As 2024 draws to a close, the trade and investment landscape stands as a testament to Malaysia’s resilience and strategic vision amid global economic uncertainties.

The country’s trade performance in 2024 showcases steady growth, underpinned by its strong export-oriented economy.

International Trade and Industry Ministry and the Malaysia External Trade Development Corporation have played pivotal roles in shaping a year marked by significant achievements and forward-looking initiatives.

Robust and Resilience

According to Matrade, Malaysia’s trade demonstrated robust growth and resilience, marking a significant rebound after a challenging period.

In January, trade surged 13.3 per cent year-on-year (YoY) to RM234.73 billion, driven by a rise in exports and imports.

February maintained positive momentum with trade growing 3.3 per cent YoY to RM211.79 billion, despite a slight dip in exports.

By March, Malaysia achieved its highest historical first-quarter trade value of RM690.59 billion, reflecting a 7.1 per cent YoY increase and a trade surplus of RM34.22 billion.

The upward trajectory persisted into April, with trade expanding 12.1 per cent YoY to RM221.74 billion.

May saw the highest trade value since October 2022, with a 10.3 per cent YoY growth to RM246.31 billion, supported by strong exports of electrical and electronic (E&E) products and palm oil-based agriculture products.

June followed suit, achieving an 8.7 per cent YoY increase to RM237.81 billion, contributing to a first-half trade value of RM1.396 trillion, an 8.4 per cent rise over the corresponding period in 2023.

In the second half of the year, trade continued its growth streak.

July marked the fastest YoY growth rate in 21 months at 18.3 per cent, while August recorded a similar strong performance, with trade increasing 18.6 per cent YoY to RM252.65 billion.

By September, Malaysia’s cumulative trade value for the first nine months reached RM2.13 trillion, reflecting a 10.2 per cent YoY increase, with exports and imports rising by 5.2 per cent and 16.1 per cent, respectively.

The agriculture sector played a significant role in September’s growth, contributing to a 4.7 per cent YoY trade increase.

October reinforced Malaysia’s trade resilience, posting the highest periodic value ever at RM2.38 trillion for the first 10 months, with exports rising by 4.8 per cent YoY and imports by 14.6 per cent.

November continued this robust trend, achieving a record RM2.62 trillion in trade for the first 11 months, an 8.7 per cent increase compared to the same period in 2023.

The month also saw the 11th successive YoY trade growth, with exports rising 4.1 per cent and imports by 1.6 per cent, culminating in a trade surplus of RM15.29 billion, the highest in 14 months.

Investment Trend

Malaysia secured notable investments in the technology and digital sectors in 2024.

On May 30, Google announced plans to invest RM9.4 billion (US$2 billion), including the establishment of its first data center and Google Cloud region in the country.

The initiative aims to address the growing demand for cloud services globally and support artificial intelligence (AI) literacy programs for students and educators.

In September, Google Cloud signed a multi-year partnership with Dagang NeXchange Bhd (DNeX) to deliver sovereign cloud services in Malaysia, complementing its broader investment in the data center and cloud infrastructure.

In October, Oracle revealed plans to invest over US$6.5 billion to launch its first public cloud region in Malaysia, further strengthening the country’s position as a hub for digital innovation.

According to the Malaysian Investment Development Authority (MIDA), Malaysia approved RM254.7 billion of investments for the first nine months of 2024 (9M24), marking a steady 10.7 per cent increase from the previous year.

“The strong performance reflects Malaysia’s sustained economic momentum, propelled by the services, manufacturing, and primary sectors,” the authority said.

A total of 4,753 new projects were approved in 9M24, projected to generate 159,347 new jobs for Malaysians.

Domestic investments dominated during this period, accounting for 58.1 per cent of the total approved investments, valued at RM148 billion.

Meanwhile, foreign investments contributed RM106.7 billion, representing 41.9 per cent of the total.

Selangor led the way with RM66.8 billion in approved investments, followed by Kuala Lumpur (RM63.9 billion), Kedah (RM34 billion), Pulau Pinang (RM22.6 billion), and Johor (RM18.1 billion).

The top five foreign investment sources were Germany (RM30.9 billion), China (RM10.8 billion), the United States (RM8.4 billion), the Netherlands (RM4.9 billion), and Singapore (RM4.4 billion).

Trade and Investment Outlook

MIDF Research expects external trade to continue growing next year, with exports and imports to grow at 4.9 per cent and 4.5 per cent, respectively.

“We still expect the recovery in the E&E trade and increased demand for non-E&E commodities to support export growth in the coming months. Meanwhile, imports will continue to increase in line with growing domestic demand and business activities,” the firm said.

MIDF Research remains cautious that Malaysia’s external trade outlook may be adversely impacted by the escalation in geopolitical conflicts, weaker final demand from major markets and slowdown in global production and trade activities.

“The intensification of trade tensions between US and China (and other regions) and introduction of protectionist policy could also constrain global trade activity next year,” it added.

Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid said the Malaysian economy has had a good momentum in 2024 and this needs to be maintained for 2025.

He said from a domestic perspective, the economy is both growing and stable, supported by the government’s fiscal policies that promote development and the central bank’s monetary measures, including maintaining the overnight policy rate (OPR).

Aimi said the efforts ensure financial market stability and adequate cash flow within the banking system.

“The approved investment approved for 2024 of RM254.7 billion must be executed quickly in 2025 so that it becomes an impetus for the national economy in the government’s efforts to make Malaysia a high-income country as targeted by the Malaysia Madani plan.

“This includes developing the aspect of micro, small and medium enterprises (MSMEs) which contribute 40 per cent of the country’s gross domestic product (GDP) and are employers of 60 per cent of the Malaysian workforce.

