Impressive growth chalked up in first quarter 2024
Nga: The ongoing property stock rally is expected to continue into the second half of 2024.
PETALING JAYA: The property market has a “bright future” in the coming years under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, says Housing and Local Government Minister Nga Kor Ming.
Interestingly, the minister also made a forecast that the ongoing property stock rally is expected to continue into the second half of 2024.
He said this in a statement where he noted that property stocks on Bursa Malaysia have rallied by up to 600% since the beginning of 2023.
Nga also pointed out that property transactions reached RM56.53bil in the first quarter of 2024 (1Q24), demonstrating an “impressive growth”.
Premised on investors’ bullishness on property stocks and the market appetite for properties, Nga said the local property market is expected to be stable this year.
The market is also likely to continue growing in the next three years, supported by various initiatives outlined by the Madani government under Budget 2024, he added.
“We must work together to enhance our industry’s reputation and increase the confidence level of investors to make the property market even more resilient,” the minister said.
Nga also noted that property counters in the stock market have been on the rise from January 2023 to June 2024.
Out of 100 property counters on Bursa Malaysia, approximately 76 counters experienced an increase in share price, 22 counters showed a decrease in share price and two counters maintained their share price despite fluctuations.
For instance, DPS Resources Bhd experienced 600% growth in its share price, UEM Sunrise Bhd saw a 347.06% increase and WMG Holdings Bhd also showed a 326.31% growth from January 2023 to June 2024.
A total of 23 counters have at least doubled their share price in the period, based on data provided in Nga’s statement.
Meanwhile, the minister highlighted the impressive growth in Malaysian property transactions.
“In 1Q23, Malaysia’s property market transactions were valued at RM42.31bil, with more than 89,000 transactions recorded. In contrast, in 1Q24, property market transactions reached RM56.53bil, with more than 104,000 transactions, marking an increase of RM14.22bil in terms of value.
“This significant growth indicates that Malaysia’s property market is recovering well and on the rise,” he said.
About three weeks earlier, Nga reportedly said that the country’s property overhang was clearing up. Quoted by Bernama, Nga said that since the Madani government took office, the number of completed but unsold property units had decreased by over 40% with a drop from 37,066 units to fewer than 24,000 units.
Johor Baru unexpectedly topped residential sales last year, beating property hotspots in Kuala Lumpur and Selangor. The positive growth of the property market in the state can be attributed to economic projects and transport links...
All smiles: Anwar taking pictures with Malaysians at an event in Imperial hotel in Tokyo. — Photo taken from Anwar’s Facebook page
KUALA LUMPUR: Malaysia, which has long looked to Japan and South Korea as models for economic development, is now also interested in learning from China, says Prime Minister Datuk Seri Anwar Ibrahim.
“We need to be open to revise any policy that has been in place for 40 years,” he told Asahi Shimbun in an interview in Tokyo on Sunday.
He was referring to the Look East Policy that fourth prime minister Tun (then Datuk Seri) Dr Mahathir Mohamad introduced in 1982 to learn economic modernisation strategies primarily from Japan and South Korea.
“I wouldn’t say ‘East’ (in this policy) means Japan and South Korea minus China. Now, when we say ‘Look East,’ it’s East (including China),” he was quoted as saying by the Japanese newspaper, according to Bernama.
Anwar added that because digital technologies, cybersecurity and other issues are changing the world, Malaysia needs to expand on the decades-old policy while continuing its aspects that remain beneficial.
The Prime Minister was on a five-day working visit to Tokyo from Dec 15 to attend a summit celebrating the 50th anniversary of the friendship and cooperation between Japan and Asean.
Malaysia, he said, advocates a “fiercely independent” foreign policy, and the country will deal with China depending on Malaysia’s interests.
He said when he was in the United States recently (for Asia-Pacific Economic Cooperation 2023), he was asked why Malaysia was tilting towards China.
He replied: “Because they’re investing more.”
