China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.
In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.
Technological breakthroughs also shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.
The data industry has emerged as a new growth driver. In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20). Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities, according to the NDA.
By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. Meanwhile, intelligent transformation and digital upgrading are advancing at an accelerated pace. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. - Global Times
Why Malaysia is Becoming a Semiconductor Powerhouse
Malaysia has become a winner amidst the ongoing chip war between the U.S. and China, and here's why.
This video is based on publicly available data and analysis. It represents the author’s perspective and should not be taken as professional or financial advice.
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar
KUALA LUMPUR: Malaysia is in a “sweet spot” for economic growth and investment, with the “stars aligning” in its favour, according to industry leaders and market analysts.
This optimism stems from the country’s robust macroeconomic fundamentals, improving investment climate and strategic positioning in the global supply chain.
Maybank Investment Bank head of regional equity research Anand Pathmakanthan highlighted Malaysia’s acceleration in gross fixed capital formation, driven by a blend of domestic direct investment (DDI) and foreign direct investment (FDI).
“The good news is it’s not just FDI, it’s also DDI, which is far more important in terms of job creation and tax generation,” he said during his presentation at the Institute of Chartered Accountants in England and Wales Economy Insight Conference 2024 yesterday.
Anand said for the last 10 years, local companies have not been investing, which has a lot to do with political instability.
“They’ve been investing less and less in Malaysia, which is always a bad sign for any country,” he said.
But in the last two years, he said Malaysia is seeing a recovery in DDI.
“The recovery in DDI reflects the confidence that domestic businesses are feeling better about the environment. That (DDI) is going to be a key support when issues about trade crop up next year with Trump 2.0,” he said.
Meanwhile, Anand said Budget 2025 is “very well-balanced,” emphasising initiatives to crowd-in private sector investments.
He projected continued economic growth, supported by a civil service pay hike, minimum wage increases and enhanced cash handouts, which would sustain domestic consumption in 2025.
“Malaysia is in a very sweet spot, especially when it comes to attracting supply chain relocation and FDI,” he said.
Anand projected Malaysia’s gross domestic product (GDP) to conclude at 5.2% in 2024 and 4.9% in 2025, outpacing the Asean-6 regional average of 4.8% in 2024 and 4.7% in 2025.
Affin Bank Bhd president and chief executive officer Datuk Wan Razly Abdullah echoed the optimism, projecting GDP growth of 5.2% in 2025, up from the bank’s projection of 5% for this year.
He attributed this to stable oil prices, elevated crude palm oil (CPO) prices and active construction and technology sectors.
“The elevated price of oil and CPO will provide good income streams,” he said, adding that Johor and Klang Valley developments would boost the property sector.
“The stars are aligning for Malaysia thanks to our stable political environment and strong FDI flows.”
Wan Razly also expressed bullishness on the ringgit, predicting it to strengthen to RM4.10 against the US dollar by end-2025, supported by the US Federal Reserve interest rate cuts.
Adding to the optimism for Malaysia’s economic prospects, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar highlighted the robust performance of the local bourse, driven by a favourable investment environment and strong macroeconomic fundamentals.
“Malaysia has been a vibrant market for initial public offerings (IPOs) this year. Up to the end of November, we had 47 listings that raised a total of US$1.5bil. By year-end, we expect to close with 54 or 55 listings,” he said.
He noted that the average daily trading value for 2024 has increased by over 50% year-to-date, reaching approximately RM3.1bil.
Abdul Wahid believes this momentum will be sustained into 2025, with 19 IPO approvals in hand for next year.
“Looking at the pipeline, I think 2025 should be another good year,” he said.
He said “the overall good macroeconomics are being translated into the real world and capital markets,” coupled with a shorter processing time for IPO listings of just three months.
Separately, Abdul Wahid said Malaysia should further tap into the Asean market and leverage its strategic advantages, as the regional bloc is well-positioned amidst global uncertainties, particularly ahead of the United States’ tariff threats on China.
Abdul Wahid urged Malaysia to continue to pursue its relationship with Asean in a pragmatic and constructive manner to further capitalise on the bloc’s 670 million consumers.
“The biggest potential that we have is in Asean. Our trade and investments (in the bloc) is relatively low compared to other trade partners and that can be enhanced further,” he said.
Abdul Wahid also emphasised that Malaysia should not be mutually exclusive to any specific trade groupings, trade talks or bilateral agreements and should focus on further strengthening trade relationships.
In the realm of inflation, both Anand and Wan Razly anticipate a rise to 3% in 2025, up from the current 1.9%, mainly due to the targeted petrol subsidy scheduled to take effect mid next year.
Despite the projected uptick, both of them said Malaysia’s inflation rate will stay within a healthy range, underpinned by strong macroeconomic fundamentals and effective policy measures.
