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Month: August 2024

Leveraging the AI Advantage

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By Jeannie Cotter

“The global AI market is projected to reach a staggering US$15.7 trillion by 2030.” – PwC (Global Artificial Intelligence Study: Exploiting the AI Revolution)

The boundaries between humans and artificial intelligence (AI) continue to blur, rendering the concept of soulless, impersonal machines as archaic notions of the past. Who would have ever thought that AI bots, once imagined as such, would bear whimsical and evocative names like Bard, Bing, ChatGPT or Claude, each moniker hinting at the vast potential and enigmatic nature of these technological marvels?

In today’s fast-paced digital landscape, innovation is the currency of success, and AI is the game-changer businesses can’t afford to ignore.

As the world becomes increasingly digitalised, businesses are facing unprecedented challenges and opportunities. To stay ahead of the curve, companies must embrace the transformative power of AI and harness its potential to drive innovation, streamline operations and gain a competitive edge.

The global AI market is projected to reach a staggering US$15.7 trillion by 2030, according to a report by PwC. This exponential growth is fuelled by the increasing demand for intelligent systems across various industries, from healthcare and finance to manufacturing and retail.

A recent Kaspersky study has revealed that nearly two in every three (61% and 64%) companies in Asia Pacific (APAC) have implemented artificial intelligence (AI) and Internet of Things (IoT) in their businesses’ infrastructures. Additionally, 28% and 26% are planning to adopt AI and IoT within two years.

The Rise of Generative AI

Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation.”

One of the most exciting developments in the AI landscape is the emergence of generative AI models like ChatGPT, text-to-video and text-to-image tools. These cutting-edge technologies are revolutionising the way businesses approach content creation, product development, and customer engagement.

ChatGPT, a large language model developed by OpenAI, has captured the imagination of the business world with its ability to generate human-like text on virtually any topic. From writing reports and marketing materials to generating code and analysing data, ChatGPT has the potential to significantly enhance productivity and creativity.

According to a survey by Statista conducted across four Southeast Asian countries in 2023, 62% of businesses would likely or very likely use AI-powered chatbots such as ChatGPT for online search purposes in the future. This adoption rate highlights the growing recognition of the value these tools can bring to organisations.

Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation. These tools enable businesses to generate high-quality videos and images from simple text prompts, revolutionising the way they engage with customers and communicate their brand narratives.

A study conducted in 2023 by the software firm HubSpot found that video was the most popular and effective media format for companies, with 50% of marketers leveraging video in their marketing strategy, followed closely by images at 47%.

Improving Operational Efficiency with AI

While generative AI tools are capturing headlines, businesses are also leveraging AI to optimise their internal operations and streamline processes. From predictive maintenance in manufacturing to fraud detection in finance, AI is playing a crucial role in enhancing efficiency, reducing costs and minimising errors.

According to a report by Accenture, high-performing organisations that have successfully implemented AI in their operations have seen a 50% increase in revenue by using AI. On the other hand, fintech companies that implement chatbots were projected to realise cost savings of US$7.3 billion in 2023, according to a report by Juniper Research.

AI-Powered Customer Experience

“A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.”

Beyond operational excellence, AI is transforming the way businesses interact with customers. Intelligent chatbots and virtual assistants are revolutionising customer service, providing 24/7 support and personalised experiences. Additionally, AI-powered recommendation systems are enhancing e-commerce platforms, offering tailored product suggestions and increasing customer satisfaction.

A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.

KFC exemplifies how brands can use AI to deliver personalised shopping experiences. The fast-food chain teamed up with Chinese search engine Baidu to develop facial recognition technology capable of predicting customer orders. The system analyses estimated age and mood to recommend menu items tailored to each individual.

For instance, a 20-year-old male might be offered a crispy chicken sandwich, roasted wings and a coke, while a 50-year-old female could receive suggestions for porridge and soybean milk. This approach streamlines ordering while providing a level of personalisation that resonates with many patrons.

In the cosmetics industry, Sephora enhances its customer experience through an AI-powered Virtual Artist app. Leveraging augmented reality, the app scans users’ faces, allowing them to virtually ‘try on’ various makeup products before purchasing. This interactive feature guides informed buying decisions while injecting an element of fun into e-commerce.

These use cases across the food and cosmetics industries exemplify how AI can significantly elevate customer experiences within diverse sectors by enabling personalised, seamless engagement.

Maximising AI in Customer Service

By incorporating these practices, businesses can harness the power of AI to optimise customer service while maintaining a human touch.

AI as Support, Not Replacement: Utilise AI to enhance customer service, focusing on streamlining processes rather than replacing human interaction. Identify areas for automation, such as handling routine queries, while reserving human intervention for emotionally charged situations.

Reducing Wait Times: Employ AI to swiftly address simple queries, minimising wait times and ensuring prompt customer engagement. By allowing AI to handle basic tasks, human agents can focus on more complex issues, fostering a seamless customer experience.

Automating Communication: Leverage AI to automate various aspects of customer communication, including follow-ups, email drafting and CRM data retrieval.

Crisis Detection and Alerts: Utilise AI’s natural language processing to detect shifts in customer behaviour or emotions, enabling proactive crisis management. Set up alerts to notify service teams of potential issues and intervene when necessary, maintaining customer satisfaction.

Ethical and Responsible AI

While the potential benefits of AI are undeniable, businesses must also grapple with the ethical and responsible deployment of these powerful technologies. Issues such as data privacy, algorithmic bias, and transparency are critical considerations that cannot be overlooked.

The 2024 Edelman Trust Barometer: Insights for Tech report reveals that AI stands at a critical juncture. Worldwide, 30% of participants welcome the innovation, while 35% oppose it. Over the last five years, trust in AI companies has declined globally, dropping from 62% to 54%.

Among those who harbour reservations about the increasing adoption of AI, their primary concerns include privacy issues, fears of AI dehumanising society, insufficient testing and evaluation and the potential for harm to individuals and communities.

In response, businesses must prioritise the development of robust governance frameworks and invest in AI ethics training to ensure their AI systems are fair, transparent and aligned with societal values.

As businesses integrate AI and other interconnected technologies, cybersecurity emerges as a critical concern. According to Adrian Hia, Managing Director for Asia Pacific at Kaspersky, “Undoubtedly, new technological tools play a vital role in improving the efficiencies and productivity of enterprises in the region. However, there are loopholes, particularly in cybersecurity, that need to be addressed.

“Our recent study showed more than half of the companies are using AI and IoT in their organisations, but 21% of them think AI and IoT are somewhat difficult to protect. It shows that there is a skills and knowledge gap that needs to be patched with urgency.”

