enhancing the investment landscape.

“The Asean region has long been proactive in adopting strategies and policy measures to support investment. These efforts have intensified in recent years, accelerating during the pandemic, with an increase from six new investment facilitation measures in 2019 to 28 in 2020.

“These included the introduction of online facilities, e-application systems and streamlined administrative processes, reflecting a strong regional commitment to digitalising and simplifying investment procedures,” it said.

The report also shows that Malaysia’s attractiveness is further bolstered by its steady expansion in sustainable development initiatives.

The World Investment Report 2024 said the rapid expansion in the sustainable finance market has brought about the parallel growth of national sustainable finance measures in the Group of 20 (G20) and the largest developing economies, including Malaysia.

In 2023, these economies introduced a total of 94 sustainable finance policies and regulations. 

The report said that in total, FDI inflows to Southeast Asia remained stable, with an increase in merger and acquisition sales.

The number of greenfield announcements surged by 42%, adding US$62 billion more in value.

However, it said this gain was countered by a US$64 billion fall in the value of international project finance deals.

More broadly, while foreign investment flows to developing Asia receded in 2023, they remained high at US$621 billion.

The continent, led by East and Southeast Asia, continued to be the world’s largest recipient of FDI, accounting for nearly half of global inflows, UNCTAD said.

In Malaysia, notable projects included a US$10 billion expansion of Malaysian automaker Proton Holdings Bhd (KL:PROTON), which partly owned Geely.

In 2023, global FDI decreased by 2% to US$1.3 trillion.

Mida reported that in the first quarter of 2024, Malaysia attracted RM83.7 billion of approved investments, comprising RM43 billion (or 51.3%) in manufacturing, RM39.3 billion (47%) in services and RM1.4 billion (1.7%) in the primary sector.

This marked a 13% jump in overall approved investments from the same period last year.

Source: Bernama

Malaysia’s proactive measures enhance its position in global FDI landscape — UN report

Malaysia’s potential entry into BRICS (Brazil, Russia, India, China, and South Africa) will not affect the country’s electrical and electronics (E&E) sector amid the United States (US)-China tensions.

Science, Technology, and Innovation Minister Chang Lih Kang said that research and development in the field, particularly involving semiconductors, will benefit from the multilateral cooperation.

He said that should Malaysia become a BRICS member, it would still maintain neutrality between the US and China.

“BRICS encompasses nine countries, representing roughly 45 per cent of the world’s population. This is a very large market, and we hope to gain access to this market.

“Not only Malaysia, but more and more countries, including the United Arab Emirates (UAE) and Saudi Arabia, are looking at joining BRICS. So, saying we are shifting from neutrality by joining BRICS is not true.

“So, I don’t see joining BRICS as shifting from neutrality. We are still neutral but we aim to join BRICS for economic benefits,” he told reporters after attending the pre-launch of the Industry Technology Innovation Centre (ITIC) and the opening of the Semiconductor Research Consortium and MIMOS Academy at Kulim Hi-tech Park here today.

He said that research and development in the field would benefit not only from BRICS but also from other multilateral international alliances.

“There are other multilateral platforms we are part of, BRICS is just one of these platforms. We are also part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and others,” he added.

In an X post on April 22, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s geopolitical neutrality and strategic positioning are key selling points to multinational semiconductor companies looking for investment destinations.

Zafrul said that as the rivalry between the U.S. and China intensifies, many global companies are restructuring their supply chains to reduce geopolitical risks.

On Tuesday, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia will soon begin the process of joining the intergovernmental organisation BRICS.

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

Meanwhile, Chang expressed confidence that the establishment of ITIC, the Semiconductor Research Consortium, and MIMOS Academy are strategic and transformative steps for long-term industrial and talent development.

“This reflects the ministry’s commitment to creating a semiconductor technology ecosystem to enhance Malaysia’s position in the global E&E sector,” he added.

Source: NST

Joining BRICS will not affect research and development for E&E sector says Chang

Kuala Lumpur’s diverse, multilingual talent pool, robust regulatory frameworks, business-friendly environment, and strong commitment to sustainability are making it increasingly prominent as a highly appealing and accessible hub in Asia, according to InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli.

He said that the city is gaining recognition as a prime location for global service centers that empower multinational corporations (MNCs) to efficiently serve their customers across Asia in areas such as digital innovation and technology.

“We are already witnessing successes in this space. As these MNCs establish their presence in Greater Kuala Lumpur (KL), they bring not only significant investment but also invaluable expertise and cutting-edge technology, catalysing a positive ripple effect across the Malaysian economy,” he said.

Last year alone, InvestKL secured a record-breaking RM8.7 billion in foreign direct investment (FDI), resulting in the creation of 8,329 high-skilled jobs. 

This marks a significant increase from RM2.79 billion in FDI and 2,805 associated jobs created in 2022.

“But far from resting on our laurels, our team is striving to surpass these achievements by strategically targeting MNCs seeking to establish a robust foothold in Asia,” Azmi said.

He added that InvestKL’s efforts to attract leading global companies and foster a collaborative environment have solidified the Greater KL position as a thriving global services hub. 

He said this success translates to far-reaching economic benefits for Malaysia, including direct investment, high-value job creation, and the development of a highly skilled workforce. 

Furthermore, Azmi said the dynamic collaborations forged between foreign and local companies, supported by strong public and private sector partnerships, have created a vibrant ecosystem that benefits all stakeholders. 

He noted that the positive spillover effects from MNCs, such as technology transfer, knowledge sharing, and increased productivity, are key to driving Malaysia’s overall economic growth and development.

“We remain committed to nurturing these collaborative relationships, ensuring Greater KL thrives as a premier destination for global services, and contributing to Malaysia’s economic prosperity,” he said.

Malaysia continues to attract investments from world-renowned companies, drawn by its robust infrastructure, strategic location in Southeast Asia, competitive business environment, and skilled workforce. This is also underpinned by the government’s initiatives and policies aimed at fostering economic growth and innovation.

InvestKL’s success in attracting global giants such as Zimmer Biomet, a world leader in medical technology, and the London Stock Exchange Group (LSEG) exemplifies Greater KL’s growing reputation as a world-class business hub.

Azmi noted that LSEG’s flagship office in Greater KL also underscores its confidence in the region’s financial sector and commitment to nurturing local expertise. 

Beyond Zimmer Biomet and LSEG, other prominent MNCs with global service hubs in the Greater KL have actively partnered with local universities to provide hands-on learning opportunities for students. 

