Digital resilience as a practical blueprint for SMEs in Malaysia

1. Over the past two years, Malaysia has counted roughly one million micro, small and medium enterprises (MSMEs). Together, they generate close to two-fifths of national GDP and supply nearly half of all jobs. According to the SME Association of Malaysia, as many as 90-95 per cent of firms with more than ten employees have already moved key operations online. Whether those investments translate into lasting advantage now hinges on how confidently businesses turn digital promise into measurable performance.

2. Government policy is firmly behind them. National programmes such as the Malaysia Digital Economy Blueprint and the forthcoming ASEAN Digital Economy Framework Agreement aim to deepen connectivity, broaden market access and raise the region's collective digital skill base. The opportunity for growing Malaysian firms is therefore to convert high-level ambition into everyday gains that lift productivity at scale.

Malaysia’s Global Minimum Tax: Key Implications for Multinationals

 1. Malaysia has implemented the Global Minimum Tax (GMT) as part of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

2. Under Malaysia’s GMT framework, two key tax mechanisms have been introduced to ensure compliance with the 15 percent minimum effective tax rate. The Domestic Top-up Tax (DTT) applies to Malaysian entities, ensuring they meet the required tax threshold, while the Multinational Top-up Tax (MTT) is designed for MNEs operating in Malaysia to align their global income taxation with international standards.

3. Companies falling below this threshold must file a top-up tax return, with transitional penalty relief available to support businesses during the initial implementation phase.

4. This framework, effective from January 1, 2025, is part of Malaysia’s commitment to aligning its tax policies with OECD guidelines and maintaining competitiveness within the ASEAN region.

Helping small businesses thrive in the digital economy

1. Leaders across the public and private sectors have long recognized the importance of supporting small businesses. Across OECD countries, small- and medium-sized businesses (SMEs) represent around 99% of all firms, are a main source of employment and generate 50% to 60% of value added on average.

2. But it isn’t just about economies, it is about stronger communities and greater social inclusion. And by helping small businesses accelerate their digital journeys, it has a multiplier effect in building much wider access to the digital economy.

Small businesses are key to a more sustainable and inclusive world. Here's why

1. Small and medium-sized enterprises (SMEs) are a force to be reckoned with. They make up 90% of businesses globally, create two out of every three jobs worldwide, support the livelihoods of over two billion people, and are indispensable to the smooth functioning of global supply chains.

2. Despite their enormous impact, many are not yet fully engaged on environmental, social, and governance (ESG) issues. It is easy to understand why. The EU, for example, classifies small businesses as those with 11-49 people and revenues below €10 million a year. A medium-sized business has 50-249 people and annual revenues of up to €50 million.

3. Owners and managers in such firms have a lot on their plate, and fewer resources than their larger rivals. They may feel they lack the time, knowledge, capacity or funds to tackle problems like the climate crisis or discrimination against minorities. Others simply do not know where to start. But we do need SMEs to work for a better world – for their own sake and for everyone.

Global FDI in the Food Industry

 1. Between 2019 and 2023, the food sector was the twelfth largest FDI sector in terms of the number of greenfield investments. The food sector accounts for 3.3% of global greenfield FDI projects.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. Combined, the top ten destination countries account for 52.6% of total food FDI projects.

Global FDI in the Biotechnology Industry

 1. Between 2019 and 2023, the biotechnology sector was the twenty-fifth largest FDI sector in terms of the number of greenfield investments. The biotechnology sector accounts for 0.6% of global greenfield FDI projects.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. Combined, the top ten destination countries account for 69.4% of total biotechnology FDI projects.

MQTT vs HTTP for IoT: Detailed Protocol Comparison

1. As the IoT explodes with connected devices, selecting the right communication protocol is all-important to building efficient and scalable IoT solutions. MQTT vs. HTTP are frequently discussed protocols in this regard. Both have their own advantages and ideal applications.