Ivan Vassunov, Vice President, Corporate Products at Kaspersky, echoes this sentiment, stating, “Interconnected technologies bring immense business opportunities, but they also usher in a new era of vulnerability to serious cyberthreats. With an increasing amount of data being collected and transmitted, cybersecurity measures must be strengthened.

“Enterprises must protect critical assets, build customer confidence amid the expanding interconnected landscape, and ensure there are adequate resources allocated to cybersecurity so they can use the new solutions to combat the incoming challenges of interconnected tech.”

The Road to Unlocking AI’s Full Potential Responsibly

The AI revolution is here, and businesses that fail to embrace it risk being left behind. As the world becomes increasingly interconnected and data-driven, the ability to harness the power of AI will be a defining factor in determining long-term success.

However, the journey towards AI adoption is not without its challenges. Companies must navigate the complex ethical and security landscapes that come with these powerful technologies. Building a robust AI governance framework, prioritising responsible and ethical AI practices and investing in cutting-edge cybersecurity solutions are crucial steps in mitigating risks and ensuring the safe and trustworthy deployment of AI systems.

Ultimately, the true competitive advantage lies not just in adopting AI, but in doing so in a way that aligns with societal values, respects privacy and fosters trust. By striking this delicate balance, businesses can unlock the full transformative potential of AI, driving innovation, enhancing efficiency and delivering exceptional customer experiences.

Those who approach it with foresight, responsibility and a commitment to ethical practices will be the ones who truly unleash the power of this revolutionary technology and secure a lasting competitive edge.

Securing the AI Revolution

Given the scale of change that interconnected technologies like AI are likely to bring, organisations must develop a strategy to implement and protect them. Based on research findings, Kaspersky recommends four effective ways to ensure organisations are prepared to protect interconnected technologies:

  1. Adopt secure-by-design principles. By integrating cybersecurity into each stage of the software development lifecycle, secure-by-design software and hardware become resilient against cyberattacks, contributing to the overall security of digital systems. Cyber immune solutions allow companies to minimise the threat surface and significantly decrease the ability of cybercriminals to perform a successful attack.
  2. Train and upskill your workforce. Building a cyber-aware culture requires a comprehensive strategy that empowers employees to gain knowledge and put it into practice. With the right cyber-security training, IT professionals can advance their skills and defend their companies against attacks.
  3. Upgrade your cybersecurity solutions. As companies adopt interconnected technologies like AI, they need cybersecurity solutions with advanced features, enabling them to collect and correlate telemetry from multiple sources and provide effective threat detection and rapid automated response. For AI solutions built on containers, it’s important to secure the infrastructure with container security solutions, which allow companies to detect security issues at every stage of the app lifecycle.
  4. Meet regulations. Avoid legal problems or reputational damage by ensuring your cybersecurity practices meet changing standards and legal requirements.

By following these recommendations, organisations can harness the power of AI and interconnected technologies while mitigating the associated cybersecurity risks.

SC Launches GROWMatch To Bridge Financing Gaps and Drive Sustainable Growth in Agri-Business

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The Securities Commission Malaysia (SC) today unveiled GROWMatch, a new matching
initiative that allows agri-business entrepreneurs to showcase their projects and attract
necessary funding.

This initiative aims to address the financing gap faced by agri-businesses and promote
sustainable growth in the sector.

The Minister of Digital, YB Tuan Gobind Singh Deo delivered the keynote address at the
event. Alternative financing options in the capital market can help spur the country’s
economic growth and address food security challenges.

GROWMatch taps into equity crowdfunding (ECF) and peer-to-peer financing (P2P)
platforms to support micro, small, and medium-sized enterprises (MSMEs) in strategic
and underserved sectors.

Since their inception, both ECF and P2P platforms have helped over 18,000 MSMEs raise
nearly RM8 billion in funding as of June 2024.

GROWMatch, which is aligned with the SC’s Five-Year Roadmap (2024-2028) for MSMEs
and mid-tier companies, is focusing on providing risk capital through private markets.
Its partners1, which include venture capital firms and government agencies, play a key
role in mentoring applicants, refining their business strategies and connecting them with
investors.

The SC Chairman Dato’ Mohammad Faiz Azmi highlighted that GROWMatch leverages the
strengths of diverse ecosystem partners to provide comprehensive support and resources
for food security innovators, especially small companies facing funding challenges.

“GROWMatch not only connects entrepreneurs with investors, but also offers mentorship
and resources to help them succeed in the competitive market,” he said at the launch.

“The diversity and focus on innovative and sustainable tech-driven solutions by the
shortlisted companies in GROWMatch signal a promising future for the agriculture
industry, and the capital market is excited to support these entrepreneurs,” he added.

The GROWMatch pitching session today saw 20 shortlisted entrepreneurs presenting
innovative solutions to ECF/P2P partners, vying for various financing options in the food
security value chain.

Selected from over 70 applications, these entrepreneurs stood out for their track record,
business model and execution strategy.

At the event, the also SC signed a Memorandum of Understanding (MoU) with the Malaysia Digital Economy Corporation (MDEC), Selangor Information Technology and Digital Economy Corporation (Sidec), Universiti Putra Malaysia (UPM) and Impact Circle.

The MoU seeks to promote food security self-sufficiency through alternative financing. It
combines diverse expertise to develop, incubate and finance opportunities that support
agripreneurs scale their business and contribute to the overall goal of achieving food
security.

For more information on GROWMatch and the full list of 20 shortlisted companies, visit
https://www.scxsc.my/new/programmes/pitch-amp-match/growmatch

 

Image ‘Designed by Freepik’

FedEx Introduces Surround® Monitoring and Intervention Solution to Enhance Global Supply Chain Visibility

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The FedEx Surround® monitoring and intervention tools integrate seamlessly with the company’s existing transportation network, enhancing its robust suite of shipping and tracking solutions. With three levels of service for customers to choose from that comprise of Select, Preferred and Premium, the tools support a wide range of industries including healthcare, aerospace, high-tech, providing critical updates and interventions that ensure the integrity and timely delivery of sensitive shipments.

With the FedEx Surround® monitoring and intervention suite, FedEx provides three key benefits to its customers:

  1. Flexibility and Control– Surround® dashboard provides near real-time global visibility and predictive analytics using AI and SenseAware ID.
  2. Greater Value– Special handling code enhances operational capability, enabling prioritized boarding and handling, cold chain support and in- and out-of-network intervention.
  3. Peace of Mind– 24×7 expert support ensures proactive monitoring and intervention with dedicated teams at hubs, ramps, and stations, including customized reporting for customers.

