As Malaysia's economic frontline, the Ministry of International Trade and Industry (MITI) managed to maintain Malaysia's position as a preferred investment destination and one of the most competitive trading nations. MITI, in collaboration with the Malaysia External Trade Development Corporation, commissioned the development of the National Trade Blueprint as a strategic document to further nurture Malaysia's business ecosystem and increase our export competitiveness in the global market.
INDUSTRIAL AND SERVICES
OVERVIEW
COVID-19 vaccines
RM306.5 billion
Malaysia's 2021 GDP at current prices reached RM1.5 trillion with gross national income per capita increasing by 7.7% from 2020. Malaysia's overall economic performance in 2021 showed encouraging recovery momentum with growth of 3.1%, reversing the 5.6% decline in 2020.
PERFORMANCE OF THE MANUFACTURING SECTOR
Aerospace
The re-opening of domestic travel has revived the maintenance, repair and overhaul (MRO) business
Automotive
RM104.7 million
Electric Vehicle Incentive Package under Budget 2022
508,911 vehicles
Chemicals and Petrochemicals
Electrical and Electronics
A total of RM42.2 billion has been invested over a 15-year period commencing in 2021 which would
National Policy on Industry 4.0
Iron and Steel
The Iron and Steel Industry Foresight Study began in the third quarter of 2021 and is expected to be completed by the second quarter of 2022. The findings will recommend measures and improve the existing iron and steel policy and product mix.
Domestic iron and steel producers reported higher profit margins in the first half of 2021 compared to their poor performance during the same period in 2020. The study aims to determine the potential production and development of the local iron and steel industry for the next ten (10) years, which they encompass talent development, technological advancement and market diversification.
RM19.5 billion
Exports of steel products continued to be dominated by the segment of long products, consisting of rebar and steel wire rods, at 60%, while imports were mainly in the segment of flat products, especially hot-rolled and rolled products. A revised iron and steel policy was implemented in 2021 aimed at improving the overall competitiveness of the industry, while also strengthening the capacities of domestic steel producers to ensure long-term sustainability.
However, the guidelines for the import and inspection of scrap metal and waste paper have only been fully implemented. Since June 2021, an interim period has been granted with gradual introduction of inspection mechanisms before its full implementation to enable the industry to familiarize itself with the Guidelines.
51,914 employment
However, disruptive challenges emerged, notably the global shortage of raw materials, especially iron ore and scrap, which led to a rise in steel prices.
10,497 jobs
Human Resource Development
PENJANA Reskilling and Upskilling Programme
Machinery and Equipment
42 M&E projects
RM1.6 billion
To strengthen Malaysia's competitive position in this sector, M&E aims to further specialize by investing in new technologies and building a new pool of skilled workers. In this regard, the Machinery and Equipment Productivity Nexus (MEPN) has undertaken 19 projects to empower the workforce, increase productivity through knowledge sharing from industry and technology experts and enhance the development of the M&E ecosystem.
Processed Food and Agro-Based Products
Minerals
RM5.4 billion
Non-metallic mineral products include items such as glass; cement and concrete; ceramic and clay products. In April 2021, the government launched the National Mineral Industry Transformation Plan 2021-2030 to achieve sustainable growth and promote the development of the mineral industry value chain.
Industrialised Building System
This industry recorded an investment value of RM422.9 million in 2021 with 17 approved projects, leading to the creation of 782 jobs. MITI's role focuses on transforming the industry by creating more competitive mid- and downstream players.
2030 in April 2021 to achieve sustainable growth and drive the development of the
According to the plan, exploration and extraction of new minerals should be assessed in terms of: the demand from local industries at the mid- and downstream levels; be consistent with environmental, social and governance principles; giving priority to the use of domestic industry and to minerals exported in the form of semi-finished or finished products with high added value.
334 newly registered
IBS manufacturers , 6,689 IBS
Medical Devices
Textile, Apparels and Footwear
Halal Industry
HDC has introduced various incentives to encourage more industry players to get certified and increase their exports. One such incentive is the Go Halal Fund, which provides financial assistance for capital expenditures for the purchase of equipment as well as operational assistance.
Malaysia
Despite the promising growth, this still represents only 1% of the global halal industry, which is estimated to be worth close to USD4 trillion by 2021, offering plenty of opportunities for Malaysian companies. There are 200,000 industry players in Malaysia involved in various halal sectors including food and beverages, cosmetics, personal care, pharmaceuticals, medical devices and logistics, but less than 5% are halal certified.
