Night cleaning pilot project at KL tourist hotspots
He said among the areas identified are Jalan Bukit Bintang and Jalan Alor.
Nga said the initiative is part of the Public Cleansing Reform under the 13th Malaysia Plan (13MP).
"The night cleaning operation has proven successful in developed cities such as Shanghai.
"This is a better approach, as our workers are currently forced to work under hot weather conditions.
"If they work at night, the weather is cooler. More importantly, it will not interfere with traffic, especially in congested tourist areas," he told reporters after the launch of the Semarak Jiwa Merdeka event at his ministry today.
Nga added that the ministry will also introduce a fleet of electric vehicles (EVs) for garbage collection.
"This is to enable us to achieve a net-zero carbon economy by 2035.
"Therefore, through the Solid Waste Management and Public Cleansing Corporation (SWCorp), we will be introducing EV garbage trucks starting this year, marking a significant shift in our waste management system."
Nga said the ministry will also implement deep cleansing in strategic areas.
"We will use water jet technology to ensure the cleaning is done without dust."
He added that several new initiatives will also be rolled out to increase the frequency of garbage collection.
"Currently, it may be once or twice a week. This will be increased to four times a week to better manage growing waste levels," he said.
He added that starting January next year, all shopping malls must provide recycling facilities.
"Business licences will not be renewed without compliance.
"This move supports the government's goal of improving Malaysia's recycling rate, currently far below the European Union's average of 65 per cent.
"It is crucial that we educate our children about recycling—reduce, reuse, recycle," Nga said.
Recently, at the 2025 Cleaners' Day Appreciation Ceremony, Nga announced several reforms under the 13MP, marking a major shift in the national cleaning management landscape.
He said these reforms are especially timely as Malaysia prepares for Visit Malaysia Year 2026.
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The Star
5 hours ago
- The Star
13MP boost for affordable housing
PETALING JAYA: The government's announcement under the 13th Malaysia Plan (13MP) to develop one million affordable housing units between 2026 and 2035, will help ease pent-up demand and improve homeownership prospects. Zerin Properties chief executive officer Previn Singhe said the government's target of building one million affordable homes over a 10-year period is both 'bold and ambitious'. 'Beyond numbers, success will depend on building in the right places, close to jobs, transport and services, as well as ensuring these homes are designed to genuinely meet the needs of B40 and M40 families. 'This is so they do not risk becoming future overhang statistics,' he told StarBiz. Previn said it is imperative that there are 'supporting measures' to ensure this plan succeeds. 'Measures such as the improvement of existing affordable housing financing schemes, including the expansion of the rent-to-own and housing credit guarantee programmes, will be critical in widening access to homeownership for first-time and lower-income buyers. 'At the same time, making schools a mandatory component of large-scale housing projects will enhance liveability and strengthen long-term community value. 'Together, these measures push housing delivery beyond bricks and mortar –towards building integrated, future-ready communities.' Olive Tree Property Consultants founder and chief executive officer Samuel Tan also said the move by the government to build one million affordable homes under the 13MP was 'ambitious'. 'The government remains committed to ensuring access to quality, affordable and inclusive housing. As of this year, 180,000 housing units have been completed, with another 235,000 currently under construction.' He noted that structural issues, such as the mismatch between housing supply and demand, as well as property prices that remain beyond the reach of many, continue to pose challenges. 'Selection of locations and developers are equally important. Achieving one million houses is only a quantitative target. What is more important is the qualitative target.' TA Research said the planned increase in affordable housing supply, particularly in strategic locations, should help ease pent-up demand and improve homeownership prospects for lower- and middle-income households. 'On the demand side, improved financing mechanisms, including tiered interest rates and flexible tenure structures, are expected to enhance affordability, especially for first-time buyers. 'We are also encouraged by the government's move to empower a central housing agency to lead planning and delivery efforts.' The research house said this could significantly reduce inefficiencies and eliminate duplication of efforts between federal and state bodies, paving the way for more targeted and effective execution. Tan noted that Malaysia faces a significant challenge in providing affordable housing for its citizens, with house prices often exceeding what many can afford. 