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The Star
19 hours ago
- Business
- The Star
Positioning Malaysia as a leader
MALAYSIA'S remarkable 11-spot jump in the International Institute for Management Development (IMD) World Competitiveness Ranking (WCR) – from 34th position in 2024 to 23rd in 2025 – is more than just a statistical victory. It is a powerful testament to the effective implementation of the Madani government's economic reforms, including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance is no small feat. The Investment, Trade and Industry Ministry (Miti) is especially pleased that our industrial reforms implemented under the New Industrial Masterplan (NIMP) 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19); and labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. The reform engine: Miti's coordinating role This surge in competitiveness is not accidental. It is the result of intentional, coordinated and at times, politically difficult reforms. It reflects a responsible governance approach under Datuk Seri Anwar Ibrahim's Madani Economy framework and the deft execution by the relevant economic ministries and agencies including Miti, which has led the implementation of Malaysia's revamped trade, investment and industrial strategies. Miti's agency – the Malaysia Productivity Corporation (MPC) – has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. Miti's leadership of the National Competitiveness Council together with the Finance Ministry has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government – part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels, has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor – rising 11 spots to 6th globally – is also clear evidence of targeted policy outcomes under Miti's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (Mida), and improved trade promotion by the Malaysia External Trade Development Corporation (Matrade). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the NIMP 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves, but they do matter. They serve as confidence benchmarks to global markets, foreign investors and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions, empowered with the political will, mandate and right leadership are perfectly capable of executing coherent reform agendas for the nation. The road ahead: Maintain the momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags, particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, Miti's role will be pivotal. The ministry will continue working closely with education and human resource agencies to ensure industrial strategies are matched by robust talent development and pipelines. Initiatives like Academy in Industry programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in R&D and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements such as agile regulatory sandboxes, performance-based innovation grants, and a national work-integrated and lifelong learning agenda as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea and Sweden, which lead in patents, intellectual property and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy and biotech. Incentivising private sector innovation, reforming procurement to favour innovative solutions and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high-impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead, especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. Tengku Datuk Seri Zafrul Abdul Aziz is the Investment, Trade and Industry Minister. The views expressed here are his own.
New Straits Times
3 days ago
- Business
- New Straits Times
Talent Will Determine Malaysia's High-Tech Ascent
Malaysia is entering a critical phase in its economic trajectory. The government's National Semiconductor Strategy (NSS), complementing the New Industrial Master Plan (NIMP) 2030 anchored by Ministry of Investment, Trade, and Industry (MITI), signals a shift toward deep technology, advanced manufacturing, and innovation-led growth. Malaysia's efforts are already bearing fruit. Apart from record breaking investments in the past year driven by surge in technology and manufacturing sector, our improvement in the World Competitiveness Rankings by 11 spots, from 34 to 23, in the annual ranking published by Institute of Management Development reflects this shift. At the core of this transformation lies the semiconductor industry—a sector that is not only economically strategic but also geopolitically consequential. Malaysia contributes around 13% of global back-end assembly, test, and packaging (ATP). But long-term competitiveness cannot be built on volume alone. Upstream capabilities in chip design, wafer fabrication, and IP creation are now prerequisites for value capture. During the NSS launch, Prime Minister Datuk Seri Anwar Ibrahim set a bold ambition: attract RM500 billion in semiconductor investment by 2030 and train 60,000 high-skilled engineers. NIMP 2030 reinforces this with a broader aim to boost high-tech manufacturing, double median wages to RM4,500, and position Malaysia as a regional tech hub. These plans are well-timed and well-articulated—but they face a critical constraint: human capital. The Talent Bottleneck: Malaysia's Biggest Risk Factor Malaysia has no shortage of university graduates, yet employers continue to report shortages in areas most relevant to frontier tech industries. This talent gap is a major barrier to entry into upstream semiconductor activities, where global competition is fiercest. The problem is not unique to Malaysia. Globally, the semiconductor sector faces a forecasted shortfall of over 1 million skilled workers by 2030, according to reports by research houses. However, countries are responding with decisive and focused interventions. Local Models: K‑Youth and Industry-Led Programmes Malaysia has already begun investing in new workforce