Halal Export Value 2021
MYR 36,298.42 million
Railway imports increased to RM482.2 million from RM472.0 million), which were locomotive and rolling stock parts, self-propelled rail cars, railway passenger and special purpose cars and signaling devices. In 2021, only one (1) domestic investment project in rail-related activities was approved, valued at RM97.3 million.
Shipbuilding and Ship Repair
Rail
The main export markets for products such as tugs and pushers, yachts and other vessels for pleasure or sport, cruise ships, cargo ships, barges, light ships, dredgers, floating docks and floating structures were the United States, Indonesia, United Arab Emirates, India and Singapore. Among the main imported goods were cruise ships, cargo ships, barges, light ships, dredgers, floating docks and floating structures.
SUPPLY CHAIN AND BUSINESS CONTINUITY
Measures Taken to Sustain Business Continuity During COVID-19 Pandemic
COVID-19 Intelligent Management System
Public-Private Partnership COVID-19 Industry Immunisation Programme
Under PIKAS, worksites, convention and exhibition centres were utilised as Vaccination Centres (PPV)
In addition to CIMS and PIKAS, the Call Center was also established on January 13, 2021 and remained operational until November 30, 2021. The Call Center acted as a reference point to facilitate and resolve issues raised by the industry regarding CIMS and respond to frequently asked questions. questions related to economic sectors.
MITI Enforcement Team
The companies had to bear the full cost of administering the vaccine to PH at RM15 and the costs related to site preparation. A total of 31,358 calls were received during the entire operation and all of these were answered by 178 agents from MITI and agencies deployed at the call center from 9am to 6pm daily.
PERFORMANCE OF THE SERVICES SECTOR
Investments in the Services Sector
Domestic investments contributed 73.5% or
RM69.2 billion
2020: RM63.4 billion) while foreign
2020: RM6.6 billion)
Trade Performance of the Services Sector
Revenue and Employment in the Services Sector
Wholesale and Retail Trade, and Food, Beverages and
Information and Communications Technology, Transportation and Storage
Malaysia’s services trade rose just 0.6% to
RM 234.1 billion
SERVICES SECTOR OUTLOOK
Private Health, Private Education and Arts, and Entertainment and Recreation
Professional Services and Real Estate Agency
FUTURE GROWTH AREAS
Private Education
Professional Services
These technologies can help professional services firms increase internal operational efficiency, reduce costs and improve margins. In addition to digitization, one of the most noticeable changes in the industry is the rise of renewable energy sources and environmental professional services that support the green economy.
Transport and Logistics
As for Malaysia, transport infrastructure and logistics services will be further strengthened under the 12MP, with the government committing to integrated, affordable, reliable and seamless people mobility in the sector. The plan also includes strengthening competitiveness in the transport and logistics sector by strengthening its institutional and regulatory framework.
Ecotourism
Under the 12MP, a new logistics nexus under the Malaysia Productivity Blueprint will be established to further enhance its contribution to the economy. As part of efforts to strengthen the transport and logistics industry towards competitiveness, the government aims to be in the top 10 rankings in the World Container Port's Report and top 30 rankings in the World Bank's Logistics Performance Index by 2025.
Information and Communication Technology and Communication
To achieve these targets, the Government will improve efficiency and leverage on the digitization of services.
CROSS-CUTTING ECOSYSTEM
Skills and Talents for Industry
MITI and its agencies used the PENJANA fund to improve the employability of local workers by conducting 23 training and retraining programs for those who were unemployed/laid off, as well as new graduates.
Sector-specific training programmes were conducted by MIDA, MARii, HDC, InvestKL
Ethical Recruitment by Industry
Outreach and information sessions were organized to keep them informed of legislation and regulations related to labor in the context of foreign workers' employment and forced labor elements as well as to share information on the implementation of Act 446. MITI is also involved in the initiatives to improve Malaysia's position in the US Trafficking in Persons Report as well as in addressing issues related to WRO by the US Customs and Border Protection Agency.
INDUSTRY EXCELLENCE AWARD
MITI also works closely with the US Embassy in Kuala Lumpur, MOHA, MOHR and the Ministry of Labor, as well as the United Nations International Organization for Migration and the ILO on forced labor to further understand the dynamics of to increase the workforce in the manufacturing sector in Malaysia. and in the global supply chain.
Industry Excellence Award 2020 Ceremony and Winners
It was first used in the Generalized System of Preferences, through which the EU unilaterally grants tariff preferences to developing countries. The REX system is based on a principle of self-certification by economic operators who will present a declaration of origin (SOO) on trade documents as proof of origin.
