Economy

Held alongside KLSS 2025, the event reflects the intent to anchor sustainability as both a national priority and regional export 

by AUFA MARDHIAH 

AS THE 15th International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM 2025) concluded in Kuala Lumpur (KL), the tone was less celebratory and more forward-looking. 

Held alongside the inaugural KL Sustainability Summit (KLSS 2025), the event reflected Malaysia’s intent to anchor sustainability as both a national priority and a regional export. 

IGEM 2025 carried a RM5.5 billion investment target, following RM10.18 billion in business leads recorded in 2024. Yet, it once again outperformed expectations. 

According to the Malaysian Investment Development Authority (MIDA), the exhibition generated RM7.3 billion in potential green investments through 38 strategic business-matching sessions under its Biz Bridge initiative. 

These potential investments span renewable energy (RE), sustainable manufacturing and clean-technology projects, further bolstered by MIDA’s partnership with Malayan Banking Bhd (Maybank) to accelerate green financing and environmental, social and governance (ESG)-aligned investments. 

MIDA said the outcome reaffirms Malaysia’s position as South-East Asia’s emerging clean-energy hub, backed by frameworks such as the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan 2030 (NIMP 2030). 

The event also drew 55,000 visitors from more than 40 countries, featuring 420 booths and eight international pavilions, while KLSS 2025 gathered over 300 organisations and 17 nations in a shared dialogue on sustainability, transforming policy discussions into a marketplace for collaboration. 

From Declaration to Deployment 

The week’s defining outcome was the KL Declaration on Climate Resilience, adopted at the closing of KLSS 2025 and presented during IGEM’s official opening ceremony. 

It reaffirmed Malaysia’s commitment to inclusive, region-wide climate adaptation and mitigation, earning support from global and ASEAN leaders, including United Nations (UN) Secretary General climate advisor Selwin Hart and Malaysia’s institutional investors. 

The declaration builds upon the KL Sustainable Declaration on Localising ASEAN Community Vision 2045, adopted through the Meeting of Governors and Mayors of ASEAN Capitals (MGMAC) Communique 2025 signed by the mayor of KL. 

It extends a spirit of regional solidarity into Malaysia’s national context by aligning local, city and federal efforts under a unified sustainability framework. 

In his keynote, acting Natural Resources and Environmental Sustainability (NRES) Minister Datuk Seri Johari Abdul Ghani described the declaration as a bridge between rhetoric and results. 

He urged ASEAN economies to move “from pledges to projects” and warned that global warming had already surpassed critical thresholds. 

“The world has spent too long in conversation and too little in transformation,” he said. Across IGEM’s three days, that call for action was echoed through sessions such as the ASEAN Circular Economy Forum, Malaysia- Japan Environment Week and the third Malaysia Carbon Market Forum.

Each aimed to turn policy commitments into measurable outcomes from advancing regional carbon trading frameworks to scaling renewable energy and building inclusive supply chains. 

On the other hand, NRES Secretary General Datuk Dr Ching Thoo Kim called the week “a catalyst for change, a marketplace of ideas and a testament to what we can achieve when united behind a common purpose”. 

He said Malaysia’s forthcoming Climate Change Bill and the newly launched National Climate Change Policy 2.0 would establish a stronger legal foundation for long-term climate governance and protection for vulnerable communities. 

The bill is expected to be tabled in Parliament following Budget 2026. 

COP Pavilion Debuts 

Another major highlight at IGEM 2025 was the unveiling of Malaysia’s Conference of Planet (COP) Pavilion — of which Johari officiated the soft launch of the Malaysia Pavilion @ COP30 on Oct 16 at the MGTC Arena. 

Themed “Climate Action Now: Net-zero Pathways Unlocked”, the launch marked Malaysia’s preparation for its participation at COP30 in Belém, Brazil, this month. 

In his keynote address, Johari said the pavilion would serve as a national and ASEAN-level platform to promote investment-ready projects and collaborative pathways toward decarbonisation. 

The initiative, led by Malaysian Green Tech and Climate Change Corp (MGTC) and the NRES, will spotlight Malaysia’s focus areas including energy transition, nature-based solutions, green finance, adaptation and youth inclusion. 