But Anwar said Malaysia will firmly negotiate with China over territorial disputes in the South China Sea and not allow any unilateral action by Beijing.
The Prime Minister also described Japan as a “very important strategic partner”, adding that Malaysia’s relationship with Japan should be expanded under the Look East Policy such as sharing the Japanese work ethic and its technologies.
According to Asahi Shimbun, Japan announced on Dec 16 that it will provide equipment for warning and surveillance activities worth JPY400mil (RM13mil), including rescue boats and drones, to the Malaysian military under the official security assistance programme.
Anwar emphasised that the defence equipment is designed to help Malaysia protect its territorial waters and does not include any submarines or large aircraft.
“The assistance is mainly for our own security needs, not for offensive or aggressive means,” it quoted Anwar as saying.
Meanwhile, Anwar attended a high-tea event with the Malaysian diaspora at the Imperial Hotel in Tokyo on Monday.
There were 416 attendees ranging from students to those working and residing in Japan.
Also present at the event were Foreign Affairs Minister Datuk Seri Mohamad Hasan and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Anwar spoke about the need for Malaysians to change their mindset and free themselves from the racial and religious divisions that undermine unity.
To a concern from a postgraduate student that their salaries are not commensurate with their qualifications when they return home, Anwar said the government is also looking into ways to improve wages for all.
Another student voiced concern that students sent to Japan are opting to remain and work there after completing their studies.
Anwar replied that they are encouraged to work overseas, especially when they can learn the Japanese work culture, but should return and contribute to their country when the time comes.
Prior to the event, Anwar and his wife Datuk Seri Dr Wan Azizah Wan Ismail were at the Imperial Palace where they had an audience with Emperor Naruhito and Empress Masako
KUALA LUMPUR: Malaysia’s Look East Policy with the inclusion of China is a wise and necessary move given the latter’s rapid economic rise, says the Federation of Chinese Associations Malaysia (Huazong).
“The time has come for us to fine-tune and further expand,” said its president Tan Sri Goh Tian Chuan.
The same policy with Japan as the role model was first introduced by former prime minister Tun Dr Mahathir Mohamad in 1982 – 41 years ago.
Goh said with China’s rapid economic growth over the past decades that saw it overtaking Japan as the world’s second largest economy, it is timely for Prime Minister Datuk Seri Anwar Ibrahim to include China in Malaysia’s Look East Policy.
“This is especially appropriate, as China overtook Japan as the world’s second largest economy 13 years ago with the United States remaining the largest economy.
“So, for any nation to ignore China’s economic prowess will be unwise diplomatically and economically,” he told Bernama yesterday.
Malaysia and China will celebrate the 50th anniversary of diplomatic relations next year.
With Malaysia being the first Asean nation to establish diplomatic ties with China in 1974, Goh emphasised that it is an opportunity for Anwar to moot the idea.
He noted that Anwar has conducted two official visits to China and successfully brought in a host of advanced Chinese technologies and financially strong investors to set up operations and collaborate with Malaysian businesses, since he became the Prime Minister in November last year.
“I strongly believe that with a strong and stable strategic partnership in Anwar’s era, diplomatic relations between Malaysia and China will be at its peak,” he added.
Goh said more Chinese are expected to invest in Malaysia following the positive shift in the present government’s stance towards Chinese investments, coupled with closer bilateral ties under his leadership.
Malaysia-China bilateral trade hit a record high of US$203.6bil (RM948.38bil) in 2022.
For the first nine months of 2023, trade with China was recorded at RM410.01bil, with exports at RM174.55bil, mainly comprising shipments of electronics and electrical products, palm oil and palm oil-based agriculture products as well as iron and steel products.
He said Malaysia could boost its collaboration with China in the field of advanced technologies, such as aerospace, automotive, high-speed rail, artificial intelligence, drone technology, e-commerce, logistics and packaging as well as environmental technologies.