China's extensive global trade "circle of friends," driven by cooperation and mutual benefit, is becoming increasingly solid, continuously injecting certainty and growth momentum into the global economy.
Quick fix: Pedestrians walk past a Moore Wilson & Co supermarket in Wellington. The success of New Zealand’s reforms are reflected in its fiscal performance, says Ball. — Bloomberg
WELLINGTON: In the early 1980s, New Zealand was on the brink of economic collapse.
Two oil price shocks had saddled the country with high inflation, and the United Kingdom’s decision to join the European Economic Community a decade earlier had cut off access to a key export market.
Successive governments had compounded the pain with a series of policy errors – throwing around subsidies, awarding inflationary pay deals and trying to control prices, while keeping interest rates too low and taxes too high.
The result was soaring unemployment and mounting debts.
No wonder some dubbed New Zealand the Albania of the South Pacific.
Yet over the remainder of that decade, New Zealand was transformed into one of the most prosperous countries in the world.
A new Labour government took office in 1984 and embarked on a form of shock therapy that came to be known as “Rogernomics” after Finance Minister Roger Douglas.
The government removed exchange controls, slashed subsidies, privatised services and handed responsibility for setting interest rates to a newly independent central bank.
New Zealand also introduced a different accounting approach throughout the public administration.
It is impossible to separate out the precise impact of each of these policies.
But Ian Ball, a former senior Treasury official, professor of public finance management at Victoria University in Wellington, and one of the authors of Public Net Worth (Palgrave Macmillan, February 2024), says accounting reform was among the most consequential.
Accounting is notoriously dry stuff. But switching to an accruals-based approach used in the private sector, and away from the cash-based systems traditionally used by governments, forced departments to think long-term and maximise the efficient use of assets.
This is especially relevant in the United Kingdom at the moment with the government on the cusp of major budget reform.
To see what this means in practice, take the case of public sector pensions.
Under a cash-based system, the debt is accounted for when the pension is paid, which could be years in the future.
The government has little incentive to make any provision for it.
But with accrual-based accounting, the cost of the pension commitment must be recorded as a liability when the benefit is earned.
That led the New Zealand government in 2001 to establish a Superannuation Fund to pay for future pensions.
Today, this quasi-sovereign wealth fund is regarded with jealousy by countries that wish they had something similar.
Take another example: Under an accruals-based system, the budget includes a charge each year to reflect the fact assets such as buildings and infrastructure deteriorate and eventually become obsolete.
This is what accountants call depreciation.
Because the cost runs through annual budgets, there is a strong incentive for governments to enhance the value of their assets by managing them efficiently.
Under a cash-based system, there is no such incentive, meaning long-term investment is deferred, and future generations are left to pick up the bill when buildings fall into disrepair and the infrastructure crumbles.
The success of New Zealand’s reforms are reflected in its fiscal performance, says Ball.
“What you see is a very significant change.
“We had had two decades of deficits before these reforms, but once they were in effect, from around 1994, we had basically a trend of strengthening the balance sheet and increasing net worth.
“And as you strengthen the balance sheet, you have the effect of reducing debt too.”
With the exception of the four years after the global financial crisis and the devastating Christchurch earthquake in 2011, which caused damage equivalent to 11% of gross domestic product (GDP), net worth grew every year until the pandemic.
Ball is on a mission to export New Zealand’s experience.
In collaboration with colleagues from around the world, including a historian, a banker, a former UK Treasury official and the former global chief economist at Citigroup Inc, he has written Public Net Worth to explain how this approach could be the answer to the one of the biggest challenges facing almost every government today:
How to tackle excessive public debt, particularly at a time when ageing populations, geopolitical tensions, geoeconomic fragmentation and the costs of combating climate change add to fiscal pressures.
US public debt is close to 100% of GDP and is projected to rise to 122% by 2034.
Many eurozone countries are struggling to bring debts and deficits under control to comply with single currency rules. The situation in many developing countries is even more stark.
Indeed, economists from the International Monetary Fund (IMF) have warned that global public debt may be higher than previously known and getting worse, and that countries will have to make much more significant fiscal adjustments to deal with the problem.
According to the IMF’s latest estimates, global public debt will exceed US$100 trillion by the end of this year, equal to about 93% of global GDP.
Against such a backdrop, the authors argue that accrual-based accounting could improve public sector productivity, helping ease the pressure on cash-strapped governments.
For example, they reckon governments could make easy gains through better management of their public property.
Cash-based accounting values property based on what you paid for it, less depreciation, with no reference to the current market value.
But without up-to-date valuations of assets, government decision-making takes place in the dark.
Should a building be renovated or sold?
How much should the state charge for its services?
A road network, for example, is a valuable public asset.
