Malaysia

The upcoming Penang Waterfront Convention Centre (PWCC) is set to elevate Penang’s position as a premier MICE (meetings, incentives, conventions, and exhibitions) destination through a strategic partnership with South Korea’s KINTEX, a move that underscores the state’s commitment to international collaboration and economic development. The strategic agreement involves UM Perennial Development Sdn Bhd and KinMalaysia Management Sdn Bhd – a subsidiary of the Korea International Exhibition Centre (KINTEX) – as well as a separate partnership between the Penang Convention and Exhibition Bureau (PCEB) and KINTEX. Penang Chief Minister Chow Kon Yeow described the partnerships as a reflection of the deepening relationship between Penang and South Korea – not only culturally but also economically and strategically. “These collaborations are a leap forward in Penang’s MICE industry, promising to bring larger-scale conventions, enhanced collaborations, and greater international exposure,” Chow said during the signing ceremony. In 2024 alone, Penang hosted over 2,000 business events, drawing more than 300,000 delegates and contributing an estimated RM1.29 billion in economic impact. Also present at the event were Goyang Special City Mayor Lee Dong-Hwan, Penang State Tourism and Creative Economy Committee Chairman Wong Hon Wai, UM Perennial Director Datuk Tony Ling Thou Lung, PCEB CEO Ashwin Gunasekeran, and KINTEX CEO Lee Jae-yul. Datuk Tony Ling shared that PWCC’s 2025 calendar is already gaining momentum, with confirmed high-profile events such as: The 7th Asia Pacific Ministerial Conference on Housing and Urban Development Malaysia International Tech Edu K-Brand Week featuring the K-Beauty Expo Malaysia Water Tech Asia PWCC, set to officially open in October 2025, is expected to host more than 30,000 delegates in its inaugural year, generating approximately RM55.5 million in economic impact. The facility boasts a 76,000 sq ft net lettable area, banquet seating for 5,500, and theatre-style capacity for up to 8,000 guests. It will also include meeting rooms, VIP lounges, ample parking, and seamless access to retail, F&B, and hotel accommodations. PWCC is a core component of The Light City development, which features Penang’s largest waterfront retail mall, international hotels, premium office towers, and high-end residences.–BERNAMA

MIDF Amanah Investment Bank Bhd is holding firm on its forecast of a 4.6% growth in retail sales for 2025, moderating from a stronger 5.5% expansion in 2024. According to MIDF Research, the outlook remains cautiously optimistic, underpinned by a stable labour market, controlled inflation, and supportive fiscal and monetary policies. The research house highlighted that government initiatives such as direct cash aid, flexible access to retirement funds, wage hikes for civil servants, and an increased minimum wage will continue to support household spending throughout the year. “Despite the moderation, domestic consumption remains a key pillar of Malaysia’s economic growth,” MIDF Research noted in its latest report. The bank expects tourism recovery to further contribute to sustained retail momentum, particularly in key urban and tourist-centric areas. Retail trade in Malaysia recorded a 5.9% year-on-year (y-o-y) growth in February 2025, easing from 8.2% in January, based on the latest data from the Department of Statistics Malaysia. However, the broader distributive trade sector showed stronger gains, rising 5.1% y-o-y in February compared to 4.5% in January, buoyed by a rebound in motor vehicle sales and continued strength in wholesale trade. Wholesale trade grew 5.3% y-o-y in February, up from 4.8% in the preceding month — a positive signal for Malaysia’s broader retail ecosystem. While MIDF remains confident in the domestic growth narrative, it cautioned that external risks such as intensifying global trade tensions could weigh on consumer sentiment and spending patterns. “Geopolitical uncertainty continues to pose downside risks, but overall we expect Malaysian households to maintain consumption resilience, supported by ongoing policy measures and improving income prospects,” the research note stated.–BERNAMA