“Other sectors that are worth collaborating include higher education, human resources, culture and tourism, which will ultimately boost bilateral trade and social relations between Malaysia and China,” he added.
#Shenzhou17 crew will soon conduct their first spacewalk mission after having stayed and worked in the #ChinaSpaceStation for 54 days, the CMSA announced on Wednesday.
UALA LUMPUR, Dec 12 — Following is the full list of Cabinet ministers and deputy ministers in the unity government following the Cabinet reshuffle announced by Prime Minister Datuk Seri Anwar Ibrahim today.
Prime Minister and Minister of Finance
Datuk Seri Anwar Ibrahim
Minister of Finance II
Datuk Seri Amir Hamzah Azizan (new)
Deputy Minister of Finance
Lim Hui Ying (formerly Deputy Education Minister)
Deputy Prime Minister and Minister of Rural and Regional Development
Datuk Seri Ahmad Zahid Hamidi
Deputy Minister of Rural and Regional Development
Datuk Rubiah Wang
Deputy Prime Minister and Minister of Energy Transition and Public Utilities (a new ministry — split from the Ministry of Natural Resources, Environment and Climate Change (NRECC))
Datuk Seri Fadillah Yusof (also in charge of Sabah, Sarawak Affairs)
Deputy Minister of Energy Transition and Public Utilities
Akmal Nasrullah Mohd Nasir
Minister of Transport
Anthony Loke Siew Fook
Deputy Minister of Transport
Datuk Hasbi Habibollah
Minister of Agriculture and Food Securities
Datuk Seri Mohamad Sabu
Deputy Minister of Agriculture and Food Securities
Datuk Arthur Joseph Kurup (formerly Deputy Minister of Science, Technology and Innovation)
Minister of Economy
Rafizi Ramli
Deputy Minister of Economy
Datuk Hanifah Hajar Taib
Minister of Local Government Development
Nga Kor Ming
Deputy Minister of Local Government Development
Datuk Aiman Athirah Sabu (formerly Deputy Minister of Women, Family and Community Development)
Ministry of Foreign Affairs
Datuk Seri Mohamad Hasan (formerly Minister of Defence)
Deputy Minister of Foreign Affairs
Datuk Mohamad Alamin
Minister of Works
Datuk Seri Alexander Nanta Linggi
Deputy Minister of Works
Datuk Seri Ahmad Maslan (formerly Deputy Minister of Finance)
Minister of Home Affairs
Datuk Seri Saifuddin Nasution Ismail
Deputy Minister of Home Affairs
Datuk Seri Dr Shamsul Anuar Nasarah
Minister of Investment, Trade and Industry
Datuk Seri Tengku Zafrul Abdul Aziz
Deputy Minister of Investment, Trade and Industry
Liew Chin Tong
Minister of Defence
Datuk Seri Mohamed Khaled Nordin (formerly Minister of Higher Education)
Deputy Minister of Defence
Adly Zahari
Minister of Science, Technology and Innovation
Chang Lih Kang
Deputy Minister of Science, Technology and Innovation
Datuk Mohammad Yusof Apdal (formerly Deputy Higher Education Minister)
Minister of Women, Family and Community Development
Datuk Seri Nancy Shukri
Deputy Minister of Women, Family and Community Development
Datuk Seri Noraini Ahmad (new)
Minister in the Prime Minister’s Department (Law and Institutional Reform)
Datuk Seri Azalina Othman Said
Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform)
M.Kulasegaran (new)
Minister of Natural Resources and Sustainability (a new ministry — split from NRECC)
Nik Nazmi Nik Ahmad
Deputy Minister of Natural Resources and Sustainability
Datuk Seri Huang Tiong Sii
Minister of Entrepreneur Development and Cooperatives
Datuk Ewon Benedick
Deputy Minister of Entrepreneur Development and Cooperatives
Datuk R. Ramanan (new)
Minister of Higher Education
Datuk Seri Zambry Abd Kadir (formerly Minister of Foreign Affairs)
Deputy Minister of Higher Education