ECONOMIC OUTLOOK 2022
INTERNATIONAL TRADE
Performance of Key Markets
TRADE PERFORMANCE
ASEAN remained an important and strategic trading partner, accounting for 25.1% of Malaysia's total trade in 2021. Imports from ASEAN increased by 33.1% to RM232.82 billion, with main imports consisting of from E&E products, petroleum products as well as chemicals and chemical products.
FREE TRADE AGREEMENTS
Implemented Agreements
Trade with FTA partners in 2021 stood at
Bilateral FTAs
ASEAN
RM1.49 trillion
RM831 billion
RM659 billion
Singapore 20.9% Singapore 14.2%
Japan 10% Hong Kong SAR 9.2% Japan 11.2%
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Targeted stakeholder consultations and engagements are also conducted to promote better understanding by all relevant parties regarding Malaysia's rights and obligations under the CPTPP. To meet Malaysia's obligations under the CPTPP, amendments to the relevant laws and regulations are being finalized by the respective ministries and agencies.
On-going Negotiations
Malaysia and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway and Switzerland have resumed negotiations on an economic partnership agreement that were postponed due to the COVID-19. In preparation for the 12th round of talks expected to be held in 2022, consultations with the relevant stakeholders are being conducted by the respective working groups.
Issuance of Preferential Certificates of Origin
Based on these meetings and other intersessional engagements in 2021, both sides remain positive that a mutually beneficial enlargement agreement will be concluded in 2022. ii) Malaysia-European Free Trade Association Economic Partnership Agreement. The Malaysia-EFTA Economic Partnership Agreement (MEEPA) negotiations cover various issues such as trade in goods, services, investment, intellectual property rights and competition.
CURRENT TRADE PRACTICES
Measures Related to Trade Remedies
Iron and steel, electrical machinery and equipment, and chemical products dominated the list of sectors under anti-dumping measures announced and initiated by WTO members. Based on WTO data, Malaysia was among the developing member countries most affected by the initiation of anti-dumping and countervailing investigations in the first half of 2021.
HIGH IMPACT BILATERAL ENGAGEMENTS
Trade and Investment Missions
Republic of Korea and Japan
Kingdom of Saudi Arabia and the United Arab Emirates
Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation and Director General of Expo 2020 Dubai. Ali bin Ahmed Al Kuwari, Minister of Commerce and Industry and Acting Minister of Finance in Doha, Qatar.
State of Qatar, Republic of Austria and Republic of Turkiye
Senior Minister, YB Dato' Seri Mohamed Azmin Ali at the round table lunch meeting with members of the Austrian Federal Chamber of Commerce (WKO). Senior Minister, YB Dato' Seri Mohamed Azmin Ali (left) witnessing the signing of the Memorandum of Agreement between Chulia Facilities Management Sdn.
Federal Republic of Germany, the French Republic and the United Kingdom
Memorandum of Understanding between the Malaysian Investment Development Authority (MIDA) and AT&S in Vienna, Austria to develop research and development and educational cooperation with Malaysian universities, education, training and research institutions.
Working Visit by The United States Secretary of Commerce to Malaysia
Bilateral Engagements with the People’s Republic of China
The event was organized by the Ministry of Commerce of the PRC and the People's Government of Guangdong Province and organized by the China Foreign Trade Center. Deputy Minister of International Trade and Industry YB Datuk Lim Ban Hong (left) leading the Malaysian delegation during the virtual roundtable meeting with captains of industry in the Greater Bay Area of the PRC on April 29, 2021.
OTHER BILATERAL MEETINGS
Bilateral meeting between Malaysia and Sweden
Meeting session with Belgian business community
The First Meeting of the Malaysia-Russia Working Group on Cooperation in Industry
Bilateral Meeting with Ukraine
Malaysia-Australia Joint Trade Committee Meeting
Bilateral Meeting between the Secretary General and the United Kingdom High
Third Meeting of the Malaysia-Republic of Korea Economic Cooperation Committee
Sixth Malaysia-Taiwan Economic Cooperation Committee
Courtesy Calls
OTHER PROMINENT ECONOMIC COOPERATION PROGRAMMES WITH BILATERAL PARTNERS AND STAKEHOLDERS
ARISE Plus Malaysia: Trade Related Technical Assistance
MULTILATERAL TRADE NEGOTIATIONS
Spanish Language Course 2021
TH ANNIVERSARY OF LOOK EAST POLICY
World Trade Organisation
The WTO negotiations on fisheries subsidies have made significant progress in 2021 with the introduction of a draft agreement on fisheries on 24 November 2021. Such an outcome will boost the agricultural reform process and further increase the WTO's institutional credibility.
