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New Straits Times
a day ago
- Business
- New Straits Times
Malaysia makes solid progress under RMK12 despite global headwinds
KUALA LUMPUR: The 12th Malaysia Plan (RMK12) has yielded moderate success in steering Malaysia's post-pandemic recovery and advancing development priorities, said economists. While the national development blueprint delivered meaningful gains in infrastructure, digitalisation and social protection, it fell short of several key economic targets due to a combination of global disruptions and persistent structural challenges. UiTM's Business Management Faculty senior lecturer Mohamad Idham Md Razak said the five-year plan made notable gains in infrastructure with projects such as the East Coast Rail Link and Pan Borneo Highway. This, in turn, enhanced regional connectivity and economic integration. Meanwhile, digital transformation is supported by MyDigital initiative, while 5G network coverage reaching 80 per cent of populated areas and boosting small and medium entreprises digital adoption. In the energy transition, Idham said Malaysia raised its renewable energy share to 25 per cent, supported by solar and hydropower projects - a move aligned with the nation's carbon neutrality goals. He added that Bantuan Prihatin Rakyat (BPR) cash aid and MySalam health insurance provided critical support to low-income households, reducing immediate hardship. These initiatives, he said, demonstrate RMK12's focus on modernisation and inclusivity, although long-term structural reforms remain pending. "The RMK12 (2021-2025) has achieved moderate success in advancing Malaysia's economic and development goals, though external disruptions and structural challenges have hindered full attainment," he told Business Times. Doris Liew, an economist specialising in Southeast Asian development, said RMK12 has registered some success in steering post-pandemic economic recovery. She noted that economic growth remained robust between 2022 and 2024, while unemployment stabilised around 3.0 per cent, near the natural rate, indicating that the economy is approaching full employment. "Key drivers include continued industrialisation, particularly in the manufacturing sector, increased foreign direct investment inflows and the development of strategic initiatives such as the Johor-Singapore Special Economic Zone. "Strong job creation in 2024 points to encouraging signs of a growing and relatively resilient economy," she added. CHALLENGES: PRODUCTIVITY LAG AND INEQUALITY PERSIST Originally designed to steer Malaysia toward a high-income, inclusive and sustainable economy, RMK12 targeted an annual GDP growth rate of 4.5-5.5 per cent. Idham, however, said the actual growth hovered around 4.0 per cent in recent years, weighed down by external shocks such as global inflation, post-pandemic supply chain disruptions and geopolitical uncertainties. Meanwhile, productivity growth, at 1.8 per cent, fell short of the 3.7 per cent target, while income inequality and fiscal constraints persisted due to sluggish wage growth and a high national debt level over 60 per cent of gross domestic product (GDP). "Social welfare programs like BPR cash aid and MySalam health insurance helped mitigate poverty, but urban-rural disparities remain unresolved," he said. Idham said RMK12's primary shortfalls were in productivity growth, fiscal sustainability and equitable development. Despite targeting 3.7 per cent annual productivity growth, he said the country achieved only 1.8 per cent, due to slow automation, skills mismatches and reliance on low-wage labour. "Fiscal constraints, including high debt levels that is over 60 per cent of GDP and inefficient subsidies, limited public investment in critical areas. "While urban centers thrived, rural and East Malaysian regions saw slower progress in infrastructure and job creation, exacerbating inequality," he said. Liew said deeper structural challenges persist, noting that Malaysia remains below the high-income threshold and has made only gradual progress in advancing up the manufacturing value chain. She said human capital constraints, especially in science, technology, engineering and mathematics (STEM) continue to weigh on the country's competitiveness. The National Semiconductor Strategy (NSS), which aims to train 60,000 engineers, appears to be falling behind schedule, a sign that the economy's structural composition has seen little meaningful transformation over the past five years. "Moreover, the transition towards electric vehicles and broader sustainability goals has been relatively sluggish," she said.
