COMPETITIVENESS INFOLINE

I N F O L I N E : TUESDAY, JANUARY 3, 2017 0 1 / 2 0 1 7 PROMISING 2017 OUTLOOK FOR CONSTRUCTION

ETALING JAYA: The construction sector outlook for 2017 seems promising, particularly for infrastructure construction players, given the slew of Pgovernment projects.

A head of research said ongoing projects like the Mass Rapid Transit 2 (MRT2), Tun Razak Exchange (TRX) and Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project site in Pengerang will largely contribute to the order books of infrastructure construction players for the year. “Property construction activities are not going to be as buoyant. This is due to the property development cycle, which will continue to be soft this year,” he said. More construction jobs: Ongoing projects such as the MRT2 will contribute to the order books of Apart from ongoing projects, the construction infrastructure constructions players this year. sector holds more upside in light of the RM12.8bil portion of Pan Borneo Highway as well as (PDP) for the Pan Borneo Highway Sabah project the upcoming High Speed Rail (HSR) projects. in April 2016. According to an Affin Hwang Capital sector report, three packages from the Sabah portion of the Pan “Construction contract awards for Pan Borneo Borneo Highway have been awarded, with the Highway Sabah will benefit contractors with remaining packages targeted to be awarded by end- established track records and precast concrete 2017. product manufacturers in Sabah.

The award deadline of end-2017 is to ensure the “Potential beneficiaries are Suria Capital Holdings project can be completed by March 2021. Bhd-Gabungan AQRS Bhd JV and WCT Holdings Warisan Tarang-UEM Group-MMC Corp joint Bhd, which are bidding for the project,” said Affin venture (JV) company, Borneo Highway PDP Sdn Hwang Capital. Bhd, was appointed as the project delivery partner

INFOLINE: 01/2017 T H E S T A R TUESDAY, JANUARY 3, 2017

In addition, there are more major property development “The decision on who to award the rail system projects planned in Sabah, such as the redevelopment of to will be made by end-2018. (KK) Port with an estimated gross “It remains to be seen if the timeline will also development value of over RM5bil. cover the civil works tender.

The redevelopment of KK Port, which includes the Sabah “Apart from a joint tender for cross-border HSR International Convention Centre, comprising One operations, Malaysia will also put up its own Jesselton, , and KK Convention City tender for a domestic operator to run the which are developed by the Suria-Gabungan AQRS JV, domestic service within its borders,” said CIMB SBC Corp Bhd-Suria JV and Mah Sing Group Research. Bhd respectively. The project time frame set in the bilateral Affin Hwang Capital also reported that Suria planned to agreement signed recently continues to put acquire 28.9 acres at KK Port for about RM350mil to 2026 as the targeted completion date. develop an international cruise terminal as part of the This suggests an unchanged eight-year integrated mixed development project. construction time frame, assuming that construction of the project commences in Currently, SP Setia is developing the RM2.2bil 2018. project in while the state is developing the RM4bil Tanjung Aru Eco Development. A majority of 335km of the rail system will be Under the 11th Malaysia Plan 2016-2020, a key focus for in Malaysia, while 15km will lie in Singapore. Sabah’s development is to invest in infrastructure to improve connectivity within the state and international linkages.

Besides Pan Borneo Highway Sabah, there is a planned RM311mil Kota Kinabalu Bus Rapid Transit (KK BRT) project.

As part of the Sabah Development Corridor (SDC), there are plans to build a new KK Airport, light rail transit system in KK, new railway lines to connect the north and east coasts of Sabah as well as upgrading of .

Meanwhile, CIMB Research opined that the KL-Singapore HSR theme remains relevant to rail players, such as Gamuda, IJM Corp and WCT, though the joint tender for the HSR system will only commence in the fourth quarter of this year.

INFOLINE: 01/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : MON D A Y , FEBRUARY 20, 2017 0 1 / 2 0 1 7

MALAYSIA HEALTHCARE INDUSTRY EYES RM5 BILLION REVENUE CONTRIBUTIO N 2017 GDP

UALA LUMPUR, Feb 20 — The healthcare industry is eyeing a revenue contribution of up to RM5 billion to Malaysia’s 2017 gross domestic product. K This is on the back of an estimated one million healthcare travellers visiting the country this year. In 2016, the industry’s contribution to the GDP exceeded RM1 billion, said the Malaysia Healthcare Travel Council (MHTC) in a statement here today.

It said the prime market comprises travellers from Asean, but Malaysia’s healthcare segment has also seen steady growth with visitors from China and MHTC said Malaysia’s medical travel sector is a India. much sought-after choice in Asia.

MHTC said Malaysia’s medical travel sector, The Malaysian healthcare travel sector has seen already a much sought-after choice in Asia, added tremendous growth in recent years. another feather to its cap when one of its key drivers was honoured on the international stage for Sherene’s recognition will help drive Malaysian outstanding contributions to global healthcare. healthcare to even greater heights.

MHTC Chief Executive Officer Sherene Azli, joined the distinguished company of 50 other women from all walks of life, in being recognised among “Outstanding Women in Healthcare” at the World Health and Wellness Congress 2017 recently.

