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MIDA Embarks on a Digital Transformation Initiative to Re-Engineer its Business Processes and Functions: MIDA’s InvestMalaysia Portal Goes Live

Kuala Lumpur, 29 March 2021 – The Malaysian Investment Development Authority (MIDA)’s digital transformation initiative or better known as InvestMalaysia Portal, an online application submission portal, is now open to public.

“As Malaysia is adapting to this new normal, MIDA’s role is more crucial than ever to help businesses thrive and create a better future for our country. The launching of InvestMalaysia Portal will help us meet investors’ expectations through optimised process automation and seamless data capturing and analysis,” said YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI).

“We can expect a more efficient evaluation, an automated approval process and easier information sharing at a single entry point. We will also get live investment updates, real-time visibility of investment projects, undertake more informed decision-making, and real-time reporting. In short, this centralised Data Warehouse will allow us to make faster and more accurate analysis through automated dashboards. This initiative will enable us to enhance KPI monitoring functions in meeting the Client Charter,” added the Senior Minister.

Operational since 26 March 2021, the portal focuses to transform MIDA’s core business functions towards improved efficiency and productivity by embracing an integrated technology system to expedite the application and approval process and further allow companies to speed-up project implementation.

As to date, the digital platform offers 10 modules for online application submission and serves as a single entry point for the stakeholders via investmalaysia.mida.gov.my microsite. Among the modules available include the enhanced Manufacturing Licence (e-ML), Exemption Letter from ML, Enhanced Incentive (e-Incentive), Expatriate Posts and Representative Office/Regional Office (RE/RO), Import Duty/Sales Tax Exemption (JPC) and MIDA Confirmation Letter (SPM) as well as Domestic Sales.

To continuously improve and ensure the systems perform at optimum levels, MIDA has set up a dedicated Customer Service Unit known as CSU. The CSU unit comprises a verification team to receive clients’ applications and a specialised team with the investment-related experience to answer customers’ enquiries related to applications, facilitation and project implementations. The establishment of CSU is anticipated to improve the user confidence in the system and provide a better experience to the companies, internal users as well as external agencies.

The InvestMalaysia Portal is a commendable effort in MIDA’s automation journey to cater to the broad spectrum of audience. Through the implementation of an end-to-end automation application process, MIDA aims to aspire shorter processing time-line, improve client charter commitment for investors and complete the digital transformation goal in supporting the industry’s current and future needs.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

MIDA Embarks on a Digital Transformation Initiative to Re-Engineer its Business Processes and Functions: MIDA’s InvestMalaysia Portal Goes Live


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MIDA in collaboration with SOCSO wishes to invite you to join the Industry Career Talk , Listen & Act: Paving Your Way To Industry on 31 March 2021 from 10:00 AM to 11:30 AM. This talk is expected to expose students, graduates and job seekers on skills required and the industry itself.

You will listen from Mr. Asran Rozain, Senior Business HR Manager – Technical & Production Division in Nestlé who will share his thoughts towards the topic and would enable the audience to gain knowledge of the industry’s environment which could assist in career progression. This platform will also provide opportunities for the audience in obtaining information on the vacancies available under Nestle. The Talk will be moderated by Puan Azrina Hashim, Senior Deputy Director, Industry Talent Management & Expatriate Division, MIDA

Who should attend?
Graduates, students and job seekers who are looking for opportunities on the overview of industry as well as skills required for a career progression.

The details of the Industry Career Talk are as follows:

Date   :         31 March 2021

Time   :         10.00 a.m. – 11.30 a.m

Platform        :Online Zoom (Registration https://zoom.us/webinar/register/WN_7O494YRLR5GmgurFESNsyA. Link will be provided through your email address after the registration.

Please be informed that this event is FREE and only who are registered via the link   will be allowed to enter. For more information, please contact [email protected] and [email protected]

Industry Career Talk – MIDA in collaboration with SOCSO


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MIDA, through its InvestMalaysia system will be launching an enhanced online application submission module by 26th March 2021 (Friday) at 9.00 am via https://investmalaysia.mida.gov.my.

Applications that can be submitted using the enhanced online application module are as follows:

  1. Enhanced Manufacturing Licence (e-ML)
  2. Exemption letter from ML
  3. Enhanced Incentive (e-Incentive)
  4. Expatriate Post & RE/RO
  5. Permit (PDA 2)
  6. R&D/IILS/DIILS Status
  7. Domestic Sales
  8. Import Duty / Sales Tax Exemption (JPC) & MIDA Confirmation Letter (SPM)
  9. Enquires/Feedback
  10. Online Technical Support

Kindly be informed,

For further information and clarification, please contact:

Malaysian Investment Development Authority (MIDA)
MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: [email protected]

MIDA Introduces Enhanced Online Application


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“Welcoming Investors, Keeping You Safe”

Kuala Lumpur, 23 March 2021 – Malaysia is welcoming business travellers to Malaysia while keeping everyone safe by introducing a Business Travellers Centre (BTC) at the Kuala Lumpur International Airport (KLIA). The BTC, launched today by the Senior Minister and Minister of International Trade and Industry YB Dato’ Seri Mohamed Azmin Ali, functions to facilitate the entry of foreign business travellers into Malaysia.

Located at Gate C36, Satellite Terminal, KLIA the BTC is now open for short term foreign business travellers planning to carry out their business tasks in the country. The launching of the BTC today also marks a major milestone of the Government’s unwavering mission to revive the economy and to pave the way for economic rebound in 2021.

According to Dato’ Seri Mohamed Azmin Ali, despite the challenges posed by the COVID-19 pandemic, this year will be a promising year for the Malaysian economy as the Government is committed to easing business operations for both local and foreign businesses alike.

“Malaysia has pro-business and pragmatic policies that support the investment climate in the country. Our supportive business ecosystem is in fact a catalyst to attract investors not only to conduct new business activities, but to also expand and diversify their existing operations here. The BTC is reflective of our responsiveness to the current situation and in finding progressive solutions to ensure we can achieve a balance in protecting lives and livelihoods,” said the Senior Minister.

The BTC is one of the key components of the One Stop Centre (OSC) initiative by the Malaysian Government to ease the movement of Business Travellers – from entry to exit point. The Centre assumes a vital role in ensuring that Malaysia remains an attractive investment destination for foreign businesses.

It provides a seamless support system for short term Business Travellers by providing fast-track services such as below:

i. after disembarkation from the plane to taking the RT-PCR swab test at the dedicated COVID-19 Lab within the BTC, which results can be produced within 3 hours;

ii. after having declared healthy, the business travellers will proceed to the immigration green lane; and

iii. the Government will appoint a liaison officer for the business travellers with a specific business itinerary.

