The Sarawak state government has approved RM31.8 billion in foreign direct investments (FDI) for high technology industries such as the electrical and electronics, chemicals and green metal sectors from 2019 to 2023.

State Deputy International Trade, Industry and. Investment Minister Datuk Malcolm Mussen Lamoh said 10 investment projects totalling RM9.3 billion had been implemented.

“The high technology industry projects implemented totalled RM9.3 billion, comprising five electrical and electronics projects, three chemical projects and two green metal projects.

“The state government is also working with the federal government to develop Sarawak as aerospace and semiconductor hubs,” he told the Sarawak State Assembly in today’s question-and-answer session.

Mussen was responding to a question from Razaili Gapor (GPS-Beting Maro) on the status of the high-technology industry FDI received by Sarawak.

Mussen said that the state government is developing the Sarawak Investment Policy to shape the strategy and action plan to improve the state’s attraction as an investment destination of choice and support the high-technology industry.

“The state government is also encouraging strategic cooperation with technical institutions, research centres, higher education institutions and specialised industries such as semiconductors and aerospace to spur innovation and technology development,” he added.

Source: Bernama

Sarawak approved FDI worth RM31.8 bln for high-technology industry from 2019-2023

Malaysia’s welcoming business environment with supportive policies and favourable climate for foreign businesses are among the key factors drawing Chinese companies to establish operations in the country, according to the China Enterprises Chamber of Commerce in Malaysia (CECCM).

CECCM president Ni Qingjiu highlighted that as the two nations celebrate 50 years of diplomatic ties this year, the organisation has observed more opportunities for its member companies to expand in Malaysia.

“This strong partnership has led to a deeper collaboration in key industries like construction, technology and sustainable energy.

“Looking ahead, I see some promising areas where Chinese and Malaysian businesses can collaborate, especially around new technologies and sustainability,” he told Bernama in a recent exclusive interview in conjunction with the upcoming Malaysia-China Summit (MCS) 2024.

The event will be held on Dec 17-19, 2024 at the Malaysia International Trade and Exhibition Centre.

Ni said the CECCM plays an important role in guiding its 348 member companies through local regulations and helping them connect with Malaysian industries.

“CECCM is actively engaging with local authorities to find solutions, and this kind of support makes it easier for them to operate smoothly and build trust in the local business community,” he noted.

Malaysia-China notable partnerships

Ni cited several significant partnerships between Malaysian and Chinese firms, including the collaboration between China’s Geely and Malaysia’s Proton which brought in fresh investments and technology that helped the national carmaker to re-enter the regional market with new models.

“This partnership was mutually beneficial – a win-win situation as Geely gained a foothold in the Asean market while Proton gained advanced automotive technology,” he said.

Other notable cooperation between Malaysian and Chinese companies includes the development of the East Coast Rail Link (ECRL), a mega project under the Belt and Road Initiative involving the China Communications Construction Company (CCCC) and Malaysia Rail Link Sdn Bhd (MRL).

“The project has brought significant investments to Malaysia and created many local jobs, with Malaysian companies contributing to construction and services,” Ni said.

He added that there will be more opportunities for enhanced cooperation for companies in both nations, especially in areas such as the Electric Vehicle (EV) and relevant infrastructure, green technology and renewable energy, advanced manufacturing as well as digital and artificial intelligence-driven technologies.

Malaysia-China Summit 2024 promotes enhanced collaboration

According to Ni, the MCS 2024 is a platform that will offer expanded opportunities for Malaysia and China to strengthen economic, trade, investment as well as cultural ties.

“The summit will serve as a dynamic platform for businesses from both countries to collaborate, explore new trade opportunities, and embrace innovation,” he said.

He added that the MCS 2024 provides a valuable opportunity for business leaders to connect, form partnerships and support the economic growth of both nations, he said.

Ni will be one of the speakers at the MCS 2024 Leadership Conference panel session, which will focus on significant development projects in Malaysia that involve companies from China.

These projects are acting as catalysts for growth in both countries.

“As a strategic partner for MCS 2024, CECCM member companies will be participating in key panel sessions that focus on areas like transformation, investment and green technology.

“Overall, we aim to support Malaysia’s aspirations for sustainable and digital development, while also showcasing the positive contributions that Chinese enterprises are making in the country,” he added

The MCS 2024 is organised by Qube Integrated Malaysia Sdn Bhd in association with the Malaysia External Trade Development Corporation (MATRADE).

