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MIDA Deepens Its Engagement With The Indian Business Community

Indian Entrepreneurs Urged to Leverage on Programmes & Facilities Provided by the Government

22 January 2018, Kuala Lumpur – “Notwithstanding our presence of more than 50 years in charting the industrial development of the country, there is still a lack of awareness on MIDA’s function in assisting and facilitating domestic companies as well as SMEs, especially among the Indian businessmen. Through today’s engagement, we hope to deepen our engagement with the Indian business community, which forms an integral part of local companies in the country,” said YBhg. Datuk N. Rajendran, Deputy Chief Executive Officer (DCEO) of MIDA during the exclusive media session with the Indian press held today.

“The Government has long recognised the capabilities and prospects of local companies in driving the economic growth of the country. For the first nine months of 2017, Malaysia recorded a total of RM113.5 billion worth of approved investments from 3,886 projects in the manufacturing, services and primary sectors. More than 73.5% of the approved investments were from local sources. Thus, we would like to urge more local companies, including those owned/managed by Indian entrepreneurs to come on board by leveraging on the programmes and facilities provided by the Government. Among them include the Domestic Investment Strategic Fund (DISF) that aims to accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries. As at December 2017, a total of 270 projects with investments amounting to RM13 billion have been approved grants totaling RM1.3 billion under this fund,” added Datuk N. Rajendran.

The DCEO of MIDA also commented that Indian entrepreneurs should align their operations with Industry 4.0 by adopting automation and smart manufacturing that will increase productivity and competitiveness as well as reduce dependency on foreign labour. “Throughout 2017, MIDA organised several programmes to create awareness on the Industry 4.0. We will continue to undertake such programmes this year to disseminate information on available facilities to assist local companies in undertaking this venture such as the Accelerated Capital Allowance (ACA) for automation expenditure. For ACA, a total of 71 applications for automated spending allowance incentives have been approved until October 2017.”

MIDA has also established a dedicated SME Investment Desk in its headquarters and all its state offices throughout Malaysia. Malaysian businesses and SMEs should take advantage on this single contact point in MIDA HQ and all its State Offices, to obtain guidance and advice on the Government’s initiatives and facilities in building sustainable business collaborations through supply chain development on the local, regional and global levels.

More than 15 media representatives attended the exclusive media session from various Indian publication companies and online newspapers. The programme is part of MIDA’s continuous efforts to update the Indian entrepreneurs especially on the latest policies and facilities that are available. They are encouraged to follow MIDA’s official website and social media for the latest announcements and updates of facilitation and programmes related to business opportunities at www.mida.gov.my or @OfficialMIDA on Facebook and /OfficialMIDA on Twitter.

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For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Mr. Sashirao Appanah

Assistant Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3664 | Email: [email protected]

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DISC Presentation_22Jan2018

Posted on : 22 January 2018

MIDA Deepens Its Engagement With The Indian Business Community


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8 February 2018, Kuala Lumpur – “Kelantan is one of Malaysia’s vibrant destinations for investments, driven mainly in the services and agriculture sectors. Although the state is not usually associated with large scale industrial enterprises, the manufacturing sector continues to play a significant role in the overall state development, particularly in providing jobs and entrepreneurial opportunities towards increasing the living standards of people in Kelantan,” said Mr. Arham Abd. Rahman, Executive Director of Investment Promotion, Malaysian Investment Development Authority (MIDA) at MIDA Invest Series: “Unfolding States’ Business Potential” held today at its HQ. The event, third-of-its-kind, was a collaboration with the Kelantan State Economic Development Corporation (KSEDC).

As at September 2017, a total of 292 manufacturing projects have been approved in Kelantan with investments worth RM6.48 billion. Majority of these investments or 78% (RM5.04 billion) were from domestic sources, while the rest were from foreign sources. These projects have created over 38,500 job opportunities, mainly in the non-metallic mineral products, electrical & electronic products, wood and wood products, food manufacturing, machinery and equipment and basic metal products.

