Economy

By SHAHRIN AIZAT NOORSHAHRIZAM

MALAYSIA should no longer position itself as a low-cost producer and must instead accelerate its shift towards higher value-added exports to remain competitive amid a stronger ringgit. Deputy Minister of Investment, Trade and Industry Sim Tze Zin said while certain “Made in Malaysia” goods may face challenges from currency appreciation, exporters can mitigate the impact by moving up the value chain through improved product quality, branding and packaging. 

Speaking at the post-announcement ceremony of Malaysia’s 2025 trade performance, Sim also said higher value-added products are less sensitive to exchange rate movements as they generate better margins.

“The ringgit, at just under RM4 to the US dollar, remains manageable,” Sim said, adding that Malaysia has previously operated at much stronger exchange rates. 

Sim said one of the key drivers behind the currency’s recent strength is Malaysia’s sustained trade surplus, which has boosted foreign reserves by allowing the country to sell more than it imports.

He added that Malaysia continues to benefit from the presence of multinational corporations, including American-origin firms, that have established production bases in the country. 

As a result, “Made in Malaysia” goods increasingly form part of mid- to high-value global supply chains, contributing to long-term national wealth creation.

Sim noted that a significant portion of Malaysia’s exports consists of intermediary goods, citing examples such as electronic components manufactured locally that are later assembled into finished products overseas. 

This reflects the widening of Malaysia’s export journey and deeper integration into global manufacturing networks.

Sim also pointed to Malaysia’s strong diplomatic and trade engagement in recent years, which has supported record trade performance. 

He noted that the Prime Minister’s proactive international engagement has helped position Malaysia favourably on the global stage and strengthened its role as a trusted trading partner.

Looking ahead, Sim said Malaysia hopes to sustain trade growth and continue expanding its global footprint. 

While maintaining current trade levels would already be a positive outcome, he added that the government remains focused on achieving greater recognition and further expansion in global markets.

The post Malaysia must move beyond low-cost model as exporters adapt to stronger ringgit appeared first on The Malaysian Reserve.

By SHAHRIN AIZAT NOORSHAHRIZAM

MALAYSIA is targeting export growth of between 3% and 5% in 2026, guided by World Trade Organization (WTO) forecasts and supported by solid economic fundamentals. 

Malaysia External Trade Development Corporation (Matrade ) chairman Datuk Seri Reezal Merican said the target follows a stronger-than-expected export performance in 2025, when Malaysia significantly exceeded its initial growth target of 5%, emphasising the importance of realistic projections that take into account global economic uncertainties and sector-specific risks.

Reezal attributed Malaysia’s strong trade performance in 2025 to strategic diversification, not only across markets but also in approach and positioning. 

He also said as global companies reassessed supply chains and sought more stable production hubs, Malaysia stepped up its role as a reliable and scalable partner in the global trade ecosystem.

He said the electrical and electronics (E&E) and semiconductor sectors were among the key contributors, reinforcing Malaysia’s position as a critical link in the global innovation and manufacturing value chain. 

Rather than merely riding cyclical demand, Reezal said these industries strengthened Malaysia’s long-term relevance to multinational corporations, which continue to expand their presence in the country.

“Another major driver was our Free Trade Agreements (FTAs). FTAs are not just paperwork, they are powertools. They reduce friction, open doors, and turn local capabilities into greater global access. 

“FTAs don’t just unlock markets, they unlock the momentum of growth. In 2025, trade with FTA partners surpassed RM2 trillion, making up 65.5% of Malaysia’s total trade,” he said at a briefing on Jan 27..

In 2025, Malaysia’s trade with FTA partners surpassed RM2 trillion, accounting for 65.5% of the country’s total trade, reflecting the growing importance of preferential trade arrangements in supporting export expansion.

Looking ahead, Reezal said Malaysia’s export outlook remains exposed to risks such as raw material shortages and potential oversupply in key sectors, particularly E&E, which could exert pressure on prices and margins. As such, close engagement with exporters remains a core focus for Matrade .