Short Term Business Travellers are business travellers who do not hold any dedicated entry passes and intend to stay in the country for 14 days or less, subject to the approval of the OSC committee and a strict set of Standard Operating Procedures.

To date, the OSC Committee has approved 93 applications for Short Term Business Travellers. The Short Term Business Travellers whose applications were approved are from investing companies with total investments valued at RM15 billion.

Moving forward, the Malaysian Investment Development Authority (MIDA) – an agency under Ministry of International Trade and Industry (MITI) – has identified RM82 billion worth of investments in potential leads and another RM65.9 billion in the pipeline. In realising these potential investments, services by the OSC such as the BTC are critical. The BTC is a collaborative effort between MITI, MIDA, Ministry of Health (MOH), Department of Immigration Malaysia, Malaysia Airports Holdings Berhad (MAHB), and Malaysia Airlines Berhad (MAB).

For more information, please contact the OSC Secretariat at [email protected]

OSC Secretariat (Industry Talent Management and Expatriate Division)
Malaysian Investment Development Authority (MIDA)
Level 20, MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Phone: +603-2267 3633/3431

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Malaysia Introduces a Business Travellers Centre (BTC) at KLIA to Ease Entry of World Business Travellers


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KUALA LUMPUR, 16 March 2021 – A Memorandum of Understanding (MOU) was inked between the Malaysian Investment Development Authority (MIDA) and UMW Corporation Sdn. Bhd., a wholly-owned subsidiary of the UMW Group, to further drive high-value quality investments into the country.

The two parties will capitalise on each other’s capabilities and strengths to explore potential key areas of collaboration to attract investments that would create value to the nation’s economy. These include mobility, aerospace, machinery and equipment, manufacturing and engineering, talent training, research and development as well as industrial land development. The MOU will be a stepping stone to accelerate innovative and high-value industry stakeholders, including the UMW Group, to seize opportunities arising from the technology revolution in the new norm.

The MOU was signed by Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA and Dato’ Ahmad Fuaad Kenali, President and Group CEO of UMW Holdings Berhad, at MIDA Headquarters today.

Dato’ Azman reiterated, “As a vibrant industrialising and services-oriented nation, Malaysia has geared into the next level of development as our economy becomes more diversified to cater to new growth areas. Malaysia’s investment landscape will likely remain challenging in the backdrop of the pandemic, and this timely collaboration with UMW will facilitate our nation’s industrial ecosystem with the much needed infrastructure and new technologies. MIDA trusts that through UMW’s vast industry expertise and network, our local players and technology providers could benefit in the global supply chain network.”

“This partnership will also boost the Government’s on-going efforts to position Malaysia as the pre-eminent preferred investment destination in the region. Support for businesses includes the competitive tax incentives to spur investment activity under the National Economic Recovery Plan (PENJANA) stimulus package; dedicated Project Acceleration and Coordination Unit (PACU) unit to facilitate towards successful implementation of approved projects; as well as the timely One Stop Centre (OSC) initiative to enable business travellers to travel to and continue their work in Malaysia during this pandemic,” added Dato’ Azman.

Dato’ Ahmad Fuaad Kenali expressed, “The UMW Group is embarking on a transformation journey to strengthen our businesses through innovation and technology as key enablers to meet the challenges of the evolving business environment. We are constantly exploring and evaluating relevant opportunities to expand and grow our businesses to meet the anticipated future demand. The collaboration with MIDA will allow both parties to leverage on each other’s strengths to provide capacity building opportunities to attract high-quality investments into Malaysia.”

He further added that a strong collaboration between government agencies and private sectors is paramount in positioning Malaysia as an attractive investment destinatio

In 2020, Malaysia recorded RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors. These investments are expected to create 114,673 new jobs once implemented. MIDA has also identified high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sectors, as negotiations are on-going with companies from various sectors such as automotive, chemical, and advanced electronics to make Malaysia their high-value manufacturing, services and global supply chain hub.

-End-

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About UMW

The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in three core business segments – Automotive, Equipment and Manufacturing & Engineering. The Group operates in 8 countries and has over 6,700 employees.

Moving forward, UMW strives to play a leading role in shaping the future of its industries. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of all its stakeholders.

For media enquiries, please contact:

Manjit Kaur Balkar Singh (Ms)
Phone : +603 2267 3509
Email : [email protected]

S Vikneshwaran (Mr)
Phone : +6019 850 5799
Email : [email protected]

MIDA and UMW Enter Into Strategic Partnership to Support Quality Investments in Malaysia


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The Malaysian Investment Development Authority (MIDA) through its dedicated unit, the Domestic Investment Coordination Platform (DICP), in facilitating local SMEs to develop further, has enabled a Malaysian financial technology (Fintech) start-up, Neurogine Sdn. Bhd. to seal an acquisition deal with Hadigy Limited, an investment holding company based in the UK.

The signing of the Shareholders’ Agreement would allow Hadigy Limited to acquire a 30 per cent stake or 1.929 million ordinary shares of Neurogine Sdn. Bhd., a Malaysian home-grown fintech start-up specialising in digitalisation of mobile banking, mobile payment and digital asset solutions.

The signing ceremony between Mr. Owen Chen Chee Onn, Chief Executive Officer (CEO) of Neurogine Sdn. Bhd. and Mr. Hari Iyer, Executive Director of Hadigy Limited was held virtually between Kuala Lumpur and London, witnessed by the CEO of MIDA, Dato’ Azman Mahmud at MIDA HQ.

“Among the major challenges for SMEs and start-ups to scale up include limited access to funding. MIDA has taken a proactive approach through DICP in supporting local companies, SMEs and start-ups in addressing the funding gap. The presence of foreign funders such as Hadigy Limited in this space would certainly help in accelerating the adoption of technology and stimulate the growth of fintech services in Malaysia,” said Dato’ Azman Mahmud.

Dato’ Azman Mahmud shared that in the wake of COVID-19 pandemic, the local technology segments of e-commerce, fintech and medical technology would be able to entice foreign equity or venture capital investments. These sectors, which provide remote solutions by minimising and eliminating physical contacts, have emerged stronger, driven by the renewed demands from industry users in observing the SOPs of COVID-19 as recommended by the World Health Organisation (WHO).

MIDA reckons fintech is poised as a growth driver in Malaysia in 2021 and beyond; and the country is ready to take advantage of fintech innovation. The strong support and initiatives by the Government for digital economy, supported by the growing middle class with 90.1 per cent of households having access to the Internet and 98.2 per cent access to mobile phones* are indications of the flourishing digital economy.
(*Source: DSOM report on ICT use and access by individuals and households-2019)

In line with the national investment aspiration to increase economic complexity and build Malaysian conglomerates, the Government, through MIDA and its DICP unit is committed in connecting Malaysian start-ups with international venture capital firms. The unit will further facilitate a sustainable growth path and a vibrant ecosystem for high-profile start-ups to thrive and flourish.


