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The contribution to the gross domestic product (GDP) by micro, small and medium enterprises (MSMEs) grew by 5% in 2023, with a value-added of RM613.1 billion and contributing 39.1% to Malaysia’s economy, according to the Department of Statistics Malaysia (DOSM). MSMEs’ growth has surpassed Malaysia’s GDP growth of 3.6% in 2023. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said that the services and manufacturing sectors are the main contributors, which comprises 84.8% of the MSMEs’ GDP. “The agriculture sector contributed 9.1% to MSMEs’ GDP, followed by the construction (4.5%) and mining and quarrying (0.5%) sectors,” he said in a statement. Mohd Uzir said the services sector increased 6.5% in 2023 from 17.2% in the preceding year. “The performance was supported by steady growth in the main sub-sectors, namely wholesale and retail trade, food and beverages and accommodation (5.7%), finance, insurance, real estate and business services (6.3%) and transportation and storage and information and communication (10.6%). The manufacturing sector recorded a growth of 1.5% (2022: 6%) and was influenced by positive growth in food, beverages and tobacco (5%) and non-metallic mineral products, basic metal and fabricated metal products (5.3) sub-sectors. The value added of MSMES in the agriculture sector increased 1.3% in 2023, higher than the 0.9% growth in the preceding year. The performance was supported by the rubber, oil palm, livestock & other agriculture (1.8%) and fishing (0.5%) sub-sectors. Meanwhile, MSMEs’ value added of construction, mining and quarrying sectors also expanded by 5.8% (2022: 5%) and 4.9% (2022: 10.7%), respectively. On another note, Mohd Uzir said exports of MSMEs stood at RM152.2 billion with a growth of 4.5% in 2023, slower than the 17.2% recorded in the preceding year. He said MSMEs’ employment continued to register an increase, albeit at a slower annual growth of 3.5% compared to 3.8% in 2022, to record a total of 7.86 million persons from 7.59 million persons in 2022. “Accordingly, the contribution of MSMEs employment to Malaysia’s employment in 2023 was 48.5%, which grew 0.3 percentage points from 48.2% in 2022,” he said. — BERNAMA

KUALA LUMPUR: The implementation of targeted diesel subsidies is not expected to have a significant impact on inflation and economic growth as the government has taken into account the rate of increase in diesel retail price and the cash assistance provided. Therefore, the official 2024 forecasts for inflation and gross domestic product (GDP) growth remain at 2%-3.5% and 4%-5% respectively, said the Ministry of Finance (MoF). “In principle, the government takes the approach of subsidy rationalisation while continuing to provide subsidies to groups that are in need, especially those with low to medium incomes,” MoF said in a written reply on the Parliament website. The ministry explained that the retargeting of subsidies is intended to reduce leakages to groups that are not eligible to receive them such as foreign citizens, large private companies and high-income individuals. Under the diesel subsidy retargeting, cash assistance to vehicle owners is only given to 300,000 individuals with assistance provided based on a single rate of RM200 per month, which is estimated to be sufficient for individual owners of diesel vehicles who mainly use pickup trucks. “In contrast, the number of RON95 petrol consumers is larger, including owners of motorcycles and cars as well as e-hailing drivers. Therefore, if cash assistance is used as the ROM95 approach, it may differ from diesel,” MoF said. — BERNAMA