INFOLINE: 01/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : WEDNESDAY, MARCH 15, 2017 0 1 / 2 0 1 7

NEW MILESTONES FOR M ALAYSIAN VARSITIES

T’S the dawn of a new era for Malaysian higher placements. education. Malaysian universities continue to improve in their world university rankings In total, 19 Malaysian universities are included at based on 46 subjects. least once in this year’s QS World University I Rankings by Subject, and at least one Malaysian According to the seventh edition of the QS World university can be found in 36 of the 46 subject University Rankings by Subject recently released by tables. Quacquarelli Symonds, our local universities now rank in the top 30 for three subjects; they were only The best-ranked subject for a Malaysian ranked in the top 30 once in 2016. university is 23rd in the world for Electrical and Electronic Engineering, a position which UM Malaysian universities also made the top 50 12 shares with Carnegie Mellon University of the times; they were only ranked in the top 50 three United States. times in 2016’s edition. This is the highest-ranked position by subject achieved by a Malaysian university, and an The University of Malaya (UM) continues to be the improvement of 14 places from 2016. best-performing institution with six subjects ranked in the top 50 worldwide. The top university for this subject is Massachusetts Institute of Technology, while the Other local universities with subjects ranked in the top Asian university is Singapore’s Nanyang top 50 are Universiti Sains Malaysia (USM) for four Technological University in 6th place. of its courses, while Taylor’s University and International Islamic University of Malaysia (IIUM) UM also scored impressively for Development have one each. Studies, for which it placed 26th.

This means that Malaysia now sees four of its Topping the rankings for Development Studies is universities offer at least one top-50 subject, Britain’s University of Sussex, while the top compared to two universities in 2016 . regional university is the Australian National University in 11th place. Flying the flag for Asia is The latest list also shows that Malaysian India’s University of Delhi which placed 16th. universities are ranked in the top 100 52 times, which is double 2016’s total of 26 top-100 Two Malaysian universities made it to the top 50

INFOLINE: 01/2017 NEW STRAITS TIMES WEDNESDAY, MARCH 15, 2 0 1 7

in Rankings by Subject for Hospitality & Leisure Management, which QS has included in the list for UiTM vice-chancellor Professor Emeritus Hassan the first time. Said said that of these, eight were new subjects, namely architecture and built environment, arts Taylor’s University, in 29th place, is also the first and design, chemical engineering, agriculture private university in Malaysia to have made the and forestry, medicine, pharmacy and rankings. pharmacology, chemistry, and business management and administration. The other local university is USM, which shares 32nd place with Britain’s Sheffield Hallam “The other previously-listed five subjects, namely University. accountancy and finance, education, mechanical engineering, electrical engineering, and computer At the top for this subject is the University of science and information systems, have also Nevada-Las Vegas while The Hong Kong improved their score rankings,” he said. Polytechnic University is the highest-ranked Asian university at number three. “We are confident that with special strategy and scheduled monitoring, UiTM can continue to Three of UM’s other engineering subjects which also improve its position in the years to come.” made the top 50 rankings are Mechanical, Aeronautical & Manufacturing (33rd), Engineering & Equally ecstatic, Higher Education Minister Technology (35th) and Chemical Engineering (38th, Datuk Seri Idris Jusoh congratulated the a position it shares with USM). universities for their “stellar performance” in the latest Rankings by Subject release. USM also made the top 50 for Mineral & Mining Engineering, sharing 35th spot with the Indian “Having 12 subjects across four universities Institute of Technology Kharagpur. ranked within the world’s top 50 is a highly For Education, UM is ranked 41st worldwide, a commendable improvement from three subjects position it shares with the University of Texas at in 2016. Austin. “Furthermore, Malaysian universities have IIUM made the top 50 for Theology, Divinity & doubled the number of subjects ranked in the top Religious Studies, sharing 46th place with Columbia 100 to 52. University of the US. “Congratulations to UM which achieved having Finally, USM’s Environmental Sciences managed six subjects placed in the top 50 and 19 subjects with make it into the top 50 by sharing 49th place in the top 100. UM has excelled in various with the University of Minnesota in the US, Britain’s engineering fields and for the first time, its University College London and Monash University of education programme is ranked 41st. Australia. “USM has also done us proud with four subjects Also joining the ranks of the world’s elite universities in the top 50, notably with hospitality and leisure is Universiti Teknologi Mara (UiTM), which now sees management ranked 32nd and mineral and 13 of its subjects included in the QS World mining ranked 35th. University Rankings by Subject.

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“Speaking of firsts, we have a private university ranked in the world’s top 50, namely Taylor’s at 29th place for hospitality and leisure management, while the International Islamic University Malaysia also appears at 46th for theology, divinity and religious studies.

“I am proud that our universities have excelled across diverse areas of knowledge, from engineering to education, hospitality to environmental sciences.

“As the higher education space becomes more connected, accessible, and competitive, the ability to offer high quality education in such subjects will enable our higher education institutions to stand out worldwide and enhances Malaysia’s attractiveness as an international higher education destination.”

INFOLINE: 01/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : THURS DAY, APRIL 2 0 , 2 0 1 7 0 1 / 2 0 1 7 MALAYSIAN BUSINESSES TURN OPTIMISTIC ON SHORT-TERM OUTLOOK FOR ECONOMY - MIER

UALA LUMPUR: Malaysian businesses have turned optimistic on the short-term outlook for the economy with stronger sales in the manufacturing sector, while Kconsumer sentiment was only slightly improved though far from optimistic, compared with the last quarter of 2016, the Malaysian Institute of Economic Research (MIER) quarterly surveys reveal.