The Malaysia Pavilion @ COP30 builds on momentum from IGEM 2025, where the COP Pavilion previewed the country’s international presence. 

Structured around thematic clusters such as energy transition, tech and innovation, and nature-based solutions, it showcased how domestic progress aligns with global net-zero objectives.

The pavilion’s design reinforced MGTC’s message that Malaysia is no longer merely adopting climate solutions but also exporting innovation, policy models and partnerships to the wider region.

Johari’s officiation highlighted Malaysia’s aim to act as a regional convener for climate action, bridging policy, finance and technology between ASEAN and global partners ahead of COP30. 

Finance Steps into Climate Action 

Among the tangible outcomes was the launch of Dana Iklim+, a RM2 billion climate-focused investment fund by Retirement Fund (Inc) (KWAP). 

Introduced during the opening of IGEM, it became Malaysia’s first institutional vehicle dedicated to climate finance, directing capital into infrastructure, private equity, real estate and nature-based solutions. 

The fund aims to mobilise institutional capital toward measurable decarbonisation outcomes while delivering sustainable returns. 

Its impact framework targets the mitigation of up to one million metric tonnes of CO2 equaivalent, guided by the UN Sustainable Development Goals (SDG) and aligned with the NETR, Ekonomi Madani and the Finance Ministry’s GEAR-uP initiative. 

The initiative symbolised how domestic finance is beginning to close Malaysia’s green-investment gap, which is a shift from policy aspiration to portfolio action. 

Energising Investment and Regional Leadership

For MGTC acting group CEO and COO Saiful Adib Abdul Munaff, the outcome of IGEM 2025 reflects both the maturity of Malaysia’s clean-energy transition and the growing confidence among investors. 

He said the focus remains on the energy sector, which contributes around 80% of national emissions, making it the core of Malaysia’s decarbonisation strategy. 

“With the NETR setting out a clear pathway, investors now see that Malaysia is serious about this transition. This gives rise to businesses offering solutions and investors ready to support those programmes,” he told The Malaysian Reserve (TMR). 

MGTC has since partnered over 20 financial institutions to bridge technical gaps in sustainable lending. Its Green Finance Readiness Programme and MyHijau Mark certification help banks assess ESG compliance and project viability. 

“There is a clear focus from local banks to support the development of small and medium enterprises (SMEs) and local businesses across the value chain,” he said, referring to the MIDA-Maybank partnership announced at IGEM’s opening. 

He noted that MGTC’s role has expanded beyond investment promotion to ecosystem building including developing standards, talent, and training for low-carbon industries. 

Malaysia’s ASEAN chairmanship 2025, he added, offers a chance to position the country as the region’s green-technology hub, serving as both a production and knowledge centre for clean-energy solutions. 

Additionally, MGTC and the ministry are exploring ways to link Malaysia’s carbon market with other ASEAN economies under the ASEAN Common Carbon Framework, ensuring regional alignment while protecting domestic interests. 

At the community level, Saiful Adib highlighted grassroots initiatives showcased at IGEM from converting used cooking oil into soap to recycling discarded fishing nets into nylon pellets for resale. 

“These projects help create small local ecosystems that benefit communities, municipalities and small businesses,” he said. 

This year also marked the introduction of MGTC’s interactive public experience, the Green Transformation Ecosystem Walk-through, themed “Race Towards Net-zero: Inclusivity and Sustainability”. 

The experiential walkway guided visitors through six checkpoints representing pillars of MGTC’s sustainability ecosystem from policy and finance to innovation and lifestyle change. 

The initiative drew thousands of visitors and reflected MGTC’s goal of making Malaysia’s climate transition accessible, educational and people-driven. 

Nearly 200 organisations and community representatives also signed a climate-resilience pledge during KLSS 2025, highlighting a shift from corporate-led to community-driven sustainability. MGTC plans to expand these partnerships through local councils and NGOs nationwide. 

On the international front, MGTC aims to extend IGEM’s visibility abroad through smaller satellite showcases ahead of future editions in KL. 