“At FedEx, we are constantly innovating to meet the evolving needs of our customers. With data-backed intelligent solutions and the introduction of FedEx Surround®, we are building smart logistics for our customers. The tools are not just about tracking; it’s about smartly intervening in real-time to ensure that shipments are not only monitored but also actively managed to mitigate risk. This is a game-changer for businesses relying on just-in-time delivery and high-stakes shipments,” said Kawal Preet, president, Asia Pacific, FedEx.

The FedEx Surround® monitoring and intervention solution in Asia Pacific utilizes advanced sensor technology including SenseAware ID with near real-time data analytics to provide continuous monitoring and proactive interventions for shipments worldwide. FedEx has long been a pioneer in sensor-based logistics, providing advanced tracking of urgent and high value shipments. SenseAware ID uses a lightweight, compact sensor that transmits precise package location data every two seconds via Bluetooth Low Energy (BLE) to WiFi access points or established gateway devices throughout the FedEx network. Packages equipped with the SenseAware ID sensor are tracked hundreds of times versus dozens of times with traditional package scanning protocols, which provides an unprecedented amount of real-time data about the location of the shipment.

FedEx has a strong commitment to innovation demonstrated by the strategic use of AI and machine learning technologies within the FedEx Surround® system. These technologies predict potential disruptions in the shipping process, allowing FedEx and its customers to swiftly make informed decisions. FedEx Surround® monitoring and intervention is set to transform the way businesses manage logistics, offering enhanced visibility and control over their supply chains.

For more information on FedEx Surround® monitoring and intervention, and other innovations, please visit fedex.com.

About Federal Express Corporation

Federal Express Corporation is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. Federal Express Corporation uses a global air-and-ground network to speed delivery of time-sensitive shipments by a definite time and date.

For further information, please contact:

Shahira Amiera (Myra), Perspective Strategies                

Tel        : +603 7491 3138

Mobile : +60 12-644 0510

Email   : shahira.amiera@perspective.com.my

SC’s Guidelines on Technology Risk Management Take Effect Today

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The Guidelines were initially released in August 2023 for capital market entities to be familiar with risk management practices, which now expand beyond cyber security to include technology risks, among others.

The revised Guidelines emphasise the significance of strengthening operational reliability, security and resilience against technology disruptions. The Guidelines also set out the SC’s expectations on risk management practices to be adopted by industry.

The key areas covered include ‘change management’ process, third party service providers, reporting requirements, technology audit, board oversight and accountability over technology risks.

The CrowdStrike outage highlights the vulnerability of our digital infrastructure and the widespread impact such incidents can have on organisations. It also emphasises the importance of regulations like the Guidelines in strengthening operational resilience practices.

In light of this incident, it is imperative that all capital market entities recognise the importance of observing the Guidelines. This not only protects against immediate technology risks, but also builds a resilient, secure, and ethical technological landscape for the future.

This initiative underscores the SC’s ongoing efforts to strengthen Malaysia’s capital market and investor confidence. The SC has updated various related guidelines today following the implementation of the Guidelines. The SC has also made available a list of updated Frequently Asked Questions (FAQs) on the Guidelines to provide further clarity to capital market entities.

The revised Guidelines are available at https://www.sc.com.my/regulation/guidelines/cyber-risk-and-technology-risk .

 

Kenanga Futures Launches “Mastering Futures” Campaign to Empower Traders

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The “Mastering Futures” campaign is designed to provide the general public with the knowledge and insights on how Futures trading operates. With the ability to hedge against risks, diversification of portfolio, and leverage market opportunities, the campaign offers participants a unique avenue to enhance their financial strategies.

Participants in the campaign stand a chance to win exciting prizes, including TNG e-Wallet credit vouchers worth RM100. Most notably, eligible participants will have the opportunity to trade and earn a spot in a prestigious two-day Trading Masterclass, valued at RM20,000. Led by the industry experts, the Masterclass provides participants with advanced techniques, real-time market analysis, and hands-on trading simulations. This initiative aims to make Futures trading more accessible for retail traders, aligning perfectly with the campaign’s mission of Building a Smart Derivatives Trading Community.

In addition to these rewards, Kenanga Futures is offering new clients the opportunity to open a Futures trading account for just RM10 throughout the campaign period. Successful registrants will also receive access to an exclusive Futures basic e-learning course, equipping them with essential knowledge to accelerate their journey in Derivatives trading.

“The ‘Mastering Futures’ campaign is a unique initiative designed to make futures trading more mainstream and accessible to the general public. For the first time, we are offering comprehensive training that ranges from basic e-learning courses to an in-depth Masterclass – all aimed in educating and equipping newcomers and novice traders with a solid foundation in futures trading and advance them to the next level,” said Azila Abdul Aziz, Chief Executive Officer/Executive Director & Head of Listed Derivatives at Kenanga Futures.

“By injecting e-‘learn and trade’ avenues, we simplify the learning process, aligning with our objective in Building a Smart Derivatives Trading Community. We believe this approach will elevate traders to a more mastery levels, contributing to the growth of the K-Economy and shaping the future landscape of derivatives trading,” Azila concluded.

The campaign welcomes both new and existing Kenanga Futures clients and underscores its dedication to making trading more accessible and fostering a thriving, knowledgeable trading community. Visit www.kenangafutures.com.my/mastering-futures/ to start your journey in futures trading today.

-Terms and conditions apply

Kenanga Futures Sdn Bhd
Kenanga Futures Sdn Bhd is an award-winning Malaysian listed derivatives broker regulated under the Securities Commission Malaysia and Bursa Malaysia Berhad. The company offers clients electronic market access to trade listed products on Bursa Malaysia Derivatives, CME Group and Hong Kong Exchange. Apart from being a direct member of Bursa Malaysia Derivatives Berhad and the clearinghouse, the company is also a registered broker with the U.S. CFTC and was granted exemption relief pursuant to Commission Regulation 30.10 which enables the company to paper directly with entities in the U.S. On the domestic front, the company has an extensive network with 24 branches nationwide licensed to trade listed derivatives.

Clients can access both U.S. and Malaysian listed derivatives on a single trading platform via the company’s trademarked real-time customised online trading solution, KDF TradeActive™. KDF TradeActive™ is available on both desktop and mobile devices, giving clients easy access to real-time market data and flexibility to trade on-the-go.

This Press Release was issued by Kenanga Group’s Marketing, Communications & Sustainability Department.

The issuer is solely responsible for the content of this announcement.

The Halal Horizon – Malaysia’s Play on the Halal Market

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Setting an International Standard

As a predominantly Muslim nation with a strong track record in promoting Islamic finance and halal standards, Malaysia is uniquely positioned to capitalise on this burgeoning market. The country’s comprehensive approach includes regulatory frameworks, industry development, international collaborations, and leveraging its Islamic heritage to establish a leadership role in the global halal economy.