About MIDA
MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, Linkedin and Youtube channel.

Media contact:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | Tel.: +603 2267 3509

MIDA Bridges Malaysian Fintech Start-up and UK Investment Firm


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“Welcoming Investors, Keeping You Safe”

Kuala Lumpur, 3 March 2021 – The Malaysian government is very ‘pro-business’ and welcomes the entry of business travellers to carry out business operations amid the pandemic. In this regard, Malaysia’s Safe Travel portal which contains information and advisory services to facilitate business travellers’ entry into Malaysia is fully operational effective 3 March 2021. Both Short and Long Term Business Travellers may apply for entry permission through the dedicated portal at URL: https://safetravel.mida.gov.my. Short Term Business Travellers are required to submit the online application 14 days in advance of planned travel.

The portal is a critical component of the One Stop Centre (OSC) initiative that has been set up by the Malaysian Government effective 2 October 2020 to ease the movement of Business Travellers by expediting their entry to do business in Malaysia. The Centre assumes a vital role in ensuring that Malaysia remains steady on economic recovery and growth; while balancing public health and livelihoods, and strengthen Malaysia’s position as a competitive and preferred investment destination in Asia.

The One Stop Centre is represented by the Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), Ministry of Health (MOH) and Immigration Department of Malaysia (IMI) to ensure the legitimacy and health status of business travellers before they enter into Malaysia. This initiative is also a joint collaboration between MIDA, Ministry of Foreign Affairs (Wisma Putra), Malaysia Airports Holdings Berhad (MAHB), Malaysia Airlines Berhad (MAB) and Talent Corporation Malaysia Berhad (TalentCorp).

Short Term Business Travellers

Short Term Business Travellers are business travellers who are not holding any passes, and intend to stay in the country for 14 days or less. They may be considered for exemption from mandatory quarantine subject to the approval of the OSC Committee and adherence to strict Standard Operating Procedures. Short Term Business Travellers are categorised as follows:

  1. Potential investors seeking to do business in Malaysia
  2. Existing investors, namely business owners, board members, executives and associates of companies in Malaysia (without Employment Pass)
  3. Business customers for product qualification and validation before commercial production

Technical experts for ad-hoc emergency cases to serve single or multiple customers across Malaysia

Business Travellers from the above four (4) categories may also apply for Social Visit Pass under Long Term Business Travellers, should they plan to stay for more than 14 days in the country.

Long Term Business Travellers

Long Term Business Travellers are business travellers who hold valid passes and intend to stay in the country for more than 14 days. They will be subject to mandatory quarantine as per the Ministry of Health’s (MOH) guideline, Malaysia. The Long Term Business Travellers are categorised as follows:

  1. New/Existing expatriates stranded abroad, namely active holders of Employment Pass (EP) and Resident Pass-Talent (RP-T).
  2. New/Existing foreign technical experts stranded abroad with Professional Visit Pass (PVP) to serve multiple customers across Malaysia.
  3. Frequent foreign business travellers (Exit & Return), including Regional Establishments (RE), Regional Operations (RO) and Principal Hubs (PH) representatives.
  4. Permanent Resident (PR) Pass Holders.
  5. Malaysia My 2nd Home (MM2H) Social Visit Pass Holders.
  6. Frequent Malaysian business travellers (Exit & Return).
  7. Social Visit Pass Holders.

Business Travellers must obtain relevant visas (if applicable) from the respective Malaysian Embassy or High Commission/ Consulate General Offices abroad before their departure to Malaysia.

For more information, please contact the OSC Secretariat at [email protected].

OSC Secretariat (Industry Talent Management and Expatriate Division)
Malaysian Investment Development Authority (MIDA)
Level 20, MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Phone: +603-2267 3633/3431

*****

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

Media Contact:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Malaysia’s Safe Travel Portal For Business Travellers Goes Live


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Kuala Lumpur, 2 March 2021 — YAB Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia, received a courtesy call from Nine Dragons Paper (Holdings) Limited led by its Chairlady, Madam Cheung Yan, at his office in Putrajaya today. The meeting was also attended by YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI); YBhg. Dato’ Azman Mahmud, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) and Mr. Zhang Cheng Fei, Deputy CEO of Nine Dragons Paper.

In welcoming the Group’s latest overseas venture into Malaysia, YAB Tan Sri Muhyiddin acknowledged that, “As of December 2020, a total of 572 manufacturing projects with China interest with investments of RM78.61 billion have been approved by MIDA. Nine Dragons Paper (Holdings) Limited and its subsidiaries are among the major paper and paperboard producers in Asia, engaging in the manufacturing of containerboard products, including linerboard, high performance corrugating medium, coated duplex board and carton box.”

“The Company is listed on the Hong Kong Stock Exchange’s main board and currently ranked first in the China Fortune 500 list under the sector of paper, printing and packaging companies. The Group owns facilities in China, Vietnam and the United States with an annual production capacity of more than 18.4 million tonnes and valued at more than 60 billion Renminbi (RMB). The Group also boasts of a total workforce of approximately 19,000 people. We are confident that Nine Dragons Paper being a China Fortune 500 company will be an endorsement for Malaysia as a preferred investment destination.” added YAB Prime Minister.

The Group’s investments in Malaysia consists of two (2) manufacturing facilities, namely ND Paper (Malaysia) Sdn. Bhd. in Bentong, Pahang involving the acquisition of an existing pulp and paper mill with total investment value of RM1.2 billion; and ND Paper Malaysia (Selangor) Sdn. Bhd. in Banting, Selangor with investment value of RM4.2 billion that will focus on test liner, kraft liner, corrugated medium paper, paper and pulp. These projects will create a total of 2,180 job opportunities of which, nearly 90 per cent will be Malaysians. The project in Banting, Selangor is expected to be in operation by 2022.

Both factories will be fully automated and equipped with Industry 4.0 technology such as system integration, Internet of Things (IoT), big data analytic and cloud computing from Europe and China.

Chairlady Cheung Yan remarked, “The investment environment in Malaysia is attractive. The country’s strategic location and infrastructure; established local supply chains that are well-integrated into the global value chain as well as the strength of its skilled talentpool offer an undeniable competitive advantage to our business. Moreover, Malaysia’s business-friendly policies such as its latest initiative of the One Stop Centre (OSC) for Business Travellers managed by MIDA to ease travel for businesses further strengthened our confidence in investing here. I am very grateful to make this investment decision based on these fundamentals. We believe governments and enterprises need to mutually support and collaborate with each other. We are ready to be part of Malaysia’s diverse industry.”