“These initiatives, facilitated by the InvestKL Talent Programme (ITP), are not just about aligning local talent with the needs of global companies but also about empowering the next generation of Malaysian professionals with the skills and knowledge to thrive in a globally competitive landscape,” Azmi said.

He said that the ESG & Sustainability ConneXion Centre (ESGS CXC), established by InvestKL in Greater Kuala Lumpur, is making significant strides in promoting sustainable business practices and encouraging the adoption of environment, social, and governance (ESG) principles.

The ESGS CXC serves as a hub for facilitating policy advocacy, capability building, and knowledge sharing among various stakeholders across the business ecosystem.

Azmi highlighted that the Greater KL Live Lab (GKL LL) continues to connect foreign MNCs with local SMEs, educational institutions, and research organisations to drive ESG and sustainability initiatives. 

“We have seen international companies such as DHL using Greater KL as a testbed for maritime deliveries using drones and Japan-based digital healthcare service provider Allm Inc. collaborating with local hospitals to conduct clinical trials. 

“Other companies proudly participating in the Greater KL Live Lab program include Behn Meyer AgriCare, uPledge, Quantum, and Malaysia’s own Carsome, to name a few,” he noted.

Source: NST

Greater KL gaining prominence as Asia hub, says InvestKL CEO

Japanese investors have been invited to explore potential stakes in Sabah’s renewable energy sector and semiconductor industry.

State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said Sabah could offer them a conducive environment.

“We have been working closely with the Japanese Ambassador to Malaysia, His Excellency Takahashi Katsuhiko, and Japanese trade associations, including Jactim and Jetro,” he said at the Sabah-Japan environmental, social and governance (ESG) forum here on Friday (June 21).

“Sabah’s proximity to Japan positions it as a pivotal player in the journey towards sustainable energy solutions development in the region,” he added.

He said Japan has been a crucial trading partner for the region, and its economic partnership with Malaysia had flourished since the 1980s under the Look East Policy.

“Japan also stands as Sabah’s fourth-largest trade partner, accounting for 7.9% of Sabah’s total trade,” he said, adding that the state’s exports to Japan amounted to RM2.936bil, representing 9.4% of its total exports.

These figures underscore the robust and vital economic relationship between Sabah and Japan, which continues to grow stronger, Phoong added.

He noted that the partnership and investments from Japan are critical as the global supply chain transitions towards energy sustainability and a low-carbon economy.

“Collaboration between Sabah and Japan will be key in leveraging Japanese expertise and technologies to drive innovation and sustainability in various sectors,” he said.

Source: The Star

Sabah has lots to offer Japanese investors in green energy and chipmaking, says minister

In December 2022, Tengku Datuk Seri Zafrul Abdul Aziz was appointed as the minister of international trade and industry under the administration of Datuk Seri Anwar Ibrahim, the third prime minister to name him in the cabinet line-up after Datuk Seri Ismail Sabri Yaakob and Tan Sri Muhyiddin Yassin. (The ministry has since been renamed the Ministry of Investment, Trade and Industry, or Miti.)

Zafrul replaced Datuk Seri Mohamed Azmin Ali, who served as senior minister of the economic cluster and as minister of international trade and industry from 2020 to 2022, before he was defeated in the 15th general election.

The former banker embarked on his ministerial journey on March 9, 2020, when he was appointed as finance minister in Muhyiddin’s cabinet, and was reappointed to the same post on Aug 27, 2021, under Ismail Sabri’s administration.

Prior to his government appointment, Zafrul was the group CEO and executive director of CIMB Group Holdings Bhd.

The following is an excerpt from The Edge’s exclusive interview with him.

The Edge: It’s been a year and a half since you became Miti minister. While Malaysia’s efforts to bring in foreign investors appear to be paying off, going by the slew of investment announcements involving big names and significant sums since the beginning of 2023, how difficult has it been for you to attract FDI (foreign direct investment)?

Tengku Datuk Seri Zafrul Abdul Aziz: It’s not easy. But in a way, I must say it’s easier than before, thanks to [the] supply chain realignment. The Russia-Ukraine war has increased the cost of doing business in Europe, US companies and European firms are looking at de-risking as they adopt the China-plus-one strategy. Even Taiwan companies are doing so due to geopolitical tension and natural disasters. So, geopolitics has really helped Asean. I can’t claim all the credit.

Most people whom we spoke to say the National Semiconductor Strategy (NSS) is a spot-on road map that provides a clear direction. How will Miti ensure that the NSS isn’t just another “feel-good” road map, but one that leads to tangible results and meaningful progress?

We have to build one step at a time and phase by phase. Advanced packaging is already quite complex. But we have the edge already because our outsourced semiconductor assembly and test (OSAT) sector is quite strong. So, our next step should be modernising OSAT and going into advanced packaging, which is a high-value activity.

The NSS highlights advanced packaging and integrated circuit (IC) design. Do we want to attract wafer fab investments?

We want; of course, we want. But we cannot afford it right now. I am aware that financially, we are not ready. But I think we shouldn’t give up. First, we need to show the spillover effect of building wafer fabs. Right now, we feel that we should move step by step, and we should prioritise IC design and advanced packaging.

Given that Science, Technology, Engineering and Mathematics (STEM) education has been perceived as too hard or too boring, while there is a common misperception that Technical and Vocational Education and Training (TVET) is “second class” and does not promise a good future, how do you think Malaysia can nurture 60,000 high-skilled local engineers under the NSS?

We have to be aspirational. We have to challenge them (other ministries), but at the same time, we have to give them strength. Yes, 60,000 is a stretch. It is a stretch. But now that I put out the numbers, suddenly they all come up with all sorts of ideas to achieve it. Now, the Ministry of Education has committed to 30,000. They said they can do it.

Beyond the semiconductor space, Malaysia has been attracting multinational corporations (MNCs) such as Amazon Web Services (AWS), Google and Microsoft to set up data centres and cloud infrastructure here. However, sceptics say this would consume a lot of energy and may not bring positive economic impact to our country. What’s your view on that?

Data centre, on its own, is like a highway. Yes, its direct employment is low, but there are some spillover effects of having data centres. So, we need to look at it as an enabler for FDI. Without data centres, many MNCs may not come here.

Apart from data centres, which other areas of infrastructure should we improve on?