KUALA LUMPUR: ASEAN member states will transform into a more competitive region and become the best investment destination by complementing each other. Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA) Chairman Takero Sawamura said during the 16th dialogue between FJCCIA and ASEAN Secretary-General Dr Kai Kim Hourn, that in order to maximise ASEAN’s competitiveness and attractiveness, regional integration is of key importance. “For this reason, FJCCIA would like to support the ASEAN Economic Community (AEC) Post-2025 Agenda,” he said in a statement. On 17 July, FJCCIA held a dialogue with Kao at the ASEAN Secretariat in Jakarta. Representatives from 9 ASEAN chambers including the Japanese Chamber of Trade & Industry Malaysia (Jactim) gathered to discuss ways in which Japanese companies can contribute to the future sustainability of ASEAN and human resource development, as well as potential improvements to systems and rules to make ASEAN an even more attractive business destination. The FJCCIA consists of 10 Japanese Chambers of Commerce and Industry (JCCIs) in 9 ASEAN member states with 7,370 companies in total. The Japan External Trade Organisation (Jetro) facilitated the dialogue as an intermediary between Japanese companies operating in ASEAN, the ASEAN Secretariat and various stakeholders. Sawamura noted that from a long-term perspective, the FJCCIA is greatly interested in the formulation of the “AEC Post-2025 Agenda”, which will chart the path beyond the AEC Blueprint 2025. Since its adoption in 2015, the AEC Blueprint 2025 charted the strategic path for ASEAN’s economic integration and work is in progress now for ASEAN policy makers in the development and preparation of the post-2025 agenda. Six Pillars of Recommendations for AEC Post-2025 The proposals outlined by FJCCIA were also developed in alignment with the economic components of the ASEAN Community Vision 2045, which outlines future strategic direction of ASEAN’s economic integration. The 6 pillars proposed by FJCCIA for the ASEAN economy comprised a seamlessly connected single market and production site, green economy and sustainability, digital economy and innovation, and emerging technologies. It included proposals for ASEAN to play an active role in the global community with resilient and abundant human resources and inclusive and equitable development. FJCCIA proposed eliminating non-tariff barriers and cutting down market-distorting policies. To promote green economy and sustainability, FJCCIA proposed the facilitation and systems for the trade of renewable energy, electricity certificates and carbon credits in a wider region. In the promotion of the digital economy, proactive implementation of countermeasures against counterfeit goods on e-commerce sites was proposed. It also suggested developing a legal framework and system for digital data and governance as well as strengthening supply chain connectivity and resilience. Sawamura, who is also the Jactim President, proposed the electronification for receiving and issuing the specified certificates of origin for the Regional Comprehensive Economic Partnership (RCEP) Agreement involving countries in the Asia-Pacific region and the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement. He is also the Deputy Chief Executive Officer of MSIG Insurance (Malaysia) Bhd. FJCCIA’S Vision on ASEAN FJCCIA said 2023 saw the formulation of ‘ASEAN-Japan Economic Co-Creation Vision’ by the Japanese public and private sectors. “This vision aims to build a secure, prosperous and free economy and society through fair and mutually beneficial economic co-creation, with the trust ASEAN and Japan, have nurtured over the past 50 years of friendship and cooperation as driving force,” it said. In support of this vision, the FJCCIA, as a member of ASEAN economic system, would like to make an active contribution through sharing practices for economic growth and overcoming social challenges and being grounded in diverse realities and geopolitical conditions of the region. It would also like to promote 2-way exchange of human resources to bring mutually beneficial innovations. A survey conducted by member companies under FJCCIA revealed that business confidence deteriorated in 2023 due to factors such as dampened demand in the local market but is expected to recover in 2024. The survey also showed that efforts toward carbon neutrality and dealing with decoupling also need to be addressed as urgent issues. — BERNAMA

YANGZHOU: Meihua International Medical Technologies (MHUA), a reputable manufacturer and provider of Class I, II and III disposable medical devices with operating subsidiaries in China, announced that its board of directors has approved and authorised a share repurchase program of up to US$3 million of the company’s outstanding ordinary shares with the intention to cancel all shares repurchased pursuant to this Share Repurchase Programme. The ordinary shares may be repurchased from time to time through open market purchases or privately negotiated transactions at prevailing prices, in accordance with securities laws and other legal requirements, including Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, as well as the Company’s insider trading policy, and subject to market conditions and other factors. “With ongoing efforts to innovate, expand our premium product offerings, and enhance operational efficiency through optimised production processes and the application of AI, we continue to strengthen our business model and generate significant cash flow, which enables us to invest for the long term,” said Meihua CEO, Xin “Steven” Wang. “This Share Repurchase Programme including the planned cancellation of repurchased shares not only underscores our confidence in Meihua’s future growth but also demonstrates our commitment to enhancing shareholder value through concrete actions,” he added. However, the adoption of this Share Repurchase Programme does not obligate the company to acquire any specific amount of ordinary shares and it may be suspended or discontinued at any time by the board. The company expects to implement the Share Repurchase Program and a corresponding 10b5-1 plan following the filing of its Semi-Annual Report on Form 6-K for the period ending 30 June 2024.

HANOI: Asian Infrastructure Investment Bank (AIIB) provides an investment of US$75 million to the green and blue bonds issued by Southeast Asia Commercial Joint Stock Bank (SeABank). AIIB’s US$75 million investment is expected to further strengthen the bank’s strong capital base to expand financing for sustainable economic activities linked to the sea and water, and grow green assets such as green buildings, renewable energy and energy efficiency. “Vietnam’s Nationally Determined Contribution lays emphasis on the importance of resource mobilisation from financial and international credit institutions to support climate mitigation and adaptation ambitions. “This cooperation will supplement the ongoing measures to reduce greenhouse gas emissions and contribute to the thematic capital market development,” said AIIB Director General of Financial Institutions and Funds, Global, Gregory Liu. Following SeABank’s sustainable commitment, one of the current priorities is to issue the first blue bond in Vietnam and to issue the first green bond by a private commercial bank in the country. “We hope the partnerships with financial institutions such as AIIB and IFC could supplement SeABank with capital sources to foster green credit and sustainable strategies associated with green and blue economy,” said SeABank Vice Chairwoman of the BOD, Le Thu Thuy. The investment was mobilised by the co-investor introduction of IFC, SeABank’s strategic partner in terms of sustainable projects, in partnership with the Australian government. Previously at the end of June, IFC provided a US$150 million financing package which includes investments in SeABank’s blue and green bonds. Sharing the same goal of promoting Vietnam’s sustainable economy, together AIIB and IFC are investing US$150 million in SeABank’s blue and green bonds. Further, IFC will advise SeABank on the bond issuance, application of related frameworks, and pipeline development. With its sustainable development goal, in recent years, SeABank has continuously prioritized application of E&S risk management, implementation of financial inclusion and green finance projects. As a result, the bank has been entrusted with and has received continuous investments from various international financial institutions such as DFC, IFC and ADB with a total capital of approximately US$850 million.