UPDATE

SMEs to Benefit from Collaboration from More Than 25 MNCs

To date, more than 8,000 companies which include MNCs from over 40 countries have made Malaysia their offshore location for manufacturing and related services operation. These MNCs have contributed much to the development of our economy.

Kuala Lumpur, 15 December 2016 – “To date, more than 8,000 companies which include MNCs from over 40 countries have made Malaysia their offshore location for manufacturing and related services operation. These MNCs have contributed much to the development of our economy. We believe there is more room for collaborations between MNCs and our SMEs to take place. SMEs make up about 97% of the total establishments in the country. Thus, it is imperative for us to develop resilient and sustainable SMEs towards achieving inclusive and balanced growth,” said YB Dato’ Sri Mustapa Mohamed, Minister of International Trade & Industry in his keynote address during the MNCs & SMEs Supply Chain Development and Opportunities Conference held at MITI Tower today.

The Minister also highlighted some examples of MNCs that have been playing an integral role in developing and building the capacity and capability of Malaysian companies. Intel is one of the eight pioneer companies that set their foothold in Malaysia in the 1970s when Malaysia was about to embark on our industrialisation journey. To achieve operational efficiency and effectiveness, Intel outsourced locally via more than 100 Malaysian-based vendors and suppliers. The company instituted development programmes for these local partners to ensure delivery of local content of the highest quality that suit its requirements. Consequentially, such programmes incubated home-grown stars like Globetronics and Inari that are making successful forays into the international markets.

Nestle, a renowned Swiss food and beverage company is another fine example of an MNC that has benefitted the local supply chain. The company has thus far trained about 400 Malaysian companies through the SME Mentoring Programme. Participating SMEs have certainly benefitted from the programme as the company shares its knowledge and experience from Nestle’s good practices in Halal and manufacturing excellence.

Spirit Aerosystems, one of the top investors in Malaysia’s aerospace ecosystem and the world’s largest first-tier aerostructure manufacturer, the company’s operations has also created exponential spill over benefits to the country. Through its vendor programme, Spirit's operations may seem to only benefit its 5 direct suppliers that are located in Melaka, Penang, Kedah and Selangor. However, a closer look would reveal that Spirit's presence in the country has created gains beyond that. Indirectly, Spirit has stimulated the development of local supporting industries by providing diverse business opportunities and 2,700 job opportunities for more than 80 local suppliers in the areas of composites fabrication, metal fabrication, tooling and jigs, machining, logistics and consumables.

“We continue to welcome such MNCs which not only continue to invest in Malaysia, but more importantly, invest in quality projects, incorporating the latest technology and in high value added activities. These companies also provides forward-and-backward linkages, transfer of new technologies and local sourcing – creating quality jobs and developing the overall supply chain,” said the Minister.

This inaugural conference that brought together more than 400 participants, is a collaborative effort by MITI and its nine agencies with the Malaysian Investment Development Authority (MIDA) as the lead organiser of the event. It featured three plenary sessions focusing on the Electrical & Electronics, Aerospace, and Food & Beverages industries, all of which have an established presence of a strong supporting ecosystem in Malaysia. Business meetings with 25 MNCs were also arranged. The meetings provided immense opportunities for deeper commercial collaboration between large and small companies across the board. Participating anchor companies include Intel, Jabil, Nestle, Infineon Celestica, Shimadzu and Nippon Electric Glass.


For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3627 | Email: tajudin[at]mida[dot]gov[dot]my

Posted on : 15 December 2016
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Last Updated : Wednesday 23rd May 2018