The quarterly business conditions and consumer sentiments surveys showed that businesses turned positive on the short-term outlook for the first time in 10 quarters in the first quarter of 2017, while consumer sentiment was still bogged down by issues to do with personal finances and labour Datuk Dr Zakariah Abdul Rashid market conditions remaining flat due to dim job Executive Director , MIER prospects. of 2016, due to factors such as stronger sales in the The Business Conditions Index (BCI) samples over manufacturing sector, expansion of production 350 manufacturing businesses incorporated locally levels due to higher domestic orders and exports and foreign manufacturing concerns operating in picking up. This was further supported by lower Malaysia, covering 11 industries, while the stock levels, step-up in capacity utilisation, higher Consumer Sentiments Index (CSI) is a sample of wage cost and higher local sales prices. over 1,200 households in Peninsular Malaysia to gauge consumer spending trends and sentiments. The CSI, however, still stood way below the optimism level at 76.6 points after increasing by 6.8 MIER indicated that the BCI reached 112.7 points in points from fourth quarter 2016. Q1 2017, up from 81.2 points in the fourth quarter

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MIER said consumer anxiety over escalating prices He said this is a matter of concern, as household seems to be abating though, and some respondents consumption is an index of domestic demand, are looking to spend, although cautiously, as which is an engine for economic growth. respondents see this as a good time to buy or invest in major items. Similarly, according to Zakariah, there is “not much room for government to maneuver with its The survey also indicated that as at Q1 2017, spending” which is another index of domestic consumers seem to have set their eyes on housing demand, as fiscal revenue is highly dependent on as part of their spending plans. tax collection from the Goods and Services Tax and crude oil. “ Most of the household debts are on residential property. If we look at the property market itself, “Most of the revenue goes to operating expenditure, most high-end properties are not affordable as our and not much is left to spend on development income is low,” MIER executive director Prof Datuk expenditure,” he added. Dr Zakariah Abdul Rashid said at the 22nd The ringgit, which has seen reduced fluctuation, is Corporate Economic Briefing here yesterday. not expected to improve, as market players are influenced by non-economic factors such as He said this is prevalent among those who are just speculation, as well as political factors like the entering the labour market but at the same time it is upcoming general election, he added. vital for consumers to spend more to boost economic growth.

Zakariah said the dilemma of the situation is that households are not earning enough to spend more or do not have enough savings to do so.

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I N F O L I N E : THURSDAY, APRIL 20, 2017 0 1 / 2 0 1 7 MALAYSIAN GOVERNMENT-BACKED MDEC LAUNCHES DIGITAL HUB AND ENTREPRENEUR INITIATIVES; AIMS TO HELP STARTUPS SCALE GLOBALLY

overnment-backed innovation agency Malaysia Digital Economy Corporation (MDEC) has announced two new initiatives that will bolster the Gcountry’s digitalisation efforts.

The first is the Malaysia Digital Hub. This programme will provide the necessary resources for startups to scale globally. These include high-speed Malaysia wants to invite talents to build startups in the internet connectivity, funding opportunities, country mentors and other aspects of a conducive business strengthen Malaysia’s position as a global hub for environment such as corporate tax exemptions. startups and entrepreneurs” said Dato’ Yasmin

Mahmood, CEO of MDEC, in an official press The first three digital hubs that have been approved release. by the government are APW, The Co. and Common

Ground. They are all located in the Klang valley. MDEC also announced it will be enlisting the

expertise of Microsoft, Next Academy, Maybank, The second initiative would be the Malaysia Tech and Y Academy with Kejora to nurture Entrepreneur Programme (MTEP). It aims to attract entrepreneurs. global talents to expand or build startups in

Malaysia. A hub for entrepreneurs

The Malaysian tech ecosystem is considered one “Malaysia is able to connect businesses to a of the most developed (besides Singapore) in regional market of more than 625 million people. Southeast Asia; having birthed notable With the introduction of Malaysia Digital Hub and companies such as ride-hailing giant Grab and MTEP, the local and global tech startup Catcha Group’s iflix. communities can now leverage these benefits that our country has to offer. We believe this will help to With regulation policies and facilities that support

INFOLINE: 01/2017 MDEC THURSDAY, APRIL 20, 2017

startups, and a private sector that has begun to step up, Malaysia is the second top hotspot to launch startups in the world. And in a recent INSEAD report, Malaysia ranked 28th on the global talent competitiveness index with its vast pool of technical workers.

Early this year, the government pushed its innovation drive up one notch with the launch of the Digital Free Trade Zone (DFTZ).

Its goal is to become an e-commerce hub, in which SMEs and startups can build regional fulfilment centres. The DFTZ’s main strategic partners will be MDEC, Alibaba and Catcha Group.

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I N F O L I N E : SATURDAY, APRIL 22, 2017 0 1 / 2 0 1 7 MALAYSIA’S HEALTHCAR E SECTOR PROVIDES A CATALYST FOR GROWTH

hen it comes to healthcare, Malaysia has been hailed by the UN Development Programme as a shining example for other developing Wcountries. Due in no small part to its cheap, alternative brand of medical tourism, Malaysia’s healthcare sector is thriving. Deemed essential to the Malaysian economy, the government has prioritised healthcare spending, injecting RM23bn (US$5.2bn) into healthcare in 2016 – approximately 10% of the annual budget. A hospital in Malaysia’s healthcare system consists of two tiers: in Malaysian healthcare, and the government a state-owned universal healthcare system for continues to prioritise that sector in its budget. national citizens runs alongside a private sector that serves more affluent citizens and international Healthcare is clearly integral to the government’s patients. Due to projected demographic shifts – long-term vision, although doubts have emerged chiefly Malaysia’s ageing population, increasing life over the viability of heavy state subsidisation. expectancy and the growth of non-communicable There is growing pressure to restructure the diseases – demand for healthcare is expected to healthcare system, with an emphasis on allowing grow. Healthcare is an increasingly important private facilities to play a greater role. Thus, shifting sector which will prove challenging to sustain in demographics are influencing the government to this global economic climate. Nevertheless, the rely more heavily on private capital to take Malaysian-German Chamber of Commerce (MGCC) Malaysia’s healthcare system forward. This is good notes that the sector has shown stronger resilience news for investors, who will benefit from a to economic slumps compared to other sectors. progressive and innovative economic sector. The Malaysian Healthcare Travel Council (MHTC) says it will create ‘continued and sustained growth’