Notable foreign companies operating in Kelantan include CMNM Mining Group from Singapore, Esquel from Hong Kong, Manakas from Germany and Rohm Wako from Japan. These five companies have invested a total of RM1.1 billion and provided 2,872 jobs for Kelantan. While, our local players include Terang Nusa that manufactures surgical and examination gloves, Ain Medicare in the pharmaceutical industry, and Kompleks Perkayuan Kelantan that produces integrated sawn timber. These 3 local companies contributed total investments of RM336.0 million and provided 3,269 jobs for the state.

To unleash the untapped potential of Kelantan, YB Dato’ Sri Mustapa Mohamed, the Minister of International Trade and Industry (MITI) has established a Special Investment Committee in 2014, consisting of MITI, MIDA, ECERDC and State Government agencies, to further promote investments and enhance the required enablers in the state. This includes the specific development projects such as the Tok Bali Supply Base (TBSB) and Pasir Mas Halal Industrial Park (PMHP).

“MIDA has established a Task Force to facilitate and monitor the development of Tok Bali Supply Base (TBSB) and we have been actively promoting the area as a strategic oil and gas logistics hub. Today, we are pleased to see that this humble fishing port in Pasir Puteh has been transformed into a significant supply base to support offshore activities, in complementing the other supply bases in Kemaman and Labuan,” said Mr. Arham.

“MIDA is also collaborating with the ECERDC and KSEDC to attract more private investors to the Pasir Mas Halal Park (PMHP). Taking advantage of the growing demands for halal products, the Pasir Mas Halal Park concentrates on the production of high-value added additives and ingredients that has numerous applications, from food additives to raw materials for food and beverage industry. The project is expected to attract RM611 million in private investments and create more than 4,200 job opportunities by 2020,” he added.

More than 80 participants attended the event that featured Tuan Haji Mazli Zakuan bin Mohd Noor, Group Deputy Chief Executive Officer (Corporate Affairs) of KSEDC, who provided the latest development and investment opportunities available in Kelantan.

*****

For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment & Supply Chain Coordination Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

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Speech by Mr. Arham Abdul Rahman, Executive Director Investment Promotion – MIDA Invest Series Kelantan

 Slide Presentation by Kelantan State economic Development Corporation

Posted on : 08 February 2018

Kelantan Attracts RM6.48 Billion Of Approved Investments As At September 2017


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Kedah is one of the oldest states in Malaysia and has captivating history behind it. In fact, there is more to this ‘Rice Bowl State’ than just paddy fields. In term of investments, there are 1,142 manufacturing projects implemented in Kedah with total investments of RM51.28 billion as at December 2016. These projects have created over 150,000 job opportunities for the state.

25 January 2018, Kuala Lumpur – “Kedah is one of the oldest states in Malaysia and has captivating history behind it. In fact, there is more to this ‘Rice Bowl State’ than just paddy fields. In term of investments, there are 1,142 manufacturing projects implemented in Kedah with total investments of RM51.28 billion as at December 2016. These projects have created over 150,000 job opportunities for the state,” said Mr. Zabidi Mahbar, Executive Director, Strategic Planning (Manufacturing) of the Malaysian Investment Development Authority (MIDA) in his welcoming remarks at the MIDA Invest Series event held this morning. The event themed, “Unfolding States Business Potential’ took place at MIDA headquarters in collaboration with Invest Kedah.

“Despite the challenging global economic environment, Kedah has persevered by attracting additional approved investments worth RM1.29 billion in the manufacturing sectors from January to September last year, creating another 1,543 job opportunities for the state. These 26 projects were mainly in non-metallic mineral products, transport equipment, E&E, machinery and equipment, rubber products, and fabricated metal products.” he added.

There are 10 industrial parks available in Kedah, including the Kulim High Tech Park (KHTP) that has a strong presence of multinationals from the electrical and electronic industry. Total foreign direct investment in Kulim High Tech Park is currently amounted to RM42.3 billion. Among them include Intel, First Solar, Silterra, Infineon Technologies, Fuji Electrics and Osram. Osram had recently opened its new semiconductor plant in KHTP. With Osram’s state-of-the-art facility, Malaysia now has the world’s most advanced LED chip factory.

