Malaysia is open to joining the intergovernmental organisation comprising Brazil, Russia, India, China and South Africa (Brics) because it can bring various economic benefits to the country, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said the Brics organisation is also seen to be developing smoothly for now and some countries such as the United Arab Emirates (UAE) and Egypt have also joined the organisation.

“We are waiting to start further discussions on Brics as mentioned by Prime Minister Datuk Seri Anwar Ibrahim,” he said after officiating at the launch of the Chery Malaysia assembly plant here today.

Anwar said yesterday that Malaysia would start formal procedures to join the Brics economic bloc soon.

Brics was established in 2009 as a cooperation platform for emerging economies including Brazil, Russia, India and China, while South Africa joined the group in 2010.

Brics now accounts for a quarter of the global economy, including a fifth of global trade with a population of around 40 per cent of the world’s population.

Source: Bernama

Tengku Zafrul says Malaysia is open to joining Brics

Malaysia’s recent influx of substantial foreign direct investment (FDI) indicates several positive trends and potential developments for the country, according to Previndran Singhe, the chief executive officer and founder of Zerin Properties. 

High-profile investments, such as Apple’s new store and contributions from Microsoft and Google, can elevate Malaysia’s status as an attractive destination for FDI, he noted.

These developments are expected to enhance Malaysia’s international standing, showcasing a dynamic and resilient economy with a bright future fueled by technological advancements, diversified growth, and improved global connectivity, he told Business Times. 

“With all the investments coming in, Malaysia is gaining enhanced global visibility and building investor confidence. The influx of blue-chip companies signals a stable and promising business environment, potentially attracting other savvy investors,” he said.

Malaysia has experienced a notable wave of investment from major foreign companies and tech giants throughout this year.

Prominent entities such as Google, Apple, Microsoft, ByteDance, and BlackBerry are among those investing. These investments highlight Malaysia’s appeal as a key hub for global business and technology ventures.

Google plans to invest US$2 billion (RM9.4 billion) in establishing its first data centre and Google Cloud region in Malaysia.  

Ruth Porat, president and chief investment officer, and chief financial officer of Alphabet and Google, said in a statement that Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia — a place Google has been proud to call home for 13 years. 

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.  

Apple, meanwhile, opened its inaugural retail store, The Exchange TRX Mall, in Kuala Lumpur on June 22, marking a substantial increase in its physical retail footprint across Southeast Asia. 

BlackBerry has also opened its first-ever Asia Pacific Cybersecurity Centre of Excellence in Cyberjaya, focusing on cybersecurity.  

Microsoft chairman and chief executive officer Satya Nadella had also unveiled a significant investment of US$22 billion (RM90.2 billion) to advance new cloud and artificial intelligence (AI) infrastructure in Malaysia during the Microsoft Build AI Day held in Kuala Lumpur.  

Concurrently, Microsoft is in the process of constructing a substantial data centre in Cyberjaya. 

ByteDance, the parent company of TikTok, based in China, plans to invest US$2.13 billion (RM10 billion) to establish an AI hub in Malaysia.  

In addition to this initiative, ByteDance intends to expand its data centre facilities in Malaysia’s Johor state with an additional investment of RM1.5 billion. 

Previndran said that major investments across various industries suggest robust economic prospects and can significantly boost Malaysia’s gross domestic product (GDP). 

He also highlighted that investments in sectors like technology, AI, cybersecurity, distribution, and sustainable energy are diversifying Malaysia’s economic base, reducing its reliance on traditional sectors such as manufacturing and oil.

Additionally, these new investments are expected to create more jobs for Malaysians. 

For instance, projects by Apple and Microsoft in AI will generate numerous employment opportunities, positively impacting local job markets. 

Furthermore, skill enhancement initiatives by companies like Bytedance, which focus on AI hubs, can elevate local expertise in high-tech industries, promoting skill development and enhancing the workforce’s global competitiveness.

Regarding infrastructure and technological advancement, he said that investments in digital centres and cloud infrastructures by Google, Microsoft, and others will modernise Malaysia’s infrastructure, increasing its global competitiveness. 

Collaborations with global tech giants can also spur local innovation, positioning Malaysia as a hub for tech development in Southeast Asia, he said.

Sr Tan Wee Tiam, a research head, said that all these investments, whether realised, in the pipeline, or in the planning stage, are beneficial for Malaysia.

He explained that the surge in investments can be attributed to several factors.

“Firstly, Malaysia has traditionally been strong in the E&E sector but has stagnated at the low to mid-end of the production and supply chain, partly due to China attracting the bulk of FDI.

“The trade war has led to friend-shoring and de-globalisation, prompting many companies to adopt the “China + 1” strategy.

“Further, Malaysia’s strong infrastructure, reliable power and water supply, skilled workforce, widespread use of English, and robust legal system make it an attractive destination for these corporations,” he said.

On the significant influx of data centres coming to Malaysia, especially in Johor, Tan said that this trend may be due to Singapore’s 2019 moratorium on data centres and the stringent guidelines implemented when the ban was lifted in 2022.

Johor’s proximity to Singapore, lower power and water tariffs, abundant land, and the familiarity of corporate senior management with the area have expedited these decisions, he said.

“We can expect more investments to flow into Malaysia, particularly Johor, due to the foresight of both the Malaysian and Singaporean governments in collaborating on initiatives such as JS-SEZ, SFZ, RTS, and potentially HSR,” he said.

Sunway University economics professor Dr Yeah Kim Leng said the surge in investments here is due to a combination of geopolitical, economic, and strategic factors.  

He noted that multinational firms are ‘trans-‘shoring’—transferring their offshore production facilities to other countries in Asia to shield from the potential US-China trade conflict escalation.  

“Chinese companies are investing overseas to diversify away from US markets and capitalise on the expanding markets in Asia and other Asian countries.  

“Being strategically positioned with good infrastructure, a multi-lingual and a greater English-proficient workforce than neighbouring countries. 

“This also includes a well-established semiconductor and information and communication technologies (ICT) supply network, Malaysia has surged ahead in attracting high tech FDI,” he said. 

Yeah added that Malaysia’s energy security, lower natural disaster risk, attractive investment policies, political stability, and forward-looking economic policies are also factors that will continue to attract both foreign and domestic investors. 

Echoing similar views, another industry expert said tech giants and foreign companies will continue to choose to invest in the country due to its strategic geographical location, which offers easy access to the broader Southeast Asian market. 

He opined that this is despite the country’s long-running political instability and the rising cost of doing business. 

“This region is home to a rapidly growing middle class and presents significant opportunities for consumer-driven growth. 

“Malaysia has a well-developed infrastructure, a highly skilled workforce, and a relatively high level of English proficiency, making it an attractive destination for technology and service-oriented industries. 

“Additionally, Malaysia’s government has been proactive in creating a favorable business environment through various incentives, including tax breaks, grants for high-tech industries, and investments in digital infrastructure.  

“The establishment of digital free trade zones and innovation hubs like Cyberjaya has also enhanced Malaysia’s appeal,” he noted. 

The expert also highlighted that Malaysia has a stable legal framework and strong protections for foreign investors, which provides a level of security and predictability that can outweigh some of the risks.  

He said the recent surge in investments, especially this year, can also be attributed to global supply chain shifts, where companies are looking to diversify their manufacturing bases in response to geopolitical tensions and disruptions, such as those experienced during the COVID-19 pandemic. 

Source: NST

Favourable FDI destination

Malaysia is better positioned to negotiate a free trade agreement (FTA) with the European Union (EU) this time around as geopolitics and supply chain realignment gives it some edge, say industry observers.

Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong attributes this to the nation’s trade history with the EU as well as being one of the most prioritised destinations for integrated circuit investments.

