Latest news with #RM89.8
New Straits Times
2 days ago
- Business
- New Straits Times
Reform agenda on track, investor confidence growing
KUALA LUMPUR: The Prime Minister's Office rejected claims that reforms are not taking place, calling them unfounded. The prime minister's senior press secretary, Tunku Nashrul Abaidah, said the reform agenda is advancing steadily through structured action under the Madani Economy framework. "As presented by the Prime Minister (Datuk Seri Anwar Ibrahim) through the Madani Economy framework, the core objective is to raise the ceiling by strengthening the nation's economic resilience and ensuring the continued well-being of the people," he said during the Prime Minister's Office daily briefing today. Tunku Nashrul said Malaysia recorded RM89.8 billion in approved investments for the first quarter of this year, marking a 3.7 per cent increase compared to the same period last year, despite global economic challenges. "These investments are expected to generate 1,600 new projects and over 33,000 job opportunities across the country." In the microelectronics and semiconductor sectors, he said Malaysia secured RM4.6 billion in potential investments and RM507 million in potential exports from its participation in Semicon Southeast Asia 2025. "These announcements are clear evidence of investor confidence in the country's reform policies." Tunku Nashrul added that Malaysia's latest achievement in the IMD World Competitiveness Index 2025, where the country rose to 23rd position, up 11 places from 34th last year, the best performance since 2020, was not a coincidence. "The improvement is a result of continued commitment and comprehensive implementation by the Madani government through a whole-of-government and whole-of-nation approach. "The progress also demonstrates how economic and bureaucratic reforms are bearing fruit and that the Madani Economic framework continues to place the national economy on the right track." He said the success also reflects collective efforts to strengthen fiscal policies, simplify business processes and accelerate public service delivery reforms, including more than 1,000 initiatives under the Bureaucratic Red Tape Reform. "For example, the national bureaucratic perception index has jumped 22 places, an indication that reforms are producing tangible results, not only at the national level but also with international recognition." Tunku Nashrul said that the Madani government has consistently welcomed constructive criticism since taking office. "This stance is translated into action. Every piece of feedback is seen as an opportunity for improvement and today's achievements reflect that very approach," he said.
New Straits Times
6 days ago
- Business
- New Straits Times
Analysts: Labour market to stay stable in 2025
KUALA LUMPUR: Malaysia's labour market is expected to remain stable throughout 2025, supported by resilient domestic demand, said economists. TA Securities economist Faris Burhanuddin said that despite persistent global geopolitical tensions, the labour market remains resilient, backed by a stable unemployment rate and strong growth in the services and technology sectors, as well as increasing investments in digitalisation and automation. "We also believe that Malaysia's labour market continues to demonstrate resilience, supported by the country's emergence as a prominent global hub for electrical and electronics (E&E) products, particularly semiconductors," he said in a note. Farid said the government's effort to position Malaysia as a leading hub for energy and semiconductor manufacturing has attracted substantial foreign investment. This includes a recent move by a Japanese company, which opened a manufacturing facility in Pasir Gudang, Johor, creating 460 high-skilled jobs with competitive salaries. In April 2025, the employment rate rose by 2.8 per cent year-on-year to 16.82 million persons, according to the Department of Statistics Malaysia. Meanwhile, the labour force participation rate increased to 70.8 per cent and the employment-to-population ratio sustained at 68.6 per cent. Farid said that structural initiatives such as preparations for Visit Malaysia 2026 are also expected to boost tourism-related employment starting this year. He pointed out that tourism data reinforces this positive outlook, with tourist arrivals reaching 13.38 million in the first four months of 2025, an increase of 21 per cent from 11.07 million last year and 12.4 per cent higher than the pre-pandemic level at 11.90 million in 2019. MIDF Research said rising employment and wage growth in domestic-orientated sectors will provide support to household