When was the last time you were a finance minister?
Now you are a trade minister. What are you hoping to do differently?
Yes. Thank you.
Yeah. A new portfolio for me.
Government has been formed by one and a half ago and today we are here in Davos
again. So the focus is the trade minister
obviously is to ensure that trade continues to be one of the key drivers
of growth for Malaysia and investment as well.
So these are the two areas that we are focusing and of course, industrious part
of the portfolio focusing on industries that gifts that high quality investments
that Malaysia wants to see Emma Chandra. There is great competition for FDI,
especially within the Asian regions. In particular, Vietnam.
I mean, what's your strategy to get that FDI you need?
Yes. Well, if you look at us and we have not
just Vietnam, we have Thailand, Indonesia, everyone going after, I
guess, the same kind of investment for Malaysia.
We know we were we have been in since the 1970s focusing on certain sectors,
especially that any subsector. So we conduct the sector and today it
has contributed meaningfully to GDP is about 6 percent of GDP and we are the
seventh largest supplier of semiconductor for the world.
So how are we going to compete going forward?
I think the focus will have to be on making it easier and ease of doing
business. I think that's one of the key
opportunities for Malaysia to improve itself.
I think so. My focus will be to ensure that when it
comes to investments, the ease of doing investments in Malaysia will be
improved. Realistically, how much FDI can you
attract this year? Yes.
Because in the first nine months of last year, you attracted about 45 billion US
dollars. And that's pale in comparison from from
before. Yes.
I think, of course, that in terms of growth was a positive growth.
But you're right. In absolute terms, compared to pre
pandemic, it's not as strong as before, but trade has improved.
And so how do we focus back on NPA? So I think we need to go back to basics.
We need to look at what are the areas. Realistically, how much are you looking
at attract sort of 2023? Okay.
So we link it to, of course, the economy.
I think, you know, 2023 global economy is expected to face some headwinds.
So Malaysia growth is expected to be around 4 to 5 percent.
But investment is about global global trade, global investment.
So for us, we have a target and a target obviously is about 20 percent increase
from last year. We've seen it also increase about 30
percent plus. Is that a percent compared to last year.
But again. Is the measure of FDI write to me?
Traditionally, measuring FDI is about the absolute dollar value that comes to
Malaysia. But how much of those is realized?
How much of those is translated to jobs? What is the spillover effects?
I think that's key. And that number has to be a number that
focuses on the increase is pretty conservative.
It's not to me, given the like I said, the economic landscape, the global
economic landscape. But we do have a China that's reopening.
And China is the biggest trading partner, accounting for about 20 percent
of religious Scarlet Fu investments. Can China provide that boost?
Why not more than that? Yeah.
Okay. If you take into account China costs,
there's still uncertainty there and there will be a lag effect.
So maybe you are right that there's a bit of her being a bit conservative.
But again, no one knows what the impact of China for 2020.
I think 2024 is clearer. But 2023, there will be challenges.
And of course, in the commodity sector, it's a sector that will consume of what
China wants. But for the manufacturing sector, it
will tick. There will be a lag for 2023
TPP, Malaysia Science City TPP last year.
Now there are some murmurings of some resistance that signing will Malaysia
relook, review and then signing up. That was discussed.
In fact, it was one of the first topic of discussion in the cabinet.
It was, as you know, correctly, state there just now.
It was ratified by the government in November, and in December the new
government was formed. And we had a discussion that we
explained what the concerns are, what their mitigating factors and the cabinet
has agreed. You know, the famous himself, of course,
has agreed that we will continue with what was the decision that was made
before. We will monitor this closely.
But we have also made a public announcement.
We are continuing with ACP TPP. The ringgit has been a laggard,
especially compared to regional appears. How comfortable are you with the level
of the currency and where do you see the ringgit headed?
Okay, well, now I'm wearing my trip as a industry portfolio.
I can try and comment on it as an independent.
We look at ringgit. I think again, you know, you have to
look at the growth of of the economy for Malaysia.
We are expecting a projecting a growth of between 4 to 5 percent.
