Prime Minister Datuk Seri Anwar Ibrahim’s recent diplomatic engagements in Egypt, Brazil and other global platforms have positioned Malaysia as a key player in balancing ties between the Global South and Western powers,

Universiti Malaya (UM) Security and International Relations analyst Collins Chong Yew Keat said Malaysia’s foreign policy, rooted in its non-aligned stance, is gaining momentum as the country expands its economic and diplomatic horizons.

“Malaysia has always been staunch in its stance on the foreign policy approach of non-alignment and has been free to dictate orientations and approaches in foreign policy direction.

“The orientation of late with the recent momentum has been quite clear, with efforts to increase fallback capacity and options with trade and economic diversification in a greater focus and courting of the Global South, while trying to maintain current economic, defence ties and capacities with the West,” he told Bernama when contacted.

Anwar concluded his 11-day international tour, which included participation in multilateral platforms such as the Arab and Islamic Summit in Riyadh, Saudi Arabia; the APEC Economic Leaders’ Week (AELW) in Lima, Peru; and the G20 Summit in Rio de Janeiro, Brazil.

During Anwar’s visits to the Middle East and Latin America, Chong pointed out that Malaysia continued its push to play a larger role beyond conventional ASEAN-centric mode.

“The overtures to and the trips to the Middle East and Latin America are seen as a continuation of Malaysia’s efforts to play a bigger role at the wider arena beyond the scope and limitations of regional power settings,” he added.

The engagements also align with the Madani framework, which seeks to integrate Malaysia’s economic transition with societal advancement.

“These overtures are part of the overall momentum to increase the parallel focus in advancing the economic transition of Malaysia with the new focus on digital economy, energy transition, and the role as a power balancer and stabiliser,” the analyst said, adding that Malaysia’s efforts aim to position the nation as a hub for investments and high-technology industries.

On ASEAN’s leadership, Chong specifically highlighted that the outcomes of Malaysia’s recent meetings are expected to give the country greater diplomatic leverage.

“New agenda setting of new causes and the affirmative, constructive, and practical action plans and policies being pledged and undertaken will be critical in ensuring that Malaysia is not only seen as the vocal and emerging power in bringing to light the strategic regional and global challenges and issues but being both pragmatic and bold in designing new approaches and solutions to both global and regional issues,” he said.

This approach, the analyst noted, involves portraying the ASEAN perspective while expanding partnerships with regions such as the Gulf Cooperation Council (CC) and the European Union (EU).

“This has been done with the courting of the GCC in further expanding the role and reach of ASEAN at the wider level, apart from the traditional ties with the EU and other established powers,” the analyst added.

Concurring with Chong, the Deputy Executive Director of Asia-Europe Institute (AEI) at Universiti Malaya, Associate Professor Dr Roy Anthony Rogers, said the Prime Minister’s recent official visits to several key nations and participation in major international summits signal Malaysia’s readiness to solidify its presence on the global stage.

He dubbed the move as a “shuttle diplomacy” to strengthen Malaysia’s bilateral and multilateral engagements, marking a proactive approach to advancing national interests.

“Anwar has adopted the shuttle diplomacy to enhance Malaysia’s national interest bilaterally by visiting the relevant countries and reaffirms our commitment to multilateralism by participating in the APEC and G20 Summits,“ he told Bernama.

Roy Anthony said the Prime Minister’s initiatives are also seen as groundwork for Malaysia’s chairmanship of ASEAN in 2025.

“The visits definitely help in promoting Malaysia’s interest that includes economic and business, diplomacy, voice heard and Malaysia as the Chair of ASEAN in 2025,“ he said.

Source: Bernama

PM Anwar’s global outreach boosts Malaysia’s diplomatic and economic positioning

The State Government will continue to attract more Chinese investments to set up factories in Sabah, increasing bilateral trade volume, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

Phoong said after hard work in recent years, Sabah’s manufacturing sector’s Gross Domestic Product (GDP) grew by 4.4 percent in 2023, the highest among all states for the year.