INFOLINE: 01/2017 GLOBAL RISK INSIGHT WEDNESDAY, APRIL 15, 2 0 1 7

Targeting healthcare For Malaysia, 2015 and 2016 were blighted by According to the Ministry of Health (MoH), fallout from the spiralling 1MDB scandal, the healthcare was the fastest-growing industry sovereign fund from which Prime Minister Najib between 2000 and 2009 and thus recognised as a Razak was alleged to have embezzled funds. In key driver of economic growth. In 2010, the 2016 Malaysia received 860,000 medical tourists – Economic Transformation Programme (ETP) was 22,000 less than in 2014. The government established to transform Malaysia into a high- nonetheless has revived ambitions for 2017, income economy by 2020. Under this initiative, targeting approximately one million healthcare healthcare was identified as one of 12 National Key travellers. Clearly, they envisage medical tourism as Economic Areas (NKEA) to receive substantial a burgeoning sector with healthy growth prospects, government support and funding. The Healthcare independent from other circumstances. NKEA focuses on encouraging areas of public- private collaboration and attracting investment in Capturing the market key manufacturing and service industries. Although Singapore once led the Asia-Pacific region for medical tourism, because of rising medical This is being driven by seventeen Entry Point costs and hikes in demand this position is under Projects (EPPs), which are expected to create threat. In terms of patient numbers, Thailand is 181,000 new jobs by 2020. These projects span a Malaysia’s biggest competitor, treating broad range of areas, from fostering a homegrown approximately 2.81m foreign patients in 2015 – far pharmaceutical industry, to establishing a range of exceeding Malaysia’s share. But Malaysia is well- care services for the elderly, to constructing a placed to increase its share in the future: medical ‘world-class campus for healthcare and bioscience’. tourists will be attracted by Malaysia’s national A later section of this special report will examine currency, the ringgit, which has depreciated the kinds of companies that are benefitting from significantly since 2015 due to pressures caused by these EPPs. In 2016, healthcare’s contribution to weak oil prices, slowing economic growth and national GDP exceeded RM1bn (US$226m), and the uncertainty concerning Malaysia’s future sector is eyeing close to thirty-three percent relationship with Washington. increase this year. Medical tourists in Malaysia are predominantly Medical tourism from Indonesia, with others coming from Under the ETP, conditions for medical tourism have Bangladesh, China, India, Japan, the UK and flourished. At the International Medical Travel increasingly the Middle East (Saudi Arabia and the Journal’s (IMTJ) Medical Travel Awards 2016, UAE). Oxford Business Group notes Malaysia’s Malaysia swept up an array of awards for the broad availability of halal food, halal medicines and second consecutive year, including ‘Destination of treatments, and prayer spaces. Set against the Year’. Thailand, this ‘gives Malaysia a particular edge when it comes to targeting Middle Eastern As noted by the Economist Intelligence Unit (EIU), markets’. The government has also signed within the tourism sector – Malaysia’s fifth-largest agreements with Kazakhstan, Libya and Oman to industry – the medical subsector expanded by over send patients to Malaysia, reflecting an aggressive 20% a year from 2011-2014. Revenues from approach to undercut the competition. medical tourism in 2010 totalled RM380m (US$86m). Although initially projected to grow In 2009, the MoH founded the Malaysian Healthcare annually by 10% up until 2020, actual figures are Travel Council (MHTC) to promote and develop the closer to 30%. medical tourism industry. The MHTC runs a partnership scheme with a number of high-quality

INFOLINE: 01/2017 GLOBAL RISK INSIGHT WEDNESDAY, APRIL 15, 2 0 1 7 medical care providers (there are currently 74 and services, but will also promote and help accredited ‘partners’). Partner hospitals are geared facilitate those projects. towards care and support for international patients, The government has taken a number of steps to able to assist with international liaisons, visa incentivize private investment in healthcare. To extensions and accommodate foreign translators. encourage FDI, the government has waived the There is also a selection of ‘elite’ partners, which normal mandate of 30% ownership by indigenous are required to meet the highest international Malays (the Bumiputra) which normally applies to standards, as determined by various regulatory foreign investment. Healthcare facilities will receive bodies including the Australian Council on specific tax incentives dependent on what function Healthcare Standards (ACHS) and CHKS they carry out (services, manufacturing, R&D, etc.). Accreditation Unit (UK). Another important element According to the ETP 2011 Report on Healthcare, is the anticipated construction of healthcare hubs three key markets – pharmaceuticals, medical in , Melaka and , which will be explored technology, and healthcare services – have shown later. particularly strong growth.

