Malaysia hopes to buck the global trend to attract further investment inflows even as competition for such capital is getting keener, especially within the Asean/Asian region.

During the announcement of the country’s investment performance for the first nine months of this year, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said there is a need to reposition Malaysia on this front so it can continue attracting the right type of investments it wants.

“As for the whole year, we are on track to beat last year’s numbers. It is not easy now, the trade figures we have will have some correlation to world trade. For investments, it’s not so easy as global foreign direct investment (FDI) was down last year,” Tengku Zafrul said at a press conference yesterday.

“For us to beat the trend, we need to try to position Malaysia as a different kind of investment destination. The investments for the first nine months of this year compared to the first nine months of last year were actually up by 6.6% despite the negative global FDI figures last year and this year,” he added.

The global FDI statistics that showed a decline is taken from the United Nations Conference on Trade and Development, he pointed out.

In his speech during the announcement of the country’s trade performance, he said the International Trade and Industry Ministry (Miti) is actively looking into new markets for investments, including countries such as Ecuador and Kazakhstan.

“As for priorities in 2024, Miti will give focus to quickening the process to approve investments. We also aim to complete the rationalisation of our agencies so we can attract the desired investments. In terms of trade, we target a 5% growth next year despite the World Trade Organisation forecasts showing a rather challenging trend moving forward,” Tengku Zafrul said.

“The new markets we aim to focus on include the Middle East, Africa and the South American continents,” he added.

Tengku Zafrul also noted that based on recent data since 2021, about 80% of these approved investments eventually became actual realised investments.

“We have these investment commitments – then we do the cost benefit analysis, incentives and on what guidelines to give them.

“If they (investors) agree, it will become investment that we approve. And it is approved. We also monitor how much of these is realised and it is about 80%,” he said.

“We should try to improve on this, we are not so satisfied with this.

“Apart from companies deciding not to actually invest eventually due to their own reasons, sometimes there are also challenges on our end that we need to address,” Tengku Zafrul added.

Miti said Malaysia attracted RM225bil of approved investments in services (RM117.7bil), manufacturing (RM99.8bil) and the primary sectors (RM7.5bil).

This is a 6.6% increase as compared to the RM211bil approved investments in the same period last year.

“FDIs accounted for a substantial 55.9% or RM125.7bil of the total approved investments, while domestic direct investment (DDI) contributed 44.1% or RM99.3bil. DDI recorded an impressive surge of 45.2% as compared to the same period last year,” it said.

Miti said the five sources of FDI was led by The Netherlands (RM35.0bil), Singapore (RM20.4bil), the United States (RM18.9bil), China (RM11.6bil) and Japan (RM11.2bil).

The top five states that have recorded significant investment value to the total approved investments include Kuala Lumpur (RM48.9bil), Penang (RM44.9bil), Selangor (RM41.6bil), Kedah (RM22.6bil) and Johor (RM20bil), it said.

Miti said the impressive rise in DDI was testament to local players’ confidence in the country’s prospects.

Tengku Zafrul also said in a statement: “The RM225bil, which represents a 6.6% year-on-year increase, is Malaysia’s best achievement for the corresponding period over the past decade, and is a marked increase against the 10-year average of RM222.6bil for approved private investments.

“This achievement is testament to Malaysia’s continued attractiveness as an investment destination, as well as our collaborative whole-of-government and the whole-of-nation efforts in attracting, facilitating and retaining investments, while enhancing the ease of doing business under the Madani Economy framework,” he added.

He said the recent investment inflows from countries such as the Netherlands, Singapore, the United States, China, and Japan reflect the type of high-tech, strategic investments that Malaysia is targeting from global players.

“But this is no time for complacency. Miti and its agency, the Malaysian Investment Development Authority (Mida), will continue to position Malaysia as a highly viable and stable destination to strategically capture more inflows from the redesigning of supply chains in the global investment landscape, in line with our industrial transformation as stipulated in the New Industrial Master Plan (NIMP) 2030,” Tengku Zafrul said.

