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Indonesia’s Economic Growth Slows Sharply to 4.87% in Q1

JAKARTA:  Indonesia’s economy recorded its slowest annual growth in over three years during the first quarter of 2025, expanding by 4.87% compared to the same period a year ago, according to official data released on Monday by Statistics Indonesia (BPS). The figure fell short of analysts’ expectations of 4.91%, as forecast in a Reuters poll, and marked the weakest quarterly growth since Q3 2021. It also reflects a decline from the 5.02% expansion posted in the fourth quarter of 2024. On a quarter-on-quarter basis, Indonesia’s gross domestic product (GDP) contracted by 0.98% in the January–March period, based on non-seasonally adjusted data. The weaker-than-expected performance signals mounting challenges for Southeast Asia’s largest economy, which has been struggling to maintain post-pandemic momentum amid slowing global demand, tightening fiscal space, and volatile commodity markets. For the past few years, Indonesia’s GDP growth has largely hovered around the 5% mark—a level now proving difficult to sustain. Headwinds to Growth President Prabowo Subianto, who assumed office in 2024, has set an ambitious target of achieving 8% annual growth within his five-year term. However, the latest GDP figures point to significant headwinds, including: Global trade uncertainties, such as the ongoing US-led tariff measures and broader geopolitical frictions. Weakened household consumption, which, despite Ramadan-related spending, rose just 4.89%—the slowest pace in five quarters. Sluggish investment, growing by only 2.12%, the lowest in two years, as domestic and foreign investors adopt a wait-and-see approach amid policy shifts and external risks. Declining government expenditure, reflecting fiscal consolidation efforts under tighter budget conditions. The government’s fiscal leeway has narrowed as it seeks to balance development goals with responsible spending. Jakarta is currently in talks with Washington to address potential tariff impacts on Indonesian exports, particularly as the United States considers broad-based reciprocal trade measures. Sectoral Performance: Mining Weakens, Agriculture Surges Sector-wise, the mining industry—a key export driver—shrank by nearly 1% year-on-year. This contraction was attributed to falling global coal prices, reduced demand from international buyers, and output disruptions due to maintenance activities at the Grasberg mine, one of the world’s largest copper and gold operations operated by Freeport McMoRan. In contrast, agriculture emerged as a bright spot, recording a robust 10.5% annual growth, driven by improved harvests of rice and corn. The sector benefited from favourable weather conditions and government support for food resilience initiatives. Net exports contributed positively to GDP, primarily due to a sharper decline in imports. However, this gain reflects softening domestic demand rather than export strength. Outlook and Policy Implications The first-quarter data presents a significant challenge to President Prabowo’s growth agenda and underscores the need for calibrated policy responses to rejuvenate domestic demand, attract investment, and shield Indonesia from escalating global trade risks. Bank Indonesia is expected to closely monitor inflation and capital flows before considering any monetary policy adjustments. Meanwhile, the government is likely to accelerate infrastructure projects and refine trade diplomacy to secure favourable terms with key partners, particularly the US and China. As the global economic environment remains uncertain, the coming quarters will be critical for Indonesia to stabilise growth and deliver on its economic reform commitments.–REUTERS