KUALA LUMPUR – Malaysia has secured a landmark agreement with the European Free Trade Association (EFTA) — comprising Iceland, Liechtenstein, Norway, and Switzerland — that will see the permanent elimination of import duties for Malaysian goods entering these markets. The signing of the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA) is scheduled for June 2025. The Ministry of Investment, Trade and Industry (MITI) confirmed the development on Friday, noting that MEEPA will replace Malaysia’s existing arrangement under EFTA’s Generalised System of Preferences — a temporary scheme that could be withdrawn as Malaysia progresses economically. MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz praised the agreement for offering much-needed stability and clarity, particularly as Malaysian exporters navigate uncertainty stemming from US-imposed tariffs. On 9 April, the United States implemented a 24% reciprocal tariff on Malaysian imports, which has since been paused for a 90-day period. “This agreement provides much-needed certainty for our exporters and strengthens Malaysia’s long-term economic ties with EFTA member states,” said Zafrul. “We are especially keen to expand trade in high-value goods and services.” Negotiations for MEEPA concluded on Friday, covering a comprehensive range of areas including trade in goods and services, investment, intellectual property, competition, government procurement, cooperation, sustainable development, and customs procedures. In 2024, total bilateral trade between Malaysia and EFTA countries amounted to RM14.4 billion. Malaysia’s key exports to the bloc included electrical and electronic (E&E) products, machinery, scientific instruments, chemicals, and rubber. Imports primarily comprised chemicals, machinery, E&E goods, scientific instruments, and metals. Beyond tariff-free access, MEEPA also paves the way for enhanced collaboration and knowledge-sharing between Malaysia and EFTA nations. The bloc is globally recognised for its expertise in research and development, particularly in renewable energy, science and technology, and high-precision industries. According to MITI, the agreement will allow Malaysia to tap into EFTA’s strengths through joint projects and capacity-building initiatives under memoranda of understanding — providing long-term opportunities for economic growth and development.–THE EDGE

KUALA LUMPUR:  The Royal Malaysian Police (PDRM) has seized and frozen assets worth over RM3.17 billion in connection with a large-scale Ponzi scheme involving the now-defunct MBI group. The operation, codenamed “Op Northern Star,” followed a series of cross-border raids conducted in March 2025, based on a Red Notice alert from Interpol. Inspector General of Police Tan Sri Razarudin Husain confirmed in a statement that the operation, launched on March 20, targeted assets believed to be proceeds of the fraudulent investment scheme operated by MBI from a neighbouring country. The police statement substantiates a report published by The Edge Malaysia in its March 31–April 6, 2025 issue, revealing that the Anti-Money Laundering Criminal Investigation Division (AMLA) of Bukit Aman led the crackdown, which sent shockwaves through Penang’s property sector. During the operation, eight Malaysian nationals – seven men and one woman, aged between 44 and 62 – were arrested. Among those detained were two businessmen and two lawyers holding the prestigious “Datuk” title. All suspects have been remanded for periods ranging from one to seven days to assist in investigations under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613). The police seized a wide range of assets, including over 600 bank and share trading accounts, which held more than RM1.16 billion. Additionally, 35 properties with an estimated value of RM2.01 billion were confiscated, along with high-end vehicles, luxury watches, designer handbags, jewellery, electronic devices, and various currencies in cash. Important documents were also seized, further supporting the investigation. The total estimated value of the assets seized and accounts frozen amounts to RM3.17 billion. Tan Sri Razarudin confirmed that all seized assets are believed to be the proceeds of illicit gains linked to the fraudulent investment activities. “PDRM will continue its investigations into individuals or entities suspected of being directly or indirectly involved in any activities related to illicit proceeds from this fraudulent investment scheme,” he added. The raids have uncovered new links between the MBI scheme and high-profile individuals, including property and share transactions involving listed companies. Seized documents reportedly include those related to the RM10 billion Penang World City (PWC) development in Bayan Mutiara, previously connected to Hemat Tuah Sdn Bhd, a company controlled by family members of MBI founder Tedy Teow. Authorities have also obtained documents related to investments in companies such as Mayu Global Group Bhd (formerly Atta Global) and HHRG Bhd (formerly Heng Huat Resources Group Bhd), both now under new management and ownership. Despite the extradition of MBI founder Tedy Teow to China in August 2024, investigations into the MBI Ponzi scheme appear far from over. These recent enforcement actions have reignited scrutiny into local entities and individuals who may still be involved in one of Malaysia’s largest financial frauds.

