COMPETITIVENESS INFOLINE

I N F O L I N E : THURSDAY, JULY 27, 2 017 0 2 / 2 0 1 7 FDI INFLOWS TO CREATE HIGH -VALUE JOBS

MEGA INFRASTRUCTURE PROJECTS Major investments by foreign companies in include China’s Huawei, which is UALA LUMPUR: A list of domestic investing RM2.2 billion for its global operations mega projects, which are already headquarters, data hosting and global training in progress or to be started soon, centers, employing more than 2,370 staff. have attracted an inflow of Saudi Aramco is investing US$7 billion foreignK direct investments (FDIs), which will (RM30.03 billion) for a 50 per cent stake in the create high value and ready jobs in future for Refinery and Petrochemical Integrated youths, particularly in the capital intensive sector. Development in , while HSBC’s future Malaysia’s mega infrastructure projects are regional headquarters at the Tun Razak Exchange expected to boost the country’s economy by more will cost more than RM1 billion to build. than 50 per cent to RM2 trillion in the next seven to eight years, which will drive job creation in high-value services and knowledge-intensive industries. MIDF Amanah Investment Bank Bhd chief economist Dr Kamaruddin Mohd Nor said in the first quarter, FDI had ballooned to RM17 billion and was the largest value since December 2012. Comparatively, Malaysia recorded an FDI of RM13 billion in the fourth quarter of last year. “Theoretically, FDIs have a direct and indirect impact on job creation. The spillover effect will in turn help to boost employment and consumption,” he said.

INFOLINE: 02/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : MONDAY, AUGUST 21, 2017 0 2 / 2 0 1 7 GROWING THE ISLAMIC BANKING BUSINESS

alaysia has long been regarded as a leading country on the global front in Islamic finance (IF), after being around for over 30 years. MThere are presently 16-fully-fledge licensed Islamic financial institutions in the country including several foreign-owned entities, while the nation’s sukuk market share. These commendable statistics are not surprising, considering the government’s efforts to realize the industry’s full potential amid the rise of IF across the world.

The local sector is well-supported by BNM in recent strategic paper noted that the market comprehensive market infrastructure, a robust share of Islamic banks in Malaysia quadrupled from 7.1% in 2010 to reach 28% in 2016 regulatory framework and dynamic market participants. 2016, the country surpassed Iran in the Islamic Finance Country Index (IFCI) for the first time Over the past two decades, the global Islamic since the inception of IFCI in 2011, largely due to financial industry has grown to register overall the government’s commitment to use Islamic total assets of US$1.88 trillion (RM 8.08 trillion) banking and IF as a policy tool and an integral as at end-2015, as per the Islamic Financial part of the economic agenda. Services Industry Stability Report 2016. Bank Negara Malaysia (BNM) in a recent The World Bank and Islamic Development Bank strategic paper noted that the market share of Group’s Global Report on Islamic Finance 2016 Islamic banks in Malaysia quadrupled from 7.1% said Shariah-compliant financial products and in 2010 to reach 28% in 2016.However, the services are now offered in 50 Muslim and non- industry’s annual growth rate slowed from Muslim jurisdictions worldwide. 24.2% to 8.2% in 2016, signaling a need to explore new opportunities for sustained growth. Yet, it was only last year that Malaysia rose through the rank to become the global leader in BNM’s July 2007 statistics showed total assets of Islamic banking and IF. Malaysia’s Islamic banking system (IBS)- As noted in the Global Islamic Finance Report Comprising Islamic banks, IBS of commercial

INFOLINE: 02/2017 MALAYSIAN RESERVE MONDAY, AUGUST 21, 2017 banks, and IBS investment or merchant banks– as at January 2007 stood at RM126.27 billion. Among the was the Islamic Financial Services Acts 2013 (IFSA), a comprehensive legal Some 10 years later, as at January 2017 the figure framework building on the earlier Islamic had risen to RM584.45 billion. By June 2017,the Banking Act 1983, fully consistent with Shariah industry’s total assets reached RM610.52 billion. principles in all aspects of regulation and supervision from licensing to the winding-up of Total loans applied to Islamic banks amounted to an institution. RM21.92 billion in January this year before declining to RM19.74 billion in June. Year 2017, has not been short of action either. Last month, the Securities Commission Total loans approved for Islamic banks in January Malaysia (SC) said it would launch a sustainable stood at RM8,69 billion in January 2017 and rose to and responsible investing (SRI) investment RM10.45 billion in June. funds framework by year-end-year to capitalize on the values shared by SRI and IF. The For non-performing or impaired financing, the framework comes on the back of the SC’s SRI Islamic banking system (Islam banks, IBS or sukuk framework, introduced in 2014 to commercial banks and IBS of investment or continue pioneering the development of a merchant banks) recorded a total of RM6.36 billion Shariah-compliant SRI segment. in January 2017. Moody’s Investors Service Inc also said in an By December that year, non-performing financing April report that it expects Shariah-compliant dropped to RM5.56 billion and remained relatively investment accounts at local banks to display flat over the next few years, dropping to a low of strong growth over the next three to five years, RM4 billion in December 2012 before rising to with an upward trajectory of Shariah-abiding RM5.54 billion in January 2017 this year. investment accounts in the country already For June 2017, impaired financing for the IBS rose to seen since July 2015, following the RM6.18 billion. implementation of IFSA.