But in a cash-based system, there is no incentive to generate money from it, whether via tolls or road-pricing or some other mechanism.
In New Zealand, says Ball, one of the early exercises was to work out an appropriate capital charge for public services.
Armed with that information, the government could then decide who was best placed to deliver them: the state or the private sector.
As the old saying goes, what you can’t measure you can’t manage. — Bloomberg
It has been a while since Malaysians began to feel some pride. Certainly, the strengthening of the ringgit against the
There is bo doubt that the country's political stability under PM Datuk Seri Anwar Ibrahlim is one of the main reasons for Malaysis's economic success.
KUALA LUMPUR: It has been a while since Malaysians began to feel some pride. Certainly, the strengthening of the ringgit against the dollar has made a big impact on national confidence.
The Malaysian ringgit, which continues its upward trend, has surged to its highest level against the greenback since March 2022.
Not only is it the best-performing currency in the region, but it also became the world's top-performing currency this month as it rode on the US Federal Reserve's large interest rate cut.
The comeback story of Malaysia, underpinned by an economy that has expanded at its fastest rate in the past 19 months, has attracted global attention.
There is no doubt that the country's political stability under Prime Minister Datuk Seri Anwar Ibrahim is one of the main reasons for Malaysia's economic success compared to Thailand and Indonesia, which fell by the wayside politically.
The ringgit climbed to a 30-month high recently of 4.1815 against the US dollar recently. It ended last week, closing on Friday at 4.1230/1280.
Now, the speculations are that the ringgit could go up to RM4 against the dollar as BMI, a unit of the Fitch group, revised its year-end forecast for the ringgit from 4.55 against the US dollar to 4.0, reflecting the local currency's robust performance in the third quarter of 2024.
Looking beyond the six-month period, BMI even predicted the ringgit to strengthen by nine per cent next year, reaching 3.55 against the dollar by the end of 2025.
It sounds very good, but as we all know, the ringgit depends very much on external factors, especially on the US Fed interest rate trajectory and mainland China's growth, which is our biggest trading partner.
Over the medium view, there will always be some profit taking, which would affect our rate, but it is healthy and natural.
At one time last year, there was fear that the ringgit could hit as low as RM5 against the dollar, but now the ringgit has appreciated more than 12 per cent against the dollar.
Last week, the South China Morning Post (SCMP) reported that "for Malaysians, the exchange rate of the ringgit against the US dollar, as well as regional currencies like the Singapore dollar and the Thai baht, serves as an indicator for how well the economy is doing and reflects confidence in the government."
Whatever the criticisms and misgivings that have been levelled against Anwar Ibrahim for his purported delays in reforms and even making compromises with the conservative groups who didn't vote for him in the last general election, he is on the right track for sure.
Malaysia is politically stable, and his Madani Unity government isn't going to give way soon. His opponents must wait for another three years to challenge him despite the many political noises generated, which Malaysians have grown used to.
The SCMP quoted Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia, saying, "The stability has facilitated more effective policymaking and implementation, boosting confidence in the ringgit.
"This has created better reviews by the credit rating agencies and global investment banks."
Reuters reported a news article under the heading "Malaysia shines as foreign investors return, peers stumble."
In its Aug 22 article, the news agency said, "Malaysia is fast becoming a haven in Southeast Asia, and foreign investors are returning to a long-overlooked market as a confluence of improving growth, stable government and rising currency sets it apart among peers grappling with political flux."
"Foreigners have steadily poured more money into Malaysian debt and stocks this year. In July, as political troubles brewed in Thailand and Indonesia, they pumped US$1.75 billion into Malaysian debt markets – the highest in a year.
"The stock market, Bursa Malaysia, is gunning for its strongest yearly performance in well over a decade."
At home, while the cost of living remains a big concern among many Malaysians, the inflation rate has decreased to 1.90 per cent in August from 2 per cent in July 2024.
Trading Economics reported that the inflation rate is expected to be 1.50 per cent by the end of this year, according to its global macro models and expectations from analysts.
More importantly, the number of jobs in the first quarter of this year increased by 1.5 per cent to 8.94 million – the highest recorded since 2018, according to the Employment Statistics, First Quarter 2024.
Chief Statistician Datuk Ser Dr Mohd Uzir Mahidin was quoted by Bernama as saying that 8.81 million jobs were recorded in the first quarter of 2023.
HR Asia reported that Malaysia's job market remains robust throughout 2024, with "companies continuing to hire in line with ongoing economic expansion."
Malaysians now look forward to the annual economic report as well as the Budget to be presented in Parliament next month to have a clearer and more detailed idea of what's in store for us.
Datuk Seri Wong Chun Wai, an award-winning veteran journalist with over 40 years experience, is the chairman of Bernama.