Miti, meanwhile, also pointed out that one of the standout ventures within the services sector was Envico Enterprises Sdn Bhd, which is a strategic regional establishment within Malaysia’s services sector and a division of The Valiram Group – a local retailer specialist.

It said another investment project that stood out in the semiconductor/tech manufacturing space in the period include by Lumileds Malaysia Sdn Bhd with a hefty investment of RM25.7bil earmarked for the manufacture of LED chips, devices, sub-assemblies and LED-based lighting products, systems and modules.

Datuk Wira Arham Abdul Rahman, chief executive officer of MIDA said the manufacturing sector’s stellar performance, notably for the electrical and electronics industry, strategically positions Malaysia as a pivotal hub for global manufacturing giants.

“These accomplishments are a testament to the synergistic collaboration between public and private entities in advancing a robust industrial landscape and enablers,” Arham said.

Source: The Star

Investments on rising trend

A recent workshop between Malaysian and the European Union (EU) representatives marked the commencement of discussions on the scoping process for the Malaysia-EU free trade agreements (FTA). 

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said a concerted effort involving all ministries is also underway, ensuring that every concern raised finds resolution, drawing from the experiences of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“If the FTA with the EU does not bring the anticipated benefits to our companies, it might be challenging for us to reach an agreement,” he told a press conference here today.

In the realm of upcoming FTAs, Tengku Zafrul said there is the UAE Comprehensive Economic Partnership Agreement, which is expected to be signed in February next year.

He said the ministry is also in discussions on the Indo-Pacific Economic Framework, having agreed on the second, third, and fourth pillars, with only one pillar remaining namely the trade part. 

“Malaysia-EFTA Economic Partnership Agreement (MEEPA) is still under discussion. 

“There are plans to enhance some of the FTAs, especially in the areas of green and digital,” he added.

Source: NST

Workshop marks start of Malaysia-EU FTA talks: Tengku Zafrul

Malaysia’s service sector contributed 52.3 per cent of the total approved investments for 2023 by bringing in RM117.7 billion in investments from a total of RM225 billion of approved investments, Minister of Investment, Trade and Industry (Miti) Datuk Seri Tengku Zafrul Abdul Aziz said today.

This he said was a 6.6 per cent increase from last year’s RM211 billion approved investments. Malaysia’s foreign direct investments (FDI) accounted for 55.9 per cent or RM125.7 billion of the total approved investments while the domestic direct investment (DDI) contributed 44.1 per cent or RM99.3 billion, which is a 45.2 per cent increase compared to last year.

“With an impressive number of 3,949 projects approved, a 35.3 per cent increase as compared to January-September 2022, these approved projects will generate 89,495 new jobs in the country,”

“Investment inflow from countries such as Holland, Singapore, the United States, China and Japan reflect the type of high-tech, strategic investments that Malaysia is targeting from global players. But this is no time for complacency. Miti and its agency,” Tengku Zafrul said during a presentation on his ministry’s performance after one year in office here.

Tengku Zafrul listed the country’s top five sources of FDI as the Netherlands (RM35 billion), Singapore (RM20.4 billion), the United States (RM18.9 billion), China (RM11.6 billion) and Japan (RM11.2 billion).

Meanwhile, the top five states with approved investments were the Federal Territory of Kuala Lumpur (RM48.9 billion), Penang (RM44.9 billion), Selangor (RM41.6 billion), Kedah (RM22.6 billion) and Johor (RM20.0 billion).

Of the total approved investments in the services sector, he said RM78.7 billion or 66.8 per cent came from DDI while the remaining 33.2 per cent or RM39 billion were from foreign sources.

Information and communications technology (ICT) was the largest recipient of investments in the services sector, with RM45.6 billion approved. Other major sub-sectors were real estate (RM44.4 billion), distributive trade (RM9.2 billion), utilities (RM6.3 billion) and financial services (RM6.0 billion).

In line with the transition to the green agenda as outlined in the National Transition Energy Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030, investments in green technology have grown significantly, by 24.6 per cent to RM1.5 billion year-on-year.

These investments encompass various green technology initiatives, including renewable energy generation, energy conservation, waste management, green buildings and green services.

