As we step into a new year, it’s important to look ahead and identify the industries that are poised for growth and success. In 2024, several sectors are expected to experience significant advancements and opportunities. Let’s explore the five industries that are set to thrive and make their mark in the coming year.
1. Travel Operators
After a prolonged period of uncertainty due to the global pandemic, the travel industry is expected to rebound in 2024. There is a significant resurgence in its tourism sector in 2023, with a targeted goal to surpass pre-pandemic levels of tourist arrivals in 2024. The country’s Tourism Malaysia Deputy Director General (Promotion), Musa Yusof, expressed optimism that tourism arrivals in 2024 are expected to exceed the 26.1 million foreign visitors recorded in 2019.
This positive outlook is underpinned by improved flight connectivity and the anticipation of a higher influx of visitors from China and India. The nation has already witnessed an upswing in visitor numbers last year, prompting the government to revise its 2023 year-end tourism target to 19.1 million arrivals, up from the initial projection of 16.1 million.
According to the president of the Malaysian Chinese Tourism Association (MCTA) Perak Chapter, Law Weng Sum, the association is actively collaborating with the Perak state government to develop strategies for Visit Perak Year 2024, as part of their efforts to boost domestic tourism.
In addition to highlighting popular tourist destinations, MCTA’s plans encompass food trails that span the entire state. They have even suggested the creation of a dedicated tour group solely focused on exploring the diverse range of culinary delights that Malaysia has to offer.
2. Electric Vehicles (EV) Supply Chain
The push towards sustainability and the transition to cleaner transportation options continue to gain momentum, with significant developments taking place in Malaysia. We have witnessed increased efforts by automobile manufacturers and the government in accelerating the manufacturing, launching and adoption of electric vehicles.
In the end of 2023, Proton made a bold move by entering the EV market with the launch of its smart#1 vehicle. Not to be outdone, Perodua has also planned for the local assembly of EVs, bolstering Malaysia’s vendor capability in EV-related parts manufacturing.
Further driving Malaysia’s commitment to the EV industry, EP Manufacturing Bhd (EPMB) is set to construct the country’s inaugural energy-efficient vehicle (EEV) and electric vehicle manufacturing facility in the Hicom Pegoh Industrial Park, Melaka. This ambitious project, with an investment value exceeding RM100 million, is projected to be completed by the end of 2024 and can produce up to 30,000 EVs annually.
To support the growing EV market, the Malaysian government is actively demonstrating its strong support through various initiatives and incentives. Notably, Gentari, TNB, and Tesla have pledged RM170 million to expand the EV fast-charging network nationwide, with plans to construct 180 new charging stations. This significant investment will greatly enhance the infrastructure needed to accommodate the increasing demand for EVs in Malaysia.
Moreover, the government has introduced an incentive scheme that offers RM2,500 rebate on electric motorbikes for Malaysians earning under RM120,000 annually, encouraging the adoption of electric two-wheelers. Additionally, RM600 million has been allocated to Prasarana Malaysia Berhad to acquire 150 electric buses and construct three bus depots, further promoting sustainable public transportation.
Considering the long-term commitment to the EV industry, the government has extended tax incentives, including individual income tax exemptions of up to RM2,500 for those investing in EV charging facilities, which will continue for four more years. Furthermore, tax rebates for EV vehicle rentals will be extended for an additional two years. These measures underscore Malaysia’s dedication to creating a greener and more sustainable transportation landscape.
As a result, the demand for electric and hybrid vehicles is expected to soar, presenting abundant opportunities for manufacturers and related businesses. Malaysia’s steadfast commitment to sustainability and the increasing support for the EV industry position the country as a promising hub for clean transportation innovation and development.
3. IT Companies
The ever-evolving field of information technology is set to flourish in 2024. As digital transformation becomes a priority for businesses across industries, IT companies will play a crucial role in providing innovative solutions. As we enter 2024, the potential of generative AI to revolutionize businesses and the world remains a topic of great excitement and anticipation.
However, despite the incredible ideas it has sparked, there have been limited real-world, large-scale applications of generative AI thus far. This is about to change. In 2024, we can expect to witness the emergence of the first wave of generative AI enterprise projects that will reach levels of maturity previously unseen.
One notable example is Mesolitica, a local startup specializing in developing narrow artificial intelligence (AI) systems that focus on specific tasks, as well as training large language models (LLMs). Mesolitica has already released several LLMs as open-source projects. Khalil Nooh, the CEO and co-founder of Mesolitica, has observed a growing demand for LLMs in the local commercial sector. The current version of the model developed by Mesolitica can comprehend local nuances, including slang, bahasa pasar, Manglish, Mandarin, and Tamil.
Companies are increasingly interested in having their own AI capabilities and leveraging their proprietary datasets to train their LLMs.
4. Drone Companies
The year 2024 is anticipated to be a monumental turning point for drone delivery, marking its long-awaited takeoff. What sets this year apart is the significant progress made in clearing regulatory hurdles, and creating opportunities for retailers, medical centres, and logistics platforms to embrace drone delivery services.
The recent partnership between Aerodyne, the world’s leading drone service provider and its partner Titra Technology will enable offshore delivery in the Oil and gas industry as well as remote medical delivery. The partnership also redefines the future of logistics, search and rescue industries.
Drone companies foresee themselves supporting various industry players in transitioning to sustainable operations. For example, Aerodyne has supported its clients in reducing carbon emissions via its innovative asset inspection method, reduced water consumption per hectare and pesticide reduction through precision agriculture.
5. Agriculture Companies
The Government has increased its expansionary budget for the agriculture industry in 2024. Besides the increase in the expansionary budget for the agriculture industry, Agrobank also plans to introduce its very own insurance that provides farmers protection against production loss by natural disasters.
There is currently insufficient rice production in Sabah and Sarawak due to yearly monsoons. With the nationwide expansion of the Smart SBB project, called Ala Sekinchan Large-Scale Smart, which aims to leverage technology and modern agricultural methods to boost rice production, we foresee more agriculture companies as well as agri-tech companies joining hands to provide food stability nationwide.
Conclusion
In conclusion, 2024 holds promising opportunities for various industries. Travel operators, electric vehicle supply chains, IT companies, drone companies, and agriculture companies are well-positioned to thrive in the coming year. By capitalizing on emerging trends, embracing innovation, and addressing evolving consumer needs, these industries can make significant strides towards success in 2024 and beyond.
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