Themed “Prosperity Beyond 50”, the summit reflects a strategic initiative to ensure continuous economic growth, societal advancement, and overall well-being, as well as sustained cooperation and synergy between Malaysia and China.

Around 500 exhibitors from Malaysia, China and ASEAN countries are expected to participate in the summit, attracting 10,000 trade visitors and delegates, in addition to a projected RM2 billion worth of potential trade and investments.

Source: Bernama

CECCM: Supportive policies, favourable investment climate attracting Chinese companies to Malaysia

The Madani government’s clear economic policies, supported by encouraging indicators, can attract new investors to drive the country’s economy on the global stage, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said Malaysia was also recognised as a main hub in the semiconductor and green technology sectors in Southeast Asia, thereby positioning the country to play a significant role internationally.

There were several opportunities discussed in a roundtable session last night, he said, which was attended by around 60 industry and business leaders from Egypt, together with the Malaysian business delegation.

They included discussions on palm oil, the automotive industry, pharmaceuticals, medical products, semiconductors, digital technology and renewable energy.

“Among other things, we discussed the potential for investment in several new areas that can be explored through business and trade partnerships with companies in our country, which will further boost the national economy,” he said after attending the session.

Present were Egypt’s Investment and International Trade Minister Hassan El Khatib; Foreign Minister Datuk Seri Mohamad Hasan; and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

While speaking at the session, Anwar said one of Malaysia’s focuses when taking over the Asean chairmanship next year would be to further enhance economic and trade activities among member states.

He said Malaysia, as one of the key players and major producers in the green energy sector, would leverage its strength to boost intra-Asean economic and trade activities.

“As Asean chair, another focus will be efforts to accelerate the expansion of digitalisation among its member countries,” he added.

Source: NST

Madani govt’s clear policies will attract investors, says Anwar

Malaysia and Egypt have significant opportunities to help each other access their respective markets, said Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Aziz.

He said Malaysia serves as a gateway to the dynamic ASEAN economy, and Egypt as an entry point to the Middle Eastern and African markets.

Tengku Zafrul highlighted these opportunities following a meeting with senior management from over 60 leading Egyptian companies and 20 Malaysian companies on Sunday.

He noted that Prime Minister Datuk Seri Anwar Ibrahim emphasised the substantial opportunities not only in the Malaysian market but also in the expanding ASEAN market.

“With Malaysia set to assume the ASEAN chairmanship in 2025, Egypt has the chance to enhance its engagement with the ASEAN region through close collaboration with Malaysia,” he said in a post on X today.

Tengku Zafrul pointed out that sectors such as palm oil, pharmaceuticals, medical devices, energy, food security, infrastructure, and technology have been identified as strategic areas for Egyptian companies to explore.

He also said that through Malaysia’s network of 16 Free Trade Agreements (FTAs), including with ASEAN, the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Egyptian investors have the opportunity to enjoy wider access and attractive incentives to international markets beyond the regional borders, including countries like Japan, Australia, Canada, and Latin America.

“With strong support from MITI and Malaysia’s investor-friendly ecosystem, Egypt is now in an excellent position to leverage this platform to strengthen its presence in this fast-growing region,” said Tengku Zafrul.

He further emphasised that the Malaysia-Egypt partnership holds great potential for exploring new opportunities within ASEAN and expanding more strategic economic engagement.

Tengku Zafrul is currently in Egypt as part of the official four-day visit by Prime Minister Anwar Ibrahim at the invitation of President Abdel Fattah El-Sisi.

Egypt is Malaysia’s fifth-largest trading partner in Africa, with trade value reaching RM3.35 billion in 2023.

Source: Bernama

Malaysia, Egypt have opportunities to access markets in ASEAN, the Middle East, and Africa – Tengku Zafrul

Malaysia is receiving greater foreign interest and investments due to its stability and positive policy reforms, says Citigroup global co-head of corporate banking Jason Rekate.

“There is an influx of investments in high growth sectors such as technology, renewable energy, data centres and semiconductors, with companies from the United States being the largest investors.

“There is also heightened interest from European and Asian countries. We expect a pickup in more strategic merger and acquisition (M&A) activity,” he said in an interview.