2. Consider a manufacturing plant that uses a real-time asset monitoring solution based on MQTT. On the other hand, a smart home setup might use HTTP for periodic data uploads from smart devices. However, HTTP is not limited to periodic data transfers, nor is MQTT reserved only for real-time asset tracking.

3. Let's review each protocol’s features and how it works in different IoT settings to determine the best uses for each protocol. This article compares MQTT vs. HTTP for IoT applications based on benchmarks. Here, we'll explore the pros and cons of each protocol and discuss their ideal applications.

Making Strategic Sourcing Decisions Based on Total Cost of Ownership

1. You make a product in China. You went it alone. You found someone on the internet and they promised they could manufacture your product to your standards in the time required for the lowest price. Unfortunately, they also made an absolute hash of it.

2. If that wasn’t bad enough, you spent so much time on the phone sorting out quality issues and shipping problems that the “low cost” of the product skyrocketed because of the extra costs of fixing the quality problems (which were stopgap at best) and air freighting your product to customers (an unsustainable solution).

3. You’ve run into a perfect example of what happens when the lowest cost is the ultimate goal rather than looking at the whole picture.

4. As you probably guessed, we certainly aren’t bashing sourcing from China or anywhere overseas. There are great, quality manufacturers and suppliers to be found in China, Vietnam, India and elsewhere. We are, however, believers in approaching sourcing decisions, whether overseas or domestically, from a total cost of ownership (TCO) point of view. Properly used, TCO is a tool that can serve as a vital layer in the decision-making filter of choosing a contract manufacturer or supplier.

How to do Cyber Security Awareness Training for Small Business

1. Imagine if you couldn’t access your computer systems or data. It could lead to an existential threat. Unfortunately, many companies have already gone bankrupt after cyber attacks (e.g. Bicycle manufacturer Prophete, KNP Logistics, Financial services company Travelex, Cloud Nordic, window manufacturer Swiss Windows).

2. That’s why prevention is necessary. One key element of required measures: Cybersecurity awareness training. It can help your small business withstand cyber risks.

3. As a small business, you interact daily with your team, customers, potential customers, vendors, government agencies, and many other stakeholders. Organizations don’t operate in bubbles.

4. To build and maintain these relationships, digital communication channels are essential. We can’t avoid using the internet or email; it’s a business necessity to stay connected and reachable.

5. While these tools are useful, they leave your business exposed and vulnerable. That’s because malicious actors also use these channels for their fraud attempts.

6. As long as humans use computers and apps, we are targets because every good hacker knows it’s easier to hack humans than systems. This fact is underscored by the FBI Internet Crime Report, which states that fraud attempts via email (phishing) are the top crime type.

7. In other words, cyber risks are unavoidable. The good news is that it’s a risk you can do something about.

America’s industrial transformation needs a Marshall Plan for small businesses and their workers

1. There’s broad agreement on at least one thing about this year’s election outcome: Americans want more good jobs and an affordable cost of living, especially for working families. A question now emerges: Can our nation’s leaders leverage a budding industrial renaissance that hinges, far more than we recognize, on the capabilities of America’s small businesses and their workers? 

UNCTAD: FDI trends in H1 2024

 1. In the first six months of 2024, UNCTAD's preliminary data shows there was a slight (1%) increase in global foreign direct investment (FDI).

2. UNCTAD’s Global Investment Trends Monitor suggests global FDI has remained weak in the first six months of 2024. Excluding European conduit economies that hold investment funds before these reach their final destination, global FDI rose by just 1%.  

3. The value and number of international project finance deals decreased by 30%, keeping aligned with 2023’s downward trend. The value of cross-border mergers and acquisitions also decreased by 5%. High financing costs and inflationary pressures were the main drivers of the weak figures. The marginal 1% increase, at least, halts the downward slide of the past two years and signals a more optimistic outlook on the future of financial conditions.

4. The trends differed across regions and economies, where some were bolstered by a surge in global semiconductor investment.  