YAB PM reiterated that the Malaysian Government’s policy is always pro-business and very supportive and ready to offer attractive incentives to investors. To ensure Malaysia remains steady on the path of economic recovery and growth, the Government, through MIDA set up the OSC effective 2 October 2020. This initiative eases the movement of Short Term and Long Term Business Travellers by expediting their entry to do business in Malaysia through a dedicated committee represented by Ministry of International Trade and Industry (MITI), MIDA, Ministry of Health (MOH) and Immigration Department of Malaysia (IMI). This committee meets daily to ensure the legitimacy and health status of business travellers before they enter into Malaysia. Decisions are made within three working days for each applicant upon receiving complete information.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About Nine Dragons Paper

Founded in 1995, Nine Dragons Paper has now become one of the leading paper manufacturing groups in the world after more than 20 years’ efforts in business development and efficient management, as well as continuous support from all of its business associates. The Group primarily produce linerboard, high performance corrugating medium and coated duplex board. It also produces printing and writing paper, specialty paper, pulp, high performance corrugated cardboard and high performance carton boxes. Nine Dragons Paper (Holdings) Limited was listed on the Main Board of the Hong Kong Stock Exchange in 2006.

Media Contacts:

MIDA
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Nine Dragons Paper
Isabel Kow (Ms)
Email: [email protected] | DL: +6012 313 0590

Malaysia Welcomes the Largest Paperboard Producer in Asia – Nine Dragons Paper to Invest RM5.4 Billion in Malaysia


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Manufacturing Sector Takes the Lead with an Increase of 10.3 per cent in Approved Investments

Kuala Lumpur, 2 March 2021 – The global economic environment in 2020 was very challenging, as a result of the COVID-19 pandemic, which had its contagion effects on major economies throughout the world. Despite the challenges, the Ministry of International Trade and Industry (MITI) through the Malaysian Investment Development Authority (MIDA) is committed to ensuring that Malaysia continues to be positioned as an investor-friendly location for long term growth of both foreign and domestic businesses.

“Malaysia recorded a total of RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors in 2020. These investments are expected to create 114,673 new jobs in various sectors of the economy once implemented,” announced YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of MITI.

In contrast, a total of 5,287 projects with investments of RM211.4 billion were approved in 2019. This decline was weighed by the services and primary sectors which were directly impacted by declines in global demands due to the pandemic and the Movement Control Order (MCO) implementation.

In 2020, domestic direct investments (DDI) accounted for the bulk of the total approved investments with a contribution of 60.9 per cent (RM99.8 billion), while foreign direct investments (FDI) made up the remaining RM64.2 billion (39.1%).

The manufacturing sector led the way for total investments approved in 2020, recording RM91.3 billion, followed by the services sector RM66.7 billion and the primary sector with RM6.0 billion.

The People’s Republic of China (RM18.1 billion), Singapore (RM10.0 billion) and the Netherlands (RM7.0 billion) were the top three (3) FDI sources from overall economic sectors in Malaysia, accounting for more than half (54.8%) of the total approved FDI for the year. Selangor (RM38.7 billion) recorded the highest investments approved last year, followed by Sabah (RM21.0 billion), Sarawak (RM19.6 billion), Wilayah Persekutuan Kuala Lumpur (RM17.1 billion) and Pulau Pinang (RM16.0 billion). These five states alone contributed more than 60 per cent of the total approved investments for 2020.

Manufacturing Takes the Lead

The manufacturing sector has the most significant multiplier effect on the nation’s activities and growth; it will continue to be the mainstay of the economy. This includes forward and backward linkages, the development of cluster industries, the transfer of new technologies, and skills development, to name a few.

Malaysia’s manufacturing sector recorded approved investments of RM91.3 billion for 2020, an increase of 10.3 per cent from 2019. The number of manufacturing projects approved also increased by 6.2 per cent from 988 projects in 2019 to 1,049 projects in 2020.

When implemented, these approved manufacturing projects will create new jobs for more than 80,000 people. Of these, 35.8 per cent are in the managerial, technical and supervisory (MTS) positions, including engineers, plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

FDI accounted for 62 per cent (RM56.6 billion) of total approved investments in the manufacturing sector, while domestic investments constituted the remaining 38 per cent (RM34.7 billion). It is important to note that despite the challenging times, DDI surged by 22.6 per cent while FDI increased by 3.9 per cent compared to 2019.

The People’s Republic of China was the top investor in the manufacturing sector in Malaysia, contributing RM17.8 billion of the total foreign investments approved in the sector. The People’s Republic of China was also the largest source of foreign investments in the manufacturing sector for five consecutive years. Other major sources of FDI include Singapore (RM8.8 billion), the Netherlands (RM6.5 billion), USA (RM3.7 billion), Hong Kong SAR (RM2.9 billion), Switzerland (RM2.8 billion), Thailand (RM1.9 billion), Japan (RM1.7 billion) and Republic of Korea (RM1.4 billion).

Selangor (RM18.4 billion) was the largest recipient of investments in the manufacturing sector for 2020, followed by Sarawak (RM15.7 billion), Pulau Pinang (RM14.1 billion), Sabah (RM12.0 billion) and Johor (RM6.8 billion). These five states constituted 73.4 per cent of total approved investments in the sector last year.

“Against the backdrop of the challenges due to the pandemic, new project investments, accounting for 66.9 per cent of the total manufacturing projects approved, were successfully secured in 2020. This is a testament to MITI and MIDA’s efforts to ensure business continuity and investors’ friendly policies are in place to enable investors to have the confidence to establish new operations in the country,” said YB Dato’ Seri Azmin.

“Our team has also tenaciously worked to ensure projects approved are implemented smoothly. This can be seen through the commendable rate of implementation in approved projects. For the period 2016-2020, a total of 4,178 projects were approved, of which 70.0 per cent with investments worth RM197.2 billion have been implemented in the country,” he added.

Moreover, in line with Malaysia’s move towards sophisticated technology industries, capital intensive projects which involve advanced technology and skilled workforce dominated the manufacturing landscape. This is reflected in the increase of capital investment per employee (CIPE) ratio to RM1,138,055 in 2020 from RM1,052,497 in 2019. Furthermore, a total of 101 projects were approved with investments of RM100 million and above.

In terms of top-performing industries in 2020, the electrical and electronics (RM15.6 billion), petroleum products including petrochemicals (RM15.5 billion), basic metal products (RM14.4 billion), paper, printing and publishing (RM7.8 billion), machinery and equipment (RM7.1 billion), chemicals and chemical products (RM6.3 billion), rubber products (RM4.3 billion) as well as transport technology (RM3.9 billion) contributed nearly 90 per cent of the total approved investments in the manufacturing sector last year.