In September 2021, the MSMEs Group at the WTO succeeded in finalising a Ministerial Declaration to
The country has strengthened its market position regionally, while stepping up the fight against negative consumer perception and anti-palm policies, which have damaged demand prospects in the EU, UK and US, and has actively used the WTO platform to tackle the discriminatory address measures imposed by other members. against palm oil. In December 2019, Indonesia filed a dispute case against the EU, alleging that the RED II violated the WTO Agreements on Technical Barriers to Trade, the General Agreement on Tariffs and Trade 1994 and the Agreement on Subsidies and Countervailing Measures.
Declaration
Despite the COVID-19 situation, the Dispute Settlement Body (DSB) agreed to grant Indonesia the establishment of a panel on the case on 29 July 2020. Malaysia is a third party to the dispute and continues to actively participate in the case .
Joint Statement Initiatives
As part of the proposed deliverables for MC12, JSI aims to conclude text-based negotiations by the end of 2022. At MC11, 59 WTO members signed a Joint Ministerial Declaration on Domestic Regulation of Services to advance discussions on national regulation in parallel with the work of the Working Group on Domestic Regulation mandated under the General Agreement on Trade in Services.
OTHER INVOLVEMENTS
This conclusion has been highlighted by the WTO and the JSI as one of the outcomes of the JSI platform to develop new disciplines in domestic regulation of services aimed at improving the business environment, reducing trade costs and reducing administrative burdens. to facilitate trade in services worldwide. However, Malaysia is not part of this plurilateral initiative and is currently consulting relevant stakeholders to explore the possibility of Malaysia joining the JSI.
World Economic Forum Annual Meeting 2021
Led by Australia, Japan and Singapore as Co-Convenors, JSI membership has since grown to 86 participants, accounting for more than 90% of global trade and representing all major geographic regions and levels of development. At MC11, 70 WTO members, including Malaysia, issued a Joint Ministerial Declaration on Investment Facilitation for Development, calling for structured discussions aimed at developing a multilateral investment facilitation framework.
The Commonwealth Connectivity Agenda for Trade and Investment
Joint declaration initiatives on electronic trade negotiations were officially launched in January 2019, based on the 11th Ministerial Conference (MC11) mandate to work on the development of the disciplines around trade and services under e-commerce, with the participation of 76 members, including Malaysia . In 2021, text negotiations on the disciplines governing e-commerce were still ongoing with the latest updated consolidated negotiating text circulated by the Co-Convenors in September 2021.
ASEAN ECONOMIC INTEGRATION
The Commonwealth Heads of Government meeting was to be held in Rwanda in June 2021. However, due to the COVID-19 outbreak, the meeting has been postponed to the first quarter of 2022.
ASEAN PRIORITY ECONOMIC DELIVERABLES 2021
Recovery
Digitalisation
Sustainability
The Work Plan was endorsed by the AEMs at the 53rd AEM meeting. iv) Circular Economy Framework for the ASEAN Economic Community. The Circular Economy Framework for the AEC was developed by the ASEAN Secretariat in collaboration with the Economic Research Institute for ASEAN and East Asia.
FRAMEWORK FOR CIRCULAR ECONOMY FOR THE ASEAN ECONOMIC COMMUNITY
The ASEAN Agreement on Electronic Commerce entered into force on 2 December 2021 following the receipt of the notification of Indonesia's instrument of ratification in accordance with Article 19 (2) of the said document.
AGREEMENTS THAT WERE SIGNED/RATIFIED IN 2021
ASEAN’S RECOVERY FROM THE PANDEMIC
Memorandum of Understanding on the Implementation of Non-Tariff Measures on
Bandar Seri Begawan Roadmap: An ASEAN Digital Transformation Agenda to Accelerate ASEAN’s Economic Recovery and Digital Economy Integration
ASEAN Comprehensive Recovery Framework
ENGAGEMENT WITH EXTERNAL PARTNERS
Regional Comprehensive Economic Partnership
Engagement with Singapore
The United Kingdom as ASEAN’s Latest Dialogue Partner
DEVELOPMENT IN THE ASIA-
PACIFIC ECONOMIC COOPERATION
Asia-Pacific Economic Cooperation
The Asia Pacific region has developed into one of the fastest growing regions in the world.
Committee on Trade and Investment
Following the adoption of the Aotearoa Plan of Action (APA) to implement the Putrajaya Vision 2040 and the mandate of APEC Economic Leaders and Ministers, the CTI will continue its work under the three (3) economic drivers in the APA for 2022: . Promote economic policies and growth that contribute to addressing climate change and other serious environmental challenges, in line with global efforts, such as achieving the 2030 Agenda for Sustainable Development and the goals of the Paris Agreement.
