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Daily Express
17-06-2025
- Business
- Daily Express
Hajiji praised for delivering results
Published on: Wednesday, June 18, 2025 Published on: Wed, Jun 18, 2025 Text Size: Chin noted several initiatives implemented by the Gabungan Rakyat Sabah administration, such as the establishment of the State's energy commission. Kota Kinabalu: A former Sabah Law Society president praised Chief Minister Datuk Hajiji Noor's leadership, saying his administration is helping the State turn the corner. In a Facebook post, Roger Chin said Hajiji's government is laying the foundations of a more self-reliant, results-driven administration. Advertisement Chin noted several initiatives implemented by the Gabungan Rakyat Sabah administration, such as the establishment of the State's energy commission. He said the setting up of the Energy Commission of Sabah marked a turning point in how the State governs its most strategic resource. The State Government's decision to take back 50pc equity in the producing Semarang oil field under State-owned SMJ Energy was also a significant marker of progress in asserting energy sovereignty, he said. 'This shift aligns with the broader spirit of the Malaysia Agreement 1963 (MA63) implementation – returning rights and agency to Sabah without fanfare, but with focus.' Chin also described as 'notable' the creation of the Borneo International Centre for Arbitration and Mediation, which he said were the building blocks of an investor-friendly ecosystem. The State's ability to secure long-term, high-impact investments, such as E-Steel's manufacturing facility and other FDI-led industrial projects, reflected such a shift. 'These are not fly-by-night deals but strategic entries into Sabah's industrial and logistics backbone, particularly in energy-adjacent and halal sectors,' he said. Chin said Sabah has also improved its fiscal standing, noting that the state revenue has seen stable growth, with increased allocations to development budgets. Sabah's reserves have surged to RM8.6 billion from the RM2.93 billion recorded in 2020, which he said was a clear indicator of improved financial governance and expanding revenue streams. 'This reflects not just fiscal prudence, but also stronger performance from some state-linked companies,' he said. He also said the Sabah Government has expanded rural electrification, water access, and road upgrades, which were 'critical interventions' for a state where more than 40pc of the population lives outside urban centres. Chin said while the State Government was gradually tackling longstanding issues in land recognition and native customary rights, much remains to be done. While bureaucratic delays, inequality and capacity constraints persist, he said, the approach adopted by the state government has shifted. 'Instead of headline-chasing, the Sabah Government has chosen institutional depth and economic realism, a style of leadership that may not always grab national attention but is increasingly delivering results on the ground,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
15-06-2025
- Business
- Daily Express
Sabah is at turning point in achieving good governance: Investors finally having confidence in Sabah
Published on: Sunday, June 15, 2025 Published on: Sun, Jun 15, 2025 By: Datuk Roger Chin Text Size: Sabah is beginning to show signs of a state turning a corner. Where past governments have often lacked follow-through or institutional clarity, the current Sabah State Government is quietly but steadily laying the foundations of a more self-reliant, results-driven administration. Across sectors — energy, education, investment, and institutional reform — a more confident Sabah is emerging. Advertisement Building Institutional Muscle - Power, Regulation, and Autonomy The establishment of the Energy Commission of Sabah (ECoS) is more than a bureaucratic development — it marks a turning point in how Sabah governs its most strategic resource. With Sabah Energy Corporation (SEC) now actively managing gas distribution, and with Petronas recognising Sabah's growing autonomy over its own energy landscape, the state is strengthening both regulatory and commercial control over its resources. The approval of 1,000 MW in new power generation capacity under ECoS — including 200 MW of solar and 100 MW of battery storage in Lahad Datu — nearly doubles Sabah's current installed capacity of 1,200 MW. This proactive approach to energy security demonstrates administrative focus in preparing for growing industrial and domestic demand. Taking back 50pc equity in the producing Semarang Oil Field under SMJ Energy was once unimaginable. Today, Sabah holds a historic 50pc stake in an operating oil asset, with further back-in rights on other fields — a significant marker of progress in asserting energy sovereignty. This shift aligns with the broader spirit of Malaysia Agreement 1963 (MA63) implementation — returning rights and agency to Sabah without fanfare, but with focus. Institutional Reform That Inspires Investor Confidence Sabah is no longer just talking about attracting investment — it is