He said the agency continues to identify export-ready companies, facilitate firms that require further preparation, and keep exporters informed of global developments that could affect trade flows. These include disruptions to major shipping routes such as the Red Sea, which have resulted in higher insurance and logistics costs.

“With proper preparation, decisive actions and a strong focus on strategic diversification, we believe Malaysia will remain competitive in the global market,” Reezal said.

The post Malaysia targets 3–5% export growth in 2026 amid global risks appeared first on The Malaysian Reserve.

By SHAHRIN AIZAT NOORSHAHRIZAM

MALAYSIA is targeting export growth of between 3% and 5% in 2026, guided by World Trade Organization (WTO) forecasts and supported by solid economic fundamentals. 

Malaysia External Trade Development Corporation (Matrade ) chairman Datuk Seri Reezal Merican said the target follows a stronger-than-expected export performance in 2025, when Malaysia significantly exceeded its initial growth target of 5%, emphasising the importance of realistic projections that take into account global economic uncertainties and sector-specific risks.

Reezal attributed Malaysia’s strong trade performance in 2025 to strategic diversification, not only across markets but also in approach and positioning. 

He also said as global companies reassessed supply chains and sought more stable production hubs, Malaysia stepped up its role as a reliable and scalable partner in the global trade ecosystem.

He said the electrical and electronics (E&E) and semiconductor sectors were among the key contributors, reinforcing Malaysia’s position as a critical link in the global innovation and manufacturing value chain. 

Rather than merely riding cyclical demand, Reezal said these industries strengthened Malaysia’s long-term relevance to multinational corporations, which continue to expand their presence in the country.

“Another major driver was our Free Trade Agreements (FTAs). FTAs are not just paperwork, they are powertools. They reduce friction, open doors, and turn local capabilities into greater global access. 

“FTAs don’t just unlock markets, they unlock the momentum of growth. In 2025, trade with FTA partners surpassed RM2 trillion, making up 65.5% of Malaysia’s total trade,” he said at a briefing on Jan 27..

In 2025, Malaysia’s trade with FTA partners surpassed RM2 trillion, accounting for 65.5% of the country’s total trade, reflecting the growing importance of preferential trade arrangements in supporting export expansion.

Looking ahead, Reezal said Malaysia’s export outlook remains exposed to risks such as raw material shortages and potential oversupply in key sectors, particularly E&E, which could exert pressure on prices and margins. As such, close engagement with exporters remains a core focus for Matrade .

He said the agency continues to identify export-ready companies, facilitate firms that require further preparation, and keep exporters informed of global developments that could affect trade flows. These include disruptions to major shipping routes such as the Red Sea, which have resulted in higher insurance and logistics costs.

“With proper preparation, decisive actions and a strong focus on strategic diversification, we believe Malaysia will remain competitive in the global market,” Reezal said.

The post Malaysia targets 3–5% export growth in 2026 amid global risks appeared first on The Malaysian Reserve.

Climate-health planning cannot be treated as a single-risk problem because exposure and vulnerability vary between communities

by AKMAR ANNUAR

SELANGOR is leaning harder on prevention and community-level action as climate-related health risks show up differently across districts, with dengue control, peatland management and local adaptation planning becoming early pressure valves for the state’s health system.

Selangor Environment and Public Health exco member Jamaliah Jamaluddin said climate-health planning cannot be treated as a single-risk problem because exposure and vulnerability vary between communities.

Dengue as Long-running Concern

“It is difficult to pinpoint a particular climate-related health risk as different communities are vulnerable to different risks,” she told The Malaysian Reserve (TMR) after the Malaysia launch of the Lancet Countdown 2025 Report on Health and Climate Change recently.

She said dengue remains a long-running concern that could worsen as temperatures rise and rainfall patterns shift, because warmer and wetter conditions expand mosquito breeding environments and increase transmission risk.

“In Selangor, we have seen a decrease of 61% in the number of dengue cases in 2025 compared to 2024,” she added.

Jamaliah said the decline came from strategic cooperation between government agencies, NGOs and the community, as the state prioritised awareness, prevention and local action to reduce the strain on public services.