Senior Officials’ Meeting Steering Committee on Economic and Technical
Build understanding and transparency about the types of border measures taken in response to the pandemic and encourage the elimination of unnecessary export restrictions and other non-tariff barriers. From a national perspective, Malaysia continued to support the adoption of the Sub-Fund of the APEC Support Fund for Combating COVID-19 and Economic Recovery by voluntarily contributing RM1 million to the sub-fund.
Economic Committee
For 2022 and beyond, MITI has planned several approaches needed to fuel our economic recovery amid the COVID-19 and global economy volatility. Thailand, as host of APEC 2022, will see continuity of recovery efforts in the region.
INVESTMENT PERFORMANCE
Malaysia emerged stronger from the pandemic in 2021, recording an outstanding performance of RM309.4 billion in approved investments through 4,568 projects in the manufacturing, services and primary sectors, a staggering 84.7% increase from 2020. Foreign Direct Investment (FDI) continued to be the main driver of overall investment performance in 2021, contributing 67.4% at RM208.6 billion of total approved projects, while domestic direct investment (DDI) accounted for the remaining 32.6% at RM100, 8 billion.
APPROVED INVESTMENTS: MANUFACTURING SECTOR
When these projects are fully implemented, they will provide 105,022 employment opportunities in the coming years. The manufacturing sector remains the main contributor to the Malaysian economy, accounting for RM195.1 billion (63.0%) of total approved investment, followed by the services sector with RM97.0 billion (31.4%) and the primary sector with RM17.3 billion (5.6 %).
APPROVED INVESTMENTS: IMMEDIATE MAJOR SOURCE COUNTRY AND STATES OF MANUFACTURING PROJECTS
Note * : Due to rounding, figures presented in this table may not add up exactly to the totals provided: Reporting of foreign investment is based on immediate source country.
IMPLEMENTATION STATUS OF APPROVED MANUFACTURING PROJECTS
RM520.1 billion
APPROVED INVESTMENTS: SERVICES SECTOR
APPROVED INVESTMENTS: PRIMARY SECTOR
INITIATIVES AND FACILITATION MEASURES CONTINUE TO ATTRACT HIGH QUALITY INVESTMENTS
Government Stimulus in Boosting Investments
End-to-End Facilitation for Investors
Implementation Tracking and Monitoring System for PACU
One-Stop Centre for Business Travellers
Continued Commitment on Increasing Ease of Doing Business and Enhancing
Malaysia also ranked 34 th among 134 countries in the Global Talent Competitiveness Index 2021, a report
The OSC is represented by the MITI, MIDA, MOH
Recognizing the seriousness of this, the Government has committed to minimizing the economic impact by helping businesses burdened by unnecessary regulation through the #MyMudah initiative launched on 21 July 2020 and led by Malaysia Productivity Corporation (MPC). Despite these commendable achievements, the government will strive to ensure that Malaysia remains globally competitive in the face of the increasing challenges of the global economy and other uncertainties.
The Next Generation of Industrial Coordination Act 1967
MyMudah uses an evidence-based method to find the best collective solution that will present a win-win situation for the parties involved. The letter is for the use of completion and compliance certificates for buildings and commercial premises based on the concept of 'Silence implies consent' after a period of 28 days.
Eco-Industrial Parks to Drive Malaysia’s Investment Ecosystem
The entity aims to reduce unnecessary regulatory burdens to shape a more favorable business environment. The #MyMudah initiative also resolved issues related to the renewal of travel business and travel agency business licenses, allowing relaxation of existing requirements for licensed tour operators under the Ministry of Tourism, Arts and Culture.
INVESTMENT ENGAGEMENTS, COOPERATION AND AGREEMENTS AT INTERNATIONAL FORA
The ASEAN Comprehensive Investment Agreement
AIFF is in line with ACIA's objective of creating a free and open investment regime in ASEAN to achieve the ultimate goal of economic integration under the AEC through:. i) Improving transparency and predictability of investment rules, regulations and procedures that promote increased investment among Member States; and. ii) Cooperation to create favorable conditions for investments by investors of one Member State in the territory of the other Member States. In addition, AIFF is a good reference for AMS to further improve investment facilitation in the region and thus create a more efficient, predictable and investment-friendly business climate, making it easier for investors to establish activities, run their day-to-day business, and expand their investments.
