23/08/2025

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SCAN ME

SATURDAY | AUG 23, 2025

RM190.3 billion approved investments in first-half 2025

Johor remains at the top

Wong said Unity Group is confident the sukuk will set a benchmark for future Islamic sustain able finance products. “We believe this initiative can encourage more issuers and investors to explore innovative structures that serve both profitability and environmental stewardship.” The launch comes at a time when global demand for ESG-focused investments continues to grow, despite concerns about inconsistent standards and market scepticism. Malaysia’s move, through Unity Group and Labuan IBFC, positions it at the forefront of efforts to establish robust and credible instruments in this sector. Unity Climate Sukuk’s pilot projects will be based in Selangor, with scalability plans across Malaysia and potentially into the wider Asean region. H’ng said partnerships between the private sector, academia and regulators will be key in sustaining momentum. “This sukuk is a milestone, but more importantly, it sets a precedent. Collaboration is the only way to ensure we meet climate targets while maintaining investor trust,” he added. With the launch, Unity Group and its partners hope to catalyse greater adoption of Islamic sustainable finance globally, positioning Malaysia as a model for integrating faith-based principles with urgent climate needs. with RM56 billion JOHOR BAHRU: Johor maintained its position as the country’s leading investment destination by recording RM56 billion in approved investment value for the first half of 2025, said state Investment, Trade, Consumer Affairs and Human Resources Com mittee chairman Lee Ting Han. He said the achievement maintains the excellent momentum after Johor recorded the highest investment performance for the first quarter of this year with RM30.1 billion, and chalking up RM56 billion in the first half of 2025, almost 30 per cent of the country’s total investment for this period which is RM190.3 billion. The achievement was not just a number but rather reflected the confi dence of international and domestic investors in the fundamental strength of Johor’s economy, he added. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has acknowledged Johor’s performance, saying “Johor’s per formance has been especially en couraging, topping the nation in both 1Q 2025 (RM30.1 billion) and in 1H 2025 (RM56 billion). “This reflects the state’s streng thening economic fundamentals, driven by initiatives such as the Johor Singapore Special Economic Zone, one of Malaysia’s value propositions as a strategic manufacturing and services hub within the Asean region.” – Bernama

KUALA LUMPUR: Malaysia has secured RM190.3 billion in approved investments in the first half of 2025 (H1’25), an 18.7% increase year-on year (y-o-y), according to Malaysian Investment Development Authority (Mida). Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the approved investment growth demonstrates foreign and domestic investors’ continued trust in Malaysia’s clear policies and long term industrial reform agenda. “These have contributed to Malaysia’s strong economic funda mentals, which have held up amid a challenging global environment. “Miti and Mida are working closely with relevant ministries and agencies to ensure these commit ments are implemented expedi tiously to deliver meaningful out comes,” he said in a statement. Mida said 3,011 projects across the manufacturing, services and primary sectors are expected to generate 89,294 new jobs, which highlights the country’s ability to translate investment commitments into real economic impact. Foreign Investments surged 43.5% y-o-y, propelled by strong growth in services (+100.7%), KUALA LUMPUR: Unity Group has introduced the world’s first syariah compliant climate sukuk, reinforcing Malaysia’s role as a pioneer in com bining Islamic finance with climate focused investments. The RMB200 million Unity Climate Sukuk, denominated in Chinese renminbi, was launched in part nership with Tek Securities Ltd and supported by Labuan’s key financial players. It marks the world’s first private sukuk issued in renminbi directly linked to carbon credit generation and verified emissions reductions. Unity Group chairman and CEO Mansfield Wong said the sukuk reflects Malaysia’s growing reputation as a leader in sustainable and innovative finance. “This programme is designed to integrate climate finance with syariah principles, creating a unique pathway for investors who are committed to sustainability as well as compliance,” Wong said at the launch yesterday. He added that the sukuk is not only groundbreaking in its structure but also crucial for building investor trust through transparency and account ability. The programme will be tied to projects registered under a recognised carbon registry, monitored in real time Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o Year-on-year increase of 18.7%, with 3,000 projects across manufacturing, services and primary sectors expected to generate 89,300 new jobs: Mida