Apart from that, the manufacturing sector attracted a total of RM99.8 billion accounting for 44.4 per cent of total approved investments across all sectors marking a significant increase of 53.9 per cent from the 64.9 billion recorded in the same period of 2022.

These investments are spread across 607 projects, poised to generate an estimated 48,496 job opportunities. FDI takes a significant lead, contributing RM84.8 billion or 85.0 per cent, while DDI accounts for RM15.0 billion or 15 per cent.

“What’s important to note here is that this year’s investments have been the best in the past decade. Our first nine months have averaged higher investment averages compared to the previous 10 years which shows that Malaysia is still an attractive investment hub.

“We also may announce a collaboration with Boeing to expand their business here. At the moment, from what I’m told 55 per cent of all Boeing plane’s wings are assembled in Malaysia, hopefully we can grow and expand this in the coming years,” he added.

Source: Malay Mail

Tengku Zafrul: Service sector received over half of all FDI this year; the Netherlands leads in investment here

The government has an important role in enacting clear and integrated policies to attract and retain investors in Malaysia, says Prime Minister Datuk Seri Anwar Ibrahim.

In a Facebook post yesterday evening, he said the approach to dealing with the industry also needs to be instilled in a way so the policies and initiatives created are in line with current and future needs.

These were among the topics he shared during the courtesy visit of Semiconductor Industry Association (SIA) vice president (global policy) Mary Thornton and her delegation yesterday.

“In this meeting, SIA members took the opportunity to inform me about industry planning and recommendations in strengthening Malaysia’s attractiveness as a destination for foreign investment, especially at the high-value chain level.

“Among other things, I explained the government’s important approach, which encourages the private sector to lead skills centres as a step to overcome the issue of the new workforce not matching the needs of the industry,” said Anwar.

The delegation also agreed the ecosystem of small and medium enterprises which contributed to the production chain of the world’s major companies should always be emphasised and supported.

SIA has been the voice of the US semiconductor industry for over four decades, and its members represent more than 99 per cent of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms.

Source: Bernama

Govt must enact clear policies to attract, retain investors — PM

The Sarawak government’s commitment to sustainable development has gained attention from the world, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said this is evident through favourable ratings by international rating agencies such as Standard and Poor’s and Moody’s Investor Services that concur with Sarawak’s strategy to attract more quality investments to develop Sarawak on a big scale.

“Sarawak is now focusing on promoting low carbon solutions, green and circular economy. We also aim to be a regional leader in innovation and high technology-based economy.

“With the Post Covid-19 Development Strategy (PCDS) 2030, we are promoting economic prosperity, social inclusivity and environmental sustainability,” he said after witnessing the signing of a Memorandum of Understanding (MoU) yesterday between Invest Sarawak and Singapore’s Surbana Jurong Infrastructure, in conjunction with the 2023 United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates.

The text of his speech was shared by the Office of the Premier of Sarawak.

Adding on, Abang Johari said Sarawak remains as one of the most popular destinations for investment in Malaysia and the region at large.

He said the state welcomes investments and collaborations that can create mutual benefits for all, particularly in six priority sectors namely manufacturing, commercial agriculture, tourism, forestry, mining and services.

“Up until September this year, the Sarawak government has approved US$2.4 billion (RM11.3 billion) worth of investments in the manufacturing sector.

“This is credited to our business-friendly policy that has always been very supportive of investments of both foreign direct investment and domestic direct investment,” he said.

On the MoU, Abang Johari said it will cover areas of collaborations in industry transformation; energy transition and industrial decarbonisation; carbon capture, usage and storage (CCUS) decarbonisation; and industrial park development and management, in hope of realising the development of low-carbon industries in Sarawak.

“This MoU is a natural progression following the completion of the master plan for the development of industrial terminals in Sarawak that Surbana Jurong did for the government of Sarawak.

“The master plan has identified challenges and opportunities for Sarawak’s industrial landscape such as green economy opportunities, and enhance and develop skillsets to equip the people of Sarawak for these new opportunities; and the implementation of a just energy transition and industrial decarbonisation projects, integrated with greenfield and brownfield industrial activities,” he said.