If you look at Malaysia, about 80% of our exports is manufacturing. And 40%, which is half of that 80%, is electrical and electronics (E&E). The problem with us is that we export through Singapore a lot. That’s why the Penang International Airport (PIA) is so important, and we need to expand it. Actually, to be objective, we need a Kulim cargo airport. I am not talking about passenger airports. When FedEx was here, they complained to us that our PIA cannot accommodate their cargo planes, which are mostly Boeing 777 aircraft. All their clients in Penang and Kulim need the Triple Seven. Otherwise, they would be wasting their time going down to Singapore.

Do you see Malaysia as still pretty neutral in terms of our stance on geopolitics?

Business-wise, we have taken a very neutral stance. I mean, South China Sea, we have taken a firm stance — not open for negotiation, right? And then with the US, we have taken a strong stance that we remain neutral.

But business and politics are closely linked. Will Malaysia’s stance on supporting Gaza and Palestine affect our relationship with the US?

If that’s true, then why are Microsoft, Google and AWS coming here? So, it’s not true.

Certain quarters question the economic benefits of getting investments from China, as the Chinese firms seem to be exporting everything, including people, building materials, machinery and equipment, to Malaysia.

Yes, that was the problem. I think they have stopped the people’s part. In the East Coast Rail Link, they even brought their own chefs. If you look at all the American companies here, their CEOs are mostly Malaysian. Do you notice that? Whereas the Chinese and Japanese, perhaps it’s because of Asian culture, they still want their own people. The Western side is more open to local leadership.

So, what kind of Chinese investments do we get now?

Chemical and petrochemical. They’re working mostly with Petronas. And then the electrical appliances companies, they are building some of their parts here.

What is the status of the Automotive High-Technology Valley project in Tanjung Malim, Perak?

Last year, it was announced that Zhejiang Geely Holding Group Co Ltd would invest US$10 billion. They’ve started already and they’ve spent about a billion plus. They are waiting for land purchases to be completed. They’re negotiating with the state. It’s moving and it’s on track.

How do you balance out between giving MNCs incentives and not affecting Malaysia’s economic value?

That’s why we have to be firm. Sometimes, it’s painful, and we have to call their bluff. Sometimes we have to think, where would they go if they don’t come to Malaysia?

But are you not afraid that by doing this, it is actually reducing our competitiveness?

That’s why we have to choose the right sectors. Certain sectors need our help more. The biggest noises might come from small and medium enterprises (SMEs). Our SMEs are the most inefficient and the least productive in the region. Even Vietnam and Thailand have overtaken us in terms of productivity because of our lack of investment in automation and our easy access to cheap foreign labour.

But not anymore, right?

It’s still three million (of foreign labour). They need to toughen up.

What about SMEs’ access to capital?

Yes, it is an issue for them. That’s why in the end they borrow money from the banks. They mortgage their buildings and shophouses. Of course, the banks are also at fault. Sometimes, they want to lend on the back of assets, not on future cash flow. So, that also has to change.

The government is working on a scheme to give guarantees for banks to lend to SMEs. We are still finalising the amount. It could be 10% or 20%. So, let’s say it’s 20%. The first 20% of loss, the government would share with the bank.

The banks would still take 80% so that they would assess the risks. But if the government could absorb that 20%, we feel that at least there is an alignment and the banks’ risk appetite will be higher, knowing that for every RM1 they were to lose, 20 sen will be shared by the government.

For a long time, Malaysia has been striving to catch up. As the Miti minister, do you feel somehow unusual now that many Asian countries are envying Malaysia for attracting significant FDI from around the world?

The problem with capitalism is that the impact of FDI and economic growth does not filter down to the people. They just cannot see the benefits. The filtering is only to a certain group, so that gap is getting bigger. Therefore, the government has to intervene by policy to bring this growth to be more equitable, to be more inclusive. But everybody must also understand that when we talk about the higher cost of living, it is a global problem. How do you explain that? It’s very difficult.

Salaries do not go up, and our ringgit is weak.

In absolute terms, the weak currency benefits the country right now. Because we export more than we import. But the exporters represent only a minority of the population. Our palm oil producers are happy. Their cost is in ringgit, but they export in dollars. Semiconductors are the same. Our oil and gas industry is making record profit. But again, how many per cent of the economy do they represent? We, as a government, have to somehow distribute that back through subsidies and intervention. 

Source: The Edge Malaysia

Tengku Zafrul on raising the bar for Malaysian industries

The benefits of major foreign investments into the country should be reflected in programmes and initiatives implemented for the people, said Communications Minister Fahmi Fadzil.

He said the influx of investments also proves that Malaysia has a stable investment environment and is an attractive destination for foreign investors.

He said this also requires the participation of the people so that they benefit from initiatives introduced as a result of foreign investments, such as the MCMC-Microsoft AI Tech: Skills For AI-Enabled Economy programme.

“If we only talk about the large investment values (into the country) without reflecting on the benefits and advantages of this investment for the people, then the story (of the investment) is incomplete.

“With programmes like this (MCMC-Microsoft AI Tech), we can translate major announcements and (foreign) investment figures into tangible benefits for the people,“ he said in his speech at the launch of the MCMC-Microsoft AI Tech: Skills For AI-Enabled Economy programme here today.

MCMC-Microsoft AI TEACH is a capacity-building programme in Artificial Intelligence (AI) resulting from a collaboration between the Malaysian Communications and Multimedia Commission (MCMC) and Microsoft Malaysia.

On May 2, Prime Minister Datuk Seri Anwar Ibrahim announced that Microsoft intends to invest US$2.2 billion (RM10.5 billion) over the next four years in Malaysia.

Anwar said the investment will greatly support the government’s focus on developing AI capacity in the country.

Meanwhile, Fahmi said that as a start, the MCMC-Microsoft AI TEACH programme will provide AI skills training and certification to 1,600 participants from communities near the National Information Dissemination Centres (NADI), especially vulnerable groups.

He said the programme could also help increase the employability of participants through the MyFutureJobs job matching initiative under the Social Security Organisation.

“After this, participation will be expanded in all areas with NADI as the location for them to join the provided classes and modules … we want rural and suburban communities to also benefit,“ he said.

Besides providing good internet facilities, Fahmi said, the government also wants the public to utilise and apply AI technology ethically and not use it for criminal purposes such as image manipulation or deep fakes.

“For me, it’s important that people understand how to use AI ethically. We don’t want people to, for example, plagiarise, especially in their homework or coursework, but at the same time not to be fooled by the misuse of AI to generate, for example, deep fake content,” he said.

