ingapore firms view Johor as an attractive destination and are eager to set up operations and invest in the proposed Johor-Singapore Special Economic Zone (JS-SEZ), according to a report released by the Singapore Business Federation (SBF).

Key findings from the JS-SEZ Singapore Business Working Group’s (SBWG) report, titled ‘Greater Together: Two Economies, One Ecosystem,’ revealed that 93 per cent of respondents consider Johor an appealing investment destination, with half of them already operating in the state.

However, they expressed concerns about sourcing skilled and technical workers, congestion at the land crossings delaying the movement of people and goods, and difficulties handling tax issues.

Nearly 60 per cent of the Singaporean businesses surveyed reported challenges in sourcing technical and skilled workers in Johor, and they also faced difficulties in attracting Singaporean talent to work across the border.

Additionally, 61 per cent of the companies attributed the manpower crunch to employment pass issues, 58 per cent cited skill gaps in the Malaysian labour force, and 21 per cent pointed to salary mismatches as a contributing factor.

The findings were released at a JS-SEZ Joint Investor Forum on Thursday and are based on SBF’s engagements with 160 Singaporean businesses across various industries. Speaking at the forum, SBWG Chairman Teo Siong Seng said the enthusiastic response to the report highlights the JS-SEZ’s great potential for the region.

“This isn’t just another project; it’s a potential game-changer for both Malaysia and Singapore. This is about more than just closer integration; it’s about crafting an economic powerhouse that harnesses our complementary strengths on a sustainable basis. 

“By bridging our economies, we’re creating new opportunities that will benefit businesses on both sides of the causeway,” he added. 

To address the manpower crunch, the SBWG suggested that authorities from both sides create a unique labor ecosystem that leverages the strengths of the two economies: Singapore’s research and development (R&D) and management capabilities with Johor’s technical skills for execution and operations supporting various industries.

Other key proposals included developing harmonized workforce regulations, investing in each other’s workforce to enhance manpower capabilities and bridge skill gaps, and establishing talent acquisition programs.

In January, Singapore and Malaysia signed a Memorandum of Understanding (MOU) on the JS-SEZ, which is expected to offer both fiscal and non-fiscal incentives like tax breaks and easier travel between the two countries.

The special economic zone will target sectors related to electronics, financial services, business-related services, and healthcare.

Economy Minister Rafizi Ramli, who is heading SEZ negotiations for Malaysia, said at an investor forum for the JS-SEZ on Wednesday that the signing of the agreement is on track for September, with officials from both sides working on finalizing the details.

Rafizi said that Malaysia has presented its framework to Singapore and is awaiting a response, adding that negotiations should be kept confidential and that specific details, including the JS-SEZ’s geographic scope, can only be announced after the agreement is signed.

Following that, Malaysia aims to present its financial package for the JS-SEZ, including fiscal and non-fiscal incentives, in the October budget speech.

Source: NST

9 in 10 Singaporean firms keen to invest in Johor

The ongoing trade tension between the United States (US) and China may position Malaysia as a key source for importing raw materials, parts and components, and new finished products for companies looking to reduce their reliance on either of the two superpowers.

According to the Investment, Trade, and Industry Ministry (Miti), the uncertainty in US-China trade relations will encourage multinational companies from other nations to seek alternative production locations in third countries, including Malaysia.

“This could lead to increased foreign investment and employment opportunities in Malaysia,” it said in a written response posted on Parliament’s website yesterday.

Miti was responding to Parit Buntar MP Mohd Misbahul Munir Masduki’s query on the risks and implications for Malaysia amid the US-China trade tensions.

Simultaneously, it noted that Malaysia could seize the opportunity to attract investment from China, particularly as the US increases tariffs on Chinese goods.

“However, Malaysian companies are advised to conduct thorough due diligence to ensure that potential Chinese business partners do not intend to use Malaysia as a means to circumvent high US tariffs,” Miti said.

Malaysia will continue its neutrality policy and maintain good relations with all its trading partners, including the US and China.

“In balancing the challenges and opportunities arising from this trade tension, the actions and initiatives taken by the government will consider the needs and interests of local companies,” it said.

