NASDAQ-bound Graphjet Technology Sdn Bhd, the world’s leading graphite and single-layer graphene producer, has been meticulously chosen as one of the distinguished champions of the New Industrial Master Plan 2030 (NIMP 2030).

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In a remarkable endorsement under the NIMP 2030 which was launched by Prime Minister Datuk Seri Anwar Ibrahim, the Investment, Trade and Industry Ministry (MITI) has officially recognised Graphjet Technology as the groom champion in four game changing advanced materials category (MBP 1.4).

This recognition is further cemented with the issuance of a certificate of acknowledgement to Graphjet Technology, thus reinforcing the company’s status as a mission-based project champion under the NIMP 2030 framework.

This NIMP 2030-driven initiative aims to rejuvenate local ecosystems, foster innovation and cultivate talent with Graphjet Technology leading the charge.

At the heart of the Madani Economy, this plan underscores the nation’s dedication to creating high-value job opportunities, fortifying the middle class, and architecting a more equitable and prosperous society.

As an MBP Champion, Graphjet Technology is poised for numerous benefits. Beyond the expansion of business opportunities, the company will become an integral part of a landmark national project.

With the government’s steadfast support, challenges will be addressed promptly, hence ensuring a smooth journey ahead. Additionally, Graphjet Technology will gain privileged access to NIMP 2030 funds while holding a vital position in the NIMP 2030 governance as well as contributing significantly to industry development.

Vibrant industrial future

During the NIMP 2030 launch, Anwar who is also the Finance Minister had mentioned that the NIMP 2030 would require an estimated total investment of RM95 bil over the next seven years, predominantly from the private sector by mobilising private equity in the capital and financial markets.

The government will nevertheless made available close to 10% of the amount to help catalyse and incentivise these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund.

Renowned for their ground-breaking conversion of palm kernels into graphite and single-layer graphene, Graphjet Technology’s innovations have found a harmonious fit with the objectives of NIMP 2030.

This strategic initiative represents Malaysia’s dedication to shaping a vibrant industrial future by focusing on fostering high-value jobs, strengthening the middle class and driving sustainable societal advancement.

“Being selected as a champion for NIMP 2030 resonates deeply with our core values and aspirations. We are the first in the world to transform renewable raw materials, such as palm kernels, into graphite and single-layer graphene,” commented Graphjet Technology’s CEO Aiden Lee Ping Wei.

“Awarded the Nobel Prize in Physics in 2010, graphene is a stand-out material. We have created a unique patented method to turn palm kernel shell waste into single-layer graphene at a much lower cost. This breakthrough places us at the forefront of advanced material innovation in Malaysia.”

Coinciding with this significant national role, Graphjet Technology’s forthcoming NASDAQ listing underscores its global ambitions by bringing international attention to Malaysia’s advanced industrial blueprint.

The group is making significant strides towards its listing on NASDAQ which is projected to lead to an impressive market capitalisation of US$1.5 bil (RM7 bil), a feat that showcases the firm’s robust growth trajectory and the global investor community’s faith in its potential. 

Source: Focus Malaysia

Graphjet steps up a gear as NIMP 2030-recognised national project amid its NASDAQ listing plan

IT is a pivotal moment for Malaysia’s industrial development.

Malaysia’s manufacturing sector has to accelerate the Fourth Industrial Revolution, taking advantage of smart technologies to move its production base up the value chain while conforming to environmental, social and governance and meeting net-zero target.

Amid increasing geo-economic complexity and the escalating impact of climate change, Malaysia needs a new generation of sustainable industrial transformation to lever up the economy to sustain resilient and competitive advantage internationally.

The manufacturing sector remains one of the primary engines of growth (2022: 24.1% of gross domestic product or GDP: 84.2% of total exports and 16.8% of total employment) and had expanded at steady rate of 4.8% per annum in 2015-2022 (4.9% per annum in 2011-2015).

The New Industrial Master Plan (NIMP) targets to increase the manufacturing sector’s value-added by 6.5% per annum to RM587.5bil by 2030 (RM364.1bil in 2022); employment growth of 2.3% per annum to 3.3 million in 2023 (2022: 2.7 million persons); while median salary will increase by 9.6% per annum to RM4,510 in 2030 (2021: RM1,976).

The country has prematurely deindustrialised since early 2000s, mainly due to increased global competition and slow progress in moving up the value chain.

Malaysia’s Economic Complexity Index ranking (24th in 2021), which indicates the productive capability of an economy, was lagging behind advanced economies (first for Japan, fourth for South Korea and sixth for Singapore); other developing regional peers are fast catching up (29th for Thailand); and labour productivity growth has moderated and stagnated (2.3% per annum in 2013-2022).

Our regional peers are receiving more foreign direct investment (FDI) inflows in recent years.

During the period 2017-2022, Malaysia registered FDI inflows of US$9.4bil per year compared to US$96.4bil per year for Singapore, US$20.9bil per year for Indonesia and US$15.8bil per year for Vietnam.

The Philippines is catching up fast (US$9.2bil per year) while Thailand’s FDI has dwindled to US$7.1bil per year.

