Thammasat University students interested in ASEAN studies, Malaysia, economics, climate science, business, environmental studies, and related subjects may find it useful to participate in a free 27 June Zoom webinar on Malaysia’s Economic and Climate Transition.
The event, on Thursday, 27 June 2024 at 2pm Bangkok time, is presented by the Malaysia Studies Programme & Climate Change In Southeast Asia Programme, ISEAS – Yusof Ishak Institute, Singapore.
The TU Library collection includes several books about Malaysian economics and climate change.
As explained on the event website,
Malaysia is seeking to escape the upper middle-income trap. The challenge of undertaking structural reforms that address economic development concerns and are aligned with climate action is considerable. Last year, the Anwar Ibrahim administration unveiled the Madani Economy framework, the National Energy Transition Roadmap, the Mid-Term Review of the 12th Malaysia Plan, the New Industrial Master Plan 2030, and the Hydrogen Economy and Technology Roadmap – all in quick succession. These new strategies aim to tap green growth opportunities to achieve rapid greenhouse gas emissions reduction while delivering tangible economic benefits to the rakyat. In addition, the government must seek the financial resources needed for the forthcoming National Adaptation Plan that seeks to strengthen Malaysia’s climate resilience in various sectors including health, agriculture and food security, forestry, biodiversity, water security, infrastructure and cities.
In this seminar, Malaysia’s Minister of Natural Resources and Environmental Sustainability, H.E. Nik Nazmi Bin Nik Ahmad, will unpack these plans and set out Malaysia’s priorities and strategies that will be critical in meeting its climate ambition.
About the Speaker
H.E. Nik Nazmi Bin Nik Ahmad is the Minister of Natural Resources and Environmental Sustainability (NRES) and Member of Parliament for Setiawangsa. He is also the Parti Keadilan Rakyat (PKR) Vice President. […]
Students are invited to register at this link:
https://us06web.zoom.us/webinar/register/3717173980587/WN_0BJOuI_aQPe91REHIVyBsg#/registration
An article posted in May 2024 on East Asia Forum on Seizing Malaysia’s economic momentum declared:
The depreciation of the Malaysian ringgit has prompted economic concerns, but key indicators show promise with inflation declining and unemployment holding steady. Encouraged by the ‘China+1’ model and the burgeoning semiconductor industry, Malaysia could capitalise on overseas interest by strengthening its existing semiconductor ecosystem and focusing on structural reforms, such as encouraging the right investments, developing a skilled workforce and enhancing industrial ecosystems.
The drastic depreciation of the Malaysian ringgit, comparable in magnitude to the 1998 Asian Financial Crisis, has spooked many and triggered debates on the nation’s economic performance. External headwinds such as persistent high inflation in the United States, sluggish economic prospects in China and ongoing geopolitical tensions are significant influencing factors. Still, some see the weaker ringgit as a sign of the nation’s dwindling competitiveness.
That view is overly pessimistic. Key economic indicators are evolving favourably. Headline inflation is declining and unemployment has remained steady at 3.3 per cent since November 2023, returning to pre-COVID-19 levels. If the government can address some of the nation’s systemic structural inefficiencies, it could pave the way for a second economic take-off.
Ongoing competition between China and the United States, compounded by the supply chain disruption witnessed during the pandemic, has spurred both Western and Chinese companies to re-evaluate their sourcing and supply strategies. The ‘China+1’ model and ‘Taiwan+1’ model are direct responses and stands to benefit Malaysia. Intense interest from multinational corporations looking to start or expand manufacturing activities that would have been done in China previously, for example foreign semiconductor companies looking to invest in Penang, has risen.
The semiconductor industry is a case study in how Malaysia can position itself to take advantage of global trends. During the first economic take-off, the government had the foresight to introduce incentives that attracted specific steps in the semiconductor value chain. Intel opened its first plant in Penang in 1972 and by the early 1980s there were 14 semiconductor firms operating in Malaysia.
This familiarity led to Malaysia becoming an unexpected ‘winner’ of the geopolitical friction between the United States and China. Semiconductor industry players looked towards Malaysia when it became necessary to relocate other steps in the value chain, placing Malaysia in an excellent position to benefit from the growth of the semiconductor industry. Efforts to create a comprehensive Semiconductor Strategic Plan are headed in the right direction, though it is crucial to incorporate appropriate incentives and create the right business climate to attract high value operations.
But other Southeast Asian countries are catching up fast. On top of generally cheaper labour, they also offer lucrative incentives to entice companies to invest. For Malaysia to stay competitive, it needs to strengthen its existing semiconductor ecosystem to move up the value chain. […]
Structural reforms are needed to strengthen the nation’s fiscal position to promote catalytic investments, build a highly paid and highly skilled workforce and enhance the overall industrial ecosystems. Thriving industrial ecosystems are a necessary condition to move up the value chain, and also anchor industries in the country. The April 2024 announcement of what will be the largest integrated circuit design park in Southeast Asia is a testament to the government’s ambition. […]
But a second take-off will not be achieved through competition alone. Against the backdrop of the US–China trade war, two major free trade agreements were signed and ratified — the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — both of which Malaysia is part of. This underlines the country’s commitment to freer international trade. Prime Minister Anwar Ibrahim’s intention to facilitate discussions on a Malaysia–EU Free Trade Agreement further signals the administration’s ambition to cooperate and partner on a global scale.
More than 140 countries have signed up to the Global Minimum Tax deal, which aims to reduce tax competition between countries. Treaties like these could eventually reshape the flow of multinational foreign investments, and factors like the quality of the workforce and available infrastructure will become more important in investment decisions.
The urgency to address climate change has culminated in various initiatives with potentially global consequences, such as the EU Taxonomy for Sustainable Activities and ASEAN Taxonomy for Sustainable Finance. It is vital for Malaysia’s industries to implement these international requirements.
Malaysia must act fast. The economy already has the necessary components to move into the production of electric and autonomous vehicles, establish Artificial Intelligence hubs, build more smart factories and enhance decarbonisation efforts. Malaysia’s mission-oriented approach introduced in its New Master Industrial Plan 2030 showcases a holistic way to guide strategic directions to channel industries’ purposes and trigger innovation that produce solutions with spill over effects for the economy. Penang’s semiconductor supply chain success can and must be emulated in other sectors.
This month the United Nations Development Programme (UNDP) posted a report,
A food fight against climate and costs, explaining:
In 2022, Malaysia’s food inflation reached 5.8%, even as its food import bill reached RM 75.6 billion. Climate events and global conflicts have impacted the supply of staples like rice and wheat, while currency fluctuations have raised the cost of imported food. When India, which supplies over a third of Malaysia’s rice imports, banned exports of non-basmati rice in July 2023, there were immediate concerns about rice shortages. Malaysia’s stockpile meant that there were no disruptions, but renewed concerns about food security has put the spotlight on food self-sufficiency.
Yet, Malaysia has also experienced unprecedented heavy rainfall and severe flooding in recent times. In December 2022, agriculture and agro-food sectors experienced damages and losses amounting to RM111.95 million due to monsoon weather (4). As climate change intensifies, can we be certain that crops grown in Malaysia will be less susceptible to disruption than food imports? And if not, is Malaysia’s 21.8% child stunting rate a sign of its future?
(All images courtesy of Wikimedia Commons)