Moreover, the trade tensions have already spurred an increase in foreign investment, with American giants such as Intel investing RM30 billion in Malaysia and Global Foundries establishing an operational hub in Penang.

The ministry also acknowledged that the Russia-Ukraine crisis will have an indirect impact on Malaysia’s semiconductor industry.

Source: Bernama

Malaysia a potential key source amid US-China trade tensions — MITI

Sabah is committed to strengthening cooperation with China in various sectors to attract more investors from that country, said Chief Minister Datuk Seri Panglima Hajiji Noor.

He pointed out that there are already investors from China in Sabah, such as the Kibing Group, which is investing in solar glass manufacturing at the Kota Kinabalu Industrial Park (KKIP).

“The presence of investors in Sabah not only enhance the state’s economy but also provide job opportunities for the local population. Therefore, I hope more investors from China will invest in this state, and we warmly welcome their presence.

“With more investors coming, including from China, it will bring positive indicators for our economy,” he said during a courtesy visit from the Chinese Ambassador to Malaysia, Ouyang Yujing, and the Consul General of the People’s Republic of China in Kota Kinabalu, Dr Huang Shifang.

Also present at the courstecy call at the State Legislative Assembly building on Thursday were the Minister of Tourism, Arts, and Culture Dato’ Sri Tiong King Sing, State Secretary Datuk Seri Panglima Safar Untong and Tourism, Culture, and Environment Ministry’s Permanent Secretary, Josie Lai.

Meanwhile, the Chief Minister also said that the state and federal governments will continue to work together to upgrade tourism facilities in the state.

“I am pleased with the presence of many Chinese tourists in Sabah, especially after Covid-19. I hope the number of tourists from China will continue to increase. Therefore, the state government will continue to collaborate with the federal government to upgrade tourism facilities in the state.

“I also want issues related to the safety of tourists coming to the state to be given priority. We do not want any undesirable incidents involving foreign tourists in this state. The state government will do its best to ensure the safety of the public, including tourists to this state.”

During the courtesy visit, the Sabah-Malaysia My Second Home (Sabah-MM2H) program was also discussed.

Hajiji said he wants the state Tourism, Culture, and Environment Ministry, along with the Federal Tourism, Arts, and Culture Ministry to iron out the matter.

Meanwhile, Ouyang said that the number of tourists from China to Malaysia is expected to double during the summer season this July.

“Of course, tourists coming to Malaysia will also visit Sabah,” he said.

Besides tourism, he said the Chinese government encourages investment from China to Malaysia in high-tech fields such as the digital economy, AI, solar energy and e-commerce.

“Surely both countries will benefit from this bilateral relationship, especially in terms of investment in high-tech fields,” he said.

Source: Borneo Post

Sabah welcomes more investments from China – Hajiji

An official credit rating bump from globally recognised agencies will make Malaysian bonds more attractive to a broader range of investors, said SPI Asset Management.

Its managing director Stephen Innes said with JP Morgan, a leading global financial institution, upgrading its rating on Malaysia independently to “neutral” from “underweight” after nearly six years, positive ripples are already being felt in the global bond market investment community.

“This move could also draw attention from local equity funds, as these comments open the eyes of international equity investors.

“Early indications suggest that investment flows are beginning to return, albeit in baby steps,” he told Bernama.

Regarding the impact on the ringgit, Innes said this would lead to real investment flows rather than speculative ones.

This, he said, is the primary driver of the local currency since the ringgit is not tradeable on the open market; hence, positive comments and upgrades from rating agencies could partially explain why the ringgit saw a rally today.

However, Innes said that in the grand scheme of currency markets, the US Federal Reserve (Fed) wields significant influence.

“Until investors are certain that the Fed will cut rates, currency rallies in Asia, particularly among lower yielders, will likely encounter resistance.

“So, while Malaysia enjoys a moment in the sun with its bond market gaining favour and the ringgit showing strength, the overarching narrative is still dictated by the Fed’s next move,” Innes added.

Foreign investors reassessing position on Malaysia

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the bullishness from JP Morgan suggests that foreign investors are reassessing their position on Malaysia after taking into consideration several policy changes and initiatives which are meant to bolster the country’s productive capacity.

