Author: admin

  • Kenanga Futures Launches “Mastering Futures” Campaign to Empower Traders

    Kenanga Futures Launches “Mastering Futures” Campaign to Empower Traders

    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

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

    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

    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

    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 capitalismwhich 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

    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

    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

  • SMART MANUFACTURING INSPIRES FAMILY BUSINESS SUCCESSION  THE MALAYSIA SMART MANUFACTURING AWARDS 2023 SHARES FINDINGS AND OBSERVATION

    SMART MANUFACTURING INSPIRES FAMILY BUSINESS SUCCESSION THE MALAYSIA SMART MANUFACTURING AWARDS 2023 SHARES FINDINGS AND OBSERVATION

    Kuala Lumpur, 13th Aug 2024 – The Malaysia Smart Manufacturing Awards 2023 (MSMA 2023), co-organised by MIDF, Bizsphere, and Smart4wrd, and endorsed by the Ministry of Investment, Trade, and Industry Malaysia, concluded with significant insights and observations from the nominations. The awards ceremony, held on 24th July 2024 in the presence of Yang Berhormat YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz Minister of Investment, Trade, and Industry Malaysia, saw attendance from heads of government agencies, business leaders, manufacturers, and stakeholders of the smart manufacturing ecosystem. SIRIM was the Smart Manufacturing Ecosystem Partner of MSMA 2023 with FSBM MES Elite, SHRDC, RAM, SmartB Solutions, EcoWorld, Avis and Teibto as sponsors.

    During the event, Mr. Yap Keng Teck, Managing Consultant of Bizsphere and Programme Head of Smart4wrd, shared 10 key findings and observations from the nominations. These insights are crucial for the business community to understand the significant impact and potential of smart manufacturing on Malaysian manufacturers.

    Key Findings and Observations:

    1. Industry4WRD Programmes: A Key Motivation to Kick-Start the Smart Manufacturing Journey

    The Industry4WRD Readiness Assessment (RA) has been instrumental in providing manufacturers with a comprehensive understanding of their current capabilities and identifying areas for improvement. This assessment helped companies discover pain points that could be effectively addressed using Industry 4.0 technologies. Additionally, the Industry4WRD Intervention Fund has proven to be a significant motivator, enabling companies to invest in smart manufacturing solutions.

    1. Inspiring Family Business Succession

    Smart manufacturing initiatives have motivated younger family members to join and modernize their family businesses, ensuring continued growth and innovation through generational succession. This new wave of technology has allowed younger members to engage in transformative projects, demonstrating their capabilities and driving innovation within the company. It has rejuvenated interest in manufacturing and provided a sense of purpose and challenge for the next generation.

    1. Implementation Can Be Achieved at a Reasonable Cost

    Contrary to the perception that Industry 4.0 implementations require substantial investments, many projects have been successfully executed for less than RM 100,000. Notably, some mid-tier companies have managed to spend even less than SMEs while achieving high returns on investment. These examples highlight that cost-effective solutions are available, making smart manufacturing accessible to a wider range of businesses.

    1. Operators Feel Proud and Motivated to Work

    The integration of Industry 4.0 technologies has transformed the roles of operators, elevating their responsibilities and engagement. For instance, employees who were previously seen as mere data entry personnel are now analyzing data to make informed decisions. This shift has boosted their pride and motivation, as they now play a crucial role in the decision-making process and contribute directly to the company’s success.

    1. Significant Increase in Production Capacity

    Adoption of Industry 4.0 technologies has led to remarkable improvements in production capacity. Some companies reported over a 60% increase in output by implementing smart manufacturing solutions in just one of their processes. These substantial gains demonstrate the potential for Industry 4.0 to revolutionize production efficiency and scalability.

    1. New Business Opportunities and Revenue Streams

    Several companies have leveraged their internal expertise and operational know-how to develop proprietary smart manufacturing systems. These systems have not only optimized their own operations but also been productized and offered as solutions to other manufacturers in similar sectors. This approach has opened up new business opportunities and created additional revenue streams, showcasing the innovative potential of Industry 4.0.