The substantial population of overseas Malaysian Pharmaceuticals students gives it another advantage over Thailand. Household names like Pfizer, GlaxoSmithKline and Doctors working in Malaysian hospitals will for the AstraZeneca operate in Malaysia, attracted by most part have been trained in western institutions, government incentives and access to the ASEAN and will be required to speak fluent English. As the Economic Community (a market of US$750m). The EIU acknowledges, specialists from abroad are also Ministry of Health (MoH) also encourages foreign being encouraged to work in the private hospitals investment by offering off-take agreements to new as well as operate stand-alone clinics. This pharmaceutical companies, like the agreement increases the supply of doctors and investment signed with Indian corporation Biocon to supply available for private facilities, which are likely to insulin to state hospitals and clinics. shoulder greater responsibility for Malaysian healthcare in the future. The government is seeking to foster a homegrown pharmaceutical industry, for currently 70% of Malaysia has shown creativity and innovation in the pharmaceutical products are imported. The way it is exploiting its healthcare opportunities. pharmaceutical manufacturing Entry Point Project Sports Minister Khairy Jamaluddin for instance (EPP) ‘seeks to capitalize on the impending expiry stated he wants Malaysia to invest in wellness and of patents on major drugs to increase Malaysia’s fitness tourism alongside medical tourism. generic drug manufacturing capacity’. Malaysia will Wellness is a growing sector for established middle produce generics of drugs with expired patents or -income countries, and certainly lucrative; it could forms contracts with foreign pharmaceutical be a big earner for Malaysia. companies to manufacture new generics on their behalf. The stage is thus set for larger companies Opportunities for growth to formulate collaborative partnerships with The forward-thinking attitude and creative homegrown industry, passing manufacturing enterprise shown by the government is resulting in expertise and operational knowledge onto new start new markets and plentiful business opportunities. -ups. MHTC is collaborating with the Malaysian Investment Development Authority (MIDA) to forge According to MIDA, of the 264 licensed opportunities for business and investment in the pharmaceutical premises in Malaysia only 77 are healthcare industry. MIDA is designed to assist licensed to produce ‘modern companies that wish to invest in manufacturing medicines’ (antibiotics, injectables, painkillers,

INFOLINE: 01/2017 GLOBAL RISK INSIGHT WEDNESDAY, APRIL 15, 2 0 1 7 health supplements etc.). This proportion will need to increase in the future, and Malaysia certainly Recent progress has been good, and the industry is provides an ideal manufacturing environment. certainly evolving. According to MIDA, investments Malaysia has a strong intellectual property (IP) in medical devices totalled RM1.72bn from January protection framework, and its membership of the -August 2016. The Association of Malaysian Pharmaceutical Inspection Cooperation Scheme Medical Industries (AMMI) forecasts that medical (PIC/S) and commitment to the latest Good device exports will grow by 15% in 2017 (with Manufacturing Practices (GMP) will ensure projected revenues of RM 11bn (US$2.5bn)). stringent quality control for new manufacturers. Because of its long-standing rubber industry, The global pharmaceuticals market is Malaysia is the market leader in medical glove approximately US$132bn. In 2015 Malaysia’s share manufacturing, and is home to Hartalega Holdings was estimated at US$2.3bn (over twice that of and Top Glove. While the former is the largest Singapore) and is projected to reach US$3.6bn by producer of synthetic rubber gloves worldwide, the 2020. This is likely a conservative projection and latter aims to own a 30% share in that market by the real figure could be much higher, especially if 2020. MGCC reports that both companies are Malaysia exploits the opportunity to export halal- pursuing aggressive expansion strategies, including certified pharmaceutical products to members of new high-tech factories, research facilities and the Organisation of Islamic Cooperation (OIC). biomass power plants in and Klang Valley. The sector is set to receive RM7bn (US$1.6bn) in Medical technology further investment up to 2020. It will also benefit Malaysia procures most of its medical equipment from an 8-10% growth in global demand for medical from foreign firms. But the government is seeking gloves this year. to make the transition to high-value medical device manufacturing, investing in diagnostic equipment and healthcare information technology. Considering Malaysia’s strong track record in electronics manufacturing, it is well-positioned to do so. The state of Penang was recently announced as the location for a state-of-the-art medical device manufacturing facility, reflecting its potential as an industry hotspot.

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I N F O L I N E : MONDAY, MAY 1, 2017 0 1 / 2 0 1 7 NAJIB: GIVE PRIORITY TO LOCAL EMPLOYEES FIRST

UTRAJAYA, May 1 ― Prime Minister (OTEP) under the transformation programme to Datuk Seri Najib Razak has urged enhance the skills and employability of the group. employers to prioritise on local workforce Najib said, for a start, Sentoria Group Bhd and to fill job vacancy in helping the Mydin Mohamed Holdings Bhd had recruited 88 Pgovernment to materialise its five core areas in the and 66 OKUs respectively, to be trained in various Workers Transformation Leap. skills to meet the industry requirements.

He said the government would organise the Job In his message, the Prime Minister also shared a Fair @ UTC 2.0, to be launched on a large scale on success story of an OKU, Noorazizah Muhammad May 20 at 11 Urban Transformation Centres (UTC) Zambri, who succeeded in running her business, and four JobsMalaysia Centres nationwide, offering Ariff Kasturi Enterprise, and hired seven OKU about 20,000 job vacancies from 300 employers. workers via a grant amounting to over RM52,000 under the OKU Business Incentive Assistance “Do give chance to Malaysian workers, if possible. Scheme. Don't just offer jobs to foreigners. Give priority to the local workers,” he said followed by thunderous On the second transformation leap, namely to applause from the 5,000-strong crowd who came to optimise human capital as well as to strengthen listen to his 2017 Labour Day speech here today. policy planning and salary system, Najib said the government was now promoting the practice of the Najib said one of the emphasis in the Workers Productivity-Linked Wage System (PLWS). Transformation Leap was to empower employment services public agency, in which the government He said such a measure was to overcome the was now reviewing the roles of JobsMalaysia income gap among the society and to strengthen Centre so that it would be more interactive, the salary system in the private sector in ensuring effective, customer-friendly and could act as the that the increase in salaries corresponding to facilitator in job matching between job seekers and productivity. employers. “Almost 81,000 employers, involving approximately The prime minister also launched the OKU (persons 3.5 million workers, have applied the PLWS as of with disabilities) Talent Enhancement Programme April 2017” he added.

