20/10/2026

BIZ & FINANCE TUESDAY | OCT 20, 2026

14

Govt has set clear ambitions for the country: Mohd Shahar

PETALING JAYA: The government has set clear ambitions to place Malaysia among the top 25 in the Corruption Perceptions Index, the top 12 in the IMD World Competitiveness Yearbook and reduce the fiscal deficit to below 3% of gross domestic product (GDP). Deputy Minister of Economy Datuk Seri Mohd Shahar Abdullah ( pic ) said beyond these targets, the real test is whether Malaysians can trust their institutions and businesses to compete on a level playing field. “This is where government and corporate leadership must come together. When the government is transparent and accountable, and business leaders uphold the same standards in their boardrooms, we create an environment where investment can flourish, businesses can grow, and prosperity can be shared,” he told delegates at the Asia Independent Directors Conference – The Future Asia Boardroom in Kuala Lumpur yesterday. Mohd Shahar said that, as set out in the 13th Malaysia Plan, the government is intensifying the implementation of the National Anti Corruption Strategy, strengthening integrity units across government agencies, and reinforcing checks and balances in public administration. “We are also improving performance monitoring through clearer outcome-based indicators and stronger accountability for ministries. Malaysia’s commitment to insti tutional integrity is yielding measurable outcomes.” Mohd Shahar pointed out that in Transparency International’s latest Corruption Perceptions Index, Malaysia’s score improved to 52, and its ranking rose from 57th to 54th among 182 countries and territories. From June 1, 2020, under Section 17A of the MACC Act, a commercial organisation can be held liable for corrupt acts committed on its behalf unless it can show it had adequate procedures in place.

Reflecting this strong momentum, in the recently tabled Budget 2027, our full-year 2026 GDP growth forecast was officially revised upwards to between 4.8% and 5.3%, surpassing earlier projections by Bank Negara Malaysia, even as the global environment remains uncertain,” Mohd Shahar said. Focusing on technology, Mohd Shahar said artificial intelligence, digital trade, fintech and green technology are reshaping every industry. Under the Malaysia Digital Action Plan 2030, the government aims for the digital economy to contribute 30% of national GDP and

o We aim to put Malaysia into top 25 in global corruption perception, top 12 in world competitiveness and to reduce fiscal deficit to below 3% of GDP, says economy deputy minister

Malaysia’s economy con tinues to demonstrate robust resilience. In the second quarter of this year, GDP grew by 6%, the country’s strongest second-quarter perfor mance outside pandemic

Mohd Shahar said the penalties are serious: a fine of not less than ten times the value of the gratification or RM1 million, whichever is higher, or imprisonment of up to twenty years, or both. “Let me be clear about the intent of that provision. It is not designed to punish busi nesses. It is designed to protect it, by en couraging every company to build a culture where corruption has no place to hide. Integrity starts at the top and cannot be delegated, the deputy minister said. “There is a clear economic return on integrity. Sophisticated global capital demands transparency. “A proven reputation for integrity lowers the cost of capital, attracts long-term institutional partners, and secures global supply chain access. “Integrity is not an operational overhead; it is a strategic competitive advantage,” Mohd Shahar said. Touching on growth, Mohd Shahar said

create 500,000 jobs. “However, innovation without governance is reckless speculation, while governance without innovation is stagnation. High-performing boards must balance both. “The government will continue to support innovation by encouraging investment, providing targeted incentives and creating a conducive environment for research, develop ment and commercialisation. “At the same time, we must uphold strong governance, transparency and integrity to ensure that public and private investments are well managed and deliver meaningful outcomes,” Mohd Shahar said.

recovery years since 2014. This brought first half growth to 5.7%, while inflation stayed contained at 1.9%. Exports expanded by 17% in the same quarter. Last year, Malaysia’s total trade crossed RM3 trillion for the first time, reaching RM3.06 trillion, marking its twenty-eighth consecutive year of trade surplus. “Investors are backing this performance. In the first half of this year, approved investments reached RM218.5 billion, an increase of nearly 12% year-on-year, with foreign investment rising over 18% to RM126.9 billion. “These investments are projected to create nearly 100,000 high-value jobs for our people.

