Greetings from MASSA !

In this August newsletter, we are pleased to bring you a Country Feature on the Federal Republic of Somalia. We thank the good office of Embassy of the Federal Republic of Somalia in Malaysia & its Commercial & Industrial Office for this Country Feature. The Country Feature highlights its emerging market potential, and a variety of investment opportunities, among which include the livestock & fishery value chains, and the financial & capital markets.

MASSA is also pleased to have an article from the Cross Border Investment Division, Malaysian Investment Development Authority (MIDA). This article highlights the Malaysia-Singapore Business Development Fund (MSBDF), administered by MIDA and Enterprise Singapore. It details how Malaysian businesses can access this Fund, together with Singapore counterparts, when exploring business and investment opportunities in third countries.

In the month of June, MASSA organised a Visit to the Selangor Human Resource Development Centre (SHRDC) in conjunction with SHRDC’s Malaysian Smart Factory 4.0 Discovery Day on 11 June, and a Sharing Session on e-Invoicing Implementation at Finexus Campus on 12 June. These meetings were attended by MASSA members and other members of the business community. These sessions aimed to introduce & avail to participants the developments across Smart Factory technology, cost-effective Digital Transformation, Generative AI applications and insights & solutions for the National E-Invoicing Initiative (NEI).

MASSA’s 33^rd Annual General Meeting convened on 24 June 2024. It was hosted by MASSA President, YBhg Tan Sri Azman Hashim, at Bangunan AmBank Group. The MASSA 2023/2024 Annual Report can be read here: www.massa.net.my/massa-2023-2024-annual-report/ (or in this issue’s Diary of Events). MASSA was also represented by its members at the Budget 2025 MITI Dialogue Session on 6 August 2024, chaired by YB Senator Datuk Seri Utama Tengku Zafrul Abdul Aziz, Minister of Investment, Trade and Industry.

MASSA made Courtesy Calls on H.E. Lisualdo Gaspar, Ambassador Extraordinary and Plenipotentiary of the Democratic Republic of Timor-Leste to Malaysia on 7 August and also the First Secretary and Head of the Commercial & Industry Office of the Embassy of the Federal Republic of Somalia on 14 August wherein MASSA & its representatives were appraised of the latest developments and inbound investment & partnership focuses of the respective countries.

We want to thank our members, ex-officio, contributors, and partners for your support to date. MASSA remains committed to present to members, trade and investment leads from the South-South countries, as well as keep members appraised of the current and future-forward developments in Malaysia, and the region.

In view of this, several events to keep an eye out for are in the works. Do look for our weekly Circulars and postings in our website www.massa.net.my. We look forward to meet members at MASSA’s upcoming events.

This Editorial message would not be complete without the mention of the passing of Tun Michael Chen Wing Sum. Tun Michael was MASSA’s founding Vice President since MASSA’s inception in 1991. We will cherish fondly the memories of his steadfast commitment and untiring efforts to promote the cause of South-South business relations.

Ng Su Fun

Editorial MASSA

Tan Sri Azman Hashim
President
MASSA 

Global growth for 2024 is projected to be between 2.6 – 3.2% this year according to forecasts by IMF and World Bank, while Asia’s economic growth is predicted to be 4.5% this year, making the Asian region a growth centre of the world. Positive factors including moderating inflation, resilient labour markets, improvements in global trade activity, technology upcycle and tourism recovery may be challenged by the headwinds of geopolitical tensions and uncertainties in the global interest rates.

Malaysia is experiencing robust economic growth. The first half of the year had seen the Malaysian economy grow by 5.0%, with 1Q2024 growth of 4.2% and 2Q2024 surging to 5.9% exceeding estimates. This was supported by robust growth from the construction sector, increased household spending, private investment growth, tourist arrivals, improved net exports and resilience in the labour market.

With the strong performance in the first half, the Malaysian economy in 2024 is expected to be grow within the range of 4-5% driven by domestic expenditure supported by expansion in the labour market and policy, and bolstered by increasing tourism arrivals, strong investment activities & exports benefitting from the spillover effects of the abovementioned global trends.