doing the hard work of institutional preparedness. The creation of the Borneo International Centre for Arbitration and Mediation (BICAM) is a notable move, signalling that Sabah is serious about dispute resolution infrastructure and legal professionalism. These are the quiet building blocks of an investor-friendly ecosystem. The state's ability to secure long-term, high-impact investments — such as E-Steel's manufacturing facility and other FDI-led industrial projects — reflects this shift. These are not fly-by-night deals but strategic entries into Sabah's industrial and logistics backbone, particularly in energy-adjacent and halal sectors. The government's target of developing 400,000 hectares of industrial tree plantations is also notable, laying the groundwork for a sustainable, regulated timber industry that can support long-term economic and ecological objectives. Fiscal Responsibility and Strategic Spending Under current leadership, Sabah has also improved its fiscal standing. State revenue has seen stable growth, with increased allocations to development budgets. A record-setting education fund through Yayasan Sabah signals not just an investment in human capital, but a turnaround in financial governance. Where once Yayasan Sabah was associated with mismanagement, today it is stabilising its accounts and focusing on outcomes: scholarships, rural education access, and TVET capacity. State reserves have grown from RM2.93 billion in 2020 to RM8.6 billion today — a clear indicator of improved financial governance and expanding revenue streams. This reflects not just fiscal prudence, but also stronger performance from some state-linked companies. For instance, Innoprise Corporation declared RM500 million in dividends over the past four years (since 2021), after previously declaring none. This speaks to stronger GLC performance and improved governance. There's also a sharper focus on aligning spending with long-term returns — whether in roads, ports, industrial parks, or digital infrastructure. Lifting the Rural Heartland Beyond Kota Kinabalu, the state has expanded rural electrification, water access, and road upgrades — critical interventions for a state where over 40pc of the population lives outside urban centres. Programmes aimed at uplifting native and rural entrepreneurs — including agro-based industry support and SME grants — reflect a more inclusive vision of economic participation. The government is also gradually tackling longstanding issues in land recognition and native customary rights, though much remains to be done. A Grounded but Forward-Looking Approach There is no claim here of a perfect government. Bureaucratic delays, inequality, and capacity constraints persist. But the approach has shifted. Instead of headline-chasing, the Sabah State Government has chosen institutional depth and economic realism — a style of leadership that may not always grab national attention but is increasingly delivering results on the ground. From Capacity to Delivery Sabah's next challenge is ensuring delivery keeps pace with ambition. Institutions are being rebuilt, but administrative culture and political stability must continue evolving. The state must also take greater ownership of climate resilience, digital transformation, and youth employment — all of which will define its trajectory over the next decade. Still, for a state so long defined by unrealised potential, the signs today are encouraging. Sabah is not just asking for more from the Federation — it is preparing to do more for itself. The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
Irish Examiner
12-06-2025
- Business
- Irish Examiner
The red tape Ireland's entrepreneurs face must be reviewed
US president Trump's tariffs merry-go-round continues to dominate global headlines. Firms are weary of the oscillation between 'tariffs-on' and 'tariffs-off' — but this pattern shows no sign of abating. It's a truism at this stage, but uncertainty has become the new normal. Understandably, there is concern among Irish policymakers, and indeed the general public, as to what the new economic dispensation will mean for Ireland's FDI-led economic model. FDI companies operating in Ireland deeply value their presence here and the contribution this has made to their business. Many companies have invested heavily in Ireland and dismantling investment of this nature and locating it somewhere else is not easily done, even if firms were minded to do so. And though we don't detect any appetite of this nature in the market there is an issue, however, in relation to further growth of Ireland's stock of FDI in future. The continuing uncertainty is having an impact on firms' investment decisions as they look to incorporate a 'wait-and-see' approach. In this context, it is important to look at Ireland's capability to continue to deliver economic and employment growth in a (still hypothetical) world where the level of FDI is lower than it has been. The health and prosperity of our homegrown businesses will be vitally important in this scenario. Ireland has a track record of generating world-beating businesses, but the reality is