Malaysia’s shift to renewable energy faces cost and supply challenges, says AmInvest

Penang secures RM2.68b for federal development projects next year: Chow

PETALING JAYA: Malaysia’s energy transition is expected to gather pace over the coming decades, with the government aiming to reduce its reliance on fossil fuels and increase the share of renewable energy in the country’s energy mix. AmInvestment Bank Bhd (AmInvest) noted that the National Energy Transition Roadmap targets a reduction in fossil fuel reliance from 96% in 2023 to 77% by 2050, while renewable energy’s share of total primary energy supply is projected to rise from 4% to 23% over the same period. The push is also being supported by policies such as the National Energy Efficiency Policy and Action Plan 2.0, which runs from 2026 to 2035 and seeks to improve energy efficiency through regulation, demand manage ment and financial support. Renewable energy (RE) accounted for 32% of Malaysia’s installed power capacity at the end of 2025, indicating progress in the shift toward cleaner energy sources. The outlook and challenges ahead were among the issues discussed at a recent webinar organised by AmInvest on Peninsular Malaysia’s energy transition, which also examined key policy milestones shaping the country’s move towards a lower carbon energy system. The discussion showed that solar remains the dominant RE source in Malaysia, accounting for 50% of the RE installed capacity mix as at end-2025. This was followed by large hydro (40%), biomass (6%), small hydro (3% ) and biogas (1%). AmInvest noted that apart from

Ű BY T.C. KHOR newsdesk@thesundaily.com

with RM2.2 million allocated for 2027. The projects are the Sungai Klang Ubi flood mitigation scheme in Central Seberang Perai, the upgrading of Bukit Tambun Road FT149 from the Federal Route 1 junction to the Bukit Tambun Selatan toll interchange in Simpang Ampat, Phase Two of the Sungai Perai flood mitigation scheme in Central Seberang Perai, and the mapping and development of Penang’s groundwater re sources. Chow said the Penang STEM Talent Blueprint was approved earlier under the first rolling plan (RP1) of RMK13, with a project cost of RM12.3 million. He also highlighted the proposed Penang Technology Financial Centre, which is envisioned as a national technology finance hub. The centre is projected to con tribute RM12.1 billion to gross domestic product and support more than 71,000 jobs over the next 15 years. On Oct 7, Chow said seven of the state’s 10 priority projects had been accepted by the Finance Ministry for inclusion in Budget 2027. Chow said the state could resubmit the three projects that were not accepted.

GEORGE TOWN: Penang has secured RM2.68 billion for federal development projects in 2027, with 280 projects worth RM33.22 billion ap proved under the 13th Malaysia Plan (13MP). Chief Minister Chow Kon Yeow said the projects, ap proved under the second rolling plan (RP2) for 2027, comprise 44 new projects costing RM578.29 million and 236 continuing projects. The new projects have been allocated RM63.71 million for 2027. “The state government is very grateful for the consi deration given to the approval of the listed projects,” Chow said in a statement yesterday. He said the state would continue to strengthen stra tegic cooperation with the federal government to ensure development allocations were used optimally for Penang’s progress and the well-being of its people. Four of the 44 new projects were among the state’s priori ties submitted to the federal government in February. They have a combined project cost of RM96.95 million,

Solar remains the dominant RE source in Malaysia, accounting for 50% of the RE installed capacity mix as at end-2025. – BERNAMAPIC

generation costs and the system costs are lower than intermittent renewables. However, AmInvest pointed out that building a nuclear power plant costs more than building a gas plant. “We believe that the issue is public acceptance, as there are problems of how to manage nuclear waste and concerns that a nuclear accident like Fukushima could occur,“ AmInvest said. The bank-backed research firm also pointed out that there is an energy trilemma, not a dilemma. It said the three issues are affordability, sustainability and reliability. “If the energy transition is poorly managed, there is a risk of grid constraints, which could affect the reliability of electricity supply or affordability, which may increase the energy costs of households and businesses.”

solar, studies have been carried out on small hydro, biomass and wind. “We understand that there are 80 rivers in Peninsular Malaysia, which can house run-of-the-river hydropower plants. The energy potential from this is about 150MW. “As for biogas, the potential is limited as it can only be sourced from palm oil mill effluent. Wind farms are challenging in Malaysia because wind speeds are not up to par. However, there is technology which can increase the wind speed,“ AmInvest said in a report. Further, the research firm also noted that nuclear energy is included in the 13th Malaysia Plan. Nuclear provides a stable, low carbon baseload energy supply. According to the World Nuclear Association, fuel costs for nuclear power plants are a small proportion of