He said the sector’s GDP contribution had nearly fallen below seven percent, which meant that Sabah almost had no industry at all, but fortunately, the figure has now climbed to 7.3 percent.

“We succeeded in achieving the fastest GDP growth rate for the manufacturing sector last year, but we cannot stay there. We cannot be rich without jobs.

“A state’s economy will not be prosperous without an industry or if the industry is not large enough,” he told reporters after officiating the Malaysia (Sabah) – China Business Summit Economic Forum and Expo at the Sabah International Convention Centre here today.

Phoong said the State Government does not need to set specific goals for recruiting investments from China, and the most important thing is to create more platforms and opportunities so that local companies can make use of them.

“It is impossible to double the amount of Chinese investments you attract within one year.

“You build the business slowly and attract more investments. That’s what trade is like,” he said.

He said that the State Government’s industrial development areas will be expanded for renewable energy, and they are also committed to agriculture, transportation and Blue Economy.

The minister also hoped for more Chinese companies to set up factories in Sabah and cooperate with local companies to promote Sabah’s industry.

Regarding the Malaysia (Sabah) – China Business Summit, he expressed gratitude to the participants from various parts of China as well as other countries in commemorating the 50th anniversary of Malaysia – China diplomatic relations.

Phoong said the theme of the event, “Sabah: A Future Together”, was set in the belief that in creating more space to work together on investment, business opportunities and trade, a better future can be built not only for Sabah, but all the entrepreneurs who had gathered for the summit.

He hoped that it will be a fruitful and successful session throughout the three-day event, with various activities prepared for the participants such as an economic forum with seven topics including agriculture, tourism and Smart City, an expo, as well as a cultural night show on the third day, November 24.

“Sabah may be best known for its beautiful sunsets and Mount Kinabalu, but now, it has become a promised land that is filled with opportunities and potential investments.

“With that, we hope that every one of the participants of this summit will have a wonderful session throughout it, as we strive to build stronger ties together,” he said.

Source: Borneo Post

Sabah continues to attract more Chinese investments

The New Investment Incentive Framework (NIIF) will balance complying with the Global Minimum Tax (GMT) while still keeping Malaysia competitive as an investment destination, said Datuk Johan Mahmood Merican, Secretary-General of Treasury, Ministry of Finance.

He said the government needs time to develop the NIIF because it wants to improve the current sector-based incentive system to a performance-based approach.

“And for the reason why we need that extra time … the Global Minimum Tax is a classic thing where developed countries bully developing countries to prevent us from introducing tax incentives, but at the same time we need to ensure that we have a framework of incentives that still makes us competitive as an investment destination so there are some areas that we are looking at to ensure that we remain competitive,” he said in a panel session at the 50th Deloitte TaxMax event today.

The NIIF is set to be implemented in the third quarter of 2025. The government has allocated RM1 billion for the initiative.

Johan stressed that real intention of NIIF is to show how the country ensures it transitions from the quality of investments rather than just quantity.

Under the new framework, incentives will no longer be automatically be granted to investors just because they operate in a promoted sector. “(Previously) in a promoted sector, and a large investor, they tend to get incentives,” he stated.

Johan suggested that the past approach may have contributed to Malaysia’s low tax-to-gross domestic product ratio as past incentives were too broad based.

“For example, one of the big debates today is we have very high FDR, there’s a lot of interest from data centres, but if we’re not careful, we might end up having a big investment in terms of value, but at the end of the day, a lot of data centres consume a lot of electricity and water, without necessarily creating jobs,” he said.

Johan stressed that the government wants investments that create high-income jobs as part of the transition and value-added. He said the government wants investments that not only bring high-income jobs but also support local businesses, especially small and medium-sized enterprises.

Additionally, the government plans to encourage investments in less-developed areas such as Kelantan.

Johan said the NIIF is also focusing on environmental, social and governance factors as part of the country’s long-term sustainability goals.