the current policy environment is not calibrated to achieve our full potential in this area. Successive governments have sought to introduce various policies to foster more entrepreneurship. Adjustments are made year-to-year across budgets, but the day-to-day reality has been that the design of some of these schemes is not suitable to achieve the desired ends. Tax practitioners like myself and my colleagues are seeing this on a regular basis as we seek to help clients utilise these schemes. KEEP scheme Take the KEEP scheme for example. This is designed to enable companies to grant share options to employees on a tax-efficient basis, essentially so the share is taxed within the capital gains bracket rather than the income tax bracket. Granting share options to employees is a good way of supplementing their remuneration in an environment where large firms with deep pockets are competing for the same talent. The issue with KEEP, unfortunately, is it is not working in practice; take-up is extremely low. What we see in our practice is that firms will tend to opt for so-called 'unapproved' share schemes rather than KEEP, even though the unapproved schemes are taxed more heavily from the perspective of the employee. Why are they doing this? The biggest reason we can see is the limit that attaches to the total value of share options that can be issued to an individual employee (€300,000). There is also a limit of €6m on the total amount of share options that can be issued (across all employees) and unexercised at any point in time. These limits restrict firms' ability to offer really competitive packages across their companies. Instead, they are opting for unapproved schemes that mean employees can be offered a higher value of share options, albeit in a less tax-efficient manner. The UK equivalent of KEEP, which has much less red tape attached, works much better, and the Government should look to draw lessons from it. Angel investor scheme On March 1, the Government commenced the new angel investor relief scheme which aims to incentivise investment in startups by reducing capital gains tax to 16%-18% on the sale by angel investors of these investments. It is early days, but we are not optimistic for take-up. Again, there is a lot of administration work involved for the small firms that are the targeted beneficiaries. They need to hold two certificates, showing they are an innovative company that is a going concern, and obtaining these involves an application process which many companies would need to undertake. In addition, investment by family members, a common source of funding for early-stage companies, has restrictions attached. Taken together, we believe these will serve as a significant brake on uptake of this scheme. A relaxation of the restrictions on family members and a self-declaration process allowing firms to obtain the qualifying certificates would be preferable. Another way to increase take-up would be to allow the relief to apply where investment is directed towards follow-on or expansion funding, rather than simply angel investment. The above are two examples of how Ireland's policy regime could be enhanced to encourage more entrepreneurship. There are others, including changes to the oft-criticised entrepreneur's relief scheme. We know we have a fantastic, knowledgeable, skilled and talented workforce. We are lucky to have it. But at a time like now, when the outlook for growth in FDI is hazy, it's important that we consider how to drive homegrown businesses forward. In this regard, a wholesale government review of policies towards entrepreneurship is warranted. Brendan Murphy is a tax partner at Baker Tilly Ireland
Indian Express
12-06-2025
- Business
- Indian Express
Fiscal and investment credibility, not headline numbers, will drive India's economic growth
Written by Deepanshu Mohan & Ankur Singh Two critical trends have occurred with little discussion or critical reflection. One is the recent data showing inward FDI (Foreign Direct Investment) capital flows reducing, as against the rise observed in outward FDI (capital moving out of the country), which indicates weakening investor confidence and/or low growth in capacity utilisation of existing (or already invested) private capital in key sectors. According to the RBI, India performs well in terms of greenfield FDI (new projects) investments announced during 2024–25, following the US, UK, and France, as the fourth destination most preferred by investors. But what's important is to distinguish 'gross flows' of investment from 'net flows'. As reported and explained, 'Gross flows account only for the FDI that flows into the country. It doesn't take into account the funds that flow out due to foreign companies repatriating funds to their head offices overseas, or foreign investors selling off investments in Indian companies, or Indian companies investing in ventures overseas. Net flows, after accounting for the outward movement of funds, collapsed to just around $400 million in 2024–25, down from over $10 billion the year before.' This is worrying and signals a structural shift in India's FDI-led investment