Malaysia has done much to develop a Shariah- The local sukuk market has been registering compliant ecosystem, beginning with the increasing interest as well, as a source of institutionalisation of Islamic financial players in funding alternative to the equity and 1980, which saw the formation of first Shariah conventional bond markets, in addition to committee by Bank Islam Malaysia Bhd, which then being an option for Islamic investors seeking became the first Islamic bank established under the Shariah-compliant debt instruments. Islamic Banking Act 1983. According to RAM Rating Services Bhd, the In 1997, a centralized Shariah advisory was created, global sukuk issuance reached US$22.2 billion including the Shariah Advisory Council, the as at end-March this year, of which, Malaysia dedicated Muamalat Court and several relent and led the pack with 38.5% of the lot. knowledge institutions to nurture talents and generate knowledge. Outstanding global sukuk amounted to US4346.7 billion as at end-March 2017, with By 2007, the diversification if Islamic financial Malaysia again holding the majority at 48% of business had begun, thus requiring legal and the pie. regulatory frameworks to ensure end-to-end Shariah compliance of such ventures. China-based property developer Country

INFOLINE: 02/2017 MALAYSIAN RESERVE MONDAY, AUGUST 21, 2017

Garden Holdings Co Ltd issued a RM1.5 billi0n sukuk Statistic About Islamic Banking in Malaysia two years ago. Just last month, BEWG Number of Islamic banks:16 (M) Sdn Bhd, a wholly owned indirect subsidiary of Largest Islamic Bank: Maybank Islamic Bhd Beijing Enterprise Water Group Ltd, issued a RM400 (total assets RM182.6 billion end 2016) Total Islamic bank assets: RM610.5 billion million sukuk in Malaysia to finance its water (end of June 2017) treatment project in . Total financing: RM448.6 billion (end of June 2017) Non-performing financing: RM6.18 billion (end of June For all Malaysia’s achievements, it needs to move 2017) quicker if it wants to maintain its pole position. Financing applied: RM19.7 billion (June 2017) Financing approved: RM10.45 billion (June 2017)

London, already a landmark financial center, has been making an efforts to challenge traditional IF power house, while Dubai in recent years had announced its intention to become a hub for sukuk issuance.

As BNM has pointed out, the industry’s annual growth rate has reduced from double digit to single digit expansion. Calls have been made for greater broadening of the offering mindset-to extend beyond compliance, to deliver value propositions not just to financial consumers, but also to the wider stakeholders within the society and economy at large.

Malaysia’s IF sector also needs to move beyond short -term objectives to take a long-term view, with performance measurement based on both financial as well as no-financial aspects such as people and the planet.

Key stakeholders-consumers, employees and the public-should be more proactive in implementing an impact-based approach that fosters good conduct.

After all, a main principle of IF is to take on sustainable, interest-free projects with high returns to be distributed to stakeholders, thus maximizing the social benefits and bringing prosperity to the economy.

COMPETITIVENESS INFOLINE

I N F O L I N E : FRIDAY, JUNE 23, 201 7 0 2 / 2 0 1 7

TM’S NEW SUBMARINE C ABLE SET TO BOOST INTERNET SERVICES IN AND

KOTA KINABALU: Internet traffic in Sabah and Sarawak will be better once Telekom Malaysia Bhd (TM) launches its submarine cable which will result in higher Internet speed for consumers. Sabah TM general manager Sukkuriya Masri said the cable from Peninsular Malaysia to Sabah and Sarawak would provide Internet speeds of four terabytes per second. “Our existing Internet speed in Sabah and TM will work on coverage expansion and improving double- speed plan for Unifi users Sarawak is 700 gigabytes per second, which will be retired once new cable is launched. “Once implemented, TM will be able to TM will add another 30,000 units of Unifi provide better services in terms of bandwidth high-speed broadband service for people in for users in both states,” he said after breaking Sabah. of fast with members of the media, here, on “We will work on (coverage) expansion and Wednesday. improving double-speed programme for Unifi Sukkuriya added the last count of Internet users who had subscribed last year.” usage among users in Sabah saw an increase of Starting January this year, Unifi home 150 per cent on annual basis. customers can expect their broadband speed to The new submarine cable, he said, would be upgraded while paying the same price. cater to consumers’ needs in Sabah for another Olivia Miwil five years.

