PETALING JAYA: The Investment, Trade and Industry Ministry (Miti) targets a 5% increase in total trade from the RM2.87 trillion achieved last year.
Minister Tengku Datuk Seri Zafrul Abdul Aziz said, however, it would most likely be impacted by tariffs imposed by the United States.
“Objectively speaking, I have to admit that when we forecast, we need to be more agile, allowing the forecast to be adjusted,” he said during Miti’s report card 2024 and outlook 2025 yesterday.
The targeted expansion is in line with Malaysia’s gross domestic product (GDP) growth of between 4.5% and 5.5%.
According to Tengku Zafrul, it was similar to how the World Bank and International Monetary Fund operate when GDPs are revised due to geoeconomics and geopolitical reasons.
He added despite the target being lower than the year-on-year growth of 9% in 2024, the 5% target was favourable.
He also said meetings have resumed with the European Union with regard to free trade agreement (FTA).
“We have addressed the concerns and the fact that we have complied with the standards. But having said that, there are other areas that we need to look at before we can conclude the FTA,” Tengku Zafrul said.
Miti will aim to complete the Malaysia-EU FTA by 2026, ensuring a “win-win” situation and the green and digital aspects are not left out.
Meanwhile, according to Miti’s report, Malaysia recorded RM209.5bil in approved digital investments by the Malaysian Investment Development Authority and the Malaysia Digital Economy Corp between 2021 and the third quarter of last year.
According to the report, data centres made up 69% of approved digital investments, amounting to RM145.4bil, offering 74,704 jobs opportunities.
Additionally, the report said the Asean region would continue to be an enabler for the semiconductor supply chain and its security.
The key actions identified included collaborating instead of competing with each other in the region, maintaining neutrality and focusing on security as well as resilience.
On the push for net-zero emissions, the third quarter of 2024 had recorded progress.
Among the efforts were the electric vehicle (EV) rollout by Perusahaan Otomobil Kedua Sdn Bhd which progressed significantly, the launch of the Circular Economy Policy Framework for the manufacturing sector and the focus on growing carbon capture, utilisation, storage as a new sector in the country.
It noted that the EV industry was moving in the right direction.
There are currently 3,611 EV charging stations, with a targeted 10,000 stations by the end of this year.
The report also stated that Miti has identified seven critical industries and has developed key mitigation strategies by integrating diversification, digitisation and international cooperation.