'This affordability crisis is driven by various factors, including rising land costs, construction costs and a lack of sufficient affordable housing supply. 'There is also a discrepancy between the types of housing being built and the actual needs of the population, with an oversupply of high-end properties and a shortage of affordable options.' This imbalance, said Tan, is exacerbated by factors like income inequality and variations in housing preferences across different demographics. Moreover, he said the construction industry in Malaysia needs to embrace modern technologies and innovative building methods to improve efficiency, reduce costs and enhance the quality of housing. 'The adoption of the Industrialised Building System (IBS), for example, can help accelerate construction and lower costs, making housing more accessible.' He added that there should also be a consolidation of housing agencies to initiate and monitor housing development. 'Currently, multiple agencies are doing the same job and this increases the cost and causes confusion among the stakeholders,' Tan said. To ensure that initiatives under the 13MP come to fruition, Previn emphasised that there is a need to 'prioritise execution over announcements.' 'Malaysia's development plans have historically struggled with delivery gaps. To avoid repeating this pattern, we must establish clear ownership and accountability structures at both federal and state levels. 'There is also a need to ensure transparent timelines, key performance indicators and public reporting mechanisms for all flagship initiatives.' Previn also said there is a need to enable stronger inter-agency coordination, particularly between planning units, regulators and implementation bodies. 'Without robust execution frameworks, even the most well-crafted plans risk stalling.' Another significant structural shift that has been proposed under the 13MP is the mandatory adoption of the build-then-sell (BTS) model for housing development - to be enforced through amendments to the Housing Development Act. TA Research noted that while the intention is to curb project abandonment and enhance buyer protection, it added that the move introduces substantial funding and working capital risks for developers. 'Under the 10:90 BTS structure, developers must complete construction before receiving the bulk of sales proceeds. This could delay new launches and deter participation from smaller players with limited balance sheet strength or constrained access to project financing. 'In our view, this would accelerate market consolidation and widen the competitive gap in favour of well-capitalised players.' That said, the research house said it does not expect the implementation to be immediate. 'Given that it requires legislative amendments, the process is likely to involve multi-stakeholder consultations and industry engagement. A rushed rollout would be disruptive, and we believe policymakers are aware of the potential implications. 'We anticipate a phased approach that balances buyer protection with developer viability, potentially through exemptions, transitional support, or segmentation by developer scale,' it said. Previn also concurred that the BTS model is a major structural change that enhances consumer protection and market credibility, which reduces risks of poor-quality or abandoned projects. 'It will also accelerate IBS adoption, improving efficiency and delivery timelines. 'However, smaller, highly leveraged developers may face liquidity pressures, longer project cycles and higher financing costs, unless accompanied by supportive financing mechanisms or phased implementation of BTS.' Without sufficient large, capable IBS suppliers, Previn warned that there would be bottleneck risks that would push up costs and erode affordability. Tan meanwhile noted that currently, developers are allowed to sell houses before they are built under the 'sell-then-build' model. He noted that making the BTS model mandatory will be difficult. 'There are many obvious merits for this initiative. But it carries several problematic issues. Only the deep pocket developers can afford to implement this scheme. 'It will then be an uneven playing field for the start-ups and smaller development companies.' Tan said the additional holding cost will be passed on to the end-purchasers, making house prices more expensive. 'This will jeopardise our Home Ownership Programme. On the other hand, it will ensure that abandoned projects are curbed. End-purchasers buy what they see ensuring that quality is maintained. 'We opine that this BTS model should not be mandatory. Developers are given the options to choose the most appropriate models. The authorities must monitor their performance to ensure quality and timely delivery,' he said. Previn said many of the 13MP's strategies such as the BTS model and affordable housing targets are conceptually strong, but 'must be grounded in market data and developer capacity.' 'Enforcing BTS across the board without a phased rollout could tighten housing supply and raise costs in the short term 'Additionally, affordable housing should not just be 'affordable to build' but also meet the preferences and needs of the target buyers,' he said.