INFOLINE: 01/2017 THE MALAY MAIL ONLINE MONDAY, MAY 1, 2017

“The government hopes that the target of 85,000 he said. employers to implement the PLWS which will benefit about 3.7 million workers by 2020, will be Najib also drew attention to the initiative by achieved,” he said. Maybank which allowed its female employees to go on maternity leave for up to a year. Najib said the government was in the midst of developing the National Wage Index (NWI), to be Under the transformation leap on the technical and completed by July, as a benchmark to help the vocational education and training (TVET), he said employers to determine the wage levels of their over 80 per cent of TVET students had secured employees that corresponds to qualification, skills employment within six months after graduating. and productivity. As for the transformation leap on prioritising the “I would like to suggest to the employers and welfare and well-being of workers and vulnerable industry players to apply the PLWS, NWI and payroll groups, Najib said several measures had been handbook...If the workers’ salaries commensurate taken including the implementation of the national with (their) qualifications, experience and minimum wage policy. productivity, this will certainly boost the competitiveness of (a particular) industry,” he said. According to the prime minister, statutory inspections on more than 121,000 employers On the human capital aspect, the Prime Minister revealed that that 98 per cent of them had complied said the government would continue to strengthen with the minimum wage policy while the remaining its collaboration with the private sector in providing two per cent had been slapped with the notice of a conducive working environment for female compliance. employees, including reviewing maternity leave, as well as paternity leave for eligible male workers. Under the programme in recognising the experience and expertise of skilled workers via the Recognition The efforts by the government bore fruit when the of Prior Achievement (PPT) method, almost 125,000 number of female participation in the labour market employees had been certified in various skills which increased by almost 10 per cent to 54.3 per cent could indirectly improve their livelihood, he said. last year, compared to only 45.8 per cent in 2006,

Datuk Seri Najib Razak says employers should prioritise on local workforce to fill job vacancies.

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I N F O L I N E : TUES D A Y , MAY 2, 2017 0 1 / 2 0 1 7

MALAYSIAN ECONOMY PE RFORMS WELL DESPITE CHALLENGING GLOBAL ENVIRONMENT-IMF

UALA LUMPUR: The Malaysian economy has performed well over the past few years and remained resilient despite the challenging global economic Kenvironment, said the International Monetary Fund (IMF) in its annual consultation report on Malaysia, which concluded on March 15.

Despite the global commodity price impact and financial market volatility, it said the country's economy remained resilient, owing to a diversified production and export base, strong balance sheet "While real gross domestic product (GDP) growth position, flexible exchange rate, responsive slowed down, Malaysia is still among the fastest macroeconomic policies and deep financial growing economies among its peers. markets. The IMF also said that risks to the outlook were "While real gross domestic product (GDP) growth tilted to the downside, originating from both slowed down, Malaysia is still among the fastest external and domestic sources. growing economies among its peers. External risks include structurally weak growth in "The challenging global macroeconomic and advanced and emerging market economies and financial environment puts premium on continued retreat from cross-border integration. diligence and requires careful calibration of policies, going forward," it said. Although the Malaysian economy has adjusted well to lower global oil prices, the IMF said sustained It added that federal debt and contingent liabilities low commodity prices would add to the challenge were relatively high, limiting policy space to respond to shocks.

INFOLINE: 01/2017 THE SUN DAILY TUESDAY, MAY 2, 2017 of achieving medium-term fiscal targets, adding The IMF agreed that the authorities' medium-term that heightened global financial stress and fiscal policy was well anchored on achieving a near- associated capital flows could affect the economy. balanced federal budget by 2020.

Meanwhile, it said domestic risks were primarily It said the planned consolidation would help to related to the public sector and household debt, alleviate risks from elevated government debt levels along with pockets of vulnerabilities in the and contingent liabilities, and build fiscal space for corporate sector, adding that although the future expansionary policy, as needed. household debt-to-GDP ratio was likely to decline, household debt remained high, with debt servicing The fund's board concluded that Malaysia's current capacity growing only moderately. monetary policy stance was appropriate, and going forward, Bank Negara Malaysia should continue to The IMF said Malaysia's real GDP growth rate was carefully calibrate its monetary policy to support expected to increase moderately to 4.5% year-on- growth, while being mindful of financial conditions, year (y-o-y) in 2017 from 4.2% in 2016, with as global financial market conditions could affect domestic demand, led by private consumption, monetary policy. continued to be the main driver of growth. It said that the banking sector was sound, overall, "While Malaysia's economic growth is expected to and that financial sector risks appeared contained, continue in 2017, weaker-than-expected growth in but cautioned that potential pockets of key advanced and emerging economies, or a global vulnerabilities should be monitored. retreat from cross-border integration, could weigh on the domestic economy," said the IMF. The IMF also stated that it welcomed the authorities' commitment to keeping the exchange As such, the IMF urged vigilance and continued rate as the key shock absorber, and recommended efforts to strengthen policy buffers and boost long- that reserves be accumulated, as opportunities term economic growth. arose and deployed in the event of disorderly market conditions. The IMF also projected that consumer price It also supports Malaysia's efforts in increasing inflation would rise and average 2.7 per cent y-o-y in female labour force participation, improving the 2017 on the back of higher global oil prices and the quality of education, lowering skills mismatch, rationalisation of subsidies on cooking oil. boosting productivity growth, encouraging research It said the current account surplus would be largely and innovation, and upholding high standards of unchanged, as impacts from an improved global governance. outlook and higher commodity prices would be offset by the strength of imports on the back of a resilient domestic demand.