The NIMP 2030 sets the breakthrough agenda for Malaysia’s manufacturing sector’s next take-off in the new green industrial age.

The NIMP maps out a comprehensive industrial direction, strategies and enablers with the aim of positioning Malaysia for new growth catalytic sectors and industries in the decades ahead.

The NIMP 2030 calls for a “Whole-of-Nation” approach and adopts a mission-based approach to drive the manufacturing transformation in four ways:

> Advancing economic complexity,

> Tech-up for a digitally vibrant nation,

> Pushing for the net-zero target, and

> Safeguarding economic security and inclusivity.

The master plan will chart a new generation of sustainable industrial policies, underpinned by four enablers, 20 strategies and 56 action plans.

Domestic manufacturing industries have to strengthen their resilience and competitiveness to counter operational challenges caused by geo-economic conflicts that disrupt supply chains, resource scarcity that threatens energy and utilities security, and adverse climate change disruptions.

The identified five pivotal sectors are:

> Electrical products and electronics,

> Chemical and chemical products,

> Advanced materials,

> Aerospace, and

> Healthcare (including medical devices and pharmaceuticals).

All industries will be driven strategically to embrace these four missions for reconstructing and developing a solid and sustainable manufacturing sector and also for exporting resilience.

The services sector must also move up the value chain to support the manufacturing sector.

While the lead agencies and parties involved were identified to implement the mission-based projects, accountability and responsibility are therefore critical to ensuring a successful implementation of the mission-based projects.

We need a strong accountability to ensure alignment and coordination among the stakeholders and parties to clearly define the project scope and deliverable.

Roles and responsibilities across ministries on investment issues tend to be unclear and sometimes lack co-ordination.

Hence, an effective implementation of a one-stop centre is a crucial investment facilitation mechanism whereby relevant ministries and government agencies are coordinated at a single point to provide prompt, efficient and transparent services to investors to shorten and simplify administrative procedures and guidelines ultimately, thereby removing bottlenecks faced by both local and foreign investors in establishing and running businesses in Malaysia.

Investment climate reforms are necessary. While the government has made efforts on transparency, the rule of law, weeding out corruption and strengthen the quality of institutions, they have not been sufficiently consistent to improve investor confidence and ensure responsible business practices by both foreign and domestic companies.

The government has to bolster collaborations between the federal government, state governments and local authorities to facilitate investment.

We support the Investment, Trade and Industry Ministry’s efforts to streamline the 31 Investment Promotion Agencies, with the Malaysian Investment Development Authority leading the way.

Domestic direct investment (DDI), especially by micro and SMEs (MSMEs), are crucial for supporting industrial ecosystem.

The inclusion of DDI as a key performance indicator is a positive step to facilitate and raise the quality of domestic investment.

MSMEs should be provided with opportunities to gradually scale up their industries through horizontal and vertical integration as well as to embrace green practices.

This necessitates capital investment in advancing technological and digitalisation capabilities, ensuring an ample supply of highly skilled and knowledge-based human capital, and more importantly, access to financing, grant and development fund.

It is estimated that a total of RM95bil will be invested throughout seven years to implement NIMP, predominantly coming from the private sector.

We support the action plans to mobilise the financing ecosystem (financial institutions and capital market), including the introduction of the NIMP Strategic Co-Investment Fund and NIMP Industrial Development Fund to support strategies, action plans and mission-based projects as well as for industries and businesses, especially MSMEs.

However, the NIMP did not provide an estimation of the amount of financing and funds needed to support the industrial transformation.

As SMEs often encounter challenges in accessing financial resources and credit facilities, it is therefore necessary to broaden the range of financing instruments available to SMEs and entrepreneurs, by improving understanding about a full range of financing instruments they can access in varying circumstances, and by encouraging discussions among stakeholders about new approaches and innovative policies for SMEs and entrepreneurship financing.

For SME green facilitation, we proposed:

> The creation of a web-based tool in partnership between the industry associations and environmental regulator to provide free environmental guidance to SMEs; and

> The provision of an ESG assessment toolkit to guide SMEs embark on their ESG journey by identifying gaps in their management system based on the 12 ESG indicators identified.

Manpower and integration with technology is integral for the industrial transformation. Swift action must be taken to review and address the manpower planning and development programmes.

These include the supply of skilled manpower; adaption; and reskilling and upskilling of workers that are future proof, including the hiring of foreign talent to supplement domestic pool of workforce.

The quality assurance of Technical and Vocational Education Training has to be revamped and enhanced.

We support the implementation of the multi-tier levy model to reduce over-dependency on low-skilled foreign workers, but the levy must not be too steep during the transition period as it would be significantly burdening the employment and operating costs of MSMEs.

The implementation of Progressive Wage System on a voluntary basis and incentive-based approach for MSMEs for the skill set categories along with the minimum wage must be productivity-linked.

We support the action plans to drive promotional activities of Free Trade Agreements (FTAs), including the Regional Comprehensive Economic Partnership (RECP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and export consortia, given the low utilisation rate and awareness among the business community.

