Latest news with #NationalEconomicForum2025
The Star
5 days ago
- Business
- The Star
Sim walking the talk for TVET
KUALA LUMPUR: In a move to champion technical and vocational education and training (TVET), Human Resources Minister Steven Sim will be sitting for the Malaysian Skills Certificate (SKM) to pave the way for its importance. Sim is aiming to excel with some 100 industry leaders in the 5th level of the SKM, which is the highest band – for now. The 5th level is the equivalent to receiving an advanced diploma that can secure a job placement. 'The Industrial Revolution 4.0 is a TVET revolution. 'An education programme should be training individuals for the real world by making them learn on the job and by practice,' Sim said during the National Economic Forum 2025 held here yesterday. Sim said in order to invest in a long-term strategy to enhance the value of the country's economy, there is a significant need for diverse skills and talents. He said the Cabinet has agreed to table an amendment to the National Skills Development Act 2006 to increase the levels of SKM to 6, 7 and 8, to enhance the quality of TVET in the country. He said these levels were equivalent to an individual receiving a degree or a master's certification. 'We want to make sure the recipients are not just stuck at level 5 (advanced diploma), but to go all out to higher levels.' He also hopes that the Bill would be tabled in Parliament this year. 'Through TVET, Malaysia can pivot to a high-value, innovation-driven economy by building skilled talent.' He also claimed that traditional universities are not matched for the Industrial Revolution 4.0, which exists for skills. 'An education programme for our future generations should have two components. 'First, learning on the job, and second, learning by practice. 'In other words, a skills training programme or education programme for future talent must be able to adapt to the fast-paced changes in the industry.' He highlighted a flagship programme under the ministry known as Academy In Industry (ADI), which allows students to directly learn within the business environment, in the real world. 'Instead of sitting in classrooms, we want students to learn directly within the business environment,' said Sim while announcing that the programme has almost 2,000 strategic partners from the ministry and 10,000 participants (employees). 'When this programme first started, there were about 40 participants in the first batch. 'After six months of on-the-job, hands-on training, these trainees became so skilled that their future employers said they could expect a starting salary of RM6,000 per month – which is much higher than the minimum wage.' He also pointed out the Ilham programme, which aims to provide 20,000 structured internships focusing on job learning for a longer period without adding more time to their degree courses. 'Under this programme, we not only provide double tax deductions for all your internship expenditures, but allow small and medium enterprises (SMEs) in the outskirts to use Human Resource Development Corporation (HRD Corp) levy to pay their interns.' Meanwhile, Science, Technology and Innovation Minister Chang Lih Kang, who spoke during a plenary session, reiterated the government's commitment to exploring measures to lessen pressure on the business community amid concerns over rising operational costs and new taxes. Responding to calls for the Sales and Service Tax (SST) rate to be reduced to 4%, he said he would convey the concerns to the Cabinet, ensuring the Prime Minister is informed. Acknowledging the difficulties faced by businesses, he said, 'We hope we can relieve some of the burden on the business community. 'I acknowledge the situation is not easy, and discussions with my Cabinet colleagues will focus on how to achieve this.' He said this at the Chambers' Voice – Navigating Malaysia's Path Forward Fireside Dialogue with presidents of Chambers yesterday. When asked about the perceived gap between positive economic indicators and the challenges businesses experience on the ground, Chang highlighted the importance of not solely relying on figures. 'We realise there is always a gap between the indicators and what people are feeling on the ground. 'That's why we need to engage with the business community to understand the real issues they are facing. 'While reforms are aimed at long-term benefits, we must also consider short-term pressures,' he added. Malaysia's business community has been advocating for a revision of the SST, which recently increased from 6% to 8%, alongside concerns over the rising costs of doing business such as electricity tariffs and the planned reduction of fuel subsidies for RON95.