Kedah has the advantage of providing a constant supply of talents due to the availability of more than 38 higher learning institutions including universities, colleges and training institutes. Notably, the Kedah Industrial Skills & Management Development Centre collaborates with companies operating in Kedah to provide an industry ready workforce.

The government, through MIDA has established a Domestic Investment Strategic Fund (DISF) to accelerate the shift of Malaysian-owned companies in targeted industries to high value-added, high technology, knowledge-intensive and innovation-based industries. Under DISF, MIDA has approved 270 projects with investments of RM13 billion as at December 2017. For Kedah, a total of RM83.9 billion was granted for 14 manufacturing projects worth RM702.3 million.

In August 2017, YAB Datuk Seri Najib Tun Abdul Razak has launched Blueprint 2016-2025 (Blueprint 2.0) for Northern Corridor Economic Development. The blueprint aims to outline the future directions and strategies to expand growth, reduce regional imbalances and introduces bold measures for the long-term benefit of all by sustaining its growth momentum.

In the blue print, two NCER growth node projects have been identified in Kedah, namely Kedah Rubber City (KRC) and Kedah Science and Technology Park (KSTP). KRC focuses on high-value rubber and rubber based industries, whereas KSTP envisions to be a world-class centre for the promotion and commercialisation of applied scientific research and technology.

“We are optimistic that these projects will be an impetus to attract more quality investments into Kedah, particularly in the targeted sectors. With so much room available for expansion and diversification particularly in new growth areas, we look forward to more companies taking advantage of the established ecosystem and facilities that Kedah has to offer. MIDA’s office in Alor Setar is ever ready to serve the needs of investors on the ground,” said Mr. Zabidi.

MIDA Invest Series is an ongoing initiative undertaken by MIDA since early January 2018 to promote a competitive economy with equitable development among all states in Malaysia. This briefing featured a presentation by Mr. Zafir Annuar bin Ghazali, Senior General Manager of Invest Kedah on investment prospects of Kedah and its latest developments.

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For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Download:

Speech by Mr. Zabidi Mahbar, Executive Director Strategic Planning (Manufacturing) – Kedah Special Briefing

Slide Presentation by InvestKedah

Posted on : 25 January 2018

Over 150,000 Jobs Created from 1,142 Manufacturing Projects Implemented in Kedah


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Norman Process Oils Malaysia Plant Sdn Bhd, a subsidiary of Orgkhim Biochemical Holding from Russia is building a USD50 million (RM200 million) facility at Tanjung Langsat, Pasir Gudang to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds

Johor Bahru, 12 February 2018 – Norman Process Oils Malaysia Plant Sdn Bhd, a subsidiary of Orgkhim Biochemical Holding from Russia is building a USD50 million (RM200 million) facility at Tanjung Langsat, Pasir Gudang to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds.

The Malaysian facility will supply markets in the Asia Pacific region with a particular focus on China as well as other established markets including Malaysia and Singapore. The 70,000 tons per annum unit will produce the company’s TDAE (treated distillate aromatic extract), TRAE (treated residual aromatic extract) and S-RAE (safe RAE, “green” analogue of traditional RAE) products.

The Groundbreaking Ceremony was attended by YB Datuk Tee Siew Kiong, Chairman of Johor State Tourism, Domestic Trade and Consumerism Committee, who represented the Chief Minister of Johor. Also present were Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA), Mr. Nikolay Khodov, CEO of Orgkhim Biochemical Holding and Mr. Aleksandr Volkov, Director, Norman Process Oils Malaysia Plant.

Speaking at the event, Dato’ Azman said, “This investment does not only demonstrate your confidence in Malaysia’s long-term investment propositions, but also the thriving state of the chemical industry in the country. We are excited that upon completion of this project, Orgkhim will be the first company to produce carcinogen-free RPOs in Malaysia. It will strategically put Malaysia on the map as one of the few places in the world producing this premium specialty and eco-friendly chemical. Malaysia will certainly benefit from the sizeable patented technology transfer into the country.”