He said the EU has been Malaysia’s third or fourth-largest trading partner while Malaysia is the EU’s third-largest trading partner within Asean.

“Our trade with the EU has exceeded €50bil in the last two years, which mainly include machinery and appliances along with some chemical goods and animal fats.

“Malaysia has long been a recipient of foreign direct investment (FDI) from the EU and is also an integral part of the electronics and electrical (E&E) supply chains.

“The E&E-related industries will be one of the most important components in the FTA looking at the ongoing geopolitical tensions. Hence, this puts Malaysia in a very advantageous position when it comes to negotiating with the EU,” he told StarBiz.

Negotiations for an FTA between the EU and Malaysia were launched in 2010 and put on hold after eight rounds of negotiations in 2012, at Malaysia’s request.

Both parties had exhausted their negotiating options at that time. It was then agreed that negotiations would resume when a new mandate and/or additional flexibilities were available to both sides.

In March this year, Prime Minister Datuk Seri Anwar Ibrahim said “the time is ripe to rekindle discussions on the Malaysia-EU FTA” and Europe will be able to capitalise on Malaysia as a gateway to Asia with an FTA.

Bilateral trade in goods between the EU and Malaysia totalled €50.3bil in 2022.

EU imports from Malaysia were valued at €35.6bil, while EU exports to Malaysia reached €14.7bil. Additionally, trade in services between the two partners amounted to nearly €7.6bil in 2021.

EU-Asean Business Council executive director Chris Humphrey said past talks for an FTA were put on hold partly due to local political considerations and concerns about voter reactions to ongoing FTA negotiations when the country is heading for a general election.

Humphrey added that negotiations have taken so long to restart largely due to political reasons in Malaysia and partly because the European Commission felt that the level of ambition on the Malaysian side did not match their own level of ambition for a deep and comprehensive FTA.

“The EU is always looking for new trade deals that not only remove tariffs but also non-tariff barriers and improve market access in both directions, address intellectual property rights, sustainability, and non-core trade issues like labour rights, and environmental protection.

“These may well have been some of the stumbling blocks for Malaysia at that time. Hence, the country needs to be ready to address these issues to secure an FTA with the EU,” he said in an interview with StarBiz.

Areas such as high-end electronics and semiconductors are where Malaysia can significantly enhance its role in its relationship with the EU, Humphrey noted.

“Traditional sectors like machinery, basic electronics and agricultural products will continue to grow, and an FTA would be beneficial by providing tariff-free access and facilitating easier entry into the European market.

“Similarly, European firms could potentially gain improved access to the Malaysian market and look to invest more here,” he said.

On this note, Wong said the new generation of FTAs that will benefit Malaysia the most would be those addressing non-tariff measures.

“After concluding so many rounds of FTAs, tariff barriers in trade have been largely removed. The average simple tariff rates for Malaysia in 2021 was approximately 3.6%.

“Further reduction in tariff rates would only bring about trivial gains from FTAs that are purely focusing on tariff reduction,” he said.

For instance, the biggest benefit of Regional Comprehensive Economic Partnership (RCEP) to Malaysia is not tariff removal but harmonisation of all the different rules of origins under different bilateral trade agreements rectified earlier by the members.

Sharing a single custom standard and procedures across member nations substantially reduces the cost of cross-border trading, making different markets as if a single large market and hence bolstering the gains from trade.

“I believe a proposed FTA between Malaysia and the EU will be heading towards that direction, with emphasis not just on the harmonisation of standards and procedures in goods but also service sectors.

“The benefits can be enormous for both sides, as Malaysian firms would have better access to the European market and capital while for the European companies, the access to the RCEP and Comprehensive and Progressive Agreement for Trans-Pacific Partnership markets,” Wong said.

In Asean, Singapore and Vietnam already have an FTA in place with the EU while negotiations are still ongoing with Indonesia, the Philippines and Thailand.

Humphrey said recent announcements by the EU and the Philippines show both sides are looking at a €6bil increase in trade from the signing of an FTA and this is coming from a lower base compared with what Malaysia presently has with the EU.

“With Vietnam, the growth rate in trade resulting from the FTA with the EU has far surpassed that between the EU and Malaysia.

“Malaysia is extremely well placed and is very active in Europe in terms of trying to attract investment. However, Malaysia probably has not been getting its fair share when you look at the investment flows that have been going elsewhere within South-East Asia.

“Having an FTA in place will definitely be a boost for Malaysia in that regard, going forward,” he said.

The rekindling of the Malaysia-EU FTA is also taking place at an opportune time as Malaysia edges closer to assuming the annually-rotating Asean chair in 2025 from Laos this year.

“Engagement between the EU and Asean is probably at an all-time high now, particularly regarding trade and investment issues. During Malaysia’s chairmanship of Asean next year, the Asean digital economy framework agreement should be reaching its conclusion.

“I hope that under Malaysia’s stewardship, we will achieve an agreement that is open and promotes the digital economy. This could perhaps lead to a broader agreement with Europe at the same time,” he said.

Wong said gaining access to the EU’s market, technology and finances through an FTA is important.

“We are accustomed to thinking of FDI primarily as a means of freeing trade in goods and services, promoting exports and imports as well as attracting more European investments to Malaysia.

“We must not forget that for Malaysia to become a developed country, it is crucial to have local companies that are globalised or internationalised. This is also how the country can really upgrade its overall industrial capacity,” he said.

Source: The Star

Right time to resume FTA talks with EU

The government has agreed to speed up the implementation of the New Industrial Master Plan (NIMP), the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR) ) to achieve net zero carbon emissions by 2050,

Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said new policies such as the National Climate Change Bill (RUUPIN) would also be expedited to achieve the target.

He said the decision was reached yesterday at the Fifth Meeting of the National Climate Change Action Council (MTPIN) chaired by Prime Minister Datuk Seri Anwar Ibrahim.

“The meeting also agreed to establish a National Decarbonisation Committee to monitor the implementation of the action plan to achieve the target,“ he said in a statement today.

Nik Nazmi said he presented three papers to MTPIN where the main points discussed were on the proposed setting of the country’s net zero greenhouse gas (GHG) emission target in 2050 based on the outcome of the Nationally Determined Contributions (NDC) Development Direction and Action Plan and the Long Term Low Carbon Development Strategy (LT-LEDS).

MTPIN also agreed to approve the National Climate Change Policy 2.0 to complement other initiatives such as the RUUPIN, the National Adaptation Plan and the National Carbon Market Policy.

To ensure Malaysia’s active participation in international conferences, Nik Nazmi also tabled the development plan for the Malaysia Pavilion at the 2024 United Nations Climate Change Conference in Baku, Azerbaijan, and COP-30 in Brazil in 2025.

“At the meeting, Bank Negara Malaysia and the Securities Commission presented the financial sector’s response to climate change led by the Joint Committee on Climate Change (JC3).

“This initiative is a manifestation of the government in dealing with the issue of climate change comprehensively by reducing GHG emissions, strengthening the country’s resilience to the effects of climate change and encouraging a shift towards more sustainable and low-carbon development,“ he said.

At the meeting, Nik Nazmi also shared the outcome of his courtesy call on Thai Deputy Prime Minister and Minister of Natural Resources and Environment General Phatcharavat Wongsuwan during his short working visit to Bangkok last June 12.

The Thai government expressed its support for Malaysia for the 2025 ASEAN Chairmanship and agreed to establish cooperation to share expertise in the carbon market mechanism, he said.