US-based Citigroup, which Malaysian corporate banking business is one of the key markets for its Asian franchise, is capitalising on the rapid foreign investment inflows into the country to carve a stronger foothold in the corporate banking arena.

Elaborating on foreign direct investments (FDIs), Rekate said they reached RM85.4bil in the first half of 2024 as many of the corporates used Citigroup’s network when they enter the country or increase their existing investments.

“We have also seen an uptick in investments made in the semiconductor ecosystem, data centres, shared services centres and global billing centres.

“They will continue to increase and remain a focus area for us.

“With the China plus one strategy playing out, where we also see Chinese companies setting up manufacturing bases in new locations to support their Asian and international businesses, Citi Malaysia is well placed to capture the business flows as we support more companies entering the country.”

As Malaysia drives its own environmental, social and governance agenda in technological and green financing initiatives, it will open up new opportunities in green loans and sustainability-linked financing, according to Rekate.

Companies are looking at making incremental investments for manufacturing in other countries to diversify their business under the China plus one strategy.

On the focus areas in corporate banking, Rekate said: “We are deepening client engagement and growing our wallet share with our existing clients.

“Citi continues to work closely with foreign multinational companies who are clients of ours in other parts of the world, as they enter or expand their business presence in Malaysia.

“We will focus on key business corridors where we see maximum opportunity for growth and investment.

“For instance, our Asia-to-Asia corridor strategy has been a huge growth area and will continue to be a focus going forward.”

With the government’s emphasis on attracting FDIs in high-growth sectors, the bank is optimistic that the electrical and electronics ecosystem will grow at a steady pace driven by demand for consumer electronics, automotive and artificial intelligence.

This is a sector that it will focus on in Malaysia, and other parts of the world, as well as the entire supply chain.

The bank also expects opportunities for M&A and capital raising in the healthcare and data centre space as more companies look at Malaysia as a suitable option.

Looking ahead, Rekate said Citigroup saw immense growth opportunities for the country’s economy and multinationals planning to operating here.

The banking group is maintaining its gross domestic product (GDP) growth forecast of 5.2%, implying that the fourth quarter GDP growth is picking up to 5.5% for this year.

Based on official estimates, the economy is projected to grow between 4.5% and 5.5% in 2025, driven by strong domestic demand and strategic investments in critical sectors including technology, manufacturing and renewable energy.

The GDP is projected to be stronger at between 4.8% and 5.3% this year compared with between 4% and 5% previously.

UOB Malaysia acquired Citigroup’s consumer banking business in Malaysia in 2022, resulting in Citigroup’s retail banking and consumer credit card business being transferred to UOB Malaysia.

In terms of the contribution of corporate banking to Citigroup Malaysia’s overall business, Rekate said it formed the bulk of the bank’s business in the country.

“Client relationships are managed by our team of experienced bankers within the corporate banking team.

“They work with our product partners in services and markets who offer our corporate clients a range of sophisticated and innovative services tailored for their business needs, including payments solutions, cash and liquidity management, trade finance, custody and trustee services as well as markets solutions like hedging and foreign exchange.

“This is our annuity business which contributes a steady fee income.

“Then there is the episodic activity where we work with our investment banking partners to deliver capital markets financing and M&A advisory.

“As activity levels in Malaysia increase, and more companies require the services we provide, we expect our local franchise to benefit and grow as our clients grow,” he added.

Source: The Star

Uptick in FDI flows

An increase in investment inflows, improved tax collection relative to Gross Domestic Product (GDP), and a narrower fiscal deficit are positive catalysts expected to drive Malaysia’s economy to grow between 5.0 per cent and 5.5 per cent in 2024 and 2025.

Malaysian Rating Corporation Bhd (MARC) chief economist Dr Ray Choy noted that total approved investments have averaged over RM300 billion – a significant increase compared to the period from 2015 to 2019 when this figure stood slightly above RM200 billion. “This represents a substantial rise in investments over time, reflected in the improvement in GDP growth and an increase in gross fixed capital formation, which indicates additional capacity building in the Malaysian economy,” he said during the virtual MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates event.

Choy further highlighted that Malaysia’s cyclical growth prospects remain strong, bolstered by a relatively elevated manufacturing Purchasing Managers’ Index (PMI) and improving business confidence.

