10 August, Kuala Lumpur – Malaysia is now riding on an ecosystem approach to attract investments. The country is also leveraging on the ecosystem not just within Malaysia but also the competitive advantages of other ASEAN member states to create more vibrant and accessible investment opportunities to investors.
ASEAN provides an effective platform for investors to utilise and maximise its value chain. The varying levels of economic development in ASEAN coupled with each country’s industry specialisation allow greater complementation among local and multinational companies (MNCs) and locational complementation between member countries. Market-seeking and efficiency-seeking foreign direct investments (FDIs) may leverage on these complementation and increase their involvement in the regional supply chain.
The practice of finding another ASEAN country to complement current operations has led ASEAN-based investors to deepen their engagements with the region. Increasingly, MNCs in ASEAN are adopting production strategies that involve horizontal and vertical multi-plant operations in two or more ASEAN countries for strategic and economic reasons. The ASEAN production network is used as part of the companies' regional value chain that is within integrated business arrangements and linked with different functions and operations such as marketing, research and development, manufacturing.
Global players in various industries are present in ASEAN. Many of them are expanding and seeing the emerging opportunities and potential from the ASEAN integration. A fine example of the complementarity among the ASEAN member countries is Intel’s operations in Malaysia, Singapore and Vietnam. Intel’s presence in the ASEAN region started with its establishment in Malaysia in 1972. Its 3 entities in Malaysia namely Intel Microelectronics, Intel Technology and Intel Products are mainly involved in upstream E&E manufacturing and R&D activities. In Singapore, Intel focuses on providing sales and support at the OEM, developer and end-user levels. Meanwhile in Vietnam, Intel established business support services and undertakes test and assembly activities.
Taking advantage of this on-going trend, the Malaysian Investment Development Authority (MIDA) together with the Ministry of International Trade and Industry (MITI) and the Malaysia External Trade Development Corporation (MATRADE) organised an Intra-ASEAN Investment Forum today at the MITI Tower.
The Forum, held in conjunction with ASEAN 50th Anniversary, was graced by YB Dato’ Sri Mustapa Mohamed, Minister of MITI. It was also well participated by over 400 delegates from the business communities of various sectors.
The event featured discussions on ‘Opportunities and Challenges of Investing in ASEAN’, that was moderated by Tan Sri Dr. Mohd Munir Majid, Chairman of ASEAN-Business Advisory Council. The panelists present were Mr Juergen Keitel, Group Chief Global Affairs & Development Officer of Air Asia, Mr. Cheong Ho Kuan, Chairman of Gamuda Land Vietnam, Mr. Pratan Jongpun, President & CEO of Charoen Pokphand Malaysia, and Briand Greer, President of Honeywell ASEAN.All four representatives are from exemplary companies that have made Malaysia their base to reap the benefits of the ASEAN ecosystem.
Charoen Pokphand (CP), a Thailand-based company which incorporated its Malaysian entity in 1974, aims to develop CP Group Malaysia as the World Halal Hub for the CP food business with the main target of exporting CP products to other Muslim countries. "CP group started our business in Malaysia in 1972. Today, our business in Malaysia is mainly focused on livestock and food production. With more than 3,000 employees, we aim to achieve our vision as the “world halal hub in food business”. We see Malaysia as a good potential investment location with a lot of opportunities especially in the agricultural industry for local markets as well as exports worldwide. We are adopting CP’s value of “Three Benefits toward Sustainability’ whereby in every country that we invest, our priority is to bring benefit to the country and to its people, while benefit to our company comes last," said Mr Pratan Jongpun.
Honeywell, a US-based company, currently has 6 manufacturing sites in the ASEAN region, namely 3 in Malaysia, 1 in Thailand and 2 in Indonesia. The company also has 17 sales and services offices in various ASEAN countries. Their presence has provided about 3,500 jobs in the region. Honeywell was the first global company to join Malaysia’s Principal Hub initiative. “Honeywell is committed to growing in ASEAN, and has chosen KL as our HQ for many reasons including our ability to work in close partnership with MIDA, Invest KL, other GLCs and the Ministries. We have 450 people in our technology-connected new office in Bangsar South and expect that number to double over the next few years as we evolve into a software-industrial global MNC with a local mindset, focused on industry 4.0 connected technologies across our vast portfolio of products in the aerospace, O&G, home, building and factory automation solutions, industrial safety, and mobility device markets,” said Mr Briand Greer.
Air Asia, which is proudly recognised to be a truly ASEAN airline, has established operations based in Malaysia, Indonesia, Thailand and the Philippines, as well as India and Japan. Since starting operations in 2001, AirAsia has carried more than 400 million guests and grown its fleet from just two aircraft to over 200.
Gamuda Land is the property arm of Gamuda Berhad, the leading engineering, construction and infrastructure group in Malaysia and one of Asia’s premier companies. Since 1995, Gamuda Land has been steadfastly building up a proven track record of delivering innovative developments and creating holistic, sustainable township communities. This is evident in its many award-winning developments that dot Malaysia’s landscape as well as Vietnam.
For more information, please contact:
En. Nelson Samuel Wilson
Director, Foreign Investment Promotion Division, MIDA
Tel.: 03-2267 3787 | Email: firstname.lastname@example.org