She pointed to peatland governance as another climate-health lever, saying Selangor has reduced the risk of haze-linked illness by strengthening forest and fire management through an Integrated Management Plan for Peatland Forest for North and South Selangor.

The Lancet Countdown report warned that climate-linked hazards are already translating into measurable public health harm and economic loss rather than distant projections.

The report estimates that more than 22,500 deaths in Malaysia in 2022 were attributable to anthropogenic air pollution, with 61% linked to fossil fuel use.

It also estimates the economic cost of these premature deaths at US$21 billion (RM85.05 billion), equivalent to 5% of Malaysia’s GDP.

The Malaysia launch was hosted by Monash University Malaysia through the Regional Hub for Asia Climate Change and Health (Reach), in collaboration with Universiti Malaysia Terengganu (UMT), the Commonwealth Medical Association (CMA) and the Selangor Climate Adaptation Centre (SCAC).

The event at Monash University Malaysia’s Plenary Theatre brought together public health, policy and research voices to connect global evidence with Malaysia’s policy priorities.

Also present were Monash University Malaysia president and pro vice-chancellor (VC) Prof Emeritus Datuk Dr Adeeba Kamarulzaman UMT VC Prof Ts Dr Mohd Zamri Ibrahim; Lancet Countdown ED Dr Marina Romanello; and UMT professor and Lancet Countdown lead collaborator Prof Dr Meisam Tabatabaei.

“Climate change action offers a lifeline,” Tabatabaei said.

Jamaliah says the restructuring of the Selangor Climate Action Council reflects the state’s intent to treat climate risk as a whole-of-govt issue

Do No Harm

A forum on “Setting the Just Transition Agenda and Climate Resilience for Public Health: From Global Framework to National Policy” followed.

The panel line-up included United Nations (UN) University Institute for Global Health director Dr Revati Phalkey and Lancet Countdown policy document co-author Prof Dr Maziar Moradi-Lakeh.

The speakers featured CMA president Prof Dr JA Jayalal, Reach Hub for Asia director Prof Dr Tin Tin Su and Health Ministry Disease Control Division deputy director (Non-Communicable Disease) Dr Thahirahtul Asma’ Zakaria.

Su noted that a just transition will only be meaningful if it reduces health risks for vulnerable people.

“Through Reach, we are working to apply global and regional climate-health evidence into locally relevant data and solutions so that our findings can inform Malaysia’s policies to protect those who are most exposed, not just those who are easiest to reach,” she said.

She added that equity-centred climate and health co-benefit would be a way forward.

Meanwhile, Dr Jayalal tied the climate agenda to healthcare’s core professional values and responsibilities.

“Doctors pledge to do no harm. The entire healthcare sector should do the same by battling climate change,” he said.

He outlined mitigation strategies in hospitals, including energy efficiency, renewables, sustainable procurement, waste reduction and supply chain decarbonisation, framing them as practical pathways rather than aspirational pledges.

The health system’s role was further developed through a Malaysia-focused policy presentation by Dr Thahirahtul Asma’, who mapped climate threats onto practical preparedness and service delivery needs.

She grouped climate-related health impacts across infectious disease risks, respiratory burdens linked to haze and poor air quality and heat illness outcomes including heat cramps, heat exhaustion and heat stroke.

Dr Thahirahtul Asma’ placed Malaysia’s climate-health integration within broader national frameworks, including the Malaysia National Adaptation Plan (MyNAP), the National Policy on Climate Change 2.0 and health adaptation planning.

Her presentation also pointed to government-linked health system initiatives such as strengthening disease surveillance systems and enhancing emergency preparedness as part of climate-resilient health planning.

For healthcare facilities, she outlined a framework that included emissions reduction, low-carbon buildings and green technology applications, alongside skills development and public awareness efforts.

Dr Thahirahtul Asma’ also listed priorities such as climate risk and vulnerability assessment, competency of the health workforce, dedicated climate-health funding and promoting community health awareness.