The Economy MADANI framework policies for economic structural reform include the (i) New Industrial Master Plan (NIMP 2030) which is aimed at increasing the value-add of manufacturing, the (ii) National Energy Transition Roadmap (NETR) outlines energy transition levers, some of which include energy efficiency, renewable energy, hydrogen, bioenergy, and green mobility amongst others, and the (iii) National Semiconductor Strategy (NSS) fast tracking Malaysia to become a global semiconductor hub. The Government of Malaysia aims to enhance fiscal sustainability, attract quality investments, advance green growth and build a prosperous and inclusive society through these and more targeted policies.

MASSA held its 33rd Annual General Meeting on a hybrid basis on 24 June 2024. MASSA will continue its focus on the South-South and direct some of its activities towards highlighting the business opportunities arising from these reform initiatives of the Government. MASSA has expanded its mandate to also be a platform for the promotion and facilitation of inbound partnerships into Malaysia with our South-South partners.

I would like to thank the Office Bearers and Executive Committee Members who continue to serve the Association for the current term till 2025. I appreciate the continuing support of all Members with your involvement at our regular meetings, events and webinars. I also wish to thank article and feature contributors from across the MASSA network, who have provided valuable and insightful articles for our newsletters and not forgetting the sponsors of our website.

Finally, on behalf of my colleagues in Malaysia South-South Association (MASSA), I wish to express our heartfelt condolences to Toh Puan Helen Chen & family on the recent passing of YABhg Tun Michael Chen Wing Sum.

Tun Michael Chen, was a Founding Member of MASSA and served as Vice President on the Executive Committee of MASSA, as well as Deputy Chairman of the Malaysian South-South Corporation Berhad (MASSCORP) since its inception in 1992. He played an instrumental role in spearheading MASSCORP’s business investments into S.R. Vietnam culminating in a very successful business of developing and managing an industrial zone, as well as a housing project in Danang city. He left an indelible mark as Chairman of MASSDA Land Company Limited (Vietnam). His vast insights navigating the government and policy space in the developing countries and his business acumen in the challenging markets of these emerging countries will be greatly missed.

Thank you.

Tan Sri Azman Hashim
President
19 August 2024

Article by the Cross Border Investment Division, Malaysian Investment Development Authority, MIDA

UNDERSTANDING MSBDF AND ITS SIGNIFICANCE FOR MALAYSIAN BUSINESSES

What is MSBDF?

• • The Malaysia-Singapore Third Country Business Development Fund (MSBDF) is a fund designed to support businesses or associations from both Malaysia and Singapore in jointly exploring business and investment opportunities in third countries. Administered by MIDA and Enterprise Singapore, the fund supports activities such as joint missions, joint feasibility studies and joint pilots, which require participation from both Malaysian and Singaporean entities. This collaborative initiative aims to strengthen cooperation between the private sectors of both countries, enhancing their ability to pursue business and investment opportunities abroad.

• • Both agencies serve as the implementing agencies for the MSBDF and act as a facilitator for businesses to tap into the fund and processes the applications received.

Investments that qualify for MSBDF must:

• • Provide access to new or existing technologies
• • Open new marketing channels or acquire existing ones overseas
• • Access overseas resources that support joint venture expansion or diversification

Key considerations for the MSBDF are that investments should create joint economic benefits for Malaysia and Singapore. Favorable investments include:

• • Enhancing R&D, design and engineering capabilities through new facilities, patents and specialised knowledge.
• • Improving access to overseas resources and marketing channels to boost production, export sales and services from both countries.
• • The Fund supports activities in but is not limited to the following sectors:

manufacturing, tourism, infrastructure development, construction, information technology, trading and services, green technology and digital economy which are deemed suitable by Implementing Agencies.

The activities for MSBDF consist of: –

1. 1. Joint Trade Missions

Organise and participate in joint missions to other countries to explore business and investment opportunities.

2. 2. Joint Feasibility Studies

Hire independent experts to conduct due diligence and market feasibility studies in other countries.

