07/08/2025

BIZ & FINANCE THURSDAY | AUG 7, 2025

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Reflecting this regional shift, CIMB Bank Bhd and CIMB Malaysia CEO Gurdip Singh Sidhu said the bank is scaling its Asean presence through both physical expansion and cross-border digital offerings, a strategy that has enabled it to serve over 50 million users across Southeast Asia. “We may historically be viewed as a legacy financial institution, but we are accelerating our digital transformation. At the same time, we are also the largest investor in Touch ‘n Go Digital, which operates the largest e-wallet in Malaysia, and functions as a non-bank digital super app, facilitating smoother transactions. “With Touch ‘n Go eWallet now supported on the Alipay+ platform, cross-border payments are seamless for both foreign visitors and Malaysians abroad, while also enabling local small and medium enterprises to accept payments from international customers,” he said during a media panel session titled “Going Beyond Borders: How Fintechs and Financial Institutions are Redefining Regional Scale” on Tuesday. On regional expansion, Gurdip highlighted CIMB’s success in the Philippines, where the bank established a digital-first presence from the ground up in just six years. “We partnered with the leading local e-wallet and initially offered banking products via their front end before launching our own app. Today, we serve nearly 10 million customers. All Mosti to strengthen collaboration with Petra on nuclear energy CYBERJAYA: The Ministry of Science, Technology and Innovation (Mosti) has reaffirmed its commitment to strengthen collaboration with the Ministry of Energy Transition and Water Transformation (Petra) to explore the potential of nuclear energy in Malaysia. Science, Technology and Innovation Minister Chang Lih Kang said nuclear energy has long been identified as a strategic area, with Mosti playing a key role in advancing related technologies, developing talent, and formu lating the regulatory framework. “Exploration in the nuclear field is not new. Discussions between Mosti and Petra have been ongoing, but this time, with clear government backing under the 13th Malaysia Plan (13MP), we are now moving forward in a more comprehensive and structured manner. “This reflects a whole-of-nation approach, where all relevant stakeholders are being engaged. We have formed six task forces, three led by Mosti and three by Petra,”he told Bernama and RTM after opening the International Conference on Science Diplomacy for Regional Prosperity in Asean here yesterday. Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 13MP last Thursday, said the government was considering nuclear energy as one of the clean, competitive and safe energy sources A structured assessment is currently under way to evaluate its role in Malaysia’s long-term energy mix. The initiative aims to diversify energy sources, enhance energy security, support national carbon reduction targets, and reduce reliance on fossil fuels, aligning with the country’s climate commitments and rising energy demand. In addition to nuclear energy, Chang said, Mosti is also involved in developing other strategic sectors such as rare earth elements, with a similar focus on technology development, talent cultivation, and regulatory frameworks. He added that Mosti is preparing to implement a range of Science, Technology, and Innovation initiatives outlined in 13MP, as part of efforts to elevate Malaysia into a high-tech economy.

Govt to introduce plan to attract high-value investors

Ű T.C.KHOR newsdesk@thesundaily.com

o New Investment Incentive Framework, to be unveiled in the third quarter, will help counter impact of US’s 19% tariff and buffer Malaysia from future global trade shocks: Liew

PETALING JAYA The government will intro duce a New Investment Incentive Framework (NIIF) in the third quarter of 2025 to promote high-value investments and activities. Deputy Investment, Trade and Industry Minister Liew Chin Tong said the NIIF is a major strategic step in response to the United States’ decision to impose a 19% countervailing tariff on Malaysian goods under an executive order announced on Aug 1. “This is to ensure that all investments deliver benefits such as quality employment for Malaysians and the development of local company ecosystems and technologies,” he said in a written reply to Tanjung Piai MP Datuk Seri Dr Wee Jeck Seng in the Dewan Rakyat. The framework, to be developed by Miti in collaboration with the Ministry of Finance, will set Malaysia in a new direction, aligning investment inflows with national develop ment goals and long-term economic resilience. Liew said the recent US tariff revision was a complex and time-sensitive issue that the government had successfully negotiated down to 19%. “The government is confident that the early measures implemented, along with well-structured mitigation planning, will reduce the negative impact of the United States’ imposition of countervailing tariffs specifically on Malaysia,” the deputy minister noted. Liew said Malaysia’s exports to the US made up 13.2% of the country’s total exports in 2024, valued at RM1.508 trillion. To mitigate the tariff’s impact, Miti and its