One of the key strategies is the establishment of a robust regulatory framework and standardisation process for halal products. The Department of Islamic Development Malaysia (JAKIM) plays a crucial role in this regard. JAKIM’s halal certification is internationally recognised and is considered one of the most stringent and reliable halal certification processes globally. This certification assures consumers that products and services comply with Islamic law, thus fostering trust and credibility in Malaysian halal products.

Moreover, Malaysia has developed the Malaysia Halal Certification (MHC), which sets high standards for halal certification and ensures consistency and quality.

 

The MHC is not limited to food products but extends to pharmaceuticals, cosmetics, logistics, and even tourism. This comprehensive certification system is a cornerstone of Malaysia’s strategy to dominate the global halal market, as it guarantees that all certified products meet strict halal requirements, thereby enhancing their appeal to Muslim consumers worldwide. The Malaysian government has also been very proactive in promoting the halal industry through various development programs and incentives. The Halal Industry Master Plan (HIMP) outlines the strategic direction for the industry’s growth, focusing on innovation, technology adoption, and capacity building. The plan aims to position Malaysia as the global hub for halal products and services by leveraging its existing infrastructure and expertise.

 

Widening Market Access

It is quite calming in trade fairs and halal expos, and even organising one like the Malaysia International Halal Showcase (MIHAS), these initiatives provide a platform for local businesses to showcase their products to an international audience.

Furthermore, Malaysia has established strategic partnerships with other countries to harmonise halal standards and certification processes. For instance, collaboration with countries in the Gulf Cooperation Council (GCC) and the Organization of Islamic Cooperation (OIC) ensures that Malaysian halal certifications are recognised and accepted globally. Such collaborations not only facilitate market access for Malaysian halal products but also strengthen the country’s position as a leader in setting global halal standards.

 

Embracing Challenges

Despite its comprehensive strategy, Malaysia faces several challenges in its quest to become a global halal leader. Competition from other countries, particularly those in the Middle East and Southeast Asia, is intense. Countries like Indonesia, Thailand, and the United Arab Emirates are also investing heavily in their halal sectors and are emerging as strong competitors.

To address these challenges, Malaysia must continue to innovate and adapt to changing market dynamics. This includes enhancing its research and development capabilities, embracing new technologies, and maintaining the high standards of its halal certification process. Additionally, increasing consumer awareness and education about halal products can further drive demand and acceptance in non-Muslim markets.

 

What the Future Holds

The future outlook for Malaysia’s halal market is promising. With a growing global Muslim population and increasing demand for halal products, Malaysia is well-positioned to capitalise on these trends. The country’s strategic approach, encompassing regulatory excellence, industry development, international collaboration, and cultural influence, provides a solid foundation for sustained growth.

Malaysia’s strategy to become a global leader in the halal market is multifaceted and robust. By leveraging its strong regulatory framework, fostering industry innovation, engaging in international collaborations, and capitalising on its Islamic heritage, Malaysia has laid the groundwork for success.

While challenges remain, the country’s proactive and comprehensive approach positions it as a formidable player in the global halal economy. As the demand for halal products continues to grow, Malaysia’s leadership in this sector is poised to expand, bringing significant economic benefits and enhancing its global standing.

 

Investments

  • Total investment of the industry increased from RM8.9 billion in 2015 to RM16.1 billion in 2020, driven by Foreign Direct Investments (FDI). In 2021, total investment rose slightly by 1.3% to RM16.3 billion, fuelled by Domestic Direct Investments (DDI). This growth trend continued into 2022, with total investment reaching RM16.6 billion, marking a 1.7% increase from the previous year
  • Overall, the industry’s growth can be attributed to notable increase in investments in the Halal F&B segment, the rise of the Islamic digital economy, the impact of MIHAS and other events and the escalating demand for Shariah-compliant investment and finance products

Exports

  • In 2020, the Halal industry exported RM30.5 billion worth of products, increased by 19.0% to RM36.3 billion in 2021 and in the following year, total exports surged significantly by 63.9% to RM59.5 billion
  • F&B exports were the primary contributor, accounting for 46.8% of total Halal exports while other major contributors to total Halal exports included the Halal ingredients and cosmetics and personal care sectors
  • The growth in industry exports can be attributed to increased exports of Halal F&B, cosmetics, personal care, and pharmaceuticals.

Employment

  • In 2020, employment in the Halal industry amounted to 18,841 individuals and experienced a 2.1% growth in employment in 2021, reaching 19,238 persons.
  • By 2022, industry employment continued to rise, reaching 19,580 individuals, marking a 1.8% increase.
  • The increase in employment can be attributed to the growing number of companies obtaining Halal certification, which in turn created job opportunities within the manufacturing and services sectors, as well as supporting roles like finance and human resources.

Source: New Industrial Master Plan (NIMP) 2030 – Halal Industry

 

An Opinion by 

Zaidel Baharuddin is a founder and partner at Cent GPS – Centre for Governance and Political Studies, a think tank and research outfit based in Kuala Lumpur. He specialises in IFN market research, policy research and advocacy.

Malaysia’s Journey Towards Self-sufficiency

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By Jonathan Di Rollo  

Independence has been cherished by Malaysians for decades but in a rapidly changing world creating sustainability through economic self-sufficiency has become an increasingly important priority. With sustainable independence as a new priority, the questions of how to achieve this and in what time frame are important and need-considered answers.  

Malaysia’s government has ongoing development plans to address these issues and answer these questions but every nation depends on, and serves, all of its people.  

Public and private sector decision-makers are faced with leading and managing local talents and global partnerships in different sectors requiring different governance for achieving optimal outcomes. Leaders in each field have diverse experience to offer that can be used to keep independence going in sustainable directions through self-sufficiency that protects the country from global fluctuations and shocks. 