Source: Bernama

Govt agrees to speed up NIMP, NETR, HETR to achieve net zero carbon emission by 2050

The New Industrial Master Plan 2030 (NIMP) which requires RM95 billion worth of investment over the next seven years offers new opportunities for banks and the capital market to innovate and offer the right financing products to finance new sectors and technologies.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the government would like the financial sector to take on a more active role in achieving the missions outlined by the NIMP 2030, and the most recent policy, the National Semiconductor Strategy launched in May 2024,

“As a former banker, I’m fully convinced that this will be a “win-win” for financial institutions,” he said in his opening remark at the Sasana Symposium 2024 via a recorded video here today.

He said while financial institutions are always looking at shorter-term gains, the whole sector must also take a more long-term perspective in funding these structural reform agendas.

“The hallmark of successful reforms and true nation building is a win-win end-game for all stakeholders. Securing Malaysia’s future sustainable growth is also securing future income streams of banks and financial institutions,” he said.

He explained that the NIMP 2030 has been designed to guide Malaysia’s industries towards technological advancement, sustainability and greater integration into the global value chain.

“In achieving this, the government has also recognised the importance of small and medium enterprises and the need to scale up to increase their contributions to the sector and the overall economy.”

Together these efforts will undoubtedly raise income levels, benefitting Malaysians across all income segments, he said, adding that the investments in targeted sectors are also meant to create more high-skilled, higher-paying jobs.

He said that unlike the past Industrial Master Plan, Malaysia’s approach this time is to be “mission based”.

“This means placing every stakeholder’s focus on four key missions, which are increasing economic complexity; teching up with best-in-class technologies; pushing for net zero and promoting economic security, resilience and inclusivity.”

The structural changes envisaged by NIMP are both critical and necessary to ensure benefits from additional economic activities truly cascade down to the masses, said Tengku Zafrul.

Source: Bernama

NIMP 2030 offers significant opportunities for banks, capital market – Tengku Zafrul

Prime Minister Datuk Seri Anwar Ibrahim has called on investors to participate in the proposed Johor-Singapore Special Economic Zone (JS-SEZ), a move that will further enhance trade and investment linkages between the two neighbouring countries.

Anwar, who is also Finance Minister, said that while JS-SEZ was a collaboration between the state of Johor and Singapore, the idea for such a project originated from the federal government, which it has strongly endorsed.

To this end, he encouraged investors to take part in the JS-SEZ project and take advantage of the Johor Bahru-Singapore Rapid Transit System Link to be completed in 2026.

The RTS Link is a four-kilometre light rail transit shuttle service connecting Bukit Chagar station in Johor Bahru and the Woodlands North station in Singapore.

“We’re just waiting to finalise this and I would even drop into Singapore to meet the potential investors to encourage them. But we have to get the parameters and issues resolved.

“And from the initial briefing by (Economy) Minister Rafizi (Ramli) and (Minister of Investment, Trade and Industry) (Datuk Seri) Tengku Zafrul it seems that we’re very close to a final agreement,” he said in a joint press conference with his counterpart Lawrence Wong.

The establishment of JS-SEZ is expected to further boost trade between Johor and Singapore, akin to the Chinese city of Shenzhen, a success story of a special economic zone.

The JS-SEZ was mooted by Rafizi after a meeting with the Johor state government at Iskandar Puteri in May last year and both countries agreed to take a step further by setting up a special task force to study the establishment of the special economic zone two months after that.

On Jan 11 this year, Malaysia and Singapore signed a memorandum of understanding on the JS-SEZ.

This is Wong’s first overseas trip since being sworn in as Singapore’s fourth prime minister on May 15.

His two-day working visit to Malaysia which ended today at the invitation of Anwar aimed to discuss efforts in strengthening ties and bilateral cooperation between Malaysia and Singapore as well as to exchange views on regional and international issues of mutual concern.

Source: Bernama

Malaysia invites investors to participate in Johor-Singapore Special Economic Zone

The Malaysia-Singapore Special Economic Zone and the proposed Johor-Singapore Rapid Transit System (RTS) that will be finalised by both countries can have a positive impact on the relationship between the two neighbours that are like brothers.

Economic analyst Dr Oh Ei Sun said Malaysia and Singapore are able to attract investments in the computer and chip industry in addition to having a mature workforce.

“Singapore needs to find a bigger location to invest and build its factories while Malaysia can take advantage of the technology transfer. So, there is potential for the two countries to cooperate in a very broad field.

“If Malaysia and Singapore could cooperate in advanced fields, such as artificial intelligence (AI), it would make both countries a centre of high technology development in Southeast Asia,” he said as a guest on the Malaysia Petang Ini programme, broadcast live on Bernama TV on Wednesday.

Oh said this when commenting on the strengthening of Malaysia-Singapore bilateral relations in conjunction with Singapore Prime Minister Lawrence Wong’s maiden visit after being appointed as premier of the republic on May 15.

According to Oh, detailed information about the special economic zone needs to be clarified such as whether there will be tax exemptions and so on to encourage investment.

He hoped that the details of the Malaysia-Singapore special economic zone would be one of the focuses at the 11th Malaysia-Singapore Leaders’ Retreat at the end of the year.

Oh said another issue between Malaysia and Singapore that needs to be resolved is the congestion at the Johor Causeway due to the high number of Malaysians working in Singapore and commuting daily.

“This problem may be resolved by extending the MRT from Singapore to Johor Bahru. But all this needs coordination,” said Oh.

On global issues such as climate change, he said the problem affects Malaysia’s agricultural sector and Singapore’s position as an island city. Therefore, cooperation in dealing with climate change can benefit both parties.

As for issues at the Asean level, Oh said the cooperation between Malaysia, Singapore and possibly involving Indonesia in dealing with the crisis in Myanmar could increase the spirit of togetherness in the bloc.

Wong arrived in Malaysia for a two-day working visit on Tuesday at the invitation of Prime Minister Datuk Seri Anwar Ibrahim.

Source: Bernama

Malaysia-Singapore Special Economic Zone able to become global high-tech hub: Analyst

As Malaysia’s digital and technology market surged in 2017, PPG strategically positioned itself to leverage this momentum, aiming to bolster its market presence through innovative digital solutions.

PPG is a US$18.2 billion Pittsburgh, United States-based paints, coatings and specialty chemicals company and one of the largest in the world. PPG’s manufacturing facility in Petaling Jaya was incorporated on Nov 5, 1996.

This was further exemplified by PPG’s investment in its Malaysia Global Technology Centre in 2018.

Since then, the techn o logical hub has grown from 25 information technology (IT) professionals of O ra c le and systems, applications and products (SAP) to more than 160 employees across different IT functions.

PPG chief information officer Bhaskar Ramachandran anticipates robust growth ahead for the Malaysia Global Technology Centre and for it to become a global hub for innovation and expertise.

“With strategic focus on data analytics, artificial intelligence (AI), machine learning, SAP, infrastructure and cloud development, we envision expanded investment and heightened growth opportunities. “Looking beyond Asia Pacific, which currently contributes 16 per cent to our global revenue, we eagerly look at Kuala Lumpur to support our different businesses across the globe, driving transformative solutions and fostering ternational collaboration,” he said.

According to Bhaskar, PPG’s data analytics centre of excellence handles data from major enterprise resource planning (ERP) systems like Oracle, SAP and QAD, while the SAP centre of excellence continues to expand with teams across operations, basis, development, integration and testing.

He said that through collaborative efforts with the company’s digital centre of excellence’s research and development, the science and technology centre of excellence continued to leverage AI and machine learning tools to standardise colour formulations and connect PPG laboratories across its global platforms using its range of colour tool software.

“Our telecommunication, networking and global service desk teams, under the Infrastructure centre of excellence, are continuously working towards network modernisation, automation development and cloud-only strategy. “While PPG’s IT security and compliance play a pivotal role in safeguarding our assets and information by assessing current cybersecurity trends, we optimise risks and compliance through our investments in hybrid cloud protection, asset and data protection as well as identity management,” he added.

InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli said: “Greater KL has emerged as a beacon of innovation and collaboration, providing fertile ground for the expansion and transformative endeavours of global corporations like PPG.

With a focused strategy aimed at nurturing innovation and cultivating a dynamic business ecosystem, PPG’s presence in Greater KL, notably its global technology centre, serves as evidence of the region’s capacity to catalyse transformative solutions and facilitate international collaboration.

“Through harnessing the capabilities of data analytics, AI and machine learning, Greater KL rises not just as a regional hub but also as a global epicentre of innovation and technology.” Bhaskar said PPG, with a mission to protect and beautify the world, had always prioritised sustainability in its business. He said the company’s dedicated sustainability organisation focused on advancing environmental, social and governance (ESG) goals.

“After an assessment in 2022, we have set 2030 ESG targets. Currently, 39 per cent of our sales come from sustainably advantaged products, and we’re committed to reaching 50 per cent sales from such products by 2030. “Looking ahead, PPG’s products aim to contribute to a more sustainable future by extending the useable lifespan of bridges and buildings, reducing energy use and greenhouse gas emissions by eliminating curing stages in automotive coatings and sealants, enabling infinitely recyclable aluminium food and beverage packaging, and even improving the fuel efficiency for airplanes and cargo ships.

“PPG, in collaboration with the PPG Foundation, remains committed to community efforts in advancing education, delivering community sustainability and encouraging employee volunteerism,” he said.

Bhaskar said PPG had completed more than 500 projects in 50 countries since 2015, through initiatives such as the global “COLORFUL COMMUNITIES” that aimed to brighten community spaces.

Closer to home in Malaysia, Bhaskar said PPG had just transformed Pusat Pemulihan Dalam Komuniti in Kuala Kubu Baru.

He noted that as part of its educational goals to build the nextgeneration of diverse and innovative science, technology, engineering and mathematics leaders, the company had partnered with 42KL, an educational subsidiary of Sunway Educational Group.

42KL, now expanded to 42Malaysia, aims to deliver educational opportunities to individuals residing in Malaysia regardless of socioeconomic status and educational background.

PPG has pledged an initial grant of RM150,000 and continues to engage with 42Malaysia to support the pioneering development in technological education.

PPG, incorporated in 1883, operates primarily in two segments, namely performance coatings and industrial coatings.

For more than 140 years, the company has been dedicated to developing and delivering paints, coatings and specialty materials that have earned the trust of its customers.

Like most global businesses, PPG explored regional strategic flexibilities to streamline operations, leading to the creation of the Malaysia Asia Pacific shared service centre.

Partnering with government agencies like InvestKL, PPG’s shared service centre, which initially focused on finance, now handles multiple functions including finance, human resources, IT, master data, security, procurement and supply chain.

The shared service centre employs more than 400 diverse professionals, and PPG believes that its greatest strength lies in the diversity of its people.

Bhaskar said the company prioritised their wellbeing by ensuring they were safe, healthy, engaged and valued by continuously delivering improvements on its 2025 targets on diversity, equity and inclusion.

This includes a commitment to achieve 34 per cent to 36 per cent representation of global female professionals and total global employee resource network and diversity, equity and inclusion capabilitybuilding participation of 50 per cent by 2025.

In addition, PPG has almost 55,000 courses currently available for all employees.

Source: NST

Greater KL powering PPG’s success

Malaysia’s window of opportunity to develop itself into a semiconductor powerhouse is deemed small, as the period spans just five to 10 years amid the realignment of the global supply chain, according to Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

Due to the current US-China trade war and the reorganisation of the global supply chain, Malaysia now has a once-in-a-generation opportunity to grow at a high speed, Liew said in his speech at Invest Asean 2024 held in Penang on Monday. Liew’s speech is also available on his website.

“Malaysia has a second chance and a small window of opportunity to develop itself into a more dynamic, resilient and ‘sticky’ supply chain that would bring more technology owners to invest here, and to grow more Malaysian technology owners,” he said.

Liew said that over the past several months, Malaysia’s semiconductor industry, specifically the Penang-Kulim cluster, has been in the global limelight.

He noted that Malaysia contributes to 7% of global semiconductor trade, 13% of global back-end trade, and 23% of the US’ semiconductor trade.

“We want to be a nation getting rich by developing technologies, and not just getting rich by buying and selling lands or oils or minerals,” he said.

Liew said the government’s newly announced National Semiconductor Strategy (NSS) showcases the current administration’s effort to raise the game for the semiconductor industry, and to place the attention of everyone, including the government-linked companies (GLCs) and government-linked investment corporations (GLICs), on the sector.

“At the same time, we are clear-eyed. The Penang and Kulim experience will guide us into the future: that we need quality FDIs (foreign direct investments), we need to build an even stronger ecosystem as today’s corporations care very much about supply chain resilience, and to grow to greater heights, we need to unleash the entrepreneurial spirit in technology,” he said.

Source: The Edge Markets

Deputy Miti minister: Malaysia has five- to 10-year window to seize opportunity from global supply chain reorganisation

Malaysia needs to integrate technology into its economy to escape the middle-income trap, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said Malaysia must prioritise acquiring and incorporating technology into its economy beyond just attracting foreign direct investment to advance.

“Investment is important, but we need to infuse … infusion of technology is important, and we have to move to innovation. In the New Industrial Master Plan (NIMP), we use the word ‘tech-up’. Tech-up in our vocabulary, we mean more digitalisation, more automation, more AI and more innovation,” he told reporters at the Keynote Lecture: Economic Growth in Middle Income Countries: How Can Countries Escape the Middle-Income Trap today.

He explained that this means adopting technology across all sectors and eventually emerging as innovators.

“This is a trajectory that we have to go through,” he said.

He mentioned that the World Bank defines high-income as earning around US$15,000 (RM70,800) per person which Malaysia is almost reaching.

“It is not difficult to achieve because you’re talking about US$15,000. It can just be the ringgit appreciating that you already reached, because we are already almost there. But it is not so much of just achieving numerical high-income. It is really about the economy becoming a very dynamic, vibrant and technological base,” he said.

Liew explained that this means Malaysia does not just follow others in the economy, but leads as a trendsetter and innovator in technology.

“At that point of time in 1994, the question was, can Malaysia in terms of technology become more like South Korea or Taiwan? We are still asking the same question. We are still dealing with the same question, whether we can be a lot more like South Korea or Taiwan in terms of technology,” he said.

Liew stated that China has rapidly advanced in technology, “leapfrogging” ahead, and has now become an innovator in the field.

“We have to be an innovator, but in order to be an innovator, we need to infuse technology, we need to have a cross-support adoption of technology, and of course we need investment,” he reiterated.

Liew pointed to Malaysia’s comprehensive economic policy framework aimed at modernising and advancing the economy under Prime Minister Datuk Seri Anwar Ibrahim.

He stated that Malaysia aims for its economy to advance in technology, becoming both wealthier and more technologically driven as a society.

“With the Economi Madani framework, followed by the National Energy Transition Roadmap, and followed by, recently Prime Minister launched the National Semiconductor Strategy, together with the new industrial master plan 2030 (NIMP 2030). These are all policy frameworks that we want to guide Malaysia to green transition, to technological upgrade, and hopefully play a very important role in the global semiconductor industry,” he said.

He noted Malaysia’s first economic boom from 1988 to 1997 and hopes for a new period of strong economic growth.

“If we can play a very important role in the global semiconductor industry, which is the frontier industry, and if we can move up from the back end of a semiconductor to more front end, a lot more design, and a lot more technological input, a lot more innovation, we will be moving up not just numerically, not just in the measurement of a high-income country, but genuinely we want to see a second economic takeoff for Malaysia,” said Liew.

