03/07/2025

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THURSDAY | JULY 3, 2025

Diversification ensures M’sian economy resilient

KUALA LUMPUR: India is keen to deepen its already robust business linkages with Malaysia in the fast-growing semiconductor industry and digital economy. Indian High Commissioner to Malaysia BN Reddy said Malaysia has long been recognised as a leader in the semiconductor sector. Besides this, Malaysia has expressed keen interest in partnering with India in the semi conductor sector. “We welcome more Malaysian companies to collaborate with Indian firms through joint ventures,” he told Bernama after appearing on Bernama TV’s The Nation programme on “Malaysia-India Relations: Then, Now, Next”. Reddy said the potential for bilateral partnership was promising, given India’s increasing focus on semiconductors through its India Semiconductor Mission (ISM), which aims to develop a domestic chip and display manu facturing ecosystem. The mission targets chip production in the 28-nanometre to 90-nanometre range. “It will be a significant development, as over 60% of the industry falls within this range under the ISM. We aim to triple our semiconductor market size to US$109 billion (RM460.6 billion) by 2030, up from US$38 billion in 2023,” he said. India has approved six major semiconductor manufacturing facilities under the initiative. Reddy also said trade between India and Malaysia had continued to strengthen despite global economic headwinds and geopolitical uncertainties, reaching about US$20 billion in 2024. In June 2024, India exported goods worth US$765 million to Malaysia and imported US$1.23 billion. India’s exports to Malaysia surged by 93.9% compared to the same month last year, while imports grew by 14.5%. He said the ongoing review of the Asean India Trade in Goods Agreement (Aitiga), which began in 2023 and is expected to conclude by year-end, is set to enhance regional trade and investment, particularly in the digital economy. “One of the key objectives is to make trade more effective, user-friendly and simpler for businesses,” he said, adding that recent talks in Kuala Lumpur between an Indian delegation and Malaysia, in its role as Asean coordinator, marked significant progress. India has been a full dialogue partner of Asean since December 1995, with the part nership elevated to summit level in 2002. Reddy acknowledged several challenges to two-way trade, including persistent asymmetries in market access and issues surrounding rules of origin, which need to be addressed through the Aitiga review. “We need to find solutions and align the agreement with evolving global trading practices.” He also highlighted the potential for cooperation in digital payments, expressing hope that India’s unified payments interface could soon be accepted in Malaysia and that both countries would develop interoperable QR code networks to enable seamless cross-border transactions. “This would greatly benefit users from both nations, including tourists, and improve digital connectivity between our economies,” he said. As India deepens its engagement with Asean, its expanding trade and technology ties with Malaysia are expected to play a key role in shaping regional economic integration, Reddy said. – Bernama India wants to boost tie-ups on semiconductors, digital economy

o Country remains on solid footing due to inclusive and long-term strategy, says Miti official

PUTRAJAYA: Malaysia remains on solid footing due to its inclusive and long-term

economic strategy despite geopolitical tensions in the Middle East raising concerns over the po tential closure of the Strait of Hormuz and dis ruptions to global energy supply. The Investment, Trade and Industry Ministry’s bilateral economic and trade relations division

director, Raveendran Nair ( pic ), said Malaysia’s consistent approach of diversifying into new markets has allowed the country to stay competitive and resilient against external pressures. “To be fair, we faced numerous major challenges – from the Asian financial crisis to the US financial crisis, and then the Covid-19 pandemic. “During Covid-19, we faced an unpre cedented and extraordinary situation. Yet, we managed to recover and move towards a progressive recovery trend in this post pandemic era,” he said at Universiti Kebangsaan Malaysia’s forum Bicara Persada – Iran-Israel War: Implications for Malaysia and the New World Order held here. Raveendran said challenges such as the retaliatory tariffs imposed by the United States do not pose a significant threat to Malaysia’s economy because the impact is also felt by other countries. “There are concerns that these tariffs could shrink our economy. But from a broader perspective, Malaysia is not the only one affected. In Southeast Asia, for example, Singapore faces a 10% tariff, the Philippines is second, and Malaysia faces a 24% rate. Compared to other neighbouring countries in the region, some face tariffs as high as 30% to 40%. So in terms of competitiveness, Malaysia

Malaysia is actively signing free trade agreements in order to open up opportunities for exports. – BERNAMAPIC

tunities for exports. “For instance, we recently signed the Malaysia-European Free Trade Association agreement, which involves Iceland, Liech tenstein, Norway and Switzerland. We have also resumed FTA negotiations with the European Union and Gulf countries. Overall, we have 18 FTAs with various nations,” he said. On tensions in the Strait of Hormuz, Raveendran said the situation could potentially impact the global energy supply chain but Malaysia remains focused on strengthening its economic resilience through diverse trade networks and strong internal preparedness. He also said no country can survive on its own without a stable supply network in an interconnected global economic landscape. – Bernama

still has an edge,” he said. Raveendran noted that Malaysia’s trade with the US accounts for only about 13% (of its total trade), with the rest involving a variety of global markets. “Our strategy is not to depend on a single country. That’s why we continue to diversify our markets. As seen recently, Prime Minister (Datuk Seri Anwar Ibrahim) has frequently travelled abroad with Miti to conduct business programmes, meet local industry leaders, and identify potential investors to bring into Malaysia. “This strategy ensures we are not reliant on just one country. If one country’s economy declines, we still have other alternatives,” he said. As part of the effort to strengthen trade connectivity, Malaysia is actively signing free trade agreements (FTA) to open up oppor

Prasarana unveils digital platform to help vendors adopt ESG practices PETALING JAYA: Prasarana Malaysia Bhd has launched digital platform Vendor ESG Hub to help nearly 5,000 registered vendors, including SMEs, enhance their capacity to implement sustainable business practices. “The digital platform is divided into four main segments – ‘Assess, Inspire, Learn and Do’ – which are designed to enhance vendors’ capabilities and readiness to meet the demands of more sustainable future business practices,” he said at a press conference after the launch of the platform here yesterday. related education and awareness programmes. He said that in addition to over 3,000 local SME vendors, international vendors from Europe and Asia, including China and Japan, were also involved. “We will work with them and learn how to upgrade and this will apply to all vendors, whether international or local,” he said.

Prasarana group president and CEO Mohd Azharuddin Mat Sah said the initiative was a strategic move to strengthen the vendor ecosystem in Prasarana’s supply chain to ensure compliance with global ESG (environmental, social and governance) principles. “The Vendor ESG Hub portal offers a range of practical resources, guides and digital tools specifically designed to help vendors under stand, assess and progressively implement ESG practices.

The platform was launched in conjunction with the Health, Safety, Security, Environment and Sustainable Development Week 2025, underscoring Prasarana’s continued commit ment to supporting ESG initiatives. Mohd Azharuddin said the implementation of the platform would be carried out in phases, with the first phase involving 30 to 50 companies identified to take part in the ESG

Mohd Azharuddin also said that one of the long-term goals of the programme was to reduce carbon emissions in vendor operations. “One of the key priorities now is reducing carbon emissions. ESG is a broad concept, but one of the actions we can take is to educate vendors on how to reduce emissions in their daily operations,” he added. – Bernama