Latest news with #GeoffreyWilliams
New Straits Times
13-06-2025
- Business
- New Straits Times
Malaysia remains attractive investment destination
MALAYSIA continues to draw strong investor interest despite global headwinds. The Malaysian Investment Development Authority (MIDA) said that the country has secured RM89.8 billion in approved investments for the first quarter of 2025. This marks a steady 3.7 per cent year-on-year increase, and is set to generate over 33,300 new employment opportunities for Malaysians. Last year, Malaysia recorded RM378.5 billion in approved investments, the highest in the nation's history. According to MIDA, foreign investments dominated the investment landscape for Q1 of 2025, contributing RM60.4 billion or 67.3 per cent of total investments, highlighting Malaysia's position as a top-tier investment destination. REMAINING RESILIENT Although Malaysia cannot escape shifts in the global economy, the country can prepare and remain resilient. Economist Dr Geoffrey Williams said national stability — reflected in stable prices, consistent growth and predictable policies — is key to maintaining business and household confidence. He added that such stability, supported by social cohesion and clear policies, underpins Malaysia's economic resilience and competitiveness. Universiti Sains Malaysia political analyst Professor Datuk Dr Sivamurugan Pandian said that stability builds trust and confidence, especially among investors and in terms of attracting foreign direct investment. "Without stability, it sends various signals to investors, as though the environment is uncertain and trust in the government is eroding, even if much of it is sentiment or perception," the analyst added. He said that the end result always becomes a benchmark or indicator of the government's strength. "Political rhetoric, when backed by implementation, delivery systems, structures or trusted institutions that produce solid results, will attract investors, even more so if the policy is investor-friendly, with a flexible approach and mechanism," he explained.
New Straits Times
06-06-2025
- Business
- New Straits Times
Sime Darby Property sets new wage benchmark
KUALA LUMPUR: Sime Darby Property Bhd's move to raise the minimum living wage for its B40 employees by 80 per cent, from RM1,500 to RM2,700 per month in 2024, could set a new benchmark for the private sector, economists say. Economist Dr Geoffrey Williams described the initiative as a positive step, even if it falls short of the RM3,100 monthly living wage recommended by Bank Negara Malaysia and government-linked investment companies (GLICs). On May 1, Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (KWAP), Lembaga Tabung Angkatan Tentera and Lembaga Tabung Haji announced the full implementation of a living wage policy for all their permanent Malaysian employees. The policy is part of the Finance Ministry's GEAR-uP initiative, which aims to align GLIC efforts to boost growth in key sectors. "The six GLICs have committed to the RM3,100 living wage in line with the Belanjawanku and Bank Negara estimates. So the RM2,700 is a little below that but still a good threshold," Williams told Business Times. Williams added that the decision reflects the ability of large companies, particularly government-linked companies and GLICs, to increase base pay for lower-income workers. "This is a good move that will clearly help their lower-paid staff. However, they should disclose how many people will benefit," he said. As of February 1, 2025, the national minimum wage in Malaysia stands at RM1,700 for all employees in businesses with five or more staff, as well as those under the MASCO (Malaysia SME and Small to Medium Enterprises) sector. Employers with fewer than five workers have until August 1, 2025, to comply. Putra Business School economic analyst Prof Dr Ahmed Razman Abdul Latiff praised the move by Sime Darby Property, noting that the RM2,700 wage is close to the national median income level. Razman said this has wider implications than just simply providing better financial support, as higher wages mean the workers will have a higher contribution to their Employees Provident Fund (EPF) account, which subsequently will help them to have a higher quality of life after retirement. "This decision should be emulated by other large corporations, especially for those hiring many workers who live in urban areas. "It will also reduce the salary inequality between top bosses and their workers, where the gap is currently increasing," he told the Business Times. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the decision could set a new benchmark and attract talent in a competitive labour market. Citing the trend in the labour markets, Afzanizam said the own-account workers (OAW) have been growing quite persistently at 2.9 per cent per annum between 2019 and 2024 to 3.1 million. "With youth increasingly turning to gig work and self-employment, substantial wage increases can help address labour shortages, though benefits like flexible hours and career development are also key," he said. Afzanizam added that while RM2,700 is a good start, the adequacy of income depends on location and family size. Citing EPF's Belanjawanku guide, he noted that a single person in the Klang Valley typically needs RM2,800 monthly, while a family with one child may need over RM6,400. "Hence, we need to understand that salaries should reflect the skillset and qualification but at the same time, real income, which will consider the cost of living, also matters. This may require different policies and approaches in order to ensure that the cost of living will remain manageable," he said. Meanwhile, Sime Darby Property chairman Datuk Rizal Rickman Ramli said the wage adjustment took into account the increased cost of living and aimed to provide better financial support for lower-income employees. "This initiative highlights our commitment to financial stability and the well-being of our workforce, particularly those most impacted by rising living costs," he said in the group's integrated annual report 2024. As of March 28, Sime Darby Property's major shareholders included PNB's unit Amanah Saham Bumiputera with a 36.73 per cent stake, EPF with 11.08 per cent, KWAP with 6.25 per cent and PNB with 5.23 per cent.
