00:00Talking about the economic backdrop for Malaysia first, I mean, you saw that advanced estimates,
00:06it looks like you guys could handily beat the 2025 growth projections.
00:11Are you going to see more of the same for 2026?
00:13And might that cause an upward revision in the growth projection?
00:16Well, thank you, Avril.
00:18I will begin by saying the economy madani and through 13 Malaysia plan
00:24have proven to be effective for us to face through these geopolitical challenges and whatnot.
00:31So that's why when we look from the performance of 2025,
00:37it shows that we remain resilient, competitive at the global segment.
00:43But at the same time, definitely moving towards 2026,
00:46as what we mentioned in our 13 Malaysia plan,
00:50it's going to be about digital economy,
00:52is going to be the focus on AI.
00:54And definitely, we are looking towards all this higher value
01:01or the value creation-based economy for us to manoeuvre all these challenges ahead.
01:07Yeah, so with all these measures on the way,
01:10that growth projection for this year, I think, is 4% to 4.5%, correct me if I'm wrong.
01:14Yeah.
01:15Is there any room for revising it upwards then,
01:18given how you're seeing the tailwinds evolve for the Malaysian economy?
01:21No, because, I mean, we have to look into more overall overview.
01:27Definitely, in terms of domestic economy,
01:30we believe we have that strength.
01:32But at the same time, we cannot rule out these ongoing geopolitical challenges.
01:37So that's why I think it's not for me to revise easily the numbers,
01:42but definitely showing 4% to 4.5% shows how confident we are
01:47to continue, to say, to tell to the world that Malaysian economy is still open.
01:52We are actually going to be competitive.
01:55And definitely, in 2026, as the Minister of Economy,
02:00I want to see we, one more time, to beat our own prediction on economic growth.
02:06On those geopolitical concerns that you raise,
02:08how worried are you that chip tariffs could escalate?
02:12And is the Malaysian government ready to provide support in that event
02:17for the semiconductor industry?
02:18Well, like, when we first, I mean, in terms of how we continually engagement
02:28and negotiation with the US, we managed to bring down the reciprocal tariff
02:32from 25% to 19%.
02:35So, in that sense, definitely, it's within our interest
02:38to provide the most conducive and productive environment for our suppliers.
02:43And it also shows our certainty to continually engage with the US, China, and whatnot.
02:51But definitely, when we talk about semiconductor,
02:55Malaysia is number six in the world.
02:58But our strength more towards the back end, about the packaging, about the testing.
03:04But that's why moving ahead for us to remain competitive,
03:08we need to move from the back end to the front end.
03:11So, that's why I think in terms of the cheap design,
03:14this is what we are actually trying to uplift towards the value creation economy.
03:20Because if not, if we remain complacent with what we have today,
03:25things are getting tougher and getting more challenging.
03:28So, that's why for me, it's not just to talking about what will happen in the next few months,
03:35but also moving up the value chain so that we are going to be resilient for the next two, three years.
03:41On that, moving up the value chain for chips, how would you rate the progress?
03:46What more needs to be done, do you think?
03:48Well, last year, we made some breakthrough.
03:50I think in terms of the agreement with ARM Limited, for example.
03:55Definitely, this year is the year of execution.
03:57For me, even we have managed to secure understanding with ARM for them to train 10,000 of our talents.
04:07It's no longer about quantity, but it's also about the quality.
04:11So, in order for us to ensure the value, the way for us to move higher value chain,
04:17we have to ensure our talents will meet the requirements by the industry.
04:22And doing that definitely is a dynamic thing.
04:25You are talking about technology.
04:27The breakthrough will happen from time to time.
04:30So, we need to actually on par with the progress of technology changes.
04:34So, along with all this, would you say that the government's focus in terms of the workforce preparation
04:40would be about upskilling and accelerating those initiatives?
04:45Yeah, definitely, because when we talk about the needs to meet the industry needs,
04:53Malaysia is known for having good talents, educated talents.
04:58But as we said about technology, things changes continuously.
05:05So, that's why for the Malaysian approach, definitely in terms of the masters,
05:11we do have TREP, the technical training program.
05:14But at the same time, for the higher end or the niche segment,
05:20that's why we need to even make the breakthrough,
05:22having the talent training program direct with the industry at the world stage,
05:29at the world standard, so that Malaysia is ready to take more opportunities
05:34in terms of semiconductor and the chip design.
05:37And that's a work in progress.
05:38I wonder if I could get your thoughts also on, when it comes to these chip exports,
05:45is it a concern that perhaps the front-loading effect that some say was helping to support these shipments,
05:53does that wane?
05:54And what extent do you think the strength of the ringgit could curtail this as well?
05:59Well, definitely, when ringgit gets stronger, for us, it's good.
06:04It also shows confidence about our economy.
06:08But despite with the ringgit strengthened, we can see the exports last year actually went up.
06:14So definitely, what we are providing is no longer about cost competitiveness, but also the values.
06:23So that's why I think Malaysia has to actually really look into how can we move up the value chain
06:31because to remain competitive, especially in this context, it's no longer about being cost-effective,
06:39but how do we actually can penetrate the market and provide the niche and the values
06:45so that we will be part of the global supply chain.
06:48Data centres, they've been booming in Malaysia, but this is also coming at a time
06:53when the power grid does look quite strained.
06:55Do you see that as a headwind?
06:57Well, in terms of the energy, I came from Petra in my last responsibility.
07:08Looking at how do we manage the utilities, definitely our role in terms of energy is to ensure
07:16we remain focused, committed to our trilima about providing the affordability, sustainability
07:24and the security of the energy supply.
07:26So far, in the past 20-30 years, Malaysia has shown a strong commitment.
07:32And now, we are moving towards energy transition.
07:35Definitely, that will also attract more investment to come in.
07:39And we are also liberating the process.
07:42Now, you can actually go through the third-party access to actually allowing the data centre
07:49to procure energy directly with our developer, the RE developer.
07:55So, that's why I think it's like an opportunity not to be missed.
07:59Definitely, we have to continue to uphold to our standards, making sure energy remains affordable
08:06and remains secure.
08:07But at the same time, data centre coming in, in terms of the effect of having another utility.
08:15Data centre will become our next utility.
08:18Speaking of incoming investments, we are also looking at the opportunities in the special economic zone in Johor.
08:25What are you seeing in terms of investor interest now?
08:27Is it exceeding your expectations, perhaps?
08:30It is exceeding everyone's expectation.
08:32I mean, according to the report.
08:34Are there some numbers that you can provide?
08:36Up till quarter three, 2025, we have got approved investment up to RM68 billion.
08:44I mean, when we plan in the early stage, we talk about RM100 billion throughout the entire process
08:53for our 10 years target.
08:55But now, I mean, within a year, we already locked in in terms of approved investment, RM68 billion.
09:01But definitely, I mean, I have spoken to my counterpart from Singapore.
09:07We need to move from planning stage to the execution stage.
09:11How much of this approved investment can be realized this year, for example.
09:15So, definitely, more works need to be done.
09:18We are going to roll out our blueprint and master plan by end of March
09:23because we need to streamline, we need to actually make things really in operation.
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