Datuk Mustapha @ Mohd Yunus Sakmud (formerly Deputy Minister of Human Resources)
Minister of Tourism, Arts and Culture
Datuk Seri Tiong King Sing
Deputy Minister of Tourism, Arts and Culture
Khairul Firdaus Akbar Khan
Minister of Communications (a new ministry — split from Ministry of Communications and Digital)
Fahmi Fadzil
Deputy Minister of Communications
Teo Nie Ching
Minister of Education
Fadhlina Sidek
Deputy Minister of Education
Wong Kah Woh (new)
Minister of Unity
Datuk Aaron Ago Anak Dagang
Deputy Minister of Unity
Saraswathy Kandasami (formerly Deputy Minister of Entrepreneur Development and Cooperatives)
Minister in the Prime Minister’s Department (Religious Affairs)
Datuk Mohd Na’im Mokhtar
Deputy Minister in the Prime Minister’s Department (Religious Affairs)
Zulkifli Hassan (new)
Minister of Youth and Sports
Hannah Yeoh
Deputy Minister of Youth and Sports
Adam Adli Abd Halim
Minister in the Prime Minister’s Department (Federal Territories)
Dr Zaliha Mustafa (formerly Minister of Health)
Minister of Domestic Trade and Cost of Living
Datuk Armizan Mohd Ali (formerly Minister in the Prime Minister’s Department in charge of Sabah, Sarawak Affairs and Special Functions)
Deputy Minister of Domestic Trade and Cost of Living
Fuziah Salleh
Minister of Plantation and Commodities
Datuk Seri Johari Abdul Ghani (new)
Deputy Minister of Plantation and Commodities
Datuk Chan Foon Hin (formerly Deputy Minister of Agriculture and Food Securities)
Minister of Health
Datuk Seri Dzulkefly Ahmad (new)
Deputy Minister of Health
Datuk Lukanisman Awang Sauni
Minister of Digital (a new ministry — split from Ministry of Communications and Digital)
Gobind Singh Deo
Deputy Minister of Digital
Datuk Ugak Anak Kumbong (formerly Deputy Minister of Special Functions and Sabah, Sarawak Affairs)
Minister of Human Resources
Steven Sim Chee Keong (new)
Deputy Minister of Human Resources
Datuk Seri Abdul Rahman Mohamad (formerly Deputy Minister of Works) — Bernama
New cabinet must prioritise tackling economic issues, say interest groups
PETALING JAYA: People’s issues – cost of living pressures, economic recovery and spurring investments – are the key issues that the new Cabinet must deliver amid a challenging 2024 outlook, say economic experts and business groups.
They say the new line-up must work fast to tackle the economic challenges, while delivering the promised key electoral and institutional reforms to demonstrate their capacity for governance.
Institute for Democracy and Economic Affairs (Ideas) chief executive officer Dr Tricia Yeoh said through the restructuring, the government is sending the signal that the issues of economy, health and cost of living are the key areas of focus, as seen in the new appointments.
She noted that the appointment of Datuk Seri Amir Hamzah Azizan as the Second Finance Minister in Prime Minister Datuk Seri Anwar Ibrahim’s latest Cabinet line-up has been “highly anticipated”.
The former EPF chief executive officer’s appointment is also likely to be welcomed by the market, given his strong corporate background, having been in Tenaga Nasional Bhd and MISC Bhd before joining EPF, said Yeoh.
“This appointment will strengthen the Finance Ministry’s policy execution and hopefully speed up the ministry’s plans towards fiscal consolidation,” she said.
Meanwhile, Yeoh said the new Domestic Trade and Consumer Affairs Minister Datuk Armizan Mohd Ali will have to focus on addressing cost of living issues, which has been the primary driver of dissatisfaction among voters in their perception of Anwar’s administration.