“The direct users of this specialty material, especially companies in the tire and rubber industry, will benefit much from the presence of Orgkhim here. They will be able to source for more cost-competitive raw materials and improve the quality of their output, resulting in safer and more EU compliant products that are fit for export purposes. When fully implemented, a total of 69 Malaysians will have the opportunity to work with this international company. Local vendors can also leverage on business opportunities arising from the many services required by the plant operation,” added Dato’ Azman.

Orgkhim Biochemical Holding is the top Russian and second worldwide producer of safe petroleum-based extender oils for “green” tires production around the world. Continental, Goodyear, Pirelli, Hankook and other big global tire makers have chosen Orgkhim’s NORMAN low-PCA processing oil made in the Russian town of Uren near Nizhny Novgorod area, and supplied to their production units in Europe, Africa and Asia.

“Today, we supply China and Korea and other Asian countries directly from Russia. Our volumes are growing so we will easily move production of these volumes to Malaysia,” said Orgkhim’s Head of Marketing.

According to MIDA’s record, as at September 2017, a total of 2,073 manufacturing projects in the chemical industry have been approved with investment worth RM96.5 billion. Out of the total, 59.5% (RM57.4 billion) was from foreign sources while the balance of 40.5% (RM39.1 billion) was from local sources. These projects have created a total more than 97,000 jobs for the country.

***

For more information, please contact:

Ms. Doreen Yeo

Tel : +6012-2793493

Email: [email protected]

Ms. Umarani Muniandy

Director, Chemical & Advanced Materials Division, MIDA

Tel.: 03-2267 6678

Email: [email protected]

About ORGKHIM:

Russia’s ORGKHIM Biochemical Holding, a Nizhny Novgorod-based holding, plans to build a USD 50 million facility in Malaysia to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds.

About MIDA:

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 23 overseas offices. Moving forward, MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era.

Download: 

CEO Speech at Orghkim Groundbreaking Ceremony

Posted on : 12 February 2018

Orgkhim’s Johor plant to be the First Producer of Carcinogen-Free Rubber Process Oils (RPOs) in Malaysia


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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

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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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The East Coast Railway Line (ECRL) project, Malaysia-China Kuantan Industrial Park (MCKIP), Kuantan Port expansion and Tanjong Agas Oil & Gas and Logistic Industrial Park lend an air of optimism for the state of Pahang that sets to woo investments from both foreign and local investors into the state

23 February 2018, Kuala Lumpur – The East Coast Railway Line (ECRL) project, Malaysia-China Kuantan Industrial Park (MCKIP), Kuantan Port expansion and Tanjong Agas Oil & Gas and Logistic Industrial Park lend an air of optimism for the state of Pahang that sets to woo investments from both foreign and local investors into the state.

“These projects will be an impetus to attract more quality investments into Pahang, particularly in targeted sectors. With so much room available for new investment, expansion and diversification, we look forward to more companies taking advantage of the established ecosystem and facilities that Pahang has to offer,” said Mr. Arham Abdul Rahman, Executive Director of Investment Promotion, Malaysian Investment Development Authority (MIDA) in his welcoming remarks at the MIDA Invest Series event held this morning at MIDA Headquarters.

The ECRL project will be the game changer for industries and existing developments on the east coast region that will see the emergence of additional trade routes. The project, which is expected to be completed in 2024, will link several key east coast industrial hubs such Kertih Port, Kemaman Port and Kuantan Port directly to the west coast of the peninsular.

The MCKIP, Malaysia’s first industrial park with ‘National Park’ status will drive more investments in heavy industry as well as high end and high technology industry such as steel and non-ferrous metals; machinery and equipment manufacturing; clean technology and renewable energy; oil and gas; petrochemical; electrical and electronics as well as research and development. MCKIP will grow to become an important economic driver with the aim of creating 19,000 jobs by 2020.

