News

The Malaysian Investment Development Authority (MIDA) and global logistics leader DHL have renewed their longstanding partnership through a memorandum of understanding (MoU) signed yesterday, reaffirming their joint commitment to strengthening Malaysia’s logistics and supply chain ecosystem. The agreement brings together all four DHL business divisions operating in Malaysia – DHL Express, DHL Supply Chain, DHL Global Forwarding, and DHL eCommerce – in closer collaboration with MIDA. The renewed alliance is designed to further enhance Malaysia’s appeal as a preferred destination for foreign direct investment (FDI), leveraging its strategic location and established logistics infrastructure. Datuk Wira Arham Abdul Rahman, Chief Executive Officer of MIDA, described the partnership as a strategic milestone in Malaysia’s continued evolution into a smart logistics hub for the Asia-Pacific region. “Malaysia’s logistics sector has undergone a remarkable transformation, emerging as a powerhouse of innovation and technological advancement,” he said. “We are witnessing significant developments in digital technology and smart automation, ranging from AI-powered route optimisation and real-time tracking to advanced warehouse robotics and autonomous delivery systems.” Julian Neo, Managing Director of DHL Express Malaysia and Brunei, highlighted Malaysia’s growing relevance amid shifting global supply chain strategies. “As multi-shoring and multi-sourcing gain strategic importance, Malaysia is well positioned to capitalise on these trends due to its regional connectivity and conducive business environment,” he said. “With our extensive network and experience in cross-border trade, DHL Express is proud to support MIDA in attracting global investors through seamless market entry and end-to-end logistics solutions.” DHL reaffirmed its commitment to enhancing Malaysia’s visibility among multinational corporations looking to diversify manufacturing and sourcing operations. It emphasised that its comprehensive logistics and supply chain capabilities, combined with its strong presence in Malaysia, provide foreign investors with a critical advantage in building resilient, efficient supply networks. -Bernama

SME Corporation Malaysia (SME Corp) has announced a strategic collaboration with the Selangor Human Resource Development Centre (SHRD), aimed at embedding innovation as a fundamental growth strategy for small and medium enterprises (SMEs) across Malaysia. According to a statement released by SME Corp, the initiative commenced with the first in a series of three innovation seminars under the theme “Future-Ready SMEs: The Power of Innovation.” The seminar engaged over 70 SMEs from diverse sectors, equipping participants with the tools and insights necessary to implement innovation-led strategies designed to improve productivity, enhance competitiveness and strengthen readiness for global market expansion. This initiative forms part of SME Corp’s broader strategic direction under the 13th Malaysia Plan (13MP), which seeks to support the transformation of domestic SMEs from small-scale operations into medium-sized enterprises with stronger international market presence. Chief Executive Officer of SME Corp, Rizal Nainy, emphasised the importance of timing in delivering innovation-focused programmes, stating that such initiatives are essential to building resilience and long-term competitiveness among Malaysian SMEs. “By fostering innovation among SMEs, we aim to amplify their contribution to national productivity and enable sustainable growth amid an increasingly competitive global landscape,” he said. SME Corp confirmed that the subsequent two seminar sessions are scheduled to take place in Kuala Lumpur in July and August. These sessions will be held on an invitation-only basis for selected SMEs. Additional details are available via the agency’s official website at www.smecorp.gov.my. -Bernama

Kim Loong Resources Bhd reported a 6% year-on-year increase in revenue to RM411.7 million for the first quarter ended 30 April 2025 (1QFY26), supported by stronger fresh fruit bunch (FFB) production and improved selling prices. However, net profit for the quarter declined 15.3% to RM41.9 million, impacted by a reduced processing margin from milling operations. The company noted that despite this decline, the higher selling price of FFB and improved production volumes helped underpin revenue growth. On a quarter-on-quarter basis, the group’s net profit nearly doubled from RM22.8 million recorded in the fourth quarter ended 31 January 2025, even as revenue fell from RM443.3 million. The improvement in earnings was attributed to higher FFB output during the quarter. Looking ahead, Kim Loong Resources is targeting a 5% to 10% increase in FFB production for the financial year ending 31 January 2026. The company expects this growth to be driven by the favourable age profile of its young, productive palms and the continued progress of its replanting programme. -The Star

The Malaysia Pavilion at Expo 2025 Osaka has welcomed more than 1.5 million visitors within the first three months of the event, surpassing initial expectations and reinforcing the nation’s strategic global positioning. According to a statement by the Ministry of Investment, Trade and Industry (MITI), the strong public response was further complemented by the achievement of over 69 per cent of Malaysia’s total trade and investment target of RM13 billion. “This success boosts Malaysia’s momentum in achieving the two main objectives of participating in the World Expo, namely driving strategic economic outcomes and expanding the country’s engagement with the global community,” MITI said. Director of the Malaysia Pavilion, Ellyza Mastura Ahmad Hanipiah, expressed appreciation for the overwhelming response and interest from both the public and global stakeholders. “We hope to continue to create meaningful experiences so that every visitor brings home the smiles and fond memories of Malaysia,” she said. -Bernama

Malaysia’s key banking associations have moved to reassure consumers that essential everyday banking services will remain exempt from the expanded service tax on financial services, set to come into force on 1 July. In a joint statement, the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Malaysian Investment Banking Association (MIBA) confirmed that the revised scope of the tax will be limited to selected corporate, treasury and investment banking services. They emphasised that routine financial services used by individual consumers—including those involving fees or commissions linked to current and savings accounts, e-wallets and credit cards—will not fall within the scope of the expanded tax. Additionally, core services such as cash deposits and withdrawals, payments, local fund transfers, debit card issuance and related annual fees, as well as over-the-counter transactions including bill payments and statement printing, will remain exempt. “These are considered essential banking services and remain out of scope for service tax purposes,” the associations said, reaffirming their commitment to minimising disruption to the public. Interest charges, profit-based fees, penalties and credit card annual fees are also excluded from the revised tax framework, in a move designed to ensure that routine financial interactions for individuals are not impacted. “All banks under ABM, AIBIM and MIBA are committed to transparency. Where the service tax applies, the charges will be clearly indicated and communicated to customers,” the associations added. Customers with questions about how the changes may affect them are encouraged to contact their respective banks directly. The banking industry reiterated its intent to work closely with relevant authorities to ensure a smooth and responsible transition. -FMT