Latest news with #AhmedRazmanAbdulLatiff
New Straits Times
12 hours ago
- Business
- New Straits Times
Economists: 13MP aims to boost Malaysia's competitiveness through high-value manufacturing
KUALA LUMPUR: The 13th Malaysia Plan (13MP) is expected to enhance Malaysia's competitiveness by promoting high-value manufacturing through business and investor-friendly policies, say economists. Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said that the 13MP, which serves as an indicative plan from 2026 to 2030, will help stimulate both domestic and foreign investments through policy reforms and incentives. "The 13MP can position Malaysia as a leader by leveraging existing strengths in manufacturing and semiconductors, driving regional integration through Asean frameworks and adopting strategic regional positioning. "It should also aim for the advancement of the semiconductor value chain and enhance regional supply chain resilience while not forgetting sustainability and inclusivity among the local businesses," he told Bernama. The 13MP document is scheduled to be tabled at the Dewan Rakyat sitting on July 31 by Prime Minister Datuk Seri Anwar Ibrahim. In addition, Ahmed Razman said the five-year strategic plan should also promote automation through incentives for technology adoption, support for workforce transitions, and clear and stable policies. "The 13MP should accelerate digitalisation by investing in digital infrastructure, providing incentives for digital adoption, creating ecosystem and collaboration, as well as strengthening cybersecurity and data governance," he added. Meanwhile, Sunway University economics professor Dr Yeah Kim Leng said the 13MP should prioritise creating and enabling an environment for free markets to thrive and for private enterprises to innovate, compete, and prosper. He noted that Malaysia is expected to transition into a high-income nation, as defined by the World Bank, during the 13MP period from 2026 to 2030. Yeah emphasised that one of the key drivers of this transition is the ongoing expansion of high-value and advanced manufacturing and service sectors. "The recent increase in foreign direct investment (FDI) in these areas has enhanced the country's competitiveness and its strategic position as a regional hub for the semiconductor supply chain and data centres. "In addition to semiconductors and data centres, industries such as artificial intelligence (AI) and those related to the Fourth Industrial Revolution (Industry 4.0) are also significant. The 13MP is expected to promote structural advancements in other high-growth and high-value industries, including renewable energy, carbon capture and storage, medical devices, and pharmaceuticals," he said. Yeah added that the 13MP initiatives should also address the increasing demand for more sophisticated and higher-quality services, which will subsequently drive growth in finance, education, healthcare, and aged care.
The Sun
14 hours ago
- Business
- The Sun
Economists: 13MP aims to boost Malaysia's competitiveness through high-value manufacturing
KUALA LUMPUR: The 13th Malaysia Plan (13MP) is expected to enhance Malaysia's competitiveness by promoting high-value manufacturing through business and investor-friendly policies, say economists. Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said that the 13MP, which serves as an indicative plan from 2026 to 2030, will help stimulate both domestic and foreign investments through policy reforms and incentives. 'The 13MP can position Malaysia as a leader by leveraging existing strengths in manufacturing and semiconductors, driving regional integration through ASEAN frameworks and adopting strategic regional positioning. 'It should also aim for the advancement of the semiconductor value chain and enhance regional supply chain resilience while not forgetting sustainability and inclusivity among the local businesses,' he told Bernama. The 13MP document is scheduled to be tabled at the Dewan Rakyat sitting on July 31 by Prime Minister Datuk Seri Anwar Ibrahim. In addition, Ahmed Razman said the five-year strategic plan should also promote automation through incentives for technology adoption, support for workforce transitions, and clear and stable policies. 'The 13MP should accelerate digitalisation by investing in digital infrastructure, providing incentives for digital adoption, creating ecosystem and collaboration, as well as strengthening cybersecurity and data governance,' he added. Meanwhile, Sunway University economics professor Dr Yeah Kim Leng said the 13MP should prioritise creating and enabling an environment for free markets to thrive and for private enterprises to innovate, compete, and prosper. He noted that Malaysia is expected to transition into a high-income nation, as defined by the World Bank, during the 13MP period from 2026 to 2030. Yeah emphasised that one of the key drivers of this transition is the ongoing expansion of high-value and advanced manufacturing and service sectors. 