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I N F O L I N E : THURS D A Y , MAY 4, 2017 0 1 / 2 0 1 7 MALAYSIA VISION VALL EY TO DRAW 290 BILLION IN INVESTMENT, CREATE 1.3M JOBS

UALA LUMPUR: The Malaysia Vision Valley (MVV) development has the capacity to attract more than RM290 billion in investment, besides creating K 1.38 million job opportunities. Prime Minister Datuk Seri Najib Razak announced this after witnessing an MoU signing involving Sime Darby Property Bhd, Brunsfield Development Sdn Bhd and Kumpulan Wang Persaraan at his office in , today.

"MVV is a planned, smart and inclusive The Malaysia Vision Valley (MVV) development has the development to ensure all segments of society reap capacity to attract more than RM290 billion in the benefits of this development." investment, besides creating 1.38 million job opportunities. "Although MVV aspires to be developed as a modern metropolis, the needs of the public at all levels will be taken into account," he said. allocations for the development on a number of public infrastructure projects in the MVV areas Najib said the 153,000 hectare development, among within the 11th Malaysia Plan." others, focuses on providing affordable homes with well-planned and orderly urban facilities. "In the first rolling plan of the 11th Malaysia Plan, RM560 million has been allocated for the "MVV will provide more than 1,000 acres (400ha) of development of road connections in the MVV area. affordable housing. Apart from that, MVV will also Other projects being considered include highway provide more than 1,000 acres (400ha) of public networks and integrated rail services to connect the facilities and recreational areas with green spaces," MVV to surrounding areas as well KLIA2," he added. he added. Also present at the event was Menteri Besar Datuk Najib said the project is spearheaded by the private Seri Mohamad Hasan. sector and supported by the Federal government as well as the Negri Sembilan state government. "The government has in principle approved

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I N F O L I N E : SUNDAY, MAY 7, 2017 0 1 / 2 0 1 7

TURNING WORLD TOWARDS MALAYSIAN EDUCATION

n February, His Majesty King Salman Abdul aziz Al-Saud of Saudi Arabia was gracious to accept two honorary doctorates from the University of Malaya (UM) and the International IIslamic University Malaysia (IIUM).

It was momentous and a privileged occasion, considering King Salman spent two of his three nights in Malaysia gracing our universities.

On behalf of the Malaysian government, I also signed a memorandum of understanding on education matters with my Saudi Arabian Until Dec 31, 2016, there were 172,886 international counterpart during this state visit. students in Malaysian higher education institutions, private and international schools, and language centres. Over the last few months, MoUs with Senegal and Turkey were completed. The MoUs are significant as they are aimed at facilitating greater cooperation in higher education, including student mobility for entry into our higher education institutions. Student Mobility Is Growing Worldwide

I feel proud because these events indicate According to the Organisation for Economic recognition and acceptance of the quality of Cooperation and Development (OECD), more than Malaysia’s higher education system in the global five million students were expected to leave their arena. home countries in pursuit of higher education in 2015. These positive developments undoubtedly serve towards strengthening Malaysia’s drive to be a Of this number, approximately 53 per cent were global education destination by 2025. from Asia, 25 per cent from Europe and eight per

INFOLINE: 01/2017 N E W STRAITS TIMES SUN D A Y , M A Y 7 , 2 0 1 7 cent from Africa. And, this is a rising trend. According to the QS Best Student Cities 2017 In Malaysia, as of Dec 31, 2016, there were 172,886 survey, Kuala Lumpur, Malaysia’s capital city, international students in our higher education was voted as the world’s most affordable city for institutions, private and international schools, and students (for the third time in five years). language centres. In higher education alone, there are 132,710 international students. Education quality in Malaysia is recognised as being on the rise, too. In the recent QS World Under our Malaysia Education Blueprint 2015-2025 University Rankings by Subject 2017, Malaysian (Higher Education), we are aiming to attract universities have gained rankings among the 250,000 international students by 2025. global top 50 for 11 subjects (up from three in 2016). Various factors around the world today, including a challenging global economy and changes in The subjects included mechanical, electrical and geopolitical trends in the United States and Europe, chemical engineering, hospitality and tourism, mean that international students are looking to theology, and development studies. Additionally, pursue higher education outside of traditional 52 subjects taught in our universities have also destinations, such as the United States, the United acquired placing among the top 100 in the world. Kingdom and Australia. More Opportunities I believe this is an opportune time for Malaysia to Beginning this year, public universities will further promote and capitalise on its strengths in allocate five per cent of places in their medical, higher education to attract more international pharmacy, and dentistry programmes to students. international students.