3. 3. Joint Pilots

Run pilot projects in the digital and green economy sectors with activities either in third countries, Singapore or Malaysia reviewed on a case-by-case basis.

Activity 1 and 2 must be conducted in third countries with exception to Activity 3. A third country means other country besides Malaysia and Singapore.

The Aims of MSBDF

1. 1. To promote economic cooperation between Malaysia and Singapore businesses in identifying business and investment opportunities.
2. 2. To identify potential business environment, leads and opportunities in third countries.
3. 3. To encourage technological innovation and technological advancements via test bedding activities to demonstrate viability and scalability of solution and/or innovate new solutions or products or services for clients.

Involvement of MASSA

The Malaysia South-South Association (MASSA) is an organisation that promotes economic cooperation among developing countries. MASSA can play a significant role in leveraging MSBDF for its members by providing:

• • Awareness and outreach by informing members about the opportunities and benefits of MSBDF.
• • Collaborative projects by encouraging joint ventures and collaborative projects between Malaysian and Singaporean businesses.

Tips for Malaysian Businesses to Apply for the MSBDF

1. 1. Ensure that the business meets the eligibility criteria set by MSBDF.
2. 2. Ensure necessary documents such as business plans, financial statements and project proposals are provided as required in the guideline and application form.
3. 3. Submit application by applying through MIDA or Enterprise Singapore. Companies must determine who will lead the activities and Lead Applicants shall submit their application based on the country they are registered in with all required documentation.
4. 4. Working closely with MIDA for guidance, feedback and support throughout the application process.
5. 5. Utilising MASSA’s network and resources for additional support and partnership opportunities.

Conclusion

The Malaysia-Singapore Business Development Fund (MSBDF) is a valuable resource for Malaysian businesses looking to expand their horizons and strengthen their ties with Singapore businesses. By leveraging the support of MIDA and MASSA, businesses can maximize their benefits from MSBDF, driving growth, innovation and collaboration in the region.

For more detailed information and assistance, businesses are encouraged to contact MIDA.

The MASSA 2023 – 2024 Annual Report can be read here:

COUNTRY FEATURE
REPUBLIC OF DJIBOUTI
(DJIBOUTI)

DJIBOUTI BUSINESS FORUM 2023

by Export-Import Bank of Malaysia Berhad

Date: 28 November 2023 – 3 December 2023

Country: Djibouti

Background: 

EXIM Bank Malaysia, in collaboration with WAAFI Bank, Djibouti National Investment Promotion Agency (NIPA), and supported by Malaysia External Trade Development Corporation (MATRADE), held the “Malaysia Global Connect: Malaysia – Djibouti Business Forum” on 29 November 2023 in Djibouti, bringing together over 28 delegates to foster economic ties and strategic collaborations between Malaysia and Djibouti. EXIM Bank was represented by Cik Nurbayu Kasim Chang, acting President and Chief Executive Officer (previously Chief Business Officer), Dr Liza Mydin, Chief Strategy Officer and Puan Azmin Hamzah, Head of Corporate Communication and International Relations.

Among the key highlights from the event are:

1. 1. Engaging discussions on economic policies, trade facilitation, and investment incentives.
2. 2. Closed-door dialogue with Djiboutian Ministers addressing Malaysian delegates’ queries.
3. 3. Breakout sessions focusing on Constructions, Health, Power, and Education sectors

EXIM Bank is committed to fostering international trade and investment. The forum signifies the Bank’s dedication to creating platforms for dialogue and collaboration between businesses, government entities and investors.

Key Highlights:

Djibouti Business Forum 2023 witnessed several noteworthy highlights, including:

Networking Opportunities: Delegates had the chance to network with government representatives, business leaders and local entrepreneurs, fostering potential collaborations and partnerships.

Interactive Sessions: The event featured interactive sessions, allowing participants to engage in Q&A sessions and had one-to-one consultations with local companies.

Success Stories: The success story shared by Golden Africa when investing in Djibouti served as guide for the delegates.

Government Assistance: Delegates gained a deeper understanding of the Djibouti market and the support available from government agencies and financial institutions.