The multi-cargo Kuantan port leverages on its strategic location facing the South China Sea to be expanded to include a New Deep Water Terminal (NDWT). This leading petrochemical hub port and container terminal in the east coast region will double its capacity to 52 million freight weight tonnes (FWT) and is expected to emerge as one of the fastest routes to major ports in China and Asia-Pacific markets, making MCKIP as a key investment hub in Asia Pacific.

The Tanjong Agas Oil & Gas and Logistic Industrial Park sets to become the supply base and marine services hub for modern and complete facilities for the oil and gas industry. It will help spur the economic development and attract additional investments in Malaysia’s maritime and oil and gas business sectors. The park is expected to contribute RM30 billion to the Gross National Income and create 30,000 jobs by 2020.

Mr Arham said, “Not only do these projects strengthen the state’s comprehensive ecosystem; but they also improve the production and logistical efficiency; reduce the cost of doing business, and support greater flow of trades and investments into the state. We trust that these projects will further stimulate Pahang’s economic growth and create high value jobs for its people.”

As at September 2017, a total of 698 manufacturing projects have been approved in Pahang with investment worth RM43.1 billion. Majority of these investment or 56% (RM24.0 billion) were from foreign sources, while the rest (44% or RM19.1 billion) were from domestic sources. These projects have created over 90,000 job opportunities, mainly in the petroleum products, basic metal products, chemical and chemical products, electronics and electrical products, and non-metallic mineral products. Notable companies operating in Pahang include BASF Petronas Chemical, RP Chemicals, Kinsteel Berhad, CSWind Malaysia (formerly known as Eco Tower), Straits Cement, Polyplastics Asia Pacific and Kaneka.

“Much of these successes are the direct result of the close working relationship between the federal and state Government to develop and improve the state’s standing in the country. These efforts, particularly in delivering the high-impact projects and public infrastructures, have been ongoing, big and strong,” added Mr. Arham.

MIDA Invest Series is an initiative undertaken by MIDA since early January 2018 to promote a competitive economy with equitable development among all states in Malaysia. The fourth run in this series featured a presentation by YH Dato’ Haji Ahmad Sabri bin Hussin, Deputy Chief Executive Officer, Operation of Pahang State Development Corporation on investment prospects of Pahang and its latest developments.

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For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment and Supply Chain Coordination Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Download:

Speech by Mr. Arham Abdul Rahman, Executive Director Investment Promotion – Pahang Special Briefing

Slide Presentation by PKNP

Posted on : 23 February 2018

Pahang, A Big State with Big Opportunities for Investors


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Companies Need to Align with the Dynamic Ecosystem of the Automotive Industry

21 March 2018, Selangor – YB Datuk Chua Tee Yong, Deputy Minister of International Trade and Industry (MITI) officiated the Towards Autonomous Technologies Conference 2018, a collaborative efforts between MIDA (Malaysian Investment Development Authority), CREST (Collaborative Research in Engineering, Science and Technology) and DRB-HICOM University held at the MIDA headquarters, today. The event, with a theme “Embracing Future Innovations”, was attended by more than 150 participants ranging from industry players, academia and government agencies.

“Technological advancement particularly those related to connectivity and autonomous technology will increasingly change the way we commute daily and travel from one place to another. The increasing speed of innovation and shared mobility solutions will give rise to new business models. Together, these developments will reshape the industry landscape and help define the future of transportation,” said YB Datuk Chua Tee Yong at the conference.

“Malaysia is not far behind from this technological development. We have notable local companies and universities that have initiated several development projects related to autonomous vehicles and its related technologies. For example, our home grown company, REKA has started developing its own self-driving or autonomous car technology since September 2016. Another example is the Universiti Teknologi Malaysia (UTM), which has been conducting research and development (R&D) activities on developing a fully automated vehicle since 2017. An AV prototype was developed through the collaboration between UTM and Moovita Pte Ltd. The prototype is based on a 7-seater vehicle and after just six months of extensive development and testing, the vehicle made its debut to the public in January 2018,” added YB Datuk Chua.