We propose:

> The design of a tariff finder to support traders to maximise benefits from the RCEP and CPTPP to help businesses, to get up-to-date information on the preferential tariffs and the rules of origin criteria used to determine a product’s eligibility for preferential tariff treatment, and

> The setting up of a one-stop advisory centre for all FTA-related enquiries from businesses; gather feedback on tariffs and non-tariffs issues for better trade and investment facilitation.

Strategic planning is hard but the real challenge is execution. Without a careful and planned approach to execution, strategic goals cannot be attained.

Hence, we need a pragmatic approach to monitor and track the progress of the proposed action plans and mission-based projects; and make timely interventions and facilitation across collaborations between ministries and agencies as well as provide resolutions to achieve the deliverables.

Lee Heng Guie is Socio-Economic Research Centre executive director. The views expressed here are the writer’s own.

Source: The Star

NIMP sets the breakthrough agenda

The New Industrial Master Plan 2030 (NIMP 2030) is instrumental in supporting the Madani Economy framework and achieving the targets set for the next 10 years, including being a leading Asian economy, ranking among the top 30 economies in the world and the top 12 in global competitiveness.

The Federation of Malaysian Manufacturers (FMM) said NIMP 2030 would provide the ecosystem to transform the economy into a high-tech industrialised one, and to becoming a developed and high-income nation.

It said the mission-based approach of the NIMP 2030, focusing on nurturing higher economic complexity and embracing technology, underscored by sustainability and inclusivity principles, was critical to propel Malaysia to its next level of industrialisation and growth.

“The plan is geared to moving our manufacturing sector up the value chain to more high-technology and high value-added and complex products, as well as developing our national technological capabilities, which would be instrumental in supporting the high-technology manufacturing economy.

“This, in turn, should provide greater job opportunities for Malaysians, including youth.

“It would also elevate the workforce in terms of skills and knowledge to support more complex and high-technology products and services, innovation, and research and development,” it said in a statement.

The federation said the plan should translate into higher-paying jobs and open markets to local manufacturers, including those that place a high requirement for products and services that were environmental, social and governance (ESG)-compliant.

The FMM said having a holistic ecosystem would elevate Malaysia’s attractiveness to foreign and domestic investors, especially in the high-technology and innovation-driven segments.

It said the NIMP 2030 would address certain areas that support the transformation of the economy to greater levels of industrialisation, including providing an environment for industries to horizontally diversify.

“This collaboration between the government and the private sector in developing the NIMP 2030 should be continued and strengthened to ensure that the plan is well executed and targets achieved.

“Most importantly, the government must continue to commit to the highest level of efficiency and governance in ensuring the ease of doing business in the country.”

The American Malaysian Chamber of Commerce (Amcham) said it looked forward to continuing its collaboration and partnership with the government and working in alignment with the NIMP 2030’s four missions.

“Amcham believes that engaging in regular consultations with stakeholders to address implementation challenges fosters discussions among United States companies and investors and government decision-makers to identify the best path to sustainable and ESG-conscious investments and to ensure the success of the master plan’s implementation.

“Prudent governance in monitoring and implementing reforms and outlined projects, and maintaining communication with stakeholders through reviews of milestones, will also help in ensuring its implementation,” it said.

Prime Minister Datuk Seri Anwar Ibrahim on Friday launched the NIMP 2030, a policy framework that includes missions, priorities and action plans for transforming the manufacturing sector. 

Source: Bernama

NIMP vital for high-tech nation goal

Wenan Steel (Malaysia) Sdn Bhd will implement the first phase of its integrated steel project in Samalaju Industrial Park next year.

This was conveyed by Xin Wu’an Steel Group Company Limited chairman Wang Wenan to Deputy Premier Datuk Amar Awang Tengah Ali Hasan during the latter’s courtesy call on Wang in Beijing, China last Friday.

Xin Wu’an Steel Group Company is the parent company of Wenan Steel (Malaysia) Sdn Bhd.

Awang Tengah, who is International Trade, Industry and Investment Minister, had met with Wang and his team to discuss the latest development of Wenan’s steel project in Sarawak.

He was informed that like many players whose businesses were affected by the Covid-19 pandemic, the RM13.8 billion high-grade steel project in Samalaju Industrial Park also faced challenges during this difficult time.

However, with business conditions improving, Wenan will accelerate the project implementation of its steel plant in Sarawak.

Wang thanked Awang Tengah for his concern on the progress of the project in Samalaju and assured the Deputy Premier that Wenan will expedite the implementation of the project after land preparation works have been completed.

He also said that the company will prioritise jobs for Sarawakians where possible so that the project can create a winwin situation for all.

In addition to Wenan, Awang Tengah also paid courtesy call to Hebei Yanbo Color Coated Sheets Co Ltd (Hebei Yanbo) president Liu Jie on the same day to discuss the company’s intent to invest in galvanised steel sheets and colour coated steel sheets in Sarawak.

The Deputy Premier welcomed the proposed investment in view that the project is a downstream of the steel industry which the state is promoting, particularly in Sarawak Corridor of Renewable Energy (SCORE) areas.