Malaysia’s Self-sufficiency Milestones 

  1. Early Development (1957-1970)
  • 1957: Independence from British colonial rule. 
  • 1963: Formation of Malaysia, including Malaya, Sabah, Sarawak, and Singapore (until 1965 when Singapore separated). 
  • 1965: Establishment of Bank Negara Malaysia to manage the country’s monetary policy. 
  1. New Economic Policy (1971-1990)
  • 1971: Introduction of the New Economic Policy (NEP) aimed at reducing poverty and restructuring society to eliminate the identification of race with economic function. 
  • 1974: Establishment of Petronas, the national oil and gas company, marking a significant step towards energy self-sufficiency. 
  • 1981: Launch of the Proton car project, Malaysia’s first national car manufacturer, to reduce dependency on imported vehicles. 
  1. Industrialisation and Modernisation (1991-2000)
  • 1991: Introduction of Vision 2020 by Prime Minister Mahathir Mohamad, aiming for Malaysia to become a fully developed nation by 2020. 
  • 1994: Completion of the North-South Expressway, enhancing transportation infrastructure and boosting economic growth. 
  • 1996: Launch of the Multimedia Super Corridor (MSC) to transform Malaysia into a knowledge-based economy. 
  1. Economic Diversification and Innovation (2001-2010)
  • 2001: Implementation of the Third Industrial Master Plan, focusing on strengthening the manufacturing sector and developing new growth areas. 
  • 2005: Malaysia becomes a net exporter of oil and gas, achieving significant energy self-sufficiency. 
  • 2007: Introduction of the Ninth Malaysia Plan, emphasising human capital development and innovation. 
  1. High-Income Economy and Sustainability (2011-2020)
  • 2010: Launch of the Economic Transformation Programme (ETP) with the goal of making Malaysia a high-income economy by 2020. 
  • 2012: Introduction of the National Automotive Policy to further develop the automotive industry and encourage the production of energy-efficient vehicles. 
  • 2015: Implementation of the Goods and Services Tax (GST) to diversify government revenue sources. 
  • 2020: Achievement of several Vision 2020 goals, although not fully reaching high-income status, significant progress in economic development and self-sufficiency. 
  1. Post-2020 Initiatives and Ongoing Efforts
  • 2021: Introduction of the 12th Malaysia Plan, focusing on sustainable growth and enhancing the resilience of the economy post-COVID-19. 
  • 2022: Continued efforts in renewable energy adoption, aiming for 31% renewable energy capacity by 2025. 
  • 2023: Strengthening food security measures to reduce dependency on imported food products. 

 Malaysia’s Brand Ambassadors 

Ambassadors perform as diplomats for their country all over the world but a country is a brand too and brand ambassadors represent the soul of the nation and embody all points of contact with the rest of the world.  

Independent countries are still dependent on their people; their politicians, business people, artists, lawyers, scientists and inventors. High profile brand ambassadors for Malaysia include Datuk Lee Chong Wei, the celebrated Olympic medallist turned corporate and educational brand ambassador who embodies how a country will always depend on its people as leaders to carry on global partnerships that benefit themselves as well as the country. Leading in sport then business and education shows connectivity and influence in independence.  

There are many more worthy Malaysians who have and continue to contribute to brand Malaysia in different ways in different sectors. The influence of these leaders to self-sufficiency is achieved through economic policies, development programs and well-managed resources. These key people are also role models for others showing us that we are always in dependence.  

Food Security 

In a country whose economy depends greatly on for agriculture, self-sufficiency in food is a top priority. In 2023 Malaysia’s self-sufficiency rate (SSR) for rice was at 62.6%, vegetables 44.7%, and fruits 78.1%, according to Datuk Chan Foong Hin, Deputy Agriculture and Food Security Minister. These headline figures for food security are just one part of the story in Malaysia’s self-sufficiency journey.  

Ramly Processing Sdn. Bhd.  the renowned Malaysian frozen and fast-food company, founded by Ramly bin Mokni, tells an equally important story. From humble beginnings starting in 1984 with the aim of developing a clean and good-quality halal Western fast-food chain in Malaysia, Ramly began selling burgers with his wife. He discovered that it was unknown whether most fresh-meat sources were halal or not and decided to produce a halal-certified meat source for all Muslim consumers in Malaysia. With the halal economy expanding they increased production whilst maintaining stringent quality control. The Ramly Burger brand began to gain recognition not only for its halal certification but also for its taste and affordability becoming a national success story before starting to export to neighbouring countries of Singapore, Brunei, and Indonesia.  

Halal certification contributes towards self-sufficiency by implementing legal frameworks and enforcement to promote the halal industry as a source of economic growth. Integration between halal finance and halal foods can create a new source of growth. Implementing halal standards and obtaining halal certification is crucial for industry players to export their products to Muslim markets and attract Muslim-friendly tourism.  

Tech: Towards a Knowledge-Based Economy (K-Economy)  

Malaysia has been embracing digital transformation for decades and continues to transition towards becoming a k-economy. With the government continuing to recognise that self-sufficient economic growth requires innovation, technology, and human capital development, initiatives taken include the Multimedia Super Corridor (MSC) started in 1979, followed by the Malaysia Digital Economy Blueprint. These technological advancements are pivotal for Malaysia to achieve greater self-sufficiency by reducing its dependency on external resources and foster innovation-driven growth. Former MDEC CEO Surina Shukri left a legacy through the development and execution of the Malaysia Digital initiative, which aims to create substantial digital economic spillovers through equitable access to digital tools, knowledge, and income opportunities.  

“Predicated on a new framework built upon three primary components – Agility, Flexibility, and Relevance – the blueprint is set to enhance Malaysia’s value proposition to attract digital investments, firmly establishing Malaysia as the digital hub of ASEAN,” Shukri said during her tenure.  

This strategy was validated by attracting major global tech investors, including Alibaba, which established its first regional e-commerce and logistics hub in Kuala Lumpur and more recently award-winning e-wallet provider Boost. These technological advances have also assisted SMEs in reducing transaction costs and expanding marketing enabling more self-sufficient business.  

Most recently digital services have expanded to include telemedicine and E-Government and policies and strategies for adopting and using technology have also been applied to agriculture, fisheries and renewable energy in Malaysia reflecting the broad reach and impact of technology and its influence on self-sufficiency. 

Internationalising Malaysia 

One of the most high-profile Brand Ambassadors in Malaysia, Tan Sri Tony Fernandez, Capital A Sdn Bhd’ CEO, is an aspirational leader for Malaysians and foreigners alike. Air Asia has not only allowed more people to fly to more destinations than ever before but has also contributed to internationalising the nation.  

Internationalising countries that lead the world can be seen by the boom in the Japanese economy, followed by China, turning them into world leading countries. However, these gains come with costs, and this is now a hot topic for sustainability. The environmental impact of air travel is closely watched by all airlines with transportation companies being major global contributors to carbon emissions. Addressing sustainability, Fernandez recently called on governments and aviation regulators in the region to improve air traffic management at airports so that airlines can burn less fuel instead of mandating them to use green fuel or sustainable aviation fuel (SAF) that are currently low in production. 

“SAF is not going to change the world any time soon but there are things that we all can do now…SAF is just too expensive at the moment. There has to be a bigger supply…One per cent (of SAF) is not going to change a lot of things and passengers would have to fund this. Every passenger coming in has to pay a surcharge for SAF.”I would urge (the) governments inclusive of the Singapore government to sort out air traffic control. That’ll be a great place to start in terms of conserving fuel,” he said in a recent interview with local newspaper, New Straits Times.  

