SPEECH BY

 

YAB DATO’ SERI ANWAR BIN IBRAHIM

PERDANA MENTERI

  

 

FOR

 

TUN RAZAK EXCHANGE (TRX) LAUNCH CEREMONY AS AN INTERNATIONAL FINANCIAL HUB

 

 

24 FEBRUARY 2024 (SATURDAY)

 

MENARA TRX,

KUALA LUMPUR

 

Assalamualaikum warahmatullahi wabarakatuh dan Salam Sejahtera.

Alhamdulillah nahmaduhu Wa rusuli Ala rasulillah Karim.

YB Datuk Seri Amir Hamzah bin Azizan,

Menteri Kewangan II;

YBhg. Datuk Johan Mahmood @ Johan Mahmood Merican,

Ketua Setiausaha Perbendaharaan (KSP);

Ahli-ahli Yang Berhormat, Tuan Yang Terutama Para Duta;

YBhg. Dato’ Haji Azmar Talib dan seluruh keluarga TRX;

dan tetamu yang saya muliakan.

1. Pada hari ini tentunya satu penghormatan kerana kita melakar sejarah yang bermakna kerana Malaysia telah dapat menyaksikan satu lagi mercu tanda yang penting iaitu sinergi di antara kecanggihan dalam pembinaan yang sesuai dengan tuntutan zaman. Tetapi mengambil kira tekanan kebudayaan dan apa yang diungkapkan sebagai lebih prihatin dan inklusif.

2. So, it gives me real pleasure to be here today to thank YBhg. Dato’ Haji Azmar Talib, the TRX family. This enterprise is of course very challenging for an emerging economy. But we have witnessed the ability of Malaysians to craft a program and to execute an enterprise, a building TRX Exchange, which could fulfill the requirements of the present challenge, a more sophisticated building, IT friendly, a latest state of the art, at the same time mindful of the fact that the major criticism of buildings and development of cities considered to be culturally barren, not friendly to the environment and not inclusive.

3. So I salute TRX exchange, Datuk Azmar and the family for this enterprise. It is highly sophisticated, it is challenging, it is environmentally friendly, it is not culturally barren looking at the environment and it is inclusive particularly with the collaboration with Dewan Bandaraya Kuala Lumpur.

4. I have also entrusted Dewan bandaraya to ensure that in the fringes enough attention is given to the general public, not only in terms of the park, but in terms of food stalls that could be utilized and would benefit the poorer section segments of our community. And thank you very much for this understanding.

5. Now, this is of course a challenging task because in the MADANI economy, one of the trusts is of course to enhance the position of Malaysia to be competitive again and to be a center, a major financial center in the region. And to that effect, we have also embarked on a very aggressive policy to ensure that Malaysia be able to be considered a major center for Islamic halal and also financial activities.

6. In a different connotation, not necessarily tied to sophisticated financial instruments and banking of the past, but to be mindful of the fact that in this days and age, Islamic financial center is not only to ensure that the instruments are islamic in the sense that and using present day instruments focused purely on finance and banking, but to also consider the participation of muslim countries with huge capacity in financial instrument alone translates beyond $1 trillion, but to also be able to integrate with the other players in terms of our effort in ensuring success in Energy Transition, Digital Transformation and also Food Security.

7. The MADANI Economic Framework, for example, represents a holistic strategy devised to reinvigorate Malaysia’s economic landscape. This initiative not only addresses existing challenges, but also focuses on key areas for sustainable growth and resilience. It aims to bolster Malaysia’s economic standing on a global scale, navigate the complexities of the global landscape and ensure the nations adaptability and resilience through enhanced competitiveness.

8. There is a strategic emphasis on fostering innovation and entrepreneurship, promoting robust and inclusive economic growth and ensuring the equitable distribution of benefits. SME’s are encouraged to adopt technological advancements and streamline regulatory processes.

9. It bases importance on managing inflation, optimizing labor market dynamics and fortifying the nation’s financial sector. These measures are instrumental in sustaining economic momentum while fostering an environment conducive to both domestic and international investment.

10. By consolidating these efforts and capitalizing on Malaysia’s strength, including foreign reserves, capital markets and favorable economic indicators, the MADANI economy endeavors to usher in a new era of economic resilience and progress for the nation. The MADANI administration is taking a whole of government approach in achieving a common goal.

11. For example, the Ministry of Finance sets the measures and the budget to kickstart Malaysia’s journey towards realizing economy MADANI’s vision. The ministry is also guided by the Public Finance and Fiscal Responsibility Act 2023 to ensure prudence in our pursuit of economic growth.

12. Rarely you find the treasury prepared to be willing to embark on this very tough measure because actually what it means, and I told my colleagues in Parliament, is surrendering part of the power of the Minister of Finance to Parliament and sometimes we get hell as a result (joking tone).

13. But this is, I think a particularly pertinent move, a critical move to ensure that there is accountability and clarity of policy that we must adopt and execute. At the same time, the MoF works hard hand in hand with the Ministry of Economy to decide the country’s economic future trajectory of paramount importance to the near term fiscal recovery. If the subsidy targeting exercise which the MoF, the Ministry of Economy are responsible. And MITI the consolidation of Malaysia’s investment promotion agencies to streamline the process of courting investments enhance ease of doing business.

14. I must commend MIDA, MITI and of course all the agencies because the ability to elevate our next FDI from RM3.1 billion in the second quarter of 2023 to RM17.1 billion in the fourth quarter. Kudos to MITI for successfully forging a strategic partnership with the UAE to advance digital infrastructure development.

15. The MADANI government is also working on rehabilitating Malaysian cities livability standards and infusing more cultural activities into these cities. Putrajaya will be turned into an exemplar for a low carbon city as government efforts are underway to use renewable energy sources therefore electricity generation.

16. As the country’s international financial center, TRX enjoys special status. With this status, the government has provided a slew of incentives for companies moving their base here. This encompasses an industrial building allowance tax exemption on 70% of the statutory income for a period of five years for property developers, stamp duty exemption on loan and services for TRX status company and an income tax exemption of 100% for a period of ten years. Now having said that, I have a major problem of seeking ways to increase revenue (joking tone).

17. Throughout history, every step, every single step forward, new buildings, new processes and especially changes in society has been challenged. This is for one simple and powerful reality that change is hard. Change isn’t easy. Some of you may be familiar that this MADANI government the last one and year or so has been clearly tough.

18. To ensure that we return and practice and observe the rules of good governance and zero tolerance for corruption we have taken very tough measures, very unpopular but I think they would ensure the success of Malaysia to be not only a major hub for financial center in the region but to my mind the resonator of any leadership and government is to ensure that they serve the nation and do not use power to enrich themselves by squandering public wealth.

19. Now with the MADANI economy the nation has embarked upon building a new architecture for a more open, transparent and competitive Malaysian economy. To create a future where every Malaysian has an opportunity to get a good job, a high paying job and to prosper and to our nation, for our nation to come together as a united Malaysian nation irrespective of race, creed or religion.

20. For us to succeed in today’s global economic environment and win the future together, we must move forward together with the steadfast support and partnership of the business and financial community. I am convinced Inshallah we will succeed.

21. On that note, it gives me again great pleasure to launch the Tun Razak Exchange as Malaysia’s international financial center.

Terima kasih.

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