And we are seeing that the ringgit has actually strengthened.
Where it was before. Right.
But I think what your point is relatively to other currencies.
So Malaysia growth will have an impact, will have a bearing on the strength of
the ringgit under seal. I think that will be the key determine.
So you're comfortable with where the currencies treaded?
Well, it is. While ringgit is floated freely, so it
does mark markets that dictate the value of ringgit and from the street
perspective, from an investment perspective.
As long as we are comparatively moving in the same direction with the basket of
countries that are trading with us, we should be okay.
What's the status of global trade? What's your perspective on it?
Given protocols for friend sharing on shoring regional reassuring
globalization? Well, it has been a major debate in
Davos WEF and even before that man in Malaysia and many other emerging markets
have been discussing what are our options?
Right. Because we always hear from the
perspective of the global largest economies in the short to medium term.
I must admit that we do enjoy somewhat the spillover effects of that consensus
about how someone quantify that. Okay.
How so? Because the concern about supply chain,
the supply chain resiliency is a critical supply chain.
And because of the so called geopolitics between two major countries in the US
and China and China and many. But you just see that reassuring on
shoring, franchising and Malaysia and ASEAN as a whole has somewhat benefited
in the medium short term. But in the longer term, we all agree
that it will not be good for globalization.
We are asking where the global asset is blazes in his den or not because Stephen
Engle is still happening but is slowing. Talking about globalization, right?
People asking whether people are focusing on whether globalization has
failed. But to me, we need to go back to
fundamentals. The reason why we as Malaysia and wool
is trading is because it's something that will benefit.
All right. So I think what's important going
forward is that the leadership of these major economies need to.
Understand that that tree is an important part and there is concern, of
course, about security. But between security and growth, you
need to balance that. How much supply chain disruptions eased
in your view? Yeah.
The supply chain. OK.
Pre pandemic levels, we have not gone back to where it was before, right after
pandemic. It has improved, but there's still major
concerns. The major concerns were labor labor
shortages, major concern about stock inputs, RTX factors, sometimes holding
all of that input, especially in certain sectors.
So we are still room for improvement. But again, it is driving prices up.
This is driving inflation up. So I think that what you mentioned
earlier about, you know, countries putting in extra policy measures that
may be protective in nature doesn't help that supply chain.
And there are expectations that oil could get to hundred and ten dollars per
barrel. You're an oil producing country.
What are your thoughts on where oil is headed?
Well, people are saying economies are seeing that.
One of the reasons is because of China, the reopening of China will mean that as
much as not the demand for commodities, energy will increase and therefore
prices are expected to go up. So for Malaysia, obviously, as a net
exporter of commodities as well as energy intensive oil as well, we stand
to benefit from that. However, as you know, it does mean that
we also need to be fiscally responsible about assisting those people who are in
need. Given the high energy prices, how much
will that contribute to growth? Well, I don't have that figure for 2023.
I think the budget will be announced by the new prime minister, the new fund,
and is on 24th of February. And that's when he finally will be
announcing the official new revised budget for Malaysia.
Why does that to look forward to in terms of the budget?
As finance minister, you are pushing for higher value creation in the industries
as trade minister. Now, what are you hoping to see us?
Well, first of all, you know, we did present the budget for 2023.
And then a week later, it was decided by member dissolve.
I must say, I wish I'd given my budget to the ministry of trip.
But however, the focused and I think our prime minister's focusing on governance,
focusing on quality of life, which is the cost of living and growth.
Right. So I hope in this budget allocation
that's given to the relevant initiatives that will drive economic growth from
Lisa Abramowicz trade. Do you have a Tracy Alloway so for
trade? I'm hoping to see a budget that will
allow us to attract more investments through a mechanism where it's make it
easier for investors. Of course, easier use means incentives,
ease of doing business. The other thing by Malaysia is, you
know, opening up to too. Always talking about capital.
It's symbolic capital. But also we need to look at human
capital. So perhaps we need to be more open about
getting top talent into Malaysia.