19/06/2025

BIZ & FINANCE THURSDAY | JUNE 19, 2025

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Iskandar Regional Development Authority (IRDA) chief executive Datuk Mohd Noorazam Osman said recent investment enquiries received by the Invest Malaysia Facilitation Centre Johor reflect strong interest from these key markets, underscoring Johor’s emergence as a promising regional growth hub. “This is a very positive outlook not only for Johor, but also for Malaysia as a whole. Amid ongoing global volatility, investors are looking to Asean as a promising entry point into new regional markets,” he said when met after speaking as a panellist at the Nikkei Forum Medini 2025: Driving Asia’s Innovation Hub held here yesterday. On key investment sectors, Mohd Noorazam said Japanese investors are particularly drawn to electrical and electronics, financial services, technology, and the digital economy. Asked about confirmed Japanese investments, he noted that while specific names could not yet be disclosed, several companies had requested meetings with Johor Menteri Besar Datuk Onn Hafiz Ghazi, a clear indication of their strong interest. Kuka Robotics set to boost automation with opening of Penang branch BATU KAWAN: Kuka Robot Automation (M) Sdn Bhd (Kuka Robotics Malaysia) reinforces its commitment to advancing industrial automation and robotics innovation in Malaysia and Southeast Asia with the launch of its new branch in Penang here yesterday. Kuka Robotics Malaysia is a subsidiary of global automation company Kuka Robotics (Kuka), which is based in Germany. Kuka Asia Pacific excluding China (APeC) chief regional officer Alan Fam said the company’s expansion to Penang, following the launch of its office in Kuala Lumpur last year, aims to support northern Malaysia’s growing role as a hub for high-tech and smart manufacturing. Fam said the company is confident of its prospects in Penang, considering the state’s vibrant manufacturing activities. “In the first quarter this year, Malaysia recorded close to RM90 billion in approved investments, and Penang was ranked the top five states with the highest approved investments. “That is why at the opening, we have a few of our robots doing demonstrations of their capabilities so that potential customers can understand how our products can help them to raise efficiency and automate operations,” he told a press conference after the launch of Kuka Robotics Malaysia’s new office here. Fam added that the three-storey office would house its sales and service operations, and there is a possibility for expansion, considering Penang is a key growth driver for the company’s operations. In conjunction with the opening, Kuka signed a memorandum of understanding with the Penang Skills Development Centre to collaborate on robotics training and workforce development. – Bernama

C-Suite misalignment slows GenAI adoption

KUALA LUMPUR: NTT Data, a global leader in digital business and technology services, yesterday launched its new report The AI Security Balancing Act: From Risk to Innovation , highlighting the opportunities and risks AI presents in cybersecurity. The findings show a misalignment among C-Suite leaders when it comes to business goals and operational readiness for GenAI deployment. The report, which includes data from an NTT Data survey of more than 2,300 senior GenAI decision makers, comprising 1,500 C-Suite leaders across 34 countries, found that while CEOs and business leaders are committed to GenAI adoption, CISOs (chief information security officers) and operational leaders lack the necessary guidance, clarity and resources to fully address security risks and infrastructure challenges associated with deployment. Nearly all (99%) C-Suite executives are planning further GenAI investments over the next two years, with 67% of CEOs planning significant commitments. In parallel, 95% of CIOs (chief information officers) and CTOs (chief technology officers) report that GenAI has already driven, or will drive, greater cybersecurity investments, with organisations ranking improved security as one of

technology partners is end-to-end GenAI service offerings. “As organisations accelerate GenAI adoption, cybersecurity must be embedded from the outset to reinforce resilience. While CEOs champion innovation, ensuring seamless collaboration between cybersecurity and business strategy is critical to mitigating emerging risks,” said Sheetal Mehta, senior vice-president and global head of cybersecurity at NTT Data Inc. “A secure and scalable approach to GenAI requires proactive alignment, modern infrastructure and trusted co-innovation to protect enterprises from emerging threats while unlocking AI’s full potential.” “Collaboration is highly valued by line-of-business leaders in their relationships with CISOs. “However, disconnects remain, with gaps between the organisation’s desired risk posture and its current cybersecurity capabilities,” said Craig Robinson, research vice-president, security services at IDC. “While the use of GenAI clearly provides benefits to the enterprise, CISOs and Global Risk and Compliance leaders struggle to communicate the need for proper governance and guardrails, making alignment with business leaders essential for implementation.”

