Latest news with #RM8bil
The Star
10 hours ago
- Business
- The Star
Do not cross the ‘red line', Anwar warns foreign powers including US
PUTRAJAYA: No country, including the United States, will be allowed to impose terms that pressure or undermine Malaysia's national policies, Prime Minister Datuk Seri Anwar Ibrahim assures. He stressed that Malaysia would not bow to any foreign powers that "cross the red line" namely, interference in domestic policies such as the prioritisation of local companies and the bumiputra privileges enshrined in the Federal Constitution. The Prime Minister made these remarks at a gathering of the Prime Minister's Department staff at Dewan Da' Seri Endon, Puspanitapuri, on Monday (July 21). Anwar revealed that Malaysia's approved investments at the end of 2024 had reached between RM3.7bil and RM8bil—the highest in the country's history. These include major contributions from the electrical and electronics sector, as well as a significant USD10bil commitment from Amazon Web Services (AWS). He said the achievement had garnered international recognition, 'reflecting strong investor confidence in Malaysia.' Malaysia is currently engaged in complex trade negotiations with the United States, particularly over tariffs introduced during President Trump's administration. The talks, Anwar said, are not only handled by the Investment, Trade and Industry Minister (MITI) but are also being deliberated at Cabinet level due to their significance. While welcoming foreign investment and trade, Anwar drew a firm line on national policy sovereignty. 'Malaysia maintains clear red lines in international negotiations—our national policies must not be interfered with,' he said. He cited the bumiputra policy as an example, stressing that if it were deemed discriminatory by external parties, 'Malaysia will firmly say no.' He affirmed that the country would continue to uphold its 'accepted and established national policies' and would not compromise even if major partners such as the United States disagreed with Malaysia's terms. 'We hope they will agree, but we have already set our red lines,' he added. He added that Malaysia also maintains the right to prioritise local companies in the national procurement system. 'This is a non-negotiable position in our discussions,' said Anwar, adding that Malaysia's negotiations with the US are 'more meticulous and firmer than usual' as a result. Nonetheless, he reiterated Malaysia's commitment to open and friendly trade. 'Malaysia wants to continue trading amicably with all countries, including the United States,' he said, noting that the US remains the largest investor in Malaysia across several key sectors. He also highlighted Malaysia's strong ties with China and reaffirmed the country's commitment to regional cooperation through Asean. He added that his personal relationships with foreign heads of state, such as President Luiz Inácio Lula da Silva of Brazil, have helped facilitate business deals involving Malaysian companies abroad. 'Two years ago, President Lula personally called me and said, 'Anwar, I want to encourage you. Please get Petronas to come here. We've reserved one well for Petronas,'' he shared. Anwar also urged civil servants to ignore critics who claim the government has underperformed. Between 2021 and June 2025, a total of 3,494 manufacturing investment projects were approved by Mida. 'Of these, 3,095 projects have been realised and are operational, representing a high implementation rate of 86.4%. 'In 2023, the realisation rate was 90.6%, while in 2024 it was 79.2%. In the first quarter of this year, the rate was 49.8%, mostly consisting of new projects still in early stages of implementation,' he said. He also noted that Malaysia rose from 34th in 2024 to 23rd in the IMD World Competitiveness Ranking 2025—the only country to climb more than 10 places. 'This jump was driven by strong economic performance and government efficiency,' said Anwar.