Source: The Sun

Liew: Malaysia needs to integrate technology into economy to escape middle-income trap

South Korea is enhancing its supply chain resilience by intensifying collaborations with Asean countries, particularly Malaysia, in response to the escalating United States-China economic rivalry.

South Korea’s special envoy for Indo-Pacific affairs, Chung Kee Yong, told Bernama that his country is currently prioritising the development of secure and diversified supply chains through its Indo-Pacific Strategy.

“We are actively collaborating with Asean partners by working with countries like Malaysia. It is possible to develop robust regional supply chains together.

“The MOU between the two countries for Strategic Cooperation on Critical Supply Chains, currently being discussed, may serve as a good example of such collaboration, setting an invaluable precedent. This collaborative approach strengthens economic integration within Southeast Asia and reduces dependence on any single supplier, mitigating risks.”

Chung said this to Bernama after his plenary session at the 37th Asia-Pacific Roundtable (APR) here recently.

He was in the capital to present, alongside other speakers, at a session titled “Megatrends Shaping the Global Economy: Implications for Asia-Pacific”.

Chung highlighted that to enhance its supply chain further, South Korea invests in domestic production capabilities in crucial sectors such as semiconductors and batteries, and is committed to fostering research and development in cutting-edge technologies.

“This strengthens our position within global supply chains and makes us less vulnerable to external disruptions that could cripple production.

“By focusing on innovation, the aim is to reduce dependence on external suppliers for critical components. This focus on technological advancement ensures that we remain competitive in the global market for the long term,” the career diplomat added.

South Korea’s Indo-Pacific strategy, announced by President Yoon Suk Yeol’s government in late 2022, seeks to promote freedom, peace and prosperity through the establishment of a rules-based order, under the principles of inclusiveness, trust and reciprocity.

Free trade agreements (FTAs) as opportunities

Elaborating on the escalating US-China economic rivalry, Chung said the competition between the two superpowers represents a complex situation for South Korea.

“But while it presents challenges, it also opens doors to new opportunities. This is where we see that our strategy to navigate this complex landscape is multifaceted. We are firm believers in free trade agreements (FTAs), so we know the importance.

“We are strengthening existing agreements and actively pursuing new FTAs with promising partners, such as Malaysia. It is encouraging to hear that (South) Korea and Malaysia decided to resume negotiations for the bilateral FTA in March, during our Minister of Trade’s visit to Malaysia. 

“I believe that the FTA will be a cornerstone for further strengthening economic ties between South Korea and Malaysia,” he added.

Chung also noted that his country is investing strategically in domestic industries and technologies critical to supply chain resilience that strengthens the East Asian nation’s position and reduces vulnerability to disruptions emanating from the US-China competition.

Despite the changing landscape, he said South Korea remains committed to a rules-based international trading system that benefits all nations, and is essential for continued global economic stability and prosperity.

On March 26, both countries, part of the Asean-Korea FTA and Regional Comprehensive Economic Partnership (RCEP), resumed FTA negotiations suspended since 2019.

Local currency settlements (LCS)

On a similar note, recognising the growing trend of de-dollarisation in Asean, South Korea sees the potential of local currency settlements (LCS) in strengthening regional economic stability. 

This approach, Chung pointed out, could reduce dependence on the US dollar, mitigating the impact of exchange rate fluctuations and creating a more stable financial environment for the region. 

“South Korea’s recent agreement to renew the bilateral swap arrangement (BSA) with Bank Negara Malaysia (BNM) further supports this initiative by facilitating regional trade and financial cooperation. 

“Through discussions with Malaysia and other Asean nations on the practicality and feasibility of LCS, Korea aims to establish a more resilient and efficient regional financial system, contributing to economic stability and prosperity in the Asia-Pacific,” he said.

The central banks of South Korea and Malaysia announced on May 14 that they had renewed their bilateral currency swap arrangement for three more years.

In 2023, total trade with South Korea amounted to US$24.3 billion (RM111.1 billion).

Malaysia was ranked as South Korea’s third largest trading partner in Asean, and 12th largest globally, with total trade amounting to US$25 billion (RM118.4 billion) in the same period.

Source: Bernama

South Korea to beef up supply chain resilience by tapping Malaysia and Asean

The government is looking at and taking the appropriate action to raise Malaysia’s position in the IMD World Competitiveness Ranking (WCR), which currently stands at number 34.

Prime Minister Datuk Seri Anwar Ibrahim said this includes enhancing the country’s economic management, strengthening the ringgit, and implementing targeted subsidies, which are expected to boost the ranking.

“There are certainly weaknesses that must be addressed. I just want to point out that generally, the report maintains our position as a stable economy. Based on the IMD report, Malaysia is in eighth spot for the economic performance sub-factor, so it is still not concerning.

“I do not deny that (we must worry about) the ringgit’s performance previously as well as our higher expenditure for subsidies and being late in subsidy rationalisation, but I believe that if we resolutely take the (appropriate) measures, our ranking will jump,” he said during the Ministers’ Question Time in the Dewan Rakyat today.

He was replying to a supplementary question from Afnan Hamimi Taib Azamudden (PN-Alor Setar), who wanted to know the government’s strategy following the decline in WCR ranking.

On Afnan Hamimi’s remark that the decline is seen as a reflection of the Cabinet’s performance, Anwar said the performance is a shared responsibility for all.

“If there is criticism that we are being neglectful, we will strive to improve; and this is the responsibility for everyone, not just the Cabinet members, secretaries general, directors general and government agencies.

“I concur that everyone, including me and those under the ministers, should do our best to improve performance, and I will convey it to the Cabinet,” the Prime Minister added.

Source: Bernama

Govt taking appropriate action to enhance Malaysia’s competitiveness ranking – PM

The Indo-Pacific Economic Framework for Prosperity (IPEF) partners, which include Malaysia, said at the inaugural Clean Economy Investor Forum (CEIF) that over US$23 billion of priority infrastructure projects have been identified.

In a statement on Thursday, the Ministry of Investment, Trade and Industry (Miti) said this includes about US$6 billion of ready project proponents presented to investors.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz had participated in the IPEF ministerial meeting and the inaugural CEIF.

Malaysian investors and project proponents that participated in the forum were Khazanah Nasional Bhd, Petroliam Nasional Bhd (Petronas), Gentari, NanoMalaysia Bhd (Gigafactory), MTC Orec Sdn Bhd, Faradays Energy Sdn Bhd and Limpahan Engineering Sdn Bhd, the statement said.

“The CEIF brings together the region’s top investors, cutting-edge project proponents, innovative start-up entrepreneurs and senior government officials to mobilise financing, to support the deployment of clean energy and climate-friendly technologies and infrastructure in the IPEF region,” Tengku Zafrul said in the statement.

The main outcome was the signing of three agreements, which were the (main) IPEF Agreement; the Clean Economy Agreement, and the Fair Economy Agreement by participating countries, which were already substantially agreed on during the IPEF Ministerial Meeting in San Francisco, held on Nov 13-14, 2023, he added.

Tengku Zafrul signed the three agreements on behalf of the Malaysian government.

Other members of the IPEF trade pact are the United States, Australia, Brunei, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam. 

The IPEF Clean Economy Agreement will advance regional cooperation to accelerate the deployment of clean energy technology, promote carbon market activities, collaborate on regional and international carbon capture, utilisation and storage (CCUS) value chains, and promote sustainable transport.

The agreement also establishes a novel mechanism for IPEF partners to develop and participate in cooperative work programmes (CWPs), Tengku Zafrul said.

In conjunction with the ministerial meeting, Malaysia also took the opportunity to deposit the instrument of ratification of the IPEF Agreement Relating to Supply Chain Resilience, signed on Nov 14, 2023.