Investment & Market Trends, News

Japan Eyes Multi-Year Expansion in Malaysia with RM102.02 Billion in FDI

KUALA LUMPUR : Japanese companies are actively exploring investment opportunities across Malaysia’s decarbonisation, healthcare, innovation, and service sectors, according to the Japan External Trade Organisation (JETRO). JETRO Kuala Lumpur managing director Koichi Takano said several Japanese firms have committed to multi-year investment plans beginning in 2025, with a focus on establishing engineering and operational services in industries such as oil and gas, semiconductors, and biotechnology. “Interest in Malaysia’s decarbonisation sector is set to accelerate in the lead-up to the Asia Zero Emission Community (AZEC) Summit, co-hosted by Japan and Malaysia later this year,” he said in an interview with Bernama. Major Japanese players including Mitsui & Co are currently involved in key decarbonisation initiatives in Malaysia, spanning energy efficiency, renewable energy, carbon capture and storage (CCS), and hydrogen technology. Takano noted that the improving diffusion index of Japanese business sentiment reflects renewed confidence in Malaysia’s economic outlook. “This signals increasing trust and expectations for Malaysia’s sustained growth,” he added. However, he also cautioned that global economic uncertainties persist, particularly due to US-imposed tariff measures. In this context, Malaysia’s leadership within ASEAN is becoming increasingly vital. “Malaysia has already taken initiative by engaging in ASEAN-level discussions on tariffs. We hope to see continued leadership that promotes stability and growth across the region,” Takano said. Japan remains one of Malaysia’s leading foreign investors. According to the Department of Statistics Malaysia, Japanese foreign direct investment (FDI) stood at RM102.02 billion in the fourth quarter of 2024, up from RM94.18 billion in the same quarter of 2023. This makes Japan the fourth-largest source of FDI in Malaysia. Takano shared insights from a recent business sentiment survey conducted jointly by JETRO and the Japanese Chamber of Trade and Industry, Malaysia (JACTIM). While sentiment was negative in the second half of 2024 at –11.5 points, it is projected to recover to –4.5 points in 2025. The survey, which gathered responses from 200 companies between 22 January and 21 February 2025, identified high-value manufacturing and decarbonisation as Malaysia’s most promising sectors. In the non-manufacturing segment, firms reported a strong demand for skilled talent in advanced technologies. Respondents also called for clearer guidelines on environment, social and governance (ESG) investments, the enhancement of tax incentives, and timely notifications on regulatory changes. –Bernama

Investment & Market Trends, News

Bursa Nets RM853.8mil Foreign Inflows, First Two-Week Streak Since Sept 2024

Foreign investors continued to show strengthening confidence in Bursa Malaysia, recording net inflows totalling RM853.8 million for the week ending 2 May. This marks the first consecutive two-week gain in foreign investment since September 2024, according to MIDF Research. The investment research firm reported consistent foreign buying across all five trading days, with daily inflows ranging between RM50.7 million and RM340.8 million. The highest net inflow was registered on Friday at RM340.8 million, followed closely by RM325.2 million on Thursday. Sector analysis revealed strong interest in financial services, which led with a net foreign inflow of RM567.4 million. The healthcare sector followed with RM124.8 million, while industrial products and services recorded RM107.9 million. Only two sectors experienced net outflows, with energy seeing RM31.9 million in withdrawals and plantations recording RM6.0 million in outflows. Local institutional investors extended their net selling trend into a second consecutive week, registering total outflows of RM692.6 million. This represents the first two-week streak of net selling by institutions since August 2024. Retail investors also continued their net selling for a third week, divesting RM161.2 million in equities. This was almost two and a half times greater than the previous week’s outflow. Trading volume rose across all investor categories. The average daily trading volume increased by 8.7 percent for institutional investors and 5.7 percent for retail participants. Foreign investor activity saw a notable rise of 26.0 percent, highlighting growing participation from international market players. MIDF Research concluded that the data reflects a renewed appetite for Malaysian equities among global investors, supported by strong sectoral performance and wider regional market interest. –Business Times

News

Penang Hill Cable Car Project Gains Momentum, First Tower Installation Set for June