    1. Implementation Possible Without an Internal Technical Team

    Successful implementation of Industry 4.0 projects has been observed even in companies lacking internal technical expertise. These companies have collaborated with external technology providers and consultants to execute projects with significant impact. This finding underscores the feasibility of adopting smart manufacturing solutions without the need for a dedicated in-house technical team.

    1. Involvement of Company Leadership Guarantees High Success

    The active involvement of company leadership has been a critical factor in the success of Industry 4.0 projects. Initiatives championed by top executives and heads of companies have shown markedly better results. Leadership engagement ensures strategic alignment, resource allocation, and sustained commitment, driving the successful adoption of smart manufacturing technologies.

    1. Data Utilization for Intelligence Yet to Be Maximized by Many

    While many nominees have successfully adopted Industry 4.0 technologies and generated valuable data, there is still significant untapped potential in data utilization. Minimal efforts have been made to analyze and leverage this data for strategic business decisions. This presents an opportunity for companies to enhance their competitive edge by fully harnessing data-driven insights.

    1. Laying the Foundation Towards ESG Compliance

    The convergence of Information Technology (IT) and Operational Technology (OT) facilitated by Industry 4.0 has greatly enhanced visibility and traceability within manufacturing processes. This integration supports Environmental, Social, and Governance (ESG) compliance by enabling better monitoring, reporting, and management of sustainability efforts. Companies are now better equipped to meet ESG standards and demonstrate their commitment to sustainable practices.

    Award Winners:

    The MSMA 2023 recognized the following companies for their outstanding achievements in smart manufacturing:

    Chuan Sin Sdn Bhd

    CTRM Aero Composites Sdn Bhd, a member of DRB-Hicom

    ViTrox Technologies Sdn Bhd

    Pet World Nutritions Sdn Bhd

    Ingress AOI Technologies Sdn Bhd

    HICOM-Teck See Manufacturing Malaysia Sdn Bhd, a member of DRB-Hicom

    PHN Industry Sdn Bhd, a member of DRB-Hicom

    Cooltec Industries Sdn Bhd

    P. A. Food Sdn Bhd

    CPI (KL) Sdn Bhd

    Hernan Corporation Sdn Bhd

    Sydney Cake House Sdn Bhd

    Famax Technology (M) Sdn Bhd

    Ngeam Engineering Works Sdn Bhd

    Markaids (M) Sdn Bhd

    Setsu Precision Technology (M) Sdn Bhd

    Promooi Plastic Industries Sdn Bhd

    Q-FIT Sdn Bhd

    Green Borneo Industries Sdn Bhd

    Standard Kitchen Sdn Bhd

    Emerging EPC Sdn Bhd

    Sincerely Dyeing & Finishing Sdn Bhd

    Inari Integrated System Sdn Bhd

    Mr. Yap Keng Teck stated, “The findings from the MSMA 2023 nominations underscore the transformative power of smart manufacturing. It is heartening to see the tangible benefits realized by manufacturers, from increased production capacity to new business opportunities. These success stories serve as an inspiration for others in the industry to embark on their smart manufacturing journey.”

    The MSMA 2023 has not only recognized excellence but also highlighted the significant strides made by Malaysian manufacturers in embracing Industry 4.0, setting a strong foundation for the future of manufacturing in Malaysia.

  • foodpanda Malaysia launches ‘Jejak Panda’ to provide accessible income opportunities

    foodpanda Malaysia launches ‘Jejak Panda’ to provide accessible income opportunities

    KUALA LUMPUR,  13 AUGUST 2024 – foodpanda Malaysia has introduced a delivery partner recruitment campaign providing quick earning opportunities, as part of its commitment to uplifting the local communities it serves.

    The  campaign, “Jejak Panda”, was launched by YB Fahmi Fadzil, Member of Parliament for Lembah Pantai and concurrently the Minister of Communications and Shubham Saran, Director of Operations at foodpanda Malaysia at a one-day event at IWK Eco Park in Pantai Dalam on 13 August 2024.

    “Jejak Panda” reiterates foodpanda’s continuous efforts to uplift the communities it serves by offering easy access to earning opportunities. As freelancers, foodpanda delivery partners can work as and when they wish. This provides an accessible option for those seeking temporary income, or wanting to supplement their existing earnings.