“With the completion of the ratification process, Malaysia is now ready to implement the agreement. This represents a significant step forward in Malaysia’s efforts to strengthen supply chain resilience,” he said.

Malaysia also intends to use this framework to improve, among others, the resiliency, efficiency, diversity and inclusivity of its supply chains, he said.

The agreement’s ratification is crucial to achieving these objectives and reinforcing Malaysia’s position as a key player in the Indo-Pacific region.

“Malaysia sees great synergies among the IPEF agreements and Malaysia’s current policies, namely the recently launched National Semiconductor Strategy, New Industrial Master Plan 2030, and the National Energy Transition Roadmap,” Tengku Zafrul said.

He believes that the IPEF provides the opportunity for Malaysia to work holistically to benefit all IPEF partners.

“In this vein, Malaysia looks forward to developing cooperation and exploring bilateral support measures with IPEF partner countries in funding and adopting nascent technologies, such as green hydrogen and CCUS,” he said.

Furthermore, Malaysia has offered the Malaysian Anti-Corruption Academy, under the Malaysian Anti-Corruption Commission (MACC), to share experience and best practices under the Catalogue of Technical Assistance and Capacity Building Initiatives, to showcase Malaysia’s commitment to the IPEF, he said.

Source: Bernama

MITI: Over US$23b infrastructure projects identified under Indo-Pacific Economic Framework for Prosperity

Selangor continues to be the prime investment destination, boasting a skilled workforce and well-developed infrastructure, said Menteri Besar Dato’ Seri Amirudin Shari.

He said this mature investment environment has created an ideal, safe setting for businesses to thrive.

“About a month ago, the Statistics Department reported that Selangor’s population had pushed past 7.3 million and continues to grow. That is more than 20 per cent of Malaysia’s population located across nine districts and 12 local councils.

“The majority are youth primed to enter or have just entered the workforce, thanks to the more than 160 universities in the state.

“These two factors mean we not only have a ready market, but a workforce primed to take up jobs that investments will offer,” he said at Tasco Bhd’s Triple Grand Celebrations opening ceremony here today.

The event was to celebrate Tasco’s opening of its new warehouse, which will be part of its Shah Alam hub. The new facility is one of the tallest warehouses in Malaysia, with four storeys reaching approximately 57m in height and spanning over 55,700 sq m.

With the new warehouse, Tasco’s Shah Alam hub now spans around 92,000 sq m, enabling the company to handle and serve more customers and cargo.

In his speech, Amirudin thanked Tasco for investing in the state, further enhancing the warehouse and logistics sector, which he said remains the cornerstone of a modern economy.

“The logistics industry in Malaysia plays a crucial role in the country’s economic development.

“To further enhance this sector, we must focus on strengthening technological advancement and increase the process of automation of the industry’s systems.

“It is only through this that we can sustainably offer better quality and higher-income jobs to our youth to combat living costs, which remain a concern for most, especially the working- and middle-class population,” he said.

Source: Selangor Journal

Selangor a haven for investors, with skilled workers, robust infrastructure — MB

Malaysia can serve as a gateway for Chinese companies to export to the European Union and the United States, suggested National Chamber of Commerce and Industry of Malaysia and Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai.

Soh said China can leverage Malaysia’s strategic location, its established trade networks and its multilingual talent pool.

“Why not (China) work together with Malaysian SMEs and take Malaysia as the hub, and Malaysia can export to the European Union and also export to the USA under Malaysia as the production centre, as the centre of excellence,” he said at the Malaysia-China (Guangxi) Business Dialogue today.

Soh stated that there are plenty of opportunities between Malaysian entrepreneurs and the business community and China.

“As you know, China is very huge. China is close to 10 million square kilometres. China exported about US$3.3 trillion (worth of goods). It’s not billion, it’s trillions. And China also imports huge … US$2.56 trillion (RM12 trillion),” he said.

Soh also highlighted the close relationship between the leadership of China and Malaysia with Prime Minister Datuk Seri Anwar Ibrahim having visited China three times so far.

This year marks the 50th anniversary of diplomatic relations between Malaysia and China, and in the coming weeks, the Chinese Premier Li Qiang, will also visit Malaysia, Soh said.

“So the activities are sure to flourish between both countries,” he added.

China has been Malaysia’s largest trading partner for 15 years, and Soh believes this will continue.

“China is already a global leader, not only in terms of technology but also in AI and business. Malaysia, being a small country, needs to learn from China,“ he said.

Soh stressed the importance of joint ventures between Malaysian SMEs and Chinese companies, particularly in areas such as IR4.0 technologies and advanced manufacturing processes.

He pointed out China’s expertise in sectors such as electronics and electrical (E&E), integrated circuit (IC) design, solar energy, renewable energy, and electric vehicles (EVs).

“In our towns, we can see that more than 60% of EV cars are from China. We hope that Malaysian companies can venture into EV batteries in Malaysia through joint ventures with China,“ he added.

He mentioned that Malaysia’s new industrial master plan NIMP 2030 focuses on sustainability and achieving net-zero greenhouse gas emissions by 2050.

“In terms of sustainability, in terms of ESG, China, you will be surprised. China is moving very, very fast. Many of the organisations, they already start to comply with this ESG. Whereas Malaysia side, we are still catching up. We hope under ESG, there are many China companies able to work together with Malaysia SMEs,” he said.

Soh concluded by encouraging Malaysian businessmen to look beyond Malaysia and consider global markets, particularly Guangxi in China, as potential areas for investment. “Global market is your market. Don’t stay just in Malaysia,“ he urged them.

Source: The Sun

Use Malaysia as gateway to export to EU and US, China companies urged

Asean’s role has become more crucial as more countries enact policies that serve only their interests, said Prime Minister Datuk Seri Anwar Ibrahim.

“In a time when certainties are rare and policies often reflect purely national interests, Asean’s role is more crucial than ever.

“I believe in Asean cohesiveness to strengthen our position as a formidable economic force. We must fortify Asean as a peaceful venture, addressing minor issues pragmatically,” he said in Facebook post yesterday.

Anwar said enhancing collaboration and economic trade and forging greater economic alliances with key partners, such as Japan, South Korea, China, Australia, and India, were essential.

“Our vision is to see Asean not only as a regional powerhouse but also as a dynamic and influential player on the global stage.”

Malaysia would champion these ideals when it assumed the chairmanship of Asean next year, he added.

Diversification of global supply chains and foreign direct investment inflows to benefit development, as well as reducing disparities would also be prioritised.

“By working together, Asean can create a more integrated and resilient regional economy.

“Malaysia itself is setting an example through strategic initiatives, such as the Madani Economy Framework, which aims to drive sustainable and inclusive development, ensuring that the benefits of prosperity are shared equitably among all Malaysians,” he said.

“We also aim to enhance economic cooperation with global partners by advancing technological collaboration and promoting sustainable trade practices, such as greater innovation into green technologies, essential for future growth and environmental sustainability,” he added.

In another post, Anwar said Malaysia, as Asean chair, would prioritise regional cooperation and economic growth.

“On the economic front, our focus will firstly be to strengthen economic cooperation among Asean member states.

“I reiterate this point because while we are successful at maintaining diplomatically, good bilateral relations individually, and at sub-regional and regional Asean levels, we need to do more,” said Anwar.

There was much more the region could work on to enhance its capabilities, improve its capacities to attract investments and trade, and to become an important regional bloc, he added.

“Japan will play an important role in this! It played a pivotal role propelling Malaysia’s economy forward, in the 1970s and 1980s, particularly during our transformative manufacturing boom.”

Source: NST

PM: Strengthen Asean to be global economic force

Malaysia and the United Arab Emirates (UAE) have today reaffirmed their commitment to sign the comprehensive economic partnership agreement (CEPA) by this year. 