“It is noteworthy that investments in the three catalytic sub-sectors namely, electrical and electronics, machinery and equipment and chemical, and two high growth areas – aerospace and medical devices outlined within the Eleventh Malaysia Plan (RMK-11) constituted more than one third (38.6%) of the total approved investments on the manufacturing sector with investments valued at RM35.2 billion in 2020. As the year 2020 marked the end of the Eleventh Malaysia Plan, the Government is currently finalising the Twelfth Malaysian Plan. This post-2020 blueprint will set the way forward for Malaysia’s development agenda over the next decade. We are optimistic that it will chart the way to further enhance Malaysia’s industrial competitiveness strategies in essential and key industries for sustainable economic transformation to elevate our manufacturing and the services sectors to the next level of sophistication and complexity in the new normal post COVID-19 and beyond,” remarked YB Dato’ Seri Azmin.

Notable projects that were approved last year consist of multinational corporations in the high-end and high-technology industries that are newly establishing their operations in Malaysia. This includes Dexcom, a US company and leader in continuous glucose monitoring system will be producing their niche offerings in Pulau Pinang; where else Switzerland-based electrical measurement company, LEM will set up its new production plant in Malaysia to meet the growing demand of its customers in the industrial and automotive sectors. Chinese-owned LSChem Industry will produce a variety of speciality oleochemicals in Tanjung Langsat Industrial Park, Johor Bahru. LSChem Industry’s project is expected to be catalytic to roll out the biodiesel initiatives in Malaysia, which is in line with the Government’s goal to increase the usage of biodiesel. Singapore-owned CytoMed Therapeutics (Malaysia) will also invest in the country to undertake stem cell research and therapy.

Existing MNCs also continue to undertake major reinvestments into high-end products and activities in Malaysia, illustrating Malaysia’s on-going value proposition to investors. Nippon Electric Glass (NEG), a leading Japanese manufacturer of speciality glass that had established their Malaysian operations since 1992 looks to expand their production capacity of glass tubing for pharmaceutical use in the country given the demand for its products following the COVID-19 vaccine roll-out. Additionally, US-based Bruker will be expanding its investments in Pulau Pinang to manufacture high-tech analytical scientific instruments such as optical and stylus profilometers, tribometers, X-ray diffraction tools, X-ray fluorescence instrumentation, optical emissions spectrometers and combustion gas analysers.   Local players such as Amerix Metal Machining Technology have also seized the opportunity to expand and diversify their operation last year, further enhancing Malaysia’s supporting industry network capabilities. The Company’s expansion project looks to adopt a sophisticated high precision manufacturing concept in Computer Integrated Manufacturing (CIM) and process tracking model in customised Enhanced Resource Planning (ERP) system to produce automation electro-mechanical servo reel to reel moulding systems for the back-end semiconductor industry.

Continuous Investments for Services

“In 2020, Malaysia’s proposition as a hub for business and investment for the services sector attracted a total of RM66.7 billion in approved investments through 3,527 approved projects, accounting for the 40.7 per cent of the total approved investments in the economy. These approved services projects are expected to create 33,652 jobs to the economy,” said YB Senior Minister and Minister of MITI.

DDI dominated the total approved investments in the services sector, contributing RM60.2 billion (90.3%), where else FDI represented the remaining RM6.5 billion.

The majority of the main services sub-sectors showed a significant decline in approved investments except for MSC status projects and other services such as BioNexus status and software developments. The top five (5) contributors of approved investments in the services sector were real estate (RM31.2 billion), utilities (RM10.8 billion), support services (RM5.2 billion), telecommunications (RM5.2 billion) and MSC status projects (RM3.9 billion).

Under the purview of MIDA, the support services industry covered sub-sectors such as integrated logistics, research and development, green technology, integrated circuit design, oil and gas services and licensed warehouse.

“Last year, notable services projects approved include Redsol, a new joint venture large scale solar project between Malaysia and Netherlands in Perak; as well as the expansion of the Japanese firm, Fumakilla Malaysia’s R&D undertaking in developing insecticide products and other household products in the country as part as its efforts to centralise its R&D Centre to support its manufacturing activities carried out in Malaysia and Asia,” added YB Dato’ Seri Azmin.

Mining Takes the Lead in the Primary Sector

The primary sector registered approved investments of RM6.0 billion in 2020, compared to RM7.0 billion in 2019. The mining sub-sector led the bulk of investments in the primary sector, contributing 99.5 per cent of total investments approved in the sector. The rest of the primary sector investments comprise the plantation and commodities subsector and the agriculture subsector, which registered investments of RM27 million and RM2.4 million, respectively.

Bracing for a Better Tomorrow

Malaysia continues to be a competitive investment destination despite the current uncertainties, proven by its rankings in the global economic scene. The DHL Global Connectedness Index (GCI) 2020 positioned Malaysia second (2nd) among Asia Pacific countries and sixteenth (16th) out of 169 countries for trade connectivity. A joint study by KPMG and The Manufacturing Institute in the US entitled ‘Cost of Manufacturing Operations around the Globe’ also ranked Malaysia fourth (4th) among 17 economies in an assessment comparing the economy’s competitiveness as a manufacturing hub; positioning us ahead of countries in Asia such as China, Japan, Vietnam and India. Furthermore, Malaysia is ranked 12th in the World Bank’s Doing Business 2020 and 27th in the IMD World Competitiveness 2020.

“These rankings by reputable international agencies attests that on-going reform initiatives are on the right track to further enhance Malaysia’s competitiveness, productivity and governance which will help promote investments and accelerate national economic development,” said YB Dato’ Seri Azmin.

However, at the end of the third quarter 2020, the country saw a third wave of COVID-19 infections. This led the Government to implement the conditional movement control order (CMCO), to strike a balance between preserving lives and livelihoods; curbing the spread of the virus while allowing economic activities to open. The Government was forced to impose further restrictions via the introduction of MCO 2.0 due to the unabated virus surge. The implementation of MCO 2.0 has understandably raised the question of whether Malaysia would still be able to maintain the speed of economic recovery.

“The Government, through MIDA, continued to be at the forefront to entice more high-value investments in the areas of technology and innovation to position Malaysia as an alternative supply chain hub in Asia. Investors will undeniably derive value by taping on Malaysia’s well-established local supporting industry network and talented workforce to undertake high-tech products manufacturing and high value-added services to serve their clients in the region, in the present and the future,” added YB Dato’ Seri Mohamed Azmin Ali.