Focus Malaysia
7 days ago
- Business
- Focus Malaysia
Aluminium prices hold strong despite US tariff concerns
DESPITE ongoing uncertainties due to the US tariffs, we believe aluminium prices will remain supportive amid the tight global supply, albeit offset by moderating demand. 'We remain positive on the outlook for aluminium smelters mainly due to easing alumina costs,' said RHB. LME aluminium prices have been more volatile with the imposition of US tariffs, dropping to a low of USD2,300/tonne in April, but prices have since recovered to USD2,600/tonne. While the tariffs have raised concerns on slower demand for aluminium, LME aluminium prices are supported as the overall global supply remains tight amid delays in the ramping up of new smelting capacity in Europe due to high energy costs, and limited room to grow in China as it nears the 45m tonne annual production cap. That said, the Main Japanese Port (MJP) premium has fallen by 58% year-to-date (YTD) due to the higher supply in Asia following reduced interest in exporting to the US, whereas the US Midwest premium has risen 200% YTD. On the cost side, alumina prices have decreased 46% YTD, accounting for only 14% of LME aluminium prices, down from a peak of 31% in Dec 2024, as supply chain disruptions from Guinea eased. This bodes well for aluminium smelters, with a ramp-up in new refinery capacities in Asia. In the longer term, we remain positive on PMAH as it targets increasing alumina self-sufficiency from 23% currently to c.99% by 2027, with the new refinery project in Indonesia. Even if alumina prices fall further, Indonesia remains costcompetitive for alumina refineries due to its bauxite export ban. Conversely, carbon anode costs have risen 23% YTD, driven by higher petroleum coke prices, following supply disruptions. That said, margin should still be supported as carbon anodes make up a relatively small portion of smelting costs. Last week, the Transport Ministry formally approved the scheme for MRT Circle Line, or also known as MRT 3. Land acquisition is expected to be completed by end-2026, with contract awards and construction of the 51.6km line to begin in 2027. We believe this will boost demand for cement in the midlong term, and anticipate LMC to be one of the biggest beneficiaries, given its huge market share of 60-70%. Additionally, while LMC's cement supply contract for the East Coast Rail Link Phase 1 ended in 2024, management guided that it is still supplying cement for Phase 2, albeit without an exclusive contract. We note that bulk cement prices have remained stable at MYR380/tonne since Jul 2023, while coal prices have declined by 12% YTD, easing cost pressures for cement producers. Key downside risks are rising input costs and a global slowdown, which could tamper construction activity and weaken demand for aluminium and cement. —July 23, 2025 Main image: Aluminium Online
New Straits Times
21-07-2025
- Politics
- New Straits Times
Jho Low reportedly living in luxury in China under unofficial protection
KUALA LUMPUR: Fugitive financier Low Taek Jho, better known as Jho Low, is reportedly living in luxury in China under unofficial protection, according to fresh claims by investigative journalists Bradley Hope and Tom Wright. Speaking in their podcast, Finding Jho Low, which aired on Friday, the authors of Billion Dollar Whale revealed that Low is allegedly residing in Shanghai's upscale Green Hills neighbourhood and operating under a forged Australian passport using the alias "Constantinos Achilles Veis." They claimed that former Prime Minister Datuk Seri Najib Razak had allegedly advised Low to flee the country as scrutiny of the 1Malaysia Development Bhd (1MDB) scandal intensified, prompting him to escape to China where he had familial ties in the Chiuchow region. "Despite being a fugitive, he is living comfortably, driving luxury cars and accompanied by Chinese security guards. It appears he is not under house arrest but enjoying an unrestricted life," Hope said in the podcast. Hope and Wright, who spent years tracking Low's global movements, also alleged that Malaysia lost as much as US$6 billion (RM28 billion) in Belt and Road Initiative-linked projects that were engineered with Low's involvement, mirroring the pattern of financial manipulation seen in the 1MDB scandal. Among the most revealing claims was that Low had allegedly cultivated ties with high-ranking Chinese political figures and intelligence officers, positioning himself as a "shadow broker" who influenced Malaysia's foreign policy tilt towards Beijing. The podcast also highlighted how Low allegedly played a role in corrupt infrastructure deals such as the East Coast Rail Link (ECRL) project, which involved bribes to Chinese officials, including former deputy public security minister Sun Lijun, who was later jailed for corruption. A turning point in the investigation came in 2019 when a photo of Low at Shanghai Disneyland surfaced. Analysts said the image helped identify his close-knit circle and added weight to claims that he is under unofficial protection by Chinese authorities. Hope and Wright suggested that Low has rebranded himself in China as a "dark arts coordinator," helping Chinese companies navigate complex regulatory environments, especially when dealing with the United States. "He is not just hiding. He is actively helping Chinese entities operate in hostile geopolitical terrain. That makes him valuable," Wright said. The journalists also claimed that Low had maintained an office at the Shanghai World Financial Centre, further suggesting he was actively engaged in financial or strategic work, rather than merely evading law enforcement. Much of the information shared in the podcast came from undisclosed documents and confidential sources, which the journalists said they could not reveal due to safety concerns. These revelations challenge earlier assumptions that Low was under house arrest or moving covertly from one location to another. Instead, they paint a picture of a man who remains influential and protected within a powerful foreign system. Law enforcement agencies, including those in Malaysia and the United States, may now have to recalibrate their approach in seeking Low's return as calls grow louder for accountability in the multibillion-dollar corruption scandal.