Asia-Pacific Economic Cooperation’s Investment Experts Group
Investor-State Dispute Settlement
Reform at United Nations Commission on International Trade Law Working Group III
Improve accessibility, (i) transparency of investment
Streamline and expedite (ii) administrative procedures and
Malaysia has signed several Investment Guarantee Agreements (IGAs) and Free Trade Agreements (FTAs) that contain an investment chapter that provides opportunities for foreign investors to initiate ISDS proceedings against Malaysia. Given that Malaysia has several agreements that contain ISDS provisions, MITI, together with the Attorney General's Chambers, has participated in negotiations and discussions in both UNCITRAL and ICSID to ensure that Malaysia remains abreast of the latest developments in the field of ISDS reform and is part of the policy-making process for any future ISDS regime in the international arena.
Brunei Darussalam-Indonesia-Malaysia- Philippines East ASEAN Growth Area’s
UNCITRAL and ICSID have embarked on an initiative to provide members with platforms to negotiate and deliberate on potential reform resolutions for Investor-State Dispute Settlement (ISDS), building on concerns widely expressed against the current ISDS regime.
Indonesia-Malaysia-Thailand Growth Triangle Working Group of Trade and
Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area. i) Agriculture and agro-industry (lead); iii) Halal products and services (leader);. iv) Connectivity of transport and information and communication technology (enabler); v) trade and investment facilitation (enabler); vii) Human resource development, education and culture (promoter). The Working Group on Trade and Investment (WGTI) aims to make the IMT-GT a trade and investment friendly sub-region by 2021.
MAJOR NATIONAL INITIATIVES UNDERTAKEN BY MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY
The working groups serve as implementing branches in their respective focus areas to ensure that top-down and bottom-up approaches to the development and implementation of programs and projects are based on key focus areas. In this regard, he identified three (3) priority strategies which are:. i) simplify technical, administrative and regulatory barriers to trade in goods and services and.
InvestMalaysia Portal is Live
As of December 2021, a total of RM39.2 billion of potential investments (352 projects) were actively evaluated. In addition, a total of 298 major investment projects were identified, including Fortune 500 companies in manufacturing and.
RM39.2 billion
352 projects)
Highlighting input and exchanges from a range of laboratories and targeted engagement with key stakeholders, the Government will announce a policy paper on NIA setting out specific priorities and action plans in the second half of 2022. This monumental reform will position Malaysia as the preferred and resilient investment destination in the region as it undertakes international commitments under the United Nations Sustainable Development Goals and the Climate Change Agenda, Responsible Business Conduct under the APEC Putrajaya Vision 2040, among others, as well as the ASEAN Sustainable Development Goals, which will ultimately benefit the well-being of the rakyat across all segments.
Digital Investment Office
Digital Ecosystem Acceleration Scheme
Extension of Tax Incentive for Shipbuilding and Ship Repair and Principal Hub
Relocation Incentives for Services
Introduction of the Global Trading Centre Incentive
Expansion of Scope for Green Technology Tax Incentive – Rain Harvesting System
Greater Kuala Lumpur
Services Sector – Incorporating the latest ESG practices into services such as corporate governance standards and sustainable investment. High-tech sectors – Integration of advanced technologies with the latest ESG trends such as green data centers.
TRADE FACILITATION
Facilitating Cross-Border Trading Issues Faced by the Industry during the COVID-19 Pandemic Period
The Working Group was initially established under the National Logistics and Trade Facilitation Master Plan
On the regional front, MITI is an active participant in the ASEAN Trade Facilitation Joint Consultative Committee (ATFJCC). From mid-2021, the ATFJCC is focusing on rationalizing the Non-Tariff Measures (NTM) of all AMS through various mechanisms such as the following:. i) Expansion of the list of basic goods in the Memorandum of Understanding on the implementation of NTM for basic goods within the framework of the Hanoi action plan; ii) NTM Toolkit for Cost Effectiveness; iii) monitoring the implementation of the WTO TFA; iv) Resolving outstanding cases within the matrix of actual cases on NTM.
ASEAN Single Window
TWGTAB has been a useful platform for the private sector such as manufacturers, logistics service providers and port operators to escalate issues encountered on the ground. Some of the issues that have been discussed at length and are in various stages of resolution and implementation include: i) SOPs for detention, inspection, seizure and release of containers and appeals for the release of containers including the issue of containers abandoned in ports; ii) Matters relating to permit requirements and inspection fees imposed by permit issuing agencies such as the Malaysian Quarantine and Inspection Services;. iii) Removing the import permit requirement for transhipment activities in federal ports from MOT; iv) Improvement of the Preferential Electronic Certificate of Origin system to allow real-time approval of the Preferential Certificate of Origin by MITI; and. v) Southern Thailand cross-border cargo via Penang Port: Issues and opportunities from MPC.