The Star
4 days ago
- Automotive
- The Star
Market in motion: Policy crossroads and the electrification curve
AFTER a record-setting 2024, Malaysia's car market is downshifting, not collapsing, rather correcting as it reaches a pivotal juncture. Total industry volume hit 816,700 units last year, a historic peak, but 2025 forecasts suggest a soft landing, with projections ranging between 750,000 and 792,000 units. The sector might not draw much consumer attention, but industry observers are noticing a more stable gear after the post-pandemic demand surge and backlog clearances. What looks like easing demand is more than a number, underneath it lies a deeper reconfiguration – policy pivots, shifting consumer incentives, and a tightening race towards electrification. Two-speed market emerges The policy landscape is not background noise; it has always been the steering wheel. The first looming change is CKD (completely knocked down) vehicle excise duty treatment, set for January 2026, as planned, would add to car prices, likely creating a spike in advance purchases in late 2025. An intended long-term pricing structure causing short-term demand. The second potentially more transformative shift is the RON95 fuel subsidy rationalisation. Designed to ease the fiscal burden and redirect RM8bil annually toward more targeted support, this policy is set to reshape buyer purchase considerations. As fuel prices reflect global markets, the government is creating stronger incentives for consumers to choose more efficient, lower-emission vehicles. This aligns fiscal reform and green mobility to support a scalable transition in the near term. This is expected to cause a short-term slowdown in car sales. However, economists generally believe that the demand for personal cars will continue, as car ownership remains a necessity for many Malaysians, especially outside cities. Even in towns without access to good public transport, families still see cars as essential for work, school and daily errands, even if fuel prices rise. Lower-income B40 (bottom 40%) and much of the M40 (middle 40%) groups are expected to retain protection, but for upper M40 and T20% (top 20%) consumers, the calculations will change. Rising fuel costs will shift preferences toward hybrids (HEVs) and electric vehicles (EVs), not only as lifestyle choices, but as economic ones as well. Through the rationalisation of fuel subsidies, the transition towards more fuel-efficient and electrified vehicles, including HEVs and EVs, will likely accelerate. The tax breaks for EVs further enhance their appeal, creating a combined positive effect that helps the country's environmental goals. Together, these shifts highlight how reactive the market is to policy change and is producing a two-speed market: one where affordability remains protected for some, while others begin to hedge against rising long-term costs through tech-forward vehicle choices. For manufacturers, the signal is clear, diversification is key. EV momentum, policy uncertainty Electrification is gaining traction, but beyond the headlines, there are subtle nuances. EV registrations in Malaysia jumped 110% year-on-year in February 2025, with 2,160 units sold, surpassing HEVs for the first time. The unmistakable momentum in EVs could account for 5% of total car sales in 2025 – a small but fast-growing slice. Behind the surge is a mix of incentives, expanding model choices, and stronger narratives around environmental responsibility. Proton's 7, for instance, led February's EV chart with 580 units, becoming a homegrown success made possible by Geely partnership support and government backing. For the first time, the idea of a mass-market Malaysian EV doesn't feel aspirational but attainable and parked in driveways. Chinese manufacturers are also throwing out the old playbook. BYD has overtaken Nissan to break into Malaysia's top 10 automakers, while Chery continues its upward trajectory. Their aggressive pricing and bundled service offerings are disrupting the established order of legacy players, forcing them to adapt or risk losing out, and reinforcing Malaysian buyers' preference for value above all. In the wider Asean context, the EV market share grew from 9% in 2023 to 13% in 2024, with Thailand and Indonesia actively aiming to be the top EV hub, while Malaysia aims for xEVs to make up 20% of new car sales by 2030 and a bold goal of 80% by 2050. This shows a regional competition for EV dominance, which could lead to more regional trade and robust supply chains integration across member countries. But even as momentum builds, a crucial policy hurdle looms: Malaysia's current EV tax exemptions expire at the end of 2025. There is, as yet, no clarity on what comes next. Without a signal of continuity, investor confidence and consumer adoption risk stalling, echoing the early 2010s, when HEVs were first introduced, derailing momentum by removing policy support. The success of Malaysia's xEV landscape and long-term electrification goals depend not just on product, but on stable and inclusive policy frameworks that do not alienate but fortify existing automotive supply chains. Hybrids: From stopgap to strategic segment While much attention focuses on EVs, the HEV segment deserves a second look. As charging infrastructure expands unevenly and energy grid concerns persist, HEVs offer a flexible, lower-barrier entry point into electrification. Fuel-efficient, range-assured, and infrastructure-light, they present a practical choice for cautiously optimistic adopters. Recent global trends suggest that HEVs and plug-in EVs (PHEVs) are entering a second wind. As EV demand begins to stabilise after its initial surge and fanfare, HEVs are quietly reclaiming ground, offering continuity where full electrification still feels uneasy, especially among those unwilling to fully rely on chargers, or who value range consistency in semi-urban settings. The bigger insight? Electrification isn't binary. It's a spectrum. HEVs/PHEVs represent practical, scalable steps that can reduce emissions without overburdening infrastructure. They offer access without demanding sacrifice, while building public confidence for deeper electrification later. Policy must meet the moment Malaysia's green mobility agenda is ambitious. Targets of 20% xEV share by 2030 and 80% by 2050 position the nation as a regional contender. Good news: we are well on our way. But ambition needs scaffolding. There's an urgent need for a post-2025 policy roadmap – one that doesn't just extend tax breaks but sets out a coherent long-term vision. Such a framework should: > Ensure continuity for xEV incentives, especially for local production and R&D investments; > Include HEVs, PHEVs, and even fuel-cell EVs (FCEV) in the green transition toolkit; > Provide clear policy signals that don't alienate existing supply chain players; > Coordinate with Asean partners on interoperability, trade integration, and component localisation. With Malaysia chairing Asean in 2025, the opportunity is ripe. As Thailand and Indonesia race ahead in EV manufacturing, Malaysia's strength may lie in integration: establishing itself as the connective tissue between production, assembly, and battery innovation across the region. Conclusion: Calibrating the climb 2025 will not be the year Malaysia's automotive market slows – it is the year it recalibrates. Policy has always played a pivotal role, driving at the heart of purchasing decisions. Electrification is no longer fringe, rather an unfolding reality. The winners of this next chapter won't be the loudest marketers or the cheapest importers. They will be the ones who understand the nature of reform, who localise their offering without losing ambition, and who see the road ahead not as a straight path but a multifaceted climb towards a robust, thriving, economically and environmentally sustainable automotive industry for all. The views expressed here are the writer's own.