“Malaysian MSMEs need to be improved through adopting as many digital aspects as possible in their businesses, using Intelligent Intelligence (AI) and  the Industrial Revolution 4.0 (IR4.0),” he told Business Times.

Aimi added that the government must continue investing on a larger scale in producing skilled and semi-skilled workers through Technical and Vocational Education and Training (TVET).

This is crucial not only for attracting foreign investments and supporting diverse forms of investments but also for raising Malaysian workers’ income levels, paving the way for the nation to achieve high-income status.

“It will also create more scientists and engineers who will be the catalyst for a culture of creativity, especially in the field of research and development (R&D),” he added.

Additionally, he said the value of the ringgit needs to be strengthened especially from being influenced by external macroeconomic factors.

“It needs to be strong, competitive and stable by lifting the country’s economy to a higher level. A stronger ringgit means the ability to absorb higher hikes in imports of food, which Malaysia currently exceeds RM70 billion annually,” Aimi said.

This would help mitigate the impact of rising inflation, particularly in mid-2025, when the government plans to implement targeted subsidies for RON95 petrol prices.

“Such a move will have a broader impact on the purchasing power of the people,” he said.

Source: NST

Robust performance amid global uncertainties

After underperforming against others, the technology sector is expected to attract investor interest in 2025 on improved outlook and more compelling valuations.

Vincent Lau, head of equity sales at Rakuten Trade said the sector is ripe for a recovery underpinned by a softer ringgit, the expansion of artificial intelligence (AI) usage worldwide and the building of more data centres in the country.

“That, together with government initiatives, will have a spillover effect on the tech sector for services and equipment which will aid a recovery in the stocks,” Lau said.

The stronger ringgit had hit earnings of many local tech companies in the third quarter and its softening against the US dollar would help many companies post improved export earnings.

He said he wasn’t particularly worried about a Trump presidency from Jan 20 onwards, believing the tech sector locally could be a net gainer from realignment of supply chains and the China+1 strategy.

China+1 is the strategy to avoid investing only in China and diversify business into other countries, or to channel investments into manufacturing in other promising developing economies such as India, Thailand, Turkey or Vietnam.

Phillip Capital Research said it foresees stronger earnings momentum in 2025 for the bulk of the local tech companies within the electronics manufacturing services (EMS) space, with sector earnings forecast to grow by 69.5% year-on-year as the semiconductor cycle turns.

The research house said it prefers industrial players in the EMS sector over consumer electronics, with the former better positioned to ride the AI boom and being less susceptible to any slowdown in the global economy.

“Investors are positioning for the next semiconductor cycle, with earnings delivery being the key catalyst for further share price reratings.

“The focus is expected to remain on the AI supply chain. We maintain an ‘overweight’ stance, favouring long-term secular trends in data centres, automotive and solar, with a preference for front-end exposures,” the research house said in a recent strategy report.

From a technical standpoint, a technical analyst with a local research house said the tech index appears to have found its bottom at about the 58-point level over September to late November and had started to trend up since early December.

The index hit a year high of 81 points in early June before a selloff of tech stocks globally in July spread to the local exchange, which was made worse by poor second and third quarter numbers by companies in the sector.

Stock wise, shrewd investors now appear to be betting on local companies that have an AI connection where bulk of capital expenditure by titans like Microsoft and Amazon is being spent.

Unsurprisingly, names like Frontken Corp Bhd and Nationgate Holdings Bhd have become sector favourites due to the AI and data centre-related themes, with Frontken for its services supplied to Taiwan Semiconductor Manufacturing Co Ltd, which is a leading AI chip maker, and Nationgate as a potential gainer from the new data centres for AI servers.

“The share prices of these companies are at or near historic highs again while the share price of outsourced semiconductor assembly and test service providers like Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Unisem (M) Bhd, Globetronics Technology Bhd and KESM Industries Bhd have made very small gains as investors want to see an upturn in the conventional semiconductor replenishment cycle before committing to them,” said the analyst.

With some economists warning of a weaker global economy in 2025, the strength of the semiconductor upcycle is another factor to consider, he added.

Source: The Star

Tech sector to benefit from attractive valuation

Malaysia’s ambitious goal of achieving high-income status by 2028 will be contingent on the workforce migrating from its current low-skill status to skilled and high-skilled.

The World Bank defines a high-income nation as one with a gross national income (GNI) of US$14,005. Malaysia’s GNI, while competitive at US$11,997 in 2023, is not among top-tier countries.

A study conducted by Talent Corporation Malaysia Bhd (TalentCorp) highlighted that an alarming 620,000 jobs across 10 key sectors are expected to be impacted by artificial intelligence (AI), digital technology, and the green economy within the next three to five years.

To address the critical gaps in high-growth, high-value (HGHV) sectors caused by a lack of skilled talent, several initiatives have been introduced to ensure these sectors remain competitive and future-ready.

In the 2025 Budget, a record-breaking RM7.5 billion has been earmarked for Technical and Vocational Education and Training (TVET), supporting the National Industrial Master Plan (NIMP) 2030 and the New Semiconductor Strategy (NSS), which aim to drive economic growth, industrial development, and social progress.

SHIFTING GEARS 

Khazanah Research Institute senior research associate Dr Mohd Amirul Rafiq Abu Rahim said the focus on AI education, startup development, and attracting foreign investment is a comprehensive approach that not only prepares workers to confront the rapidly changing labour market, but also creates the necessary ecosystem for long-term growth, specifically in the digital economy.

“Targeting the urban poor, rural communities, and indigenous youth will equip our most vulnerable populations to thrive in an ever-evolving economy.

“Additionally, greater investments in the business ecosystem are driving innovation and resilience in key industries.

“Together, these initiatives mark a decisive step towards raising the floor for both individuals and businesses, ensuring sustainable and equitable progress for Malaysia,” he told Business Times.