The Sun
5 days ago
- Business
- The Sun
Mosti: National Technology Investment Framework in the works
KUALA LUMPUR: The government is developing a National Technology Investment Framework to tap into growing investor interest in the green economy and to position Malaysia as a key player in sustainable, future-focused sectors. Ministry of Science, Technology and Innovation (Mosti) deputy secretary-general (technology development) Datuk Dr Mohd Nor Azman Hassan said a major challenge lies in convincing investors that Malaysia has the capabilities, resources, and long-term vision to support and sustain green investments. 'While we are rich in natural resources, many of them are still in the development phase. This means we must present a compelling and credible roadmap to demonstrate our readiness,' he said during a panel discussion at the National Economic Forum 2025 (NEF 2025) today. He was speaking in a session focused on attracting investments into Malaysia's emerging economic sectors, especially in areas aligned with global trends such as artificial intelligence and clean energy. 'We believe that with clear and consistent steps, Malaysia can rise to the occasion and become a preferred destination for strategic, long-term investments,' he said. Mohd Nor Azman stressed the importance of demonstrating leadership in sustainability as the world shifts towards greener development. He said Malaysia must show that it is not just keeping pace with global trends but actively leading in areas such as responsible mining and the sustainable use of biodiversity and bio-based resources – sectors where the country holds an international comparative advantage. Using rare earth elements as an example, he explained that these materials are crucial in technologies such as electric vehicles and clean energy systems. However, the challenge is to ensure that the development of these resources is truly sustainable, not only in policy but also in execution. Malaysia, Mohd Nor Azman said, has already made strong global commitments. 'For instance, we've pledged to achieve net-zero emissions by 2050, which anchors our national sustainability agenda. We've also aligned ourselves with international frameworks and developed national strategies like the New Industrial Master Plan and the National Energy Transition Roadmap.' He added that Malaysia is actively collaborating with global partners to ensure that its sustainability efforts remain credible, transparent, and impactful. 'Collaboration remains key. We are not doing this alone,' he emphasised. Through strategic frameworks, global partnerships, and a strong national commitment to sustainability, the country aims to build investor confidence and position itself at the forefront of the global green economy, Mohd Nor Azman said.
The Sun
5 days ago
- Business
- The Sun
Bank Negara likely to maintain OPR at 2.75% for rest of year: AmBank chief economist
KUALA LUMPUR: AmBank Group expects Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75% for the remainder of the year, citing current economic conditions as supportive of the existing rate. AmBank Group chief eonomist Firdaos Rosli said the current OPR level is appropriate and no adjustments are anticipated in the near term. 'We believe the current OPR of 2.75% is adequate. Given the prevailing economic landscape, we do not foresee any changes in the coming months. It is likely to remain unchanged through the end of 2025,' he told reporters at the National Economic Forum 2025 today. However, Firdaos cautioned that the outlook for 2026 may differ, depending on external developments. 'There is still considerable uncertainty surrounding economic conditions in the United States and other key markets. The situation could evolve in ways that impact our projections,' he noted. On Malaysia's economic performance, Firdaos said that second-quarter gross domestic product (GDP) growth may moderate slightly to the lower end of the 4% range, following a decline in the Industrial Production Index (IPI). Malaysia's IPI grew by just 0.3% year-on-year in May, a notable slowdown from the 2.7% expansion recorded in April. 'Given the slowdown in industrial output, GDP growth for Q2 could come in closer to 4%, although still within the targeted range. External trade has remained relatively resilient, which supports overall performance,' he said. He attributed this resilience to front-loading activities, particularly among exporters shipping goods to the United States and other international markets ahead of potential trade disruptions. Firdaos pointed out that the strong 4.4% GDP growth recorded in the first quarter was likely boosted by early festive spending, some of which carried into the second quarter. 'Consumer spending has remained stable, especially with the Hari Raya period falling within the quarter,' he said. AmBank's full-year GDP forecast stands at 3.8%, slightly below the World Bank's projection of 3.9%. 'We are anticipating a general economic slowdown, primarily driven by external headwinds. Consumer and investment confidence remain somewhat subdued, and we expect this trend to continue in the near term,' Firdaos said. While not attributing the slowdown to any specific policy or shock, he emphasised the broader sentiment-driven nature of the deceleration. 'It's a general, broad-based slowdown – not due to any one specific factor such as tariffs – but rather an accumulation of uncertainty in the external environment,' he said. Tariffs, however, remain a key area of concern. 'In my view, tariffs continue to pose a significant uncertainty in the global trade landscape. The United States is taking a bilateral approach, and it's still unclear how other Asean countries will be treated under this policy direction,' he said. Firdaos noted that countries such as Vietnam and Indonesia have already received official communication from the US, while Singapore has not. Malaysia, he said, has also received such correspondence, with negotiations ongoing and expected to continue until August. 'There is a possibility that the negotiation deadline could be extended, which keeps sentiment cautious among businesses and investors,' he added. In light of this uncertainty, Firdaos said, companies may accelerate trade activities to hedge against potential tariff hikes. 'This cautious sentiment is a key reason behind the expected slowdown. Businesses and consumers are taking a more conservative stance amid unresolved global issues.'