He said unpopular measures such as subsidy rationalisation on fuel and electricity, a move towards market-based economies, the increase in service tax rate from six per cent to eight per cent and the introduction of the low value goods tax suggested that the present government is committed to implementing economic reforms.

“The positive impact from these measures will be felt in the mid to long term as the government would need to redirect the savings and the extra income generated from the initiative towards education, healthcare and infrastructure.

“All this will help improve the country’s potential growth which could translate into better earnings prospect among the listed firms,” said Mohd Afzanizam.

From the equity valuation point of view, the FTSE Bursa Malaysia KLCI (FBM KLCI) price-to-earnings (PE) multiple currently stands at 15.3 times, which is way below than the long-term average of 17.1 times, he said.

“Should the PE ratio revert to its mean level, I would not be surprised if the FBM KLCI surpasses 1,700 points.

“Not to mention that our ringgit is undervalued, as indicated by the central bank. In that sense, there is a clear incentive among the foreign portfolio investors to reassess their existing portfolio holding in Malaysia,” he said.

At present, the foreign ownership level in firms listed on Bursa Malaysia is around 19 per cent, he said.

The highest level was at 25.8 per cent in May 2013.

“If the foreign ownership would increase from the prevailing level, we shall see further upside to the current FBM KLCI level,” Mohd Afzanizam added.

On Wednesday, JP Morgan head of Asia-Pacific (ex-Japan/China) Rajiv Batra, in an interview with CNBC, said the firm has upgraded Malaysia’s rating from “underweight” to “neutral” after almost six years, crediting the country’s policy reforms, data centre investments and infrastructure build-up.

Source: Bernama

JP Morgan’s rating bump for Malaysia after six years will attract international investors interest – economists

The Ministry of Investment, Trade and Industry (Miti) has reported potential exports worth RM3.3 billion from the three-day trade and investment mission to Vietnam from July 8-10.

The mission was led by Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, supported by senior representatives from Malaysia External Trade Development Corporation (Matrade) and Malaysian Investment Development Authority (Mida).

In a statement today, Tengku Zafrul said the mission serves as a catalyst for expanding and initiating strategic business-to-business partnerships between Malaysian and Vietnamese entities while strengthening bilateral cooperation between the two nations.

“We are pleased with the RM3.3 billion potential exports from our brief mission to Vietnam. The next thing is to ensure that we follow up on realising these commitments quickly and efficiently to support our gross domestic product growth and create job opportunities for our people,” he said.

Miti said 14 Vietnamese companies have committed to sourcing Malaysian products, including electrical and electronics, palm oil, chemicals and petrochemicals, iron and steel, food and beverages, as well as fast-moving consumer goods.

“The encouraging outcome facilitated by Matrade reflects the growing momentum in economic ties between Malaysia and Vietnam, highlighting mutually beneficial opportunities for business communities in both countries,” it said.

During the trade mission, Tengku Zafrul met with key state officials, including Vietnam’s Prime Minister, Phạm Minh Chính; Minister of Planning and Investment, Nguyen Chi Dzung; and Minister of Industry and Trade, Nguyen Hong Dien.

Tengku Zafrul and Nguyen Hong Dien co-chaired the Fourth Malaysia-Vietnam Joint Trade Committee Meeting (4th JTC) in Hanoi on July 9, which was preceded by the Senior Officials Meeting on July 8.

“The 4th JTC focused on several key deliverables to advance Malaysia-Vietnam economic ties, including cooperation in the Halal industry, where Malaysia would assist Vietnam on Halal standards, compliance assessment and accreditation.

“The meeting also discussed possible collaborations in green economy, such as in the electric vehicle sector between the Malaysia Automotive, Robotics and IoT Institute and potential partners from the Vietnamese public and private sectors; as well as renewable energy, particularly offshore and onshore wind power,” it said.

The parties also spoke about Malaysia’s Asean chairmanship in 2025.

“Vietnam expressed its support to Malaysia in propelling Asean’s economic integration efforts to greater heights through the Priority Economic Deliverables during Malaysia’s hosting year,” it added.