In efforts to increase the ease of doing business for investors in Malaysia, MIDA’s efforts has been intensified to re-engineer its business processes to raise the efficiency of the organisation’s various functions. Among the initiatives that have been implemented include the [email protected] or the Project Acceleration and Coordination Unit to provide end-to-end facilitation for all projects approved to enable the timely implementation of investments in the country; as well as online modules, namely e-Manufacturing Licence (e-ML), e-Incentive and JPC Online Application to accelerate the necessary approvals for manufacturing licences, incentives and exemption of customs duties to expedite the execution of projects.

Additionally, despite the on-going international border closures and strict governmental standard operating procedures (SOPs) in place worldwide to contain the spread of COVID-19, MIDA continues to be responsive in providing advice and support to existing and potential investors through its established footprint of 20 overseas and 12 regional offices. It has been at the forefront to entice investments through innovative and aggressive investment promotion activities. A One-Stop-Centre (OSC) has also been established at MIDA to evaluate eligible business travellers’ applications to enter Malaysia for trade and investment purposes.

As at December 2020, MIDA has RM65.9 billion worth of potential investments being actively evaluated. These projects, once approved, are expected to be implemented within the year 2021 to 2022. MIDA has also identified 240 high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion. These include on-going negotiations with companies from various sectors such as automotive, chemical, and advanced electronics to make Malaysia their high-value manufacturing, services and global supply chain hub.

“The Government’s newly unveiling of Malaysia Digital Economy Blueprint (MyDigital) will also further accelerate Malaysia’s progress to becoming a technologically-advanced economy. The 10-year roadmap will lay the foundations for the country’s transformation towards an advanced digital economy and guide MITI and MIDA in our efforts to continue attracting high-value investments of the future,” said YB Dato’ Seri Mohamed Azmin Ali. While the year 2020 was a challenging year in many sense of the word, Malaysia is steadfast in its fundamentals as the pre-eminent preferred investment destination in the region. As we forge ahead in the new year on the path of economic revitalisation coupled with the rollout of the national vaccination programme, the Government remains committed to prioritising the needs of our people and businesses.

*****

About MIDA

MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, Linkedin and Youtube channel.

Media Contact:

Manjit Kaur Balkar Singh (Ms)

DL: +603-2267 3509 | Email: [email protected]

Malaysia Records RM164 Billion of Total Approved Investments In 2020 Amid Global Pandemic


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MIDA Annual Media Conference 2018

MEDIA RELEASE

APPROVED INVESTMENTS IN 2017 CREATES 139,520 ADDITIONAL
JOB OPPORTUNITIES IN MALAYSIA

1. In 2017, Malaysia recorded approved investments of RM197.1 billion in the manufacturing, services and primary sectors. These are from 5,466 projects that will generate an additional 139,520 job opportunities for the country. Domestic direct investments (DDI) accounted for the bulk of it or 72.2% at RM142.4 billion, while foreign direct investments (FDI) contributed RM54.7 billion, making up 27.8% of the total.

2. The overall investment performance moderated by 7.4%. This was due to lower approved investments recorded in the services sector which saw a decline of 17.2%, from RM146.2 billion in 2016 to RM121.1 billion in 2017. The decline was affected by the real estate subsector which saw a 28.7% drop in value to RM45.7 billion despite a 43.1% increase in the number of projects approved, reflecting a change in investment strategies towards smaller sized projects in this subsector.

3. Nonetheless, the overall investment performance was bolstered by the manufacturing and primary sectors which recorded increases of 8.9% and 51.2% respectively. The qualitative aspects of investments attracted into Malaysia in 2017 were evident on many fronts, such as job and business opportunities as well as the transfer of technology.

4. More and more global companies are making Malaysia their hub. This includes Osram Opto Semiconductors’ world’s most advanced LED chip factory, B.Braun’s Global Center of Excellence for Intravenous Access products which comprises production and R&D functions, Peugeot’s ASEAN manufacturing hub, IKEA’s Regional Distribution and Supply Chain Centre for ASEAN, Honeywell’s ASEAN Regional Headquarters and Schlumberger which made Malaysia their largest shared services hub in the group in addition to their procurement service centre, human resource hub, financial hub and two regional hubs.

Manufacturing Sector

5. The manufacturing sector recorded total approved investments of RM63.7 billion, increasing 8.9% from RM58.5 billion in 2016.

Investment by Industry

6. The petroleum products including petrochemicals and natural gas recorded the highest total approved investments of RM26 billion, followed by electronics & electrical (E&E) products (RM9.7 billion), non-metallic mineral products (RM7.7 billion), transport equipment (RM4.8 billion), chemicals and chemical products (RM4.1 billion), machinery & equipment (RM2.2 billion), food manufacturing (RM2.1 billion) and scientific & measuring equipment (RM2.0 billion). These eight industries accounted for RM58.6 billion or 92% of total investments approved in this sector.

7. The E&E industry in Malaysia has evolved over the years. Starting with only a few global companies in the 1970s that were undertaking labour intensive, low technology and low value added activities, the industry now has a full range of semiconductor, solar and LED clusters with many companies undertaking higher value added products and front-end activities including design, research and development. For example, Intel which was only undertaking assembly and test activities in the past is currently engaged with a full integration of assembly & test including R&D activities with a complete internet of things (IoT) system solution. Other long term E&E global investors include Osram, Infineon, Motorola and Panasonic.

8. The strengthening of the E&E ecosystem has spilled over to the development of the local industry players. This includes companies that undertake wafer fabrication activities such as SilTerra, those involved in outsourced semiconductor assembly and test (OSAT) activities such as Inari, Unisem and Carsem, automated test equipment manufacturers such as ViTrox and VisDynamics, electronics manufacturing service providers such as K-One Technology, Nationgate and SMT Technologies, engineering service providers such as Xperior as well as those in IC Design activities such as Infinecs and Oppstar Technology.

Domestic vs Foreign

9. Domestic investments were dominant, contributing 66.2% of the total investment approved, while the balance came from FDI. Most of the domestic investments were in new projects (RM31.8 billion) while RM10.3 billion went into expansion or diversification projects.

10. In 2017, MIDA approved another project for the Pengerang Integrated Complex (PIC), a highly integrated refining and petrochemical complex that is set to highlight Malaysia’s status as a global leader in the petrochemical products industry. It is part of the 22,000 acres Pengerang Integrated Petroleum Complex (PIPC) with current approved investment of USD27.2 billion. Once completed, PIC will provide 4,000 job opportunities. As at January 2018, the PIC project execution progress is on track at 84%.