The 50th TaxMax, themed “Fostering Economic Growth the Madani Way, saw Deloitte tax professionals and guest speakers providing commentary on Budget 2025, focusing on Malaysia’s growth that is holistic, resilient and inclusive, while also uplifting the rakyat.

Source: The Sun

New Investment Incentive Framework will balance Global Minimum Tax compliance with keeping Malaysia competitive

Malaysia remains on high alert for any shifts in U.S. policies, particularly new tariffs that could disrupt supply chains, especially in the semiconductor sector.

Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz highlighted industry concerns regarding the potential increase in import tariffs pledged during the recent U.S. presidential campaign.

“The main concern is tariff increases that could disrupt and raise the prices of semiconductor chips,” said Tengku Zafrul during a press conference here. 

He is accompanying Prime Minister Datuk Seri Anwar Ibrahim on a working visit to the G20 Summit. 

If the new U.S. administration under Donald Trump implements the proposal to raise the tariffs by 60 per cent on goods manufactured in China, there is a worry of an increase in production costs and semiconductor chip prices. 

“Price hikes could hinder the adoption of new technologies such as artificial intelligence (AI), which relies on semiconductor chips,” explained Tengku Zafrul. 

As a result, Malaysia sees the need to engage with local and multinational semiconductor companies, as well as with parties in the U.S., China, and Europe, to ensure that supply chains remain unaffected. 

Tengku Zafrul stated that his ministry is currently in discussions with companies involved in the industry to ensure the resilience of supply chains. 

“Their concern isn’t just about the supply chain but also about tariffs. There have been rumors, or during the recent U.S. presidential campaign, Trump indicated that he plans to increase tariffs in sectors like semiconductors and other strategic sectors. 

“But this is still speculative; it’s too early to say,” he remarked. 

However, he emphasized the need to be prepared for any eventuality. 

During his presidential campaign, Trump promised to increase tariffs by 10% or 20% on all goods imported into the U.S. and by as much as 60% on China-made products. 

Despite these challenges, Malaysia is seen to benefit from the ongoing trade war in terms of investment. 

“Many investors, particularly from China and Europe, are adopting a ‘+1 Strategy’ and choosing ASEAN as an alternative investment location. 

“This is because they want to reassess supply chains to ensure they are more resilient and secure,” said Tengku Zafrul. 

He highlighted Malaysia’s over 50 years of experience in the electrical and electronics (E&E) sector as a key attraction. 

Tengku Zafrul explained that so far, geopolitical tensions have had a positive spillover effect on ASEAN countries, as the bloc is viewed as strategic and neutral. 

“When we look at ASEAN, Malaysia is one of the countries selected because of our extensive experience in the electrical and electronics (E&E) field,” he said.

Source: NST

Malaysia on high alert for any shifts in U.S. policies – Tengku Zafrul

Malaysia’s investment landscape continues to grow despite global economic challenges, with approved investments reaching RM160 billion in the first half of 2024, an 18 per cent year-on-year (YoY) increase.

Over 60 per cent of these investments, totaling RM97.2 billion, were channeled into the rapidly expanding modern services sector, resulting in over 79,000 new jobs.

Speaking at a recent InvestKL event, Trade, Investment, and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz emphasised the importance of leveraging this sector to transition from traditional manufacturing to a technology-driven economy.

Greater Kuala Lumpur has become a hub for global tech investments, with major companies like Google, Amazon, and Microsoft establishing cloud and data centers, while Oracle has committed to investing over US$6.5 billion to create a public cloud region in Malaysia. 

Honeywell, which set up its regional headquarters in Greater KL in 2017, has invested more than US$500 million, adding executive roles and strengthening partnerships with key local companies such as PETRONAS, KLIA, Malaysia Airlines, and AirAsia.

The presence of companies like AstraZeneca and Kamstrup further highlights Malaysia’s robust ecosystem, positioning Greater KL as a centre for innovation, technology, and growth. 

Datuk Muhammad Azmi Zulkifli, CEO of InvestKL, praised the country’s strategic efforts to attract high-value investments in areas like artificial intelligence (AI), data analytics, and smart city solutions.