At the global scale, the CMA’s presentation widened the lens to the ethics and responsibilities of healthcare systems, especially given the sector’s own emissions footprint and its influence over public behaviour.

The discussion returned repeatedly to the idea that climate action can produce near-term health gains, particularly in reducing air pollution and the disease burdens that follow.

Not Just Environmental Issue

Beyond the national policy debate, Jamaliah said the state has started to place climate impacts within the cost-of-living frame because household vulnerability rises when heat and floods collide with income stress, job insecurity and food access.

“The Selangor government is starting to look at climate change beyond just an environmental issue,” she shared with TMR.

She said Selangor has adopted a Selangor Climate Change Policy that spans 10 strategic sectors, while the SCAC serves as the focal point for coordinating implementation across agencies, local authorities and other stakeholders.

Jamaliah said the restructuring of the Selangor Climate Action Council, now chaired by Menteri Besar (MB) Datuk Seri Amirudin Shari, reflects the state’s intent to treat climate risk as a whole-of-government issue rather than a narrow environmental file.

She also pointed to food resilience and urban cooling as linked climate-health interventions, citing the rollout of community farms to support lower-income households with healthier access and local buffers.

“To date, the state government, through the local authorities, have established 328 community farms or ‘kebun komuniti’ across Selangor,” she said.

She said the initiative is intended to provide productive green spaces that can help cool neighbourhoods, support nutritious food acces, and strengthen community resilience through local organisation and interaction.

On preparedness, Jamaliah said each local authority is expected to prepare its own localised Climate Action Plan based on specific locality risks, demographics and socio-economic activity, with the SCAC supporting plan development and capacity building.

Additionally, she said climate-health preparedness should not sit solely with the government because businesses and communities can raise awareness and improve readiness through low-cost initiatives for employees and surrounding neighbourhoods.

Coordination gaps, however, remain a recurring barrier because climate risk cuts across portfolios and agencies, and compounded events can trigger cascading impacts that reach the healthcare system.

“At any level, federal, state or local level, availability of data and ability to understand these risks, is a gap that needs to be addressed,” Jamaliah added.

She said better coordination and communication are needed so that climate responses are no longer built in silos, and collaborative implementation becomes the default for policies and initiatives on the ground.

Climate-driven transmission potential of dengue has risen significantly since mid-20th century for both Aedes albopictus and Aedes aegypti (Source: Media Mulia)

Structural Risks

The report’s wider findings underscore why delivery matters, with global indicators showing heat exposure, food insecurity and air pollution accelerating in ways that tighten pressure on health systems and labour productivity.

It estimates heat-related deaths now average 546,000 a year globally, while 84% of heatwave days experienced between 2020 and 2024 would not have occurred without climate change.

It also estimates that 640 billion potential work hours were lost globally in 2024 due to heat exposure, disproportionately affecting low- and middle-income countries.

For infectious disease, the report flags that climate-driven transmission potential of dengue has risen significantly since the mid-20th century for both Aedes albopictus and Aedes aegypti.

On Malaysia’s energy profile, the launch materials highlighted that between 2016 and 2022, CO2 emissions from fossil fuel combustion rose 11% to exceed 240,000 kilotonnes.

They also noted that as of 2022, coal accounted for 47% of electricity generation, while renewable energy (RE) contributed less than 1% of total energy supply, raising the health stakes of delayed transition.

Jamaliah said budgeting and development planning will increasingly need to treat climate impacts as structural risks rather than episodic disasters, because long-term vulnerability mapping and adaptation pathways shape whether people and businesses can stay resilient.

With climate policy mainstreamed into planning, she added that early investment can shift towards risk reduction through adaptive measures, including nature-based interventions that reduce heat stress and flood exposure.

She said Selangor’s immediate activities planned under this year’s budget include community reforestation in suitable areas, tree planting in strategic spaces to reduce heat stress and river rehabilitation projects to reduce flood risk while restoring native vegetation and biodiversity.

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

The post Selangor flags climate change as public health emergency appeared first on The Malaysian Reserve.