The Star
8 hours ago
- The Star
Penang plans new tuna port to boost landings
BUTTERWORTH: Penang plans to build a new tuna and deep-sea fishing port in the state, which meets international standards, to increase tuna landings. State agrotechnology, food security and cooperative development committee chairman, Fahmi Zainol said the government has identified an area in Bagan Ajam for the new tuna port and discussions are already underway. "The state has earmarked land in Bagan Ajam for the development of the new port, with an estimated development budget of RM150mil to RM300mil. We are currently in talks with several investors for funding," he said. He added that, based on the timeline, the port could be completed within one-and-a-half to two years, pending technical approval from the district land office and other relevant agencies, as well as private sector allocation. "We hope the new port can revive the glory days of Penang's tuna industry, much like the 1990s," he said on Sunday (Aug 10). Fahmi highlighted several benefits of the new port, including its exclusive focus on tuna fishing, meaning tuna vessels will not have to compete for docking space with commercial ships. The port will also offer lower charges, as it will not operate on a commercial basis. Regarding competition, he said that tuna ships would not need to compete for docking space because the new port would be dedicated solely to tuna landings. It is expected to attract foreign tuna ships due to its user-friendly facilities. The new port will meet European Union (EU) standards and will include special facilities tailored specifically for tuna fishing, unlike existing ports, which offer general facilities and lack focus on tuna landings. "According to preliminary data from the Malaysian Fisheries Department, the total tuna landings in Penang last year were 431,000kg, valued at RM7.758mil. The main landing point is currently the Butterworth deep-water wharf," Fahmi said. He also noted that Malaysian vessels had landed tuna in Mauritius last year, with a total of 4,295,758kg of tuna, including 3,749,478kg from local vessels. So far this year, the total tuna landings in Penang, including foreign vessels, have reached 1,445,120kg, with an estimated value of RM26mil. Fahmi believes that with the dedicated tuna port in Bagan Ajam, tuna landings could increase by 30 to 50 per cent within five years of its operation. He also envisions Penang becoming a tuna processing hub, where foreign vessels can land their catch for processing before exporting it to Taiwan or Japan. - Bernama
Borneo Post
16 hours ago
- Borneo Post
Shots in the arm from 13MP and tariffs
Unveiled by Anwar, the 13MP sets out the country's development roadmap for 2026 to 2030. — Bernama photo KUCHING (August 10): Analysts hail the back-to-back announcements of the 13th Malaysia Plan (13MP) and lower tariffs from the US as a timely boon to the economy, injecting fresh impetus for a necessary recharge. Unveiled by Prime Minister Datuk Seri Anwar Ibrahim, the 13MP sets out the country's development roadmap for 2026 to 2030. With the theme 'Redrawing Development,' it aims to drive sustainable growth and push Malaysia towards becoming a high-income, globally competitive nation. As the final phase of Malaysia's Sustainable Development Goals (SDG) agenda, the plan continues key reforms under the Madani government. The 13MP sets a bold and transformative vision for Malaysia's development over the next five years, aiming to build a high-income, inclusive, and sustainable nation. It outlines strategic reforms to deepen economic complexity, strengthen governance, and uplift social well-being, anchored by transition to a value-based economy powered by innovation and digitalisation, and the principles of a MADANI society. Under 13MP, the government projects Malaysia's GDP growth between 4.5 and 5.5 per cent from 2026 to 2030, driven by strong domestic demand, a rebound in net exports, and solid manufacturing growth. While the outlook is optimistic, achieving high-income status and higher productivity gains will require deeper structural reforms and resilience against global uncertainties. Inflation is projected to average 2.0–3.0 per cent between 2026 and 2030, as subsidy reforms and wage policies drive modest price pressures. Cash assistance and food security initiatives helping to contain volatility. Barring major shocks and with growth projected above 4.5 per cent, the current OPR of 2.75 per cent is likely to serve as the policy floor. Fiscal deficit is targeted below 3.0 per cent of GDP by 2030, supported by stronger revenue and modest increase in development spending. While the goal is realistic, it hinges on sustained fiscal discipline and long-overdue reforms, particularly in tax structure and subsidy rationalisation, which remain politically sensitive. Debt sustainability remains a priority, with the debt-to-GDP ratio targeted below 60 per cent by 2030. The team with Maybank Investment Bank Bhd (Maybank Research) said the timing of the 13MP 'could not be more timely considering we are at a cross roads to balance external headwinds despite having strong domestic tailwinds'. 