Malaysia-Canada Trade Surges 41% Amid Strengthening Economic Ties, as Malaysia Explores New Free Trade Deals to Mitigate Geopolitical Risks

1. Malaysia and Canada are deepening their economic ties, with bilateral trade reaching RM8.05 billion as of August 2024, marking a significant 41 per cent increase year-on-year, according to the Ministry of Investment, Trade and Industry (MITI).

2. MITI reported that bilateral trade surged by 25 per cent following Canada’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which also facilitates duty-free access for goods, eliminating tariffs on Canada’s key exports.

3. “This growth was driven by a 68.1 per cent surge in Malaysian exports to Canada and a 16.8 per cent rise in imports from Canada, with key sectors such as clean technology, agriculture, and aerospace fostering closer trade relations,” the ministry said in a statement to Bernama, here.

The Future Of Manufacturing: Technology Trends For 2025 And Beyond

1. The manufacturing sector is undergoing a technological and sustainable revolution. Industry 4.0 technologies like AI, IoT, and digital twins are enhancing efficiency, resource optimization, and eco-friendly practices. 

2. By 2025, software innovations will focus on carbon neutrality, energy efficiency, and cloud solutions, significantly reducing environmental impacts. AI drives smart production, while IoT transforms production lines into intelligent systems. 

3. Decentralized manufacturing and microfactories increase supply chain agility, despite challenges. The electrification of vehicle fleets and the integration of digital ecosystems in cars highlight mobility sector trends. However, manufacturers must address cybersecurity and balance cost-efficiency with innovation to adapt to global challenges

4. Here are FORBES and Forrester’s prediction for manufacturing in 2025 

Bắc Ninh: Vietnam’s Top FDI Location and Emerging Industrial Real Estate Hub

1. In the first nine months of 2024, Bắc Ninh province has established itself as a frontrunner in attracting foreign direct investment (FDI) within Vietnam, achieving over US$4.2 billion in investments.

2. This notable influx is largely credited to a robust investment climate characterized by advanced infrastructure and a skilled labor force, which positions Bắc Ninh as a highly appealing destination for foreign investors. 

3. The provincial Department of Planning and Investment reported that foreign investors committed US$1.56 billion to 339 projects, marking an impressive year-on-year increase of 82.2% in total investment and a 28.4% rise in project numbers.

4. Further reinforcing its investment appeal, Bắc Ninh saw 147 FDI projects adjusting their capital expenditures over the same period, leading to an additional allocation of US$2.68 billion. This flexibility demonstrates the province’s proactive approach to fostering business growth and optimizing the operational environment for foreign enterprises. 

Pakistan’s Battle for Gulf Investments: Economic Crises and India’s Growing Influence

1. Pakistan’s economic situation is teetering on the brink as the country is facing a perilous financial crisis, scrambling to secure external financing to meet growing obligations. The country has received only temporary relief from a US$7 billion staff-level agreement with the International Monetary Fund.

2. Pakistan’s financing need for the 2023–2024 fiscal year is estimated at US$25 billion. To bridge this gap, Pakistan has turned to its traditional allies — Saudi Arabia, the United Arab Emirates (UAE) and China — to seek additional financial support, debt restructuring and foreign direct investment (FDI). Pakistan aims to re-profile US$12 billion in bilateral debt, with US$3 billion owed to the UAE, US$4 billion to China and US$5 billion to Saudi Arabia. The goal is to extend the repayment of these loans over the next three to five years, providing Pakistan with a more stable financial foundation.

3. Pakistan has opened the door to Gulf countries, especially Saudi Arabia and the UAE, through the Special Investment Facilitation Council — a platform to attract FDI in key sectors such as agriculture, mining, energy and infrastructure. FDI increased to US$1.9 billion in 2023–2024 fiscal year compared to US$1.6 billion in 2022–23 fiscal year, a 17 per cent increase. Although China remains the largest contributor, there has been an increase in FDI from Saudi Arabia and UAE, rising from US$1 million to US$10 million over the 2022–2023 fiscal year.