    The event, which was attended by over 150 Pantai Dalam residents, provided attendees an exclusive chance to sign up as a foodpanda delivery partner and receive their ID on the spot. Those who signed up also received on-the-day training and complimentary rider kit worth up to RM150. This allowed them to start delivering immediately, bypassing the usual 2-3 working day application process.

    Attendees were treated to an afternoon of food, fun, and a series of activities, including free health and eye checkups. They also learnt about the welfare and engagement initiatives under ‘panda hearts’ – a recently launched programme designed to uplift and support delivery partners in key areas they value. Some of these benefits include insurance schemes available to all foodpanda delivery partners and their families, as well as upskilling programmes.

    Shubham Saran, Director of Operations, foodpanda Malaysia, said, “As a leading delivery platform in Malaysia, we recognise the important role we play in supporting our communities and offering accessible earning opportunities. We are grateful for the support of our partners, which helps us reach more people and make a greater impact across Malaysia,”

    “Our support for communities goes beyond just offering earning opportunities. As a foodpanda delivery partner, they will benefit from the welfare and engagement initiatives under panda hearts, helping them to get closer to their life goals and aspirations.” concludes Shubham.

    -End-

  • Kenanga Investors Launches New Global Islamic AI Fund

    Kenanga Investors Launches New Global Islamic AI Fund

    KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 14 August 2024 – Kenanga Investors Berhad (“Kenanga Investors”) has announced the launch of the Kenanga Alternative Series: Islamic Global Responsible Strategies Fund (“KASIGRSF”), a new addition to the Kenanga Alternative Series.

    The KASIGRSF is an open-ended Islamic wholesale fund that seeks to provide capital growth through exposure across global Shariah-compliant equities by investing in Chicago Global Responsible Strategies (“Target Fund”). The Target Fund is an open-ended Shariah-compliant fund, managed by Chicago Global Capital Pte. Ltd (“Target Fund Manager”). The Target Fund leverages advanced big data to determine alpha signals that best predict future returns which includes using artificial intelligence (“AI”) to identify financial data, market trends, social sentiment, and alternative data sources.

    “Innovation in Islamic asset management has been relatively limited over the past 20 years with Shariah-compliant investment products accounting for less than 1% of the world’s financial assets. Islamic investors have been largely underserved, with few options beyond concentrated, actively managed funds or broad market Islamic indices. However, the industry is now facing a necessary evolution. With approximately 2.5 quintillion bytes of data generated each day worldwide, traditional methods are not equipped to handle supermassive, unstructured datasets. The Target Fund addresses this gap, leveraging advanced machine learning techniques to offer a sophisticated, data-driven approach and Shariah-compliant investment solution for investors”, said Executive Director and Chief Executive Officer of Kenanga Investors, Datuk Wira Ismitz Matthew De Alwis.

    “By incorporating the new fund into our suite of products, we are also enabling our investors to diversify their portfolios, manage risk more effectively, and pursue their financial goals with a holistic approach. Ultimately, this aligns with our commitment to delivering well-rounded and strategic financial planning services for long-term success”, he added.

    The investment philosophy underpinning the Target Fund is deeply rooted in the University of Chicago’s heritage in finance, with the over 20 alpha signals derived from rigorous academic research, developed in collaboration with Nobel Prize-winning scientists at the university. Ivan Chelebiev, Founder and Chief Executive Officer of Chicago Global Capital (“Chicago Global”) explained, “Chicago Global Capital operates a state-of-the-art asset pricing engine, which distils, verifies, and analyses a billion datapoints per week, extracting actionable intelligence in real-time. We identify and deploy investment signals that are up to 10 times stronger than conventional methods. As the industry continues to evolve, Kenanga Investors’ commitment to bringing cutting-edge strategies to its investors will set it apart from its rivals. To fuel its next growth chapter, we are excited to partner with Kenanga Investors to launch KASIGRSF. The team at Chicago Global remains focused on delivering exceptional value to our partner and its investors, cementing our position as a pioneer in the age of data-driven investing”.