The Sun
5 days ago
- Business
- The Sun
Malaysia boosts green tech and deep-tech investments for sustainable growth
KUALA LUMPUR: Malaysia is intensifying efforts to attract high-impact investments in green technology and deep-tech sectors, aligning with the MADANI government's sustainability and digital transformation goals. Science, Technology and Innovation Minister Chang Lih Kang highlighted the country's focus on carbon management, hydrogen energy, and circular economy models to accelerate its low-carbon transition. The government is also exploring advanced nuclear technologies, including Small Modular Reactors (SMRs), to support decarbonisation while boosting high-value R&D and skilled talent development. 'Malaysia is positioning itself as a regional hub for advanced materials, especially rare earth elements (REE), crucial for green technologies and digital industries,' Chang said at the National Economic Forum 2025. Private-sector R&D investment has surged by 17% in 2024, particularly in clean energy and digital health, signaling growing investor confidence. To sustain this momentum, Malaysia is introducing measures such as matching grants and co-investment models to de-risk deep-tech investments. Under the National Biotechnology Policy (DBN 2.0), Malaysia is advancing biotechnology responsibly, addressing ethical concerns like cultured meat production through upcoming guidelines. The policy also aims to strengthen biopharmaceuticals, industrial biotech, and agricultural biotech, positioning Malaysia as a regional bio-based hub. The forum, themed 'Turning Strategy into Reality,' serves as a platform for discussions on economic resilience and investor confidence amid global challenges. It underscores Malaysia's commitment to fostering innovation, inclusivity, and sustainable growth. - Bernama
Barnama
5 days ago
- Business
- Barnama
Malaysia Targets High-impact Green, Deep-tech Investments
Minister of Science, Technology and Innovation Chang Lih Kang delivers speech at the Malaysia Commercialisation Year 2024 Summit here today. KUALA LUMPUR, July 17 (Bernama) -- Malaysia is unlocking high-impact investments at the intersection of sustainability and digital transformation, a key priority under the MADANI government's green growth agenda. Science, Technology and Innovation Minister Chang Lih Kang said this was because innovation in carbon management, hydrogen energy, green materials and circular economy models is being actively advanced to accelerate the nation's low-carbon transition. As part of its long-term clean energy strategy, the government, he said, is also exploring advanced nuclear technologies, including Small Modular Reactors (SMRs), which offer potential not only for decarbonisation but also for driving high-value research and development (R&D), technology transfer and skilled talent development. 'In parallel, Malaysia is positioning itself as a regional hub for advanced materials, especially rare earth elements (REE), which are essential to green technologies, electric vehicles and digital industries,' he said at the National Economic Forum 2025 here today. Chang further said the government is working to strengthen local capabilities across the entire value chain, from sustainable extraction to downstream high-tech applications, through strategic roadmaps such as the National Advanced Materials Technology Roadmap. 'With a 17 per cent increase in private-sector R&D investment recorded in 2024, particularly in clean energy and digital health, investor confidence is rising. 'To build on this momentum, efforts are being made to de-risk deep-tech investments through matching grants, co-investment models and collaborative public-private platforms that foster innovation and long-term growth,' said. On the National Biotechnology Policy (DBN 2.0), Chang said Malaysia is committed to advancing biotechnology safely and responsibly by strengthening institutional readiness and regulatory frameworks, including addressing ethical issues such as cultured meat production in the upcoming National Biotechnology Ethics Guideline, to be launched in September 2025. 'Under DBN 2.0, the sector is driving growth in biopharmaceuticals, industrial and agricultural biotech, with ambitions to position Malaysia as a regional bio-based hub aligned with sustainability and ESG (Environmental, Social and Governance) goals.