GEORGE TOWN : The highly anticipated Penang Hill cable car project is advancing according to schedule, with the first ropeway tower expected to be installed by the end of June 2025. Datuk Cheok Lay Leng, General Manager of the Penang Hill Corporation (PHC), confirmed that caisson piling works are underway across all four major sites, encompassing the three cable car stations — Garden, Turn, and Hill — as well as a multi-storey car park. As of late April, overall progress stood at 6.5%, with 12 of the 33 planned caisson points completed along the alignment. These foundational works are essential to support the towers that will eventually carry the gondolas. “The towers are currently being fabricated off-site and will be delivered to the construction zones in phases,” said Cheok in an interview. “We’re confident the first tower will be installed by the end of June.” To minimise environmental disruption, PHC has reduced the number of towers on Penang Hill to 15, five of which are situated within the forest reserve. The remaining ten are located outside the protected area. “There are three towers positioned near the Hill station, four at the Turn station, and three at the Garden station,” Cheok explained. “We’ve taken deliberate steps to preserve the ecological integrity of the forest while ensuring optimal alignment for a seamless cable car experience.” Multi-Storey Parking and Sustainability Measures Part of the broader development includes a multi-storey car park at the site of the former food court near the Botanic Gardens. The site has been cleared, and ground preparation — along with environmental protection measures — is already in progress. The car park aims to address long-standing congestion issues and improve visitor accessibility. Public-Private Collaboration and Oversight Although the RM245 million project is being undertaken by Hartasuma Sdn Bhd under a public-private partnership (PPP), PHC continues to play a supervisory role to ensure compliance with safety and regulatory standards. “Notices have been issued to advise the public about safety protocols and vehicular activity along key routes such as Jalan Kebun Bunga, the Jeep track, and Summit Road,” Cheok noted. Looking Ahead The project was awarded to Hartasuma — a prominent player in Malaysia’s rail industry — in December 2022 under a 30-year concession agreement. The scope includes the design, financing, construction, operation, and eventual transfer of the cable car system. Targeted for completion by end-2026, the cable car is anticipated to begin operations in the second quarter of 2027, pending comprehensive safety inspections and system commissioning. “This project will introduce a new dimension to the Penang Hill experience, combining enhanced visitor access with a commitment to environmental stewardship and world-class safety standards,” Cheok added. –Malay Mail

News

Anwar to Address US Tariffs, Outline Mitigation Plans in Parliament

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim is scheduled to explain the government’s plans and measures to address the reciprocal tariffs imposed by the United States at the special Parliament session today. According to the Order Paper published on the Parliament website, Anwar, who is also the Finance Minister, will address the matter at the special meeting at 11 am. “The Prime Minister will provide an explanation on the US move to impose reciprocal tariffs on all imports and its implications for the Malaysian economy,” it said. Anwar will also outline the government’s response across various ministries and sectors, as well as the coordination of short- and medium-term solutions, including a review of existing policies for certain industries. The Prime Minister will also address the country’s long-term economic plans to mitigate the impact of the international trade war and ensure the resilience of the Malaysian economy After the Prime Minister’s session, Members of Parliament will have the opportunity to seek clarification and offer their views, after which the relevant ministers will respond to the matters raised. On 24 April, the Malaysian Parliament said that the special sitting was convened at the request of the Prime Minister. It was held in accordance with Standing Order 11(3) of the Dewan Rakyat Standing Orders to allow pressing issues deemed beneficial to the people. The ministerial briefing under Standing Order 14(1)(i) will cover the US action to impose reciprocal tariffs on all imports of the country, its impact on Malaysia, and the government’s coordinated measures. On April 9, the US administration announced a 90-day pause on tariffs for most countries, while maintaining the 10 per cent base tariff. The decision was made to facilitate negotiations with over 75 countries, including Malaysia, which had voiced concern over the sudden imposition of the tariffs.–BERNAMA

News

Sabah Achieves 46% Sales Growth at MATTA Fair KL

KUALA LUMPUR : Sabah has reported a notable 46 per cent increase in tourism sales at the first edition of this year’s MATTA Fair Kuala Lumpur, achieving RM4.5 million in revenue and reaffirming its position as a leading domestic travel destination. The Sabah Tourism Board (STB), which led the state’s representation, coordinated the participation of 43 travel agencies under the Sabah zone to collectively showcase the state’s diverse tourism offerings. In a statement, STB said, “The strong response underscores Sabah’s appeal as a well-rounded destination, with experiences spanning adventure, cultural heritage, natural landscapes, and community-based tourism.” Making its debut at the fair, STB introduced two home-grown Sabah brands — Chanteek Borneo, which presented traditional Sabah-inspired clothing and textile designs, and Uinah, a locally crafted wellness beverage made from sustainably sourced ingredients. Both brands received positive attention from fair visitors. STB Chief Executive Officer Julinus Jeffery Jimit attributed the encouraging results to the collaborative spirit and active participation of Sabah’s tourism stakeholders. “The collective effort of our tour and travel agencies has been pivotal in strengthening Sabah’s tourism presence. It reflects our shared commitment to growing the state’s tourism industry,” he said. Looking ahead, STB reaffirmed its dedication to expanding destination marketing efforts both domestically and abroad, particularly as part of the ongoing ‘Explore Sabah’ campaign in the lead-up to Visit Malaysia Year 2026. To increase engagement at the event, the Sabah pavilion featured virtual reality experiences, interactive activities, and a consumer survey to capture valuable insights into domestic travel trends and preferences. –Business Times

