MY Morning Wrap | Uzma Wins Contract for Offshore Platforms Work in East Malaysia

Malaysia's international reserves experienced a substantial increase of US$1.4 billion on July 31, marking the most significant rise since November 2023, as reported by Bank Negara Malaysia (BNM). The reserves climbed to US$114.7 billion from US$113.3 billion in just a fortnight, indicating a robust position that can finance 5.5 months of the country's imports of goods and services and is equivalent to covering its short-term external debt.

The National Chamber of Commerce and Industry of Malaysia (NCCIM) has expressed confidence in the positive trajectory of the ringgit, viewing it as a solid platform to reinforce the nation's economic expansion. NCCIM President Datuk Seri N Gobalakrishnan attributed this favorable trend to the Madani government's capable governance and economic policymaking. The chamber remains upbeat about Malaysia's potential to attract global investments and is committed to supporting the government in maintaining this economic momentum. The NCCIM praised the government's economic and financial policies that have contributed to the ringgit's robust performance, reflecting increased confidence among international investors in Malaysia's economic stability and policy direction.

Tesla Inc has put a halt to its plans for establishing manufacturing facilities in Malaysia and other Southeast Asian countries, according to a report by The Nation, a Thai online news portal. The prominent electric vehicle maker is now concentrating its efforts on expanding charging station infrastructure in the region, with factory plans suspended globally, barring ongoing operations in China, the United States, and Germany. This strategic shift comes despite previous incentives offered by Malaysia, including exemption from import tariffs for Tesla vehicles assembled abroad, no requirement for a local partner, and relaxation of the Bumiputera equity rule. Tesla had begun selling its vehicles in Malaysia and had commitments to set up its headquarters and charging stations across the country. The change in investment strategy aligns with Tesla's broader withdrawal from new factory investments in Asia and aligns with the company's recalibrated global expansion approach.