“The project could strengthen the local steel industry whereby downstream players such as Hebei Yanbo could leverage on the products from upstream and midstream players in the steel industry when they come onboard,” he said.

Awang Tengah, who is also Second Natural Resources and Urban Development Minister, said steel manufacturing is one of the priority industries that has the potential to create huge downstream potentials particularly in construction, automobile as well as household goods.

He added that Hebei Yanbo has plans to visit Sarawak to further conduct feasibility study for the proposed project.

Source: Borneo Post

Company from China to implement Phase 1 of integrated steel project in Samalaju next year

The ambitious seven-year roadmap dubbed the New Industrial Master Plan (NIMP) 2030 unveiled by Prime Minister Datuk Seri Anwar Ibrahim aims to increase manufacturing’s value by 6.5% to RM587.5bil by 2030.

“This indicates an increase of 61% derived by NIMP 2030 interventions for high-impact sectors – E&E (electrical and electronics), chemicals, EV (electric vehicle), aerospace, pharmaceuticals and advanced materials such as minerals and metals,” he said.

He said the NIMP 2030 will require total investments of RM95bil, which will be funded predominantly by the private sector mobilised from private equity, capital and financial markets.

“Close to 10% will be allocated by the government to help catalyse and incentivise these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund,” he added.

According to Anwar, the NIMP 2030 adopts a mission-based approach, which is unlike the previous industrial transformation and the three industrial master plans launched since 1986.

“It is a horizontal policy with well-defined missions that will galvanise not only the entire manufacturing ecosystem, but also the whole of nation to drive industrial transformation and realise our vision,” he said.

Anwar added that with a short window of seven years, the NIMP 2030 must take a transformative approach to achieve its goals, and four missions have been formulated based on assessments and extensive consultations.

He said the four missions are to Advance Economic Complexity, to Tech Up for a Digitally Vibrant Nation, to push for a Net Zero Future, as well as Safeguarding Economic Security and Inclusivity.

These four missions, he added, will be supported by four key enablers – addressing financial challenges, nurturing talent development and acquisition, improving investors’ journey, and enhancing governance mechanisms.

To ensure effective implementation of NIMP 2030, Anwar announced that he will chair the National NIMP 2030 Council, which will consist of the relevant ministries and industry representatives.

“Public-private governance will be established to ensure timely and effective implementation.

“A Delivery Management Unit (DMU) under the Investment, Trade and Industry Ministry (Miti) will be set up to coordinate all efforts and drive cohesive implementation across stakeholders.”

Anwar also said Putrajaya will ensure the NIMP 2030 is carried out diligently and will benefit not only the private sector through better investments and trade prospects, but also the people through high-skill and high-income job opportunities.

“I need to stress that the vision of NIMP 2030 can only be successfully realised if we work together in unity towards achieving the missions.

“It is only with commitment to unity that we can fulfil our hopes for the country,” he added.

Source: The Star

‘Whole of nation’ approach to drive manufacturing

High-value job opportunities are among the focuses of the newly launched New Industrial Master Plan (NIMP) 2030 as Putrajaya seeks to expand the middle class, says Prime Minister Datuk Seri Anwar Ibrahim.

He said global trends such as the rising role of IR4.0 technology, climate change and sustainability practices, demographic shifts and the globalisation of value chains are changing the nature of jobs.

“Skills transformation is key to developing future competencies and this has been set as a focus of our industrial strategy,” he said when launching the NIMP 2030 at Menara Miti here yesterday.

Anwar said the NIMP 2030 will see the implementation of a progressive wage system that promotes skill development and career advancement.

“Public-private collaborations will be enhanced in the TVET (Technical and Vocational Education Training) and STEM (Science, Technology, Engineering and Mathematics) programmes, ensuring the acquisition of skills required by the industry,” he added.

Anwar said the government’s Economy Madani framework and NIMP 2030 are both aligned in their focus on improving the lives of the people through projected higher returns from the national economic targets.

“This includes employment with meaningful wages and wealth-sharing to build a more equitable and prosperous society,” he said.

Anwar also said employment will see a projected growth of 2.3% from 2023, which is set to provide employment for 3.3 million people by 2030.

“The industry’s growing employment trajectory is due to the creation of high-skilled jobs as the country advances towards higher value-added activities and via improvements in automation and technological advancements,” he added.

Most importantly, said Anwar, through interventions under NIMP 2030, the median salary for the manufacturing sector is expected to grow to reach RM4,510 from RM1,976, which is below the national average.

“This 128% increase from 2021 will be driven by the shift of the industry towards higher value-added activities and the high-skilled job opportunities being created,” he said.

Anwar also said the NIMP 2030 will create more opportunities for local small and medium enterprises (SMEs) to grow through specific action plans. He said SMEs in manufacturing currently contribute only 8% to the GDP (gross domestic product) and 9% to exports.

“There is a lot of potential to grow our SMEs in manufacturing, in line with our Economy Madani aspiration to strengthen firms of all sizes,” he said, adding that the plans to develop SMEs’ capacities will enable them to be positioned higher in the global value chain.

