How private and SME businesses can thrive under the Malaysia MADANI roadmap

1. In 22 September 2023, Prime Minister Datuk Seri Anwar Ibrahim made his debut address at the United Nations General Assembly (UNGA) in New York and took Malaysia Madani to the world stage. The Prime Minister’s speech on the country’s roadmap under the Malaysia Madani framework was well received and helped raise the country’s profile on the international stage.

2. According to the Chief Economists Outlook, 60% of economists expect the global economy to weaken in the coming year. The Madani Economy Framework is timely in providing a roadmap to boost Malaysia’s economy amid slowing global momentum and continuing economic uncertainty. The launch of the New Industrial Master Plan (NIMP) 2030, which serves as a roadmap for the country's economic development over the next ten years, and the National Energy Transition Roadmap, which aims to accelerate the country’s green and sustainable growth agenda, if well implemented, will drive domestic growth and spur the growth of small and medium-sized enterprises (SMEs).

3. The NIMP 2030 is instrumental in supporting the Madani Economy framework. It emphasises the role of SMEs as key contributors to economic growth, targeting to double SME exports to 25% in seven years. SMEs make up roughly 97% of the Malaysian economy, accounting for 48% of employment and contributing 38% of total Gross Domestic Product (GDP). The Government recognises that support is needed in order for SMEs to achieve the goals of the NIMP 2030. In Budget 2023, the Government focused on initiatives to support SMEs, from financing to funding, tax cuts and even a Digitalisation Grant Scheme.

Southeast Asia to outpace China's GDP growth and foreign investment

1. Southeast Asia is likely to outpace China’s economic growth and inflow of foreign direct investments over the next ten years, a new study led by a Singapore-based think tank showed, as the region benefits from growing demographics and a global supply chain shift.

2. The Southeast Asia Outlook 2024–2034 report, which was released on August 1 by Angsana Council, US consultancy Bain & Company, and Singapore’s DBS Bank, projected the gross domestic product of six regional economies: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

3. According to the study, GDP for the six key economies is expected to increase by an average of 5.1% annually until 2034, outpacing China’s projected growth of 3.5–4.5%.

4. By country, Vietnam is expected to lead with 6.6%, followed by the Philippines with 6.1%, while Singapore—the slowest among the six—is expected to manage 2.5%.

Meteor Lake Shortages Prompt Intel's Costly Ireland Ramp-Up Amid Apollo Deal

1. Buyout firm Apollo Global Management (APO.N),  will acquire a 49% equity interest in a joint venture related to Intel's (INTC.O),  new manufacturing facility in Ireland for $11 billion, the companies said on Tuesday.

2. Apollo will acquire the stake in the Fab 34 joint venture in Leixlip, Ireland, the U.S. chipmaker's first high-volume location for its Intel 4 manufacturing process using extreme ultraviolet lithography machines.

3. The deal, expected to close in the second quarter, would allow Intel to redeploy parts of its investment in the project to other parts of its business, the company said.

Fastest-growing countries in Southeast Asia and FDIs Embracing Innovative Technologies

1. A report titled "Navigating high winds: Southeast Asia Outlook 2024-34" was released on August 1, compiled by the Development Bank of Singapore, consulting firm Bain & Company, and Angsana Council.

2. The report forecasts the expected growth of the six largest Southeast Asian economies of Vietnam, Singapore, Malaysia, the Philippines, Indonesia, and Thailand.

3. According to the report, over the next decade, Southeast Asia will likely grow faster than the previous decade, with higher GDP growth and higher total foreign direct investment (FDI) than China. Southeast Asia’s growth will be driven by stronger domestic economies and a resurgence in investment catalysed by China + 1 supply chain shifts.

4. Specifically, Southeast Asia is predicted to grow GDP by 5.1 per cent, on average, in the next decade. Vietnam and the Philippines are expected to be the faster-growing countries, with Vietnam remaining in front.

5. "Vietnam is forecast to maintain a GDP growth rate of 6.6 per cent in the 2024-2034 period and its export-oriented economy is well-positioned to capture China + 1 opportunities," the report said. "The country also boasts a highly diverse source of FDI, productive interprovincial competition, and high-quality workforce and education levels."

6. To grow faster than the forecasts, Southeast Asia should invest in new growth sectors, foster tech-enabled disruptors, expand capital markets’ breadth and depth, and accelerate the green transition, the report added. The region should also commit to growth-friendly multilateral initiatives, including the Regional Comprehensive Economic Partnership, the Belt and Road Initiative, and a transnational electricity grid.