ecosystem. Beyond this trend, Moody's cut the United States' sovereign credit rating on May 16 from AAA to Aa1. The downgrade wasn't in reaction to a crash, a pandemic, or a war. This was also not a sudden moment of fiscal slippage. It was something slower and far more dangerous: the normalisation of fiscal recklessness at the heart of the global monetary order. The timing of this also matters. Unlike the S&P downgrade in 2011, which followed the debt-ceiling standoff, or Fitch's move in 2023 amid post-COVID distortions, Moody's decision came in a year of relative economic calm, at least on the surface. Inflation is easing, unemployment is low, and global markets are more stable than they've been in years. That's what makes the downgrade quietly radical. Under Trump's presidency, the US has doubled down on a mix of tax cuts, tariff wars, and populist spending — all without credible offsets. The so-called One Big Beautiful Bill, heavy on headline-friendly promises like tax exemptions on tips and overtime pay, masks an extraordinary fiscal burden. Independent estimates peg its ten-year cost at over $5 trillion. That's on top of a debt-to-GDP ratio already exceeding 120 per cent. That shift matters for every other country trying to navigate a world built on dollar stability. It matters most for emerging markets like India, which borrow trust before they borrow money. If even the US can lose its fiscal halo, no country is immune from scrutiny. In India, elections have long served as budget announcements. Whether in the corridors of the Centre or on the campaign trail in the states, fiscal responsibility is often the first casualty of political ambition. Loan waivers, free electricity, subsidised gas cylinders, unemployment stipends, direct cash transfers — the list of election-time giveaways has grown longer with each cycle. In recent years, nearly every state election — from Haryana to Jharkhand, Delhi to Maharashtra — has witnessed a scramble among parties to outdo each other in promises of material entitlements: free rides, free water, free laptops. India's general government gross debt stands close to 80 per cent of GDP. Its combined fiscal deficit continues to hover above prudential norms. Yet our politicians treat the budget as an open-ended ledger for electoral engineering, diverting scarce public funds toward short-term voter appeasement rather than long-term nation-building. This erosion becomes all the more dangerous in the context of a shifting global climate — one in which financial markets may no longer be willing to turn a blind eye to fiscal indiscipline, however well-wrapped in democratic legitimacy it may be. Moody's downgrade of the United States marks a turning point. When the world's largest economy, issuer of the global reserve currency and anchor of financial markets, sees its sovereign creditworthiness questioned, it signals a recalibration in how markets view risk. This is not a one-off judgement. It is part of a broader repricing of fiscal credibility — one that should worry emerging economies more than most. With the US downgrade, the club of AAA-rated sovereigns has grown even more exclusive. Germany and Canada, which were long considered models of stability, too are now grappling with their own budget imbalances, prompting speculation that they, too, may soon fall off the list. For India, the implications of this are twofold and urgent. First, it is a reminder that the global financial order no longer offers blanket indulgence to profligacy. Its capital markets remain vulnerable to swings in foreign sentiment, and its monetary policy is constrained by external balances. In such a landscape, credibility must be consistently earned. Second, India's vulnerabilities are institutional. Beneath the headline numbers, what is often ignored is inconsistent tax enforcement, erratic regulatory actions, and delays in judicial and insolvency mechanisms. These are not peripheral issues; they shape how investors price long-term risk. On FDI, behind the headline numbers shared earlier — often denominated in billions of dollars — India has been affected as well. As a share of GDP, net FDI into India peaked at 2.65 per cent in 2009. According to a recent study, other preferred destinations for FDI, such as China or Vietnam, have also seen net FDI as a share of GDP fall in recent years. I have argued earlier that India needs productivism — to borrow from Dani Rodrik's reasoning — and must prioritise the dissemination of productive economic opportunities and investment capital across all sectors and segments of the workforce. This will help utilise effective capital mobility for job creation as well. All this requires a critical shift from fiscal management as a crisis-response to fiscal credibility as the default posture. Markets don't send warnings like this twice. Deepanshu Mohan is Professor of Economics and Dean, IDEAS, Office of InterDisciplinary Studies, Director, Centre for New Economics Studies, Jindal School of Liberal Arts and Humanities. Ankur Singh works at CNES
Irish Examiner
08-06-2025
- Business
- Irish Examiner
Overly bureaucratic policies to encourage entrepreneurship need to be reviewed