Free Malaysia Today
28-05-2025
- Business
- Free Malaysia Today
Next economy minister should be a technocrat, says economist
Economist Geoffrey Williams said finance minister II Amir Hamzah Azizan (left) is an example of a strong technocrat leader, while former EPF chief strategy officer Nurhisham Hussein is an ideal candidate for the post of economy minister. PETALING JAYA : The post of economy minister should be filled by a technocrat instead of a career politician once Rafizi Ramli's resignation takes effect on June 17, an economist said. Geoffrey Williams said that as the ministry was responsible for devising policies and not implementing them, its head should be able to provide technical economic insight. 'They need to be good at identifying strategic reform priorities and to motivate the need for reform. 'They also need to oversee the design of these policies, and ensure they are feasible for implementation,' he told FMT. Earlier today, Rafizi announced his resignation as economy minister following his recent loss of PKR's deputy presidency in the party polls to Nurul Izzah Anwar. Williams said the future economy minister should not be 'bogged down in politics', as it would cause the ministry to fail in the execution of its function from the outset. 'If it is headed by a charismatic and ambitious politician, it will be used to push career agendas rather than necessary long-term reforms. 'This will damage both the policy design process and the government's credibility, because all reforms will be driven by personal and political agendas,' he said. Williams pointed to the 'successful' appointment of Amir Hamzah Azizan as finance minister II as an example of a strong and largely apolitical technocrat leader. He suggested that Nurhisham Hussein, the senior director of economics and finance in the Prime Minister's Office, would make an ideal candidate. 'He has a strong economic background and a detailed knowledge of policy implementation and how to navigate administrative hurdles,' he said. However, Akademi Nusantara's Azmi Hassan pointed out that appointing technocrats such as Amir would require them to first be appointed as a senator. 'I'm not sure if there's any vacancy for senators except for (investment, trade and industry minister) Tengku Zafrul Aziz's, as his Senate term ends in December,' he said.
The Star
26-05-2025
- Business
- The Star
Removing barriers will hasten integration, say experts
PETALING JAYA: Asean countries must tackle persistent regulatory and financial barriers that continue to hinder regional economic integration, say experts. Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium enterprises (SMEs). 'Asean needs to establish a framework to identify regulatory barriers across all areas. 'This process should systematically remove or harmonise regulations at the lowest cost,' he said when contacted. Williams said there are still many constraints on simple issues, such as setting up businesses, bank accounts, and even payment transfers. 'Harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential,' he said. Asean countries still vary greatly in economic development, political systems, and economic self-interests. This variance, he said, is holding back closer integration. 'Tourism provides a good model because private-sector-driven business models make travel, accommodation and currency exchange easy. 'So integration is not impossible if it is market-driven, but it is proving difficult if it is government-driven,' he explained. He said Asean can follow a market-driven integration model using technology platforms and e-commerce which avoids brick-and-mortar business models and moves online. 'An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. 'Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community. 'This would allow foreign investors to move easily around the 10 member states,' he argued. Centre for Market Education chief executive officer Carmelo Ferlito said going cashless can become a burden if a person needs to have a different app in each country. 'I travel often to Indonesia, and I struggled with their cashless system, which must be linked to a local bank. 'So I think having more integration is good, but in reality, it is better to increase options rather than reducing them,' said the economist. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a strategic vision for Asean's next phase of growth. Under Malaysia's Asean chairmanship this year, he emphasized stronger economic integration, trade expansion, and cross-border energy connectivity as key pillars.
The Star
26-05-2025
- Business
- The Star
Address long-standing trade barriers, Asean members told
PETALING JAYA: Economists are calling for Asean countries to address long-standing barriers that hinder economic integration among member states. Despite close and strong cooperation, the situation can be improved by addressing key regulatory hurdles and inconsistent financial systems. ALSO READ: Asean leaders assemble in KL today for key summit, related meetings Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium businesses (SMEs). "Asean needs to establish a framework to identify regulatory barriers across all areas and begin a process to systematically remove them or to harmonise regulations at the lowest cost," he said, when contacted yesterday. Malaysia, as Asean Chair is the host of 46th Asean Summit and Related Summits. Wisma Putra is taking the lead in organising these summits under Malaysia's Asean chairmanship this year with the theme 'Inclusivity and Sustainability'. Two other high-level meetings – the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Economic Summit – will also be held. Williams said there are still many constraints on simple issues such as setting up businesses, bank accounts and even payment transfers. "So harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential. "Even issues related to the free movement of workers are underdeveloped as Asean members protect their own labour markets," added Williams ALSO READ: Asean-GCC-China model will help forge inclusive, sustainable future, says Anwar Asean countries, said Williams, are still very different in terms of economic development, political systems and the economic self-interests of each country and this holds back closer integration. "Tourism provides a good model because private sector driven business models make travel, accommodation and currency exchange easy. "So integration is not impossible if it is market driven but it is proving difficult if it is government driven," he explained. He said Asean cannot follow the integration model of the EU for example because that is government driven but it can follow a market driven integration model using technology platforms and e-commerce which avoid brick-and-mortar business models and move online. "An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. "Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community allowing foreign investors to move easily around the 10-member states," he argued. Centre for Market Education chief executive officer Carmelo Ferlito said forcing cashless can become a burden if a person needs to have an app in each country, but instead such initiative can be linked with a local bank account. "I travel often to Indonesia and I struggled with their cashless system, which must be linked to a local bank. "Some places do not accept any other form of payment. "So I think having more integration is good but in reality it is better to increase options rather than reducing them," said the economist. He also said that abolishing barriers to entry was much more effective rather than thinking about cashless. "Good infrastructure and fast procedures, this is what travellers want. Cashless is an option but not a game changer. More tourism or travel affects the generality of the economy," said Ferlito. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a bold strategic vision for Asean's next phase of growth, emphasising stronger economic integration, trade expansion and cross-border energy connectivity as key pillars under Malaysia's Asean chairmanship this year. Responding to questions on the direction of the regional bloc amid growing global geopolitical competition, Anwar said Malaysia is determined to drive Asean beyond its traditional role as a neutral platform towards becoming a more cohesive, values-driven force in the Indo-Pacific. "As part of our thrust this year, we are focusing on strengthening Asean's cohesiveness, increasing economic interest and trade, and boosting investments among member countries," he said.