“We’re exploring opportunities in China, India, Singapore and Europe to bring global investors here to see what Malaysia has to offer,” said Saiful Adib. 

Private Innovators Driving Low-Carbon Shift

Beyond policy commitments, private players used IGEM 2025 to demonstrate how Malaysia’s green economy is taking root through large-scale projects and viable technologies. 

Itramas Corp Sdn Bhd, one of Malaysia’s earliest solar developers, has been part of IGEM since its inception 16 years ago. 

Chief business officer Lee Yong Shen said IGEM continues to serve as a practical platform to generate business leads and align with policy objectives. 

“It helps companies like us showcase what we’re doing and align with government policy so we can play a bigger role in achieving national energy-transition targets,” he said. 

He said Malaysia’s policy clarity — from the Corporate RE Supply (CRES) scheme to the upcoming Accelerated Transition Solar Adoption Programme (ATSAP) — is attracting global partners. 

“With the right policies in place, companies like ours can grow locally first, then regionally. Malaysia is on the right track for the green-technology sector,” he added. 

Under its CREST-model solar park, Itramas is developing a 1.5 gigawatt (GW) solar plus industrial park in Johor, recognised as a flagship project under the NETR. Work has already begun, with completion targeted within two years. 

Meanwhile, Worldwide PMC Sdn Bhd is advancing Malaysia’s waste-to-energy (WTE) agenda. 

Lead planner Mohd Fouzul Marzuq SMO Abdul Salam said IGEM has helped raise awareness and attract new collaborations. 

“Many visitors were surprised to learn Malaysia is building waste-to-energy plants. They’re eager to understand how it works and its safety aspects,” he told TMR. 

The subsidiary of Worldwide Holdings Bhd is developing the largest WTE complex in South-East Asia, located in Jeram, Selangor, as part of the state’s long-term plan to phase out landfills. 

“The first unit is expected to start in the first quarter next year (1Q26), followed by the second in 2Q26. A third plant has just begun construction in Tanjung 12,” he said. 

The project’s electricity output will be channelled directly into the national grid, contributing to Malaysia’s RE mix. The energy generated will be distributed for household and industrial use based on Tenaga Nasional Bhd’s (TNB) allocation. 

For Worldwide PMC, policy support and public understanding remain key. 

The company views the current regulatory framework as favourable but believes more funding and education are needed to strengthen local confidence in WTE technology. 

“There’s a need to help the public see waste not as a burden, but as a renewable resource,” said Mohd Fouzul Marzuq. 

IGEM 2025 reaffirmed that climate leadership depends as much on inclusion as innovation. 

Johari stressed that the platform must not serve large corporations alone but act as a launchpad for micro, small and medium enterprises (MSMEs). 

“By engaging MSMEs, Malaysia ensures that the benefits of the green transition are shared widely,” he said, noting their role in supply chains and job creation. 

This year’s exhibitors reflected that diversity, from Petronas’ hydrogen and carbon-capture projects to TNB’s solar and grid technologies, and Overseas-Chinese Bank Corp Ltd’s (OCBC Bank) green-financing solutions. 

Eight international pavilions, namely from Austria, Canada, China, Finland, Indonesia, Japan, Korea and Thailand highlighted Malaysia’s growing profile as an ASEAN hub for clean-tech exchange. 

 

Budget 2026: A Policy Tailwind 

Momentum was further reinforced by measures in Budget 2026, which introduced a full Green Investment Tax Allowance (GITA) for companies adopting locally manufactured green-technology products under the MyHijau Mark. 

Together with the Green Technology Financing Scheme 5.0, the incentives aim to boost demand for home-grown innovation and strengthen Malaysia’s manufacturing base. 

MGTC chairperson Shareen Shariza Abdul Ghani said the corporation’s ecosystem approach now supports 3,745 MSMEs and has facilitated RM76.8 billion in green investments since 2010. 

Through partnerships with eight state governments and 67 local authorities, MGTC’s programmes have contributed to 22 million tonnes of carbon reduction and created 29,000 green jobs nationwide. 