'The 13MP is set to raise development spending to boost domestic demand as the country's key growth engine,' it commented in its review of the new plan. 'It is also set to raise development spending to boost domestic demand as Malaysia's key growth engine. 'These are built on government initiatives already outlined including the National Energy Transition Roadmap (NETR), New Investment Master Plan (NIMP), National Semiconductor Strategy (NSS) while leveraging on the Johor-Singapore Special Economic Zone (JSSEZ) as well as identified industrial parks. 'Key domestic-centric drivers include energy transition, tech and AI, boosting home ownership, public infra projects and industrial parks, education and healthcare. Aside from education (minimal listed proxies), these sectors are aligned with our investment themes and equity market sector weightings.' On the other hand of the spectrum, the team over at TA Securities Bhd (TA Research) viewed the 13MP as ambitious, like its predecessors — not only because of its scale, but also due to the uncertainties that can unfold over a five-year horizon. For context, the previous 12MP was tabled during the height of the COVID-19 pandemic, which significantly altered the country's economic trajectory. 'Since this is a broad framework for long-term development, we expect that more specific policies, allocations, and implementation details will be unveiled progressively through annual Budgets. 'For example, the government is scheduled to table Budget 2026 on 10 October, which will likely serve as the first fiscal vehicle to operationalise the 13MP agenda.' With the theme 'Redrawing Development,' the 13MP aims to drive sustainable growth and push Malaysia towards becoming a high-income, globally competitive nation. — Bernama photo Devil in the details: A closer look at Malaysia's tariff strategy Dominating the other end of the business news frontline is the US' reduction of its reciprocal tariff on Malaysian exports to 19 per cent. After months of negotiations, the US agreed to a rollback to 19 per cent effective 7 August. While the team at Kenanga Investment Bank Bhd (Kenanga Research) cite this move as not being 'ideal', it nevertheless sets a clearer and more stable path forward in the near term. 'The adjustment was formalised through an Executive Order: Further Modifying the Reciprocal Tariff Rates, following direct engagement between Anwar and US President Donald Trump,' its said in its analysis. 'In reality, however, it reflected the culmination of months of behind-the-scenes negotiations led by both US and Malaysian trade negotiating teams. 'While the headline tariff remains relatively high, this outcome was largely within expectations and reflects Malaysia's strategic use of bargaining chips, namely, its pivotal role in US semiconductor supply chains, its critical rare earth processing capabilities, growing healthcare export base, and Asean chairmanship in 2025.' The adjustment was formalised through an Executive Order: Further Modifying the Reciprocal Tariff Rates, following direct engagement between Anwar and Trump. — AFP photo Kenanga Research noted that the US' tariff rollback represents a defensive success rather than a stimulus catalyst. 'In short, Malaysia managed to preserve its economic sovereignty, protect key policy domains — like excise duties, import licensing, and foreign equity caps — and avoid deeper liberalisation or fiscal concessions.' Before Trump's 2025 'reciprocal tariff' shock on 2 April 2025, Malaysia enjoyed very low US applied tariffs, often at zero per cent on key export goods such as semiconductors, electronics, and pharmaceuticals. These preferential rates were a result of longstanding Most Favoured Nation (MFN) status and global trade norms, Kenanga Research noted. Only about 55 per cent of Malaysia's US-bound exports were subject to ordinary tariffs. When the US announced a 24 per cent flat tariff across non-exempt goods in April 2025, the trade-weighted average tariff spiked to about 14-15 per cent. Kenanga Research observed that Malaysia's final tariff deal with the US reflects a careful balancing act, demonstrating openness to fair trade while drawing clear boundaries to protect strategic sectors. 'The result is a policy package that's pragmatic, measured, and investor-friendly without surrendering national interests,' it underscored. 'Malaysia's final offer to the US covered 98.4 per cent of tariff lines (total of 11,444), signalling a firm commitment to open trade. According to the Ministry of International Trade and Industry's (Miti) press briefing on 1 August, 6,911 (61 per cent) tariff lines will be reduced to zero, but not without safeguards. The safeguards are no elimination of excise duties, especially for autos and tobacco; no blanket exemptions for US import licensing—ensuring regulatory oversight remains intact; and no full equity liberalisation in strategic sectors like energy, telecommunications, and infrastructure. Malaysia also agreed to ease non-tariff barriers (NTBs) to improve US market access, without compromising its core standards such as simplified halal and facility registration for US agri-food imports; JAKIM-recognised US halal certifiers; lifting of bans on US sorghum and rice; regionalised animal disease protocols; and reinforced labour and environmental commitments. Critically, MITI reaffirmed that Malaysia's halal standards are non-negotiable, quelling public concern that religious or food safety norms were sacrificed. While increased US beef imports could weigh slightly on the trade balance, the impact is minimal, while they also offer greater consumer variety, especially beyond traditional suppliers like Australia and New Zealand. Researchers say this selective liberalisation strategy allowed Malaysia to appear flexible without compromising its industrial base. 