MALAYSIA’S government plans to do a cost-benefit analysis of its controversial trade agreement with the US, while warning lawmakers they should keep the accord despite concerns it may hurt the country.

The review, pending the deal’s ratification, could take six to 12 months and will focus on the impact on Malaysia’s exports and trade surplus, according to Investment, Trade and Industry Minister Johari Abdul Ghani. He was speaking a day after US President Donald Trump vowed to hike tariffs on goods from South Korea to 25%, citing what he said was the failure of lawmakers in Seoul to codify their trade deal.

“Malaysia has not yet received any official notice or notification from the US regarding the timeline for ratifying ART,” Johari told parliament on Tuesday, referring to the trade agreement by its acronym. “Hence, the government is currently reviewing ART’s contents to ensure that the country’s economic interests are safeguarded and to reduce the risks to the country’s trade.”

However, terminating the deal altogether would spark economic uncertainty and instability, he added.

The trade agreement Prime Minister Anwar Ibrahim signed with Trump last year fueled concerns it could infringe upon Malaysia’s sovereignty. The trade ministry in November published an FAQ to address the worries, a month before Johari took over the portfolio.

Trump set a 19% tariff on Malaysia in August last year, in line with that imposed on most other Southeast Asian economies and lower than the 25% he earlier threatened. While gross domestic product expanded 4.9% last year, the government expects a slowdown to a range of 4%-4.5% this year amid heightened global volatility.

“Particular focus will be given to the impact of the country’s exports to the United States worth 233.1 billion ringgit ($59 billion) and its trade surplus worth 98.7 billion ringgit,” Johari said of the cost-benefit review. –BLOOMBERG

The post Malaysia to study US trade deal but warns against quitting pact appeared first on The Malaysian Reserve.

NEGERI Sembilan is emerging as a new hotspot for data centre (DC) developments, presenting growth opportunities for local construction companies, according to RHB Research.

The research house maintains an OVERWEIGHT rating on the construction sector, highlighting Gamuda Bhd, Kerjaya Prospek Group Bhd, and Sunway Construction Group Bhd as top picks.

Analysts cite field visits to Nilai Impian, where a DC-related project has made commendable progress, as evidence that the state could be a focus area alongside Cyberjaya and Johor.

“These and other similar observations indicate that Negeri Sembilan could be the next focus area for DC developments,” RHB noted.

Negeri Sembilan will see two DC projects, namely a green DC in Nilai, reportedly handled by Japan-based Kajima, and a AI technology DC in Springhill, Port Dickson, with enabling works underway on a 389-acre site managed by Gamuda.

Kajima was awarded a RM610 million contract in June 2025 for main building works on a DC, potentially corresponding to the Nilai project observed by RHB.

Springhill’s enabling works cost RM1 billion, with a full-scale water treatment plant of 65MLD planned to support the DC and surrounding residential areas.

Assuming the Nilai DC has a capacity of 30MW, it would require about 2.1 million litres of water per day (MLD). Negeri Sembilan’s 1,050MLD supply capacity with a 16.2% reserve margin is sufficient to meet this demand without strain.

The state is also expected to attract RM20 billion from Australia to develop an AI DC in the Negeri Sembilan Semiconductor Valley, with the first phase costing MYR10 billion, according to Chief Minister Datuk Seri Utama Aminuddin Harun (picture).

RHB noted potential challenges for contractors: heightened competition from foreign firms and unexpected slowdowns in DC investment flows.

Despite these risks, Negeri Sembilan’s growing DC ecosystem is expected to drive sustained opportunities for construction companies, particularly those experienced in large-scale industrial projects. — TMR

The post Negeri Sembilan set to drive construction growth via data centres appeared first on The Malaysian Reserve.

PUTRAJAYA — The median monthly wage of Malaysia’s 7.06 million formal employees increased to RM2,864 in September 2025, up 4.3 per cent from RM2,745 a year earlier, according to the Third Quarter 2025 Employee Wages Statistics (Formal Sector) Report released by the Department of Statistics Malaysia (DOSM) today.