She also said the return of former ministers Gobind Singh Deo and Datuk Seri Dr Dzulkefly Ahmad to the Cabinet in their respective roles as Digital Minister and Health Minister was interesting as they had experience under the previous Pakatan Harapan administration.
Prof Dr Chung Tin Fah of HELP University said the new Cabinet must focus on delivering its manifesto promises, including bringing down cost of living, creating a more equitable social class, raising investment to grow the economy, and higher wages to share in growth prosperity.
“Investments and productivity are key drivers to help achieve these seemingly diverse goals,” he said.
Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the government has to execute the promised reforms and policies to strengthen the country’s economic resilience against the still uncertain global environment in 2024.
“The government needs to rebuild trust with the people and businesses that it can deliver better outcomes through good governance and responsible fiscal management,” he said, adding that easing cost of doing business, creating a better investment climate, mitigating the higher cost of living, and generating better income jobs should be the economic agenda.
SME Association of Malaysia president Ding Hong Sing said economic development must be prioritised as the country’s economy has yet to improve while the cost of living continues to rise.
“In this regard, our expectations are high for the Second Finance Minister, Datuk Seri Amir Hamzah Azizan.
“With his extensive management experience in EPF, we believe he can play a crucial role in revitalising the national economy,” he said, adding that Hamzah must engage with the business sector and listen to industry suggestions before implementing policies.
“Ensuring the Minister comprehends the influence their policies may have on the business sector is pivotal. We must steer clear of any policies that could hinder our progress,” he said.
Ding also said that SMEs are more than willing to collaborate with the newly appointed Human Resources Minister Steven Sim to improve operations and drive the growth of the economy.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said the reshuffling is expected to serve as a positive beginning for 2024, particularly in bolstering efforts to enhance economic growth.
The government’s immediate focus must now be to address issues such as unemployment, inflation and economic recovery, said Nivas.
“The foreign direct investments secured in 2023 by the Investment, Trade and Industry Ministry during the trade delegations to various countries especially China and the United States should be quickly realised in 2024 so that adequate employment, business opportunities in the supply chain, and significant growth of the gross domestic product can be attained.
“We also hope that the Cabinet will concentrate on more reforms in 2024,” he said.
Associated Chinese Chambers of Commerce and Industry of Malaysia president Tan Sri Low Kian Chuan said the new Cabinet must work to implement promised reforms and policies.
Low emphasised the necessity of improving income levels and mitigating the impact of the rising cost of living, as well as the importance of close cooperation between the ministries and civil servants to enhance public delivery of services, streamlining of business investment procedures, and the reduction in the overall cost of doing business.
Low added the new ministers should prioritise these key areas, acknowledging the pressing need to address the cost of living challenges that Malaysians face.
Malay Chamber of Commerce president Norsyahrin Hamidon said the country’s economy has not fully recovered and numerous SMEs continue to face significant challenges.
He hoped that the new ministers, especially the Second Finance Minister, would quickly inject their expertise towards economic recovery and the strengthening of businesses, though he added that it is important that the new Cabinet members be given six months to demonstrate their capabilities.
The year-on-year (y-o-y) decline in FDIs for 1H23 was also due to the strengthening of the US dollar, which capped FDI inflows, on top of the uncertainties before the state elections. - Nixon Wong
PETALING JAYA: Since coming into power last November, the unity government has made it abundantly clear it is eager to keep Malaysia as a magnet for foreign investments.
Prime Minister Datuk Seri Anwar Ibrahim has travelled to several countries to promote Malaysia as an investment destination, including to China in April and recently, as well as to the ongoing 78th United Nations General Assembly in New York, following the Invest Malaysia New York event in The Big Apple.
On the other hand – while Anwar has been busy making stops worldwide to foster economic ties on behalf of the country – the official numbers from the Statistics Department showed that for the first half of 2023 (1H23), foreign direct investment (FDIs) into Malaysia amounted to RM15.1bil, only a third of the funds that came in at the same time last year.