development models. One example is government-linked Khazanah Nasional's K‑Youth Development Programme. Having trained over 8,000 participants with an 83% placement rate, the programme combines technical training, soft skills, and paid industry placements, co-designed with employers. RM200 million has been committed to train 11,000 more in 2025. Additionally, 42 Malaysia (42MY)—a free, peer-to-peer coding school established by Khazanah—focuses on digital and programming skills that are increasingly relevant in chip design, embedded systems, and AI-enhanced manufacturing. Apart from GLCs, multinationals are also stepping up. For example, Infineon Technologies, which is investing RM25 billion in Melaka, has partnered with local polytechnics to build a semiconductor talent pipeline with skills-based training. Intel Malaysia's latest RM30 billion expansion in Penang includes a commitment to upskilling over 4,000 local engineers. Internationally, Malaysia can draw useful lessons from peer economies. TSMC's Semiconductor Academy aligns curriculum across universities with the direct needs of chip fabrication and design. Meanwhile, India's Semiconductor Mission is setting up chip design and packaging skill hubs through its IIT system and private sector partners like Vedanta-Foxconn. Without a comprehensive approach to workforce development—backed by industry, GLCs, and academia—Malaysia risks missing the window. Linking Talent to Capital and Capability Beyond training, Malaysia's long-term semiconductor success requires simultaneous investment in ecosystem resilience and industrial capability. And again, capacity building initiatives such as this requires push from government-linked companies with national interest mandate. Through catalytic capital deployment under programs like Dana Impak, also introduced by Khazanah to transform firms and cultivate innovation, Malaysia seeks to unlock high-value segments in the global semiconductor chain. These efforts aim to deepen local value-creation and future-proof Malaysia's position in global supply chains. By aligning talent strategies, capital investment and vendor development, Malaysia is leveraging a once-in-a-generation opportunity to create a resilient, innovation-led economy that celebrates the ethos of establishing a nation that creates. Policy Implications and Execution Priorities To convert plans into capabilities, three actions are critical. First is deepening Industry–Talent Integration. Scale up models like K‑Youth and university-industry consortia to target advanced semiconductor roles. Second, is to accelerate R&D–Training Hubs. Fast-track the IC Design Park in Selangor and the Kerian Integrated Circuit Hub in Perak—while ensuring they include training centres in their architecture. Third, and most critical, is to strengthen governance and coordination across stakeholders. A Semiconductor Talent Council—housed within MITI or in collaboration with agencies like HRD Corp—should track skills supply and demand, fund upskilling programmes, and ensure inter-agency alignment across MOHE, MOF, GLICs like Khazanah, EPF, KWAP and other private sector investors in a whole of nation approach. Competing on Talent, Not Tax Incentives Malaysia cannot out-subsidise or out-infrastructure global competitors. But it can out-execute in talent development—if the effort is strategic, coordinated, and industry-driven. Khazanah's K‑Youth, Infineon's polytechnic partnerships, and Intel's upskilling initiative provide promising blueprints. The challenge is to scale fast and deepen specialisation, aligning with NSS goals. Semiconductors are not just a high-value export; they are the gateway to an entire future economy. Malaysia's competitiveness—like its sovereignty—will increasingly depend on its ability to create and retain deep tech talent. GLCs must continue to act as enablers of Malaysia's new economy, giving opportunities to skill local talents who will be the drivers that will lift the ceiling and achieve the lofty ambitions set by the Madani Economic Framework. More GLCs should redirect their effort in cultivating technology sectors and move us up the value chain as nations that innovate and create, securing our economic future. We must act faster. In short: Malaysia as a whole must invest in people as aggressively as we invest in plants. That will determine whether we are merely part of the global semiconductor conversation—or helping to lead it.
The Star
12-06-2025
- Business
- The Star
George Kent advances smart metering with the nation's first branded ultrasonic water meter
PETALING JAYA: George Kent (M) Bhd has announced a strategic partnership with Shanghai-listed Qingdao Topscomm Communication Co Ltd (Topscomm) for the development of GK Ultra, the nation's first locally branded ultrasonic water meter. In a statement, George Kent said the smart metering solution that is currently under development and engineered to meet international standards and support global market expansion. 'GK Ultra also supports Malaysia's National Industrial Master Plan 2030 (NIMP), which aims to position Malaysia as a high-technology and innovation-driven economy. 'As the only Malaysian company to introduce a locally branded smart ultrasonic water meter to the market, it aligns with NIMP's goals of digitalisation, promoting homegrown innovation and high-technology exports.' George Kent added that GK Ultra aims to deliver a compelling alternative with up to four times the accuracy of conventional mechanical water meters, along with superior durability and digital connectivity. 'Utilising ultrasonic technology with no moving parts, GK Ultra is embedded with Internet-of-Things and Artificial Intelligence capabilities for real-time data monitoring, remote meter reading, leak detection, and predictive maintenance, empowering utilities worldwide to transition toward intelligent, data-driven water management.'