The spill-overs from internationalising Malaysia may be difficult to quantify but there are strong arguments towards contributing to self-sufficiency. 

Energy and the Environment 

Any economic activity comes with costs as well as benefits and, with Oil & Gas contributing up to 30% of Malaysia’s GDP, strategies for sustainability in the energy sector have become a top priority. Given the importance of the oil price and its instability, the strategies of key energy sector players are influenced by national as well as international governance. Compliance with global sustainability goals has influenced decision-making and the dependence of the energy producing sector on self-sufficiency.  

Strategies that diversify economic dependence may be equally important on the nation’s journey to self-sufficiency but these now include legal compliance and investor satisfaction which mean that economic independence is not the former only goal and sustainability is now an essential aspect of creating self-sufficiency. 

Malaysia’s former Minister of Energy, Science, Technology and Climate Change (MESTECC) who did much during her tenure for adopting sustainable elements to Malaysia famously said, “Malaysia will not be the dumping ground of the world” in the Netflix documentary “Broken” that highlighted Malaysia’s plastic dumping problem. Another initiative by the ex-minister included setting-up a pollution monitoring system in Pasir Gudang Johor in 2019, following the incident where 4,000 people there experienced breathing difficulties. It was discovered that the main cause was due to gases released by chemical industries in the area. Lynas, a rare-earth processing company was also regulated after concerns were raised on radioactive waste.  

These actions highlight that different levels of action on regulation are required even within the same economic sector and that self-sufficiency and independence are deeply intertwined. 

Future self-sufficiency 

Despite many milestones and significant progress made to date, Malaysia still faces challenges on its path to self-sufficiency. Economic inequality, regional disparities, and the need for continuous innovation are some of the issues that require ongoing attention.  

External shocks such as the COVID-19 pandemic have highlighted vulnerabilities in global supply chains, underscoring the importance of building a resilient and self-sufficient economy. Investing in education, technology, and sustainable practices to remain relevant are key as well as managing the impact of these developments on enhancing social safety nets and addressing regional inequalities.  

The Malaysian government’s commitment to the Shared Prosperity Vision 2030 (SPV 2030) is part of a vision that emphasises inclusivity and sustainability and by focusing on high-value industries, innovation, and human capital development, SPV 2030 can contribute to achieving self-sufficiency for Malaysia.  

On the journey Malaysia will still rely on its people to make all these actions effective. National strategies, coupled with the contributions of individuals across various sectors, have laid the foundation for a self-sufficient, knowledge-based country that is globally connected.  

As Malaysia and its people celebrate Merdeka month, reflecting on past achievements can yield lessons for future guidance that help clarify the path to self-sufficiency. The stories of entrepreneurs, educators, and environmentalists illustrate the human power of Malaysia’s economic vitality. Each individual’s contributions must be considered a source of inspiration, embodying the values of independence, innovation, and resilience that define Malaysia’s journey towards a prosperous and self-sufficient future. – (TSI) 

Overcoming Economic Fragmentation for Progress

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By Dr Carmelo Ferlito 

“In essence, technological development can occur when Keynesian animal spirits, or positive profit expectations, are awakened and find the right environment for meaningful competition. Within these competitive processes, concentration dynamics emerge, enabling further technical progress through the exploitation of economies of scale.” 

One of the main weaknesses, although not extensively discussed in policy debates, is the fragmented nature of Malaysian capitalism, encapsulated by the dichotomy between Micro, Small and Medium Enterprises (MSMEs) and large corporations. 

In 2021, Malaysia had a total of 1,259,234 registered firms, with 1,226,494 being MSMEs (97.4%). This implies that, in terms of numbers, MSMEs nearly encompass the entire landscape of operating firms in Malaysia. Notably, 964,495 firms (76.59% of the total and 78.64% of MSMEs) were microenterprises, 242,540 (19.26%) were small firms, and only 19,459 (1.55%) were medium-sized enterprises. 

MSMEs Snapshot 

MSMEs play a crucial role, with the majority operating in services and employing nearly half of the workforce across various industries. 

Sector Distribution 

Service Sector: 83.85% 

Construction: 8.01% 

Manufacturing: 5.84% 

Agriculture: 1.93% 

Mining: 0.37% 

 

Workforce Impact (2021) 

Overall MSME Employment: 47.2% 

Agriculture: 42.2% 

Construction: 48.2% 

Services: 49.5% 

Manufacturing: 46.2% 

Mining & Quarrying: 27.9% 

The partial picture that emerges so far is that a country’s economy is dominated, in terms of the number of firms, by microbusinesses. MSMEs, in their entirety, represent more than 97% of the registered firms and employ almost half of the workforce. However, the question remains: How much do these MSMEs contribute to the national economy? 

When we look at MSMEs’ contribution to the Gross Domestic Product (GDP), the figures tell a distinct story. In 2021, MSMEs accounted for 37.36% of Malaysia’s GDP, slightly down from 38.13% in 2020 and 38.86% in 2019. Notably, their impact was more significant in agriculture (55.25%) and construction (48.27%), while their contribution was less than 40% in services and manufacturing and just 2.79% in mining. 

The data is straightforward: 97.4% of Malaysian firms contributed 37.36% to the GDP, while the remaining 2.6% (large enterprises) generated 62.64%. 

The dispersed nature of Malaysian capitalism—which I would define as an archipelago—is confirmed by one of the most used indexes to measure industrial concentration, the Herfindahl–Hirschman Index (HHI). According to the guidelines of the United States Department of Justice, an industry is highly concentrated when HHI is above 2,500 (and up to the maximum level of 10,000), moderately concentrated with an HHI between 1,500 and 2,500, and an index below 1,500 characterises a low level of concentration. 

According to the data collected by the World Integrated Trade Solution (WITS), provided by the World Bank, the Herfindahl-Hirschman (HH) market concentration index for Malaysia was 800 between 2015 and 2018. However, it increased to 900 in 2019 and further rose to 1,000 in 2020. Therefore, despite experiencing an upward trend in recent years, the level of market concentration in Malaysia remains low. This aligns with the depiction of a dispersed archipelago of firms emerging from the data provided by the Department of Statistics Malaysia (DOSM) mentioned above. 

Following the traditional textbook definition of competition, an economist should be pleased to observe the low level of concentration within Malaysian capitalism and the prevalence of a model of semi-perfect competition. However, my stance is critical in this regard. 