4. Saudi Arabia and the UAE have shown interest in agriculture and mining, sectors where significant investment opportunities exist. These investments align with their broader strategies — Saudi Arabia’s Vision 2030 and the UAE’s post-oil economy strategy — to diversify their economy away from oil dependency and expand their global influence. By investing in Pakistan, both nations seek to strengthen their diplomatic ties and economic presence in South Asia, tap into new markets and expand their geopolitical reach.

UAE Sees 33% Surge in Greenfield FDI Capital Inflows in 2023 and takes second place globally in new FDI projects at 1,323

1. The UAE ranked second globally in greenfield FDI projects in 2023, with 1,323 project announcements, showing a 33% rise compared to 2022, according to the UNCTAD 2024 World Investment Report.

2. FDI inflows into the UAE reached $30.688 billion in 2023, marking a 35% year-on-year increase, while FDI outflows decreased to $22.328 billion.

3. Key sectors driving the growth of greenfield investments included business services, software, and IT, contributing to a 7.5% rise in jobs and a 37% increase in capital inflows, according to UAE Ministry of Investment officials.

McKinsey : Supply chains: Still vulnerable

1. Supply chain disruptions keep on coming. From missile attacks on commercial shipping in the Red Sea to automotive production delays following floods in Europe, global supply chains continue to experience instability. Meanwhile, trade tensions are choking the movement of semiconductor products, manufacturing equipment, and critical materials.

2. The latest McKinsey Global Supply Chain Leader Survey suggests that problems like these remain the norm, not the exception, with nine in ten respondents saying they have encountered supply chain challenges in 2024 (see sidebar, “About the research”). More worryingly, there are signs that, when it comes to supply chain resilience, companies are taking their foot off the gas. The survey results identify considerable gaps in the ability of organizations to identify and mitigate supply chain risks, with few new initiatives aimed at addressing those weaknesses.

3. The biggest gap could be the one at the top of the organization. Few surveyed supply chain executives believe that their boards have an in-depth understanding of supply chain risk. Only a quarter have formal processes in place to discuss supply chain issues at board level. All this could leave companies dangerously exposed to future disruptions.

Sino-EU cooperation

1. The European Union's competitiveness report released by Mario Draghi, a former European Central Bank chief.

2. The report, in a way, is an acknowledgement of China's phenomenal transformation over the past decade toward a more sustainable and innovation-driven economy. The sheer fact that China is mentioned many times in the report and that the EU now sees a huge gap not just with the United States but also with China is telling, especially because many Europeans still see China as a country providing cheap labor — although that is no longer true, according to the Draghi report.

3. A decade ago, when China announced its strategic shift, from investment-driven quantitative economic growth to innovation-led high-quality development, not many people took it seriously. Today, China has become a global leader in research and development, renewable energy including solar and wind energy, and electric vehicles (EVs).

4. China is catching up fast with the industrialized world, partly by learning from the EU and other developed economies, but more importantly through massive investments in R&D. Who would have thought just a decade ago that China's robot density would rank fifth in the world, trailing South Korea, Singapore, Germany and Japan but ahead of the US and the average EU member state?

Supply Chain Cost Reduction Strategies

 At this point we've seen natural disasters, geopolitical tensions, and economic uncertainties constantly threaten the seamless flow of necessary components. With this, the cost to maintain a solid supply chain has continued to inflate, leaving procurement experts on a constant search for reduction opportunities. It's stressful, we know. But we can help. Let's go over a few strategies that are worth exploring.

Global FDI in the pharmaceuticals industry

 1. The US is the leading destination market for greenfield pharmaceuticals FDI, while it is also the top source market. 

2. Between 2019 and 2023, the pharmaceuticals sector was the fourteenth largest FDI sector in terms of the number of greenfield investments. The pharmaceuticals sector accounts for 2% of global greenfield FDI projects.

3. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. 

4. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

5. Combined, the top ten destination countries account for 57.1% of total pharmaceuticals FDI projects.