This was made during a bilateral meeting between Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz and his counterpart Dr. Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade of the UAE, who was on a one-day working visit to Malaysia. 

The CEPA’s first round of negotiations commenced in October 2023.

The ministry, in a statement, said Malaysia’s first free trade agreement (FTA) with a member of the Gulf Cooperation Council (GCC) is expected to pave the way for deeper economic collaboration. 

This will foster a conducive environment for increased trade and investment flows, not just between the two nations but between Asean and the GCC region in general.

Tengku Zafrul said the substantive progress on CEPA negotiations reflects Malaysia’s commitment to creating a comprehensive framework that mutually benefits Malaysia and the UAE. 

“As Malaysia’s second largest trading partner in West Asia region, Malaysia is optimistic that the signing of the CEPA will further elevate our economic linkages with the UAE to the next level,” he added. 

In addition to the CEPA, both ministers had the opportunity to discuss, among others, potential trade and investment cooperation between the UAE and Malaysia, especially in the areas of semiconductor and renewable energy. 

These sectors are among the priority areas identified by both countries for collaboration towards both nations’ economic growth and technological advancement.

Dr. Thani was accompanied by nine prominent UAE business leaders, representing sectors such as green energy, logistics, retail and airline. 

The delegation aims to explore new business opportunities, forge strategic partnerships, and reinforce existing collaborations with their Malaysian partners towards a shared aspiration of sustainable economic growth for both countries.

Dr. Thani also paid a courtesy call on Prime Minister Datuk Seri Anwar Ibrahim. 

The high-level engagement further solidified the strategic partnership between Malaysia and the UAE, opening new avenues for cooperation and mutual progress. 

Dr. Thani’s visit underscored the UAE’s commitment to fostering strong international partnerships and advancing sustainable economic development.

For the first quarter of 2024, bilateral trade recorded a significant increase of 43.4 per cent to RM11.70 billion. 

On the investment front, as of 2023, 34 manufacturing projects with Emirati participation worth RM1.49 billion (US$0.39 billion) were implemented. 

These projects created a total of 2,039 employment opportunities in Malaysia.

Source: NST

Malaysia, UAE to sign extensive FTA this year: Tengku Zafrul

Malaysia is seeing a surge in high-value reinvestment growth, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

“Malaysia is actually enjoying reinvestment growth at a big, big pace,” he said at the recently concluded Global Forum on Islamic Economics and Finance.

However, Amir Hamzah emphasised that the country aims to prioritise investments that add significant value rather than accepting all forms of investment.

“More importantly, Malaysia is actually trying to push that reinvestment into a higher value-added basis, as opposed to just welcome all investments.”

The minister pointed to the electronics and electrical sector, including semiconductors, which he said is crucial to Malaysia’s economy.

“Going forward, we’ve seen global trends coming. We’ve seen digitalisation coming in a greater form.”

Amir Hamzah also highlighted trends related to security due to geopolitical events including global developments that affect international relations and security.

“So Malaysia is actually at a very interesting place that is actually beneficiary of a lot of the changing geopolitical trends,” he said.

Beyond mere economic expansion, Amir Hamzah also stressed the nation’s commitment to equitable development, focusing on basic needs like infrastructure, education, and healthcare.

“How do we make sure that the money is got down to all elements of society and address very, very basic things such as providing good infrastructure, education, health, and removing poverty within the country? So there’s a lot of reform that the country is trying to do to address that so that it builds a much more resilient future, a much more inclusive future.”

Moreover, he stressed the importance of sustainable growth as well as stringent measures against corruption to ensure equitable wealth distribution.

“In that sustainability, making sure that, as our Prime Minister said earlier, the governance framework within the country must run according to where it needs to be.

“Our fight against corruption is fundamental so that we can remove leakages that occur, distortions that occur, and make sure that the wealth of the country actually is evenly distributed to parts of society that actually need it,” he said.

He said that by considering all aspects holistically, Malaysia can be strengthened and unified.

Source: The Sun

Malaysia sees surge in high-value reinvestment growth

Malaysia’s latest tax reforms, outlined in the Budget 2024 to stimulate domestic startups, drive clean energy investment, and modernise tax administration, are set to benefit innovative startup businesses, green technology sectors, and service-oriented companies.

BMI, a Fitch solutions company, said the budget’s sweeping tax reforms aimed to stimulate local industries and channel investment into key sectors, including advanced manufacturing.

Among the initiatives are Reinvestment Allowance (RA), Electric Vehicles (EVs) Tax Incentives and Global Services Hub Tax Incentive.

BMI said the RA effectively lowers the tax burden on companies that undertake capital investments to modernise machinery, upgrade technology or diversify into higher-value products, while the extended tax incentives until the assessment year 2027 for EVs will reduce operational costs for businesses in the rental sector, potentially accelerating fleet upgrades and increased adoption of green vehicles.

“Companies that set up global service centres in Malaysia will benefit from a reduced tax rate under the Global Services Hub Tax Incentive,” it said in a statement.

BMI noted that Malaysia’s corporate income tax rate of 24 per cent positions it towards the higher end of the spectrum in the broader Asia region.

In contrast, Asean neighbours such as Singapore and Thailand offer more competitive rates of 17 per cent and 20 per cent, respectively, positioning them as more favourable investment destinations on a tax basis.

However, BMI said introducing targeted incentives can offset the high tax rates.

“While Malaysia’s corporate income tax rate is high by regional standards, the introduction of targeted investment incentives is poised to enhance investment appeal in key innovative and sustainable sectors.

“This strategy will enhance Malaysia’s attractiveness as an investment hub before the Global Minimum Tax (GMT) comes into effect. Once the GMT is broadly adopted broadly across Asia, the competitive edge will shift as low tax rates will no longer be a draw for foreign direct investment, given that the tax floor will be uniform in adopting markets,” it said.

BMI said that consequently, economies like Malaysia will need to offer additional incentives to enhance their attractiveness to businesses.

“Such proactive measures are expected to strengthen Malaysia’s overall value proposition for companies operating within its borders,” it added.

Malaysia’s implementation of the GMT, as part of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion Profit Shifting (BEPS) 2.0 project, has been deferred to 2025.

This tax will affect multinational enterprises (MNEs) with consolidated revenues exceeding 750 million euros, by instituting a floor of 15 per cent on their tax rates.

Introducing mechanisms such as the Qualified Domestic Minimum Top-Up Tax and the Income Inclusion Rule will fortify the tax base against erosion, aligning Malaysia with global efforts to curtail tax avoidance.

Source: Bernama

Malaysia’s tax reforms help stimulates innovation, advanced technologies — BMI

Malaysia has seen foreign direct investment (FDI) inflows from Mainland of China and Hong Kong Special Administrative Region increase to US$3.4 billion (US$1= RM4.696) in 2023 from US$3.3 billion in 2022 and tripling from 2013 levels, says OCBC global markets research and strategy.

Its senior Asean economist, Lavanya Venkateswaran, said Malaysia, as one of the ASEAN-6 economies alongside Indonesia, the Philippines, Thailand, Singapore, and Vietnam, has benefited from the diversification of global and regional supply chains, as well as the adoption of ‘China+1’ strategies.

She said the net FDI inflows into Malaysia were highest in the services and manufacturing sectors, implying that these sectors have been major recipients of inflows.

“Data compiled by the American Enterprise Institute and the Heritage Foundation shows that the bulk of investment from China has been directed towards the energy, technology and transportation sectors,” she said in OCBC’s latest report on Asean-China FDI released.

To recap, Lavanya said Chinese firms pledged around RM170 billion in investments into Malaysia in April 2023, with 19 memoranda of understanding (MoUs) signed, followed by commitments of RM19.84 billion in September 2023. 