In fact, I believe that such a capitalistic structure poses an obstacle to addressing some of the most debated topics in policy conversations. The first concern is related to low wages and social mobility: as per the ongoing debate, Malaysia faces challenges with low and stagnant wages, and this condition acts as an incentive for the phenomenon of brain drain. 

The situation is accompanied by a rise in skill-related underemployment. The upward trend in skill-related underemployment predates the Great Lockdown, and, although moderating, it remained high at 36.7% in Q2-2022, significantly exceeding the 31.4% recorded in 2017. 

However, a fragmented structure of capitalism is not solely a barrier to wage increases and social mobility. Two additional challenges that necessitate the promotion of industrial concentration are social protection and technical progress. These issues also hold considerable significance in policy discussions. 

The Malaysian social protection system is often deemed inadequate and a hindrance in the battle against poverty. While global experience teaches us that large-scale government-run welfare systems are inefficient and economically unsustainable, the only path for employees to access better social protection conditions is to work for large enterprises. These companies, generally more resilient to economic crises, are better positioned to provide comprehensive protection, including medical coverage. 

In the current stage of capitalism’s evolution, as described by Joseph A. Schumpeter (Business Cycles, 1939; Capitalism, Socialism and Democracy, 1942) and later by his disciple Paolo Sylos Labini (Oligopoly and Technical Progress, 1957), technological leaps are conceivable only within the process of industrial concentration. These advancements occur not as a result of government planning but rather emerge from economies of scale precisely fostered by the competitive process. 

Furthermore, and precisely for this reason, technological leaps cannot be enforced through centralised policy decisions. New production techniques, ceteris paribus, will only be adopted if they are anticipated to yield a greater “return from a given investment of factors” (F.A. Hayek, The Pure Theory of Capital, 1941). 

From a policy perspective, the initial step should involve removing policy-induced obstacles to the process of industrial concentration. A case in point is the rice industry, which is artificially kept fragmented and underdeveloped due to unfavourable policies. 

Strategies to Boost Entrepreneurial Growth  

Trade Liberalisation 

Why? Access to a broader market leads to higher demand. 

How? It motivates enterprises to grow and fosters international competition through economies of scale. 

Entrepreneurial Networks 

What? Cooperative partnerships among companies via a “Contract of Network.” 

Why? Enhances collaboration, facilitates sharing of information and provides mutual support. 

Benefit: Special fiscal treatment to encourage and reward entrepreneurial collaboration. 

Implementing these strategies can empower entrepreneurs, facilitate market access and create a supportive environment for business growth. 

In essence, technological development can occur when Keynesian animal spirits, or positive profit expectations, are awakened and find the right environment for meaningful competition. Within these competitive processes, concentration dynamics emerge, enabling further technical progress through the exploitation of economies of scale. 

 

ABOUT THE WRITER

Dr Carmelo Ferlito (born in Verona, Italy, in 1978) serves as the CEO of the Center for Market Education (CME) and is a senior fellow at the Institute for Democracy and Economic Affairs (IDEAS) in Kuala Lumpur, Malaysia. Additionally, Dr Ferlito works as a research advisor for Provalindo Nusa Property in Jakarta, Indonesia. He holds the position of visiting professor at Taylor’s University in Subang Jaya, Malaysia, and is a Senior Fellow (Southeast Asia) at the Property Rights Alliance in Washington, DC, USA. 

Malaysia’s Bold Bet

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By Jeannie Cotter 

Malaysia is going all in on advanced manufacturing, green tech and automation. The country’s new industrial master plan outlines an ambitious vision to transform key sectors of its economy over the next seven years. Dubbed the New Industrial Master Plan 2030 (NIMP), the strategy bets big on high-potential industries from healthcare to electric vehicles. The aim is to leapfrog Malaysia into the big leagues as a hub for precision engineering, smart manufacturing and sustainable technologies. 

For international companies and investors, NIMP maps out priority growth areas where government support and partnerships will be directed. By syncing business plans with the master plan’s strategic goals, firms can capitalise on policies and funding that favour innovation, digitisation and supply chain resilience.  

In essence, the NIMP provides very useful guidance on where Malaysia is headed and which sectors have the most potential over the next few years. Business plans that sync up with the NIMP’s missions will have a definite advantage when it comes to regulatory issues, talent recruitment and access to financing. 

Healthcare and Medical Technology 

A top priority under the plan is to develop higher value-added industries like pharmaceuticals and medical devices. Malaysia stands as the ASEAN region’s largest medical device market, with a substantial total market size of US$1.8 billion, according to the Malaysian Investment Development Authority (MIDA). 

The country has established itself as a major exporter of medical devices, sending over 90% of its domestic production to international markets. Top destinations for Malaysian medical device exports are the United States, Germany, Singapore, Japan, Belgium, China, the Netherlands, Brazil, the United Kingdom and Australia. 

Emerging as a significant focal point for medical device production, both regionally and globally, Malaysia boasts a flourishing industry with over 200 manufacturing companies. Within this well-connected ecosystem, 30 of these are multinational corporations that have chosen Malaysia as their manufacturing hub. Renowned names in this category include Abbott, Toshiba Medical Systems and B-Braun. The sector provides employment for over 70,000 skilled workers, serving as the backbone of the industry’s human capital. 

Malaysia’s strategic location, strong manufacturing capabilities and pro-business environment have allowed it to become a key hub for medical device production and export within Asia. Building on existing strong capabilities in electronics and semiconductor fabrication, the aim is to move into more complex manufacturing like biomedical sensors and diagnostics. 

Policies will incentivise joint ventures and technology transfers with leading multinationals to upgrade production and R&D capabilities. At the same time, training programmes through public-private partnerships will focus on developing the technical workforce required for advanced medical technology manufacturing. Foreign firms bringing experience in precision engineering and complex supply chain integration can benefit tremendously here. 

Electric Vehicles and Renewable Energy 

Another major emphasis is on green technologies, from electric vehicles to large-scale solar and wind power projects. NIMP aims to nurture homegrown electric vehicle (EV) manufacturers serving both domestic and export markets. It also outlines plans to phase out internal combustion engine vehicles entirely by 2040. 

The electric vehicle (EV) market in Malaysia is gaining traction, fuelled by increasing interest from environmentally-conscious and younger consumers. While overall EV sales remain low, making up just 0.4% of total vehicle sales in 2021, the market is expanding rapidly. EV sales jumped 65% in 2021, with 2,717 units sold compared to 1,642 in 2020, according to data from the Malaysian Automotive Association (MAA).  

The growing reliance on EVs to cut emissions in transport is intensifying the need for a strategic approach to the energy transition. Despite Malaysia’s predominant reliance on coal and natural gas in its energy mix, Tenaga Nasional Bhd reports a 23% lower emission rate from EVs versus ICE vehicles. 

