Latest news with #PolicyAdvisoryCommittee
The Star
29-07-2025
- Business
- The Star
Boosting investor sentiment
PETALING JAYA: As Malaysia gears up to roll out a new investment incentive framework (NIIF) this year, economists believe the country must double down on administrative efficiency and investor support to stand out as a preferred investment destination in an increasingly competitive region. They said that the missing link may no longer be in the policies – but in ensuring the operating environment is truly conducive. Sunway University economics professor Yeah Kim Leng, who also serves as one of five advisers in the Policy Advisory Committee to the prime minister, said that having an attractive investment environment is no longer sufficient. 'We know there are general requirements for creating an attractive investment environment that encourages and fosters investor confidence. 'But that's not enough – confidence also depends on having a conducive operating environment,' Yeah told StarBiz. He said this includes ease of doing business, faster clearance and 'an efficient operating environment that allows them to operate in a more efficient and competitive manner at the lowest possible cost'. While Malaysia has made strides in improving its business environment, Yeah believes further regulatory and legal reforms – particularly at the operational and startup levels – are needed to boost investor sentiment. 'Support should not be limited to financial assistance, but also in terms of administrative and regulatory requirements,' he said. 'We must show our superior hand-holding strategies so that investors are comfortable and can implement their projects quickly.' Despite global headwinds, Malaysia continued to record strong investment numbers. In 2024, the country achieved a record RM378.5bil in approved investments, up 14.9% year-on-year – with domestic investments (DI) making up 55% or RM208.1bil, while foreign investments (FI) accounted for RM170.4bil. The momentum has continued this year. In the first quarter (1Q25) alone, Malaysia secured RM89.8bil in approved investments, up 3.7% from the same period last year – with FI contributing RM60.4bil or 67.3% of total investments, while DI accounted for RM29.4bil or 32.7%. Notably, RM48bil – or 53.4% – of total investments in 1Q25 aligned with focus sectors under the National Investment Aspirations, which prioritise economic complexity, high-value jobs, environmental, social and governance (ESG) adoption and strong domestic linkages. As of June 10, the Malaysian Investment Development Authority (Mida) was managing a pipeline of proposed projects worth RM48.5bil, alongside another RM59.3bil in potential leads currently under negotiation. On these fronts, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the government should examine how well existing tools and support mechanisms are being utilised. 'I suppose we need to go back to the basic question – in light of the existing free trade agreements, what is the utilisation rate among Malaysian firms? Similarly, given all the government assistance which can take the form of grants, microfinancing, tax deductions etc, how much has been utilised,' he questioned. 'If the answer is low, then the government needs to find ways on how the utilisation can be improved.' Mohd Afzanizam also stressed the importance of a smooth experience when navigating government processes. 'At the end of the day, it is about a pleasant experience, especially when dealing with the various levels of government agencies.' He noted that the investment ecosystem spans federal and state authorities, investment promotion agencies and local councils – all of which must coordinate to reduce bureaucratic friction. 'This would mean that the degree of bureaucracy can be quite complicated and therefore, addressing such issues would make the country stand out from the rest of the pack.' Meanwhile, Yeah added that Malaysia could take a leaf out of Singapore's book, especially in terms of administrative efficiency. 'That efficiency, including fast approval and easy access to resolving investors' problems, make up part of the success story of Singapore being able to attract nearly 60% of the total foreign direct investment or FDI inflow into the Asean region.' Commenting on the upcoming NIIF – a new investment incentive structure set to be implemented in 3Q25 – Yeah said that while there is not much information yet, it is expected to enhance Malaysia's competitiveness by aligning incentives with investors' expectations. Still, he believes other key investors' concerns, such as the shortage of skilled labour, must also be addressed. 