The Star
08-07-2025
- Business
- The Star
Visits to Italy, France and Brazil achieved key objectives, says PM Anwar
RIO DE JANEIRO: Prime Minister Datuk Seri Anwar Ibrahim said Monday (July 7) that his official visits to Italy, France and Brazil have successfully met their intended objectives. Besides reinforcing bilateral ties, he said the visits also contributed to efforts to attract investments and boost Malaysia's trade relations. Speaking at a press conference at the conclusion of the three-nation visit which began in Italy on July 1, he said it also raised Malaysia's visibility in its capacity as Asean Chair for 2025. He underscored that the mission opened up wider networks for Malaysian companies to expand internationally. The visit to Italy alone generated over RM8bil in potential investments, while the engagements in France brought in RM4bil. Anwar was accompanied by five Cabinet ministers - Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin, and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir was also part of the delegation. The Prime Minister was also joined by a business delegation comprising representatives from leading Malaysian corporates and innovative enterprises, including Petronas, Khazanah Nasional Bhd, Tenaga Nasional Berhad (TNB), Maybank, FGV, YTL Power and Sunway. Anwar's inaugural official visit to Italy came at the invitation of Italian Prime Minister Giorgia Meloni, aimed at deepening bilateral relations across a broad range of sectors. While investment and trade were key priorities, Anwar, who is also Finance Minister, said the trip also provided an opportunity to address geopolitical issues. Anwar stressed that Malaysia's firm stance on humanitarian issues in the Middle East was conveyed clearly, especially on the situation in Gaza and attacks on Iran. He noted that Meloni, French President Emmanuel Macron, and Brazilian President Luiz Inacio Lula da Silva were aligned in their calls to end the violence in Gaza, which has reportedly claimed some 56,000 lives. "Macron has already issued his statement. As for Meloni, she agreed on the need to stop the attacks. She specifically mentioned Israeli aggression and supports peace efforts and the two-state solution, meaning she recognises Palestine as a state," said Anwar. Responding to claims that the visits benefited European nations more - particularly in relation to aircraft purchases - Anwar said the deals would yield long-term benefits for Malaysia. "These aircraft orders were made by airlines, including AirAsia and Malaysia Airlines, but the government also wants the country to benefit," he explained. Malaysia, he said, is seeking to position itself as a hub for aircraft manufacturers such as Airbus and Embraer, particularly in areas like maintenance, repair and overhaul (MRO), training, and supply chain activities. In Brazil, during the 17th BRICS Leaders' Summit, Malaysia drew attention when Anwar was invited to speak at the BRICS Business Forum attended by the Brazilian President. "The forum was opened with a keynote session by the President. Malaysia was given priority even though we are not a full member (of BRICS)," Anwar said. He said that he used the opportunity to stress the need for justice between developed and developing nations, and to raise concerns over the governance of artificial intelligence technologies. The visit to Brazil also allowed Anwar to meet with several world leaders and heads of international organisations. In Rio de Janeiro, the second biggest city in Brazil, the Prime Minister held discussions with South African President Cyril Ramaphosa and three counterparts namely Narendra Modi (India), Pham Minh Chinh (Vietnam), and Mostafa Madbouly (Egypt). Following a meeting with New Development Bank President Dilma Rousseff, Anwar said Malaysia's potential membership in the bank would be considered after a detailed assessment by Bank Negara Malaysia. He added that several Malaysian companies, including Petronas and Yinson Production, have already made inroads into the Brazilian market. - Bernama
The Star
07-07-2025
- Business
- The Star
Sabah's 2025 Budget will increase deficit, worsen economic gap, warns Shafie