In his welcoming remarks, Dato’ Azman said, “Today’s conference is part of MIDA’s continuous efforts in providing platforms for industry stakeholders to discuss and exchange ideas in new and emerging areas. MIDA sees that the potential benefits of autonomous vehicles in urban transportation system are enormous and wide-reaching. To achieve them, it requires the right mix of ambition, planning, regulation testing and careful execution in a setting that involves multiple stakeholders. Therefore, the conference today feature various experts sharing on issues, challenges, technology breakthroughs and perhaps some recommendations for Malaysia to pursue this journey towards producing more autonomous vehicle technology,”

The conference featured a broad spectrum of the ecosystem representing academicians from the Universiti Putra Malaysia (UPM), Universiti Teknologi Malaysia (UTM) and DRB HICOM University; the industry players/experts (BOSCH, Clarion, REKA, Frost & Sullivan), industry association (Malaysia Automotive Association), and the relevant Government related bodies including the Ministry of International Trade and Industry (MITI), Malaysian Research of Road Safety Research (MIROS) and Malaysia Automotive Institute (MAI) and Perbadanan Kemajuan Negeri Perak (PKNP).

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For more information, please contact:

Mdm Jasbir Kaur Bachan Singh

Director, Transportation Technology Division, MIDA

Tel.: 03-2267 6798 | Email: [email protected]

Download:

Speech by Deputy Minister MITI_Autonomous Tech Conference

Speech by CEO of MIDA_Autonomous Tech Conference

Posted on : 21 March 2018

Embracing Future Innovations


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Strengthening the Manufacturing Ecosystem

8 March 2018, Selangor – “Successful industrial parks can be centres of growth and innovation, support local development and contribute to the advancement of the national economy. Thus, development of industrial parks is an important issue that needs to be addressed accordingly as we step up our game to ensure Malaysia remains among the top destination for investments in the region,” said YB Dato Seri Ong Ka Chuan, Second Minister of International Trade and Industry (MITI) at the Industrial Park Forum for Central Region held today at the Dorsett Grand Hotel, Subang Jaya, Selangor.

“The country needs to develop industrial parks that are ready to receive quality investments and meet the complex needs of investors. Failure to meeting this requirements can lead to loss of business opportunities for the industrial parks’ developers and on a larger context, may risk Malaysia of being sidelined when it comes to attracting quality investments. All park developers and managers need to seize the wave of industries that are coming into Malaysia by providing the next generation industrial parks. In realising this aspiration, I would like to urge the local authorities, technical agencies and utility providers to also come on board as these entities are important in building comprehensive industrial parks for investors,” added the Second MITI Minister.

The Forum, a collaboration between the Malaysian Investment Development Authority (MIDA) and the Federation of Malaysian Manufacturers (FMM), was attended by more than 200 participants representing the entire spectrum of relevant stakeholders – from local authorities, park developers & managers, utility companies, manufacturers and potential investors. Also present were YBhg. Dato’ Azman Mahmud, CEO of MIDA and YBhg. Dato’ Soh Thian Lai, President of FMM.

In his welcoming remarks, Dato’ Azman said, “Looking at the business trends today, MIDA believes that in order to attract more quality investments, we have to move faster by re-engineering our industrial parks to meet the demands of new emerging markets and industries. Presence of well-developed industrial parks can be a magnet to attract high value added investments, thereby creating high income jobs for the people. Being the first point of contact for investors, MIDA will take the lead as the authority to oversee the performance and regulate the industrial parks; as well as to assist potential investors in identifying suitable locations to place their facilities.”

The Industrial Park Forum for Central Region marks the first of its series and more will be organised throughout 2018 in the northern and southern regions as well as East Malaysia. By the end of the roadshow, MIDA and FMM will publish a Directory of Industrial Parks in Malaysia.