Last year, Vietnam was Malaysia’s 11th largest trading partner while Malaysia was Vietnam’s 10th largest trading partner globally, with a total trade volume of US$17.38 billion (RM79.42 billion).

Source: Bernama

MITI: RM3b potential exports from trade, investment mission to Vietnam

The Johor-Singapore Special Economic Zone (JS-SEZ) can be a platform to position Malaysia as a competitor to shift the focus of investments to Johor and Singapore from Vietnam, said Economy Minister Rafizi Ramli.

He said JS-SEZ is attractive to international companies that want to find a way to deal with their geopolitical risks and establish a foothold in Southeast Asia.

“ThE JS-SEZ is not only focused on companies from Singapore, but the greater potential is for companies from all over the world to come to Johor as they can have the best of both worlds.

“They can have the sophistication of Singapore, yet they can leverage the resource and cost advantages of Johor.

“Previously, the destination that was the focus of these companies was Vietnam, so with the JS-SEZ, we can position Malaysia as a competitor to divert investments that previously went to Vietnam, to Johor and Singapore instead,” he said during an information session on JS-SEZ at the Dewan Rakyat today.

Rafizi said JS-SEZ’s focus is on sectors in line with the government’s current policies that are high-value and technology-based, as outlined through the National Energy Transition Roadmap, the New Industrial Master Plan 2030, and the 12th Malaysia Plan.

The JS-SEZ will cover ​​Iskandar Malaysia, including the 3,505sq km area under the administration of the Pengerang Municipal Council.

JS-SEZ will include Johor areas under the Iskandar Puteri City Council, Johor Bahru City Council, Pasir Gudang City Council, Kulai Municipal Council, Pengerang Municipal Council, and part of the Pontian Municipal Council.

The JS-SEZ is in its final stages, paving the way for a joint agreement expected to be signed in September.

The Johor and federal governments are working together to ensure JS-SEZ can attract global investors, especially involving private equity and venture capital.

Source: Bernama

Rafizi says JS-SEZ can shift investment from Vietnam to Malaysia and Singapore

JP Morgan has upgraded Malaysia’s rating from underweight to neutral after almost six years, crediting the country’s policy reforms, data centre investments and infrastructure build-up.

In an interview with CNBC yesterday, JP Morgan head of Asia-Pacific (ex-Japan/China), Rajiv Batra said Malaysia’s rapid pace of progress was impressive with a 4.2 per cent gross domestic product growth in the first quarter of 2024.

“What was more exciting for us was that all the signs were evident last year. Earnings growth almost tracking a 10-11 percent mark was an upside surprise. We need to give credit to the country, and hence we upgraded our rating to neutral,” he said.

Rajiv also spoke about how Malaysia took bold measures in rationalising subsidies, including the recent one on diesel, and highlighted that those who are in need are given monthly cash assistance.

“The people also realise that the money saved on subsidies will be used for productive economic purposes, be it in literacy, re-skilling people, or the progressive wage policies, which Malaysia has tried to take inspiration from Singapore,” he said.

He said the current government, which has been in power for one and a half years, are ‘walking the talk’.

Among others, he said the government has passed some difficult policies and reforms, citing the launch of the National Energy Transition Roadmap (NETR) and New Industrial Masterplan (NIMP) 2030.

“Most importantly, they went ahead with fiscal consolidation while not sacrificing growth, targeting a growth of 5.0 per cent.

“Look at ASEAN this year, which suffered US$7 billion outflows in ASEAN equities. Malaysia also started on a low note with close to US$150 million to US$160 million outflow in the first quarter, but in the second quarter, foreign investors are back with around US$200 million,” said Rajiv.

He said besides a string of data centre investments, Malaysia’s journey in the electric vehicle segment as well as green energy is commendable as well.

“Taking all these factors into account, foreign investors are seeing that there are multiple sectors and ideas to play over there,” he said.

He added that Malaysia is also one of the big markets in terms of market capitalisation, like Singapore, Indonesia and Thailand.

“We are seeing foreign investors taking some baby steps, but the foreign ownership level is still at only 19 per cent, and has not reached its potential peak of 35-40 per cent yet,” said Rajiv.

