01/08/2025

BIZ & FINANCE FRIDAY | AUG 1, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Ship fuelling supply services to hit RM19.4b by 2030

Green and blue economy initiatives key pillars in 13MP o Economists say success hinges on early mover advantages, structural reforms and SME participation, among others

KUALA LUMPUR: Under the 13th Malaysia Plan (13MP) which runs from 2026 to 2030, the blue economy will be strengthened with the marine fuel supply services industry to reach RM19.4 billion by 2030, up from RM14.5 billion in 2024. According to the Economic Ministry’s main document, a dedicated blue economy satellite account is expected to be fully developed by 2030, with the number of modern fishing vessels projected to rise to 45 from merely eight in 2024. The plan includes upgrading or building fishing vessel shipyards with construction, maintenance and repair facilities at 10 targeted locations. “Blue economy development will be managed sustainably to boost economic growth, improve societal well-being, and protect marine, coastal, and freshwater ecosystems for current and future generations,” the document said. The focus will be on growing key industries and preserving biodiversity. Strategic industries will include shipbuilding and repairs, logistics, fisheries and aquaculture, coastal/maritime tourism and blue renewable energy. Port infrastructure will be enhanced to support growth. The document said Port Klang’s capacity will be expanded with a third terminal on Carey Island and Westports 2 container terminal to adopt low carbon practices. Port capacities in Sabah and Sarawak will also be upgraded. Existing financial incentives will be improved, and sustainable financing mechanisms, including joint financing, will be explored. “The use of technology and innovation will also focus on ocean waste management, environ mental conservation and blue carbon initiatives,“ it said. Additionally, regional cooperation will be intensified in research and development, commercialisation and innovation, technology transfer, talent development, and expertise sharing. Blue economy hubs will be developed in high potential states like Kelantan, Perak, Sabah, and Terengganu to attract investment. Local expertise will be tapped to attract youth into high-income blue economy careers. To preserve biodiversity, enforcement of the Fisheries Act 1985 will be strengthened, especially in the South China Sea, to combat illegal, unreported and unregulated fishing. The Act will also be amended to address declining fishery resources. – Bernama

term monitoring, these initiatives could undermine Malaysia’s sustainability goals,” he said. He also called for stronger investment in talent development, saying Malaysia lacks skilled professionals in emerging green fields. “Integrating sustainability into higher education and building pathways for lifelong learning will be essential to ensure the workforce is ready for future green industries,” Pek said. In contrast, Williams Business Consultancy Sdn Bhd founder and director Professor Geoffrey Williams argued that technology and green growth are already unfolding organically and do not require heavy government intervention. “These are market-driven and government interference is unnecessary,” he said. “The most important features (of the 13MP) are the social and structural elements. The extension of the minimum wage will help raise incomes and the review of the retirement age will spur discussion and reform of pensions.” Williams said structural reforms, including improving wages, addressing the pension crisis, creating jobs to tackle underemployment and expanding healthcare access, are critical to ensuring sustainable growth. “There is some healthcare expenditure and some policy to address out-of-pocket expenses. This is a good focus of policy and one I had recommended,” he added. The 13MP charts Malaysia’s economic path from 2026 to 2030, aiming for high-income status through adoption of artificial intel ligence, high-growth high-value industries and sustainable growth. The plan outlines RM611 billion in total investments, combining government funding, government-linked company contributions and public-private partnerships. The success of green and blue economy initiatives hinges on early mover advantages, as noted by Ida and Pek and structural reforms in wages, pensions, healthcare and SME participation, as stressed by Williams. quality infrastructure and public facilities to support business, society and public needs,”the five-year strategy document said. Government support, such as financing, incentives and targeted programmes, will continue to be improved to ensure inclusivity and address economic disparities. Meanwhile, Malaysian companies are enhancing their capacity and competitiveness globally and are venturing into new high potential industries. “They actively collaborate with research institutions and investors to produce disruptive products and services that generate high value,” the report adds. Individuals and communities also play a vital role in creating an inclusive economy by participating actively in economic activities and supporting local businesses. Individuals are seen as future-ready human capital who strive to contribute their skills and energy across sectors. They are strategic thinkers who seek and create opportunities through entrepreneurship to generate value, income, and wealth. “Communities act as change agents, sharing responsibility in cultivating a culture of innovation and supporting local economic activity,” the report concludes. – Bernama