However, Amirul noted that to create a more inclusive and effective skills development strategy, the budget should address key gaps such as regional disparities in access to training, the need for robust measures in identifying industry-specific upskilling, strengthening public-private partnerships, and improving soft skills development.

He said future-ready workforce can be shaped by targeting rural areas with mobile training centres, improving internet and digital connectivity, customising programmes to meet sector-specific needs, and incentivising private sector involvement through co-developed apprenticeship models.

“Additionally, fostering a forward-thinking of lifelong learning, integrating soft skills, and improving the tracking and transparency of training funds, allocated to key segment of training programmes which support the current and future industrial needs, will help ensure that workforce development is equitable, responsive to labour market demands, and inclusive of vulnerable groups like youth, women, older workers, and persons with disabilities,” he said.

Amirul said Malaysia can learn from other countries that already have their own strategies in skills development to align the workforce training with industry needs. 

For example, Germany emphasises integrated practical and theoretical training for long-term employability, while Singapore invests in lifelong learning with a focus on high-growth sectors, and Australia targets immediate workforce recovery and skills for employability in response to economic challenges. 

“These models collectively demonstrate the importance of tailored strategies, multi-stakeholder engagement, and adaptability in maximising the impact of skills development investments,” he added.

Institute for Democracy and Economic Affairs (IDEAS) Malaysia economist and assistant research manager Doris Liew said that while many initiatives for TVET are geared toward HGHV sectors, low-skilled workers remain underserved.

This is due to a lack of access to information about training opportunities or pathways to gain knowledge and acquire specialised skills, limiting their chances to join the high-value economy.

“To address this disparity, targeted programmes should be developed such as creating accessible training opportunities tailored to their educational background and job experience.

“This could provide clear pathways to bridge knowledge gaps and advance toward higher productivity roles, while establishing partnerships with employers to ensure that training aligns with real-world job requirements,” she added.

Liew said raising the minimum wage is helpful in improving income levels but it does little to address the core issue of productivity as the workforce must also be prepared for future shifts in industrial demand.

“Lifelong learning must be a central tenet to Malaysia’s workforce development strategy, with programmes that empower individuals to continuously reskill and upskill to remain competitive in a fast-changing global economy,” she said.

Universiti Malaysia (UM) Social Wellbeing Research Centre research fellow Dr Zulkiply Omar said the private sector needs to be more proactive working with TVET to support the initiatives, particularly in creating a win-win situation.

He also suggested that the private sector should be granted an incentive to train and upgrade their technologies.

“In our case, most students have to find an internship opportunity, but this should change. The private sector must be more proactive in recruiting talented students for internships and eventually absorbing them as full-time employees,” he added.

PRIVATE SECTOR’S GAMEPLAN

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the industry has undertaken some key initiatives, which include collaborating with skills development institutions like the Penang Skills Development Centre (PSDC), German-Malaysian Institute, Japan-Malaysia Technical Institute and polytechnics.

He said the partnership provides targeted training in semiconductor fields, such as advanced manufacturing and process technology; design and engineering skills; automation and Industry 4.0 integration; quality control and testing; data analytics and digital skills, among others.

He stated that the semiconductor players also actively engage in initiatives such as the National Dual Training System (NDTS), including apprenticeship and internship programmes to ensure workers gain both theoretical and on-the job skills.

Given the shift towards automation and digitalisation, along with the recognition of the need for inclusive growth to prevent displacement of low-skilled workers, Soh said companies are focusing on creating job opportunities for these workers through reskilling and cross-training initiatives to help them transition into higher-value roles.

“Additionally, on-the-job training provides them with continuous learning opportunities that help build their competencies in new fields and areas the company has started to adopt.

“Partnerships with universities and TVET institutions on micro-credentials and certification programmes are another option employers can pursue to enable their low-skilled workers progress and grow within the organization,” he added.

Soh stated that industries are increasing their efforts to collaborate with TVET and other higher institutions to be part of training process, aiming to enhance students’ employability and provide industries with skilled workers who possess relevant skills and industry exposure, allowing them to be quickly absorbed into the workforce through initiatives such as the Academy in Industry, as well as internship and apprenticeship programmes.

Source: NST

Getting the Malaysian workforce high-income ready

Prime Minister Datuk Seri Anwar Ibrahim highlighted that his official visits abroad, as well as the visits of world dignitaries to Malaysia this year, have significantly strengthened diplomatic ties, boosted investments, and enhanced the country’s global standing.

He said that Malaysia is now regarded as a respected strategic partner, gaining recognition from leaders of major powers for its active role in championing global issues, especially supporting justice for the Palestinian people and its advocacy for a more just and balanced world order.

“By 2025, Malaysia is poised to lead ASEAN into a new era that is more inclusive and sustainable,“ said Anwar.

“With the strong support of the international community, we enter the new year with full confidence to drive shared prosperity,” he said in a Facebook post today.

In the video uploaded with the post, the Prime Minister reflected on his official visits abroad in 2024, including destinations such as Singapore, Brunei, Indonesia, China, Australia, Russia, Germany, Qatar, Saudi Arabia, Uzbekistan, Japan, India, Peru and Brazil.

These visits generated a potential investment of RM115.2 billion (US$25.2 billion), with key investments from Germany (RM46 billion), South Korea (RM32.8 billion), Australia (RM24.5 billion), Japan (RM1.45 billion), and India (RM4.8 billion).

Furthermore, Malaysia welcomed 35 official visits and courtesy calls from foreign dignitaries, including representatives from Cambodia, Argentina, China, Kyrgyzstan, Egypt, and Bahrain.

Source: NST

2024: Malaysia makes strides on global stage – PM Anwar

Malaysia-china cooperation drives regional growth via Kuantan Port and ECRL

AS MALAYSIA and China celebrate 50 years of diplomatic relations this year, their partnership continues to yield tangible benefits, especially in infrastructure development.