Source: Bernama

JP Morgan upgrades Malaysia’s rating: ‘Rapid pace of progress was impressive’

The ‘Greater Together: Two Economies, One EcoSystem’ report at the Johor-Singapore Special Economic Zone (JS-SEZ) Joint Investor Forum today revealed that 93 per cent of Singaporean businesses are eager to invest further in the Malaysian state.

This was based on findings from engagement with 160 Singaporean businesses across various sectors.

“The enthusiastic response to our report clearly signals the JS-SEZ’s great potential for our region. This isn’t just another project — it’s a potential game-changer for both Malaysia and Singapore,” said Teo Siong Seng, chairman of JS-SEZ Singapore Business Working Group.

“By bridging our economies, we’re creating new opportunities that will benefit businesses on both sides of the Causeway, he added.

The working group said the SEZ could leverage on Johor’s favourable operating costs and land availability, supported by Singapore’s strength in connectivity, branding and talent pool. Sectors to be targeted include manufacturing, logistics, digital services, healthcare, education and more.

However, the group conceded that some challenges remain, including gaps in manpower and the ease of movement between Singapore and Johor.

Yesterday, Economy Minister Rafizi Ramli said the Malaysian government is aiming to conclude negotiations with Singapore on the JS-SEZ by September, calling the project a “game-changer” for bilateral ties between the two countries.

The JS-SEZ will be located in Malaysia’s Iskandar region, and could cover an area of over 3,000km sq km, four times the size of Singapore.

The Malaysian government is promoting the zone as an investment magnet to boost sectors like electronics, health care and ancillary services for finance and business.

Source: Malay Mail

Trade group says nine in 10 Singapore firms bullish on special economic zone with Johor

The progress status of the East Coast Rail Link (ECRL) project in Kelantan has reached 79.81% as of May 2024, according to the Ministry of Transport (MoT).

The MoT said the progress of the work involved the bridge structures where 428 out of 468 beam launching spans had been installed on the main line and construction work for both stations in Kelantan had also started.

“In addition, track installation work in Kelantan is expected to begin in the fourth quarter of 2024 using a track laying machine,“ the ministry said on the parliament website on Wednesday in a written reply to a question from Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh) who wanted to know the progress status of the ECRL project, especially for the state of Kelantan and what is the plan to ensure the positive impact of the project will provide an economic spillover to the local population when it starts operating later.

The 665-kilometre ECRL project is a rail infrastructure project that will connect the states on the East Coast with the West Coast of Peninsular Malaysia, namely Kelantan, Terengganu, Pahang and Selangor.

As of May 2024, the overall progress status of this project has reached 67.09%.

The MoT said PLANMalaysia, through the East Coast Rail Line Integrated Land Use Master Plan (PeGTaECRL), will map out the land use development along the ECRL alignment and around the station including the development of the Economic Accelerator Project (EAP) investment.

“The detailed proposed plan in the PeGTaECRL for Kelantan involves two ECRL stations, namely the Kota Bharu and Pasir Puteh stations.

“Among the main proposals for the ECRL stations in Kelantan are the development of Bandar Baru Tunjong which is a new township for the Ketereh area, while in Pasir Puteh is the proposed development of a logistics hub as well as the proposed land port in Bandar Baru Tok Bali which will strengthen the Pasir Puteh station as a cargo hub for Kelantan and northern Terengganu,“ according to the MoT.

Source: Bernama

ECRL project work progress status in Kelantan at 79.81% as of May 2024 – MoT

Prime Minister Datuk Seri Anwar Ibrahim’s efforts in attracting high-value sectors like semiconductor fabrication and digital technology, expedite foreign direct investment approvals, and improve the ease of doing business have significant implications for both Malaysia and the broader Asian region.

Forbes quoted the University of Reading’s Henley Business School leadership professor Benjamin Laker as saying that significant investments have been attracted in high-value sectors such as semiconductor fabrication and digital technology.

“By focusing on sectors with high growth potential and technological advancement, Malaysia aims to ascend the global value chain and foster a more dynamic and competitive economy,” he said in a commentary published by the magazine on its website yesterday.

Measures to boost investment quality focus on labour productivity through automation and increased spending on research and development.