Meanwhile, the Premier said in order to put the state government’s commitment into real climate action, Sarawak had Nov 21 this year become the first in Malaysia to pass law on carbon emissions, namely the Environment (Reduction of Greenhouse Gas Emission) Bill 2023.

He explained this Bill is designed to safeguard Sarawak’s environment by implementing concrete strategies to reduce the emissions of greenhouse gases.

“It will also help to promote carbon capture and storage that will help mitigate the impact of climate change while providing a platform for Sarawakians to participate in carbon mitigation projects that will earn carbon credits for their efforts.

“All the other efforts currently in progress such as green hydrogen, micro-algae, sustainable aviation fuels (SAF) and also biomass projects in Sarawak are done all in view of a better future Sarawak and the planet,” he said.

Signing the MoU on behalf of Surbana Jurong was its managing director (Energy and Industrial) Tan Wooi Leong, while Invest Sarawak was represented by its chief executive officer Timothy Ong.

Also present at the ceremony were Deputy Premier of Sarawak Datuk Amar Awang Tengah Ali Hasan and senior officials from both Singapore and Sarawak.

Source: Borneo Post

Premier: State’s commitment to sustainable devt attracting global attention, investments

Pahang recorded committed investments valued at RM10.415 billion as of June 2023, said state public works, transport and health committee chairman Datuk Mohammad Fakhruddin Mohd Ariff.

Of that, foreign direct investment accounted for RM9.575 billion while domestic direct investment totalled RM839.4 million, he said, noting that the state government has implemented various investment strategies to attract more investors.

“Among others, we apply an investment strategy with a location-centric approach, with the location of the project bering determined based on industrial clusters. For example, Gebeng (Kuantan) has sections for port and petrochemicals, heavy and medium industries, as well as timber, digital and tech industries.

“Tanjung Agas (Pekan) is an industrial area for maritime and manufacturing, while Kechau Tui (Lipis) is a defence-based industrial area,” he said at the State Legislative Assembly sitting here today.

Mohammad Fakhruddin was responding to a question from Woo Chee Wan (PH-Mentakab) on behalf of state investment, industries, science, technology and innovation committee chairman Datuk Mohamad Nizar Najib who was on sick leave.

Woo wished to know the amount of investments received by Pahang up to June, and actions taken by the state government to attract investors.

Mohammad Fakhruddin said the state government is focusing efforts and action plans towards improving infrastructure to support initiatives to attract more investments, besides providing various initiatives and facilities for investors.

“For example, the Investment and Privatisation Division acts as a one-stop agency to facilitate investment deals with government-linked companies and technical agencies at the state and federal levels, especially with the Malaysian Investment Development Authority and the East Coast Economic Region Development Council (ECERDC), particularly on provison of incentives for high-impact investment projects.

“The development and screening of Pahang corporate videos as well as participation in several investment exhibition programmes are also implemented for promotion and publicity to attract new investments,“ he said.

Source: Bernama

Pahang records committed investments of RM10.4 bln in first half of 2023

Malaysia is well-positioned to benefit from the global supply-chain diversification with its competitive manufacturing sector, according to Fitch Rating.

The firm also noted that foreign direct investment (FDI) inflows had picked up noticeably since the reopening of the economy in 2022.

Fitch affirmed Malaysia’s long-term foreign-currency issuer default rating (IDR) at “BBB+” with a stable outlook.

“Malaysia has recorded current account surpluses for more than two decades and it expects the current account to remain in surplus in the medium term, despite near-term external challenges. We forecast the current account surplus to narrow to 2.6 per cent of gross domestic product (GDP) in 2023 from 3.0 per cent of GDP in 2022,” it said.

Meanwhile, Fitch Rating said the country’s medium-term fiscal framework projects an average government deficit of 3.5 per cent in 2024-2026.

The recently-passed Public Finance and Fiscal Responsibility Act mandates the federal government deficit to fall to 3.0 per cent of GDP in the next three to five years.