INFOLINE: 02/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : MONDAY, AUGUST 21, 2017 0 2 / 2 0 1 7 MALAYSIA’S GDP FORECAST TO BE REVISED AFTER ‘REMARKABLE’ 1H

alaysia will be revising its gross “The data is looking good, and we will definitely domestic product (GDP) growth be revising our full-year growth target at above target for 2017, after recording a 4.8%,” he told reporters when announcing the “remarkable” 5.7% growth in the first- country’s second-quarter (2Q) GDP last Friday. Mhalf (1H) of the year. Muhammad said the revised forecast will be revealed by Prime Minister Datuk Seri Mohd Najib Domestic demand, which is projected to strengthen Razak during the tabling of Budget 2018 in in the 2H, will underpin the expansion, said Bank October. Negara Malaysia (BNM) governor Datuk Seri Muhammad Ibrahim. Malaysia’s economy expanded 5.8% in the 2Q of 2017, the fastest pace in two years, boosted by strong private sector spending and robust export growth.

Growth remained supported by domestic demand, particularly private sector spending, while from the supply side, the improvement was driven by a broad-based expansion across all major sectors.

On a quarter-on-quarter basis, the economy grew 1.3%. Headline inflation, which grew at a slower pace of 4% in the 2Q on lower fuel prices compared to 4.3% in the preceding quarter, is Muhammad at the GDP announcement in . The governor says BNM will come out with a framework as expected to moderate further, assuming lower soon as possible to reduce the inflation of medical insur- global oil prices. ance, which now stands at 12% “For 2017 as a whole, it (inflation) is expected to average within the forecast range of 3%-4%,” the

INFOLINE: 02/2017 MALAYSIAN RESERVE MONDAY, AUGUST 21, 2017

governor said. among the factors that led to the higher insurance claims. The country’s export sector saw broad-based expansion On the presence of foreign insurance in the manufacturing and commodity sectors in the 1H of companies in the domestic scene, some of 2017. The governor also noted that global demand and which do not adhere to Malaysia’s ownership fluctuations in the ringgit’s exchange rate would continue laws, Muhammad said the central bank had to drive exports in the future. urged these insurance companies to fulfill their promises. Muhammad also warned that any international bank, which has an operating license in Malaysia, may face legal “That is what we are asking after giving the action if it facilitates ringgit futures trading on the license (to insurance companies) to operate in Singapore Exchange Ltd (SGX) and the Intercontinental Malaysian. However, this also depends on the Exchange (ICE). size of the company; smaller companies will deal with smaller problems and vice versa,” he He said any ringgit transaction in Singapore involving a said. Malaysian client and a bank licensed in Malaysia will be subjected to Malaysian law. It has been reported that foreign insurers in the domestic market have been instructed to “The law specifically says that residents, which include find and involve local partners as stipulated in individuals and banks operating here, if they engage in Malaysia’s ownership laws. any illegal activities in contravention of the Financial Services Act, we will take action,” he said. Previous reports suggested BNM had issued a Last week, BNM said in a statement that the introduction directive in April to Tokio Marine Holdings Inc, of ringgit futures contract on the SGX and ICE was AIA Group Ltd, Great Eastern Holdings Ltd inconsistent with Malaysia’s policies. and Prudential Financial Inc to submit the names of the local partners, who will take over Muhammad added that the central bank will come out 30% shareholdings in their operations. with a framework as soon as possible to reduce the inflation of medical insurance, which now stands at 12%. Following the liberalisation of foreign ownership, Malaysia requires foreign He said the current inflation rate is quite high, thus insurance companies and takaful operators to requiring measures to address the issue, with rising comply with 30% local participation in their medical claims increasing pressure on medical insurance companies and keep 49% to 70% foreign premiums. equity in their company. “On average, medical insurance claims rise 14% annually,” he said.

Net claims paid to policy-holders increased to RM4.9 billion in 2016 compared to RM4.5 billion in 2015, owing to demand for better healthcare, ageing population and higher prevalence of chronic and lifestyle diseases.

The increase in the cost of drugs and treatments was also

INFOLINE: 02/2017 COMPETITIVENESS INFOLINE

I N F O L I N E :

THURSDAY, AUGUST 10, 2017 0 2 / 2 0 1 7 EAST COAST RAIL BOOSTER

The prime minister, in launching the 55 billion project, says it is both a game changer and mindset changer Datuk Seri is confident the 688km line will have a tremendously positive impact on the economy and the lives of millions of people.

he 688km East Coast Rail Link (ECRL) is set to be both a game changer and mindset changer for Malaysia as it will cut travel time between the east and west Tcoast. Prime Minister Datuk Seri Najib Razak said the ECRL journey from the Integrated Transport Terminal (ITT) in Gombak, to Kota Bharu, would be cut down to four hours, compared with th current average of eight hours, or even 12 hours during festive seasons.