“Malaysia’s PMI has improved. It’s not just about whether PMI is below or above 50, but about the cyclical improvements we’ve observed since the third quarter of 2023.

“This improvement is mirrored across business confidence in services, wholesale and retail trade, as well as in construction and industry,” he said.

In October 2024, the seasonally adjusted S&P Global Malaysia Manufacturing PMI remained unchanged at 49.5, with new orders rising for the first time since June 2024.

S&P Global previously reported that, while the index slightly trailed the neutral 50.0 threshold, it indicated a slight softening in business conditions over the month.

Choy added that global semiconductor trends have shown improvement, benefiting Malaysia as well.

On the fiscal deficit target, Choy stated that the fiscal deficit-to-GDP ratio has shown consistent improvement, with government expenditure as a share of GDP expected to decline due to reduced subsidies and the careful management of development expenditure.

“Malaysia is increasingly utilising public-private partnerships to drive development, effectively managing development expenditure even with a slightly reduced allocation.”

Commenting on the ringgit’s performance, he noted that the currency has performed well year-to-date, and Malaysia stands out for its GDP growth trajectory, which is slightly higher than pre-pandemic levels – an encouraging trend compared to other economies.

Source: Borneo Post

Investment inflows, strong business confidence to support Malaysia’s GDP growth for 2024, 2025

Malaysia and Egypt have agreed to work towards elevating bilateral relations to the level of strategic partnership in the near future, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said both countries are also committed to strengthening bilateral relations in various areas for mutual interest and benefit.

“To achieve this, Malaysia will host the next Joint Commission Meeting and Bilateral Consultation in 2025,“ he said during a joint press conference with Egypt’s President Abdel Fattah El-Sisi after a bilateral meeting between the two leaders at the Al-Ittihadiya Palace here today.

Earlier, Anwar paid a courtesy call on El-Sisi at the palace in conjunction with his four-day official visit to Egypt. The two leaders held a four-eye meeting before the bilateral meeting.

According to Anwar, he and El-Sisi also agreed to expand cooperation in trade and investment, higher education, cultural affairs, defence and security, agro-commodities, and tourism.

He said both countries also will leverage each other’s strengths and explore new potentials such as digital economy, renewable energy infrastructure development, transportation and maritime domain, as well as manufacturing and semiconductor sectors.

“We (Malaysia) are quite fortunate because Malaysia has emerged to be one of the important semiconductor hubs in the region, and we should be able to collaborate in this field.

“As the Chair of ASEAN in 2025, Malaysia expressed its readiness to work closely with Egypt to promote ASEAN-Egypt relations.

“Malaysia also encouraged Egypt to advance its engagement with ASEAN, through its important role and being the founding member of the African Union,” he said.

Anwar also expressed hope to work closely with Egypt and other BRICS members towards its full membership in BRICS and to advance the Global South Agenda after Malaysia was endorsed by BRICS Leaders of the Modalities of BRICS Partner Country Category at the 16th BRICS Summit in Kazan, Russia on Oct 23, 2024.

He said El-Sisi’s support is very important and needed by Malaysia in its application to be a full member of BRICS.

According to Anwar, Egypt has a great tradition of being one of the most profound voices for the global South and is always seen to be one of the leading voices of independence and neutrality.

“And this is consistent with the ASEAN position we call centrality. We engage with all countries, are friends with all countries, but we maintain our independence and we collaborate with all countries, particularly in terms of trade investments,” he added.

Source: Bernama

Malaysia, Egypt to work towards elevating bilateral relations to strategic partnership level

Johor’s economy is expanding into high-growth sectors, including food technology, agritech and renewable energy, showcasing the state’s adaptability to global trends.

State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said these areas reflect Johor’s responsiveness and readiness to embrace change.

“In food tech, we’re exploring sustainable agriculture solutions for domestic and international markets, while agritech enables efficient, technology-driven agricultural production.

“Clean energy is another sector we’re keen to expand, with projects that contribute to a sustainable economic future. We’re also actively seeking partners who can support and accelerate these initiatives, making Johor a leader in responsible growth and innovation,” he said in a Facebook post.

Lee added that Johor’s growth is anchored by partnerships with industry leaders committed to sustainable, high-value development.

“One recent example is our RM500 million collaboration with Fuji Oil Asia Pte Ltd through Johor Plantations Group, a fully owned subsidiary of Johor Corporation.