News, Property

Majuperak Launches RM141 Million Housing Project for First-Time Buyers in Perak

KUALA LUMPUR : Majuperak Holdings Berhad, a subsidiary of the Perak State Development Corporation (PKNPk), has announced the launch of Taman Tasik Ardea, a new residential development in Sungai Terap, Batu Gajah. The project is designed to provide affordable, high-quality housing for first-time buyers and young families, in line with the state’s long-term housing aspirations under the Perak Sejahtera 2030 framework. Developed on land owned by PKNPk-linked company Syarikat MajuPerak Berhad (SMB), the project forms part of a broader state initiative to maximise the value of government-linked assets while supporting sustainable community development. With a gross development value (GDV) of RM141 million, the project comprises 601 residential units, to be delivered in three phases: Phase One: 161 units Phase Two: 264 units Phase Three: 176 units Spanning 46.13 hectares, the development features single-storey terrace homes ranging between 1,075 and 1,275 square feet, offering three to four bedrooms per unit. Properties are priced between RM90,000 and RM250,000, depending on the type (Rumah Perakku 1 to Rumah Perakku 3). A select number of units will also be made available to non-Bumiputera buyers. At the project’s official launch, Perak Menteri Besar Datuk Seri Saarani Mohamad reaffirmed the state government’s commitment to ensuring equitable access to quality housing, particularly for young families and underserved groups. PKNPk Chief Executive Officer and Executive Chairman of Majuperak, Datuk Redza Rafiq Abdul Razak, stated that the initiative reflects a coordinated effort to align private sector participation with public policy objectives. “Under Majuperak, our goal extends beyond constructing homes — we are shaping communities that are inclusive, sustainable, and well-integrated with public amenities,” he said. “This project is a tangible representation of our vision to utilise state assets to enhance the socio-economic wellbeing of the people of Perak.” The development will also prioritise environmental sustainability and community-building through thoughtful planning and infrastructure support. –Business Times

News

Anwar Urges Calm Amid Petronas–Petros Gas Licensing Dispute

PETALING JAYA : Prime Minister Datuk Seri Anwar Ibrahim has called for calm and measured dialogue following rising tensions between national oil and gas corporation Petronas and Sarawak’s state-owned energy entity, Petroleum Sarawak Bhd (Petros), regarding a licensing disagreement. In a statement on social media platform X today, Anwar emphasised the importance of safeguarding mutual interests and urged both sides to refrain from further action or public commentary until further discussions could be convened. His remarks followed a phone conversation with Sarawak Premier Tan Sri Abang Johari Tun Openg. “Once the Premier returns from his official visit to London, we will promptly initiate further deliberations to reach a resolution,” Anwar said. “I remain confident that this matter can be addressed judiciously through meaningful and prudent dialogue, God willing.” The statement comes after Petronas confirmed that its exploration and production subsidiary, Petronas Carigali Sdn Bhd, had received a formal notice from Sarawak’s Ministry of Utility and Telecommunications on 30 April, citing a lack of a valid state licence for its Miri Crude Oil Terminal operations. The notice reportedly gave Petronas Carigali 21 days to rectify the issue, warning that failure to comply could result in financial penalties under Section 21A of Sarawak’s Distribution of Gas Ordinance (DGO) 2016. In response, Petronas maintained that its operations are conducted in accordance with federal legislation and reiterated its openness to engage with both federal and state authorities to ensure regulatory clarity and continued cooperation. Separately, Abang Johari, in comments shared by the Sarawak Public Communications Unit (Ukas), expressed optimism that a balanced outcome could be reached. “On this issue, we are engaging tactfully with Petronas, but we are committed to finding a resolution,” he said. He also confirmed that the Prime Minister had contacted him directly, adding, “We agreed to move forward in a fair and sincere manner.” Abang Johari further stated that Sarawak had fulfilled its obligations under existing agreements, despite not receiving additional revenue entitlements. The licensing dispute is the latest in a series of jurisdictional challenges as Malaysia continues to navigate the complex relationship between federal and state authority in its oil and gas sector. –Free Malaysia Today