“Modern services are the frontier for economic growth. It’s a digital-based economy that supports traditional sectors and drives competitiveness,” he said.

Azmi said that InvestKL’s collaborations are strengthening the supply chain and nurturing talent to help Malaysia achieve its goal of becoming a high-income nation by 2030.

However, he also acknowledged ongoing challenges, such as the need for clearer policies and a skilled workforce. 

“Malaysia must maintain its reputation for ease of doing business with adaptive, forward-thinking policies. Bringing back skilled individuals who have left Malaysia is critical to supporting our growth,” Azmi said.

The InvestKL event also featured insights from key institutions, including the World Bank, the Malaysian Institute of Economic Research (MIER), and Permodalan Nasional Bhd (PNB). 

Dr. Anthony Dass of MIER noted, “To sustain growth, Malaysia must modernise its manufacturing sectors and integrate modern services such as technology, communication, and business solutions.” 

PNB’s chief economist, Dr. Kamaruddin Mohd Nor, underscored the link between innovation and economic progress. 

“Economic growth hinges on innovation. To achieve this, we need a conducive ecosystem to foster innovation where startups and new ideas can come to fruition and deliver returns,” he said.

Kamaruddin said that many countries that rank high on the Global Innovation Index by the World Intellectual Property Organisation, prioritise institutional support, research, human capital, ease of doing business, and access to credit. 

“Malaysia should focus on encouraging innovation, especially in academic research and development.”

Panellist Yu Cao, an economist at the World Bank’s East Asia and Pacific Chief Economist Research Centre, emphasised the evolving relationship between services and manufacturing. 

“For Malaysia to sustain its growth, it must modernise its manufacturing sectors. International studies show a positive link between modern services, such as technology, communication, information, and business services, with the manufacturing sector.”

Malaysia must leverage this sector to transition from traditional manufacturing to a technology-driven economy, says the trade, investment, and industry minister.

Source: NST

Malaysia’s investment landscape improving despite global turmoil

Sarawak has recorded approved investments totalling RM10.43 billion across 212 projects for the third quarter of this year (3Q2024), which are expected to create about 5,400 new job opportunities, the Sarawak State Assembly was told on Wednesday.

Sarawak Minister of International Trade, Industry and Investment, Datuk Amar Awang Tengah Ali Hasan, said domestic direct investments (DDIs), which included reinvestments by existing foreign investors, utilising domestic funding, amounted to RM7.18 billion, while foreign direct investments (FDIs) contributed RM3.25 billion.

“The manufacturing sector was the largest contributor at 55.7%, attracting investments worth RM5.81 billion, followed by the services sector at 28.5% or RM2.97 billion, and the primary sector at 15.8% or RM1.65 billion. 

“These manufacturing projects were mainly in chemical and chemical products, totalling RM2 billion (urea, melamine and fertiliser); electrical and electronic products (solar ingots, wafer, cell and module), amounting to RM1.2 billion; and non-metallic mineral products (cement and clinker), totalling RM0.8 billion,” he said in his winding-up speech for his ministry here.

Awang Tengah, who is also Sarawak deputy premier, said the state continued to attract and facilitate investors in high-tech industries, including electronics, sustainable fuels, renewable energy and composite materials.

He said the amendment to the Electricity Ordinance last year had created more opportunities for investors to be involved in low-carbon power generation.

“For example, a recently signed joint-study agreement between Sarawak and an investor from Abu Dhabi will explore the floating solar power project’s potential in Murum.

“This project will further transform Sarawak’s energy landscape towards more renewable resources, spurring industrial advancement, as well as attracting green and sustainable investments,” he added.

Source: Bernama

Sarawak secured investments worth RM10.43b across 212 projects in 3Q2024, expects to create 5,400 jobs — state minister

Malaysia’s record achievement in attracting foreign direct investment (FDI) underscores its growing prominence as a key economic player within the ASEAN region.