'There must be a programme to provide win-win solutions for both the government and investors. We can actually focus on fostering greater industry collaboration to provide specialised training,' he said. In the case of the semiconductor industry, for instance, he suggested Malaysia could consider a temporary freeze on foreign talent while ramping up local talent development. The country recently climbed 11 spots to 23rd place in the 2025 World Competitiveness Ranking – its best ranking since 2020, up from 34th last year. The annual report, published by the Switzerland-based Institute for Management Development, evaluates countries based on their ability to create and sustain a business-friendly environment that fosters long-term prosperity. Under the Madani Economy framework, Malaysia is aiming to break into the world's top-12 most competitive economies by 2033. The Ministry of Investment, Trade and Industry (Miti) recently reaffirmed in Parliament its commitment to attracting high-quality investments that align with Malaysia's long-term economic objectives. Together with Mida, Miti said global trade uncertainties call for effective strategies to keep Malaysia attractive to investors and stimulate private investment. 'The government prioritises quality investments that will enhance economic complexity, create high-value jobs for Malaysians, expand domestic linkages, develop new economic clusters and strengthen existing ones, improve inclusivity, and support the ESG agenda.' Miti said the upcoming NIIF, set to be implemented in 3Q25, marks a shift from the current practice of offering incentives based on specific products or activities. 'The NIIF will introduce a new evaluation mechanism for incentive offerings to ensure that better incentives are awarded to high-quality investments,' it said.
Borneo Post
20-06-2025
- Politics
- Borneo Post
1,015 honoured in Sabah awards
KOTA KINABALU (June 20): A total of 1,015 people are conferred awards in conjunction with Yang di-Pertua Negeri Tun Musa Aman's 74th official birthday. Four are given the highest state award while 78 receive the second highest state award. Leading the list was Policy Advisory Committee to the Prime Minister member Dato Ahmad Fuad Md Ali, who was conferred the 'Seri Panglima Darjah Kinabalu' (SPDK), which carries the 'Datuk Seri Panglima' title. Three other people who received the SPDK award were State Rural Development Minister Datuk Jahid Jahim, Home Minister Datuk Seri Saifuddin Nasution Ismail and businessman Datuk Lim Yu Ming. Meanwhile, 78 people have been given the 'Panglima Gemilang Darjah Kinabalu' (PGDK) award, which carries the 'Datuk' title, including Deputy Tourism, Arts and Culture Minister Khairul Firdaus Akbar Khan and Deputy Domestic Trade and Cost of Living Minister Dr Fuziah Salleh, Kapayan assemblywoman Jannie Lasimbang and Pantai Manis assemblyman Mohd Tamin Zainal. In addition, the PGDK award was conferred to Senator Anna Bell Perian, Sabah Progressive Party (SAPP) vice president Chong Pit Fah, National Trust Party (Amanah) Sabah chairman Lahirul Latigu and Parti Bersatu Sabah (PBS) youth chief Christopher Mandut. Also receiving the PGDK were Sabah Electricity chief executive officer IR Mohd Yaakob Jaafar, State Health director Dr Maria Suleiman, Sabah Parks director Maklarin Lakim, Football Association of Malaysia (FAM) president Datuk Joehari Ayub Aman and High Court judge Alexander Siew How Wai. For the third highest award, the 'Ahli Setia Darjah Kinabalu', a hundred people were listed, including former state Unduk Ngadau winners Daphne Iking and Dolly Jimayol, Parti Gagasan Rakyat Sabah (Gagasan Rakyat) Petagas chief Mohd Isquzawan Israq Arsit and Sabah Masters Athletic Association (Samas) president Ramjit Nairulal. There are 181 recipients of the 'Ahli Darjah Kinabalu' award, while 248 have been given the 'Bintang Setia Kinabalu' award, including state footballer Ronny Harun. A total of 109 people will be receiving the Commendable Service Award. As for the Justice of People (JP) title, ten people were conferred, including Malaysian Anti-Corruption Commission (MACC) Sabah chief Datuk Karunanithy Y Subbiah, SMJ Energy Sdn Bhd board non-executive director Datuk Mohd Sofian Alfian Nair and Society of Hope Sabah president Josephine Hadikusumo.