o NTT Data report says operational leaders lack guidance, clarity and resources to fully address deployment challenges

decision makers on GenAI, 69% acknowledge that their teams lack the necessary skills to work with the technology. In addition, only 38% of CISOs say their GenAI and cybersecurity strategies are aligned compared to 51% of CEOs. Adding to the complexity, 72% of organisations surveyed still lack a formal GenAI usage policy and just 24% of CISOs strongly agree that their organisation has a robust framework for balancing risk with value creation. Beyond internal misalignment, 88% of security leaders said legacy infrastructure is greatly affecting business agility and GenAI readiness, with modernising IoT, 5G and edge computing identified as essential for future progress. To navigate these obstacles, 64% of CISOs are prioritising co-innovation with strategic IT partners rather than relying on standalone AI solutions. Notably, security leaders top criteria when assessing GenAI

the top three business benefits realised from GenAI deployment in the last 12 months. Yet, even with this optimism, there is a notable disconnect between strategic ambitions and operational execution with nearly half of CISOs (45%) expressing negative sentiments toward GenAI adoption. More than half (54%) of CISOs say internal guidelines or policies on GenAI responsibility are unclear, yet only 20% of CEOs share the same concern – revealing a stark gap in executive alignment. Despite feeling cautious about the deployment of GenAI, security teams still acknowledge its business value. In fact, 81% of senior IT security leaders with negative sentiments still agree GenAI will boost efficiency and impact the bottom-line. NTT Data’s research further reveals a critical gap between leadership’s vision and the capabilities of their teams. While 97% of CISOs identify as

JS-SEZ draws global investor interest as Johor emerges as Asean gateway JOHOR BAHRU: The Johor-Singapore Special Economic Zone (JS-SEZ) is drawing increasing interest from international investors, particularly from Japan, South Korea, China, and Europe, as Johor positions itself as a strategic gateway to the Asean market. “We have also received enquiries from Japanese banks acting on behalf of their clients. We are facilitating engagements, particularly with institutions such as Mizuho Bank and Sumitomo Mitsui Banking Corporation, with whom the Economy Ministry recently signed a letter of intent,” he added.

Meanwhile, Iskandar Investment Bhd (IIB) president and CEO Datuk Idzham Mohd Hashim said Medini is fully equipped to welcome new investors, supported by comprehensive infrastructure and a business-friendly ecosystem. He said the “plug and play” development model implemented in Medini enables investors to begin operations immediately, without delays. “The land is ready, and essential utilities, including electricity, water, fibre optics, and cabling, are already in place. Instead of starting from scratch, investors can establish operations in Medini, which already hosts nearly 40 international companies. “These businesses are thriving, and it’s now a matter of scaling up. At IIB, we see ourselves as growth partners, committed to helping businesses succeed in Medini,” he said. Idzham also emphasised Medini’s high quality of life, supported by amenities such as pocket parks, Sireh Park, golf courses, Legoland, and the revitalised Johor Zoo, all catering to diverse lifestyles and income groups. Commenting on global uncertainties

(From left) Moderator Koori Takahashi, Idzham and Noorazam at the panel discussion. – BERNAMAPIC

government agencies, and enabling businesses to access markets. “That’s the ecosystem we’re building, not just buildings and roads, but the support systems businesses need to thrive.” The two-day Nikkei Forum Medini 2025 forms part of broader efforts to position Johor as a regional innovation hub, supporting the JS-SEZ initiative to attract high-quality investments and integrate value chains between Malaysia and Singapore. – Bernama

for about 50 to 60% of Southeast Asia’s 650 million population,” he said. He also highlighted the natural geographic advantages of Johor and Singapore as investment destinations, further bolstered by political stability and the absence of natural disasters. On IIB’s development strategy, he stressed that focus is not solely on physical infrastructure but also soft infrastructure. “Soft infrastructure includes talent development, facilitation by

and Singapore’s recent downward revision of its gross domestic product growth forecast to 0.2%, he acknowledged that some investors are adopting a wait-and-see approach due to geopolitical tensions. “There may be short-term corrections, such as what Singapore is experiencing, but we believe these are temporary. Asean remains one of the world’s fastest-growing regions, with a youthful and expanding middle class. Young people account