KOTA KINABALU: Sabah's rising expenditure under the 2025 Supplementary Supply Bill will increase the state's mounting deficit and worsen the economic gap between the state government and its people, says Datuk Seri Shafie Apdal. Debating the Bill at the Sabah State Legislative Assembly on Monday (July 7), the Senallang assemblyman and opposition Parti Warisan president said that the additional RM1.2bil allocation on top of the previously approved RM6.7bil, pushes total state spending to almost RM8bil this year, yet there remained little clarity on how this would generate tangible returns for the rakyat. 'We are spending billions, but how much revenue are we actually generating? With this scale of spending, I believe Sabah is now facing a serious deficit,' said the former chief minister. Shafie also questioned the government's decision to raise RM900mil through sukuk bonds to bail out Sabah International Petroleum Sdn Bhd, likening the move to the controversial 1MDB case at the federal level. 'The state government is now in debt. A bailout of this size deserves scrutiny. It is not just about issuing sukuk, the real question is, is this money going where it is truly needed?' he asked. He stressed that every sen of public funds must lead to measurable outcomes, such as job creation, income generation, or directly solving issues affecting people's daily lives, particularly the long-standing water and electricity problems in rural areas. Shafie highlighted the frustration of many Sabahans who still struggle to access clean water, referencing some viral videos on social media of families and peaceful riots pleading for basic needs. 'They don't want luxury … they just want basic necessities like water to drink, shower, and use the toilet,' he said. He also criticised what he saw as a mismatch in spending priorities, stressing that millions were spent on state-level events and programmes that yielded little direct impact, while people were still waiting for their needs to be fulfilled. 'When we allocate extra funds, let it be based on need, not the ceremony. The people deserve more than token allocations,' he said. Shafie also raised concerns about the lack of transparency in certain allocations, including an additional RM1bil channelled to the Chief Minister's Department, describing it as odd based on his 36 years of political experience. 'We need clear answers. We request breakdowns, but often receive vague replies, such as 'for schools and students'. 'I will scrutinise and audit these expenditures, and if there is a change in government, I will ensure any abuse is addressed,' he said firmly, referring to the upcoming 17th state election, which is due by year's end. He reminded the House that these were public funds, paid by everyday Sabahans through taxes on basic goods like stationery, phones, and clothing. Touching on key issues like land rights, energy control, and foreign policy, Shafie urged better coordination between federal and state agencies to avoid repeating past mistakes like those seen in the Sipadan and Ligitan disputes. 'We need to work with our neighbours (Indonesia on developing Ambalat), yes … but not at the cost of Sabah's autonomy or resources. Let's not allow others, including PETRONAS, to dominate all our assets. 'We cannot allow this kind of spending to continue without results. The people deserve better … they deserve real development, not promises,' he said.
The Star
05-06-2025
- Business
- The Star
EPF weighs RM8bil sale of UK private hospitals
The fund has appointed broker Knight Frank to offer the 12 properties for sale. KUALA LUMPUR: The Employees Provident Fund (EPF) is preparing to sell a portfolio of UK private hospitals that are valued at about £1.4bil (RM8bil). The fund has appointed broker Knight Frank to offer the 12 properties for sale, people with knowledge of the process said. The hospitals, which an EPF-led consortium bought for about £700mil in 2013, are operated by Spire Healthcare Group Plc, the people said, asking not to be identified as the process is private. Representatives for the EPF and Knight Frank declined to comment. Healthcare property has seen a flurry of interest this year, as investors seek out alternative assets with long-term indexed-linked leases. KKR & Co is vying with Primary Health Properties Plc to buy Assura Plc, a UK landlord that mostly owns doctor surgeries as well as a portfolio of private hospitals that it bought for £500mil last year. Aedifica SA agreed Tuesday to buy rival Cofinimmo in a deal that creates a healthcare real estate investment trust with a combined gross asset value of more than €12bil. The use of private healthcare in the United Kingdom has grown as the country's National Health Service (NHS) struggles to bring down waiting lists that were swollen during the pandemic. A record 4.7 million had private health insurance through their employer in 2023, according to data compiled by the Association of British Insurers last year. The NHS also uses private hospitals to carry out procedures. The state backed healthcare provider spent £2.1bil in private hospitals last year, according to a report by LaingBuisson. It spent a further £1.5bil at private clinics. The UK government announced earlier this year that the NHS would use private healthcare to carry out additional appointments, scans and operations in order to reduce waiting times. — Bloomberg