Prime Minister Datuk Seri Anwar Ibrahim has described ASEAN as a “vital trade platform,” offering “simplified access to ten markets in Southeast Asia”, according to Forbes in an article released today.

Anwar, who is also the Finance Minister, recently sat down with Forbes to discuss how the country’s resources and regional connections can benefit companies seeking to establish a presence in the region.

During the interview, the Prime Minister also highlighted the country’s central role within the bloc, emphasising actions to streamline trade flows and reduce bureaucratic hurdles to attract foreign investment.

He also explained Malaysia’s strategic geographic position, which enables broader trade opportunities with non-ASEAN partners, including Australia and India.

Apart from that, the Prime Minister also emphasised trade facilitation and economic partnerships, which reinforces Malaysia’s regional relevance.

The article also pointed out that by integrating Malaysia into a larger regional strategy, companies can unlock its potential as a gateway to Southeast Asia while navigating the complexities of an increasingly interconnected global economy. Nevertheless, it said businesses should prioritise analytical evaluations of Malaysia’s policies and market conditions rather than rely solely on government policies.

Within this dynamic regional landscape, the article said Malaysia exemplifies ASEAN’s economic appeal, attracting a record US$74 billion in approved FDIs in 2023 – the highest in its history.

By mid-2024, the article noted that Malaysia had already secured an additional US$36 billion, further cementing its pivotal role within ASEAN and highlighting the region’s attractiveness to global investors.

Source: Bernama

Malaysia’s record FDI solidifies position as key economic player in ASEAN – Forbes

As Southeast Asia cements its role as a key player in the global economy, Malaysia is positioning itself as a prime entry point for businesses seeking to tap into the region’s growing market.

In a recent interview with Forbes, Prime Minister Datuk Seri Anwar Ibrahim outlined Malaysia’s unique advantages and its efforts to attract foreign investment by leveraging its strategic location and strong ties within Asean.

Anwar described Asean as a “vital trade platform” that simplifies access to ten Southeast Asian markets.

He highlighted Malaysia’s central role in the bloc, emphasizing government initiatives to streamline trade processes and reduce bureaucratic hurdles to draw global businesses.

Additionally, the report said that Anwar noted Malaysia’s strategic geographic location, which enables trade expansion not only within ASEAN but also with partners such as India and Australia. 

“Malaysia’s strategic geographic location not only enhances intra-Asean trade but also offers significant opportunities with key non-Asean partners,” Anwar told Forbes. 

To support Anwar’s analysis, Chidiebere Ogbonnaya, a professor of human resource management at King’s Business School, King’s College London said Malaysia’s commitment to trade facilitation reflects a broader global trend of governments strategically positioning themselves to integrate into and maximise the benefits of global value chains.

“Countries like Malaysia are leveraging their location and policy frameworks not only to attract investment but also to embed themselves within the production networks of advanced and emerging economies,” he explained to Forbes. 

In the report, Ogbonnaya also suggested that Malaysia exemplifies the theoretical framework of global value chain integration, where state-led initiatives and strategic geographic positioning enable firms to streamline cross-border operations, integrate into regional production systems, and enhance their participation in interconnected global economies.

According to Forbes, Malaysia’s robust infrastructure, thriving digital economy, and proactive trade policies make it an attractive destination for firms aiming to establish a presence in Southeast Asia.

However, Forbes said while these factors present clear opportunities, business leaders are encouraged to carefully assess Malaysia’s market conditions and regulatory landscape to maximise their potential for success. 

Overall, Forbes said Anwar’s emphasis on trade facilitation reflects Malaysia’s ambition to serve as a key regional hub.

Nevertheless, the report said businesses should prioritise analytical evaluations of Malaysia’s policies and market conditions rather than rely solely on government-promoted narratives.

By integrating Malaysia into a larger regional strategy, firms can unlock its potential as a gateway to Southeast Asia while navigating the complexities of an increasingly interconnected global economy, it added.