    Benchmarked against the MSCI ACWI Islamic Index, the KASIGRSF is suitable for Sophisticated Investors with medium to long term investment horizons. It is available in dual currency classes of MYR and USD with minimum initial investment amounts of RM5,000 and USD1,000 respectively.

    The Kenanga Alternative Series (“Series”), which was launched in July 2024, aims to cater to investors’ tactical needs while seizing emerging opportunities within dynamic market segments. In addition to KASIGRSF, the Series also includes the Kenanga Alternative Series: Income Opportunities Fund. Each fund offers unique benefits, allowing investors to diversify and hedge their portfolios according to their needs.

    The Hong Kong-based Asia Asset Management’s 2024 Best of the Best Awards has awarded Kenanga Investors with the Malaysia Best House for Alternatives title for five consecutive years. This recognition underscores the asset manager’s excellence and innovation in the alternatives investment space, reaffirming its position as a trusted leader in the industry.

    For more information about Kenanga Investors, please visit www.kenangainvestors.com.my.

    Kenanga Investors Berhad 199501024358 (353563-P)
    We provide investment solutions ranging from collective investment schemes, portfolio management services, and alternative investments for retail, corporate, institutional, and high net worth clients via a multi-distribution network.

    The Hong Kong-based Asia Asset Management’s 2024 Best of the Best Awards awarded KIB under the following categories, Malaysia Best Impact Investing Manager, Best Impact Investing Manager in ASEAN, Malaysia Best Equity Manager, Malaysia CEO of the Year, Malaysia CIO of the Year, Malaysia Best House for Alternatives, Malaysia Most Improved Fund House and Malaysia Best Investor Education.

    At the LSEG Lipper Fund Awards Malaysia 2024, KIB received awards for the Kenanga Malaysian Inc Fund (“KMIF”) under the best Equity Malaysia Diversified – Malaysia Pension Funds over 10 Years and the Kenanga Diversified Fund (“KDF”) under the best Mixed Asset MYR Flexible – Malaysia Pension Fund over 10 Years.

    The FSMOne Recommended Unit Trusts Awards 2024/2025 named Kenanga Growth Fund Series 2 as “Sector Equity – Malaysia Focused”.

    For the seventh consecutive year, KIB was affirmed an investment manager rating of IMR-2 by Malaysian Rating Corporation Berhad, since first rated in 2017. The IMR rating on KIB reflects the fund management company’s well-established investment processes and sound risk management practices. As at end-June 2023, most of KIB’s funds had performed better than benchmarks and were comparable to peers.

  • Cybersecurity Threat Landscape: Emerging threats and Mitigating Risks in 2024

    Cybersecurity Threat Landscape: Emerging threats and Mitigating Risks in 2024

    14 August 2024

    The cybersecurity threat landscape is constantly evolving as new threat actors, technologies and threats emerge, creating an uncertain world for organisations and the public alike with potential pitfalls in even opening an email. Cybersecurity professionals must stay vigilant and ahead of rapidly evolving schemes, threats and strategies by cybercriminals who are leveraging open source technologies and are becoming increasingly sophisticated.

    A Broad Overview of the Threat Landscape

    Based on the findings from the Kaspersky Incident Response Analyst Report 2023, the present scale of cyberthreats saw that 75% of cyberattack attempts exploited Microsoft Office. In terms of infection vectors, 42.3% of successful attempts used publicly available applications with 20.3% using compromised accounts while just 8.5% used brute force credentials.

    When it comes to infection vectors, most incursions were on attackers using stolen or purchased credentials before committing a remote desktop protocol (RDP) attack, phishing emails loaded with malicious attachments and links and malicious files on public resources imitating document templates. At a silver lining, attack attempts dropped by 36% in Q1 of 2023 compared to the same period in 2022.

    After incurring a cyberattack, the aftermath resulted in 33.3% of organisations getting their data encrypted, 21.1% incurring data theft and 12.2% encountered compromised active directories.

    Based on a prior Kaspersky survey conducted in 2022, the biggest looming cyberthreat risk is ransomware (66%) along with data theft (also 66%), followed closely by cybersabotage (62%), supply chain attacks (60%) and DDos attacks (also 60%), cyberespionage (59%), advanced persistent threats [APT] (57%) and cryptomining (56%). For 2024, currently trending cyberthreats are primarily supply chain attacks (6.8%) and targeted phishing attempts (5.1%) which remain a clear and present threat for businesses.