'It sends a clear message: Malaysia won't dismantle critical policy tools for short-term gains,' Kenanga Research affirmed. 'Looking ahead, the government may explore excise duty reforms in the automotive sector, a potential lever to improve consumer choice and reduce vehicle prices. While the headline tariff remains relatively high, this outcome was largely within expectations and reflects Malaysia's strategic use of bargaining chips. — AFP photo A relatively better deal among Asean peers Comparing Malaysia to its neighbouring countries' treatment, its 19 per cent tariff outcome is both notable and regionally competitive. It aligns with peers on tariff rates, without major concessions. In contrast, Vietnam and Indonesia had to offer broader liberalisation to secure similar outcomes. Vietnam retained 20 per cent tariff, slightly above the Asean norm, reflecting its higher initial exposure and slightly weaker bilateral leverage, in line with earlier expectations of a 46 per cent escalation risk. Malaysia shares its 19 per cent flat rate with Thailand, Cambodia, the Philippines, and Indonesia, largely a result of last-minute trade diplomacy. Malaysia's standout role in brokering peace between Thailand and Cambodia boosted its diplomatic standing and negotiating capital. The Philippines and Indonesia struck earlier deals, avoiding the full brunt of 25–36 per cent tariffs. Meanwhile, Singapore remains at 10 per cent, despite having bilateral free trade agreements (FTAs) and trade deficit with the US but still affected by the Trump-era reciprocal tariff wave. Brunei, Laos, and Myanmar saw no tariff adjustments, an implicit sign of limited strategic leverage or trade exposure in US supply chains. So far, Malaysia has stepped up trade enforcement, shoring up its reputation in Washington and global supply chains. These include steps such as Miti being the sole issuer of Non-Preferential Certificates of Origin (NPCO) since May 2025 to curb transshipment and origin fraud, key US concerns. AI chip exports are now monitored under the Strategic Trade Act's 'catch-all' controls, aligning Malaysia with US expectations on tech security. On rare earths and critical minerals, Malaysia confirmed no export restrictions on processed goods, cementing its position as a reliable supplier in the global mineral ecosystem. 'The tariff reset is not a macro game-changer, but a well-executed geopolitical hedge. Malaysia avoided high-cost liberalisation while securing fairer access, sending a clear message to investors: the country can defend its strategic interests without isolating itself from key markets. Malaysia's response handling of the US tariff threat was calculated and composed. It strategically leveraged its role in global tech supply chains, rare earth processing, and its ASEAN leadership to avoid deeper economic concessions. Looking ahead to Budget 2026 and ongoing fiscal reforms, the deal marks a shift in Malaysia's economic diplomacy—more assertive, less reactive, and focused on long-term resilience over short-term relief. Barring external shocks, the macroeconomic effects are expected to normalise by 2H26. 'More importantly, Malaysia retains its regional competitiveness. With a relatively lower average tariff structure—second only to Singapore—it strikes a credible balance between sovereignty and openness, reinforcing its image as a reliable and strategically resilient investment destination.' BIG TITLE: Sectoral gains from 13MP and US tariffs Construction Public-private partnership projects continue to be implemented via the Public-Private Partnership Master Plan 2030, with the government projecting RM61 billion worth of private sector funding under the 13MP. — Bernama photo The 13MP was tabled with RM430 billion worth of gross development expenditure (DE) targeted for the 2026-2030 period against RM415 billion annual average of gross DE budgeted for the 12MP (2021-2025). Therefore, analysts believe the 13MP DE should continue to facilitate infrastructure growth in the country. The total RM430 billion gross DE is earmarked for the economic sector, including infrastructure, info-structure, public transport, flood mitigation, affordable housing, and capacity-building projects, amongst others. Specific projects highlighted under the 13MP include the Sarawak-Sabah Link Road, Pan Borneo Highway, the Central Spine Road from Bentong (Pahang) to Kuala Krai (Kelantan), Trans Borneo Highway (formerly known as Pan Borneo Phase Two of the SarawakSabah Link Road), widening