At the event, Fahmi also witnessed the signing of a Memorandum of Understanding (MoU) between MCMC and Microsoft Malaysia aimed at exploring the socio-economic benefits of AI, including efforts to prepare the future workforce with AI knowledge and digital skills as well as the adoption of Microsoft software.

Also present were Communications Ministry secretary-general Datuk Mohamad Fauzi Md Isa and MCMC chairman Tan Sri Mohamad Salim Fateh Din.

Source: Bernama

Benefits of foreign investments should be reflected through initiatives for people – Fahmi

The Ministry of Investment, Trade and Industry (MITI) has facilitated the exchange of 11 memorandums of understanding (MOU) between Malaysian and Chinese entities with a total potential investment of RM13.2 billion.

Minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry is pleased to see the government-to-government collaborative spirit “cascading” to the private sector of both countries through the MOUs for numerous high value sectors. “MITI looks forward to seeing these collaborations enhance our economy, including by increasing supply chain resilience, expanding trade in the services sector, and attracting high-quality investments, while also deepening human capital development and people-to-people ties,” he said in a statement today.

The MOU exchange took place in conjunction with the first official visit to Malaysia by China Premier Li Qiang.

The ministry said the MOUs “reflect the continued confidence of the Chinese business community in the strength and sustainability of 50 years of diplomatic relations between Malaysia and China while reaffirming Malaysia’s position as one of China’s key investment and trade partners in the Southeast Asian region.”

“The key MOUs involved several agencies under MITI, including the Malaysian Investment Development Authority (MIDA), the Malaysia External Trade Development Corporation (MATRADE) and the Export-Import Bank of Malaysia Berhad (EXIM Bank Malaysia),” it added.

The MOU between MIDA and China International Capital Corporation Ltd (CICC) aims to strengthen economic and industrial collaboration, focusing on enhancing investment opportunities in high-value sectors and exploring supply chain integration within key industries in Malaysia and China.

MATRADE entered into an MOU with Bank of China (Malaysia) Bhd to strengthen its alliances with international financial institutions as it looks to enhance market access as well as financing options for Malaysian exporters.

EXIM Bank Malaysia’s MoU with the Industrial and Commercial Bank of China (Malaysia) Bhd (ICBC Malaysia) aims to foster and enhance bilateral financial relations.

Other MOUs were between Malaysian and Chinese companies, for collaborations in high-value-added sectors, such as oil and gas, energy, education as well as technical and vocational education and training (TVET), agriculture, automotive and utility services.

Earlier today, after the China and Malaysia Business Community luncheon, Tengku Zafrul said MITI will collaborate closely with its Chinese counterparts to explore and identify potential new areas for industrial park development under the “Two Countries, Twin Parks” framework.

The Two Countries, Twin Parks is a flagship project of national-level investment collaboration and a key project that is part of the Belt and Road Initiative.

The China-Malaysia Qinzhou Industrial Park in Guangxi opened in 2012 and the Malaysia-China Kuantan Industrial Park opened a year later in Malaysia.

“Both countries have agreed that Malaysia and China should not just look at the two countries and twin parks but two countries with multiple parks,” the minister told reporters.

Source: Bernama

MITI facilitates RM13.2 bln in potential investments from China Premier’s visit

Malaysia is confident of securing RM13 billion in potential investments and exports at the World Expo 2025 in Osaka, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that Malaysia plans to leverage the sizeable audience of an expected 28.2 million visitors.

In 2021, Malaysia achieved RM8.3 billion in trade and investment at the Dubai Expo, attracting 5,000 business leaders to its pavilion, which featured 400 Malaysian companies, he said.

“Miti is proud and privileged to spearhead Malaysia’s participation at the expo.

“This provides a unique opportunity for Malaysia to showcase our unwavering commitment to sustainable development, industrial reforms, and inclusive economic growth while fostering a prosperous society for all,“ “ he said during the launch of Malaysia’s participation in the expo, here today.

Malaysia has chosen the theme “Weaving a Future in Harmony” to reflect the nation’s commitment to collaboration, unity in diversity and community interconnectedness, Tengku Zafrul said.

He added that Malaysia’s pavilion will highlight advancements in sustainable agriculture, energy transition, smart living, advanced manufacturing, environmental management, and green tourism.

“We want to show how Malaysia addresses global challenges innovatively to contribute to the planet’s well-being and promote a sustainable, harmonious and equitable future for all,“ he said.

During the expo from April 13 to Oct 13, 2025, a series of on-site themed weeks, exhibitions and dialogues will be organised at the Malaysian pavilion to serve as catalysts for positive change.

“We seek to forge partnerships towards a more sustainable and equitable world, supported by key policies like the New Industrial Master Plan 2030, the National Energy Transition Roadmap and the National ESG Industry Framework,“ he added.

A total of 161 countries and nine international organisations have confirmed their participation to date. 

Source: Bernama

Malaysia eyes RM13b potential investments, exports at World Expo 2025 in Osaka

Three Malaysia-China economic collaborations will bolster supply chain resilience, boost trade expansion in the services sector, and attract high-quality investments, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said the agreements will also mainstream digitalisation, sustainability, and innovation while deepening human capital development and interpersonal ties.

The collaborations are the Five-Year Programme for Economic and Trade Cooperation, and two memoranda of understanding — Strengthening Investment Cooperation in Digital Economy, and Green Development.

“Malaysia is dedicated to solidifying our robust economic ties with China.

“These agreements pave the way for a new chapter of economic collaboration, fostering more shared prosperity for both nations,” the minister said in his welcome remark at a luncheon with the Chinese and Malaysian business community today.

Tengku Zafrul shared that Malaysia and China are deliberating an exciting new cooperation under the “Two Countries, Twin Parks” framework.

He said both countries are building on successful collaborations in advanced manufacturing and electric vehicles, which will unlock new opportunities.

“I look forward to jointly announcing the conclusion of discussions on these new cooperation arrangements in the near future,” he said.

Tengku Zafrul noted that the Malaysia-China relationship, with economic cooperation at its core, has left an indelible mark over the past half-century.

“We have forged links in numerous areas, notably, in railway infrastructure and technology, automotive sector, manufacturing, fintech and trading, among others,” he said.

Source: Bernama

Malaysia-China partnership to bolster supply chains, services trade — Tengku Zafrul

The East Coast Economic Region Development Council (ECERDC) today said it recently engaged with potential investors from China’s automotive industry at a three-day business trip in Pahang.