“Furthermore, our recent discussions with over 80 South Korean companies reflect Johor’s global appeal and our openness to international collaboration,” he said.

He also pointed to an upcoming agreement with Singapore on the Johor-Singapore Special Economic Zone (JS-SEZ), set to be signed on Dec 8 or 9 this year, as a key part of Johor’s broader economic strategy.

“This SEZ is more than just an economic zone; it is a model of economic integration within Asean, designed to facilitate cross-border investments, streamline regulations, and connect regional markets.

“Asean, with a population currently of 700 million, is projected to become the fourth-largest market in the world by 2030, up from fifth today. Our combined GDP is about US$3.8 trillion (US$1 = RM4.38), with intra-regional trade of about US$3.5 trillion,” he added.

Source: Bernama

Johor targets high-growth sectors to drive economic expansion

Companies have been moving factories from China to South-east Asia, anticipating Donald Trump would slap high tariffs on Beijing if he regained the White House, a move set to accelerate with his election win, industrial park developers in the region say.

Trump, who won a resounding victory on Tuesday, has threatened 60 per cent tariffs on goods coming into the US from China, much higher than the levies of 7.5 per cent to 25 per cent he imposed in his first term, a major risk for the world’s second-largest economy.

South-east Asia — with auto and electronics factories from Thailand to Vietnam and Malaysia — will likely benefit at China’s expense, said two executives, two business groups, a lawyer and an analyst in the region.

Developers of industrial parks are adding Chinese speakers and preparing land tracts for factories, a sign of how Trump, who takes office in January, could reshuffle global supply chains.

As Trump geared up his campaign to retake the presidency earlier this year, calls from Chinese customers flooded WHA Group, one of Thailand’s largest industrial estate developers, said CEO Jareeporn Jarukornsakul.

“There was (already) a relocation to South-east Asia, but this round is going to be more intense,” she said, referring to Trump’s 2017-2021 first term.

WHA is expanding its sales force and adding Chinese speakers to teams overseeing maintenance and administration of industrial parks spanning more than 12,000 hectares (30,000 acres) in Thailand and Vietnam, Jareeporn said.

Of the 90 factories that have opened this year in industrial parks run across South-east Asia by Thailand’s Amata Corp, some two-thirds have been companies relocating facilities from China, said Vikrom Kromadit, the developer’s founder and chairman.

Trump ‘needs some friends’

Trump will be a “big punch” to China, potentially doubling the number of firms looking to move from there into Amata’s 150 square km of industrial estates in four South-east Asian countries, Vikrom said.

Construction begins this month on an Amata industrial park in Laos, where China has built a high-speed rail line connecting Kunming in southwestern China to the Laotian capital Vientiane, he said.

Thailand, a regional automobile manufacturing hub, has drawn over US$1.4 billion (RM6.14 billion) in investment from Chinese automakers into its fast-expanding electric vehicle industry.

“We want a lot of investment from China so we can sell to America,” said Thai Commerce Minister Pichai Naripthaphan.

“I believe this will happen,” told reporters yesterday. “The Americans love us, the Chinese love us — we don’t have to choose sides.”

Malaysia, hoping to draw over US$100 billion in new investments to its semiconductor sector, could benefit from a realignment of supply chains, said leaders of two business groups.

“This shift could provide Malaysia with new opportunities to capture a larger share of exports to the United States and other key markets,” said Soh Thian Lai, president of the Federation of Malaysian Manufacturers.

But risks persist, particularly with some indications that Trump may consider tariffs on imports from countries across the region, said Leif Schneider, head of international law firm Luther in Vietnam.

Vietnam, a major exporter to the US with US$90 billion bilateral trade surplus between January and September, is bracing for volatility under Trump.

“Trump will have to choose — you can be anti-China, but you’ll need to have some friends in South-east Asia,” said WHA’s Jareeporn. “He is a negotiator, so we will negotiate.”

Source: Reuters

Malaysia poised to gain as companies shift production from China amid Trump’s tariff threat

Donald Trump’s re-election as the United States (US) President is expected to accelerate the China Plus One strategy, benefitting Malaysia through higher investments and enhanced export potential, particularly in sectors such as electronics, machinery, and palm oil.