of the PLUS highway for the Senai Utara-Machap stretch, Light Rail Transit (LRT) 3, and Penang LRT. Public-private partnership (PPP) projects continue to be implemented via the Public-Private Partnership Master Plan 2030 (PIKAS 2030), with the government projecting RM61 billion worth of private sector funding under the 13MP. PIKAS 2030 has outlined a list under the 'Strategic Thrust 3: Expanding PPP models to diversify projects' of the plan, which includes (among others) the West Ipoh Span Expressway, Putrajaya-Bangi Expressway, Ipoh Sentral Transit Oriented Development, and East Coast Expressway Phase 3. Notably, analysts with RHB Investment Bank Bhd (RHB Research) noted that there was a strong emphasis on flood mitigation projects. During the 13MP period, the government targets to complete 55 flood mitigation projects in 2030 from 17 in 2024. Efforts to mitigate floods will continue with 43 high priority flood mitigation projects worth RM12 billion that started last year. 'Some of the flood mitigation projects being executed include those at Kuching; the basins of the Johor, Muar, and Pahang Rivers; Baling in Kedah; Sungai Likas in Sabah; and Sungai Trolak in Perak.' Meanwhile, the multi-tiered foreign worker levy (MTFWL) initiative is to be implemented in 2026. While no details were disclosed under Budget 2025 with regards to the MTFWL, RHB Research based its hypothetical earnings impact on multi-tiered levy rates proposed for 2021 from the Institute of Labour Market Information and Analysis. 'Our preliminary estimates find that the earnings of contractors will be reduced by less than one per cent.' Projects wise, analysts with Maybank Investment Bank Bhd (Maybank Research) were disappointed that the Klang Valley Mass Rapid Transit 3 (MRT3) line was not mentioned. 'It appears that the megaprojects of the 13MP are the port expansions of Westports and Port of Tanjung Pelepas coupled with the construction of Carey Island Port,' it saw. Healthcare Healthcare reforms are introduced and part of the strategies highlighted will be on controlling this medical inflation, through a few initiatives/plans such as improving social protection and healthcare services for poor households; expanding Rakan KKM as a paid treatment option; and providing basic private health insurance/takaful products (including KWSP's i-Lindung initiative. Other programmes include the improvement and expansion of Skim Perubatan MADANI. This is expected to reduce out-of-pocket spending for health expenditure to 32 per cent by 2030, commented researchers with MBSB Investment Bank Bhd (MBSB Research). 'These initiatives are expected to address the issue of rising non-communicable diseases (NCDs) among low-income groups that may not be able to afford long-term treatments (such as for diabetes and cancer) and expensive surgeries (organ transplants),' it said in its review. 'While no exact allocation was presented, we noted that these initiatives could be leveraged mainly by healthcare service providers and medical insurance companies.' Overall, researchers with Hong Leong Investment Bank Bhd (HLIB Research) saw that the increase in the development expenditure in the healthcare sector is expected to primarily benefit public health facilities, with limited direct impact on the private sector. 'Besides, the lack of detailed clarification to reduce out-of-pocket (OOP) expenses makes it difficult to assess any potential implications for private healthcare service providers. 'While initiatives such as Rakan KKM, standardised private insurance/takaful products, the national health fund, strategic purchasing platform, increasing focus on primary healthcare, accelerating digitalisation of health information system, as well as government support for local pharmaceutical and medical device manufacturing were highlighted, these are already well-known by the market, given the steady stream of related news in recent months. Post-13MP, we stay overweight on the healthcare sector.' Maybank Research pegged local pharma companies to benefit from commitment to encourage in-house local generic drugs' manufacturing and distribution. Further expansion of public primary care clinics in an effort to reduce out-of-pocket healthcare payments (prioritisation of preventive care). 'We also note the major constructions of five new public hospitals in Seremban, Johor Bahru, Sg Petani, Sabah and Sarawak to cater for growing healthcare demand. There is a focus on development of national health insurance and Rakan KKM to improve healthcare accessibility. 