    Based on the same 2023 statistics, the most prolific target by threat actors was governments (27.9%), financial institutions (12.2%), manufacturing (17%) and IT companies (8.8%). In terms of targeted regions, Asia and CIS saw the most cybersecurity incidents at 47.3% followed by the Americas (21.8%), the Middle East (10.9%) and Europe (9.1%). “Governments were the most prolific target by threat actors followed distantly by manufacturing and financial institutions with the largest cyberthreat risk being ransomware and cybersabotage,” said Igor Kuznetsov, Director, Global Research & Analysis Team (GReAT) at Kaspersky.

    Based on statistics from Kaspersky’s security solutions employed by clients, over 220,000 businesses were protected around the world with 6.1 billion attacks prevented with Kaspersky security solutions along with 437 million internet-borne threats detected and stopped. In addition, over 325,000 users were saved from financial loss after banking trojans were detected and thwarted.

    To achieve this, Kaspersky security services detected over 411,000 unique malware samples daily in 2024 which is an increase over 403,000 daily in 2023. In terms of cybersecurity incidents, over 99% were detected by automatic systems. 2023 also saw 106 million unique malicious URLs detected and 200 advanced persistent threat (APTs) groups that are currently active.

    Ransomware as a service (RaaS) coming to the fore

    The prevailing trend is that cybercrime is often run as a business with the majority of detected cybersecurity incidents (71%) being financially driven. There was a marked rise in ransomware incidents that saw the percentage of users affected by targeted ransomware almost doubling in 2021-2022. This was borne with a survey that saw 68% of business owners surveyed believing that IT security risks keep rising.

    “There are three popular myths in regards to ransomware,” said Igor,” the first being that cybercriminals are just criminals with an IT education, that the targets of ransomware are set before an attack and that ransomware gangs are acting along.” Contrary to popular opinion, most cyber incidents are opportunistic attacks while many ransomware gangs actually work with affiliates much like a business, performing ransomware as a service (RaaS).

    RaaS operates as a sophisticated process, initially involving a ransomware developer and a packer developer to create the malware itself, which is then marketed to other cybercriminals. Various specialised threat actors contribute to the ransomware ecosystem:
    1. Access resellers offer entry to protected systems as a service, often selling their wares on specialised underground marketplaces.
    2. Rogue analysts identify the true value of targets and make strategic suggestions to professional negotiators. Once a malware payload has been delivered, these specialised negotiators come into play to ensure the ransom is paid using their social engineering skills. After payment, they facilitate the laundering of funds before the cycle repeats.
    3. State-sponsored Advanced Persistent Threat (APT) actors may exploit cybercriminals as convenient entry points into targets of interest, using these connections to conduct espionage or inflict damage on victims.

    In some cases, these operations may include infiltration tactics (similar to red team exercises) to deploy ransomware effectively. This collaborative approach allows cybercriminals to pool their expertise, making ransomware attacks more sophisticated and challenging to defend against, while also ensuring the entire process from initial breach to fund laundering is handled by specialists at each stage.

    To optimise the chances of success, cybercriminals may afford purchasing 0-day exploits from other criminals which was a luxury previously accessible only to state-sponsored actors but which is now up for the highest bidder. Crossplatform cryptors are also becoming more creative and adaptive and have enacted self-defense mechanisms to their malware to make them more difficult to decrypt.

    These various specialised cybercriminals all play their part and once a malware payload has been delivered, specialised threat actors who act as professional negotiators come into play to get the ransom paid and after the ransom is paid, to then get the funds laundered before the cycle repeats itself.

    “Ultimately, affected organisations must not pay a ransom which will perpetuate and enable more cybercrime,” said Igor. He warned that even if a ransom is paid, the data may have already been stolen and could be leaked later or used for further extortion attempts. Instead, Igor highlighted alternative solutions: “Victims can often recover their data without paying. Kaspersky maintains a vault of keys and tools to decrypt data locked by various ransomware families. Since 2018, over 1.5 million users worldwide have successfully recovered their data using these resources.”