New Straits Times
12-06-2025
- Business
- New Straits Times
George Kent, China's Qingdao to develop Malaysia's first ultrasonic water meter
KUALA LUMPUR: George Kent (Malaysia) Bhd has partnered with China's Qingdao Topscomm Communication Co Ltd to develop GK Ultra, Malaysia's first locally branded ultrasonic water meter. The announcement follows the establishment of GK SuperTtech Sdn Bhd in February, a subsidiary dedicated to driving high-technology and artificial intelligence (AI) innovations. In a statement, George Kent said the collaboration paves the way for the development of the next-generation smart metering solution designed to meet international standards and support global market expansion. The initiative is aligned with National Industrial Master Plan 2030 (NIMP), which aims to position Malaysia as a high-technology and innovation-driven economy. As the only Malaysian company introducing a locally branded smart ultrasonic water meter to the market, George Kent said the initiative aligns with NIMP's goals of digitalisation, promoting homegrown innovation and high-technology exports. GK Ultra aims to deliver a compelling alternative with up to four times the accuracy of conventional mechanical water meters, along with superior durability and digital connectivity. Utilising ultrasonic technology with no moving parts, GK Ultra is embedded with Internet-of-Things (IoT) and AI capabilities for real-time data monitoring, remote meter reading, leak detection and predictive maintenance. The features empower utilities worldwide to transition toward intelligent, data-driven water management. The company said with global momentum behind smart cities and digital infrastructure, the smart ultrasonic water meter market is projected to grow from US$3.85 billion in 2024 to US$9.65 billion by 2037, according to Research Nester Analytics LLC. George Kent executive chairman Tan Sri Tan Kay Hock said GK Ultra marks a pivotal point in George Kent's evolution, from a trusted national brand to a global technology player. "We are proud to deliver a product that competes on the world stage, aligns with our vision of digital transformation and supports infrastructure sustainability for our customers globally," he added.
New Straits Times
05-06-2025
- Business
- New Straits Times
MIDF leveraging Islamic finance to drive industrial transformation
KUALA LUMPUR: The Malaysian Industrial Development Finance Bhd (MIDF) is leveraging Islamic finance to accelerate the country's industrial transformation, particularly in high-growth sectors such as advanced manufacturing, green technology, the digital economy, and halal industries. Its vice president and head of marketing and business advisory, Fadzlan Abu Bakar said Islamic finance serves as a strategic enabler to support Malaysia's developmental goals under the New Industrial Master Plan (NIMP) 2030. "We view Islamic finance not only as a funding tool but as a catalyst that supports ethical, inclusive, and sustainable industrial growth," he said in a statement. As a financial services provider, MIDF offers Shariah-compliant financing solutions that promote interest-free funding and equitable risk-sharing, benefitting especially small and medium enterprises (SMEs) seeking to scale operations and adopt new technologies. Among its flagship programmes is the Halal Accreditation and Technology Improvement (HATI) scheme, which addresses two key challenges faced by SMEs — halal certification and technological enhancement. "Through an RM100 million fund allocation, the scheme assists SMEs in sectors such as food and beverages, cosmetics, logistics, and pharmaceuticals in obtaining halal certification while upgrading their technological capabilities," it said. It noted that this initiative was carried out in collaboration with the Halal Development Corporation (HDC), Department of Islamic Development Malaysia (JAKIM), and other strategic partners. MIDF also plans to roll out more Shariah-compliant financing instruments over the next three to five years, tailored to SMEs and mid-sized firms while accelerating the digitalisation of Islamic finance delivery through fintech platforms. To this end, Fadzlan said MIDF is working on expanding equity-based instruments like Musharakah and Mudarabah, and exploring peer-to-peer Islamic financing and blockchain-based platforms to improve transparency and accessibility. It also aims to integrate environmental, social and governance (ESG) elements into its Islamic finance framework to ensure alignment with Malaysia's sustainability agenda. MIDF currently manages several ESG-focused government funds, including the Sustainable and Green Biz Financing and the Sustainable Mobility Biz Financing schemes. "These initiatives support Malaysian businesses in adopting cleaner technologies, improving energy efficiency, and contributing to the growth of the electric vehicle ecosystem. "MIDF will continue to align its financing mandates with key national policies such as the National Energy Transition Roadmap and the 12th Malaysia Plan to advance the country's low-carbon transition and promote an inclusive, sustainable industrial ecosystem," it added. Meanwhile, in conjunction with Expo 2025 Osaka, MIDF hosted a forum titled "The Benefits of Islamic Finance in Supporting a Resilient Global Economy" at the Business Hall of the Malaysia Pavilion. The forum provided an insight on Islamic finance's contribution in fostering a more resilient and inclusive global financial system, at the same time reinforcing Malaysia's position as a thought leader in Islamic finance and sustainable investment.