DOSM in a statement today said the rise in wages was accompanied by steady employment growth, with the number of formal employees expanding 3.5 per cent year-on-year in July, August and September 2025, reflecting continued resilience in the formal labour market through the third quarter 2025.  

By sex, male employees who made up 55.1 per cent or 3.89 million of total formal workers, earned a higher median monthly wage of RM2,900 compared with RM2,800 for female employees who accounted for 44.9 per cent or 3.17 million persons.

Wage data by age group showed employees aged 45 to 49 continued to record the highest median monthly wage at RM3,800 across all three months of the third quarter. 

“The highest growth was recorded among employees aged below 20 years, with the median monthly wage reaching RM1,700 in September 2025, an increase of  13.3 per cent compared with the same period of the previous year,” the statement read. 

According to DOSM, all economic sectors posted higher median wages during the quarter.

It said that although representing just 0.6 per cent of formal employment, the mining and quarrying sector continued to record the highest median monthly wage at RM6,600, up by 11.9 per cent year-on-year, while the Agriculture sector, comprising 1.8 per cent of citizen formal employees, recorded the lowest median wage at RM2,245.

By state, DOSM said Kuala Lumpur recorded the highest median monthly wage at RM4,064, followed by Selangor at RM3,127 and Penang at RM2,927, while the lowest medians were recorded in Kelantan and Perlis at RM1,800 and in Sabah and Kedah at RM2,000.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin was quoted as saying that 8.8 per cent of formal employees earned below RM1,700 per month in September 2025, down by 13.5 percentage points from the previous year. 

“Furthermore, percentile analysis revealed that the bottom 10 per cent of Malaysian formal employees received monthly wages of RM1,700 or less, while employees in the 90th percentile earned at least RM9,000 per month.

“This disparity illustrates that employees in the 90th percentile earned five times more than those in the lowest wage group, underscoring the prevailing wage gap between the highest and lowest earners,” he said. — BERNAMA

The post DOSM: National median monthly wage of formal employees rises to RM2,864 in September 2025 appeared first on The Malaysian Reserve.

by NURNABIHAH DINI 

THE government is conducting a comprehensive cost-benefit analysis (CBA) on Malaysia’s Agreement on Reciprocal Trade (ART) with the US. 

Investment, Trade and Industry (MITI) Minister Datuk Seri Johari Abdul Ghani said a full CBA typically takes between six and 12 months to complete, noting that the ART differs from conventional trade agreements as it is unilateral in nature. 

He explained that negotiations with the US began after Washington imposed a high reciprocal tariff of 24% on Malaysian goods on April 2, 2025.

Johari said Malaysia was later informed in July 2025 of a possible increase in the tariff to 25%, before a series of negotiations led by MITI successfully reduced the tariff to 19% from Aug 1, 2025.

“Continued uncertainty over tariff rates could undermine investor confidence, potentially prompting foreign investors to relocate operations to countries with lower tariffs,” he told the Dewan Rakyat today.

Such a scenario, he said, would not only affect multinational companies operating in Malaysia but also local small and medium enterprises that supply goods and services to them, leading to job losses and reduced household incomes.

Johari added that MITI, together with its agencies including the Malaysia External Trade Development Corporation (Matrade) and the Malaysian Investment Development Authority (Mida), with support from MIDF Research, is carrying out the CBA with particular focus on Malaysia’s exports to the US, valued at RM233.1 billion, and the country’s trade surplus of RM98.7 billion with the US.

On whether the government could renegotiate or terminate the ART, Johari said Malaysia has yet to receive any official notification from the US on the timeline for ratifying the agreement. 

As such, the government is still reviewing the substance of the ART to ensure national economic interests are safeguarded and risks to trade are minimised.

He cautioned that terminating the agreement could create economic uncertainty, as the imposition of unilateral tariffs remains a prerogative of the US, potentially leading to a more unstable trade environment for Malaysia.

The post Malaysia conducting cost-benefit analysis on reciprocal trade agreement with US appeared first on The Malaysian Reserve.