“This, in turn, will help them scale up into mid-tier companies that could help Malaysia make more foreign exchange earnings.”

Anwar also said he was made to understand that the International Trade and Industry Ministry will launch a new framework in a few weeks to build SMEs’ environmental sustainable goals (ESG) capacity.

“This is important to ensure SMEs’ continued participation in ESG-compliant multinational vendor ecosystems and continued access to ESG-sensitive export markets,” he added.

The NIMP 2030 outlines Putrajaya’s plans to transform Malaysia into a high-tech, industrialised nation.

Source: The Star

NIMP 2030 is the ‘key to the future’

The Federation of Malaysian Manufacturers (FMM) said the New Industrial Master Plan 2030 (NIMP 2030) would provide the right ecosystem to support the country’s economy in its transformation into a high-tech industrialised nation and towards achieving a developed nation and high-income status.

The plan, it said, is geared towards moving Malaysia’s manufacturing sector up the value chain to more high-technology and value-added and complex products, as well as developing the national technological capabilities which would be instrumental in support the high-technology manufacturing economy.

“FMM views the NIMP as being instrumental in supporting the Madani Economy framework and achieving the targets set for the next 10 years which amongst others is to be a leader of the Asian economy, ranked top 30 largest economies in the world, top 12 ranked in global competitiveness, increase labour share of income to reach 45%, increase female labour force participation to 60%, etc,” said FMM president Tan Sri Soh Thian Lai in a statement.

Launched by Prime Minister Datuk Seri Anwar Ibrahim on Friday, NIMP2030 is focused on nurturing higher economic complexity; aggressively embracing technology, underscored by sustainability and inclusivity principles. 

Soh said the plan is critical at this juncture to propel the nation to its next level of industralisation and growth, as well in ensuring that its industries remain competitive in the very robust global marketplace.

“At the same time, it will help position Malaysia as a preferred investment destination with the right ecosystem in place to support high-technology and high value-added manufacturing activities and build the capacity of our home-grown SMEs and integrate them into value chains both domestically and global,” he added.

Similar to the collaborative efforts of the government and the private sector in developing NIMP 2030, Soh said it is important that these efforts are further strengthened to ensure that the plan is well executed, and the targets are achieved.

“Most importantly, the government must continue to commit to the highest level of efficiency and governance in ensuring the ease of doing business in the country,” he said.

Source: The Edge Malaysia

FMM says NIMP 2030 will provide right ecosystem for Malaysia’s transformation into high-tech industrialised nation

The New Industrial Master Plan 2030 (NIMP 2030), while expected to boost the manufacturing gross domestic product (GDP) by 6.5% annually, contributing RM587.5 billion to total GDP by 2030, also provides a “much clearer signal” to investors on the future of the country and its key matters. 

Khazanah Research Institute deputy director Yin Shao Loong said the NIMP 2030 is timely to implement amid the current geopolitical movements, mainly in the semiconductor sector, as well as other impactful sectors. 

“Now [investors] can see (clearer, the future of the country and its key matters), based on the plans and the framework, as well as in terms of the high level on what [the country] is going to achieve. So I think it (the NIMP 2030) will have a positive [response] from the investors,” he noted. 
 
Meanwhile, MIDF Research said the announcement of NIMP 2030 is not expected to spur significant buying or selling reactions in the equity market in the short term. 
 
“We expect [that] the immediate market undertone shall continue to be dominated by a monetary statement or action of the US Fed (Federal Reserve). Hence, we maintain our FBM KLCI end-2023 target at 1,540 points or PER23 (price-earnings ratio for 2023) of 15.3 times,” it said. 
 
With the NIMP 2030 as a catalyst, manufacturing is expected to record a compound annual growth rate (CAGR) of 6.5% between 2022 to 2030 — higher than the CAGR of 4.8% in 2015 to 2019.  

This totalled a 61% increase from 2022, as growth accelerates in high-impact emerging growth sectors, including chemical, electrical and electronics (E&E), electric vehicle (EV), aerospace, pharmaceutical and advanced materials.  

“As of 2022, the combined GDP of these sub-sectors made up more than half of the manufacturing GDP, with great potential to house many additional high-tech and high value-added industries,” MIDF said in a note on Friday. 
 
The NIMP 2030 is set to drive employment up by 2.3% annually on average between 2022 until 2030, which will create a total of 3.3 million new jobs or a 20% increase in employment by 2030. 
 

The additional employment will primarily be in high-skilled jobs, as the NIMP will promote greater adoption of automation that will reduce reliance on low-skilled labour. 

This will push median pay to rise on a cumulative average of +9.6% between 2021-2030 to reach RM4,510 by 2030, or +128.0% increase from 2021.  

This will also be supported by the government’s progressive wage system (PWS) to increase the number of skilled workers and accelerate wage growth. 

NIMP targets comprehensive growth of highly-valued growth sectors

Compared to the previous Industrial Master Plan 3.0 (IMP 3.0), which only focused on several sectors under the manufacturing industry, “the biggest shift right now is that we are focusing on missions, rather than trying to achieve sectoral targets. When you [set to] achieve a sectorial target, it doesn’t always deliver strong results,” Yin told reporters after the NIMP 2030 launch on Friday. 