11. Besides Pengerang, among notable domestic investments approved including those that are majority owned by Malaysians are Petronas Floating LNG1 and Malaysian Refining Company in the petroleum products including petrochemical and natural gas industry, Salutica Allied Solutions and Inari Technology in the E&E industry, Muhibbah Marine Kuantan for the shipbuilding and ship repair segment, SME Aerospace and T7 Kilgour in aerospace, Sokachem in chemicals & chemical products industry, Ibronx and Greatech Integration in the M&E industry, and Upha Pharmaceutical and Duopharma in the pharmaceutical industry.

12. The sector’s biggest foreign investor was People’s Republic of China (PRC), Switzerland, Singapore, the Netherlands and Germany. These five nations jointly accounted for RM12.1 billion or 56% of foreign investments approved in 2017. In 2016, the top foreign investors were PRC, the Netherlands, Germany, UK and Republic of Korea with total investments of RM15.4 billion.

13. Despite China being the top FDI source for two years in a row, the value of investments has dropped by 18.7% from RM4.8 billion in 2016 to RM3.9 billion in 2017. China’s investments have diversified into many industries including the non-metallic mineral products, transport equipment, rubber products and E&E products.

14. Projects with China participation approved as at 2017 include Longi, Xinyi Energy Smart, Xinyi Solar, Jeje Energy Technology, CGPV Industrial Building System, Just Energy Technology and Intco Malaysia. Longi for example has made investments of more than RM1 billion in setting up an integrated solar plant in Sama Jaya Free Industrial Zone. This has created 2,142 job opportunities for Malaysians, whereby 569 is in the managerial, professional and technical category. For CGPV Industrial Building System, as at December 2017, the company has invested more than RM400 million and provided 217 jobs for the production of industrial building system (IBS) components including reinforced concrete, slab, column, beam and wall panels.

15. Overall, foreign investors were more active in expansion and diversification projects in the manufacturing sector, contributing RM13.9 billion or 64.4% of the total foreign investments approved in the manufacturing sector for 2017, while new projects accounted for the rest. Most of these projects involve the production of high-technology, high-value-added goods; a notable step towards achieving Malaysia’s industrial ambitions.

16. Among them include Osram, Robert Bosch, B. Braun, Longi, Visco, AJ Biologics, Verdezyne, Shibata, Fatty Chemical, Altech Chemical, Bruker Malaysia, Sandisk, Infineon, Hotayi, Air Liquide, Hanwha Q Cells, Kato Manufacturing, Sato Malaysia and ASE Electronics Malaysia.

a. For example, Osram Opto Semiconductor continued to expand with the opening of its new state-of-the art semiconductor facility. With this, Malaysia now has the world’s most advanced LED chip factory and a complete LED ecosystem. With this expansion, the company’s total investment is at RM4.2 billion and will provide 7,790 job opportunities by 2020, whereby 73% are for Malaysians.
b. There was also a RM2.6 billion expansion project by Robert Bosch Malaysia to manufacture instrument cluster panels and connectivity modules, adding 194 high-value-added jobs to the country. Malaysia stands to benefit from the company’s efforts for the development of local vendors as well as the export gains, as 100% of its products made in Malaysia will be exported.
c. B. Braun Medical Industries also had an expansion project approved worth RM1.2 billion to manufacture medical devices, pharmaceutical sterile intravenous (IV) solutions, and surgical instruments and implants using automated and state-of-the-art processes and creation of 809 new jobs of which 164 are salaried positions of RM10,000 per month and above.
d. Verdezyne also had an investment approved for the manufacturing of dodecanedioic acid (DDDA) using yeast fermentation technology, creating 75 additional jobs, with some salaried positions of RM10,000 per month or higher. With the company’s first commercial-scale renewable chemicals manufacturing facility, this will add to the advancement of biotechnology in the country, and catalyse the palm industry.

CIPE Ratio

17. The manufacturing projects approved last year were more capital intensive. The capital intensity, measured by capital investment per employee (CIPE) ratio of projects approved within the sector last year recorded a notable increase of 23.7% from the CIPE of RM912,239 in 2016 to RM1,128,742 in 2017. There were 9 projects approved with investments of at least RM1 billion, totalling RM34.7 billion (54.5%) of total investments approved in this sector. As for investments of at least RM100 million, 80 projects were approved with total investments of RM52.4 billion (82.3%) of all investments approved in this sector.

Employment Opportunities Created

18. From the total 687 projects approved, 56,420 job opportunities were created. Of these, 14,155 (25.1%) were in managerial, technical, or supervisory roles, an increase of 21% from 2016. Meanwhile, a total of 9,870 (17.5%) were positions for skilled workers. The E&E industry generated the highest amount of employment opportunities with 10,593 jobs, followed by transport equipment (9,112), and machinery and equipment (6,078).

Investment by State

19. Johor was the highest recipient of approved investments amounting to RM21.9 billion, followed by Pulau Pinang (RM10.8 billion), Sarawak (RM10.5 billion), Selangor (RM5.6 billion) and Melaka (RM4.7 billion). These five states contributed 84% of the total investments approved in 2017. In 2018, MIDA is collaborating with each State Agency in its Invest Series programme to further promote the unique comparative and competitive advantages of the states in the country. So far, MIDA has undertaken 4 sessions covering Perlis, Kedah, Kelantan and Pahang. Each session has been well attended by an average of 100-150 participants which consist of large companies, foreign and local business chambers and associations.

Implemented Investment

20. As at 31 December 2017, 2,920 out of 3,698 manufacturing projects approved during the five-year period of 2013 to 2017 are in production with the rest still under construction or final machinery installation. Total investment in these implemented projects amounted to RM201.4 billion. A further 45 projects with investments of RM6.3 billion have acquired sites for factories, while 575 projects (RM71.9 billion) are in the active planning stage. When these 620 projects are implemented, total additional realised investments in these manufacturing projects will amount to RM78.2 billion.

21. In 2016, from a total of 733 approved projects, 617 projects or 84% have started production. These realised investment have created 47,617 jobs for Malaysia, whereby 22.5% are within the salary above RM3,000. Meanwhile in 2017, despite being just approved within the year, there were already 215 projects in production. These realised investment have created 15,147 jobs for the country. Notably, 31% of these jobs are with a salary above RM3,000. Examples of approved projects in 2016 and 2017 that are already in production, are Sanmina-SCI Systems, BASF Petronas Chemicals, Straits Orthopaedics, Go Automobile Manufacturing, Spirit AeroSystems, Keysight Technologies, Omni Oil Technologies and Press Metal Bintulu.

Services Sector

22. The services sector remained as the largest contributor to the total approved investment contributing 61.4% or RM121.0 billion in 2017. The year-on-year approved investment value for the services sector contracted by 17.2% last year but the number of projects recorded an increase of 7.7% from 4,392 approved projects in 2016 to to 4,731 in 2017. Domestic investment occupied the lion share of the total in the services sector with RM92.2 billion, while foreign investments made up the rest of RM28.8 billion.