In a statement, ECERDC said it led a delegation of potential investors from the Dynaso, Chongqing Administrative Bureau and Taicang Roundtable Members from June 11-13, 2024 to visit its industrial parks and investee companies.

They  visited Elektrisola’s factory, Malaysia-China Kuantan Industrial Park (MCKIP), Camel Power (M) Sdn Bhd, Kuantan Port, Pahang Automotive Park (PAP) and Pahang Technology Park (PTP).

The group also toured DRB-Hicom University and Gambang Halal Park.

Source: NST

ECERDC says potential investors from China’s auto industry visited industrial parks in Pahang

At least five Bursa Malaysia-listed companies stand to benefit from the official visit by China’s Premier Li Qiang to Malaysia, which is expected to bring more foreign direct investments (FDI) from China into Malaysia, further relaxations in visa requirements and new trade agreements inked, according to Maybank Investment Bank Bhd (Maybank IB).

The five potential beneficiaries are MyEG Services Bhd (KL:MYEG), EP Manufacturing Bhd (KL:EPMB), Eco World Development Group Bhd (KL:ECOWLD), Dialog Group Bhd (KL:DIALOG), and AirAsia X Bhd (KL:AAX).

Maybank IB observed that in the past, Chinese investments into Malaysia were mostly established in and around the time Chinese President Xi Jinping visited Malaysia in October 2013 and when former Chinese Premier Li Keqiang visited Malaysia in November 2015.

When Xi Jinping visited Malaysia in October 2013, Maybank IB noted that the president touted, among other things, a proposed High Speed Rail (HSR) connecting Kuala Lumpur and Singapore, the Malaysia-China Kuantan Industrial Park, and the development of northern Malaysia. This was followed by maiden joint military exercises by both countries in September 2015.

Meanwhile, following Li Keqiang’s visit in November 2015, FDIs from China to Malaysia surged in 2016 and 2017, as Malaysia granted visa-free access to Chinese visitors from March 2016 onwards, and China Communications Construction Company (CCCC) commenced construction of the East Coast Rail Link (ECRL) in August 2017, Maybank IB noted.

With Li Qiang commencing his visit to Malaysia on Tuesday, Maybank IB posits that MYEG’s blockchain-based ZTrade platform could gain substantial traction following the signing of official documentation between Malaysia’s Ministry of Finance and the General Administration of Customs China on Wednesday.

ZTrade enables the digitalisation of trade clearance and tariff computation to cut processing time by up to 50%.

“We have yet to impute for potential ZTrade earnings accretion into our forecasts for MYEG, as cross-border trade volume is harder to ascertain (versus publicly available trade value statistics). Similar to MYEG’s Zetrix token sales business, we expect ZTrade’s net operating margins to be in the 90-95% range,” Maybank IB said in a note on Wednesday.

Meanwhile, EP Manufacturing, which recently expanded upstream, is collaborating with Chinese original equipment manufacturers (OEM) Great Wall Motor and Beijing Automotive Group Co to serve as their contract assembler in Malaysia for right-hand drive vehicles, for local and export markets.

According to Maybank IB, operations at EP Manufacturing’s assembly plant are set to begin in the second half of 2024, with an initial capacity of 6,000 units per annum, projected to reach 30,000 units per annum as EP Manufacturing secures more OEM assembly contracts.

 “According to the company, this venture is expected to boost EP Manufacturing’s margins, with contract assembly offering higher margins compared to its traditional automotive parts manufacturing (teens versus low single digits in percentage terms). The vertical integration is anticipated to create synergies, enabling EP Manufacturing to supply parts to the vehicles it assembles,” Maybank IB wrote.

On the other hand, the investment bank sees Eco World’s exposure in the industrial property segment benefitting from China’s establishment of more factories and industrial facilities. 

Specifically for Dialog, Maybank IB pointed to Rongsheng Petrochemical’s commitment to an estimated total investment of up to RM80 billion for a refining facility in Pengerang, Johor.

Maybank IB said that this will benefit Dialog due to a need for local EPCC expertise and storage of crude/refined/distilled products, as the company would be able to provide long-term tank terminal services to Rongsheng, should the investment come to pass.

“Based on our calculation, every RM6.5 billion tank terminal investment (long-term, independent, average utilisation rate assumptions of 87.5%, Ebitda margins of 80%) by Rongsheng will lift Dialog’s equity value by RM4.2 billion, which will raise our target price by 74 sen per share from RM3.13 currently,” it said.

Lastly, Maybank IB said AAX, which has the largest exposure to Chinese destinations among Malaysian airlines, may benefit from the potential permanent exemption of visa requirements for Chinese visitors.  

Malaysia exempted visa requirements for Chinese visitors on Dec 1, 2023, which will run until Dec 31, 2025. Neighbouring Thailand, meanwhile, permanently exempted visa requirements for Chinese visitors on March 1, 2024. “Chinese visitors are known to respond favourably to visa exemptions.” Maybank IB noted.  

“That said, it could charge higher fares to and from China. We estimate that every RM5 increase in average fare will accrete RM16 million-RM17 million per annum to core net profit and 26 sen to our target price,” it added.

Li Qiang’s visit to Malaysia, his first trip to the country since assuming office in March last year, coincides with the 50th anniversary of the establishment of diplomatic relations between Malaysia and China, following the signing of the Joint Communiqué between the second prime minister, Tun Abdul Razak Hussein, and then Chinese premier Chou En Lai on May 31, 1974.

Meanwhile, Bernama reported that a total of 14 Memoranda of Understanding and Agreement (MOUs/MOAs), protocol and joint statement involving nine ministries have been exchanged between Malaysia and China on Wednesday, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and China Premier Li Qiang.

Nine ministries involved are the Ministry of Investment, Trade and Industry (MITI); Finance; Agriculture and Food Security; Housing and Local Government; Home Affairs; Science, Technology and Innovation (MOSTI); Higher Education (MOHE); Tourism, Arts and Culture; and Communications.

On behalf of MITI, two MOUs were exchanged, on strengthening investment cooperation in the digital economy and promoting investment cooperation in green development.

Besides the MOUs, Malaysia and China also inked the second cycle of the Malaysia-China five-year programme for economic and trade cooperation to deepen further linkages between industries in priority sectors like high-level manufacturing and digital economy.

The programme would also deepen cooperation in robotics, entrepreneur development, innovation and startup, as well as research and development in agriculture and primary industries.

For the Communications Ministry, two MOUs were exchanged. The first is with the China Media Group on cooperation in the field of media, while the second MOU is to strengthen cooperation in the postal field between the Malaysian Communications and Multimedia Commission and the China State Postal Bureau.