“As such, ECRL will provide a faster and more comfortable alternative that will substantially reduce the gap between the east and west coasts of Peninsular Malaysia,” Najib said prior to the opening of the ECRL project at Bandar Baru The project will cut travel time between east and west to 4 Kuantan here yesterday. hours

Najib noted that which ECRL’s slogan of He noted that as Malaysia’s longest rail project, “Connecting Lives, Accelerating Growth” the ECRL would promote development of industry project set the tone for an economics pin-off effect areas and boost the growing trend of transit- and positive social impact for the east coast states oriented development that nurtures compact of , Terengganu and Kelantan. residential district and commercial centers along

INFOLINE: 02/2017 THURSDAY, AUGUST 10, 2017 the 22 stations. transformations on Malaysia in our effort to be among the top 20 nations by 2050.” “A host of towns , including Bentong, Mentakab,, Maran, Kuantan, Cherating, Chukai Dungun, Kuala Najib said he looked forward to the opening of ECRL Terengganu, Tok Bali and Kota Bharu, which are in 2024, and wished the best to Malaysia Rail Link designated as ECRL stations, will soon be in some (MRL) Sdn Bhd and China Communications exciting times,” he said with regard to the towns Construction Company Ltd (CCCC) in the ambitious located in the three east coast states, which have a undertaking. combined population 0f 4.4 million. CCCC is the contractor for the ECRL project while Najib said ECRL would benefit freight transport as it MRL is the project owner. would link key economic and industrial areas of three east coast states, such as the Malaysia-China Present were the People’s Republic of China Special Kuantan Industrial Park, Gambang Halal Park and Envoy Wang Yong, MRL chairman Tan Sri Dr Mohd Tok Bali Integrated Fisheries Park, to th Kuantan Irwan Serigar Abdullah, Kelantan Menteri Besar Port and Port Klang. Datuk Ahmad Yakob, Terengganu Menteri Besar Datuk Seri Ahmad Razif Abdul Rahman and Pahang “The viability of ECRL is undisputed as it is estimated Menteri Besar Datuk Seri Adnan Yaakob. that 5.4 million tonnes of cargo will use the ECRL service annually by 2030 as the primary transport Also present were China’s Ambassador to Malaysia between the east coast and the west coast’” he said, Dr. Huang Huikang and CCCC chairman Liu Qitao. adding that 30 per cent of revenue was projected to be generated by passengers and 70 per cent through freight.

Najib noted that ECRL had the potential to create an alternative trade route in the southeast region as the new rail line was able to connect ports on the peninsula’s west coast and east coast.

“Regional trade routes that are mainly centered on the busy Straits of and the South China Sea via Singapore may leverage ECRL transportation, which can cater to the movement of bulky items in large volumes at a lower coast. ECRL is also expected to increase two-way trade for Malaysia as it will participate in the Pan Asia Railway Network that enhances the connectivity to the Asean and Eurasia regions.

“ECRL, together with several mega infrastructure projects, such as MRT (Mass Rapid Transit) and the Kuala Lumpur-Singapore High Speed Rail, which provides the rakyat with access to new, modern, and efficient public transport, will play a key factor in the

INFOLINE: 02/2017 NEW STRAITS TIMES THURSDAY, AUGUST 10, 2017

Prime Minister Datuk Seri Najib Razak with key ministers and leaders looking at replica of the East Coast Rail Link in Kuantan SPILLOVER EFFECTS WILL Dass added that in the process, it would create BENEFIT TOWNS ALONG more townships in the states that would benefit ROUTE, SMES, SAY EXPERT from it, which meant more business activities, and trade for Malaysia and region, as well as improvements in mobility. UALA LUMPUR: The spillover effects fro the East Coast Rail Line (ECRL) Depending on the speed of implementation and project will, among others, enable rollout of projects, the activities this year are towns such as Bentong and Mentakab, expected to contribute at least 0.2 percentage Kboth in Pahang, to expand rapidly due to the points to the GDP next year. bustling trading and construction activities, economists said. According to the Statistics Department Kelantan, Terengganu and Pahang recorded a Small-and medium-scale enter prices, including GDP growth of 3.5 percent, 3.3 per cent and 4.4 those in the retail business, would be among the per cent respectively. main beneficiaries from the increased consumption activities in the towns located along “We can expect the first wave of contributions the route. to come from construction and supporting manufacturing activities, ”Dass said. The project would be undertaken in three phases with the first phases from the Klang Valley to “With lower transport costs, this would lead to Kuantan, followed by Kuantan to Kuala lower cost of doing business, and that means Terengganu, and the final phase from Kuala productivity should improve with a greater level Terengganu to Kota Bharu and Tumpat. efficiency. This would improve competitiveness of our products and services and commercial AmBank group chief economist Anthony Dass activities,” he added. estimated that the project would create around Tourism activities and the flow of foreign RM50 billion in terms of gross domestic product visitors to the region will also steadily increase. (GDP). “For every ringgit spent on capital projects like transport, it generates are turn of around five PROJECT TO SEE BUILDING OF NATION’S to 20 per cent,” he said. LONGEST RAIL TUNNEL

INFOLINE: 02/2017 NEW STRAITS TIMES THURSDAY, AUGUST 10, 2017

UANTAN: The first phase of the East Coast Irwan, who is also Treasury secretary-general, Rail Link (ECRL) will see the construction said MRL would also construct a number of from Bentong, Pahang, to Gombak, bridges measuring a total of 88.8km at ECRL Selangor, making it the longest rail tunnel locations that have high risk of floods, Kin Malaysia. especially in Terengganu and Kelantan.