Source: NST

PM positions Malaysia as prime entry point into Southeast Asia – report

International partnerships and foreign investments, especially in the green technology sector, should enable Sarawak to record a double Gross Domestic Product (GDP) of RM280 billion by 2030, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

According to him, Sarawak is expected to achieve a double GDP from RM140 billion in 2022 to RM280 billion by 2030.

“Under the Post-Covid19 Development Strategy 2030 (PCDS 2030), we have three main thrusts, namely economic prosperity, social inclusion and environmental sustainability, and of course, to implement them, the enablers are innovation, digital infrastructure and education.

“This ecosystem that we will implement and by the end of it, by 2030, we will be able to achieve a GDP of RM140 billion to RM280 billion, which is our target,” he said when delivering a keynote address for a RAM Conference themed ‘Advancing an Inclusive and Sustainable Future – Spotlight on Sarawak’, at a hotel here today.

On investments, Abang Johari said Sarawak was currently collaborating with Japan and Korea in hydrogen production, which should produce about 240,000 tonnes of hydrogen to be exported to the two countries by 2028.

Sarawak is the first state in Malaysia to have carbon trading legislation, namely the Environment (Reduction of Greenhouse Gas Emissions) Ordinance 2023, which took effect on March 1 this year.

“The federal government is paying attention to this matter. They came to Sarawak to collaborate on the legislation that we had enacted for them to introduce in (Parliament) in December.

“We (Sarawak) are the first to enforce this legislation.”

With regard to PCDS 2030, Abang Johari stressed that Sarawak was very concerned about the climate change happening now.

He added that the state government had been actively involved in tree-planting activities, especially for mangrove forests, deemed as the best carbon storage compared to regular forests.

However, he said to carry out environmental sustainability activities, especially in addressing climate change in line with efforts towards achieving the ‘Net Zero 2050’ goal, it would require large funding.

“In addressing global climate change, one problem faced is finance because any approach in addressing climate change, you need a large capital in addition to equipment in our efforts towards achieving Net Zero 2050.

“For that reason, this is where developed countries play their role in financing all the related projects. I hope the financial community would find ways and approaches to finance all these projects.”

Also present at the event were Deputy Minister of Energy and Environmental Sustainability Sarawak Datuk Dr Hazland Abang Hipni; Development Bank of Sarawak (DBOS) chairman Tan Sri Datuk Amar Mohd Morshidi Abdul Ghani; and RAM Holdings chairman Datuk Kamaruddin Taib.

RAM Holdings Bhd operates as a holding company and, through its subsidiaries, provides independent credit ratings, research, training, risk analysis, environment-social-governance (ESG) analysis, and bond-pricing services.

During the RAM Sustainability Awards 2024 presentation, Abang Johari was honoured with the ‘Sustainability Steward of the Year’.

Three other ‘RAM Sustainability Awards’ were also presented to Press Metal, Sarawak Energy Bhd, and Sarawak Oil Palms.

Source: Borneo Post

Premier: Global collabs among key boosts for S’wak to post RM280 bln in GDP by 2030

Prime Minister Datuk Seri Anwar Ibrahim held a meeting with the President of France, Emmanuel Macron, on the sidelines of the G20 Summit in Rio de Janeiro, Brazil.

“During this meeting, we expressed our commitment to continue to strengthen relations and cooperation between the two countries.

“It covers the fields of trade, investment, tourism and defence as well as cooperation in the field of Artificial Intelligence (AI),” he told Malaysian reporters here on Monday.

 Datuk Seri Anwar Ibrahim also held a bilateral meeting with the French president in conjunction with the G20 Summit held at the Museum of Modern Art (MAM) today.

Anwar and Macron discussed Malaysia’s role as Asean chair 2025 and the Malaysian prime minister expressed his appreciation to Macron for his support through the Asean-France Development Cooperation.

In addition, the two leaders also had time to discuss the genocide that occurred in Palestine which requires a ceasefire as soon as possible and the cooperation of all parties to end the suffering of the people there.

Also present during the meeting was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Source: Bernama

Anwar, Macron discuss trade, AI collaboration at G20 summit