strengthening localisation requirements for foreign investors to ensure that MSMEs benefit from the spillover effects of both domestic and international investments. The government believes these measures, especially the NIIF, will buffer Malaysia from future global trade shocks and elevate its status in global supply chains. On Aug 1, the US enacted a revised reciprocal countervailing tariff of 19% on imports from Malaysia, under an executive order by President Donald Trump. The rate was negotiated down from an initially proposed 25% and superseded the 24% tariff announced earlier in April. The negotiations began in early May and concluded on July 31, allowing Malaysia to preserve key policy prerogatives without compromising its sovereign “red line” commitments. Malaysia now shares the 19% tariff rate with several major Asean economies, including Thailand, Indonesia, the Philip pines, and Cambodia, placing it firmly in the mid-tier bracket within the region. Vietnam faces a slightly higher rate of 20%, while Brunei is subject to 25%, and Laos and Myanmar face steep duties of 40% each. Singapore, by contrast, remains on a base rate of 10%. Items currently excluded from the tariffs, such as semiconductors and pharmaceutical products, are also expected to face tariffs “in the next week or so”, according to Trump. Fintech Association of Malaysia president Anil Singh Gill said Bank Negara Malaysia (BNM) is now globally recognised as one of the most solid and competent regulators in terms of financial governance for both institutions and fintechs. Nexea CEO Ben Lim opined that corporate partnership can serve as a strong vote of confidence for startups, signalling they have passed due diligence and are ready to scale. “For example, one of our other startups, Lapasa, grew 16 times – 1,600% in a single year – simply because it secured one large corporate client. Such clients can provide the leap needed for startups to go regional or even global,” he said. The media panel session was held on the sidelines of MyFintech Week 2025, which runs from Aug 4 to 7 and gathers nearly 1,000 industry leaders, regulators and innovators to explore the future of finance and technology. With the theme “Ideate, Innovate, Co-create: Shaping the Future of Finance”, the third edition of MyFW 2025 reinforces its role as Malaysia’s flagship fintech event. The event is co-organised by BNM, the Securities Commission Malaysia, the Asian Institute of Chartered Bankers, the Fintech Association of Malaysia and the Malaysia Digital Economy Corporation. – Bernama

agency, Malaysia External Trade Develop ment Corporation, have been actively exploring non-traditional export markets and strengthening networks in emerging regions such as Central Asia, South Asia, the Middle East, Africa, and Asean. “To position Malaysia as an indispensable middle player in the supply chain, the government is committed to enhancing the nation’s resilience by advancing the growth of advanced local technology companies in strategic sectors such as semiconductors,” said Liew. He called for a shift in mindset as local small and medium enterprises and micro enterprises must be seen as potential global players, not just support units for foreign multinationals. “The government is committed to leading the transformation of local companies from being mere outsourcing producers labelled ‘Made in Malaysia’ to reaching the level of ‘Made by Malaysia’ with Malaysian tech nology,” he said. Liew pointed to the RM25 billion GEAR-uP programme under the Ministry of Finance as another key initiative to drive high-growth, high-value sectors, particularly semicon ductors and the energy transition, while also empowering marginalised communities and nurturing local talent. To support this transformation, the government will study the possibility of

Banks, fintech players step up cross-border expansion, tie-ups in Asean KUALA LUMPUR: Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across Asean, adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape. standards essential. “It comes down to trust in the system. If a fintech enters the space without a proven track record, having consistent, recognised standards or interoperable frameworks helps build confidence – both for us as partners and for their ability to scale,” he said.

Gurdip speaking during a media panel session at MyFintech Week 2025. – BERNAMAPIC

Malaysian team to 1,000 employees by the year end, up from 800 currently. On supporting startups with regional ambitions, Xue said Ant International forms strategic partnerships with both local and regional players. “With startups, we co-develop solutions and provide global exposure through initiatives such as our 10x1000 Tech for Inclusion Programme,” he said. Meanwhile, Visa head of products and solutions for regional Southeast Asia, Kim Hak, said cross-border payments remain complex and require careful planning and coordi nation, making interoperability and shared

through digital,” he said. In support of broader regional integration, global digital payment and fintech provider Ant International is also strengthening cross-border infrastructure through its Alipay+ platform. Ant International general manager of global business services and support, Jake Xue, said the company is expanding its cross-border payment infrastructure and digital financial services to connect 1.7 billion users with over 100 million merchants worldwide. “Malaysia is strategic to our global vision, not only as a gateway to Asean, but also as a source of diverse and digitally savvy talent,” he said, adding that the company plans to grow its