Making The Most Of Our Advantages This is a great opportunity as these courses are A 2014 Unesco report titled “Higher Education Asia: delivered by top-notch faculty and specialists. Expanding Up, Expanding Out” highlighted five key For instance, UM’s medical faculty is ranked 31st reasons for international students to choose in the world for its academic reputation, putting it Malaysia as their educational destination — cultural on a par with Duke University and ahead of comfort, cost, value for money, language of University of Pennsylvania. Universiti instruction and quality of life. Kebangsaan Malaysia (UKM) and Universiti Sains Malaysia (USM) are ranked 49th and 52nd, The report also stated that “Malaysia provides a respectively. friendly environment for Muslim students”. I would add that Malaysians are very understanding and Malaysia is also home to more than 10 top respectful due to Malaysia’s multiracial and international university branch campuses, multireligious composition. including Monash and Nottingham (which are in the world’s top 100), as well as the Asia School of Higher education costs in Malaysia are also Business (ASB) in collaboration with MIT Sloan cheaper compared with traditional destination Management School. This means that countries and that “the quality of Malaysian higher international students have a good range of education is seen to be good, yielding a growing quality choices in their chosen fields. perception that higher education in Malaysia represents value for money”.

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The ministry is also focusing on increasing intake Improving Ourselves at postgraduate levels — Master’s, PhD and even Malaysia is undoubtedly a very attractive Post-Doctoral. As it stands now, about 23 per cent education destination for international students. of all international students in our universities are Nevertheless, I believe we can become a more pursuing postgraduate degrees. student-friendly country.

This indicates adequate and competent research In traditional higher education destinations such opportunities for current and potential international as the UK, international students are accepted as students. part of the local community, its social and economic fabric. This translates into many Better Policies and Procedures student-friendly services and opportunities, from Over the past few years, the government, as a internships with industry and non-governmental whole, has been working to improve international organisations to volunteerism, and part-time jobs. student management. Now, student visas are issued for the duration of the programme (as As more international students come to view opposed to yearly) and visa applications can be Malaysia as a choice destination, we Malaysians made online and tracked in real-time. We have also will have the opportunity to widen our own introduced more family-friendly regulations for perspectives, and to learn about different nations, international students. peoples and cultures.

Benefits the Economy, Too A greater awareness will lead to a better According to Universities UK, it is estimated that experience for all. We must remember that these international students contribute £10.8 billion are young students, and studying abroad is a life- (RM60.8 billion) to the UK’s export earnings, of defining experience, filled with excitement, which £5.4 billion is spent off-campus on goods anxiety and opportunity. and services. With receptiveness of this global era and an In Malaysia, international students currently adaptable mindset to the opportunities brought contribute approximately RM5.9 billion a year to the about by speedy technological evolution, economy. The ministry estimates this to rise to Malaysia has all the elements to soar as a global RM15.6 billion by 2020. education hub.

This said, our intention is not to attract international students for purely economic gain. It Datuk Seri Idris Jusoh goes without saying that they contribute so much Minister of Higher Education more in regard to cultural exposure, competitiveness and networking that will benefit our students and community.

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I N F O L I N E : MONDAY, MAY 8, 2017 0 1 / 2 0 1 7

NAJIB ROLLS OUT MALA Y S I A PRODUCTIVITY BLUEPRI NT

UTRAJAYA: Prime Minister Datuk Seri Najib Razak today launched the Malaysia Productivity Blueprint, aimed at raising the country's productivity to new heights. P Najib, who is also the National Productivity Council (NPC) chairman, said NPC has agreed to roll out six key initiatives immediately out of the 16 key activities identified under the blueprint, which was initiated under the 11th Malaysia Plan.

The council, which will supervise the country's Productivity Agenda, decided on the matter during Prime Minister Datuk Seri Najib Razak (centre) at the its first meeting today, he said. launch of Malaysia Productivity Blueprint in Putrajaya. With him are Minister in the Prime Minister's The six initiatives are; to restructure and improve Department in charge of the Economic Planning Unit (EPU) Datuk Seri Abdul Rahman Dahlan (left) and the management of foreign workers; to actively Minister of International Trade and Industry Datuk Seri encourage adoption of 4th industry revolution Mustapha Mohamed (right). technologies by companies across main economic sectors; and to strengthen digitalisation among small and medium enterprises (SMEs) through e- At the same time, Najib said the council has also commerce and adoption of innovative technology. agreed to establish three productivity nexus which

include retail and food and beverage (F&B), electric The other three are; to embed productivity targets and electronic, and chemical products. for enterprises into disbursement processes of new grants, incentives and soft loans; to remove non- "Each of this nexus will be provided a launching tariff measures that impede business growth and grant of RM5 million to carry out initial activities improve efficiency of the logistics sector, and to and ensure they will be able to fund their own evolve governance model to drive game changing projects in the future," he said. implementation of the blueprint.

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Today's meeting also decided on the need to "The execution of the blueprint will be funded recognise multinational and local companies which via at least 89 existing programmes under the have achieved high growth rate, high productivity, 11MP with an allocation with RM9.5 billion for as well as with a high number local employees, the period of 2017 to 2020. Najib said. Najib said the NPC will review and formulate He said the 11MP has set the target to achieve policies, as well as strengthen cooperation national labour productivity growth of 3.7 per cent among ministries and agencies to ensure policy per annum. cohesion at all government levels to drive the productivity agenda. Najib said the target is achievable, if the people are committed and willing to work together through Also present were Chief Secretary to the correct and strategical support, effective initiative Government Tan Sri Dr Ali Hamsa, Minister in and monitoring mechanisms. the Prime Minister's Department in charge of

the Economic Planning Unit (EPU) Datuk Seri He said the blueprint will serve as a holistic Abdul Rahman Dahlan and Minister of measure to target initiatives to open up potential productivity at national, sectoral and industrial International Trade and Industry Datuk Seri level. Mustapha Mohamed.

"The blueprint also outlines five strategic thrusts, 10 national initiaves and 43 sectoral initiatives.

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