'The recent increase in foreign direct investment (FDI) in these areas has enhanced the country's competitiveness and its strategic position as a regional hub for the semiconductor supply chain and data centres. 'In addition to semiconductors and data centres, industries such as artificial intelligence (AI) and those related to the Fourth Industrial Revolution (Industry 4.0) are also significant. The 13MP is expected to promote structural advancements in other high-growth and high-value industries, including renewable energy, carbon capture and storage, medical devices, and pharmaceuticals,' he said. Yeah added that the 13MP initiatives should also address the increasing demand for more sophisticated and higher-quality services, which will subsequently drive growth in finance, education, healthcare, and aged care. - Bernama
The Star
7 days ago
- Business
- The Star
2Q 2025 GDP likely to grow 4.5-5.5% amid tariff rush
KUALA LUMPUR: Economists have projected the Malaysian economy to expand between 4.5 per cent and 5.5 per cent in the second quarter of 2025 (2Q 2025), driven partly by increased export demand, especially from the United States (US) importers due to heightened fears of impending tariff in August. Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said the service, manufacturing and construction sectors are likely to contribute the most to 2Q 2025 growth. "I expect Malaysia's 2Q gross domestic product (GDP) to show growth. There is also a possibility that the mining and agriculture sectors would make a higher contribution to the economy," he told Bernama. The Statistics Department Malaysia (DOSM) is scheduled to announce the advance GDP estimates for 2Q 2025 on Friday, July 18, followed by an Aug 15, 2025 official announcement. However, Ahmed Razman cautioned that the growth momentum could decelerate in the second half of the year (2H 2025) once the US tariff comes into effect. Nevertheless, the recent reduction of the overnight policy rate (OPR) might catalyse the domestic market to generate higher demand for products and services, he said. On July 9, Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) reduced the OPR by 25 basis points to 2.75 per cent, a pre-emptive measure to preserve Malaysia's steady growth path amid moderate inflation prospects. BNM last kept the OPR at 2.75 per cent in March 2023. It was increased to three per cent in May 2023. Sharing similar views, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said front-loading activities may benefit Malaysia's external sector. "We have seen exports to the US jump 33.6 per cent in the first five months of 2025. "This will sustain growth in 2Q 2025 along with Malaysia's full employment status, which will help propel consumer spending, coupled with investment activities in the private sector," he said. However, Mohd Afzanizam expressed concern that the 2H 2025 economic conditions will be more critical with the US tariff effective Aug 1, 2025. "We can expect US demand to moderate as Americans will have to pay more for imported goods. "The growth moderation will be transmitted in the 2H 2025," he said. Mohd Afzanizam expects 2025 full-year growth to slow to 4.1 per cent against BNM's earlier growth projection of between 4.5 and 5.5 per cent and 2H 2025 GDP to expand to 3.7 per cent. On July 8, the US unexpectedly imposed a higher tariff of 25 per cent on all Malaysian exports effective Aug 1, 2025, one per cent higher than the 24 per cent announced in April 2025. While negotiations for lower tariffs are ongoing between Malaysia and the world's largest economy, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said BNM is currently analysing this year's economic outlook and the tariff impact, and the official economic outlook remains unchanged. - Bernama
The Sun
7 days ago
- Business
- The Sun
2Q 2025 GDP likely to grow 4.5–5.5% amid tariff rush
KUALA LUMPUR: Economists have projected the Malaysian economy to expand between 4.5 per cent and 5.5 per cent in the second quarter of 2025 (2Q 2025), driven partly by increased export demand, especially from the United States (US) importers due to heightened fears of impending tariff in August. Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said the service, manufacturing and construction sectors are likely to contribute the most to 2Q 2025 growth. 