At the heart of this cooperation is the Malaysia-china Kuantan Industrial Park (MCKIP), a strategic hub supported by the East Coast Rail Link (ECRL) and Kuantan Port.

Together, these initiatives are driving regional economic growth, fostering trade, and reinforcing Malaysia’s role in Southeast Asia’s trade network.

Towards regional prosperity

The East Coast Rail Link (ECRL), set to commence operations in 2027, will establish a vital land-sea bridge connecting Port Klang to Kuantan Port, traversing Selangor, Johor, Pahang and Kelantan.

Spanning 665km, this link is expected to reduce logistics times, lower transport costs, and boost efficiency for container and bulk cargo movements.

One of these developments is the 3,500-acre Malaysia-china Kuantan Industrial Park (MCKIP), developed in 2013 as a sister project to the China-malaysia Qinzhou Industrial Park (CMQIP) in China.

Both parks introduced a new model of international cooperation, known as the “Two Countries, Twin Parks” concept, as part of China’s Belt and Road Initiative (BRI) to promote cross-border production capacity cooperation.

This industrial partnership has facilitated trade flows between Malaysia and China, with goods moving seamlessly from MCKIP to Kuantan Port – located just 12 km away – and onward to Qinzhou Port.

The sea journey spans 1,104 nautical miles (2,045 km) and takes just four to five days.

With its proximity to the ECRL and Kuantan Port, MCKIP strengthens Malaysia’s position in global supply chains, enabling direct trade linkages with China, South-east Asia and beyond.

Port of call

Established in 1974 under the Kuantan Port Authority, Kuantan Port commenced operations in 1984 primarily serving the hinterland regions of Malaysia’s East Coast. Strategically located along the South China Sea, Kuantan Port lies along key maritime trade routes, enhancing its connectivity and accessibility within regional and global supply chains.

In 1998, the port was privatised, leading to the formation of Kuantan Port Consortium Sdn Bhd, with Road Builder Holdings Bhd, which eventually merged with IJM in 2008.

Since 2013, China’s Guangxi Beibu Gulf International Port Group has held a 40% stake, with IJM retaining the remaining 60%.

This partnership reflects the deepening economic cooperation between Malaysia and China, as well as strategic alignment with the BRI.

Expansion plans were initiated in 2013, leading to the development of two distinct areas: the original Kuantan Port 1, which has a maximum draught of 11.2 meters and accommodates vessels up to 55,000 deadweight tonnes (DWT), and the New Deep-water Terminal (NDWT).

The NDWT’S Phase 1A was completed and commenced in 2018, with a draught of 16.5m, enabling it to handle larger vessels with capacities of up to 180,000 DWT, while Phase 1B followed suit the following year.

Phase 2 is slated to complete by Dec 2039.

Today, Kuantan Port is recognised as Malaysia’s largest bulk cargo terminal operator, with bulk cargo accounting for 90% of its cargo mix.

Its proximity to oil and gas as well as petrochemical production facilities allows it to specialise in handling liquid cargo and hazardous materials, supporting Malaysia’s oil and gas sector.

Strategic location

MCKIP’S potential has attracted several international companies, which is projected to create about 20,000 long-term jobs and will increase Kuantan Port’s annual throughput capacity by over 15 million tonnes upon completion.

Alliance Steel is the park’s flagship investor, operating Malaysia’s largest steel production facility with an annual capacity of 3.5 million tonnes.

The company’s Rm5.6bil investment spans 710 acres, with plans for further expansion in MCKIP 1, where it has secured an additional 305 acres for further investment valued at Rm7bil.

Other key investors include Maxtrek Tyre Manufacturing, which has invested Rm1bil in a 174-acre facility, and Jianhui Paper, which aims to produce 2.4 million tonnes of paper pulp annually.

The industrial base also features IJM’S Industrial Concrete Products, which manufactures concrete spun piles and Camel Power Malaysia, a key producer and distributor of automotive batteries, further broadening the park’s economic footprint and capacity for industrial development.

In 2023, the Malaysia-china Kuantan International Logistics Park (MCKILP) was launched within MCKIP 3 as a 640-acre integrated logistics and mixeduse development.

Developed through a joint venture between China Harbour Engineering Company Ltd (CHEC), IJM and Guangxi Beibu Gulf International Port Group, MCKILP features light and medium industrial zones, logistics and warehousing facilities, as well as residential and commercial components, positioning it as a key industrial and logistics hub in the East Coast Economic Region (ECER).

These investments highlight MCKIP’S role as a beneficiary of the BRI’S industrial cooperation strategy, promoting sustainable development and reinforcing China’s commitment to co-developing production capacity with its trading partners.

Benefits of ECRL link

The ECRL, with two spur lines leading directly into Kuantan Port will potentially be a game changer for Malaysia’s logistics landscape.

This direct rail link will provide a fast, cost-efficient route for container cargo between the East and West coasts, strengthening Malaysia’s position as a trade and logistics hub.

By connecting Port Klang, MCKIP and Kuantan Port, the ECRL enables smoother trade flows, boosts cargo throughput, and attracts container liners, opening new trade routes to China and other key export markets.

To prepare for the ECRL’S arrival, Kuantan Port is expanding its container operations, investing in critical equipment and optimising scheduling processes to improve operational efficiency.

The port is also working with logistics partners to develop end-to-end solutions for cargo movement, including freight forwarding, warehousing and last-mile delivery.

These efforts will ensure that Malaysia’s East Coast becomes a vital link in global trade routes, particularly in China-asean trade.

This connectivity reinforces the BRI’S goal of improving regional and global logistics networks and catalysing new economic growth in the area.