The Forum featured a panel discussion with broad range of speakers representing developers (MIDF Property Berhad, Matrix Concepts Holdings & Eco World Development Group Berhad, and UMW Land Sdn. Bhd.), investors (European Union-Malaysia Chamber of Commerce and Industry, Japan External Trade Organization (JETRO) Kuala Lumpur & Asli Mechanical Sdn. Bhd.), local councils and utility companies. This was then followed by a one-on-one engagement with developers and biz clinics with the utility companies, as well as financial institutions.

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For more information, please contact:

En. Ahmad Tajudin Omar

Director, Domestic Investment & Supply Chain Coordination Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Download:

Speech by YBM II_Industrial Park Forum @ Central Region

Speech by CEO of MIDA_Industrial Park [email protected] Region

Posted on : 08 March 2018

MIDA Organises Inaugural Industrial Park Forum


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Tactilis which manufactures biometric smartcards is setting up its first global facility in Malaysia. The investment based in the Pearl of the Orient will be undergoing transformation to meet the need of global demand and become the Tactilis’ Centre of Excellence for its Global Manufacturing and Research & Development. The thrust forward is to convert the plant into a smart factory through its “Industry 4.0” plan.

Bayan Lepas, 5 April 2018 – Tactilis which manufactures biometric smartcards is setting up its first global facility in Malaysia. The investment based in the Pearl of the Orient will be undergoing transformation to meet the need of global demand and become the Tactilis’ Centre of Excellence for its Global Manufacturing and Research & Development. The thrust forward is to convert the plant into a smart factory through its “Industry 4.0” plan.

The Penang facility will be a benchmark for rolling-out to other Tactilis manufacturing centres globally. Its modular manufacturing design supports its strategy for rapid expansion and growth. Penang has been selected by Tactilis with its experienced workforce and microelectronics ecosystem, offering strong infrastructural support.

Tactilis’ customer base includes smart cities, private membership programmes, commercial enterprises, private banking and government sectors. The company foresees revenue for the first year to exceed RM200 million, and to more than double the following year. The customers are based in the United States of America, the European Union, and the Middle East.

The Guest of Honour at the opening event was Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), Mr. Michael Gardiner, Founder and Chief Executive Officer of Tactilis and Mr. Amedeo D’Angelo, the company’s Chairman.

On congratulating Tactilis, Dato’ Azman said, “MIDA welcomes Tactilis’ establishment which embraces elements of new technologies such as smart manufacturing, Internet-of-Things (IoT) and Industry 4.0. This significant investment will create business and job opportunities for Malaysians. For example, our local suppliers will benefit much especially those in the areas of automation equipment design. This will ultimately boost the competitiveness of our local suppliers in meeting international standards and enable them to integrate themselves into the global value chain.”

Tactilis has invested RM36 million to date and plans to invest an additional RM40 million to expand its Penang plant capabilities. This expansion will create another 100 job opportunities.

“This project is an example of the type of investments that we want to see coming into Malaysia. R&D certainly is a key factor in ensuring the viability and future success of any business. I believe with the establishment of this new Centre of Excellence, Tactilis will foster the right environment for innovation and game-changing ideas. The local youth with engineering backgrounds will gain much from the transfer of technology by working hands-on with the experts at Tactilis,”addedDato’ Azman.

In 2017, the country has successfully attracted investments amounting to RM197.1 billion in the manufacturing, services and primary sectors. These were from 5,466 projects that will generate an additional 139,520 job opportunities for the country.