“These initiatives are designed to create a more innovation-driven economy — reducing reliance on low-skilled labour and enhancing overall productivity. These reforms have significant implications for both Malaysia and the broader Asian region,” Laker said.

He also commended Anwar’s measures on the cost optimisation front, especially the rationalisation of subsidies and managing civil service costs.

“Transitioning new civil servants to the Employees Provident Fund scheme — projected to reduce long-term pension costs — was a significant step.

“This move aimed to alleviate the financial burden on the government by shifting future pension liabilities to a more sustainable model,” Laker said.

Additionally, the enactment of the Public Finance and Fiscal Responsibility Act institutionalised prudent fiscal management with targets for a three per cent fiscal deficit and a 60 per cent debt-to-Gross Domestic Product ratio.

This legislative framework is intended to ensure that Malaysia’s fiscal policies remain sustainable in the long run, providing a stable economic environment conducive to growth, he wrote.

Nonetheless, he said challenges persist, sighting potential setbacks, like the attempt to retarget petrol subsidies and high living costs linked to other recent subsidy cuts.

Yet Laker opined that Malaysia’s journey could set a precedent for other nations navigating similar post-pandemic recoveries and structural transformations.

Source: Bernama

PM’s reform to attract investments has significant impact on Malaysia, Asia

After almost six years of maintaining an “underweight” rating on Malaysia, JP Morgan has upgraded its stance on the country to “neutral”, according to a recent CNBC interview with Rajiv Batra, its head of Asia-Pacific (ex-Japan/China) equity strategy.

The decision was driven by several key factors, including policy reforms, data-centred investments, and a significant infrastructure buildout. 

“What was more exciting for us were all the signs that were in the making last year,” Rajiv told CNBC.

He said the pace of progress in Malaysia has been surprising, with the country recording a 4.2% gross domestic product (GDP) growth in the first quarter of this year, and earnings growth tracking around 10% to 11%.

This positive economic performance warranted a re-evaluation and a subsequent upgrade. 

“We need to give credit to the country,” Rajiv added.

One of the bold steps taken by the Malaysian administration was cutting subsidies, a move often considered controversial and sensitive.

Rajiv noted that the savings from these subsidy cuts are being redirected towards productive uses in the economy, enhancing literacy, reskilling people, and implementing progressive wage policies. 

He added that Malaysia is taking inspiration from Singapore in this regard.

“This money will go for productive uses in the economy,” Rajiv said.

The upgrade in Malaysia’s rating is also reflective of a governance reset in the wake of the 1Malaysia Development Bhd (1MDB) scandal. 

The government has made significant strides in passing pivotal policies and reforms, including the National Energy (NE) transition and the Madani economy budget. 

The administration remains committed to fiscal consolidation without sacrificing growth, aiming for a 5% growth rate.

Foreign money is coming back to Malaysia

The changing perception among international investors is evident, as Malaysia has seen foreign investors returning after initial outflows.

“We suffered (US$)7 billion outflows in Asean equities this year. Malaysia started with around (US$)150 (million) to (US$)160 million outflows in the first quarter, but saw a return of (US$)200 million in the second quarter,” said Rajiv.

Notably, year-to-date, the bellwether index FBMKLCI has gained 11%, while FBM70 is up 28%.

Meanwhile, the ringgit has strengthen more than 2% against the US dollar from its over two-decade low in February.

The increased interest is further demonstrated by Rajiv’s own observations during recent travels.

“People are warming up to Malaysia and asking where they should invest,” he added.

Malaysia, which had fallen off the radar for many foreign investors, is now attracting attention once again. 

One reason for this renewed interest is Malaysia’s potential as a technology hub. 

“Foreign money is starting to come back to Malaysia,” Rajiv said, noting the interest in sectors like chip packaging in Penang, data centres, electric vehicles (EVs), green energy and solar projects.

Foreign investors are recognising the multiple themes and sectors that Malaysia has to offer. 

Considering Malaysia’s substantial market capitalisation, comparable to Singapore, Indonesia and Thailand, it is becoming a more attractive destination for foreign investment. 