Earlier, Prime Minister Datuk Seri Anwar Ibrahim unveiled the NIMP 2023, which will focus on high-impact sectors, namely E&E, chemical, EV, aerospace, pharmaceutical and advanced materials.   

“So, it is important for Malaysia to have a strategy going forward, in terms of delivering the best kind of future for the country. 

“This seven-year plan — until 2030 — is important because we need to do these big structural shifts, and it’s not gonna happen overnight,” he said. 

Execution is key

While NIMP 2030 has outlined the mission-based approach to drive high-impact industrial sectors, Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the real challenge now is the execution of the plans. 

“Without a careful and planned approach to execution, strategic goals cannot be attained. Hence, we need a pragmatic approach to monitor and track the progress of the proposed action plans and mission-based projects,” Lee told reporters. 

He said the plans also need timely interventions and facilitation across collaborations between ministries and agencies, as well as provide resolutions to achieve the deliverables. 

“While the lead agencies and involved parties were identified to implement the mission-based projects, accountability and responsibility are therefore critical to ensuring a successful implementation of the mission-based projects.  

“We need strong accountability to ensure alignment and coordination among the stakeholders and parties, to clearly define the project scope and deliverables,” he said.  

Meanwhile, Lee welcomed the government’s move to launch the NIMP 2030, as he sees the new plan as an effective one-stop centre to facilitate investments into the country. 

“This is a crucial mechanism, whereby relevant ministries and government agencies are coordinated at a single point to provide prompt, efficient and transparent services to investors, to shorten and simplify administrative procedures and guidelines ultimately, thereby removing bottlenecks faced by both local and foreign investors in establishing and running businesses in Malaysia,” he said. 

Source: The Edge Malaysia

NIMP 2030 to drive manufacturing GDP, offer clarity for investors — analysts

Malaysia is looking to catalyse its next phase of industrial development, raise economic complexity and improve economic outcomes for all within seven years, guided by missions set out in the New Industrial Master Plan 2030 (NIMP 2030).

A key driver of the economy, Malaysia’s manufacturing sector currently accounts for 24% of gross domestic product and over 80% of total exports. It also employs 2.7 million individuals or around 17% of total employment in the country. Under the NIMP 2030, Malaysia wants to raise employment to 3.3 million persons and median salary in the manufacturing sector from RM1,976 a month to RM4,510 a month within seven years.

In his speech at the launch of the NIMP 2030 on Sept 1, Prime Minister Datuk Seri Anwar Ibrahim described the master plan as “a key component” of the Madani Economy that would “support the realisation of economic reforms” as it is “designed to drive Malaysia’s trajectory as a global leader in industrial development, extend domestic linkages to create wealth across the nation as well as strengthen its position in the global value chain”.

“Malaysia’s focus remains on creating a high-income and skilled workforce, where the rakyat prosper and industries flourish,” Anwar wrote in his foreword in the 187-page NIMP 2030 that outlines the government’s reindustrialisation strategies.

In his foreword, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz acknowledged that the NIMP 2030 “is an ambitious plan” but added that he is “confident that with an effective implementation mechanism and support of all stakeholders, its objectives are highly achievable within the target time frame”.

In an exclusive interview, Tengku Zafrul tells The Edge why this “mission-based” master plan is different.

To know more about what Tengku Zafrul and industry experts have to say on the NIMP 2030, read our cover story this week by picking up a copy at newsstands.

Source: The Edge Malaysia

Mission: Reindustrialise Malaysia

The New Industrial Master Plan 2030 (NIMP 2030) is instrumental in supporting the Madani Economy framework and achieving the targets set for the next 10 years, including being a leader of the Asian economy and ranking among the top 30 largest economies in the world and the top 12 in global competitiveness.

The Federation of Malaysian Manufacturers (FMM) said the NIMP 2030 would provide the right ecosystem to support the economy in its transformation into a high-tech industrialised nation and towards achieving a developed nation and high-income status.

It said the mission-based approach of NIMP 2030, focusing on nurturing higher economic complexity and aggressively embracing technology, underscored by sustainability and inclusivity principles, is indeed critical at this juncture to propel Malaysia to its next level of industrialisation and growth.

“The plan is geared towards moving our manufacturing sector up the value chain to more high-technology and high value-added and complex products, as well as developing our national technological capabilities, which would be instrumental in supporting the high-technology manufacturing economy.

“This, in turn, should provide greater job opportunities for Malaysians, including youth, and at the same time, elevate the workforce in terms of skills and knowledge to meet the requirements for a more highly skilled workforce to support the more complex and high technology products and services, innovation, and research and development activities,” it said in a statement.

The federation opined that the plan should translate into higher paying jobs for the people and, at the same time, open up more market access for local manufacturers, including markets that place a high requirement for products and services that are environmental, social and governance (ESG)-compliant.

It said that having the holistic ecosystem in place would most certainly elevate Malaysia’s attractiveness to both foreign and domestic investors, especially in the high-technology and innovation-driven segments.