Under the Finance Ministry, the document exchanged was a joint statement on national single window for cross border trade initiative, while under the MOHE, the MOU on cooperation in the field of higher education while under MOSTI, on science and technology people-to-people exchange programme.

As for the Housing and Local Government Ministry, the MOU exchanged was for the fields of housing and urban development.

Earlier, both leaders had a closed door meeting to discuss bilateral relations between Malaysia and China and exchanged views on regional and international issues of mutual interests.

Next, Anwar will be hosting a luncheon for Li and his Chinese delegation before departing to Shangri-la Hotel, Kuala Lumpur.

Li will also have an audience with His Majesty Sultan Ibrahim, King of Malaysia on Wednesday.

Both Anwar and Li will also attend the East Coast Rail Link (ECRL) groundbreaking ceremony in Gombak and conclude their schedule on Wednesday with a dinner celebration for the 50th anniversary of diplomatic relations.

China has been Malaysia’s largest trading partner for 15 consecutive years since 2009. Last year, total trade with China was valued at RM450.84 billion (US$98.8 billion), contributing to 17.1% of Malaysia’s global trade.

Source: The Edge Malaysia

MyEG, EP Manufacturing, Eco World, Dialog, AAX seen reaping benefits of China premier’s visit to Malaysia

The construction work for the 665-kilometre-long East Coast Rail Link (ECRL) project has been running smoothly and reached 67% completion despite several hiccups and challenges throughout its development and implementation phases.

Aimed at improving connectivity and stimulating economic development, the project traversing Kelantan, Terengganu, Pahang and Selangor, is set to be an economic game changer especially in boosting Malaysia’s transportation network. It is expected to be completed by the end of 2026.

The massive infrastructure project, which connects the east and west coasts of the country with 20 stations, is also a testament to the strong bilateral relationship between Kuala Lumpur and Beijing.

The project which cost RM50.2 billion notched another milestone with the groundbreaking ceremony for the ECRL Gombak Integrated Transport Terminal (ITT) Station officiated by Prime Minister Datuk Seri Anwar Ibrahim and the visiting China’s Premier Li Qiang, today.

Speaking to Bernama, Malaysia Rail Link Sdn Bhd Chairman Tan Sri Mohd Zuki Ali said the presence of Li Qiang at the groundbreaking ceremony reflects a strong bilateral relationship between two longstanding partners which ensures the successful implementation of the project under Beijing-led Belt and Road Initiative (BRI).

It is the first groundbreaking ceremony held in Selangor and also marks the beginning of construction for the first station for the ECRL line in the state, which will have a total of five stations, he said.

“This station will serve as the main gateway to the capital city, facilitating ECRL users’ travel from Klang Valley to the East Coast states or vice versa. ECRL will also be connected to the Kelana Jaya LRT Line at Gombak Integrated Terminal, providing a better network and greater passenger capacity.

“The ECRL line, from Kota Bharu in Kelantan to Gombak in Selangor is expected to be completed by the end of 2026 and operational by January 2027. Travelling time between Kota Bharu to the Klang Valley is anticipated to be around four hours compared to seven hours or more by road during festive seasons. Overall, the progress of the ECRL project is at 67%,” he said.

Speaking to the media in April, Transport Minister Anthony Loke said the ECRL network in Selangor which spans nearly 120 kilometres will have five stations namely Gombak, Kapar and Jalan Kastam Integrated Terminals for passengers only while the Bandar Serendah and Puncak Alam stations are connecting stations for passengers and cargo.

The construction phase for the ECRL project began with the groundbreaking ceremony in Kuantan, Pahang in August 2017, but the work was suspended in 2018 for financial reasons before work for the project resumed again in July 2019 at a lower cost.

The ECRL connects state capitals, major urban centres, industrial hubs, ports, airports, and tourism zones and interchanges with existing railway lines in Peninsular Malaysia.

The project is owned by MRL, a wholly owned subsidiary of the Minister of Finance (Incorporated), while China Communications Construction Company (CCCC) serves as the main contractor for the project.

Malaysia Institute of Transport (MITRANS) Director Prof Madya Ts Dr Wan Mazlina Wan Mohamed told Bernama that ECRL is a crucial national infrastructure project to boost regional development, connectivity and improving public transit across its electrified railway network, connecting urban and rural areas.

It also reduces environmental pollution by transitioning from the use of fuel-based vehicles to an electrified rail network and provides a safe alternative mode of public transport for long-distance journeys, said Wan Mazlina.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Tengku Zafrul Abdul Aziz was quoted by the media in March this year as saying that ECRL serves as a catalyst for socioeconomic growth and is expected to increase the country’s Gross Domestic Product by 3.78% by 2047.

“The ECRL is poised to be a game changer for Malaysia, linking us more closely to the Pan-Asia railway network and enhancing our connectivity with ASEAN and Eurasia regions,” said Tengku Zafrul in his keynote address at the Seminar on East Coast Rail Link – Economic Accelerator Project (ECRL–EAP) Business and Investment Opportunities.

Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said that, once completed, the ECRL project will benefit the real estate sector, among others, due to the effects of urbanisation and the increase in property prices.

Malaysian Investment Development Authority (MIDA) in April said the ECRL-EAP is anticipated to generate RM1.4 trillion for Malaysia’s economy by 2047 with a focus on industrial parks, logistic hubs and transit-oriented developments.

Given that the project is the largest ever to be undertaken along the East Coast alignment, it would be ideal for companies to seize opportunities that arise, with areas that could be further explored including renewable energy; sustainability products and services; education and training centres, said MIDA.

Source: Bernama

ECRL, a game changer for Malaysia, reaches 67% completion

Malaysia and China have agreed to implement another cycle of a five-year programme for economic and trade cooperation, which was first established in 2013, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

The programme, which will run from 2024 to 2028, aims to deepen cooperation in existing areas such as trade and investment, manufacturing, agricultural infrastructure, the digital economy, logistics, and the development of small and medium enterprises.

It also seeks to promote collaboration in new areas, including innovation, start-ups, and financial services.

To strengthen ties between the two countries, Tengku Zafrul and China’s Minister of Commerce Wang Wentao signed and exchanged three key documents today, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Chinese Premier Li Qiang.

The first document signed relates to the initial Malaysia-China Five-Year Programme for Economic and Trade Cooperation in 2013, highlighting that the programme had significantly boosted bilateral trade and deepened economic cooperation.