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

shipping capacity. “We are leveraging what we already have. In terms of shipping and ports, we are among the best in the region after Singapore. The next step is to create more value, such as ship maintenance and related maritime services,” she said. She also welcomed the government’s stated intent to involve small and medium enterprises more actively in these sectors. “In the past, big projects were dominated by large corporations or GLCs. The prime minister mentioned giving SMEs oppor tunities. With proper training and retraining, they can adapt and benefit from new industries,” she added. Assoc Prof Dr Pek Chuen Kee, who specialises in green economics, said the 13MP’s focus on high-growth high-value green sectors such as renewable energy, sustainable agriculture and green manufacturing could create new economic opportunities and reduce carbon emissions. He highlighted blue carbon projects, protecting mangroves and seagrass beds to capture carbon, as an area where Malaysia could lead regionally in nature-based climate solutions. “Blue carbon ecosystems play a vital role in carbon capture, enhancing biodiversity and creating opportunities for carbon credit markets,” he said. “This positions Malaysia as a leader in sustainable innovation while supporting global climate goals.” However, Pek warned that environmental safeguards must keep pace with ambitious plans. “Activities like rare earth mining pose significant threats to biodiversity and water systems. Without robust safeguards and long KUALA LUMPUR: Malaysia will continue to progress as a developed nation based on its definition and values, embracing a free market system, becoming a top global investment destination and leading the regional market by 2040. According to the 13th Malaysia Plan Report (2026–2030), themed “Redesigning Develop ment”, this success stems from a shift towards a more diverse economy that enables high-value product output across global value chains. “This transition also offers fair opportunities for skilled local talent to boost productivity with progressive wages,” the Economy Ministry said in the report. It added that Malaysia’s industries are recognised for producing advanced tech nologies developed through locally led research, development, commercialisation and innovation. The government plays a responsive and facilitative role in strengthening the economic ecosystem, enabling all economic agents to operate efficiently. It also sets clear, consistent, and strategic policies and directions to guide stakeholders in making aligned decisions towards national development goals. “The government is also responsible for ensuring comprehensive, integrated and high

PETALING JAYA: The 13th Malaysia Plan (13MP) has cast the green and blue economy as key pillars for driving high-value, sustainable growth by 2030, with initiatives ranging from carbon trading and hydrogen hubs to rare earth elements (REE) and maritime industries. While some economists view these plans as a timely move to position Malaysia as an early mover in emerging markets, others caution that such initiatives are already largely market driven and that deeper structural reforms will ultimately determine the country’s economic trajectory. Universiti Putra Malaysia Associate Professor Dr Ida Yasin believes the green economy holds the greatest transformative potential for Malaysia. “If Malaysia goes into carbon credit and carbon trading, we are not the first, but among the few in the market,” she said. “We should take advantage of this early mover position, which could bring good returns to the country.” She highlighted initiatives in hydrogen energy, solar-hydro hybrids and REE develop ment as opportunities for Malaysia to create new value chains and strengthen its com petitive position in the region. “Green economy initiatives involve carbon trading, hydrogen hubs, solar, rare earth elements. These are new and we can leverage on them,” she said, adding that a balance must be struck between environmental risks and economic returns, particularly in REE mining. Ida noted that Malaysia already has a solid base in maritime activities, ranking just behind Singapore in Asean for port and “As a humble home-grown brand, we’ve grown through community listening and science-first design. But clinical testing, sustainable packaging, and cross-border certifications are real hurdles. 13MP signals long-overdue recognition that innovation in health and personal care, including skincare, deserves a place in the national startup agenda”, Lee said She added that the 13MP speech by Prime Minister Datuk Seri Anwar Ibrahim highlighted the need for “value creation in all sectors”, a pivot away from traditional resource-based growth towards innovation and inclusion. It also set a target of 5,000 digital entrepreneurs by 2030 and emphasised expanding Malaysia’s high-growth, high-value industries. Encorium welcomed this shift, noting that the skincare sector increasingly straddles health, wellness and biotech – and deserves recognition within broader innovation frameworks. “It’s not just about tech unicorns. It’s also about showing the world that Made by Malaysia skincare can be safe, effective, and world-class,” Lee said.

Encorium: Opportunities for skincare startups PETALING JAYA: The 13th Malaysia Plan (13MP) could mark a turning point for the country’s RM6.8 billion skincare and wellness sectors. According to Encorium, a local e commerce-first skincare brand and data governance – could help smaller brands overcome growth bottlenecks such as clinical research and development costs, digital trust and export readiness.

Malaysia will continue to progress, embrace free market system by 2040

focused on barrier-first formulations for sensitive skin, the plan’s emphasis on value creation, digital-first models and “Made by Malaysia” products creates meaningful opportunities for independent skincare startups to scale, innovate and compete globally.

“This is the clearest signal yet that innovation isn’t limited to semiconductors or AI,” said Encorium founder Cynthia Lee ( pic ). She added that the beauty industry – especially science-based skincare – is a high growth, intellectual property-driven sector where Malaysia can lead. “The 13MP gives us the policy runway to do that”. Encorium, founded in 2021, develops alcohol free, fragrance-free products for barrier compromised skin, including formulations using local ingredients such as tocotrienols. Its products are developed in partnership with local chemists, formulators and manufacturers and sold entirely through digital channels. The company said the 13MP’s focus on strengthening Malaysia’s innovation ecosystem – including startup funding, digital infrastructure