'There are plans to introduce pro-health taxes such taxes on tobacco, vape and alcohol – to curb non-communicable diseases.' Plantations Such measures would likely bring MSPO standards closer to the RSPO equivalence, supporting better compliance with the EUDR implementation in December. — Bernama photo The government will continue to enhance productivity through modern technologies such as mechanisation, automation, robotics, R&D, and sustainability certification to elevate the plantations sector. MBSB Research noted that the strong commitment to enhance sustainability certification is important important given past actions by the US Customs and Border Protection (CBP), which issued Withhold Release Orders (WROs) against SD Guthrie Bhd and FGV Bhd over allegations of forced labour, underscoring the urgent need for stricter enforcement to safeguard market access and uphold Malaysia's global credibility. Such measures would likely bring MSPO standards closer to the Roundtable on Sustainable Palm Oil (RSPO) equivalence, supporting better compliance with the EU Deforestation Regulation (EUDR) implementation in December. Meanwhile, the government is targeting a reduction in foreign labour dependency to 10 per cent by 2030, from 15 per cent currently. In line with this objective, the implementation of the multi-tier levy mechanism on foreign labour has been deferred to 2026 (from the initial timeline of 2025). This will allow for more comprehensive enforcement and to encourage employers to transition toward automation, mechanisation, and greater reliance on local workers. HLIB Research maintained their neutral view on this initiative, as the delay in the implementation of multi-tier levy mechanism on foreign labour only provides temporary relief on additional labour cost pressure, not to mention the current mechanisation limitations within the sector. 'Under the 13MP announcement, we identified at least 5 national projects that could benefit selected plantation companies due to the availability of agricultural land that could be easily converted into various industrial, commercial and residential projects in support of the government initiatives. 'We maintain our neutral stance on the plantations sector.' Ports The 13MP outlines several initiatives to support the port and shipping industry under the broader blue economy agenda. Federal port governance will be reviewed to address overlapping roles, while policies will support the acquisition of 136 new ships by Malaysian companies, targeting over 840,000 gross tonnage by 2030. The plan also focuses on developing shipbuilding and repair (SBSR), maritime logistics (ship-to-ship services) and expanding marine fuel infrastructure, among other initiatives, to strengthen Malaysia's position as a regional maritime and logistics hub. 'Other key priorities include attracting investment in green shipping and promoting low-carbon operations. Infrastructure plans include the proposed Pulau Carey Port, Westports 2, and PTP expansions, along with capacity upgrades in Sabah and Sarawak,' said Maybank Research. The 13MP also highlights regional collaboration through R&D, technology transfer, and the development of blue economy hubs in Kelantan, Perak, Sabah, and Terengganu. The plan also focuses on developing shipbuilding and repair, maritime logistics and expanding marine fuel infrastructure, among other initiatives, to strengthen Malaysia's position as a regional maritime and logistics hub. — Bernama photo Property Under the 13th Malaysia Plan, the government has indicated its intention to implement the 'build-then-sell' (BTS) approach through a risk-sharing model. In Maybank Research's view, the BTS approach not only helps reduce the risk of abandoned projects but also encourages careful planning (including market demand studies) and improves the quality of housing to better attract buyers. 'That said, the BTS model may weigh on developers' balance sheets, as project financing must be secured before construction begins. While details remain limited, we believe that developers with strong financial positions are more likely to benefit from this. 'Several existing and new strategic industrial zones and hubs such as the Kerian Integrated Green Industrial Park, Kulim Hi-Tech Park, Lumut Maritime Industrial City, Kota Kinabalu Industrial Park, Automotive High-Tech Valley, JSSEZ, and Carey Island were mentioned in the 13MP. 'These industrial parks are set to reshape the industrial investment landscape and could heighten competition as investors gain more options and states offer varying incentives.' Sharing the same concerns were the team at HLIB Research who believed the BTS model places greater risk on developers as they will need to commit significant capital over a multi-year period without cash inflow, placing pressure on working capital and leading to higher gearing. 'As a result, many developers may become more cautious and scale back on the number of project launches,' it said. 'The reduction in supply could raise house prices, straining housing affordability, especially in the mass-market segment. 'On top of that, earnings would only be recognised upon completion and sale, instead of progressively, causing greater earnings volatility for listed developers.' Maybank Research said the ripple effect of a BTS mandate would extend beyond developers to the financial sector. With developers bearing more risk, banks may raise financing costs or tighten lending terms. Meanwhile, reduced project launches would weaken overall loan demand. Contractors, building materials suppliers, and other parts of the supply chain may also see slower order flows and project pipelines. On a more positive note, HLIB Research said the BTS model should incentivise developers to adopt more prudent and responsible planning. 