Anwar: Investments rising despite Malaysia’s differing stance on Gaza issue

Tuesday 05 Nov 2024

KULIM (Aug 8): Investments in Malaysia continue to rise despite Malaysia’s differing stance on the Gaza issue compared to that of European countries, Prime Minister Datuk Seri Anwar Ibrahim said on Thursday.

Anwar, who is also finance minister, said the increase in investments includes the electrical and electronics (E&E) sector, which continues to be a focus for Malaysia.

“E&E investments from the United States make up a substantial 26%, which is significant. Despite strong and differing positions on Gaza that contradict the stance of the United States, both parties continue to maintain their interests in terms of investments.

“Therefore, investments continue to increase, but we are also turning to China, where E&E is growing, and electric vehicles (EV) show that China can manage costs and efficiency, particularly in battery production,” he said at the Budget 2025 engagement session with players in the E&E industry at SilTerra Malaysia Sdn Bhd’s semiconductor foundry here.

Anwar also said that German Chancellor Olaf Scholz provided strong support for German semiconductor giant Infineon Technologies AG to invest significantly in Malaysia, despite differing opinions on Gaza.

In this regard, Anwar explained that although Malaysia’s ecosystem is at a good level, the country needs to prepare to further develop the industry, including strengthening the fields of technical and vocational education and training (TVET), and engineering.

Thus, the prime minister indicated that he will discuss with the Minister of Higher Education Datuk Seri Zambry Abdul Kadir, the possibility of Universiti Utara Malaysia (UUM) establishing a department or faculty of engineering to meet the country’s urgent need for skilled workers in the sector, including in artificial intelligence (AI).

“However, this is not ordinary engineering; the discipline must be enhanced with a focus on digital AI, because AI is dominated by engineers. So, synergy is crucial,” he said.

Meanwhile, Anwar also emphasised that the recent strengthening of the ringgit adds confidence that Malaysia is on the right track.

He noted that one should not be too complacent, as good figures or data may be misleading, and there are still many steps to be taken for improvement.

Regarding the engagement session, Anwar described it as an opportunity to gather feedback from the industry stakeholders on policies, incentives, programmes and implementations, before it is brought back for review at the Ministry of Finance, to be aligned with the Madani Budget 2025.

“We need to seek your (E&E industry players’) input, your advice, because as a government, I must say that we do not claim to have all the answers. Sometimes, what political leaders lack is humility.

“Your input is important. We will coordinate and try to improve, particularly when we announce our budget in October. This budget is important because in recent months, Malaysia has been regarded as a semiconductor hub in the region,” he said.

More than 70 E&E industry players from 52 companies based in Kedah, Penang, and Perak attended the engagement session, which was also attended by the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, and Kedah Chief Minister Datuk Seri Muhammad Sanusi Md Nor.

Budget 2025, which is the third budget under the Unity Government, will be tabled in Dewan Rakyat on Oct 18 this year.

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