Making this prediction, CIMB Securities senior economist Vincent Loo said Trump’s return to the White House solidifies a trajectory of heightened tariffs and protectionist policies, including a proposed 10 per cent tariff on all imports and a specific 60 per cent tariff on Chinese goods.

“With escalating US-China trade tensions, Malaysia could see increased export demand from US companies looking to source products outside China, creating export growth opportunities in high-value sectors,” he said in a research note today.

Loo said foreign direct investment (FDI) in Malaysia is expected to rise as companies seek stable manufacturing bases in the ASEAN region, with the country emerging as a competitive destination owing to its infrastructure and relatively lower production costs.

“However, renewed trade uncertainty may lead to risk-off sentiment in financial markets, prompting investors to seek safe-haven assets, supporting a stronger US dollar and accentuating capital outflows from emerging markets, including Malaysia,” he added.

He noted that increased tariffs on Chinese goods may prompt US companies to shift sourcing from China to Malaysia, increasing demand for Malaysian exports of semiconductors and electronic components.

However, if trade tensions escalate, overall demand might decline, curtailing exports to both the US and China.

Similar to electrical and electronics (E&E) exports, Loo said Malaysia’s machinery and appliance exports stand to gain as the US seeks alternatives to Chinese products.

“However, heightened tariffs and trade barriers could raise costs and reduce global trade demand, impacting Malaysia’s trade volume,” he added.

Meanwhile, Trump’s “America First” energy policy, with an emphasis on boosting US production, could lower global energy prices, diminishing the value of Malaysia’s mineral fuel exports, said Loo.

CIMB Securities maintained its forecast of Malaysia’s gross domestic product (GDP) at 5.2 per cent for 2024 and 5.0 per cent for 2025 although its export-import outlook may face upside risks owing to increased volatility of trade flows and fluctuations in foreign exchange levels.

“We continue to expect an external demand recovery driven by the global tech upcycle, as well as strong domestic spending supported by robust investments and resilient consumer spending,” said Loo.

The ringgit is anticipated to experience near-term volatility, but this would ultimately hinge on the US

Federal Reserve’s policy decisions, he said.

Meanwhile, Hong Leong Investment Bank (HLIB) said the proliferation of the China Plus One strategy would benefit Malaysia’s electronic manufacturing services sector as brand owners shift or diversify their manufacturing from China, while increased FDI to Malaysia would benefit sectors such as construction, industrial property and real estate investment trust.

It also said more economic fluidity and market volatility are expected under a Trump presidency given his rather confrontational “shoot from the hip” style.

“This isn’t entirely a bad thing, noting that Malaysia did benefit from the ongoing US-China trade war. However, the key risk this time around is if he drags the entire world into it as well with his proposed blanket 10-20 per cent tariff – the US was Malaysia’s third largest export destination in 2023 at 11.3 per cent,” it added.

For now, the investment bank is maintaining its end-2024 FTSE Bursa Malaysia KLCI target at 1,700.

“Our investment themes on tourism recovery, energy transition, Johor’s developmental reinvigoration and disposable income boosting measures should be fairly insulated the US election outcome – while trade war beneficiaries could see revived interest,” said HLIB. 

Source: Bernama

Trump presidency to enhance Malaysia’s export potential, FDI inflows

An increase in investment inflows, improved tax collection relative to the gross domestic product (GDP), and a narrower fiscal deficit are positive catalysts expected to drive Malaysia’s economy to grow between 5.0 per cent and 5.5 per cent in 2024 and 2025.

Malaysian Rating Corporation Bhd (MARC) chief economist Ray Choy said that total approved investments have averaged over RM300 billion — a significant increase compared to the period from 2015 to 2019 when this figure stood slightly above RM200 billion.

“This represents a substantial rise in investments over time, reflected in the improvement in GDP growth and an increase in gross fixed capital formation, which indicates additional capacity building in the Malaysian economy,” he said during the virtual MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates event today.

Malaysia’s cyclical growth prospects remain strong, bolstered by a relatively elevated manufacturing Purchasing Managers’ Index (PMI) and improving business confidence.

“Malaysia’s PMI has improved. It is not just about whether PMI is below or above 50, but about the cyclical improvements we have observed since the third quarter of 2023.

“This improvement is mirrored across business confidence in services, wholesale and retail trade, as well as in construction and industry,” Choy said.