Source: The Star

Boosting economics in the East Coast

With trade and economic relations between Malaysia and China set to further flourish in the coming year, the private sectors on both sides are preparing ahead of the anticipated boom.

With the number of Chinese companies eyeing Malaysia for investments on the rise, a legal framework agreement signed between two law firms from both sides will give things a boost.

The Beijing Celue law firm, reputed to be one of China’s largest legal outfits, inked the cooperation agreement with Malaysian legal firm Ang & Wong Advocates & Solicitors (AW-Legal) in Guangzhou recently.

The collaboration aims to bridge gaps in legal systems, streamline investment processes and offer end-to-end solutions for businesses navigating Malaysia’s regulatory landscape.

The signing marked the first time that Celue established a partnership with an overseas legal institution, serving as a key step in the firm’s expansion into international markets, particularly in countries and regions involved in the Belt and Road Initiative (BRI).

Present to witness the signing was the Acting Investment Consul of the Malaysian consulate-general in Guangzhou, Safwan Nizar Johari, who is also acting director of the Malaysia Investment Development Authority.

He said he expected the next two years to hit the peak in China-Malaysia trade relations, with the 50th anniversary of diplomatic relations between both countries in 2024 seeing significant achievements.

Safwan Nizar said the legal agreement would help facilitate Chinese investments into Malaysia and assist with strategic planning and policy advocacy.

Welcoming Chinese investors, he highlighted Malaysia’s position as a top choice for foreign investments.

Quoting the 2024 Milken Institute Global Opportunity Index, he said: “Malaysia ranks as the country with the best overall investment conditions among Asia’s emerging and developing nations.

“This recognition highlights our robust policies, strong fundamentals and investor-friendly environment.”

Safwan Nizar also emphasised the role of Investment Guarantee Agreements which Malaysia has signed with more than 60 countries.

“These agreements ensure that foreign investors are protected, fostering confidence and providing a secure platform for businesses to grow and thrive,” he added.

Representing the law firms concerned were Chen Zhen, director of the Celue Guangzhou Management Committee, and Alicia Wong, founding partner of AW-Legal.

Chen Zhen said the legal profession played an important role in providing legal safeguards for the BRI.

“This collaboration between the two law firms is a direct response to the initiative, aiming to provide high-quality legal services to the countries and regions involved,” he added in his remarks.

He said both law firms would continue to adhere to the “client first” service philosophy, focusing on providing tailored legal solutions.

“In the future, we look forward to deepening cooperation with AW-Legal in areas such as cross-border investment, international trade and intellectual property protection, and jointly enhance service quality to create greater value for our clients,” he added.

In her address, Wong said both firms would work closely together to help Chinese businesses wanting to expand to Malaysia, for mutual benefit and the advancement of business and legal cooperation between the two countries.

“This deal reflects our shared vision to create a seamless pathway for Chinese investors entering Malaysia.

“Malaysia offers unparalleled opportunities with its strategic location, diverse economy and investor-friendly ecosystem.

“By combining our expertise with Celue, we are not just providing legal solutions but fostering confidence, reducing complexities and creating a platform to empower businesses to thrive,” she added.

The event also received support from the China-Malaysia Friendship Association.

“This collaboration between AW-Legal and Celue represents more than a legal agreement – it signifies the deep trust and cooperation between Malaysia and China,” said a representative from the association.

Prominent business leaders and legal experts also attended the event.

Source: The Star

Malaysian and China law firms to bridge gaps in legal systems

Malaysia is doubling down on technology to drive economic growth and establish itself as a regional tech hub. Through strategic investments in digital infrastructure and forward-looking policies, the government aims to enhance digital capabilities and secure the nation’s position in the competitive global economy.

A key initiative is the RM50 million allocation in Budget 2025 to expand artificial intelligence (AI) education across research universities, underscoring the government’s commitment to fostering innovation. Industry experts highlight the importance of a coordinated, cross-sectoral approach to overcoming uncertainties and harnessing the full potential of advancements in AI, advanced computing and connected technologies.

Future readiness relies on improving current technologies while paving the way for emerging innovations such as autonomous vehicles and advanced computing, says Rosihan Zain, CEO of Futurise Sdn Bhd. This requires strategic planning to build an ecosystem equipped to harness these advancements, including developing infrastructure and implementing strong regulatory frameworks. Futurise, a subsidiary of MOF Inc-owned Cyberview Sdn Bhd, has been tasked with driving regulatory reform, deploying technological innovations, and fostering new ecosystems through the National Regulatory Sandbox.

“The country needs to elevate itself and be on par according to innovative practices that are prevalent in the world. If [the country] prepares for emerging technologies and has the right frameworks and established ecosystems to receive it, it’s akin to preparing the house before the residents move in,” says Rosihan.

Achieving this will need streamlined coordination among government agencies to ensure their efforts are distinct yet complementary, he says. There has to be a clear and ambitious vision to guide these agencies to establish a technological and innovation footprint.

More importantly, this vision must move beyond aspirations, grounded in a clear understanding of strengths and the challenges that need to be addressed, says Prashant Kumar, a leading AI, customer and brand expert, as well as an independent director on Astro’s board of directors. A well-crafted approach should focus on identifying and prioritising areas where there is a distinct competitive advantage.

“I would say a vision is easy but a smart vision is difficult. To truly [identify] the country’s strength, capabilities and unique characteristics [while] understanding the evolving global technology ecosystem and where the gaps are to be the best in class globally in certain clusters, takes a lot of strategic thinking. That is the crux of a great vision for the country,” he says.

Countries such as South Korea serve as inspiration, having successfully exported their technology, innovation, and culture, says Rosihan. Embracing a similar mindset with a focus on a long-term vision is crucial for achieving success in the journey toward becoming a technology and innovation hub. “Before leading to the grand vision for innovation, we need to understand why we’re doing it and what we are trying to achieve.”