The current electricity generation mix in Malaysia leans heavily on coal and gas, with renewable energy sources making up only 17.8%. The nation aims for 31% renewable energy in the national installed capacity mix by 2025, escalating to 70% by 2050, as outlined in the National Energy Transition Roadmap. 

Malaysia’s wealth of lithium, rare earth metals and other critical battery minerals will provide key inputs for EV production. Meanwhile, the EV shift will drive demand for upgraded electric grid infrastructure and renewable energy generation. These developments underscore the huge potential for renewable energy to play a pivotal role in Malaysia’s energy landscape. 

Under the NIMP’s Net Zero mission, foreign power producers are encouraged to participate in efforts to decarbonise Malaysia’s economy. Opportunities exist across the clean energy spectrum, from utility-scale solar and wind farms to smaller rooftop solar installations. 

Looking ahead, the Malaysian government has set a goal of having 125,000 EVs on the road by 2030. If this target is realised, Malaysia’s fledgling EV market is poised for massive growth over the next several years. Younger and eco-minded drivers are expected to continue leading the shift towards EVs in Malaysia. 

Automation and Artificial Intelligence 

As part of its goal to “tech up” Malaysian industry, NIMP aims to accelerate digital transformation in manufacturing. The plan sets targets for increased adoption of automation, robotics and artificial intelligence to sharply improve productivity and efficiency. 

Based on Statista’s data, the artificial intelligence market in Malaysia is projected to reach a market size of US$3,859.00 million by the year 2030. The 2022 Oxford Insights Government AI Readiness Index ranks Malaysia 29th out of 181 countries. This ranking is attributed to Malaysia’s robust digital capacity and infrastructure, providing a solid foundation for the development and integration of artificial intelligence. 

Tax incentives will promote large-scale integration of industrial Internet-of-things systems. Grants are also available to help SME manufacturers implement automation. And factory automation levels will eventually factor into manufacturing licensing requirements. 

Malaysia wants to leapfrog ahead as a smart manufacturing location. Multinationals adept at applying technologies like predictive maintenance, computer vision and collaborative robots will find open doors here. 

The Road Ahead 

The NIMP represents a bold vision and a significant commitment by the Malaysian government to transform key industries. Achieving the goals will require major investments in infrastructure, workforce development and partnerships between government, businesses and academia. 

Success is not guaranteed. The targets are ambitious and will require effective execution and adaptation along the way. Regional competition will be fierce as other Southeast Asian nations have similar ambitions to move up the manufacturing value chain. Malaysia’s centralised planning approach could give it an edge in marshalling resources. However, neighbours like Thailand and Indonesia are also making big bets on EVs, automation and other advanced manufacturing. 

If Malaysia can successfully upgrade industries as envisioned, it will solidify its position as a leading manufacturing hub in Asia. This could make the country an attractive launch pad for foreign firms looking to serve regional and global markets. 

For investors and companies, the time is now to evaluate how the NIMP’s goals align with their own long-term business strategies. Early movers may benefit the most from government incentives and policies aimed at nurturing priority sectors. 

How Malaysia navigates the tricky transition toward high-tech, green industries bears watching across the region. Its transformation roadmap under the NIMP could provide valuable lessons for other developing nations. 

E&O GROUP UNVEILS THE LUME

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On 8 August 2024, E&O Group announced the launch of The Lume, its latest luxury development on Andaman Island, Penang. This new project, situated in the prestigious Shoreline district, sets a new benchmark for eco-conscious living, offering 261 exclusive residences designed to harmonise sophisticated architecture with the natural beauty of the island.

“The Lume embodies the art of sophisticated living, with each exclusive residence crafted to ensure privacy whilst fostering a sense of community. This makes The Lume an ideal choice for those seeking a balanced work-life-play environment,” said Kok Tuck Cheong, Managing Director at E&O.

A unique feature of The Lume’s is its pavilion-in-the-sky design where living and dining spaces that seamlessly extend outward, offering residents breathtaking 180-degree views of the island and filling the interiors with natural light and optimal airflow.

Private spaces are thoughtfully positioned, with bedrooms within the main structure arrayed in a linear configuration, with strategically placed fins to maximise outward views while ensuring privacy.

The Lume caters to a diverse market of empty nesters, young families, and professionals seeking a second home. Each floor features just six apartments, with prices starting at RM 2.2 million and sizes ranging from 1,722 sq ft to 2,874 sq ft.

Kok added that The Lume is committed to integrating nature into everyday living, featuring lush tropical gardens and terraced landscaping framed against sweeping sea views.

The Lume offers amenities such as landscaped pools, lounges, and BBQ spaces, fostering opportunities for social interaction. With dedicated areas for children, including playgrounds and a wading pool, the development caters to families while also accommodating pet-friendly spaces for furry companions.

The Lume also has dedicated co-working spaces, meeting rooms, and function areas that facilitate the integration of professional and personal life. By aligning with the growing work-from-home trend, residents can now enjoy access to modern conveniences without sacrificing their well-being.

“The landscape architecture of The Lume is meticulously conceived to offer a profound experience of tranquil serenity,” explained Kok.

Andaman Island, awarded GreenRE Platinum certification, is a pioneering development in Malaysia, designed on four pillars—connectivity, sustainability, community, and quality of life. The first phase of this project comprises 253-acres, and is divided into three distinct segments: Shoreline, Gurney Green, and Canalside. Each district will offer a distinct place experience, guided by a masterplan that embraces the urbanism concept of a 15-minute city, supporting pedestrian-friendly neighbourhoods with easy access to essential amenities and green spaces.

The Shoreline district encapsulates eco-conscious and sustainable living with The Lume conferred GreenRE Platinum certification to reflect how the development integrates environmentally responsible practices to minimise its carbon footprint while providing ample communal spaces for socialising and wellness activities.

Benefiting from the island’s strategic location near rising economic zones, residents of Andaman Island will also enjoy direct access to two bridges linked to Penang Island.

“This development establishes a new benchmark for future living spaces on Andaman Island, where innovation, well-being, and harmonious living are intertwined, reflecting our enduring commitment to meet and exceed the evolving aspirations of our residents”, he said.

Kok added that with the launch of The Lume, the E&O Group continues its legacy of crafting elegant homes that anticipate the future needs and lifestyle aspirations of the growing Andaman Island community. The Lume’s launch follows the highly successful launches of E&O’s The Meg and Arica on Andaman Island.

For those seeking to make The Lume their next home, bookings are now open. Learn more by reaching out to E&O at 0134088999 or by visiting their website at https://easternandoriental.com/thelume