In addition, the NIMP would address certain critical areas towards supporting the transformation of the economy to greater levels of industrialisation, and this would include providing an enabling environment for industries to engage in horizontal diversification towards a new set of end-product segments.

“Similar to the collaborative efforts of the government and the private sector in developing the NIMP 2030, it is important that this collaborative effort continues and is further strengthened to ensure that the plan is well executed and targets achieved.

“Most importantly, the government must continue to commit to the highest level of efficiency and governance in ensuring the ease of doing business in the country,” it added.

Separately, MIDF Research anticipated the value-added ratio for Malaysia’s manufacturing sector to improve, underpinned by greater input localisation, adoption of capital-intensive approaches, exploring high-end production for the technology sector and higher concentration on downstream activities of commodity-based products.

“Compared to the Third Industrial Master Plan (IMP3) (launched in 2006), the NIMP 2030 takes another transformative strategy, shifting from a sectoral-based approach to a mission-based approach.

“This approach outlines the targeted and focused action plans across the sectors, known as horizontal strategies, instead of focusing on the vertical action plans of individual sectors,” it said in a note.

Meanwhile, the American Malaysian Chamber of Commerce (Amcham) said it looked forward to continuing its active collaboration and partnership with the Malaysian government and working in alignment with the NIMP’s four key missions.

“Amcham believes that engaging in regular consultations with stakeholders to address implementation challenges fosters discussions among the United States companies/investors and government decision-makers to identify the best path towards sustainable and ESG-conscious investments collectively and to ensure the success of the master plan’s implementation.

“Prudent governance in monitoring and implementing reforms and outlined projects and maintaining effective communication with stakeholders through regular reviews of key milestones will also help in ensuring its implementation,” it said in a statement.

Prime Minister Datuk Seri Anwar Ibrahim on Friday launched the NIMP 2030, which is a comprehensive policy framework that includes missions, priorities and action plans for transforming the manufacturing sector in Malaysia.

Source: Bernama

NIMP 2030 instrumental in supporting Madani Economy framework

The New Industrial Master Plan (NIMP) 2030 has set the breakthrough agenda for the Malaysian manufacturing sector’s next take-off in the new green industrial age, said the think tank Socio-Economic Research Centre (SERC).

Its executive director, Lee Heng Guie, said the master plan has mapped out a comprehensive industrial direction, strategies, and enablers to position Malaysia for new growth catalytic sectors and industries in the decades ahead.

“It is a pivotal moment for Malaysia’s industrial development. Malaysia’s manufacturing sector has to accelerate IR 4.0, taking advantage of smart technologies to move its production base up the value chain while conforming to environmental, social, and governance (ESG) and meeting net zero.

“Amid increasing geo-economic complexity and the escalating impacts of climate change, Malaysia needs a new generation of sustainable industrial transformation to ever up the economy to sustain a resilent and competitive advantage internationally,” he told reporters after the launching of NIMP 2023 today.

Lee said domestic manufacturing industries must strengthen their resilience and competitiveness to counter operational challenges caused by geo-economic conflicts that disrupt supply chains, resource scarcity that threatens energy and utility security, and adverse climate change disruptions.

The NIMP 2030, launched by Prime Minister Datuk Seri Anwar Ibrahim, adopts a mission-based approach to drive the manufacturing transformation in four ways, namely, advancing economic complexity, tech-up for a digitally vibrant nation, pushing for net-zero carbon emission, and safeguarding economic security and inclusivity.

The high-impact sectors include electrical and electronics (E&E), chemical, electric vehicle, aerospace, and pharmaceutical.

Lee said domestic direct investment (DDI), especially by micro, small and medium entrepreneurs (MSMEs), is crucial for supporting the industrial ecosystem.

“The inclusion of DDI as a key performance indicator (KPI) is a positive step to facilitate and raise the quality of domestic investment. MSMEs should be provided with opportunities to gradually scale up their industries through horizontal and vertical integration as well as to embrace green practices.

“This necessitates capital investment in advancing technological and digitalisation capabilities, ensuring an ample supply of highly skilled and knowledge-based human capital, and more importantly, access to financing, grant and development funds,” he said.

Lee opined that introducing the NIMP Strategic Co-Investment Fund and NIMP Industrial Development Fund would support strategies, action plans, and missionbased projects as well as industries and businesses, especially MSMEs.

The government announced it would allocate RM8.2 billion to fund the NIMP 2030 action plans throughout its implementation period.

“We also support the implementation of the multi-tier levy model to reduce over-dependence on low-skilled foreign workers, but the levy must not be too steep during the transition period as it would be significantly burdening the employment and operating costs of MSMEs,” he said.

Ensuring the competitiveness of SMEs

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said adopting a mission-based approach is essential for ensuring the competitiveness of our small and medium entrepreneurs (SMEs).

He said SMEs have yet to embrace the latest technologies, making it imperative for the government to support them through a mission-oriented strategy.

“This approach involves providing funds to facilitate the transformation of SMEs, allowing them to shift towards export-oriented operations — a goal we aspire to achieve. The crux lies in the notion that when guided by a mission and executed effectively, the allure of foreign direct investments strengthens.