spending. The firm said expansion in job creation and a healthy labour demand will be fuelled by robust domestic demand and sustained investment activities. "Steady employment growth coupled with a lower unemployment rate suggests more job seekers are successfully securing employment, though youth employment remains a persistent challenge. "Looking ahead, favourable labour market conditions are expected to support domestic demand and underpin economic growth despite external trade uncertainties," it said. Meanwhile, Hong Leong Investment Bank Bhd (HLIB Research) chief economist Felicia Ling said sustained domestic demand and supportive government policies will support the labour market. She said the continued realisation of RM89.8 billion in approved investments in the first quarter of this year is also expected to fuel job creation. TA Securities upgrades its full-year 2025 unemployment rate forecast to an average of 3.0 per cent, while MIDF Research expects it to average around 3.1 per cent. Despite the positive outlook, the economists remain cautious of potential external and domestic headwinds. Ling said the downside risks remain, as ongoing global policy uncertainty may worsen domestic business sentiment. "While we anticipate minimal impact from the Sales and Service Tax expansion taking effect on July 1, the potential pass-through of higher operational costs may prompt employers to be cautious," she added. Farid pointed out that the escalating trade tensions, particularly between the US and China, pose downside risks to Malaysia's trade-reliant sectors such as electronics, machinery and intermediate goods. He said this may lead to employment volatility in key export-oriented regions like Penang and Johor. He added that Petronas' intention to right-size its workforce in response to a more challenging global operating environment adds further uncertainty. "While the full details of the restructuring have not been disclosed, and the new organisational structure is only expected in the second half of the year, we currently view this as a limited downside risk to our labour force projections," he added.
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
12-06-2025
- Business
- New Straits Times
Tengku Zafrul: Foreign investors remain commited to Malaysia amid global uncertainty
KUALA LUMPUR: Foreign companies with existing investments in Malaysia continue to maintain their operations, with no signs of withdrawal despite ongoing global economic headwinds. Minister of Investment, Trade and Industry, Datuk Seri Tengku Zafrul Tengku Abdul Aziz, said this reflects the strong confidence foreign investors have in Malaysia's robust and resilient investment ecosystem. However, he noted that new investors are approaching with caution, adopting a "wait-and-see" stance amid rising geopolitical complexities. "This is particularly due to the increasingly complex geopolitical uncertainties. So far, no existing investors have expressed intentions to leave Malaysia," he said during a press conference after the Regional Socialisation of the AEC Vision 2045 Asean Community Strategic Plan. "They remain committed to their investments, and no cancellations have been announced. In our engagement sessions with investors, we found that various factors are being considered before investment decisions are made, particularly the geopolitical tensions between the United States and China." Tengku Zafrul added that forecasting future investment flows has become increasingly difficult given the rapidly evolving global landscape. On Wednesday, Malaysia reported approved investments totalling RM89.8 billion for the first quarter of 2025, marking a 3.7 per cent increase compared to the same period last year, despite challenging global economic conditions. Of this amount, foreign investments (FI) contributed RM60.4 billion, or 67.3 per cent, while domestic investments (DI) accounted for RM29.4 billion, or 32.7 per cent. Tengku Zafrul said the investment figures for the first quarter of 2025 were unexpected but a highly positive development. "Typically, investment performance in the first quarter is somewhat slow, as most investment decisions are made towards the end of the year. But this time, the figures are very encouraging," he said. "Nearly 70 per cent of the total investments were foreign direct investments (FDI), with the services sector, particularly the digital economy, emerging as the primary contributor," he explained. He added that the country's gross domestic product (GDP) growth forecast for 2025 remains on track. "We continue to see investment performance aligning with the country's GDP growth," he said.
