Melanie Chalil
Manager, PR & Communications Membership Affairs
+60 3 9235 1848 melanie.chalil@malaysia.ahk.de
National
Daim wanted brighter future for Malaysia, says family
Former finance minister Daim Zainuddin, who passed away on 13 November at the age of 86, is remembered by his family for his commitment to Malaysia’s progress, unity, and belief in the nation’s potential. His family described him as a humble and compassionate leader who prioritised service over power. During his two terms as finance minister, Daim played a key role in Malaysia's economy, focusing on structural reforms and economic growth. However, he was also facing legal challenges related to corruption allegations, including charges of failing to declare assets, such as ownership in multiple companies and properties.
Starbucks Malaysia confronts long-term sales decline from anti-Israel boycott
Vincent Tan, once Malaysia’s richest man, is facing significant challenges with his Starbucks chain in the country, as the pro-Palestinian boycott of the coffee giant continues to affect sales. Berjaya Food Berhad (BFood), the local licensee of Starbucks, reported a pre-tax loss of RM31.82 million (US$7.1 million) in its latest quarterly results, marking its fourth consecutive quarter of losses. Revenue has dropped more than 50% year-on-year, falling to just RM124.19 million (US$28 million), despite the overall growth of the coffee market in Malaysia. Maybank has warned that Starbucks could continue to face long-term sales struggles due to deeply entrenched consumer sentiment.
Any protectionist policy in trade affects Malaysia, PM Anwar says as Trump returns as US president
Prime Minister Anwar Ibrahim recently warned that protectionist policies, such as potential tariffs under a second Trump presidency, could negatively impact Malaysia, particularly its semiconductor exports to the US, which account for 26% of the country's total. Speaking in an interview with Richard Quest on CNN, Anwar highlighted Malaysia's interest in expanding its economic ties through BRICS, a bloc representing 40% of the global population and contributing 26.2% of global GDP. While Malaysia has benefited from collaborations with the US and Europe, joining BRICS opens up further trade and investment opportunities.
Malaysians’ financial literacy surpasses global average, but 61% still lack emergency savings
Since 2016, financial literacy in Malaysia has significantly improved, approaching the levels of developed countries, according to the 2023 OECD financial survey. However, three key challenges remain: poor financial management, saving habits, and low digital financial literacy. Bank Negara Malaysia's Deputy Governor, Adnan Zaylani, highlighted concerns such as one in four Malaysians struggling with debt, 61% unable to come up with RM1,000 for emergencies, and 15% of teens sharing their banking passwords, increasing vulnerability to online scams. These issues were addressed at the Sarawak Financial Literacy Carnival, part of a nationwide effort to raise awareness and improve financial capabilities across the country.
PM Anwar congratulates Trump on US election win, eyes stronger Malaysia-US ties
Prime Minister Anwar Ibrahim congratulated Donald Trump on his remarkable political comeback and victory in the United States (US) presidential election. “We look forward to working closely with the incoming president to foster mutual benefits for the people of both our nations,” he said on Facebook and X, noting that the US remains Malaysia’s largest source of foreign investment and a vital player in the Asia Pacific region.
Asean must collaborate to resolve South China Sea dispute, says Anwar
Prime Minister Anwar Ibrahim emphasised the importance of ASEAN unity in addressing China’s territorial claims in the South China Sea, advocating for the use of bilateral, multilateral, and ASEAN mechanisms to resolve disputes peacefully. He rejected portrayals of China as aggressive, attributing such narratives to "Western capitalists," and highlighted Malaysia’s strong relations with both China and the United States. Despite Malaysia's opposition to China’s nine-dash-line claims, Anwar stressed that the country's recent inclusion in BRICS would not undermine its stance on defending its maritime rights.
Economy
Malaysia's economy grew by 5.3% in the third quarter
Malaysia's economy grew by 5.3% in the third quarter of 2024, slightly down from 5.9% in the previous quarter, driven by strong investment in structures and machinery, as well as continued export growth. Household spending remained robust due to positive labour market conditions and policy support, while exports benefited from recovering external demand and the global tech upcycle. However, imports also increased due to higher demand for capital and intermediate goods. The manufacturing sector, particularly export-oriented industries, supported growth, though the mining sector's performance was affected by maintenance activities. On a quarter-on-quarter basis, growth slowed to 1.8%. Overall, the economy expanded by 5.2% in the first three quarters of 2024.