New Straits Times
21-07-2025
- Business
- New Straits Times
ECRL extension to Rantau Panjang poised to boost manufacturing, border trade
KUALA LUMPUR: The proposed extension of the East Coast Rail Link (ECRL) from Kota Bharu to Rantau Panjang in Pasir Mas is poised to catalyse Kelantan's manufacturing sector and strengthen cross-border trade with Thailand. Kelantan Deputy Menteri Besar Datuk Dr Mohamed Fadzli Hassan said the state government has charted strategic development plans along the ECRL corridor to capitalise on its logistics and connectivity advantages. He said key among them is a Cargo Oriented Development (COD) at Pasir Puteh Station, aimed at attracting both domestic and foreign investors. The project is expected to spur high-value downstream activities, including logistics services, packaging, and raw material supply chains. Complementing this is a Transit Oriented Development (TOD) at Tunjong Station in Kota Bharu, envisioned as a new economic hub that integrates transport, commercial, and residential components — creating jobs and improving quality of life. Mohamed Fadzli said the extension is timely, as it aligns with Malaysia's bilateral initiative with Thailand to revive the existing KTMB line between Pasir Mas and Sungai Golok, reconnecting the countries' rail networks and boosting regional trade. The Kelantan government is advocating for the extension to reach Rantau Panjang, diverging from the original planned alignment to Tumpat. However, the proposal remains under review by Malaysia Rail Link Sdn Bhd (MRL) and the Ministry of Transport, he said during the State Legislative Assembly sitting at the Kota Darulnaim Complex today, in response to a question from Mohd Adanan Hassan (PAS–Kelaboran), Bernama reported. Transport Minister Anthony Loke had earlier confirmed that the ministry is evaluating the feasibility of the extension, noting its potential to strengthen logistical links between Malaysia and Thailand. The 665km ECRL project crosses the East Coast states of Kelantan, Terengganu and Pahang before connecting to Selangor on the West Coast of Peninsular Malaysia.
The Sun
21-07-2025
- Business
- The Sun
Kota Bharu to Pasir Mas ECRL extension under study
KOTA BHARU: The proposal to extend the East Coast Rail Link (ECRL) from Kota Bharu to Rantau Panjang in Pasir Mas is still under review by Malaysia Rail Link Sdn Bhd (MRL) and the Ministry of Transport. Kelantan Deputy Menteri Besar Datuk Dr Mohamed Fadzli Hassan stated that the proposal aligns with plans to revive the railway link between Malaysia and Thailand. 'The Kelantan government is proposing that the ECRL line be extended to Rantau Panjang instead of the original alignment in Tumpat,' he said during the State Legislative Assembly sitting. The move aims to strengthen connectivity with Thailand, where discussions are ongoing to restore the Pasir Mas-Sungai Golok rail link under KTMB. Transport Minister Anthony Loke confirmed that the ministry is evaluating the proposal to enhance cross-border rail connectivity. Meanwhile, the Kelantan government has outlined strategic plans to maximize economic benefits from the ECRL project, including Cargo Oriented Development (COD) at Pasir Puteh Station and Transit Oriented Development (TOD) at Tunjong Station. 'The COD initiative will attract investments and stimulate downstream economic activities, while TOD will revitalize Tunjong as a new township,' Mohamed Fadzli added. The ECRL is set for full completion by end-2026, with Kota Bharu-Gombak operations starting in January 2027 and the Gombak-Port Klang line a year later. - Bernama