23. The real estate subsector made up the highest portion at RM45.7 billion or 37.7%, followed by global establishments (RM14.0 billion or 11.6%), financial services (RM11.8 billion or 9.7%), and distributive trade (RM9.4 billion or 7.8%).

24. Global establishments approved in 2017 accounted for investments of RM14.0 billion and created 2,028 job opportunities for Malaysia. From the 225 global establishment projects, 9 were Principal Hub (PH) projects, bringing the total to 28 PH projects approved since the scheme was introduced in 2015. Notable companies with global establishments in Malaysia include Nestle, Honeywell, Lazada, Huawei, Ikea, Roland, FM Logistics, Pos Malaysia and Integrated Device Technology. These establishments not only bring in business commitments for the long term, but also utilises Malaysia’s banking, financial services and other ancillary services while generating high skilled employment opportunities.

25. In 2017, the approved PH projects were a mixture of both large and small MNCs with committed business spending of RM13.64 billion, utilising ancillary services worth RM1.21 billion. These projects created 569 new high-value employment opportunities with a wide scope for knowledge transfer for Malaysians. Among them are foreign companies from the Netherlands, United Arab Emirates, Germany, Japan and the US operating in key economic sectors such as E&E, commodities and food & beverages.

26. Notable PH projects approved in 2017 include Integrated Device Technology (IDT), a global leader in the semiconductor industry; Roland, a leading Japanese based electronic musical instrument manufacturer; and IKEA, the Dutch-headquartered retail furniture giant. With IDT’s new establishment, Malaysia will become the hub for its Advance Automotive Technology Center, whereby its test operation activities will be shifted from Germany to the country. This will benefit Malaysians in terms of the transfer of cutting edge technology and knowledge. As for Roland, its Principal Hub aims to rationalise the Group’s global supply chain by centralising planning, procurement, logistics, sales and marketing and R&D to achieve synergy and to optimise and improve the Group’s profitability. IKEA’s Regional Distribution and Supply Chain Centre in Pulau Indah, Selangor will serve 12 retail stores in ASEAN, which will increase to 20 stores by 2026.

27. For 2017, positive growth in the services sector was registered for sub-sectors with relatively high value added activities such as healthcare services, transport, hotel & tourism and distributive trade.

a. The healthcare services sub-sector last year jumped 136.1% to RM445.1 million from RM188.5 million approved investments in 2016. Malaysia’s ongoing efforts to maintain high quality healthcare services contributed to a boost in its medical tourism. According to the Malaysian Healthcare Travel Council (MHTC), the country is fast becoming a famous medical tourism destination, mostly for cosmetic surgery, dental and orthopaedic treatments. Among the anchor private healthcare players in Malaysia are KPJ Healthcare Berhad, IHH Healthcare Berhad (Pantai and Gleneagles Hospitals), Ramsay Sime Darby Healthcare and Columbia Asia Malaysia.

b. The transport sub-sector hiked up by 119% in 2017 to RM4.5 billion from RM2.0 billion investments approved in 2016. The aviation sector saw 13 new projects with total investments amounting to RM596.7 million, 1 project in the highway construction and maintenance segment amounting to RM3.7 billion and 2 projects in maritime amounting to RM180.2 million.

c. Malaysia’s increasing popularity as a luxury tourist market has helped position the country’s tourism sector as one of the major contributors to the nation’s economic success. A total of 70 projects worth RM9.2 billion was approved in this sub-sector in 2017. Malaysia has received many accolades in the tourism sector including the 10th Most Visited City in the World by Euromonitor International Report 2017. These achievements underscore the attractiveness and capabilities of the country’s tourism sector.

28. The services sector, as a whole continued to be the largest employer in the economy, having created 82,172 job opportunities in 2017 or 59% of total job opportunities in the manufacturing, services and primary sectors. Distributive trade, MSC status companies, and hotel and tourism generated the bulk or 84% of the total job opportunities in the services sector.

29. Transformation of the services sector is ongoing with an emphasis on shifting towards one that is knowledge-intensive and innovation-focused. For example, in growing the potential of the country’s e-commerce sector, the Government has implemented various initiatives to develop the financial and logistics infrastructure, which forms the backbone of the e-commerce ecosystem. The e-commerce contribution to GDP is expected to grow to 6.4% in 2020. With the introduction of the Digital Free Trade Zone (DTFZ) and Go e-Commerce initiatives to name a few, the contribution of e-commerce to GDP is expected to be higher than the targeted rate.
Primary Sector

30. Last year, the primary sector saw a substantial increase of 51.2% in approved investment from 48 projects worth RM12.4 billion compared to RM8.2 billion from 41 projects in 2016. Investments from domestic sources totalled RM8.1 billion or 65.3% while foreign investments contributed RM4.3 billion or 34.7%. The mining sub-sector led with approved investments of RM11.7 billion in 32 projects, mainly from the oil and gas exploration activities. This is followed by the plantation and commodities sub-sector with investments of RM672 million, and the agriculture sub-sector making up the rest of approved investments

Going Forward

31. As global economic growth is forecast to expand between 3.0% to 3.3%, the overall investment performance in Malaysia is also expected to follow this favourable trend with GDP projected at 5.2% for 2018 and 2019. This will further benefit Malaysia’s domestic economic activities and boost business confidence to invest in the country.

32. Nonetheless, MITI/MIDA is cautiously optimistic about 2018 and continues to intensify efforts at attracting quality investments into the country. The 2017 performance, while moderate, was hard won against significant international competition. Despite the restructuring and reorganisation of companies that have resulted in retrenchments, it is worth noting that the manufacturing, services and primary sectors remain encouraging and there are no lack of opportunities in these sectors. Notably, a large portion of the affected workers in the manufacturing sector have been absorbed by other firms which are expanding in Malaysia, such as Keysight, Inari, HP, Osram and Infineon. New investments that are coming in, as well as the expansion by many established firms in the country, will also provide more job opportunities for Malaysians.

33. As at 31 January 2018, MIDA has 379 manufacturing & manufacturing related services projects with investments totalling RM69.5 billion in the pipeline. These were mainly in machinery & metal products, chemical products, global establishments and support services.

Download  Media Release AMC 2018

Download  Siaran Media AMC2018

Download  Chairman Speech AMC2018

Download  Presentation Slides – Malaysia Investment Performance Report 2017

Download  Presentation Slides – Malaysia Investment Performance Report 2017 – for press

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Posted on : 06 March 2018

Malaysian Investment Performance Report 2017


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