- CIMB revised the growth outlook of Malaysia
- Kota Madani, aka PM Anwar’s legacy project to cost about RM4 bil
IN Malaysia
CIMB revised Malaysia’s GDP growth to 4.3%
CIMB Treasury and Market Research has revised its 2025 gross domestic product (GDP) growth forecast for Malaysia upwards to 4.3% from 4.0% previously. The u-turn by CIMB was due to the easing trade tensions and a constructive US-Malaysia dialogue. But, it is still short of Putrajaya’s GDP growth target of between 4.5% and 5.5%. Despite CIMB’s positive outlook on the nation’s economy, foreign banks, particularly the Australian and New Zealand Banking Group (ANZ), remain sceptical. ANZ stated that Malaysia’s trade surplus will be subdued in the coming months, thanks to weakening exports amidst the dying down of the rush of beating the US tariffs. Additionally, the import of capital goods is increasing, mainly for construction-related capital imports to support major projects such as the Rapid Transit System Link, the Penang Light Rail Transit and the mushrooming data centres. Malaysia’s trade surplus has already dropped to its second-lowest level since 1997, to RM766.3 mil in May. In this era of the Trump presidency, it will be difficult to predict the growth of the economy, especially for an export-oriented nation like Malaysia. Dia macam, when we think we can enjoy the bliss of a bullish economy, then we see a mushroom cloud on the horizon (no thanks to the Israel-Iran war) that throws everything out of balance. Perhaps, in this sense, it is a smart move by Rafizi to call it a day as the Economy Minister. Siapa nak pening-pening to plan the Malaysian economy kan?
https://theedgemalaysia.com/node/760119
Just FYI, capital goods imports refer to the international purchase of machinery, equipment, and other durable goods that are used in the production of other goods and services.
Masterplans bonanza
- Kuala Lumpur Local Plan 2040 – PM Anwar Ibrahim has recently launched the 15-year development plan for Kuala Lumpur, which includes a few goodies that will change the landscape of the city. Among the goodies is a new plot ratio incentive that will be introduced for developers that redevelop old areas, construct transit-oriented development and incorporate affordable housing in their projects. Under this new plot ratio initiative, the plot ratio for city centre commercial areas will be capped at 1:10, while main commercial, commerce, and mixed-use zones will be limited to a maximum of 1:8. A total of 139 areas has been pegged for redevelopment and a target of 305,000 affordable housing units have been set by 2040.
- Malaysian startups ‘grand plan’ – Khazanah Nasional Bhd, via its subsidiary Jelawang Capital, has formed partnerships with five venture capital (VC) firms to further improve the local startup ecosystem. Khazanah MD Amirul Feisal Wan Zahir said the five – three Malaysian (Vynn Capital, Kairous Capital & First Move) and two regional fund managers (Granite Asia & AppWorks) are expected to deploy over RM200 mil. A significant portion of the RM200 mil might be directed into Malaysia-Nexus companies, supporting around 50 early-stage firms.
Development here, development there, development everywhere
- New industrial park in Negeri Sembilan – SD Guthrie Bhd has purchased an additional 300 acres of land to fulfil its aspiration to develop a 600-acre industrial park in its Sengkang Estate in the district of Port Dickson. The industrial park will be a joint venture (JV) with the Negeri Sembilan state government, and the work for the park is set to commence in 2Q2026. The industrial park will also be set to facilitate the development of the Port Dickson Free Zone (PDFZ), as it will be situated within PDFZ. Besides Negeri Sembilan, SD Guthrie said it is also in active discussions with other state agencies and potential business partners to grow the company’s new business pillars (industrial and renewable energy) in strategically located land parcels across Malaysia. Kedah state government, tunggu apa lagi? As a comparison, Kulim Hi-Tech Park has an acreage of 5,557 acres, with plans to expand it to a whopping 12,000 acres.
- Kota Madani in Putrajaya – Putrajaya Corporation (PPj) president Fadlun Mak Ujud said that the development of Kota Madani in Precint 19, Putrajaya, which is set to commence in 3Q2025, will have a price tag of RM4 bil. However, it will not hurt the government coffers that much in the short term, as it will be implemented via a Private Finance Initiative (PFI) model, or to be precise, the build, lease, maintain and transfer (BLMT) concept. Putrajaya Holdings Sdn Bhd (PjH), a subsidiary of Petronas, will become the implementation partner. Occupying about 100 acres, Kota Madani is set to feature 10,000 residential units for more than 30,000 residents.
The North’s state of investment is positive
Penang Chief Minister Chow Kon Yeow has announced that the state has contributed the second-highest approved manufacturing investments in the country (22% of the total pie), recording RM6.7 bil of investments in 1Q2025. However, there is a big caveat as the decision for said investment was made last year, before the shitstorm of US tariffs was introduced by US President Donald Trump. So, for the rest of 2025, uncertainty is a certainty. In a related matter, InvestPenang is set to sit down with Intel to get more clarity on the position of Intel’s new plant in Penang, as the facility is nearing completion. This is because Intel recently announced a global workforce downsizing by 20%, so it has put the new facility in an awkward position, hidup segan mati tak mahu. Year to date, Intel has invested RM50 bil in Malaysia.
Moving on towards Penang’s neighbour, Kedah, has recorded RM4.2 bil in investments in 1Q2025, where the manufacturing sector alone accounted for about RM3.9 bil of the total investments (Kedah ranked third nationally for the highest manufacturing investment). The robust investment figures are thanks to the development of Phase 4A and Phase 5 of the Kulim Hi-Tech Park, the Kulim Industrial Corridor, and new industrial areas such as the Kedah Rubber City and the Kedah Science Technology Park. Kedah Menteri Besar Muhammad Sanusi Md Nor also stated that more infrastructure has been built at the Delapan Special Border Economic Zone in Bukit Kayu Hitam, which aims to boost the Malaysia-Thailand bilateral trade from RM117 bil in 2023 to RM141 bil by 2027.
https://theedgemalaysia.com/node/759925
For your EYES only
So, the US has been funding the Taliban all this time?