This includes making China Malaysia’s top trading partner since 2009 and one of Malaysia’s leading sources of foreign direct investments.

The Five-Year Programme for Economic and Trade Cooperation (2024-2028) encourages participation from businesses in other countries, as well as from international multilateral organisations and financial institutions.

Additionally, two new Memoranda of Understanding (MoU) were signed to increase high-quality investment in the digital and green economies.

Under the MoU on digital economy, both countries aim to explore cooperation in digital infrastructure, including communication networks, smart infrastructure, and smart cities, enabled by technologies such as artificial intelligence and 5G connectivity in sectors like manufacturing, transportation, business, finance, education, and healthcare.

Meanwhile, the MoU on green development seeks to explore cooperation in clean energy, new energy vehicles, green finance, sustainable infrastructure construction and green technology.

This cooperation includes research and development and the establishment of scientific and technological innovation platforms to accelerate both countries’ green transformation.

“Malaysia and China are longstanding partners, bound by a rich shared history of cooperation that has successfully translated into strong trade and investment ties.

“The signing of the three documents on economy and trade, digital economy and green economy underscore our mutual commitment to establish stable, reliable and resilient partnerships for our businesses and economy to grow,” said Tengku Zafrul.

He added that the Investment, Trade and Industry Ministry (MITI) would work closely with China’s Ministry of Commerce and its stakeholders to fully realise the outcomes of these cooperation arrangements.

MITI also welcomes the Malaysia-China cooperation on establishing a single window system to facilitate cross-border trade by streamlining trade regulatory processes and simplifying documentation.

This system will enable the seamless digital exchange of trade-related information between customs authorities in both countries.

Such digital exchange would be enabled using leading-edge technologies, including artificial intelligence and blockchain to ensure real-time, seamless and accurate exchange of data, while also expanding the spectrum of trade facilitation services to importers and exporters.

“The single window trade initiative between Malaysia and China is a strategic step towards enhancing Malaysia’s trade facilitation capabilities and is expected to significantly expedite and streamline the movement of goods while reducing the administrative burden for businesses.

“This will not only support bilateral trade growth, but also nurture economic resilience between Malaysia and China,” said Tengku Zafrul.

He added that MITI is committed to working closely with the Ministry of Finance and China’s General Administration of Customs to ensure the successful implementation of this single window interoperability to foster a more efficient, transparent, secure and resilient trade environment.

Source: Bernama

Malaysia-China to continue boosting economic, trade cooperation – MITI

China will work with Malaysia to increase synergy of development strategies, fully leverage complementary strengths, and promote solid progress in major projects like the East Coast Rail Link and Two Countries, Twin Parks, said Chinese Premier Li Qiang on Wednesday.

Li said China would also expand trade and investment with Malaysia, broaden cooperation in areas such as logistics, new energy, artificial intelligence, digital economy and railway equipment, as well as step up cooperation on poverty reduction, to better achieve mutual benefits.

Li arrived in Malaysia for an official three-day visit on Tuesday, the third and last leg of his eight-day tour that has taken him to New Zealand and Australia.

“The two countries also need to deepen tourism, education, youth, sub-national, people-to-people and cultural exchanges, and further facilitate cross-border travel between the two sides,“ said Li in a statement.

The statement was released by China’s Ministry of Foreign Affairs.

It said China is also ready to enhance multilateral coordination with Malaysia to jointly carry forward the Five Principles of Peaceful Coexistence and the Asian values of peace, cooperation, inclusiveness and integration; uphold ASEAN centrality in regional cooperation, and advance high-quality implementation of the Regional Comprehensive Economic Partnership (RCEP).

China is also committed to conclude negotiations for Version 3.0 of the China-Asean Free Trade Agreement (CAFTA) as soon as possible to make more positive contributions to peace, stability, prosperity and development in the region and the wider world, it added.

Source: Bernama

China to work with Malaysia to boost synergy of development strategies: Premier Li Qiang

A total of 14 memoranda of understandings, agreements (MoUs/MoAs), protocol and joint statement involving nine ministries have been exchanged between Malaysia and China today, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and China Premier Li Qiang.

The documents were exchanged during Li’s official visit to Malaysia, which also marked his first visit to the country as premier, in conjunction with the 50th anniversary of diplomatic relations between Malaysia and China. He is here for a three-day official visit beginning Tuesday.

Nine ministries involved are the Ministry of Investment, Trade and Industry (Miti); Finance; Agriculture and Food Security; Housing and Local Government; Home Affairs; Science, Technology and Innovation (Mosti); Higher Education (MOHE); Tourism, Arts and Culture; and Communications.

On behalf of Miti, two MoUs were exchanged, on strengthening investment cooperation in the digital economy and promoting investment cooperation in green development.

Besides the MoUs, Malaysia and China also inked the second cycle of the Malaysia-China five-year programme for economic and trade cooperation to deepen further linkages between industries in priority sectors like high-level manufacturing and digital economy.

The programme would also deepen cooperation in robotics, entrepreneur development, innovation and startup, as well as research and development in agriculture and primary industries.

For the Communications Ministry, two MoUs were exchanged. The first is with the China Media Group on cooperation in the field of media, while the second MoU is to strengthen cooperation in the postal field between the Malaysian Communications and Multimedia Commission and the China State Postal Bureau.

Under the Finance Ministry, the document exchanged was a joint statement on national single window for cross border trade initiative, while under the MOHE, the MoU on cooperation in the field of higher education while under Mosti, on science and technology people-to-people exchange programme.

As for the Housing and Local Government Ministry, the MoU exchanged was for the fields of housing and urban development.

Earlier, both leaders had a closed door meeting to discuss bilateral relations between Malaysia and China and exchanged views on regional and international issues of mutual interests.

Next, Anwar will be hosting a luncheon for Li and his Chinese delegation before departing to Shangri-la Hotel, Kuala Lumpur.

Li will also have an audience with His Majesty Sultan Ibrahim, King of Malaysia today.

Both Anwar and Li would also attend the East Coast Rail Link (ECRL) groundbreaking ceremony in Gombak and conclude their schedule today with a dinner celebration for the 50th anniversary of diplomatic relations.

China has been Malaysia’s largest trading partner for 15 consecutive years since 2009. Last year, total trade with China was valued at RM450.84 billion (US$98.80 billion), contributing to 17.1 per cent of Malaysia’s global trade.