Conclusion:

Djibouti Business Forum 2023 proved to be a pivotal event in opening business opportunities for Malaysian companies into the East Africa region, as the information provided by the Djibouti Ministries and agencies’ input on the way forward, as well as Djibouti’s government policies on foreign direct investment, proved to be insightful.

The Malaysian delegates need to continually communicate and follow-up with their respective potential partners, ministries and government agencies to formalise proposals and the transactions to be made.

EXIM Bank played an important role in bridging the financing gaps for Malaysian companies that may seek financing into Djibouti. The financing request may come from Djibouti Government or its agencies. Hence, delegates have the first mover advantage to undertake potential projects or contracts in Djibouti.

Djibouti serves as a platform for Malaysian companies penetrating the East Africa market that has a bigger population of 220 million. The Government looks highly on Malaysia to undertake FDI into the country.

EXIM Bank should undertake the same approach in connecting Malaysian companies into other non-traditional markets in 2024, such as the Central Asia or West Africa regions by working with MITI and MATRADE. This is part of the Malaysia Global Connect Programme’s objective.

Media Coverage on Malaysia and Djibouti Business Forum

Additional Links: 

• •https://www.exim.com.my/resource-centre/exim-bank-fosters-economic-ties-with-djibouti-after-successful-business-forum/
• •https://www.exim.com.my/resource-centre/exim-bank-leads-efforts-to-foster-economic-ties-between-malaysia-and-djibouti/

MASSA congratulates EXIM Bank, MASSA’s member and Executive Committee member for the successful Malaysia Global Connect: Malaysia – Djibouti Business Forum on 29 November 2023, and extends its appreciation to EXIM Bank for consenting to share with MASSA members & readers, EXIM Bank’s report on the Forum.

Prior to the Forum, EXIM Bank had organised a Briefing in the lead-up to the Forum at EXIM Bank’s premises wherein MASSA and its members had participated. MASSA’s report on the Briefing can be read in the December 2023 issue of the MASSA e-Newsletter. At the Briefing, information and data on Djibouti was shared by the presenters, excerpts from which are enclosed below:

BRIEFING ON MALAYSIA-DJIBOUTI BUSINESS FORUM 2023

We record our appreciation to Waafi Bank and the National Investment Promotion Agency (NIPA) for the above information.

‣ President’s Statement

‣ Editorial

‣ Country Feature: Republic of Djibouti

‣ Diary of Events

‣ 17 January 2024
Meeting with InvestPerak

‣ 18 January 2024
SHRDC-MASSA-MAJECA Webinar: COSIRI Framework for ESG towards Sustainable Manufacturing

‣ 22 February 2024
Meeting with the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI)

‣ 29 February 2024
Visit to IJM IBS Sdn Bhd

‣ 27 March 2024
SHRDC-MASSA-MAJECA Webinar: Smart Factory and Industry 4.0: A Practical and Sustainable Approach towards Digital Transformation

‣ 29 March 2024
MASSA Courtesy Call on H.E. Md Shameem Ahsan, High Commissioner of Bangladesh to Malaysia

‣ Forthcoming Events

Greetings from MASSA !

2023 was an eventful year. The economic trends favouring the Asia Pacific, especially ASEAN bodes well for Malaysia.

In this April newsletter, we feature the Republic of Djibouti, a republic with a population of just under 1 million located in a strategic position on the edge of the Red Sea where 60% of worldwide traffic passes through. Under Djibouti’s Vision 2035, Djibouti had conveyed its aspirations to become the Singapore of Africa, leveraging its strategic location, and ground access via international road corridors & railways to the greater East African region.

The Export-Import Bank of Malaysia Berhad (EXIM Bank) had shared their report on the Malaysia Global Connect: Malaysia-Djibouti Business Forum on 29 November 2023 where EXIM Bank, in collaboration with WAAFI Bank, the Djibouti National Investment Promotion Agency (NIPA), and supported by MATRADE led a delegation to Djibouti. This Forum brought Malaysian delegates to Djibouti with the aim to foster economic ties and strategic collaborations between the two countries. The Forum also saw closed-door dialogues with Djiboutian Ministers, networking & breakout sessions and insights into Djibouti as a gateway for the East African market with a population totalling 220 million.