The Bentong-Gombak tunnel forms part of a network “This project is for the people. The 688km rail of 49km of tunnels to be built in 19 locations along the track from Port Klang Selangor, to Tumpat, total 688km length of the railway line, from the Klang Kelantan, would lead to a multiplier effect via Valley to Kota Bharu, Kleantan. shortening the duration of travel, cutting down the rate of accidents, providing job Malaysia Rail Link (MRL) Sdn Bhd chairman Tan Sri opportunities and boosting income, and Mohd Irwan Serigar Abdullah said the construction of creating growth in terms of transit-oriented the tunnels, which forms the first phase of the ECRL development, including business and logistics. project covering 22 stations, was expected to be completed within the next four years. “We are thankful to the governments of Pahang, Terengganu, Kelantan and Selangor, Most of the locations were in Pahang, with the which provided the best cooperation, remainder at border areas Terengganu and Kelantan. especially in terms of land acquisition.

“Construction of both phase 1 and 2 of ECRL project “It is our aim to ensure the project is will be done simultaneously, including boring the completed earlier than scheduled so that the longest tunnel in Malaysia (Bentong-Gombak). people can reap benefits as soon as possible,” he said. “It will utilize tunnel boring machines or drill and blast, depending on which is the situations,” he said.

“The project’s contractor, China Communication Construction Company (CCCC), possesses the technological capability supported by the workforce, including engineers and local employees, and is able to complete the RM55 billion mega project as planned.”

He pointed out that soil work project to implement the rail network was completed and acquisition work began in June, and would take 12 months from now to complete.

“We foresee the project to begin later this year,” he said at a press conference after ECRL launch ceremony by Prime Minister Datuk Seri Najib Razak here yesterday.

INFOLINE: 02/2017 COMPETITIVENESS INFOLINE

I N F O L I N E : WEDNESDAY, SEPTEMBER 6, 2017 0 2 / 2 0 1 7 MALAYSIA ACCELERATING HALAL INDUSTRY’S GROWTH

It is currently in talks with several countries to bring the local halal agenda forward, backed by strong request of the local halal products.

he introduction of halal certificates since 1974 has earmarked Malaysia’s role in spearheading the global halal industry, being the first country to set a standard regulationT for halal products. The pioneer status continued when in 2000, Malaysia also became the first to have a documented and systematic halal assurance standard that revolutionized the industry into a new source of economic growth. We should have a little faith in our halal industry, as it is The government outlined blueprints and action comprehensive among other halal producing countries, says Jamil. plans with aims to intensify the development of halal industry and positioned Malaysia to take the lead. Realizing the economic potential of the industry, a Malaysia as the global leader for the halal industry. development agency was established under the “We have to recognize the government’s International Trade Industry Ministry in 2006. involvement in building a comprehensive ecosystem for Set up to develop the country’s industry capacity, our halal industry, and (which) has been one of our Halal Industry Development Corp (HDC) was poised to advantage at present. drive the local halal scene forward into a global “To my knowledge, some countries are only direction. focusing on the production and not on building the Two years later, the Halal Industry Master Plan infrastructure around them. Some are only focusing on 2008-2020 was launched by the government to the halal certificate. In Malaysia, we have an ecosystem facilitate in achieving the country’s economic goal of that is through, backed by the government’s incentives becoming the global leader in innovation and and the public-private partnerships. production in the halal sector. “All of these encouragements have led Malaysia to Now, more than 40 years since the first step, be the global reference center for halal industry and we Malaysia has emerged as the new growth leader in the are being recognized by the Organization of Islamic global scene with an increasing consumer base and Cooperation countries,” he told The Malaysian Reserve market potential. recently. HDC CEO Datuk Seri Jamil Bidin attributed the Malaysia is currently in talks with several countries continuous government involvement in positioning