“Foreign investors are taking baby steps and putting money in,” he said, although the foreign ownership level remains at only 19%, not yet peaking at the 35% to 40% levels.

Rajiv said JP Morgan’s upgrade reflects a combination of economic growth, effective policy implementation and improving governance, making Malaysia a more promising investment destination. 

Source: The Edge Malaysia

JP Morgan upgrades Malaysia amid economic reforms, renewed investor confidence, data-centred investments — interview

Brazil is looking to increase bilateral trade and investment with Malaysia, mainly in the renewable energy and oil and gas sectors, said its top envoy.

The energy sector has been a mutual investment in strengthening the ties between Brazil and Malaysia, said Brazilian Ambassador to Malaysia Ary Norton de Murat Quintella at the Brazil-Malaysia Energy and Investment Forum on Wednesday.

“We stand ready to work to increase Malaysian investments in Brazil, as well as to increase Brazilian investments in Malaysia,” he said.

Malaysia was the 14th biggest market for Brazil in 2023, according to Quintella. Malaysia’s exports to Brazil grew 7.2% year-on-year to RM5 billion in 2023, Malaysia External Trade Development Corp (Matrade) data showed.

State energy firm Petroliam Nasional Bhd or Petronas has invested more than 24 billion Brazilian reais (RM22.93 billion) in Brazil. Companies like Yinson Holdings Bhd (KL:YINSON) and Sapura Energy Bhd (KL:SAPNRG) also operate production vessels in Brazil.

Prime Minister Datuk Seri Anwar Ibrahim is planning to visit Brazilian President Luis Inacio Lula da Silva in November, which Quintella said would be an opportunity to develop dialogue in the energy sector.

“By having all the important actors in government and industry present in Brazil, we can take further steps to increase [investment in] the energy sector,” he said. “We can encourage, deepen, and forge partnerships.”

On Tuesday, Anwar told the Dewan Rakyat that Malaysia is likely to be admitted into intergovernmental organisation BRICS (which comprised Brazil, Russia, India, China and South Africa initially) as a ‘partner country’ soon.

This came after Anwar’s phone call with Lula in February, which among the discussion was Malaysia’s wish to join BRICS.

BRICS was originally conceived as an investment idea by a Goldman Sachs economist, before it was turned into an actual geopolitical bloc in 2009. South Africa joined a year later, before it was expanded by including new members Iran, Egypt, Ethiopia, and the United Arab Emirates.

Source: The Edge Malaysia

Brazil looks to expand energy trade and investment in Malaysia, says top envoy

Prime Minister Datuk Seri Anwar Ibrahim’s official visits to several foreign countries had managed to generate potential investment value of RM353.6 billion in 2023 and RM77.58 billion from January to May 2024.

According to Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa, the prime minister has made 31 official visits and working visits to 19 countries from November 2022 until May 2024.

“Among the countries visited by the prime minister and the government delegation are Saudi Arabia, Australia, Brunei Darussalam, United Arab Emirates, the Philippines, Indonesia, Japan, Germany, Kazakhstan, Cambodia, Egypt, Laos, China, Singapore, Thailand, Turkiye, Uzbekistan, Vietnam and Qatar,“ she said in a written reply published on the parliament’s website on Wednesday to a question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) who wanted to know the details of the prime minister’s official visits and the amount of investments successfully brought to Malaysia.

Zaliha said they included attending scheduled conferences and meetings at the international level which were also attended by world leaders.

“The mission and purpose of the prime minister’s official visits and working visits were to convince potential investors to invest in Malaysia in addition to strengthening, deepening and expanding bilateral cooperation between Malaysia and these countries and fostering a better understanding between the countries,” she said.

Zaliha said the purpose of Anwar’s visits was also to strengthen and boost diplomatic relations and cooperation with the countries involved as well as position Malaysia as a country that practises transparent and open economic principles.

“For example, the diplomatic relations and close cooperation between Malaysia and China, which has now reached 50 years, had been expressed through the signing of memorandums of understanding and agreements in various economic sectors which will have a positive impact on the country’s economic development,“ she said.

Source: Bernama

Anwar’s official visits abroad generate potential investments of RM353.6 bln in 2023, RM77.58 bln from January to May 2024