Building on existing strengths

Malaysia’s unique advantages position it to become a key player in the global technology landscape, says Prashant. The focus should be on areas where it can lead, rather than spreading resources across multiple emerging technologies.

“I think being precision-focused on our competitive advantages is the [priority] … We are lucky because we already have a chip industry with deep strengths in consumer electronics and semiconductors. If you look at the biggest beneficiaries of the AI wave, they are the [countries that have] chip and cloud [industries]. We have a competitive advantage in both,” says Prashant.

“It is not the strongest or most intelligent of the species who survive; it’s the one that is most adaptable to change. Those who adapt will be winners; those who don’t will be losers. This applies to countries, individuals and companies.”

With strengths in oil and gas, biotechnology and semiconductors, how can Malaysia leverage these advantages?

“To be a global leader, we need to find areas where we can be a disruptor or a market leader. We have very established industries in terms of palm oil, oil and gas, semiconductors and other commodities. All these [industries] are actually ripe for advancement and innovations that can be offered, not just within our country, but throughout the region and abroad,” says Norman Matthieu Vanhaecke, group CEO of Cradle Fund Sdn Bhd.

“We have to [move] with the pack or even be ahead of the pack. [When] I hear of developments of new tech areas, I think Malaysia can be really early to the scene, or even lead these kinds of things. [For example], there has been a lot of talk about setting up a space launching platform. Imagine if [we] can start developing a space tech industry.”

Malaysia is already leveraging its abundant resources to establish itself as a major data centre hub. In fact, RM99 billion in data centre investments have been announced in the last two years, with another RM147 billion in the pipeline, according to data from Malaysia Digital Economy Corporation.

The government has also launched the National Semiconductor Strategy, which aims to position the country as a global leader in semiconductor research and development (R&D) and manufacturing. The three-phase plan targets RM500 billion in investments, the development of 10 leading local semiconductor companies and the cultivation of 60,000 skilled engineers by 2030.

As global competition in the semiconductor industry continues to intensify, the challenge is to go beyond maintaining relevance and becoming a leader in the space, says Jaffri Ibrahim, CEO of Collaborative Research in Engineering, Science and Technology (CREST). This means the country needs to develop an environment that allows it to effectively replicate global innovations while enhancing existing technologies and pioneering novel products and solutions.

“The question for Malaysia is, how do we keep ourselves relevant and at the forefront of the semiconductor space. When you master two fronts, which is semiconductors and software, the world is [our] oyster,” he adds.

Essentially, the electrical & electronics (E&E) industry needs to move up the value chain, shifting from outsourced semiconductor assembly and testing to higher-value activities like integrated circuit design.

Nevertheless, the country’s strong presence in semiconductors positions it well to ride the AI wave, notes Prashant.

Going beyond comfort zone

Malaysia, traditionally a consumer of external technologies, must pivot toward developing home-grown innovations, asserts Jaffri. Building intellectual property (IP) and investing in R&D should be central to this shift. Government support is essential to provide local companies with the tools and infrastructure needed to compete on a global scale.

“In the past, we [didn’t] own our own IPs or our own technologies; we were more subservient to other people’s IPs and technologies. We’re a consumer society. We are basically waiting for someone to create something before we make it in manufacturing and then utilise it. R&D allows us to be able to have control over creating our own products and services. In my view, that will be the name of the game for any society to progress to the next stage,” he says.

Creating original technologies and building on existing strengths in industries such as semiconductors and biotechnology will drive economic growth and create job opportunities, adds Prashant.

But our collective aversion to risk across sectors is a significant roadblock, says Rosihan. Currently, the country tends to focus on adopting and consuming foreign technologies rather than creating its own. A shift in mindset needs to happen to develop technologies that can go on to make an impact globally.

“When we think about innovation and technology, [we have to understand that it comes with] challenges and [part of the process] is planning for it but [knowing that] sometimes even the best plans fail. If there is a willingness to continue and not retreat, something will happen in a big way,” adds Rosihan.

Developing and commercialising new technologies take time, he acknowledges. While foundational technologies may not be developed immediately, an ecosystem must be in place to adapt to and capitalise on emerging innovations.

Strategic acquisitions of promising foreign technologies can bridge this gap, providing access to cutting-edge solutions and expertise for effective implementation. These proven systems offer a foundation to build on.

To stay competitive, gaps in acquired technologies must be identified and addressed. Investments in commercialisation infrastructure, access to funding and partnerships among industry, academia and the government are essential to drive long-term innovation.

“When you acquire technology that’s already out there, you’re also acquiring the skill sets, talent, company, networking and market share. You’re actually shortcutting the process. But, there must be a follow-up to quickly capitalise on that acquired knowledge before it becomes outdated,” says Rosihan.

Public-private partnerships are also key to driving innovation, says Jaffri. These partnerships can accelerate the development and commercialisation of technologies by jointly funding R&D initiatives while sharing the risks.

“When we attract new investments, not only do we want them to come in and set up in Malaysia, but we also want them to come in and open up the technologies to Malaysian companies and universities,” he adds.

For this to happen, companies should collaborate with local businesses and academic institutions to foster technology and knowledge transfer, benefiting both foreign investors and local stakeholders. These partnerships will enhance domestic capabilities, supporting industries while positioning the country as a hub for innovation and advanced technology.

Emulating India’s success with global capability centres (GCCs) could be another strategy, says Prashant. GCCs, offshore units of multinational corporations, can evolve from outsourcing hubs into innovation centres, driving original designs and breakthroughs in areas such as semiconductors and AI. Leveraging global talent and technological advancements, GCCs develop scalable solutions for global markets.