The COVID-19 pandemic catalysed the fast adoption of e-ATIGA Form D amongst AMS, where the
Amid an increasing number of unregulated issues raised by industry, TWGTAB is also working with the MPC to encourage the establishment of constructive Business to Business (B2B) engagements, apart from current efforts to strengthen Business to Government (B2G) and Government to Government (G2G) engagements to find more effective solutions. The ATFJCC is attended by government officials from all AMS including the private sector represented by the Joint Business Councils.
All Malaysian ports and ports of entry are linked to the ASW environment and are thus able to accept electronic documents from other AMS certificate issuing agencies. By the end of 2020, the second trade-related document, the ASEAN Customs Declaration Documents (ACDD), began to be exchanged by the AMS via the ASW.
Facilitating Trade in a Secure Trading Environment
ICP, which has many similarities with the AEO Trusted Partner program, is involved in the pilot project. In addition, Malaysia will conduct trade and investment missions to strategic economies, which will increase investors' confidence in the country as their main investment destination in the region.
DIGITAL ECONOMY, PRODUCTIVITY AND
COMPETITIVENESS
The value of digital economy activity has seen exponential growth amid the pandemic and Movement Control Order (MCO) restrictions. In support of SPV 2030 and capitalizing on the opportunities brought by the COVID-19 pandemic, the Government of Malaysia has taken a number of initiatives in 2021 to streamline a number of key policies and efforts leading to the eventual development of a digital economy in Malaysia through MyDIGITAL agenda.
THE DEVELOPMENT OF POLICY DIRECTION ON DIGITAL ECONOMY
In this regard, the digital economy has been identified as one of the key areas of economic growth to realize the Shared Prosperity Vision (SPV) 2030, which leads Malaysia to sustainable development through fair and equitable economic distribution and inclusive growth. The establishment of a high-level body, the National Council for the Digital Economy and the Fourth Industrial Revolution (MED4IRN), has also underlined the Government's commitment to providing clear and coherent policy leadership in our digital transformation agenda.
The Policy – MyDIGITAL Agenda
Meanwhile, the National 4IR Policy, launched on 1 July 2021, serves as an overarching national policy to drive coherence towards the country's 4IR agenda, and to manage emerging risks from the 4IR. The National 4IR Policy focuses on ten (10) key sectors, together with six (6) supporting sectors, which have been selected based on their contributions to GDP, as well as their role in influencing the growth of other sectors.
The Governance – The National Council of Digital Economy and the Fourth Industrial
The Second National e-Commerce Strategic Roadmap, 2021-2025
ENHANCING SELLER COMPETITIVENESS AND IMPROVING CONSUMER TRUST THROUGH THE SIRIM TRUSTED MARK SCHEME
Product Reliability and Safety
Besides supporting the economic agenda of SPV 2030 and the 12MP, DIO complements the
International Engagement
COMMERCE DEVELOPMENT
Awareness and Outreach Activities
Outcome of eTRADE Programme 2.0
Commerce
The NESR 2.0 is a five (5) year plan under the National Digital Economy and 4IR Council (MED4IR), under the Ministry of Communications and Multimedia with MDEC as the Project Management Office. 2.7% or more Data will be based on the outcome of the Department of Statistic Malaysia (DOSM).
Malaysia-Taiwan Economic Cooperation Committee
MyExport
The program aims to provide cost-effective and sustainable solutions for MSMEs and mid-level companies to seize new business opportunities in the global market due to the challenges and prolonged uncertainties brought about by the COVID-19 pandemic. eBizLink focused on Online to Offline, with an emphasis on digital marketing, including Key Opinion Leaders. To date, nine (9) eBizLink programs have been completed, including the "JD618 Shopping Festival Digital Expo" in the PRC, the.
Electronic Business Linkage
MATRADE's core service is export promotion, which will assist Malaysian companies to export, establish their presence overseas and increase their visibility in foreign markets through various promotional activities such as participation in trade missions, export promotion missions and international trade fairs. MIHAS 2021 marked the continuation of the event that has been at the center of the global halal trade after more than two (2) years of absence since April 2019.
MIHAS 2021 generated total sales of RM2.13
Given the challenges posed by the COVID-19 pandemic, which has had a negative impact on the global economy since 2020, and international travel restrictions due to the closure of international borders in most countries, organizing a physical business networking program would be impossible. The virtual showcase saw the participation of 549 exhibitors from 43 countries including Malaysia, the top five (5) foreign countries (by number of exhibitors) were: Indonesia, PRC, Philippines, ROK and.