KUALA LUMPUR — Malaysia had 42.2 million visitors in 2025, an 11.2 per cent increase compared to the 38 million in 2024 and 20.4 per cent higher compared to the 35 million in 2019, thus establishing a solid foundation for a successful Visit Malaysia 2026 (VM2026) campaign.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the positive performance reflected the continued momentum of the country’s tourism industry as the main driver of its economic growth.

To ensure this momentum can be maintained, he said the government will strengthen coordination across all ministries and agencies ahead of VM2026 implementation.

“The government is strengthening coordination across all ministries and agencies to ensure the tourism industry remains the main driver of the country’s economic growth,” he said.

Ahmad Zahid said this was decided at the Tourism and Culture Cabinet Committee (JKPK) Meeting, which involved various ministries, departments and main agencies in line with the whole-of-government approach. 

He said the meeting also emphasised the strategic importance of the tourism industry to national development, particularly in terms of its contribution to the Gross Domestic Product (GDP), creation of job opportunities and the strengthening of the country’s fiscal position.

“As such, the whole government machinery is urged to move in tandem and in an integrated manner to attract more international visitors, extend their stay and increase tourist spending in Malaysia,” he said.

Ahmad Zahid said that in conjunction with VM2026 as the key national agenda, the close cooperation of state governments, the private sector and industry players with the Ministry of Tourism, Arts and Culture (MOTAC), as the lead agency, is crucial to accelerating industrial development and increasing competitiveness.

“This strategic collaboration is vital to ensuring issues related to jurisdiction, regulation and enforcement can be effectively and promptly addressed,” he said.

He said the meeting also discussed several key policy issues that have direct implications on the tourism industry, including the Malaysia My Second Home (MM2H) Programme, the Premium Visa Programme (PVIP), the proposed takeover of tourism vehicle regulation, the status of the Umrah transit hub and the development of cruise ship tourism. 

“Overall, this meeting reflects the Federal Government’s ongoing commitment to strengthen cooperation among ministries, departments and agencies to ensure every tourism-related issue is comprehensively addressed.

“All parties remain committed to ensuring the success of the VM2026 campaign so that the stipulated targets and economic impact can be attained,” he said. — BERNAMA

The post Malaysia records 42.2m visitors in 2025, strengthens collaboration for VM2026 appeared first on The Malaysian Reserve.

KUCHING — Outgoing United States Ambassador to Malaysia Edgard D. Kagan has expressed confidence that Sarawak will continue to attract greater interest and investment from American companies following sustained efforts to promote the state as a viable business destination.

At a media engagement programme here today, he said that while US firms would ultimately make their own investment decisions, Sarawak was increasingly being recognised as a location with strong potential.

“I’ve told every American company with whom I engage, who are looking at Malaysia, that they should look at Sarawak. But I think that we’ve helped put Sarawak on the map for American businesses, working with our friends at the American Chambers of Commerce, at the US-ASEAN Business Council, and with the Malaysian government as well as the Sarawak state government.

“Over time, you’re going to see greater investment by American firms here,” said the ambassador, who will be leaving the country next month as his tenure comes to an end.

Kagan said at present, US business interest in Sarawak had been largely concentrated in the energy sector, alongside manufacturing activities such as the Western Digital plant in the electrical and electronics (E&E) industry.

He believed this focus would broaden as Sarawak’s economy continued to grow and diversify, and expected that a wider range of companies from the US would come in.

The ambassador also highlighted Sarawak’s strong potential in the energy sector, particularly in renewable energy, noting that opportunities extended beyond power generation to include energy transmission and management.

“It is noticeable that Sarawak’s energy capacity, along with its access to electricity and water, positions the state well to attract data centres.

“Beyond infrastructure, Sarawak’s greatest asset is its people and talent, which I believe will continue to make the state an attractive destination for foreign investment, including from American companies,” he added. — BERNAMA

The post US Ambassador Kagan: Sarawak ‘on the map’ for American businesses appeared first on The Malaysian Reserve.