For more information, please contact:

Ms Cindy Tan

Project Manager cum PA

Mobile: +60 12 465 8421 | Email: [email protected]

Website: www.tactilis.com 

Ms. Azlina Hamdan

Director, Electrical and Electronics Division, MIDA

Tel: 03 2267 3791 | Fax: 03 2260 1641 | Email: [email protected]

Website: https:// www.mida.gov.my

Media ReleaseTactilis

Posted on : 05 April 2018

 

Malaysia Welcomes Tactilis’ First Dedicated Biometric Smartcard Manufacturing Facility in Malaysia


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The National Supply Chain Conference on Rail Projects organised by the Malaysian Investment Development Authority (MIDA) was held today at the Putra World Trade Centre (PWTC), Kuala Lumpur. It attracted an overwhelming interest of more than 2,000 participants ranging from industry players as well as local authorities, business chambers and embassies

11 April 2018, Kuala Lumpur– The National Supply Chain Conference on Rail Projects organised by the Malaysian Investment Development Authority (MIDA) was held today at the Putra World Trade Centre (PWTC), Kuala Lumpur. It attracted an overwhelming interest of more than 2,000 participants ranging from industry players as well as local authorities, business chambers and embassies.

There was a panel presentation which discussed the opportunities available in the supply chains of the infrastructure projects that are currently taking place in Malaysia. The session, which was moderated by Mr Ibrahim Sani of Astro Awani, featured speakers from Suruhanjaya Pengangkutan Awam Darat (SPAD), Prasarana Malaysia Berhad (Prasarana), Mass Rapid Transit Corporation Sdn. Bhd. (MRT Corp), Malaysia Rail Link Sdn. Bhd. (MRL) and MyHSR Corporation Sdn. Bhd. (MyHSRCorp). There were also 28 key exhibits mainly focusing on the development of the rail projects in Malaysia, including Keretapi Tanah Melayu Berhad (KTM) and other rail-related industry players.

During his welcome remarks, Dato’ Azman Mahmud, Chief Executive Officer of MIDA said, “Developing opportunities for SMEs to participate in the supply chains of the MNCs in Malaysia has been an on-going effort of MIDA. Recognising that infrastructure development is an important catalyst to promote investments to spur the country’s economic growth, we are intensifying efforts to promote sustainable linkages between all stakeholders. We want to encourage the transfer of advanced technology, increase of employment opportunities and talent development as well as sustain the growth of local industry players including SMEs in various related industry sectors.”

In addition to the integrated public transportation system in Greater Kuala Lumpur and the Klang Valley, the Government is currently developing other rail projects to connect different parts of the country. For example, the High Speed Rail connecting Kuala Lumpur and East Jurong, Singapore; and the East Coast Rail Link between Port Klang to Tumpat, Kelantan will further grow the industrial clusters such as manufacturing facilities and services hubs along these railway corridors.

“Our work in ensuring a comprehensive ecosystem for Malaysia does not end here. MIDA has also embarked on a nationwide series to spur the development of industrial parks. Our Industrial Park Forum is a response to meet the needs of new emerging industries, particularly in terms of internet connectivity, industry 4.0 elements, efficient management of park facilities, eco-waste management and adequate supply of utility requirements. In the context of the rail industry, the Malaysia Rail Industry Corporation (MARIC), a group of 31 local rail industry companies, has come out with a proposal to set up a dedicated industrial park to streamline the rail industrial ecosystem. We are following closely on the development of this proposal and stand ready to assist where necessary,” added the MIDA CEO.

In conjunction to the Supply Chain conference, MIDA is holding a 2-day Career Fair which gave job seekers the opportunity to attend open interviews. The event was participated by 100 companies from a range of industries including the rail industry and offered 20,000 vacancies at different levels. There was also an exchange of Memorandums of Understanding (MoUs) between MyHSR Corporation and various institutions of higher learning to embed rail-related curriculum in their programmes. This exchange underscores the commitment and interest by all parties in churning out future-ready talents in tandem with the growth of this industry.

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For more information, please contact:

Mr. Ahmad Tajudin Omar

Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Mr. Mohamad Ismail Abu Bakar

Director, Industry Talent Management and Expatriate (Talent & Expatriate)

Tel.: 03-2267 6715 | Email: [email protected]

Download:

Speech by CEO of MIDA_National Supply Chain Conference on Rail Projects & Career Fair 2018

Posted on : 11 April 2018

Business And Job Opportunities Abound at MIDA’s National Supply Chain Conference on Rail Projects and Career Fair 2018


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