“We project the federal government deficit to further decline to 3.5 per cent in 2025 amid further subsidy rationalisation and the rollout of the global minimum tax,” it said.

In addition, the rating agency forecast the general government deficit to narrow to 2.8 per cent of GDP in 2025 from an average of 5.2 per cent of GDP in 2020-2022.

“We expect fiscal adjustments such as a broad and immediate removal of subsidies and the introduction of broad-based consumption taxes to be politically challenging in the near term, as the government balances interests within the ruling coalition and seeks to garner support from voters,” it added.

Source: NST

Fitch affirms Malaysia’s ratings, says country to benefit from supply-chain diversification

Sabah is hoping for more high-impact investors from China and other developed countries, said state Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan.

“These investors are crucial for Sabah’s economic growth and sustainable development.

“We are dedicated to making Sabah an appealing destination for investment. Our focus is on facilitating rapid economic growth and ensuring sustainable development in the state,” he said during the High Quality One Belt One Road Cooperation forum at Sabah International Convention Centre here.

Jeffrey said with this at opening of the multi-billion Sabah Kibing Solar New Materials (M) Sdn Bhd facility, boasting an annual production capacity of 440,000 tons of solar glass.

Such an investment, he added, positions Sabah as a key player in Malaysia’s solar glass manufacturing industry.

“The facility is also a major contributor to the renewable energy sector, creating jobs for 1,300 people, with over 80 per cent of the workforce being Sabahan residents.

“This development is a testament to China’s advanced technology, not just in manufacturing but also in building and infrastructure.”

Apart from that, he also said Chinese construction companies, which used their skills and expertise, have contributed to many modern and green high-rise buildings in Sabah.

Among them include the Sabah International Convention Centre (SICC), the tallest building on Borneo Island which is the 56- storey Jesselton Twin Tower, and Coral Bay, a 460-unit luxury condominium within Sutera Harbour Resort among others.

“These projects highlight China’s significant contribution to Sabah’s architectural landscape.”

As for the forum, Jeffrey said it focused on promoting Sabah’s involvement in co-building and contributing to the development of a China-Malaysia community of shared destiny.

“Sabah’s strategic location along the China Maritime Silk Road route offers numerous advantages. These include its rich natural resources, favourable climate, and the multilingual skills of its people.

“By skilfully leveraging these advantages, Sabah is poised to become a vital logistics hub and a key player in the China Maritime Silk Road route. This will contribute to the growth of both ASEAN and the BIMP-EAGA region.”

Source: NST

Sabah hopes to see more high-impact investment from China and developed countries

The manufacturing and services sectors will continue to be focused to attract investments next year as it is the largest contributor to the Gross Domestic Product (GDP) of Negeri Sembilan, the State Legislative Assembly (DUN) was told.

Menteri Besar Datuk Seri Aminuddin Harun said the sectors also offer many job opportunities to the locals in addition to improving the construction sector during the development phase.

“For the manufacturing sector, the sub-sector focused on is the high-tech industry that offers highly skilled jobs in fields including electrical and electronics (semiconductors), the aerospace industry and components and pharmaceuticals.

“While for the services sector, the type of industry focused on is the development of new hospitals, hotels, infrastructure projects, digital and data centres as well as logistics hubs,” he said.

The Sikamat state assemblyman was replying to a question from Choo Ken Hwa (PH-Lukut) who wanted to know the focus of the investment sector in 2024 and plans to increase investment in the sector.

Aminuddin said in order to achieve sustainable economic growth, initial emphasis will be given to the manufacturing sector to produce more high-quality, diverse and complex products.

Aminuddin, who is also the Member of Parliament for Port Dickson, said in that regard, emphasis will be placed on strengthening sectors with high growth potential as well as industrial sub-sectors based on green and sustainable development.

Therefore, he reiterated his confidence that the state government is able to achieve the investment target of RM7 billion for next year covering the identified sectors.

Aminuddin is also optimistic that the policies and strategies drawn up will strengthen the investment ecosystem and boost the activity, thus driving economic growth and positioning Negeri Sembilan as a major investment destination.

