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New Straits Times
27-07-2025
- Business
- New Straits Times
Semiconductor sector to benefit from supply chain focus in 13MP
KUALA LUMPUR: Malaysia's semiconductor industry is poised to benefit from the upcoming 13th Malaysia Plan (13MP), as the government seeks to strengthen the country's role in the global supply chain. UniKL Business School economic analyst Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the five-year plan comes at a pivotal time, amid shifting global trade patterns driven by geopolitical tensions and protectionist measures such as the United States' tariff policies. "The semiconductor industry, which is the largest contributor within the manufacturing sector, is expected to spearhead Malaysia's climb up the global value chain. "In light of current US tariff headwinds, it is critical to position Malaysian manufacturers as key global players," he told Bernama in an exclusive interview. Aimi Zulhazmi said the 13MP should also outline clear strategies to advance Malaysia as a producer of high-end chips for artificial intelligence (AI) and advanced electronics. He added that the plan must align with the New Industrial Master Plan (NIMP) 2030, which targets a six per cent growth in manufacturing's contribution to gross domestic product (GDP), particularly through exports. Boosting National Competitiveness Meanwhile, economist Dr Nungsari Ahmad Radhi said the 13MP should address ways to enhance national competitiveness by improving the productivity of both firms and workers. "Productivity means doing things better, and doing better things – which implies adopting newer, more efficient technologies," he said. He noted that if more local firms become globally competitive, higher-paying jobs will follow. Nungsari stressed that development spending must prioritise education – improving the quality of teaching and the learning environment to uplift school standards. "We have many universities, but more must be transformed into research centres that generate intellectual property in strategic fields such as semiconductors, AI and robotics," he said. Given the limited fiscal space for development expenditure, he argued that the 13MP must focus on fundamentals. "Public funds should go towards public goods like education. At the same time, the government can offer fiscal incentives to encourage private sector investment in digitalisation, ESG (environmental, social, and governance) and renewable energy," he added. The 13MP is scheduled to be tabled in the Dewan Rakyat on July 31 by Prime Minister Datuk Seri Anwar Ibrahim.
The Sun
27-07-2025
- Business
- The Sun
Malaysia semiconductor sector to gain from 13MP supply chain focus
KUALA LUMPUR: Malaysia's semiconductor industry is expected to gain significant advantages from the upcoming 13th Malaysia Plan (13MP), as the government prioritises reinforcing the country's position in the global supply chain. UniKL Business School economic analyst Associate Professor Dr Aimi Zulhazmi Abdul Rashid (pic) highlighted that the five-year plan arrives at a crucial moment, coinciding with shifting global trade dynamics influenced by geopolitical tensions and protectionist policies like US tariffs. 'The semiconductor industry, which is the largest contributor within the manufacturing sector, is expected to spearhead Malaysia's climb up the global value chain. In light of current US tariff headwinds, it is critical to position Malaysian manufacturers as key global players,' he told Bernama. Aimi Zulhazmi emphasised that the 13MP should include clear strategies to position Malaysia as a producer of high-end chips for artificial intelligence (AI) and advanced electronics. He added that the plan must align with the New Industrial Master Plan (NIMP) 2030, which targets a six per cent growth in manufacturing's contribution to GDP, particularly through exports. Meanwhile, economist Dr Nungsari Ahmad Radhi stressed that the 13MP should focus on boosting national competitiveness by improving productivity across firms and workers. 'Productivity means doing things better, and doing better things – which implies adopting newer, more efficient technologies,' he said. Nungsari also highlighted the need for development spending to prioritise education, urging universities to evolve into research hubs specialising in semiconductors, AI, and robotics. 'Public funds should go towards public goods like education. At the same time, the government can offer fiscal incentives to encourage private sector investment in digitalisation, ESG, and renewable energy,' he added. The 13MP is set to be tabled in the Dewan Rakyat on July 31 by Prime Minister Datuk Seri Anwar Ibrahim.