She described IGEM and KLSS as “movements that redefine how Malaysia grows, invests and collaborates for the future”. 

As ASEAN chair 2025, Malaysia used IGEM and KLSS to strengthen its regional role in shaping the green economy. 

Johari said the government is finalising the National Carbon Market Policy and Third Nationally Determined Contribution (NDC 3.0), alongside the newly passed Carbon Capture, Utilisation and Storage (CCUS) Bill, which positions Malaysia as a regional hub for carbon management worth up to US$250 billion (RM1.06 trillion) over the next three decades. 

By bringing policy, finance, and industry under one roof, IGEM 2025 showed Malaysia’s ability not only to convene but also to lead. 

The event reflected a nation ready to transform ambition into measurable outcomes — supported by institutions, investors and communities aligned toward a shared vision. 

IGEM 2025 therefore closed not as an exhibition but as a statement of intent. 

Malaysia’s capacity to connect strategy with execution from investment and technology to grassroots inclusion emphasised a maturing green-economy ecosystem ready to compete globally. 

As the world turns its attention to COP30, the challenge now lies in sustaining that momentum beyond the exhibition floor to ensure that every pledge made under the KL Declaration and every partnership sealed at IGEM 2025 translates into real, traceable progress towards net-zero 2050. 

The next edition, IGEM 2026, will return to the KL Convention Centre (KLCC) from Oct 7-9, 2026, continuing Malaysia’s mission to position itself as a regional hub for green technology, innovation and investment. 

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• This article first appeared in The Malaysian Reserve weekly print edition

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KUALA LUMPUR — Malaysia has the right to terminate its Agreement on Reciprocal Trade (ART) with the United States (US) at any time through written notice without requiring the consent of the US, said the Attorney-General’s Chambers (AGC).

In a statement, the AGC said that this is provided for under Article 7.5 of the ART, which also emphasises that all protections under the agreement are intended to defend and preserve Malaysia’s sovereignty and protect the country’s interests at all times.

The statement clarifies that ART will only come into effect 60 days after both parties exchange written notifications confirming that their respective domestic legal procedures have been completed.

“The implementation of obligations and commitments under this agreement by Malaysia is subject to applicable Malaysian domestic laws and procedures,” according to the AGC.

ART also provides for good-faith consultations between Malaysia and the US regarding implementation issues before either party can take action against the other. 

However, based on Article 7.1, Malaysia and the US, as member countries of the World Trade Organisation (WTO), will continue to recognise the rights, obligations, and protections established under the WTO agreement for international trade.

Malaysia and the US signed the ART on Oct 26 during the 47th ASEAN Summit in Kuala Lumpur.

The agreement is a US proposal to renegotiate tariffs on Malaysia from 25 per cent to 19 per cent, under Executive Order 14257 issued by US President Donald Trump on April 2, 2025.

The negotiations were led by the Ministry of Investment, Trade and Industry (MITI) on behalf of Malaysia, while the US was represented by the Office of the United States Trade Representative.

MITI also involved relevant ministries and agencies in the negotiations, and policy decisions regarding ART were made by the Cabinet after considering economic, political and legal aspects. — BERNAMA

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by HIDAYATH HISHAM

THE government expects to save between RM2 billion and RM4 billion a year through the implementation of the Individual Diesel Subsidy Assistance (BUDI) system.

Deputy Finance Minister Lim Hui Ying (picture) said the estimated savings were based on global crude oil prices ranging between US$60 and US$80 per barrel.

“The savings will be channelled back into strengthening people’s welfare initiatives and supporting national economic development,” she told the Dewan Rakyat today in response to an additional question from Chong Zhe Min (PH–Kampar).

She said the measure forms part of the government’s strategy to ensure diesel subsidies are used more efficiently and reach intended recipients.

Lim said BUDI’s first month of implementation recorded encouraging results with no congestion reported at petrol stations, while users are becoming more familiar with the BUDI95 system to access subsidised diesel.

“The BUDI system provides a transparent and easily monitored digital platform. Each transaction is recorded, allowing authorities to detect any misuse and enhance transparency and accountability in subsidy distribution,” she said.