KUALA LUMPUR: Malaysia has proposed a technology safeguard agreement to the United States in an effort to reinforce investor confidence and protect the stability of global supply chains amid increasing trade tensions and tariff uncertainties. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the proposal aims to reassure both the US government and American companies operating in Malaysia, particularly those involved in semiconductor and electrical and electronics (E&E) manufacturing. “Many of the companies operating in Malaysia and exporting to the US are American-owned. We are working closely with these stakeholders, especially as semiconductors could potentially be impacted by upcoming tariff policies,” Zafrul said in an interview with CNBC on Friday. Semiconductors currently account for approximately 30% of Malaysia’s exports to the US, with another 30% comprising broader E&E products — sectors that are particularly vulnerable to shifts in global trade policies. Zafrul acknowledged that Malaysia’s open economy could face repercussions from the broader global tariff environment, particularly if the US implements new duties on Chinese imports or if there is further decoupling in critical technology sectors such as artificial intelligence and chip manufacturing. “We are studying the potential impact closely. Any tariff escalation, whether involving the US or China, affects not only direct trade but also multinational firms, including Malaysian companies integrated within global supply chains,” he said. He added that a forced decoupling between the US and China in high-tech industries would likely result in higher operational costs and supply chain disruptions — trends that are already becoming apparent. “With tariffs imposed on China and other parts of the world, we foresee further cost escalation. This, in turn, could dampen demand and impact global supply flows,” he noted. Malaysia’s pitch for a technology safeguard agreement comes at a time when governments and corporations are racing to mitigate geopolitical risks in the technology sector, particularly around semiconductors, which are central to everything from smartphones to advanced defence systems. Zafrul reiterated Malaysia’s commitment to fostering a stable, predictable investment environment and said such agreements could serve as a model for greater US-Malaysia collaboration in high-value industries. The country is also aligning its industrial policies, including the recently launched New Industrial Master Plan 2030, to build long-term resilience and competitiveness in advanced manufacturing and digital technologies.

KUALA LUMPUR: Sapura Resources Bhd has taken legal action against its former managing director, Datuk Shahriman Shamsuddin, and three other parties, seeking more than RM3.2 million in damages for alleged breaches of fiduciary, statutory, and contractual duties, as well as conspiracy to injure the company and its subsidiaries. The suit follows an internal investigation concluded in March, with findings submitted to both Bursa Malaysia and the Companies Commission of Malaysia (SSM). A formal complaint was also filed with the SSM for potential violations of the Companies Act 2016, and a police report has been lodged as part of regulatory requirements. In a filing with Bursa on Thursday, Sapura Resources said the writ of summons was filed at the High Court of Malaya in Kuala Lumpur, naming Shahriman as the first defendant. The other defendants include former employees Syed Haroon Omar Alshatrie, Syed Muhammad Hasan Alsagoff, and Explorer Group Sdn Bhd. The claims relate to payments made for deposits to Malaysia Airports Holdings Bhd (MAHB), mutual separation schemes, consultancy fees, trip expenses, and legal costs. The company is also seeking general, aggravated, and equitable compensation for alleged losses, including foregone business opportunities such as a potential IPO valued at RM82.1 million. Shahriman was placed on garden leave in September 2024 when the investigation commenced and subsequently resigned from his position in October. He had served on Sapura Resources’ board since 2005, and was appointed managing director in 2007. The legal proceedings come amid a long-standing dispute between Shahriman and his brother, Tan Sri Shahril Shamsuddin, over their family’s investment entity, Sapura Holdings Sdn Bhd, where both hold equal stakes of 40.5%. A petition to wind up Sapura Holdings was filed by Shahriman in September 2024, marking a significant escalation in their ongoing feud. At the centre of the investigation is Shahriman’s alleged interest in Explorer Group, a company said to be in direct competition with Sapura Resources’ aviation units, Sapura Aero Sdn Bhd and DNest Aviation Sdn Bhd. He has served as a director of Explorer Group since 2019. Sapura Resources said further updates will be provided to Bursa Malaysia as material developments arise. The company’s shares remained unchanged at 25 sen on Thursday, giving it a market capitalisation of approximately RM65 million.