In October, the seasonally adjusted S&P Global Malaysia Manufacturing PMI remained unchanged at 49.5, with new orders rising for the first time since June.

S&P Global previously reported that, while the index slightly trailed the neutral 50.0 threshold, it indicated a slight softening in business conditions over the month.

He added that global semiconductor trends have shown improvement, benefiting Malaysia as well.

On the fiscal deficit target, Choy said the fiscal deficit-to-GDP ratio has shown consistent improvement, with government expenditure as a share of GDP expected to decline due to reduced subsidies and the careful management of development expenditure.

“Malaysia is increasingly utilising public-private partnerships to drive development, effectively managing development expenditure even with a slightly reduced allocation,” he said.

Commenting on the ringgit’s performance, Choy said the currency has performed well year-to-date, and Malaysia stands out for its GDP growth trajectory, which is slightly higher than pre-pandemic levels — an encouraging trend compared to other economies.

“This is drawing global investors to Malaysia-denominated assets,” he said.

Meanwhile, the MARC360 Reflections: Analyses of Malaysia’s Budget 2025 and Post-Budget Debates is the latest instalment of its MARC360 series, where economic experts, policymakers, and industry stakeholders explored Budget 2025 and its expected impacts on Malaysia’s economic landscape.

The session featured presentations and insights from prominent voices in economic and fiscal policies, including the Finance Ministry’s Fiscal and Economics Division’s deputy undersecretary (economic research) Nirwan Noh, Moody’s Ratings’s senior sovereign risk analyst Christian de Guzman, and the Center for Market Education’s chief executive officer Carmelo Ferlito.

Source: Bernama

Malaysia’s GDP growth for 2024, 2025 boosted by investment inflows, strong business confidence

Prime Minister Datuk Seri Anwar Ibrahim reaffirmed Malaysia’s commitment to strengthening collaboration with China, emphasising both trade and broader global objectives.

During his courtesy call on President Xi Jinping at the Great Hall of People, Anwar expressed his gratitude for China’s continued support and emphasised the importance of shared values and vision between the two nations.

“I have followed you closely, Mr. President, especially your brilliant speech at the BRICS summit. Your support for our partnership with BRICS has been invaluable. More importantly, your vision for global security and development resonates deeply with us,“ said Anwar, referring to China’s President.

He further noted that China’s emphasis on “values and civilisation” sets it apart from many other world leaders, underscoring China’s passion for not only its people but also for the welfare of humanity.

“This is why we view China not just as a leader of the East but as a voice for the Global South, one that champions the interests of the developing world.”

The Prime Minister also highlighted the deepening ties between Malaysia and China, focusing on areas such as trade, investment, digital technology, energy, and training.

He said Malaysia particularly appreciates China’s willingness to embrace the nation as a partner in these key sectors.

“I spoke at Peking University earlier today on how I view China’s vision for a shared future, something that many developed countries have yet to embrace,“ he added.

“Your vision of a global community where China’s success is understood and shared with the international community is a powerful example of leadership.”

Looking ahead, Prime Minister Anwar also discussed Malaysia’s upcoming ASEAN chairmanship and the region’s growing ties with the Gulf Cooperation Council (GCC) and China.

He highlighted a notable achievement in ASEAN’s diplomatic efforts: the ASEAN-GCC-China partnership, which he believes will play a pivotal role in shaping the future of global trade and cooperation.

Despite challenges, the Prime Minister assured that Malaysia would continue to act in its national interest, citing the country’s independent decision-making process on issues such as 5G technology.

“We have decided that Chinese 5G technology will be a key part of Malaysia’s digital infrastructure, a choice made to benefit our country,“ he said.

The Prime Minister concluded his remarks by expressing confidence in the success of ASEAN’s future initiatives, with China’s involvement being essential to ensuring the region’s prosperity.

“We look forward to your continued support, Mr. President, as your presence is critical to the success of ASEAN,“ he said.

This statement reflects Malaysia’s increasingly strategic position on the global stage, positioning itself as a key player in both regional and international affairs.

Anwar arrived in Beijing on Wednesday, the last stop of his working visit to China from Nov 4 to 7. He arrived in Shanghai on Monday to attend the 7th China International Import Expo (7th CIIE).

Source: Bernama

PM Anwar: Malaysia committed to strengthening collaboration with China beyond trade