Lim added that the government is continuously reviewing the system for improvement, including adding more participating stations and extending access to targeted groups in rural areas to ensure assistance reaches those who truly need it.

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A NEW study supported by the Malaysian National AI Office (NAIO) shows that local small and medium enterprises (SMEs) are optimistic about the potential of artificial intelligence (AI) to drive business growth, though most remain in the early stages of adoption. 

The research, conducted by independent firm Ecosystm in collaboration with NAIO and industry partners, surveyed 133 SMEs across multiple sectors to assess AI adoption trends, challenges and future plans. 

According to the findings, 44% of respondents expect AI to boost business growth without raising costs, while 41% believe it will help enable new products and services. However, 36% of the SMEs surveyed are still piloting AI initiatives and only 21% have scaled beyond pilot stages to deliver measurable results. 

Open source technology is emerging as a key enabler of wider AI adoption, with 54% of SMEs citing cost savings and 51% highlighting flexibility as their main reasons for using open source tools. The report notes that such technologies can help SMEs move from experimentation to broader, scalable impact — aligning with Malaysia’s national AI agenda. 

Despite the growing interest, skills shortage remains the biggest hurdle. About 60% of respondents said the lack of in-house technical expertise is the main barrier to adoption, while 52% pointed to implementation and maintenance costs. 

The study also underscores the need for stronger ecosystem support involving government, industry and academia to accelerate AI maturity. Respondents identified funding, incentives and partnerships with technology providers as critical to scaling adoption sustainably. 

NAIO head Shamsul Izhan Abdul Majid said empowering SMEs to adopt AI “in ways that are affordable, trustworthy and impactful” is central to Malaysia’s ambition of becoming a regional AI leader. 

“Open source lowers the cost of entry while giving businesses greater control over their data and their future. By working with partners, NAIO is committed to democratising AI and ensuring that its benefits reach all corners of the economy,” he said. 

Red Hat GM for the Rest of South-East Asia Albert Chai said open source solutions are help- ing SMEs overcome barriers such as skills gaps, infrastructure costs and vendor lock-in, allowing them to “experiment, customise and scale AI more responsibly.” 

Ecosystm VP of industry insights Sash Mukherjee said open source AI “offers more than cost savings; it enables flexibility, transparency and long-term control. As adoption deepens, it will become a foundation for scalable, responsible AI aligned to local needs.” 

The study, Accelerating SME AI Adoption Through Open Source in Malaysia’s Digital Future, was developed by Ecosystm with input from NAIO. 

It surveyed companies within the Malaysia Digital Economy Corp (MDEC) network and included interviews with NAIO stakeholders and working group members. — TMR

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• This article first appeared in The Malaysian Reserve weekly print edition

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Look instead at the 50 states, each evolving and innovating in its own way, some thriving and some facing challenges 

by HABHAJAN SINGH 

A KEY to understanding the US is to stop getting overly excited about what comes out of Washington. This is especially true with Donald J Trump serving as president. 

“We’re all fixated on Washington, DC, which is completely inexplicable and completely dysfunctional…But here’s how people should interpret the US. We are not Washington, DC. We’re not the drama of modern-day pop media. 

“We are 50 individual states. Each state has its own constitution, legislature, universities and governor. They innovate differently. They educate differently. And they compete against each other. I know that because I used to run one of the states,” Jon Huntsman, former ambassador and scion of a billionaire family, told a business gathering on the sidelines of the 47th ASEAN Summit in Kuala Lumpur (KL) last week. 

Huntsman, who is vice chairman and president of strategic growth at Mastercard Inc, sought to help the crowd at the ASEAN Business and Investment Summit 2025 understand how to negotiate with the US and with Trump. He was speaking just hours before Trump was scheduled to arrive in KL for the ASEAN gathering. 

“So, if you’re looking at Washington, DC, and the message is one of dysfunction… you’re looking in the wrong place. You need to look at the 50 states — they’re all moving, all innovating, all doing it. Some are healthy, some are not so healthy. And that’s kind of the way the US runs,” he said. 