US president Trump's tariffs merry-go-round continues to dominate global headlines. Firms are weary of the oscillation between 'tariffs-on' and 'tariffs-off' — but this pattern shows no sign of abating. It's a truism at this stage, but uncertainty has become the new normal. Understandably, there is concern among Irish policymakers, and indeed the general public, as to what the new economic dispensation will mean for Ireland's FDI-led economic model. FDI companies operating in Ireland deeply value their presence here and the contribution this has made to their business. Many companies have invested heavily in Ireland and dismantling investment of this nature and locating it somewhere else is not easily done, even if firms were minded to do so. And though we don't detect any appetite of this nature in the market there is an issue, however, in relation to further growth of Ireland's stock of FDI in future. The continuing uncertainty is having an impact on firms' investment decisions as they look to incorporate a 'wait-and-see' approach. In this context, it is important to look at Ireland's capability to continue to deliver economic and employment growth in a (still hypothetical) world where the level of FDI is lower than it has been. The health and prosperity of our homegrown businesses will be vitally important in this scenario. Ireland has a track record of generating world-beating businesses, but the reality is the current policy environment is not calibrated to achieve our full potential in this area. Successive governments have sought to introduce various policies to foster more entrepreneurship. Adjustments are made year-to-year across budgets, but the day-to-day reality has been that the design of some of these schemes is not suitable to achieve the desired ends. Tax practitioners like myself and my colleagues are seeing this on a regular basis as we seek to help clients utilise these schemes. KEEP scheme Take the KEEP scheme for example. This is designed to enable companies to grant share options to employees on a tax-efficient basis, essentially so the share is taxed within the capital gains bracket rather than the income tax bracket. Granting share options to employees is a good way of supplementing their remuneration in an environment where large firms with deep pockets are competing for the same talent. The issue with KEEP, unfortunately, is it is not working in practice; take-up is extremely low. What we see in our practice is that firms will tend to opt for so-called 'unapproved' share schemes rather than KEEP, even though the unapproved schemes are taxed more heavily from the perspective of the employee. Why are they doing this? The biggest reason we can see is the limit that attaches to the total value of share options that can be issued to an individual employee (€300,000). There is also a limit of €6m on the total amount of share options that can be issued (across all employees) and unexercised at any point in time. These limits restrict firms' ability to offer really competitive packages across their companies. Instead, they are opting for unapproved schemes that mean employees can be offered a higher value of share options, albeit in a less tax-efficient manner. The UK equivalent of KEEP, which has much less red tape attached, works much better, and the Government should look to draw lessons from it. Angel investor scheme On March 1, the Government commenced the new angel investor relief scheme which aims to incentivise investment in startups by reducing capital gains tax to 16%-18% on the sale by angel investors of these investments. It is early days, but we are not optimistic for take-up. Again, there is a lot of administration work involved for the small firms that are the targeted beneficiaries. They need to hold two certificates, showing they are an innovative company that is a going concern, and obtaining these involves an application process which many companies would need to undertake. In addition, investment by family members, a common source of funding for early-stage companies, has restrictions attached. Taken together, we believe these will serve as a significant brake on uptake of this scheme. A relaxation of the restrictions on family members and a self-declaration process allowing firms to obtain the qualifying certificates would be preferable. Another way to increase take-up would be to allow the relief to apply where investment is directed towards follow-on or expansion funding, rather than simply angel investment. The above are two examples of how Ireland's policy regime could be enhanced to encourage more entrepreneurship. There are others, including changes to the oft-criticised entrepreneur's relief scheme. We know we have a fantastic, knowledgeable, skilled and talented workforce. We are lucky to have it. But at a time like now, when the outlook for growth in FDI is hazy, it's important that we consider how to drive homegrown businesses forward. In this regard, a wholesale government review of policies towards entrepreneurship is warranted. Brendan Murphy is a tax partner at Baker Tilly Ireland