Apart from that, encouraging and incentivising local companies to participate in large-scale national projects is essential, says John Lim Ji Xiong, group chief digital officer at Gamuda Bhd. This approach enables corporations to invest in R&D and generate greater value.

National-scale projects, which are supported by local talent and companies, provide a platform to demonstrate Malaysia’s capabilities to the world. For example, the autonomous tunnel boring machine (A-TBM) is a Malaysian engineered innovation that is now exported worldwide.

In 2019, Gamuda introduced the world’s first A-TBM, powered by proprietary AI algorithms. This innovation enables precise navigation through geological formations with minimal human input, and was first deployed for the MRT Putrajaya Line.

“The government and national-­scale projects create a catalyst for local participation and skills building in partnership with global tech giants. Together with the private sector, Malaysia can ride the growth of the AI wave, underpinned by long term opportunities producing a strong local talent pool. Bold moves in building a strong digital ecosystem through adoption of secure AI and cloud [technology] will propel the nation forward in our pursuit of becoming a high income nation,” says Lim.

Meanwhile, universities require support in terms of funding for research, structured partnerships with industries and talent development programmes, says Erma Rahayu, head of the Department of AI at the University of Malaya. This is because universities are pivotal to producing industry-ready talent and conducting research.

For instance, the department is collaborating with Alto AI and Zhipu AI to develop a Malay large language model. The department also aims to advance healthcare with AI-driven solutions.

“We need to have greater collaboration between academia, industry and government, which is critical in terms of aligning our research with real-world challenges and to ensure innovation is impactful and scalable. We need the government to support us by increasing investment in AI labs, advanced computational tools and funding in multidisciplinary projects. We also need to have more structured partnerships with industries to ensure our research addresses real-world needs,” she says.

Ultimately, adoption is crucial for technology to drive innovation, says Afnizanfaizal Abdullah, head of innovation commercialisation at Malaysian Research Accelerator for Technology & Innovation (MRANTI). It creates a feedback loop where data, experience and refinement enhance tools and methods, which is particularly evident in AI and data analytics, he adds.

“While technology adoption promises immense benefits, businesses here face several key challenges, [which are] often rooted in cost, infrastructure and a shortage of digital skills. One of the most significant barriers is the financial investments required,” says Afnizanfaizal.

Organisations that adopt these technologies early and strategically integrate them find themselves with competitive advantages, as they can operate more efficiently, capture more insights and pivot faster in response to market demands, he adds. Yet, many small and medium enterprises (SMEs) lack the resources and technical knowledge to adopt technologies.

“Initiatives like the Domestic Investment Coordination Platform (DICP), which connects SMEs to essential funding and resources, and collaborations with MRANTI, which offers start-ups access to innovation sandboxes and mentorship, are central to this mission. These programmes are turning big ideas into tangible realities, positioning Malaysia as a global hub for technological excellence,” says Malaysian Investment Development Authority CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.

There is also a need to support early-stage start-ups to ensure long-term value creation, says Victor Chua, managing partner at Vynn Capital, a Southeast Asia-focused early-stage venture capital firm. Early-stage start-ups are crucial for Malaysia’s digital future as they provide a foundation for nurturing the next generation of entrepreneurs, fostering innovation and establishing a digital ecosystem.

Start-ups that differentiate themselves by identifying and addressing real-world challenges are more likely to be successful. However, they require funding to develop their products, hire talents and scale operations. Gaining market validation is also crucial.

Toward this end, MRANTI aims to accelerate the growth of start-ups through programmes and initiatives such as the National Technology and Innovation Sandbox, Global Market Fit Programme and the AI Sandbox Pilot Programme.

Talent: The beating heart for innovation

The country must begin to adopt a culture that supports local innovations by encouraging risk-taking and embracing failure as a part of the process, says Jaffri. There needs to be a cultural shift to giving greater recognition to inventors and innovators.

To do this, talent development must be a top priority, says Matt Van Leeuwen, chief innovation officer of Sunway Group. Additionally, the workforce must be empowered with digital skills through initiatives like coding academies and industry-focused training programmes.

This is why Sunway iLabs has committed to fostering a strong foundation in digital skills and critical competencies such as data literacy. The innovation arm of Sunway Group also focuses on developing soft skills such as problem solving and leadership.

An example of Sunway iLab’s initiatives to nurture digital talent is the 42 Malaysia coding school, which was established through a collaboration between Sunway Education Group, Khazanah’s Dana Impak, MDEC and the 42 network of coding schools.

“This tuition-free, peer-to-peer coding school offers a unique learning experience, focusing on project-based learning with no traditional teachers or classes. By providing students with the flexibility to learn at their own pace, 42 Malaysia [coding school] encourages them to develop critical thinking, resilience and the ability to adapt skills that are vital for thriving in an AI-driven world. This school is part of our broader effort to close the digital skills gap in Malaysia and prepare future innovators for the demands of the Fourth Industrial Revolution,” says Van Leeuwen.

Gamuda is future-proofing the workforce through initiatives like the Gamuda AI Academy, which trains 50 students per batch in full-stack AI. Open to individuals aged 21 to 30 with Python and JavaScript proficiency, the programme focuses on back-end and front-end development. Additionally, Gamuda’s Data Hero Programme equips employees across disciplines with skills in digitalisation and data management.

“The Gamuda AI Academy was created as a way to solve problems for ourselves, but [we decided] to do it for the country as well. [This is] in partnership with Google Cloud. The Gamuda AI Academy is open to all, and Gamuda pays all the fees. [It’s a way to make sure that we] as a corporation [are doing our part in building] engineering talent for the country,” says Lim.

Moving forward, it is essential to invest in digital infrastructure to bridge the connectivity gap between urban and rural areas to ensure equitable access to technology, says Van Leeuwen. This is because a well-connected population can unlock broader participation in digital transformation efforts.