The 65-year-old Huntsman served as the 16th governor of Utah from 2005 to 2009. A member of the Republican Party, he was the US ambassador to Russia from 2017 to 2019, to China from 2009 to 2011, and to Singapore from 1992 to 1993.

Decoding Trump has become a vital exercise for nations around the world, as Trump has imposed some of the highest tariff rates seen since the 1930s. 

Trade Negotiations 

On trade negotiations, Huntsman — who himself has participated in numerous talks — reminded everyone that whatever is true today will be different in 10 or 20 years. 

“Everything we negotiated 20 years ago is irrelevant today because the world is moving that quickly. If I sat down and gave you the trade agreement we did with Malaysia or with China — I had so many great friends I negotiated across the table with — but they’re all completely dated and anachronistic,” he said. 

He left participants of the two-day seminar with both a message of hope and a note of caution as the world continues to evolve. 

“America is a great country because America has the ability to heal its wounds and repair its faults. We make mistakes all the time, but we figure out how to fix them. So, any mistakes made today will be repaired in the years to come,” he said. 

He added that competition is always present — and healthy — because when nations compete, they innovate and move forward. 

However, Huntsman expressed concern that as the digital economy becomes increasingly ubiquitous, it risks leaving behind a segment of the population. 

“The threat of a digital divide — and I’m speaking specifically of ASEAN, not to mention the rest of the world — is real. ASEAN will soon be the fourth-largest economy in the world. It’s made up of small businesses and micro-enterprises — 87% of the companies in ASEAN, contributing 50% of GDP. 

“One of the great concerns, and something everyone in this room should be thinking about, is how we can address and alleviate the possibility of leaving behind so many people who can’t keep up with artificial intelligence (AI). We talk about AI like it’s something we all just do without a second thought. But many people have no access to it,” he said. 

He warned that if the gap is not addressed, it could leave the world in a “very destabilised place”. 

New Markets 

In the same panel discussion, Deputy Minister of Investment, Trade and Industry Liew Chin Tong was asked what he would like to see European countries do to forge closer ties with ASEAN — especially amid growing concern about being dominated by the US and China, the two economic superpowers flexing their might. 

Liew said he would urge both Europe and ASEAN to take themselves more seriously. 

He noted that for six to eight decades, Asia and Europe — particularly Germany — have grown wealthy by exporting to the US. 

“We have built into our mindset that we are producers, and the US is the market. We have regarded the US as the consumer of last resort and, in many instances, the consumer of first resort. 

“And therefore, we are all stuck — because suddenly, the US is putting up a wall and saying: ‘If you want to sell to us, pay more’,” he said. 

He added that while countries seek new markets in the name of diversification, they must also consider how to build a larger consumer base. 

Technology and ASEAN’s Role 

On the technology front, Liew said ASEAN will likely remain in the middle of the global supply chain in the coming decade. 

“We have to accept that in the years to come, ASEAN technology is unlikely to surpass that of the US, China, Japan or South Korea. But we are in the middle,” he said. 

Still, he emphasised that ASEAN nations play an indispensable role. 

“When you think about it, if you combine the semiconductor supply chains of Malaysia, Singapore and Vietnam, not many other regions have that level of technology outside China, Europe and the US. So, it is essential. It is essential — but it’s also acceptable that we are not at the top,” he said.

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• This article first appeared in The Malaysian Reserve weekly print edition

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THE dynamic business relationship between Malaysia and China is set to maintain its strong momentum, with the Malaysia-China Chamber of Commerce (MCCC) playing a key role. 

The MCCC has officially confirmed its newly elected Central Committee, along with the Young Entrepreneurs Committee and the Women Entrepreneurs Committee. 

“They will shoulder the vital mission of guiding Malaysia-China business exchanges and fostering the development of bilateral corporate cooperation over the next three years,” said MCCC president Loo Kok Seong at a gathering of some 500 members and entrepreneurs in Putrajaya last week. 

Also present at the event were Transport Minister Anthony Loke and Minister Zheng Xuefang from the Chinese Embassy. 