PRODUCTIVITY PROMOTES PROSPERITY
Separately, 17 Knowledge Hub sessions were organized by MATRADE, consisting of four (4) Preview Week sessions and 13 plenary sessions. In collaboration with strategic partners, the Preview Week lead-up sessions were held from August 11 to September 1, 2021 to provide the audience with brief insights into the relevance of Halal for SMEs, exports, technology adoption and sustainability.
Productivity Performance
Malaysia's productivity recorded a significant increase of 6.0% as the country's GDP recorded growth of 3.1% after a significant decline of 5.6% in 2020. The improvement was evident in the productivity performance of the main economic sectors (Exhibit 4.5), which are the biggest contributors to national labor productivity.
Productivity and Competitiveness
The Organization for Economic Co-operation and Development's (OECD) Productivity Working Papers published in December 2021 on "The Human Side of Productivity: Uncovering the Role of Skills and Diversity for Firm Productivity" support MPC's talent development programme. The initial establishment of the AiF caters to the increasing demand in the semiconductor industry.
REGULATORY REFORMS
Regulatory Quality
When facilitating trade, border-related regulations lead to an increase in the cost of a product, which is passed on in the product price. Strategies to increase knowledge and technical competencies among officers remain a key agenda in the document.
Standardisation
This is the main reference document for the Primary Healthcare Laboratories Accreditation Scheme (PHLAS) which was launched on 1 February 2021. The speaker for the workshop was Mrs Fariza Wan Abdullah from the Accreditation Department, DSM.
Accreditation
The MS Halal Tour 2021 program was held in collaboration with the Islamic Religious Department of Johor, Sarawak, Kedah and Selangor in October and November. The MS Halal Tour 2021 program was to assist the halal food products and premises industry in the four (4) states to meet the requirements of MS and MS which came into effect along with two (2) other halal certification reference documents, namely Malaysian. Handbook of Halal Certification Procedures and Halal Management System in Malaysia.
MALAYSIA AUTOMOTIVE ROBOTICS AND IoT INSTITUTE PROGRAMMES TO ENHANCE DIGITALISATION WITHIN BUSINESSES
This program is also done with the cooperation of Department of Islamic Development Malaysia, Food Safety and Quality Division, Ministry of Health Malaysia and National Pharmaceutical Regulatory Division. In addition, participants were also exposed to the link between halal and food safety and cosmetics.
MARii Enterprise Resource Planning
MARii Unified E-Commerce and Marketplace
MARii introduced the Enterprise
Planning (ERP)
MARii Additive Manufacturing Technology Centre
The rollout of several key initiatives from MITI, MATRADE and other supporting agencies will drive Malaysia's economic recovery in the coming years and put the country firmly on track to become a high-income digital economy. Adopting new ideas, concepts and approaches is another area where MITI believes it will increase Malaysia's competitiveness globally.
ECONOMIC PROSPECTS
GLOBAL
Global Economy to Stay on Expansionary Path
COVID-19 May Be Treated Like Normal Flu by 2023
Emerging and Developing Economies to Grow By 4.4%
The World Bank in its Global Economic
For advanced economies, the three (3) major players – the United States (US), Europe and Japan are expected to remain on an expansionary path due to their strong economic fundamentals.
Global Supply Chain Constraints Expected to Ease
Commodity Prices to Normalise, Brent Crude Price Projected at USD60-70pbd
Monetary Policy Tightening Shifts to Higher Gear
MALAYSIA
Mask-off
Domestic Demand as the Backbone of the Economy
External Trade Performance to Stay on the Upside
Labor Market Improvement to Push Down Jobless Rate
Stable Inflationary Pressures
- TRADE WITH THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN), 2020-2021 COUNTRY
- TOP TEN TRADE PARTNERS IN THE EUROPEAN UNION (EU), 2020-2021 COUNTRY
- TOP TEN TRADE PARTNERS IN THE ASIA-PACIFIC ECONOMIC COOPERATION (APEC), 2020-2021 COUNTRY
- TRADE WITH EUROPEAN FREE TRADE ASSOCIATION (EFTA), 2020-2021 COUNTRY
- TOP TEN TRADE PARTNERS IN THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD), 2020-2021 COUNTRY
- TOP TEN TRADE PARTNERS IN AFRICA, 2020-2021 COUNTRY
Note: Top countries are sorted by Total Trade Value for 2021 Source: Department of Statistics Malaysia (DOSM).
MITI
REPORT 2021