Putrajaya targeting domestic rare earths processing within three years
Economy Minister Rafizi Ramli announced that Malaysia aims to start processing rare earth elements (REE) domestically within the next two to three years. Currently, the technology to process REE is only available in China, and discussions are underway to develop the necessary capabilities in Malaysia. Rafizi explained that processing REE locally would make it easier for states to regulate and license REE mining. The government is also focused on leveraging Malaysia's potential in the downstream REE industry, especially to support the electric vehicle sector. A new REE blueprint examining the entire value chain was recently presented at the National Economic Action Council Meeting.
Anwar’s Brazil visit secures RM6.8b export potential
Prime Minister Anwar Ibrahim's inaugural visit to Brazil has led to export potential worth RM6.8 billion (US$1.57 billion) for Malaysia over the next three to five years. This was the result of discussions with 58 industry leaders from 28 top Brazilian companies, focusing on export opportunities in sectors such as oil and gas, semiconductors, palm oil, aerospace, and food and beverages. The visit also fostered business collaborations aimed at strengthening trade ties between the two nations. Bilateral trade grew by nearly 20% in 2024, with Malaysia’s exports to Brazil reaching RM14.83 billion (US$3.2 billion).
Industry
Semiconductor collaboration with Brazil to make M’sia a regional industrial hub, says Zafrul
Malaysia is positioning itself as a regional semiconductor hub through collaboration with Brazil, leveraging its ASEAN chairmanship to boost innovation and manufacturing in the sector. Minister Tengku Zafrul Aziz outlined goals to attract RM500 billion in investments by 2030, create 10 semiconductor champions, and upskill 60,000 engineers. Already the sixth-largest semiconductor exporter globally, Malaysia's strong ecosystem includes global giants like Intel and Infineon. Two memoranda of understanding were signed at a recent Malaysia-Brazil semiconductor meeting to strengthen ties in the industry.
Non-professional graduates must adapt to stay competitive, says expert
Graduates with degrees in general fields face greater challenges in securing employment compared to those with professional qualifications, due to a skills mismatch and lack of adaptability to new work environments. Professor Dr. Tan Peck Leong from Universiti Teknologi Mara (UiTM) noted that non-professional graduates often struggle to find jobs because they are not flexible or proactive enough in acquiring new skills, an issue compounded by a shortage of high-skilled job opportunities in Malaysia, with six graduates competing for every one high-skilled job vacancy. A significant brain drain, particularly of engineers, further exacerbates the problem, as many professionals migrate to countries like Singapore for better opportunities.
620,000 Malaysian jobs across 10 sectors at high risk of displacement by advancement of AI, digital tech and green economy
A study by TalentCorp Malaysia has found that 620,000 jobs across 10 key sectors, including aerospace, energy, ICT, and healthcare, are at risk of displacement due to AI, digital technology, and the green economy over the next 3-5 years. The study highlights that 18% of jobs in these sectors will be highly impacted, while 53% will require upskilling to stay relevant. The research also identified 60 emerging job roles, with a focus on AI, digitalisation, and the green economy. TalentCorp plans to expand the study in 2024 to cover more sectors, aiming to ensure the Malaysian workforce is adaptable and competitive in the evolving global economy.
ESG
Malaysia strengthens sustainability commitment at COP29 ahead of ASEAN chairmanship in 2025
At COP29, Malaysia's pavilion underscores its commitment to sustainability as it prepares for the ASEAN Chairmanship in 2025. With the theme "Shift for Sustainability – Climate Action Now!", Malaysia highlights its climate action achievements and advocates for stronger ASEAN cooperation on sustainable development, environmental protection, and social equity. The pavilion serves as a platform to promote climate-conscious policies, renewable energy, carbon markets, and biodiversity protection while emphasising regional collaboration and youth empowerment to achieve net-zero goals.
Germany and Malaysia need to do more to increase women’s participation in the public sector
Malaysia and Germany face challenges in achieving gender equality in public sector leadership, with prejudice and traditional gender roles hindering women's full participation. German Ambassador Dr. Peter Blomeyer stressed the need for a mindset shift in both countries to make gender irrelevant in political office. At a conference on political participation, he called for greater support for women in politics. The event, organised by the German Embassy, brought together women leaders and experts to discuss solutions for improving women's political involvement.