In August, for instance, the MCCC led a delegation to the 15th Malaysia-China Entrepreneurs Conference and the third Asian Women Entrepreneurs Summit held in Guiyang, China. 

The events were co-hosted by the MCCC and the China Council for the Promotion of International Trade (CCPIT) Guizhou. Previous conferences have been held in Xiamen, Chengdu, Nanjing, Fuzhou and Haikou. 

Over the past few decades, Malaysia-China bilateral trade and investment have continued to deepen. In the early months of 2025, Malaysia’s trade with China maintained its strong performance: From January to April 2025, bilateral trade volume reached RM161.98 billion, with China remaining Malaysia’s largest trading partner. 

“Behind these figures lies the result of comprehensive, deepening cooperation between the business communities of both countries — and the MCCC is one of the key driving forces behind this success,” said Loo. 

One of the notable developments is the growing presence of young and women entrepreneurs. 

In the new era of economic structural transformation, Loo noted that young and women entrepreneurs are the most dynamic groups, capable of embracing innovation and taking calculated risks. “I believe the MCCC’s Young Entrepreneurs Committee and Women Entrepreneurs Committee will provide broader platforms, resources, and training opportunities for young and female entrepreneurs in Malaysia,” he said.

Loo added that, as Malaysia holds a strategic hub position in South-East Asia, the chamber should encourage members to expand their businesses into other ASEAN countries while leveraging collaborative advantages with Chinese enterprises in Belt and Road Initiative (BRI) countries to achieve what he called “overseas expansion and collaboration”. 

In areas such as green energy, the digital economy, artificial intelligence (AI), smart transport and sustainable infrastructure, Loo said MCCC members should be encouraged to actively engage with China’s advanced technologies and supporting ecosystems to create an emerging industrial cooperation hub. 

MCCC secretary general Kevin Siah said that within the broader framework of ASEAN-China and Gulf Cooperation Council (GCC) cooperation, the chamber can play an important role in bridging regional business communities by capitalising on Malaysia’s unique logistical position. 

Founded in 1990, the MCCC has nine state branches — in Melaka, Perak, Johor, Penang, Terengganu, Sabah, Sarawak, Kelantan and Pahang — and over 2,000 corporate members covering industries such as trade, manufacturing, finance, agriculture, real estate, tourism, education, consulting and services. — TMR

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• This article first appeared in The Malaysian Reserve weekly print edition

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KUALA LUMPUR — More than 13.1 million people, or nearly 80 per cent of the 16.5 million eligible Malaysians, have benefited from the BUDI MADANI RON95 (BUDI95) initiative implemented in September, with sales reaching RM2.66 billion or 1.33 billion litres up to Oct 31.

Deputy Finance Minister Lim Hui Ying said the BUDI95 implementation was smooth during the first month with the system operating well without a hitch and consumers not having to wait in long queues at petrol stations.

“The government will make continuous improvements to ensure the RON95 subsidy system is implemented in a more comprehensive, inclusive and effective manner. 

“For example, the government has added river boat operators into the database of those eligible for the RON95 subsidy, and e-hailing drivers are given additional quota.

“This move is important to ensure that no group is left out from getting the subsidy benefits while maintaining the main objective of channeling assistance more accurately to those who really need it,” she said during the question-and-answer session in the Dewan Rakyat here today.

Lim was answering questions from Chong Zhemin (PH-Kampar) on the status of the targeted RON95 petrol subsidy implementation and how the government ensures that only the low to middle-income groups benefit. — BERNAMA

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MALAYSIA and Asean leaders concluded the 19th Asean Defence Ministers’ Meeting (ADMM) and 12th ADMM-Plus in Kuala Lumpur with the adoption of a record 20 defence initiatives.

The Kuala Lumpur Joint Declaration on Asean Unity for Security and Prosperity reaffirmed ministers’ commitment to peace, stability and a rules-based regional order.

Defence Minister Datuk Seri Mohamed Khaled Nordin, who chaired both meetings, said the declaration would guide the region’s future security priorities.

“This proves that ADMM is not merely a formal forum, but also a dynamic platform driven by common goals and unity of purpose,” Khaled said, according to New Straits Times.