New Straits Times
12-06-2025
- Business
- New Straits Times
Malaysia attracts RM89.8bil in Q1 2025 investments despite global challenges
KUALA LUMPUR: Malaysia secured RM89.8 billion in approved investments for the first quarter of 2025 (Q1 2025), a steady 3.7 per cent year-on-year increase despite a challenging and less favourable global economic backdrop. An economist said this reflects continued confidence among domestic and foreign investors, particularly in targeted growth areas. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, however, cautioned that the outlook for the second half of 2025 could be more challenging as investment sentiment remains sensitive to global uncertainties. "While the first quarter data is encouraging, much will depend on the outcome of ongoing tariff negotiations. Heightened trade tensions could weigh on investor confidence going forward," he told Business Times. Disclosing the Q1 figure on Wednesday, Malaysian Investment Development Authority (MIDA) said the RM9.8 billion approved investments - spread across 1,556 projects in manufacturing, services and primary sectors - are set to generate over 33,300 new employment opportunities for Malaysians. "The results reflect continued investor confidence in the country's clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, as well as intensifying global competition for fresh investments," MIDA said in a statement. Afzanizam noted that the key driver behind the performance is the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ). Launched in January this year, the SEZ has so far attracted RM28.3 billion in investments from Singapore alone. "With Johor emerging as the largest recipient of approved investments in the quarter, this suggests that the SEZ development model is not only a powerful catalyst for investment activity but also a strategic tool for fostering regional economic integration. "The JS-SEZ is expected to bring spillover benefits to other sectors, particularly the construction industry, with the development of data centres and supporting infrastructure now underway," he added. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz said while the investments are set to create 33,300 new jobs, what is equally important is the increase in the country's managerial, technical and supervisory index. Tengku Zarul noted that the index had risen from 44.2 per cent in Q1 2024 to 46.3 per cent in Q1 2025, reflecting the nation's steady success in creating higher-skilled, better-paying jobs for Malaysians. "With a better integrated Asean economy, which we are working hard on as Asean chair, we are also paving the way for Malaysia's continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region," he said. According to MIDA, foreign investments (FI) dominated the investment landscape, contributing RM60.4 billion or 67.3 per cent of total investments, while domestic investments (DI) accounted for RM29.4 billion or 32.7 per cent. Singapore emerged as the leading foreign investor with RM28.3 billion, followed by the United States (RM9.9 billion), China (RM7.9 billion), British Virgin Islands (RM6.6 billion) and Taiwan (RM1.7 billion). "In terms of states, Johor recorded the highest value of approved investments (RM30.1 billion), followed by Kuala Lumpur (RM15.0 billion), Sabah (RM10.9 billion), Selangor (RM10.2 billion), and Penang (RM9.2 billion)," it said. MIDA said the services sector emerged as a powerhouse of economic growth, securing RM57.8 billion in approved investments across 1,342 projects. The sector's performance is highlighted by a robust 39.5 per cent year-on-year growth, and will create 15,051 new jobs, marking a significant milestone in the nation's economic development. As for the manufacturing sector, MIDA secured RM30.5 billion in approved investments for Q1 2025. The approval of 207 projects is anticipated to yield 18,317 new job openings. For the primary sector, it secured RM1.5 billion in approved investments across seven projects, mainly in mining. "The approved investments are dominated by domestic sources with RM1.1 billion (72.1 per cent), while foreign sources contributed RM0.4 million (27.9 per cent)," it said. MIDA said Malaysia continues to position itself as a top-tier investment destination. As of June 10 this year, MIDA managed a robust pipeline of proposed projects valued at RM48.5 billion. "The services sector leads this momentum, with 683 projects accounting for RM27.6 billion, while the manufacturing sector, contributing RM20.9 billion across 89 projects. "Complementing this pipeline, an additional RM59.3 billion in high-potential investment leads are currently under negotiation. "These figures signal not only a healthy appetite for investment but also growing confidence in Malaysia's economic fundamentals and policy direction," it said. Overall, Tengku Zafrul said the investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds stemming from the US-China trade war. Nonetheless, he said although major markets' protectionist policies and supply chain frictions continue to weigh in on companies' investment decisions, Malaysia's clear policies should be able to attract more investments from Asia's growing economy. "This is expected to expand to about 42 per cent of global growth domestic product by 2040," he added.