New Straits Times
13-05-2025
- Business
- New Straits Times
IPO momentum slows, but market holds steady
KUALA LUMPUR: Heightened global uncertainty, largely stemming from escalating trade tensions, has dampened sentiment across equity markets, putting pressure on initial public offerings (IPOs)—and Malaysia is no exception. Despite the global downturn in IPO activity, Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid said Malaysia's domestic economy remains resilient. "The domestic business climate is certainly good and flush with liquidity. Among them is the lowering of the statutory reserve requirement, while the overnight policy rate is held firm at 3.0 per cent for almost two years, creating financial stability and encouraging positive business growth in all economic segments. "As the export data continue to be challenged by global development, the domestic economy is healthy with low inflation at 1.5 per cent and double-digit growth in the construction industry," he said. As of now, Bursa Malaysia has recorded 20 IPOs for the year, with 17 on the ACE Market and three on the Main Market. However, most of these listings have seen underwhelming performances, reflecting weak investor confidence. A notable example is Fibromat (M) Bhd, which debuted at 46 sen—representing a 16.36 per cent discount from its IPO price of 55 sen—highlighting the effects of ongoing market volatility. The challenging environment has also led to postponements of several planned IPOs. Cuckoo International (MAL) Bhd, which was scheduled to list on the Main Market on April 30, has delayed its debut by two months. Similarly, SPB Development Bhd has pushed back its IPO indefinitely, missing its earlier target date of April 21. According to UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, the ongoing trade tensions and investor caution are key factors behind the postponements. "The gap between Trump's trade rhetoric and concrete policy outcomes continues to fuel investor hesitancy. This uncertain environment necessitates careful IPO timing and a strong emphasis on fundamentals to navigate ongoing market turbulence. "Persistent external risks—including the threat of retaliatory measures from China or other trading partners—may further intensify delays, as companies confront growing concerns from stakeholders across their value chains," he told Business Times. Beyond immediate market implications, Mohd Sedek noted that the slowdown in IPOs could have longer-term effects on corporate governance. IPOs are vital for driving board transitions, attracting new directors, and aligning companies with evolving regulatory standards. "A prolonged IPO drought risks stagnating this dynamism, especially for high-growth sectors like tech and electrical and electronics. Reviving IPO activity is therefore essential, not merely for revitalising capital markets but for reinforcing the adaptive capacity of Malaysia's corporate governance ecosystem," he said. Malaysia's experience mirrors a global trend. Economic and geopolitical uncertainties have prompted IPO delays worldwide. In the US, protectionist trade policies have curtailed capital-raising efforts. India has also seen IPO deferments, with Avanse Financial Services and Anthem Biosciences among the latest to postpone listings. In Europe, fashion e-commerce giant Shein has paused its anticipated London IPO, joining a growing list of delayed debuts that includes Shawbrook Group and fintech firm Ebury. Looking ahead, Mohd Sedek believes Bursa Malaysia could still approach its annual target of 60 IPOs—but cautioned that ongoing uncertainty may temper expectations. "Unless market conditions stabilise significantly and the existing pipeline materialises without major delays – potentially closing the year with 50 to 55 listings, broadly in line with its 2024 performance," he added.
Sinar Daily
06-05-2025
- Business
- Sinar Daily
RM5,000 'decent salary' proposal out of touch with economic reality, says employers' group
RM5,000 decent salary unfeasible for most businesses now. Malaysian Employers Federation (MEF) president deems RM5,000 decent wage proposal unrealistic as employers are still struggling post-pandemic and face rising operational costs. Inset: Datuk Dr Syed Hussain Syed Husman SHAH ALAM – The proposal that a decent salary should be RM5,000 and above for single individuals and families with two children is viewed as unrealistic in the current economic context. Malaysian Employers Federation (MEF) president, Datuk Dr Syed Hussain Syed Husman said this was because most employers, particularly in the micro, small and medium enterprise (MSME) sectors, were still struggling to stabilise their financial footing after the Covid-19 pandemic. Rising operational costs, disruptions in global supply chains and shifts in consumer demand had limited employers' ability to offer salary increases without affecting business continuity. - Bernama photo According to him, rising operational costs, disruptions in global supply chains and shifts in consumer demand had limited employers' ability to offer salary increases without affecting business continuity. "Generally, any proposal to set a decent wage at RM5,000 and above did not take into account the current realities faced by employers and the global economic landscape, especially following the implementation of reciprocal tariffs by the United States (US) on exporters, including Malaysia. "The US's imposition of a 24 per cent reciprocal tariff on Malaysian products added pressure to the country's export competitiveness, even though it had been deferred for three months. "This directly affected company revenues, especially in the manufacturing and export sectors. "If labour costs also rise sharply, Malaysian exporters might lose international markets and investors might shift to countries offering more competitive labour costs," he told Sinar. Recently, UniKL Business School economist Associate Professor Dr Aimi Zulhazmi Abdul Rashid opined that the ideal and decent wage for single individuals or families with two children should be around RM5,000 and above, depending on whether they live in urban or rural areas. He stated that, based on data from the Department of Statistics Malaysia (DOSM), the average monthly basic decent living expenses (PAKW) for a household in 2023 was RM4,729. In fact, he further clarified that the PAKW in urban areas was higher than in rural areas, with figures at RM5,040 and RM3,631 respectively. To this, Syed Hussain believes that discussions on salary issues should be carried out comprehensively, involving the government, employers and employees, based on productivity data and actual economic growth. He also suggested that salary increases should be implemented gradually, in line with rising productivity and employers' financial capabilities. More Like This