In addition, he said the state government also always encourages foreign investment and international cooperation taking into account foreign direct investment (FDI) through various activities.

It includes intensifying promotional programmes such as participation in overseas investment promotion missions organised by the Malaysian Investment Development Authority or the Ministry of Investment, Trade and Industry as well as participating in domestic and foreign expos, he said.

Source: Bernama

MB: Manufacturing and services sectors under focus to attract investments to N. Sembilan

THE continuous support by investors is helping the state grow in various sectors, including industrial and services, says Perak Investment Management Centre (InvestPerak).

Its chief executive officer Mohamad Hashim Abdul Ghani said the centre has been working to ensure that the Perak economy keeps expanding.

“We have several investment promotion activities carried out in collaboration with the Investment, Trade and Industry Ministry (Miti) and Malaysian Investment Development Authority (Mida) to attract more quality and high-tech investments, especially in the industrial and services sectors

“At InvestPerak we have been given the responsibility to ensure all relevant projects are approved and implemented smoothly,” he said during the launch of Perak Industrial Plan (P3) and appreciation dinner for investors at Casuarina Meru.

Among those present were Perak Mentri Besar Datuk Seri Saarani Mohamad, state secretary Datuk Ahmad Suadi Abdul Rahim, state finance officer Datuk Mohd Zaki Mahuidin, state legal advisor Datuk Azmir Shah Zainal Abidin, Miti secretary-general Datuk Hairil Yahri Yaacob and Perak investment, industry, corridor development centre and tourism committee chairman Loh Sze Yee.

Mohamad Hashim added that the dinner was an annual affair but was postponed due to the Covid-19 pandemic.

“The last time we had the dinner was in 2019.

“Therefore, I would like to take this opportunity to thank industry players for their never-ending support towards boosting Perak’s economy.

“We also thank agencies, such as PLANMalaysia, Environmental Department, land offices and local councils for always giving their full cooperation and addressing issues raised by investors in a prompt manner.”

He added that UKM Pakarunding Sdn Bhd had been appointed to prepare P3.

Saarani applauded the role played by InvestPerak in resolving problems and accelerating investments.

“Despite uncertainties in the global economy, with geopolitical instability, climate change and disruptions to commodity markets, Perak was still able to record significant growth.

“In 2022, Perak’s gross domestic product (GDP) was RM80.2bil, achieving a growth rate of 4.3% compared to 3.6% in 2021.

“Perak was also among the states that recorded a high level of implementation, of around 85%, for approved projects.

“As the Mentri Besar, I am grateful because these specific outlines in the Perak Sejahtera 2030 plan to restore and redevelop the post-pandemic economy are increasingly showing positive signs,” he said.

Saarani added that P3 was an effort by the state government to act as a catalyst for economic growth.

“We want to be the state of choice for investors to boost the development of the industrial sector and attract more direct investment to Perak. That’s why we launched the plan.

“The plan will boost economic growth and performance of Perak’s industrial sector until 2030, in line with the aspirations of Miti’s New Industrial Master Plan 2030.

“The plan targets total investments of RM47bil during the 10-year period focusing on high-tech sectors.

“These include electrical and electronic, automotive components and electric vehicles, mineral-based industries, biotechnology, medical devices and related sectors.

“All these have been identified in highlighting Perak as a state that is not only capable of high-tech development, but also developing a skilled workforce that is globally competitive.

“Through this plan, the GDP rate for Perak is targeted to increase to RM123bil by 2030 and the industrial sector is targeted to contribute as much as 25% with a value of RM30.9bil.

“I also hope that the launch of the Perak Industrial Plan will act as a guideline and benchmark for every government agency and department to jointly make efforts to further advance the state’s industrial sector.”

Saarani added that the state government would continue to ensure investment in Perak run smoothly.

“I give the assurance that I will continue to facilitate any investment, including reducing red tape that investors often experience.

“We are using the ‘ease of doing business’ approach as it plays a very important role in ensuring that every approved investment can be implemented promptly for the benefit of the people and at the same time, strengthen Perak’s own economic network,” he added.

Source: The Star

Driving state’s economy forward