This newsletter reports on MASSA’s various engagements that included meetings with the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and a Courtesy Call on H.E. Md Shameem Ahsan, High Commissioner of Bangladesh to Malaysia. The core theme of these meetings was on promoting business, trade and investment between Malaysia and the South-South developing countries.

MASSA is also focusing its efforts to feature discussions, innovations and insights on digital transformation and green transformation. Through our three-part collaboration with the Selangor Human Resource Development Centre (SHRDC), two webinars had been organised on the themes of sustainable manufacturing and smart manufacturing. Do look out for our announcement & registrations for the 3^rd instalment of this collaboration soon.

MASSA led a visit to IJM IBS Sdn Bhd in Rawang, Selangor. This visit brought MASSA & its members and network to learn about Industrialised Building System (IBS) and robotic assisted manufacturing that combines the values of sustainable and smart manufacturing affording a flexible and low-waste manufacturing system.

We want to thank our members, ex-officio, contributors, and partners for your support to date. MASSA remains committed to present to members, trade and investment leads from the South-South countries.

To that end, several events including visits and seminars to keep an eye out for are in the works. Do look out from our weekly Circulars and postings in our website www.massa.net.my.

We look forward to meet members at MASSA’s upcoming events.

Thank you.

Ng Su Fun

Editorial MASSA

Tan Sri Azman Hashim
President
MASSA 

2023 was a challenging year. Numerous headwinds resulting from geopolitical tensions, supply chain disruptions, inflationary pressures, and trade restrictions amongst others dampened the initially positive expectations for the year. Nevertheless, the global economy still performed better than expected with Japan’s remarkable post-pandemic recovery, the US aversion of recession and the Asia Pacific’s robust performance.

In spite of the challenging global context, Malaysia’s economy in 2023 grew by 3.7%, normalising from the 8.7% rebound in 2022. Headline and core inflation for 2023 averaged 2.5% and 3% respectively. Resilient domestic demand, labour market improvements, recovery in the tourism sector and supportive domestic policy are among some of the key factors that buoyed the domestic economy against headwinds that included weak external demand, commodity production & global supply chain disruptions and geopolitical tensions.

In 2024, the Malaysian economy is expected to grow at a projected 4.3 – 4.4% owing to favourable conditions in domestic expenditure, recovery of trade activity, and the upturn in the global technology cycle especially benefitting Malaysia’s E&E and semiconductor sectors.

The global outlook for 2024 is underpinned by the challenging global environment under the strain of wars, geopolitical conflict & uncertainty. The World Bank projected that global growth for 2024 to be 2.4%, while the OECD and IMF projected 2.9% and 3.1% respectively. It is expected that a soft landing would be possible owing to broadly balanced global growth particularly driven by strong optimism for growth in the Asia Pacific region, recovery of global supply chains and rising real income supported.

MASSA will continue its business engagements and collaborative efforts with Government agencies, fellow business associations, both old and new, and most importantly, with our South-South developing country partners towards raising awareness and building business preparedness for incoming trends, changes and especially, business opportunities for its membership.

MASSA is also cognisant of the developments in the sphere of human capital development, green transformation, climate change & ESG, digital transformation & AI amongst others, and we hope to bring to our readers and members’ attention these pertinent topics in an effort to raise awareness and preparedness for their respective innovation journey. I do encourage your active participation in the value-added events organised by MASSA and to deliberate their resulting opportunities.

I appreciate the continuing support and cooperation of all members, especially my fellow Executive Committee members with your attendance, participation and contributions at our regular meetings.

I also wish to thank all our supporters who have contributed valuable and insightful articles, and our sponsors of our Newsletters for 2023.

I wish everyone a happy, healthy and successful 2024. Best wishes for a ‘Selamat Hari Raya’.

Tan Sri Azman Hashim
President
9 April 2024