News

Business Owner Defrauded of RM1.8 Million in Online Investment Scam

JOHOR BAHRU : A 66-year-old company director has fallen victim to an online investment scam, resulting in losses totalling RM1.8 million after being enticed by promises of exceptionally high returns. According to Johor police chief Comm Datuk Kamarul Zaman Mamat, the individual came across a social media advertisement in October 2024 that promoted a scheme offering a 200% return on investment within three months. Intrigued by the opportunity, he clicked on a link provided in the advertisement to obtain further information. He was subsequently persuaded to transfer large sums of money to several bank accounts between November 2024 and January 2025, believing he was participating in a legitimate investment. The victim also downloaded a mobile application and created an account as instructed by the alleged scammer to track the status of his investment. “No returns were received over the stated period. When questioned, the suspect offered various excuses and eventually cut off all contact. The victim realised he had been defrauded when he was unable to reach the individual and was blocked from accessing the investment platform,” said Comm Kamarul in an official statement. The businessman lodged a police report yesterday. Authorities are currently investigating the matter under Section 420 of the Penal Code for cheating and dishonestly inducing the delivery of property. Comm Kamarul advised the public to remain vigilant and not fall prey to online investment schemes that promise unrealistically high and rapid returns. He reiterated the importance of verifying the legitimacy of such offers with relevant regulatory bodies before proceeding with any form of financial commitment. –Bernama

News

Malaysia to Hold Special Parliamentary Session on May 5 to Address US Tariffs

KUALA LUMPUR : The Dewan Rakyat will convene a special sitting on Monday, 5 May, to deliberate the United States’ recent imposition of retaliatory tariffs on Malaysian exports — a move that has triggered concern across both government and industry sectors. The extraordinary session is expected to see vigorous debate among Members of Parliament, as they examine the implications of the tariff measures and evaluate Malaysia’s diplomatic and economic response strategies. Announced by US President Donald Trump on 2 April, the measures include a blanket 10 per cent baseline tariff on imports from all countries, with a significantly higher 24 per cent rate applied specifically to Malaysian goods. The tariffs form part of Washington’s broader strategy to recalibrate trade relationships and address its persistent trade deficit. Ahead of the session, Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, led a high-level delegation to Washington on 24 April. There, he held meetings with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer, during which Malaysia reiterated its willingness to engage constructively on key trade concerns. In a press statement dated 25 April, Tengku Zafrul welcomed the US decision to pause the implementation of the 24 per cent reciprocal tariff for 90 days — until 8 July 2025 — while the 10 per cent baseline tariff remains in force indefinitely. He described the pause as a “window of opportunity” for diplomatic resolution and noted that discussions had focused on four key areas: narrowing the trade deficit, reducing non-tariff barriers, strengthening technological safeguards, and exploring the potential for a bilateral trade agreement. “These initial meetings with the US Secretary of Commerce and the US Trade Representative are a step in the right direction. We intend to maintain momentum and follow up urgently on the key issues raised within the 90-day window,” Tengku Zafrul said. The US administration’s 9 April announcement of the temporary tariff reprieve came as more than 75 countries voiced concerns over the broad-based trade actions. Concurrently, the US raised tariffs on Chinese-origin goods to a cumulative 145 per cent. Monday’s special sitting, convened at the request of Prime Minister Datuk Seri Anwar Ibrahim under Standing Order 11(3), underscores the urgency of the matter as it constitutes a significant public interest issue. Ministers are expected to deliver briefings under Standing Order 14(1)(i) to outline the US actions, assess the impact on Malaysia’s economy, and present the government’s coordinated policy response. With global markets closely watching the situation, the outcome of the 5 May session is poised to shape Malaysia’s next course of action in what could become a defining moment in its trade relationship with the United States. –Bernama

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