INFOLINE: 02/2017 MALAYSIAN RESERVE WEDNESDAY, SEPTEMBER 6 , 2 0 1 7

to bring the local halal agenda forward, backed by strong We are in the third phase of our national halal requests of the local halal products. master plan, which started in 2015. the third phase “We have received requests to bring halal products as will see the country broaden its geographical reach far as Latin America and this is coherent with our for its homegrown companies.” internationalization agenda to create more market space Earlier this year, the government announced that in the global region,” he said. the country’s halal industry is projected to reach Realizing the potential of rising demand for local RM50 billion in trade exports by 2020 with a growth halal products, Jamil added that Malaysia is fully aware of rate of 5% to 6% by the end of 2017. the significance of raising the stakes of the country’s While the halal food and beverages (F&B) industry players. expenditure is expected to grow to US$1.9 trillion “We have seen results in the halal export from year to (RM8.09 trillion) by 2021, more market-moving year as the trade is steadily increasing. And we are decisions were made in Malaysia to realize the continuously levelling our standards and production by economic targets. hosting trade shows and conferences to accommodate For the past year, the government has—through the increasing request of our products,” he said. the halal industry—entered into several The halal sector is considered one of the most critical international partnerships to forge closer ties in industries as it serves the Muslim population’s religious various fields including the trade, tourism and halal needs and is simultaneously capable of reaching to the sector. rest of the global population. “We are confident that by the year 2020, we are With growing competition from foreign players, HDC able to achieve those targets. One of the reasons is working hard to ensure Malaysia’s leading position. being that we have identified new market places that “We want more of our local halal industry players to are coming up, especially in the Middle Eastern go abroad and succeed at an international level.” countries. If we look at the industry as a whole, it is safe to say “for example, now we are in talks with the Saudi that we have grown exponentially within a short span of Arabian government for a partnership in exporting time and our development is far ahead in terms of overall our F&B, as well as our expertise there. We hope to environment,” he said. finalise the deal before the end of the year. The halal sector is considered one of the most critical “This partnership will also stand in as our industries as it serves the Muslim population’s religious gateway to enter the African market that we are needs and is simultaneously capable of reaching to the planning to tap into due to the high market rest of the global population. potential,” ha said. With growing competition from foreign players, HDC Jamil added that the African continent has a is working hard to ensure Malaysia’s leading position. population of 1.22billion, of which 200 million are We want more of our local halal industry players to Muslims. However, due to logistics ad other reasons, go abroad and succeed at an international level. the market is still untapped by industry players from “If we look at the industry as a whole, it is safe to say Malaysia. that we have grown exponentially within a short span of Based on HDC data, Malaysia had only exported time and our development is far ahead in terms of overall Rm3.3 billion worth of halal products to Middle environment,” he said. Eastern countries in 2015, almost double that of Gulf Jamil said it is difficult to measure the degree of Cooperation Council counties. success between countries in the industry, as each During the same period, the Asia-Pacific country is performing at a different pace. Economic Cooperation’s country members received “It I tough to compare whether we have a better trade the most export value by Malaysia—recorded at export or other countries like Thailand has, as each halal RM27 billion—surpassing the export trade to Asean producing country is varied in terms of ecosystem.” countries, which was recorded at RM11.7billion. “For example, some countries do not have an official Malaysia has been known to host significant statistics data from the government to show what they international halal events as well as for the local halal have made and what they are projected to make. Thus, it scene, namely the annual Malaysia International is though to compare when there is no data to begin with. Halal Showcase, Halal Fiesta Asean and the World “We should have a little faith in our halal industry, as Halal Conference to further promote and solidify it is comprehensive among other halal producing Malaysia’s halal agenda. countries. We are very clear of our target and what we want to further develop,” he added.

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I N F O L I N E : WEDNESDAY, JULY 26, 2017 0 2 / 2 0 1 7 ADAPT TO GLOBALISATION TO MOVE FORWARD, SAYS BNM GOVERNOR

Embracing globalization and technology is unavoidable in moving forward, says Muhammad.

ountries should adapt to globalisation to reap benefits instead of closing borders or withdrawing from international trade and financial commitments,C says Bank Negara Malaysia (BNM) governor Datuk Seri Muhammad Ibrahim. Muhammad said nations should not reverse from the current path of progress towards measured globalisation despite the larger challenges that they are facing. “We must emphasise the benefits of globalisation to counter populist sentiment, while actively assisting those negatively impacted to Three points to be taken seriously for globalization to be accepted by the world community are equality, people – make the necessary adjustments,” he said in his centered policy approaches and embracing technological keynote address at the 2017 BNM-International advancements , Muhammad says. Monetary Fund (IMF) Summer Conference yesterday. He said the move by the US to exit the Trans- Pacific Partnership Agreement (TPPA) was an TPPA, an accord negotiated by former President unfortunate turnaround for the global economy. Barack Obama’s administration. He voiced his disappointment over the US The agreement was initially signed by 12 move to exit the group as many things had been countries in 2015 making up 40% of the global left unclear with the withdrawal. economy. “Closing borders and building walls is not right, Several reports stated that before as policymakers must be more connected to the Washington pulled out from the TPPA, Kuala needs of the people,” he said. Lumpur and Hanoi were seen as the pact’s top The TPPA is no longer the world’s largest trade beneficiaries with an expected rise in foreign pact after US President Donald Trump signed an direct investment inflows and exports. executive order to formally withdraw from the