'Thorough feasibility studies, careful product-market alignment, and stricter cost control could become the norm. By curbing speculative launches and improving quality, the BTS model could result in a more stable and sustainable property market over time. In the short term, once there is clearer certainty on the implementation, developers may rush to launch projects before the BTS rule comes into effect, creating a temporary glut. In the long run, the BTS regime will create a survival-of-the-fittest environment, accelerating industry consolidation. Only a handful of well-capitalised developers will be able to weather the prolonged cash flow cycles and heightened risk. Developers best positioned to survive and even thrive will be those with diversified income streams (reducing reliance on development profits), robust recurring income (especially from property investment arms), and strong balance sheets and ample debt headroom (to finance upfront construction costs). Technology Under the 13MP, the government has prioritised comprehensive reforms to strengthen Malaysia's semiconductor industry in line with the National Semiconductor Strategy (NSS). Strategic collaborations will be established with global and local players across the semiconductor value chain to accelerate the shift towards high-value, complex product manufacturing. This will be supported by a technology and IP-driven investment model, with GLICs actively involved in nurturing local firms as strategic partners or acquisition targets. The goal is to develop world-class local champions, particularly in IC design, and boost the production of 'Made by Malaysia' high-value, high-tech (HVHT) semiconductor products. To support this transformation, the investment ecosystem will be enhanced through circular economy practices and AI-driven digitalisation, while investment incentives will favour IP-based ventures and alternative financing such as credit guarantees and venture capital. The government also aims to develop a skilled talent pipeline, targeting 700,000 skilled workers by 2030, supported by expanded in-industry training programmes. These initiatives will focus on key locations such as the Kerian Integrated Green Industrial Park, Kulim High Technology Park, and the JS-SEZ reflecting a broader effort to position Malaysia as a global hub for advanced semiconductor manufacturing. 'We view this as a constructive policy direction that could elevate Malaysia's position within the global semiconductor value chain,' Maybank Research said. 'That said, the absence of detailed execution plans at this juncture makes it difficult to gauge the near-term impact on the players. While sentiment may improve around semiconductor- related counters, we believe investors will be looking for greater policy clarity and project timelines before re-rating the sector meaningfully.' Rubber Gloves The narrow or zero tariff differential against regional peers such as Indonesia, Thailand, and Vietnam provides limited competitive advantage for Malaysia glove makers, especially as China glove makers continue to expand capacity in these countries. — Bernama photo While Malaysia now enjoys a lower US tariff rate, Maybank Research observed that the narrow or zero tariff differential against regional peers such as Indonesia, Thailand, and Vietnam provides limited competitive advantage for Malaysia glove makers, especially as China glove makers continue to expand capacity in these countries. These offshore facilities allow China players to bypass US tariffs on China-origin goods, further intensifying competition within Southeast Asia and limiting pricing power. 'Our channel checks indicate China production costs in overseas range from US$14–US$15 per thousand pieces, versus Malaysia's US$15–US$16 per thousand pieces,' it warned. 'With similar tariffs and higher costs, Malaysian glove makers have limited pricing power and could risk losing US market share once the new capacity in these countries comes online by end-2025 to early-2026.' Competition is intensifying not just internationally but also at home, with a major glove maker in Malaysia aggressively cutting prices to gain US market share ahead of China players re-entering the market via overseas capacity. Elsewhere, the research house understood that the anticipated restocking in the US post-December 2024 front-loaded orders did not materialise in the first half of 2025 as China glove makers had stocked up their US warehouses in advance, based on our channel checks. 'We suspect some major players in Thailand and Malaysia, with warehouse facilities in the US, could have taken advantage of the three-month 10 per cent tariff window to ramp up shipments to US, at the expense of other Malaysia glove makers who lack such infrastructure. 'By the time meaningful restocking kicks in, new China capacity in Asean would likely be ready, leaving a narrow window for Malaysian players to compete. 'As the regional playing field is narrowing, Malaysia's competitive edge is heavily reliant on cost efficiency, automation and innovation. We thus maintain our negative stance on the Malaysia glove sector.' 13MP Malaysian economy tariff