    Operation Triangulation

    One of the biggest potential threat vectors that was discovered by Kaspersky was Operation Triangulation that targeted iOS devices with unknown malware and which exploited a hardware vulnerability inside Apple CPUs and employed four 0-day vulnerabilities to infect a target devices which would cost more than US$1 million in the black market to obtain.

    When an iOS device is targeted, it will get an invisible iMessage with a malicious attachment with a non-interaction exploit from the message initiating code execution. Once the code is deployed, it connects to a service and then starts a multi-stage execution of the malware payload. Once this is completed, an attacker will gain full control over the compromised iOS device and all traces and logs are then wiped to eliminate any trace of the attack.

    These vulnerabilities have already been patched by Apple but to prevent possible future cyberattacks, users of iOS devices need to regularly update their firmware, conduct regular reboots and disable iMessage to prevent it as a possible malware pathway.

    Containerised Systems – Implementing Rules To Mitigate Risk

    Supply chain attacks, closely tied to containerised systems running on open-source software, present another significant threat vector for 2024. These cloud-hosted systems enable services to operate independently from the host operating system, allowing execution in diverse environments. Containerisation facilitates lightweight, efficient applications that can run on various devices and in clusters, managing demanding workloads at scale. This versatility underpins many modern applications and systems, including open-source platforms like Kubernetes.

    “Containerised systems often rely on numerous third-party dependencies, introducing significant supply chain risks from both malicious intent and unintentional flaws,” explains Igor. He cites two recent examples: “The Crowdstrike event caused an outage on millions of devices, demonstrating how a faulty update can have widespread impact. Additionally, a less publicised attack on XZ Linux utilities could have compromised millions of SSH-enabled devices, highlighting the potential for malicious exploitation in the supply chain.”

    At present, hundreds of millions of open source packages are accessible to developers at popular sites like GitHub with over 100 million developers using the site. On average, 670 malicious open source packages are discovered every month and to date, over 12,000 vulnerable open source packages have been known and identified.

    Proper security policies need to be enacted for containerised systems with close scrutiny to images to ensure no vulnerable or untrusted content, ensuring the image registry does not contain outdated or misconfigured settings, that the orchestrator has robust access and network control policies free of configuration and authentication errors, that containers have safe configurations and ensuring that host OS systems ensure shared kernels are managed responsibly while minimising potential attack surfaces.

    More robust rules for containerised systems need to be implemented and a system such as Kaspersky Security Container that protects at multiple levels needs to be integrated into systems along with a comprehensive security policy.

    Best cybersecurity practices for 2024

    To avoid falling victim to a targeted attack by a known or unknown threat actor, organisations need to create and maintain a mature security posture through a combination of effective strategy, proper employee education on cybersecurity, updated threat intelligence from trusted cybersecurity providers and a proper application of technology. While no system is infallible or invulnerable, Kaspersky researchers recommend implementing the following security measures to maximise protection:

    ● Update your operating system, applications, and antivirus software regularly to patch any known vulnerabilities.

    ● Provide your SOC team with access to the latest threat intelligence (TI). The Kaspersky Threat Intelligence Portal is a single point of access for the company’s TI, providing cyberattack data and insights gathered by Kaspersky spanning over 20 years.

    ● Upskill your cybersecurity team to tackle the latest targeted threats with Kaspersky online training developed by GReAT experts.

    ● For endpoint level detection, investigation, and timely remediation of incidents, implement EDR solutions such as Kaspersky Endpoint Detection and Response.

    ● Investigate alerts and threats identified by security controls with Kaspersky’s Incident Response and Digital Forensics services to gain deeper insights.

    More information can be found at Kaspersky

    About Kaspersky
    Kaspersky is a global cybersecurity and digital privacy company founded in 1997. With over a billion devices protected to date from emerging cyberthreats and targeted attacks, Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative solutions and services to protect businesses, critical infrastructure, governments and consumers around the globe. The company’s comprehensive security portfolio includes leading endpoint protection, specialised security products and services, as well as Cyber Immune solutions to fight sophisticated and evolving digital threats. We help over 220,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com.