To recap, the diplomatic relations between the two nations was established by the Joint Communiqué signed by Malaysian Prime Minister Tun Abdul Razak and Chinese Premier Chou En Lai on May 31, 1974.

Source: Bernama

14 MoUs/MoAs exchanged between Malaysia and China

China said it was willing to study a plan to connect Malaysia’s US$10-billion (RM47-billion) East Coast Rail Link (ECRL) to other China-backed railway projects in Laos and Thailand, potentially expanding Beijing’s Belt and Road initiative across Southeast Asia.

Chinese Premier Li Qiang, who is on a three-day visit to Malaysia, said on Wednesday the proposal would make the central line of a proposed Pan-Asia Railway, running from Kunming in China to Singapore, a reality.

“This will better promote the construction of new international land and sea trade corridors, enhance regional connectivity, and deepen the building of the Asean community,” Li said.

Li was speaking during a ground-breaking ceremony at a construction site for the ECRL — a 665km railway that will link Peninsular Malaysia’s east and west coasts by the end of 2026. Malaysia’s government said in March it would consider extending the China-backed project to its border with Thailand.

Li is on the third leg of a trip that has included New Zealand and Australia, as China looks to expand influence and investments in the Asia-Pacific region amid an ongoing rivalry with the US.

He met Malaysian Prime Minister Datuk Seri Anwar Ibrahim in the administrative capital of Putrajaya, following his arrival in Kuala Lumpur on Tuesday for a visit to mark 50 years of diplomatic ties between the two countries.

After Wednesday’s closed-door meeting, Li and Anwar witnessed the signing of more than a dozen pacts, including renewing a five-year programme to collaborate in areas such as trade and investment, agriculture, manufacturing, infrastructure and financial services, a statement after the meeting showed.

The programme, which will expire in 2028, was first introduced in 2013.

Fresh durian imports

Prime Minister Datuk Seri Anwar Ibrahim and Chinese Premier Li Qiang having durians on Wednesday. (Photo credit: Anwar’s Facebook page)

China also agreed to allow imports of fresh durian from Malaysia after it meets sanitary requirements, the statement added.

Malaysia, one of the world’s biggest producers of the spiky, smelly fruit, was previously allowed to ship only the whole frozen fruit and its products to China, with exports valued at RM1.19 billion in 2023.

The two countries also vowed to review visa-free travel arrangements set to expire in coming months.

China has been Malaysia’s largest trading partner since 2009, and the foreign ministry said total trade was valued at US$98.9 billion in 2023.

Anwar has pledged to remain neutral on China’s geopolitical rivalry with the US. Malaysia has announced large investments by companies from both countries this year, including from China’s ByteDance and US tech giants Google and Microsoft.

Anwar has said Malaysia considered China an important trading ally and accusedsome Western powers of “China-phobia”, amid ongoingclashes between neighbouring the Philippines and China in the disputed South China Sea.

China claims almost the entire South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

Anwar and Li on Wednesday agreed that China and relevant countries from the 10-member Association of Southeast Asian Nations (Asean) should independently handle the South China Sea issue, according to a report by Chinese news agency Xinhua.

The two leaders also pledged to work towards an early conclusion of a free trade agreement between China and Asean, Xinhua reported.

Source: The Edge Malaysia

China eyes plan to connect Southeast Asian rail links, including ECRL

Joining intergovernmental organisation BRICS (Brazil, Russia, India, China and South Africa) can attract more foreign investments to Malaysia amid the intensifying economic race among global superpowers, say analysts.

Experts also said that by being part of BRICS, Malaysia could make its voice louder at the global stage.

Principal adviser for the Pacific Research Centre of Malaysia Dr Oh Ei Sun said trade and investments are urgently needed by Malaysia to boost its economy and it is only natural to join BRICS for that purpose.

“The US and other Western powers are always welcome to double their investments and trade volumes with Malaysia in order to achieve their desired goal of prying Malaysia away from China,” said Dr Oh.

Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said when BRICS was first established in 2006, it was to counter and balance decisions made by the International Monetary Fund, World Bank and the Group of 7 (G7).

“These three bodies are basically controlled by developed nations from mostly the northern hemisphere and the West. Therefore, Malaysia has no say in decisions made by these organisations.

“It is not that we are siding with China or Russia, but we need a platform where we can voice our opinions,” said Dr Azmi.

Malaysian Institute of Economic Research head of research Dr Shankaran Nambiar said joining BRICS augurs well for Malaysia in the long run because the new economic narrative for the next generation will be set by this intergovernmental organisation.

“As the PM mentioned – to have a global economy with a greater diffusion of power,” said Shankaran.

Institute of Strategic and International Studies (Isis) analyst Yanitha Meena Louis said the participation in BRICS is a good sign of how Malaysia views itself in the emerging regional order, as it shows the ability to balance relations with multiple regional stakeholders and partners.

“Malaysia joining BRICS sends a key message that Putrajaya is ready to tackle the challenges of the day head on, on its own terms,” added Yanitha.

Asian Financial Cooperation Association Think Tankers fellow Mohd Sedek Jantan said BRICS enables its member countries to align their positions on specific topics such as economic and climate policies, as well as infrastructure development in accordance with the Belt and Road Initiative model.

Economist Prof Geoffrey Williams said BRICS offers a wide portfolio for trade and investment, as well as access to conventional and non-conventional trading blocks, which is crucial to Malaysia.

Williams acknowledged the shift in economic balance of power following Malaysia’s membership into BRICS, but said Putrajaya must respond positively.“The recent foreign direct investment deals are with independent minded American companies and not with the US government so this is what matters,” he said.

Chief economist at Bank Muamalat Malaysia Bhd Dr Mohd Afzanizam Abdul Rashid said BRICS would offer further diversification for Malaysia in respect to trade, investment as well as access to broader markets.

He said joining BRICS would also help to reduce over-concentration on the usage of the US dollar in trade settlement and effectively insulate the country and the region from the changes in the US monetary policy and currency volatility.

“The government would need to perform a cost and benefit analysis as the prevailing condition is quite fluid, especially in areas relating to geopolitics among the bigger nations.”

As such, he said the risks of economic sanction is something that Malaysia needs to be aware of.

Foreign Minister Datuk Seri Mohamad Hasan said Malaysia is currently analysing the feasibility of becoming a BRICS member.

Mohamad told reporters in Seremban that joining BRICS would strengthen Malaysia’s voice on various international issues.

Source: The Star

Analysts: BRICS could increase FDIs, strengthen M’sia’s global voice