'I expect Malaysia's 2Q gross domestic product (GDP) to show growth. There is also a possibility that the mining and agriculture sectors would make a higher contribution to the economy,' he told Bernama. The Statistics Department Malaysia (DOSM) is scheduled to announce the advance GDP estimates for 2Q 2025 on Friday, July 18, followed by an Aug 15, 2025 official announcement. However, Ahmed Razman cautioned that the growth momentum could decelerate in the second half of the year (2H 2025) once the US tariff comes into effect. Nevertheless, the recent reduction of the overnight policy rate (OPR) might catalyse the domestic market to generate higher demand for products and services, he said. On July 9, Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) reduced the OPR by 25 basis points to 2.75 per cent, a pre-emptive measure to preserve Malaysia's steady growth path amid moderate inflation prospects. BNM last kept the OPR at 2.75 per cent in March 2023. It was increased to three per cent in May 2023. Sharing similar views, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said front-loading activities may benefit Malaysia's external sector. 'We have seen exports to the US jump 33.6 per cent in the first five months of 2025. 'This will sustain growth in 2Q 2025 along with Malaysia's full employment status, which will help propel consumer spending, coupled with investment activities in the private sector,' he said. However, Mohd Afzanizam expressed concern that the 2H 2025 economic conditions will be more critical with the US tariff effective Aug 1, 2025. 'We can expect US demand to moderate as Americans will have to pay more for imported goods. 'The growth moderation will be transmitted in the 2H 2025,' he said. Mohd Afzanizam expects 2025 full-year growth to slow to 4.1 per cent against BNM's earlier growth projection of between 4.5 and 5.5 per cent and 2H 2025 GDP to expand to 3.7 per cent. On July 8, the US unexpectedly imposed a higher tariff of 25 per cent on all Malaysian exports effective Aug 1, 2025, one per cent higher than the 24 per cent announced in April 2025. While negotiations for lower tariffs are ongoing between Malaysia and the world's largest economy, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said BNM is currently analysing this year's economic outlook and the tariff impact, and the official economic outlook remains unchanged. - Bernama
New Straits Times
7 days ago
- Business
- New Straits Times
Malaysia's economy poised to grow up to 5.5pct in Q2 on stronger exports, tariff rush
KUALA LUMPUR: Economists have projected the Malaysian economy to expand between 4.5 per cent and 5.5 per cent in the second quarter of 2025 (2Q 2025), driven partly by increased export demand, especially from the United States (US) importers due to heightened fears of impending tariff in August. Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said the service, manufacturing and construction sectors are likely to contribute the most to 2Q 2025 growth. "I expect Malaysia's 2Q gross domestic product (GDP) to show growth. There is also a possibility that the mining and agriculture sectors would make a higher contribution to the economy," he told Bernama. The Statistics Department Malaysia (DOSM) is scheduled to announce the advance GDP estimates for 2Q 2025 on Friday, July 18, followed by an Aug 15, 2025 official announcement. However, Ahmed Razman cautioned that the growth momentum could decelerate in the second half of the year (2H 2025) once the US tariff comes into effect. Nevertheless, the recent reduction of the overnight policy rate (OPR) might catalyse the domestic market to generate higher demand for products and services, he said. On July 9, Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) reduced the OPR by 25 basis points to 2.75 per cent, a pre-emptive measure to preserve Malaysia's steady growth path amid moderate inflation prospects. BNM last kept the OPR at 2.75 per cent in March 2023. It was increased to three per cent in May 2023. Sharing similar views, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said front-loading activities may benefit Malaysia's external sector. "We have seen exports to the US jump 33.6 per cent in the first five months of 2025. "This will sustain growth in 2Q 2025 along with Malaysia's full employment status, which will help propel consumer spending, coupled with investment activities in the private sector," he said. However, Mohd Afzanizam expressed concern that the 2H 2025 economic conditions will be more critical with the US tariff effective Aug 1, 2025. "We can expect US demand to moderate as Americans will have to pay more for imported goods. "The growth moderation will be transmitted in the 2H 2025," he said. Mohd Afzanizam expects 2025 full-year growth to slow to 4.1 per cent against BNM's earlier growth projection of between 4.5 and 5.5 per cent and 2H 2025 GDP to expand to 3.7 per cent. On July 8, the US unexpectedly imposed a higher tariff of 25 per cent on all Malaysian exports effective Aug 1, 2025, one per cent higher than the 24 per cent announced in April 2025. While negotiations for lower tariffs are ongoing between Malaysia and the world's largest economy, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said BNM is currently analysing this year's economic outlook and the tariff impact, and the official economic outlook remains unchanged.