INFOLINE: 02/2017 MALAYSIAN RESERVE WEDNESDAY, JULY 26, 2017

Vietnam’s garment industry and Malaysia’s He said communication must be effective to electronics, in particular, were seen strengthening disperse information and avoid misconception from the removal of tariffs in the US and other for the world population to understand the major importers. benefits of globalisation. “The retreat of the US from the TPPA is still “There are movements that fight unfolding as we speak and the full impact of these globalisation worldwide and we need to face developments are only likely to be clear some years this as there are pros and cons in the policy from now. itself,” he added. “This is indeed a most unfortunate situation and In terms of embracing technological when factions exacerbate fractions, it damages advancements, Muhammad said that by 2020, even the most established forms of international over 24 billion devices would be connected to cooperation,” Muhammad said. the Internet, and it would be a waste if the He said that embracing globalisation and opportunity was not capitalised upon. technology is unavoidable in moving forward, but “We need to widen the horizon of the adoption must be accompanied by the capacity globalisation by including those impacted the to deal with any negative spillover effects for most through policies. meaningful progress and growth. “This is a path to creating one global nation “In more recent times, major trends have for the next generation,” he added. influenced how we perceive and pursue the The IMF has warned that global living globalisation process. “Three points to be taken standards will continue to fall, unless seriously for globalisation to be accepted by the governments and businesses take measured world community are equality, people-centered efforts to put in place long-term solutions. policy approaches and embracing technological Muhammad said the solution is not to turn advancements,” he said. our backs on globalisation, closing borders and “The world is changing rapidly and countries cutting ties, or to withdraw from international need to find a way to maximize growth. However, trade or financial agreements and the policy approaches must leave a positive impact commitments. on the community,” he added.

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I N F O L I N E : WEDNESDAY, SEPTEMBER 6 , 2 0 1 7 0 2 / 2 0 1 7

WIL TO HELP PREPARE WOMEN AS BOARD MEMBERS

A LITTLE MORE TIME IS REQUIRED TO MEET THE 30% TARGET DUE TO CHALLENGES he call to have greater participation of women on boards of companies has its challenges and a little more time will be required to meet the 30%T target participation by 2020 aimed for by the government. Efforts to boost greater gender equality in Loh says efforts in creating board readiness include Malaysia’s workforce have now seen women education and a change in culture accounting for only 16.6% of board members on Bursa

Malaysia-listed top 100 companies. get the flow going,” she told The Malaysian Reserve Institute of Chartered Accountants in England and (TMR) yesterday in Kuala Lumpur. Wales (ICAEW) ED Sharron Gunn said it often takes Another issue that women face in the workforce time to build momentum and it was the same for the today is pay gap, which has been in the spotlight all UK. over the world in the last decade. “When we first started in 2011, our target was to The 2017 Gender Equality Global Report and get 25% of women in executive roles, but we only hit Ranking by independent body, Equipleap, recently about 13% or 14%. reported the top five countries that have “But it suddenly moved very quickly in the last demonstrated a commitment to gender equality are couple of years, so sometimes it does take a while to Norway, Sweden, the Netherlands, Finland and the UK.

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The research scored over 3,000 public companies women in their roles and began running the from 23 countries, noting only six companies out of programme here. the top 200 companies had a gender pay gap of less ICAEW head of Malaysia Loh Wei Yuen said the than 3% and only 18% had signed and abided by the 30% target set by the prime minister might not be United Nations’ Women’s Empowerment Principles. achievable, but nevertheless provides a goal to work Gunn said even though the UK has had an Equal Pay towards and will keep raising the bar for women. Act for over 40 years, it still has not made a difference, “It’s a combination of effort from everyone, the even though it is illegal. government, regulators and organisations. For “What we are seeing in the UK is full disclosure instance we do advocacy, and we train women to be from employers for all to see. No doubt it will have a ready to go onto boards and link arms with various huge impact, they will need to be transparent about other bodies to work together. The good thing is we all the pay gap, and try and bridge that. We have also have the same objective and direction,” she seen companies with no women as board members told TMR at the graduation ceremony of WIL in Kuala named and shamed,” she said. Lumpur yesterday. This is in line with Prime Minister Datuk Seri Mohd Loh added that efforts in creating board readiness Najib Razak’s attempt to meet the targeted 30% by include education and a change in culture. 2020, saying that by next year, he will be naming and “We have gone into schools and universities to shaming these companies as well. speak to young women about having the option to Gunn is confident of this method working because it choose a role and excel in it. For example, a lot of male would also affect potential investors who would not -dominated sectors do not have many women in it. We want to be seen investing in companies that are on the are trying to break that mould. “name and shame” list. “Also, having no disparity can benefit us today. ICAEW partnered Talent Corp Malaysia Bhd and During interviews these days, you see an equal was facilitated by LeadWomen Sdn Bhd to empower amount of men and women on the board conducting and encourage women in leadership roles through the it,” she said. Women in Leader- ship (WIL) programme. ICAEW hopes to continue empowering women in The programme that takes place once a year has the workforce and will be rolling out programmes to been around for four years in Malaysia, but started off enable women to assume high-ranking roles, proving in the UK for chartered accountants. ICAEW soon saw that success is available for all, regardless of gender or the importance of supporting strong professional race.