“While Malaysia has made significant strides in improving connectivity, mainly through initiatives like the National Digital Network Plan, there are still gaps in rural and underserved areas. Limited internet access restricts the adoption of digital solutions in these regions, impacting businesses’ growth potential. Furthermore, adopting advanced technologies such as AI or IoT (Internet of Things) requires robust infrastructure, which smaller enterprises may lack,” says Afnizanfaizal.

Source: The Edge Malaysia

Building tomorrow, today

The Sipitang Oil and Gas Industrial Park (SOGIP), which has secured investments totalling about RM29.87 billion, is expected to begin operations in 2026 and 2027, said Chief Minister Datuk Seri Hajiji Noor.

He said the investments include those from Esteel for a green steel plant with a phased investment value of RM20 billion, and from Petroliam Nasional Bhd (Petronas) for the development of a floating liquefied natural gas (LNG) facility with an investment value of RM8.8 billion.

Other investments include RM1 billion from E-Concern Sdn Bhd for waste management, and RM70 million from Tex Evolosi Waste Management Sdn Bhd.

“All the companies I mentioned will start operations in 2026 and 2027. These investments will create job opportunities starting from the construction phase and during operations.

“Certainly, the residents of Sipitang and the surrounding areas will benefit in various economic sectors,” he said in his speech at the official launch of the Arts, Culture, Tourism, and Traditional Food Carnival in conjunction with the Sabah Kadayan Annual Food Festival 2024 in Sipitang today.

The text of his speech was read by State Science, Technology, and Innovation Minister Datuk Arifin Mohd Arif.

Hajiji said both foreign and domestic investors remain confident in the state administration, which has a clear direction, and their confidence is evident through investments totalling RM1.7 billion this year.

Meanwhile, he said the tourism industry in Sipitang needs to be strengthened to generate economic and employment benefits, given the district’s strategic location, close to neighbouring countries like Brunei and Kalimantan, besides Sarawak and Labuan.

“The government also consistently supports traditional festivals such as the Ethnic Kadayan Food Festival and wants it to continue regularly to foster unity,” he said.

Source: Bernama

High-impact investments in SOGIP expected to begin operations in 2026-2027 – Hajiji

The Netherlands, Hong Kong and Japan are the top three foreign investors in Melaka, said Chief Minister Datuk Seri Ab Rauf Yusoh.

He said the Netherlands had invested RM8.4 billion, creating 2,505 job opportunities, while Hong Kong invested RM1.7 billion (1,230 jobs), and Japan invested RM1.296 billion (7,359 jobs).

Ab Rauf also said that the electrical and electronics sector topped the investment list with a value of RM11.975 billion (generating 8,192 jobs), followed by non-metallic mineral projects amounting to RM1.840 billion (1,276 jobs), and machinery and equipment investments totalling RM1.671 billion (1,194 jobs).

“The Melaka government is committed to increasing investments in these sectors by exploring high-tech industrial development opportunities based on the principles of ESG (environmental, social and governance).

“Key initiatives include the development of new industrial areas, such as the MCorp Hi-Tech Park and the German Technology Park, to cater to investors’ growing focus on sustainable technology and innovation,” he said during the state assembly at Seri Negeri on Friday.

He was responding to a question from Datuk Zaidi Attan (Barisan Nasional-Serkam) regarding the top countries investing in Melaka, the sectors with high investments, and the number of jobs created.

Ab Rauf further said that the state aims to attract investors seeking modern infrastructure, a skilled workforce and sustainable development strategies.

He said this aligns with the state government’s efforts to boost Melaka’s competitiveness as an investment destination, especially in manufacturing sectors such as electrical and electronics, semiconductors, machining and equipment.

In addition, he said the state government had taken proactive steps to ensure an adequate supply of skilled workers, including establishing the Melaka TVET Council on Oct 29, 2022, to strengthen collaboration between industries and technical and vocational education and training (TVET) institutions.

“This council aims to address workforce gaps, and ensure that skills taught in TVET institutions align with current and industrial needs,” he said.

Source: Bernama

Melaka getting strong investment from Netherlands, Hong Kong and Japan, says CM

Selangor remained the top destination for investments so far this year, as the state drew in RM66.8 billion in approved investments.

A total of 1,371 projects were approved comprising 253 manufacturing projects and 1,116 in the services sector, according to Invest Selangor. The projects are expected to create more than 50,000 potential job opportunities in the state, the state government promotion agency said.

The planned investments showcase Selangor’s industrial ecosystem vibrancy, cutting-edge technological capabilities, and its competitive strengths in the manufacturing and services sectors, said Ng Sze Han, the state’s executive councillor for investment, trade and mobility.

“The future looks bright for Selangor, and we hope the upwards momentum will continue and yield positive full-year results for 2024,” he added.

The total approved investments were an increase of 59% from RM42.1 billion recorded during the same January-September period in 2023, according to the Malaysian Investment Development Authority (Mida).

Most of the investments went into the services sector, followed by manufacturing and the primary sector of the economy, a segment that typically covers raw commodity production and extraction such as mining and plantation.

The services sector remained the key driver of Selangor’s investment performance, with major contributions from sub-sectors such as information and communications, real estate, support services, transport services, and distributive trade.

In the manufacturing sector, investments were driven by electrical and electronics, transport equipment, fabricated metal products, non-metallic mineral products, and machinery equipment. “This underscores the manufacturing sector’s resilience and continued growth,” Invest Selangor noted.

Domestic investments accounted for more than one-third of the total. The US was the top contributor of foreign investments in Selangor, pouring in RM4.8 billion, followed by Singapore, China, Japan and Germany.

Source: The Edge Malaysia

Selangor top destination for investments, draws in RM66.8b in January to September