For the whole of 2022, Malaysia had managed to garner RM74.6bil of FDIs, which plainly means that it would be a mountain to climb for the country to match that number this year.
For many analysts, the apparent political ambiguity before the six-state elections back in August had played a role in discouraging foreigners to commit their funds to Malaysia, and with that having been resolved, they are looking forward with more optimism.
According to Nixon Wong, chief investment officer for Kuala Lumpur-based fund management firm Tradeview Capital, the year-on-year (y-o-y) decline in FDIs for 1H23 was also due to the strengthening of the US dollar, which capped FDI inflows, on top of the uncertainties before the state elections.
However, he believes the tide could be changing, with major global players such as Germany’s Infineon Technologies AG as well as Intel Corp, Amazon Web Services and Tesla Inc of the United States having set up shop in the country or pledged to commit further investments.
Moving forward, he told StarBiz: “I believe with the initiatives on green energy generation and increasing adoption of environmental, social and governance (ESG) principles in doing business could attract more FDIs our business environment becomes a better match to the ESG criteria these global players are looking into.
“Also, momentum could be built by taking advantage of trade diversions due to uncertain geopolitical tensions that include the United States-China trade conflict and the Russia-Ukraine crisis.”
At the same time, Rakuten Trade head of equity sales Vincent Lau is similarly expecting “more FDI good news” towards the end of the year and into 2024.
“Of course, there were also other factors for the y-o-y pullback (in FDIs into the country) such as the high interest rates environment globally, but there is a sense of relief now that politically the country is stable. This, coupled with the aggressive efforts of the Prime Minister, means things should improve from here,” he predicted.
Having said that, Lau believes the upcoming tabling of Budget 2024 would be essential to clarify Putrajaya’s policies on many issues, including how it intends to further encourage and more importantly ease the entrance of FDIs into the country.
Besides that, he noted that the targeted subsidy reforms and the possible amendments on the government’s tax base could also set the tone for FDIs if further details could be ironed out next month.
While recognising it may be a big ask for Malaysia to surpass the RM74.6bil FDI amount of 2022 for this year, Lau is hopeful of the situation over the longer term as the government has been active in its efforts in attracting investments.
“This can also be seen by Bursa Malaysia organising its first physical Invest Malaysia New York in six years last week, which is part of a push for investments for the Madani Economy initiatives,” he told StarBiz.
Offering his views from an economical perspective, Centre for Market Education (CME) chief executive Dr Carmelo Ferlito opined that FDI quarterly volatility has been a consistent trend over the long term, and therefore should not set off any alarm bells yet.
In addition, he said the 2022 FDI data is likely to have been boosted by the post-lockdown recovery that the country experienced last year, an effect that is quickly fading.
While the news has been flushed with reports of FDIs being granted approvals since the start of year, such as the RM170bil commitment by China and RM23bil pledge by Japan that was announced in July, Ferlito suggested it may be more meaningful to look at implemented FDI’s instead of just approved ones.
He said that back in April, the CME has backed a call by former second finance minister Datuk Seri Johari Abdul Ghani for the setting up of a special committee under the International Trade and Industry Ministry to monitor investments in Malaysia.
“The commission would have had to monitor not only the inflow of FDIs and the approvals, but also how many get implemented, as well as the reason why some of them are not implemented and so on. It was a good proposal, and we think it deserves to regain interest,” he says.
With Anwar having called for the cutting down on red tape and striving to improve the ease of doing business, Ferlito said the Prime Minister is aware there are issues for foreign businesses to enter the country which are related with institutional arrangements.
As such, he has urged Anwar to take the lead in creating a reform process to achieve those goals of reducing red tape and increasing the ease of doing business, as advocated in the Prime Minister’s Ekonomi Madani speech.
experienced 600% growth in its share price, UEM Sunrise Bhd
