MY Morning Wrap | MN Holdings and Reservoir Link Form Joint Venture for Solar Project on Pulau Tioman

The EU Ambassador to Malaysia, Michalis Rokas, has indicated that the resumption of negotiations for the Malaysia-EU Free Trade Agreement (MEUFTA) could be imminent, with talks potentially restarting within a couple of months. Discussions on the MEUFTA, which began in 2010 but stalled over issues such as palm oil and sustainability, have gained momentum following Malaysian Prime Minister Anwar Ibrahim's push during a trade mission to Germany. Rokas emphasized the strong trade ties between the EU and Malaysia and the benefits realized by other countries that have entered into FTAs with the EU, suggesting that an agreement could be transformative for Malaysia's economy. With the EU being Malaysia's fourth-largest trading partner, both parties see the potential for cooperation in industries such as manufacturing and semiconductors, with the FTA providing a stable framework amidst global uncertainties.

Malaysia's Finance Minister II, Datuk Seri Amir Hamzah Azizan, has outlined a strategy to utilize the significant liquidity held by government-linked investment companies (GLICs) to fuel economic growth and support structural reforms under the Economy Madani framework initiated by Prime Minister Datuk Seri Anwar Ibrahim. With RM1.8 trillion in liquidity, the GLICs—comprising prominent funds such as EPF, Khazanah Nasional, KWAP, PNB, LTH, and LTAT—could become a major force in domestic direct investment (DDI). The Government-Linked Entities Activation and Reform Programme (GEAR-uP) aims to enhance GLICs' capacity to invest domestically, thereby driving equitable benefits for Malaysians and creating new economic ecosystems. Additionally, Amir Hamzah has plans to expand Malaysia's intergenerational wealth fund, Kumpulan Wang Amanah Negara (KWAN), as part of efforts to improve the country's fiscal space and address other economic issues, including the retargeting of RON95 fuel subsidies. More insights on these initiatives will be available in the upcoming Aug 12, 2024 issue of The Edge Malaysia weekly.