The declaration pledged to uphold freedom of navigation in the South China Sea and to prevent actions that could raise tensions. Among the initiatives endorsed were the Concept Paper on the Empowerment of Asean Defence Industrial Cooperation, the Asean Defence Search and Rescue Exercise, and the Concept Paper on Critical Under-Sea Infrastructure Security.

Following the conclusion of the two meetings, ASEAN secretary general Dr Kao Kim Hourn joined the defence ministers from ASEAN member states and dialogue partners countries in a gala dinner hosted by Malaysia. — TMR

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MALAYSIA’S efforts to improve its standing on global governance rankings are beginning to show results, with early reforms under the Special Task Force on the Corruption Perception Index (CPI) already producing measurable progress.

Chaired by Chief Secretary Tan Sri Shamsul Azri Abu Bakar, the task force was established in late 2024 as part of a whole-of-government effort to strengthen integrity and public accountability.

The initiative aims to position Malaysia among the top 25 countries in Transparency International’s CPI by 2030, in line with the 13th Malaysia Plan.

The task force includes secretaries-general from key ministries, agency heads from the Malaysian Anti-Corruption Commission (MACC), and representatives from Bursa Malaysia, Transparency International–Malaysia, academia and civil society, reports, New Straits Times.

It has formed six focus groups to address enforcement, public fund management, business competitiveness, investment, legal reforms and strategic communication.

The group combines short-term “quick-win” measures with long-term structural reforms to improve accountability and public confidence in government institutions, the report added.

The report added that the government introduced the Public Administration Efficiency Commitment Act (Iltizam) to cut red tape, abolish outdated procedures and simplify complex standard operating procedures.

The task force is also supporting ongoing legal reforms. Parliament this year passed amendments to the Whistleblower Protection Act 2010, broadening legal safeguards for individuals reporting misconduct.

The proposed Freedom of Information Bill and Ombudsman Bill are expected to further improve openness in the public sector.

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MALAYSIA must ensure that value creation from its rare earth element (REE) sector remains within the country following the inclusion of critical minerals in the Malaysia–United States Reciprocal Trade Agreement (ART).

A lecturer from Kuching-based of iCATS University College said clear policy direction and strict monitoring are essential to maximise domestic economic benefits.

“Malaysia cannot remain just a raw material exporter. We must build local technological capacity and skilled talent for this policy to be effective,” Associate Professor Dr Abu Sofian Yaacob told Utusan Malaysia. “The government’s decision to maintain the ban on raw REE exports is prudent and long-term in focus.”

He said the policy could attract more investment in domestic processing facilities and research activities.

He added that the cooperation also reflects major power competition to secure global REE supplies, placing Malaysia in a regional position of importance.

“Foreign investment in rare earth processing is expected to rise under this agreement, opening downstream opportunities such as high-technology manufacturing,” he said.

He said Malaysia’s exports to the US are likely to grow, particularly for high-value products using locally sourced rare earth components.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said last week that Malaysia will maintain its REE export ban to support the development of local downstream industries.

He said the government encourages foreign investment and technology partnerships in raw REE mining to build a more integrated domestic supply chain.

UniKL Business School economist Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the trade pact must also be seen within the context of the ongoing US–China trade war.

“China’s decision to halt exports of these commodities has affected the US industrial and defence sectors, which rely on rare earth materials for electronics, renewable energy, defence and medical technologies,” he said.

Aimi Zulhazmi said Malaysia could emerge as an alternative supplier to China due to its undeveloped REE potential, although environmental concerns remain a constraint.

“Malaysia’s REE industry remains tightly regulated due to its environmental impact, as seen in the case of Lynas Rare Earths Ltd in Pahang,” he said.

He added that any US involvement would require significant investment while ensuring stronger environmental safeguards.

“This may not be as straightforward as existing Chinese production. The ART agreement may also serve as part of the US strategy in its trade negotiations with China,” he said.

Analysts said Malaysia’s rare earth strategy will depend on balancing growth opportunities with environmental safeguards while retaining long-term value within the domestic economy.

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