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I N F O L I N E : FRIDAY, JUNE 23, 2017 0 2 / 2 0 1 7

SPECIAL COURT FORMED TO SPEED UP HEARINGS

THERE SHOULD BE NO DELAY IN HANDLING CASES, SAY NAJIB AND CHIEF JUSTICE

HE prime minister launches Southeast ASPECIAL court that deals with sexual crimes against Asia’s first-ever court to deal exclusively children, the first of its kind in Southeast Asia, was launched with sexual crimes against children. to ensure swift justice is done. Datuk Seri Najib Razak wants the cases Prime Minister Datuk Seri Najib Razak yesterday said to beT quickly adjudicated, ‘if possible within a year’. The there should not be any delay in handling sexual crime first sitting will be held on July 4. cases when the victims were children.

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“I hope with the set up of this court, sexual crime cases children. He hoped the SOPs could be drafted as soon as against children can be settled fast, if possible within one possible. year compared with some cases being dragged for several To achieve this, he said, a working committee, years,” he said of the court, which will see its first comprising the court, the Attorney-General’s Chambers, and proceeding on July 4. the Women, Family and Community Development Ministry, “Frivolous postponement (of cases) should not be as well as non-governmental organisations, including the allowed. Judges should not allow such postponement to United Nations Children’s Fund, would be formed. occur; the Bar Council should discipline its members and Najib also said child victims of sexual crimes should be the prosecution should send officers who are efficient and handled with sensitivity to ensure they would not dedicated,” he said at the launch of the court at the Palace of experience psychological and emotional trauma. Justice here. To ensure efforts in tackling sexual crimes against Present were the prime minister’s wife, Datin Seri children are successful, Najib wanted all quarters to give full Rosmah Mansor, Chief Justice Tan Sri Md Raus Sharif, and support to the Sexual Offences Against Children Act 2017. Minister in the Prime Minister’s Department Datuk Seri The court’s establishment was mooted by the prime Azalina Othman Said. minister, who had raised it during a seminar on sexual “The special court here will hear cases in Selangor, crimes against children in March. Kuala Lumpur and . God willing, we will set up this Aimed at fast-tracking the disposal of cases as well as (special) court in all states in stages,” said Najib. hearing proceedings, Sessions Court judges with expertise Raus said more of such special courts would be set up, in laws relating to children would be appointed to hear with focus on Johor, Selangor and , followed by the cases. east coast states. Sessions Court judge Yong Zarida Sazali, with 25 years “Once we have the special court, we will make sure that of service, has been appointed to hear cases in the special these cases are dealt with quickly within one year. court located at the Annexe building of the Palace of Justice. “I have suggested it to be done in nine months, but It is equipped with infrastructure such as court there are views that it will put too much pressure. So I say, recording transcription; a waiting room for child witnesses; try not more than one year and if it can be done in nine live video link; child witness screens and disabled-friendly months, that will be good,” said the chief justice. facilities. Raus added that 56 existing cases of various sexual Rosmah, who is also the Permata Foundation patron, offences under the existing laws would be transferred to the later officiated the waiting room for vulnerable witnesses, special court after the Hari Raya celebration. called the “Bilik Permata”, which Permata had equipped The special court will focus on cases such as child with child-friendly facilities. pornography, child grooming and child sexual assault in Based on Welfare Department statistics, 5,779 cases of tandem with the Sexual Offences Against Children Act 2017 sexual abuse against children were recorded from 2010 that would be enforced soon. until 2015, with an average of 963 cases a year, while police The prime minister also suggested the formation of recorded 2,759 rape cases, incest (412 cases), molest (1,423 special standard operating procedures (SOPs) as guidelines cases) and unnatural sex (422 cases) between 2015 and last on how best to handle sexual crime cases involving year involving victims aged 18 and below.

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I N F O L I N E : THURSDAY, AUGUST 24, 2017 0 2 / 2 0 1 7 FAVOURABLE OUTLOOK F OR MANUFACTURING FIRMS IN 2H

ANUFACTURING public sectors, should do their part to improve the companies in Malaysia companies in building more confidence to foreign expect business conditions investors. Based on the survey, the expected export to improve for the second- sales index for 2H17 grew six points to 117, half M of the year (2H17) attributable to better local postulating a pick-up in exports by year-end. sales and export. Based on the Federation of Thirty-eight percent of respondents are Malaysian Manufacturers (FMM)-Malaysian Institute forecasting higher export sales in the near term, up of Economic Research Business Conditions Survey, from 35% in the survey conducted in the previous the index for expected business conditions rose 10 half. Apart from that, the expected local sales index points to 110. “One of the reasons for it to do well is soared 15 points as 27% of them are expecting because most of them export their products better sales, which suggests a pick-up in the overseas,” FMM president Tan Sri Dr Lim Wee domestic demand and sales in the months ahead. Chai said yesterday. “The business improved The index for expected production volume because of the weaker ringgit. Weak ringgit climbed 11 points to 117 for the next six months, indirectly makes the cost production lower and inferring production would pick up momentum. makes Malaysia more competitive,” Lim added. Still, Lim cautioned that the weakening ringgit only brings FMM temporary benefits to the exporters. He said overall, President the drop in the ringgit’s value brings a negative Tan Sri Dr Lim Wee sentiment, saying as currency devaluates, it signals Chai weaknesses in the country’s economy. Lim added that the government, as well as the

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