“These suggest that there is a strong pipeline of FDI commitments from China into Malaysia. 

“Further commitments are likely to be made at the Malaysia-China Summit 2024, which runs from 17th to 19th December, 2024,” she said.

Lavanya noted that foreign capital investment approvals, a proxy for approved FDI, have been picking up flowing into Malaysia.

“The source of the inflows has become more diverse in recent years, underscoring the broadening role of Malaysia in regional and global supply chains.

“Inflows from the European Union, other ASEAN countries, the United States, Japan and China have improved in recent years. ,” she said.

Regionally, Lavanya said FDI inflows into the ASEAN-6 economies have been gaining traction, rising to US$236 billion in 2023 versus the annual average of US$190 billion in 2020- 2022.

Source: Bernama

Malaysia attracts US$3.4 bln FDI from China, HK in 2023 — OCBC economist

To address the talent shortage in Malaysia, the Ministry of Investment, Trade and Industry (Miti), together with the Human Resources Ministry, is finalising some incentives to bring back highly-skilled local talent from abroad.

Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz said this during a media briefing on the National Semiconductor Strategy (NSS) on Wednesday.

“We see that highly-skilled Malaysian engineers are being poached by global players. It is not only the semiconductor industry that is facing talent shortage, but other industries as well.

“We need to ensure that we continue to attract Malaysians to stay in the country, perhaps by offering more attractive salaries. Companies must play a role in this, as ultimately, it is a function of supply and demand,” he said.

He was responding to reporters’ questions on what initiatives are being undertaken by the government to address the talent crunch in the semiconductor industry.

The government also has an ambitious target to train 60,000 highly-skilled local engineers in the semiconductor industry, as announced by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday.

“The challenge [for us] is not just in ensuring we have enough highly-skilled engineers but also to ensure that the number [of workers] continues to grow,” said Tengku Zafrul.

“We need collaboration between the government and the private sector, for example, universities, TVET (technical and vocational education and training) institutions, and other educational bodies, to help us achieve our target,” he added.

Source: The Edge Malaysia

MITI, HR Ministry finalising incentives to bring home local talent, says Tengku Zafrul

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has proposed a halal category for Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI).

The minister said the ministry is also redefining the role of the Halal Development Corporation (HDC) to eliminate redundancies and sharpen the focus of halal industry promotion within the MITI ecosystem.

“I have requested MIDA to have a new category for FDI and DDI, which is the halal category. MIDA will spearhead overall investment promotions including halal, while HDC drives growth in the halal industrial ecosystem. HDC will craft strategies for fully halal and Shariah-compliant value chains, branching out into new sectors like pharmaceuticals, cosmetics, personal care, logistics, hospitality services, and medical devices to cater to the modern economy,” he said in his special address at the Global Forum on Islamic Economics and Finance held here today.

He said the global Islamic economy holds immense potential for growth with the global halal market predicted to reach US$9.71 trillion by 2025, with nations like Malaysia expected to lead the pack in the coming years.

“As the halal industry becomes one of the most competitive and fast-moving sectors in the world, so too will Islamic financial assets.

“In fact, global Islamic financial assets expanded by 163% over the past decade, from US$1.71 trillion in 2012 to US$4.51 trillion in 2022,” he pointed.

Tengku Zafrul said that this is attributed to strong balance sheets, high earnings, regulatory support, and sustained demand from customers and investors worldwide.

Therefore, he added it does not come as a surprise that many countries are now focusing on the halal industry, with many businesses looking to invest in halal-related products, driving innovation and creating solutions for their ‘target share’ of the 1.9 billion Muslims globally, which is almost 25% of the world’s population.

Source: The Sun

MITI Minister proposes halal category for FDI and DDI

Prime Minister Datuk Seri Anwar Ibrahim said government support will ensure that foreign investments proceed smoothly, with their operations starting according to schedule.

He said the presence of strong investors such as Mubadala Energy, an international energy company headquartered in Abu Dhabi with investments in seven countries including Malaysia, is aligned with the government’s effort in implementing the National Energy Transition Roadmap (NETR).

“Malaysia welcomes this investment planning which is also linked to the high-impact renewable energy projects,” he said in a post on his official Facebook page on Monday.

The prime minister received a courtesy visit from Mubadala Energy chief executive officer Sheikh Mansoor Mohamed Al Hamed, accompanied by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz at his office in Putrajaya on Monday.

“This company (Mubadala Energy) is now active in renewable energy initiatives and decarbonation through investment in value chain development such as blue hydrogen and carbon capture, utilisation and storage (CCUS).

“During the meeting, I was informed on the focus and progress of implementation of Mubadala Energy’s investments in Malaysia,” said Anwar.

Source: Bernama

Anwar vows full govt support in ensuring foreign investments proceed smoothly

Malaysia and China will sign several memorandums of understanding (MoUs) to further strengthen trade and bilateral relations in conjunction with the 50th anniversary of diplomacy between both nations.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the Ministry of Investment, Trade and Industry (Miti) has lined up to sign four MoUs with China, all of which are on the high-tech and trade sectors, at the end of this month.

“Several other ministries will also be involved in the MoUs with China.

“Detailed information will be provided later with Prime Minister Datuk Seri Anwar Ibrahim in attendance to witness the signing of the MoUs at the end of May,” he told Bernama after an interview on Bernama Radio’s “Malaysia-China Golden Jubilee” programme here today.

Malaysia officially established diplomatic relations with China on May 31, 1974, thus becoming the first Asean country to extend a hand of friendship to Beijing.

Tengku Zafrul said Chinese Premier Li Qiang is scheduled to visit Malaysia at the end of this month to mark five decades of ties between both countries will boost confidence in Chinese and local investors to increase investment in addition to gaining wider market access to both countries.

He said China is Malaysia’s largest trading partner and a major foreign direct investment (FDI) source.

“In 2023, China was among the five largest sources of foreign investment into Malaysia with a total investment worth US$3.15 billion (RM14.8 billion).

“The sectors that are the focus of investors from China are mostly in the electrical and electronics sector, machinery and equipment as well as chemicals and chemical products,” said the minister.

Tengku Zafrul noted that total trade between Malaysia and China between January and April increased 5.9 per cent to RM151.06 billion compared to the same period last year.

“The approved investment report for the first quarter of 2024 is expected to be issued by the Malaysian Investment Development Authority (Mida) in June 2024.

“I am optimistic that the investment value for the period will show positive data, in line with the growth of bilateral trade and economic relations that are getting closer,” he added. 

Source: Bernama

Tengku Zafrul: Malaysia-China to mark golden jubilee, boost trade, diplomatic relations via MoUs

Sabah could offer a conducive environment for Japanese companies and investors, said state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

He said Sabah had been working closely with the Japanese ambassador, His Excellency Takahashi Katsuhiko, and Japanese trade associations, including JACTIM and JETRO.

“Sabah, being the nearest region to Japan, is poised to play a pivotal role in this transformative journey towards sustainable energy solutions. I am thrilled to welcome Japanese investors to Sabah.

“The potential investments in renewable energy and the semiconductor industry align perfectly with our vision for sustainable development and technological advancement.

“Sabah offers unique opportunities for investment, particularly in renewable energy, due to our abundant natural resources, strategic location and diverse power generation mix.”

Phoong was responding to the promising news of increased trade and investment ties between Malaysia and Japan.

The recent announcement by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, highlighting the potential for RM40 billion to RM50 billion in renewable energy investments over the next decade, underscores the strategic importance of Sabah and Sarawak in this initiative.

He said Sabah government was actively working to ensure that these investments translated into meaningful economic growth and job creation for Sabahans.

Source: NST

Minister: Sabah poised to attract Japanese investors