manufacturing, while domestic investments contributed RM15.1 billion, or 22%. Meanwhile, the primary sector secured RM3.3 billion in approved investments across 17 projects, mainly in mining. Domestic sources dominate approved investments at RM1.8 billion, or 54.2%. Foreign sources contributed RM1.5 billion, or 45.8%. Mida said Malaysia’s investment outlook remains resilient, supported by a steady flow of quality project proposals. As at July 31, 2025, Mida has facilitated a solid pipeline of 385 potential projects, collectively valued at RM22.5 billion, comprising services (RM15.7 billion) and manufacturing (RM6.8 billion). The authority is in discussions for an additional RM103.8 billion worth of high-impact investment leads, signalling sustained investor interest and confidence in Malaysia’s pro business policies and long-term economic direction. – Bernama

Malaysia’s performance in attracting investments for H1’25 shows resilience. “Despite a tumultuous global economy, Malaysia’s economy ex panded by 4.4% in the 2Q 2025. Investment momentum is holding strong. This reflects the depth of our fundamentals and the trust investors place in our long-term direction.” Mida said the services sector accounted for RM118.6 billion in approved investments, or 62.3% of the total, comprising 2,476 projects. It recorded a y-o-y rise of 25.6%, with an estimated 42,576 job oppor tunities to be created. It added that under the sector, domestic invest ments contributed RM66.6 billion (56.2%) and foreign investments, RM52 billion (43.8%). Under the manufacturing sector, Malaysia secured RM68.4 billion, or 36%, in approved investments for H1’25, with the approval of 518 projects and 46,690 new job openings. Notably, foreign investments accounted for 78% or RM53.3 billion of total approved investments in

manufacturing

(+12.1%)

and

primary (+57.4%) sectors. For approved investments based on foreign sources, Singapore led with RM43.4 billion, followed by China (RM23.4 billion), the United States (RM10.4 billion), the British Virgin Islands (RM6.6 billion) and Italy (RM3.3 billion). Johor recorded the highest approved investment value of RM56 billion, followed by Selangor (RM34.7 billion), Kuala Lumpur (RM30.1 billion), Penang (RM18.9 billion) and Sabah (RM11.4 billion). The focus sectors under the National Investment Aspirations (NIA) contributed RM88.3 billion, or 46.4% of total approved investments across various economic sectors. Approvals span 426 projects and are expected to create 33,891 new jobs for Malaysians, demonstrating a strong alignment between the nation’s investment strategies and its development goals, it added. Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said by independent verifiers to prevent greenwashing. The sukuk aims to attract a diverse pool of investors seeking ESG-aligned opportunities in Asia. According to Unity Group, revenue streams will come from verified carbon credits and underlying re newable energy projects. Wong emphasised that posi tioning Malaysia, specifically the Labuan International Business and Financial Centre (Labuan IBFC), as a hub for climate sukuk is strategic in the regional financial landscape. “Labuan is increasingly being recognised as a forward-thinking jurisdiction for Islamic and sustainable finance. With this sukuk, we are not only highlighting innovation but also Malaysia’s global leadership in bridging Islamic capital markets with climate goals,” he said. Tek Securities director Prof Datuk Dr H’ng Paik San welcomed the initiative, stressing its potential to advance both climate action and sustainable investment models. “Climate change mitigation re quires financing mechanisms that are not only innovative but also credible and transparent. This sukuk links financial instruments directly to real, measurable environmental outcomes,” he said. H’ng noted that tying sukuk proceeds to verified carbon credits represents a practical step towards

Unity Group introduces world’s first syariah-compliant climate sukuk

From left: Wong, Labuan Financial Services Authority director-general Affendi Rashdi and H’ng during an exchange of engagement letters ceremony at the launch.

cing accountability. Wong said these safeguards are vital to differentiate genuine green financing instruments from projects accused of greenwashing. Market observers note that the sukuk’s renminbi denomination may broaden its appeal to investors in China and across Asia, offering both diversification and alignment with Belt and Road sustainability ob jectives.

addressing emissions reductions. He also highlighted the academic sector’s role in providing expertise to ensure that environmental standards are upheld. Unity Group underscored that the sukuk will incorporate stringent monitoring systems, including verifi cation by accredited third-party validators. Investors will be able to access data in real time to track project outcomes, thereby reinfor