This confidence, in turn, attracts foreign investors, and even domestic ones (DDI), provided they demonstrate promising outcomes. This interplay propels the integration of our industries into the global supply chain,” he said.

Soh said collaborative efforts between the private sector and the government are imperative, particularly in enhancing workforce capabilities in the knowledge-based economy.

Meanwhile, Khazanah Research Institute deputy director of research Yin Shao Loong said the NIMP 2030 is timely as much geopolitical movement is happening right now, especially in semiconductors and other areas.

So it is important for Malaysia to have a strategy going forward in terms of delivering the best kind of future for the country. And that is why having this kind of seven-year plan until 2030 is important because you need to do these big structural shifts.

“The biggest shift is that now we’re focusing on missions rather than trying to achieve sectoral targets. When we chose a thorough target, it didn’t always deliver strong results. When we look at overall economic complexity, then it’s a broader challenge, but then, in some ways, you can push it from many different avenues,” he said.

Yin added that the newly launched master plan would give a much clearer signal to investors about what Malaysia wants for the future.

Source: Bernama

NIMP 2030 sets breakthrough agenda for manufacturing sector’s next take-off — SERC

Malaysia rolled out its fourth industrial master plan today, which aims to revitalise the country’s manufacturing sector and increase its value-added turnaround to RM587.5 billion by 2030.

Dubbed as the New Industrial Master Plan 2030 (NIMP 2030) and costing some RM95 billion in total investment over the period of its implementation, the seven-year-long plan is expected to provide employment for 3.3 million people through the creation of high-skilled jobs as the country advances towards higher value-added activities and improvement in automation as well as technological advancements.

Prime Minister Datuk Seri Anwar Ibrahim described the NIMP as the key component of the “Madani Economy: Empowering the People” framework, which was unveiled by the unity government on July 27.

“The NIMP 2030 is designed to drive Malaysia’s trajectory as a global leader in industrial development, extend the domestic linkages to create wealth across the nation as well as strengthen its position in the global value chain.

“This plan is timely to expedite the transformation of industries in Malaysia, aligning them with the country’s vision,” he said in his speech at the launching ceremony of the NIMP here today.

Present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz, Communications and Digital Minister Fahmi Fadzil and several other Cabinet members.

Unlike the previous industrial transformations and three industrial master plans since 1986, Anwar, who is also the Finance Minister, said the NIMP 2030 adopts a mission-based approach.

“With a short window of seven years, the NIMP 2030 must take a transformative and expeditious approach to achieve the goals.”

Anwar later outlined the four missions of the NIMP 2030 which are to advance economic complexity, tech up for a digitally vibrant nation, to strive for net-zero future and to safeguard economic security and inclusivity.

These missions will be supported by four enablers which are to mobilise the financing ecosystem, foster talent development and attraction, strengthen best-in-class investor journey for ease of doing business and to introduce a whole-of-nation governance framework.

The government, he said, is confident that the strategies in the NIMP 2030 will produce “meaningful outcomes and a big impact” to the national economy.

“Specifically, the NIMP 2030 aims to increase the Manufacturing’s value-add to RM587.5 billion by 2030, growing by 6.5 per cent from what it is today.

“This indicates an increase of 61 per cent and is derived by NIMP 2030 interventions for high-impact sectors such as electrical and electronic, chemical, electric vehicle, aerospace, pharmaceutical as well as advanced materials such as minerals and metal.”

In terms of employment, Anwar said the government projected growth at 2.3 per cent from this year onwards.

“What is most important is the projection that through NIMP’s interventions, the median salary in the manufacturing sector is expected to grow by 9.6 per cent, reaching RM4,510 from RM1,976, which is below the national average despite the sector’s dominant role in the national gross domestic product (GDP).

“This 128 per cent increase from 2021 is driven by the shift of the industry towards higher value-added activities and high-skilled jobs opportunities created,” he said.

To ensure timely and effective implementation, Anwar announced the creation of the National NIMP 2030 Council to be chaired by him.

The council, he said, will include the participation of the relevant ministries and industry representatives.

“Public-private governance will be established to ensure timely and effective implementation.

“A Delivery Management Unit (DMU) under MITI will be set up to coordinate all efforts and drive cohesive implementation across stakeholders.”

On the RM95 billion in total investment required to implement the NIMP 2030, Anwar said it would be predominantly derived from the private sector mobilised from private equity, capital and financial markets.

“Close to 10 per cent will be allocated by the government to help catalyse and incentivise these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund.”

Source: NST

Govt rolls out seven-year New Industrial Master Plan (NIMP 2030), create 3.3 mil jobs

The New Industrial Master Plan 2030 (NIMP 2030) adopts a mission-based approach, unlike the previous industrial transformation plan and three master plans since 1986, said Prime Minister Datuk Seri Anwar Ibrahim.

He said NIMP 2030 is a horizontal policy with well-defined missions that will galvanise not only the entire manufacturing ecosystem but also the whole of nation to drive industrial transformation and realise Malaysia’s vision.

“With a short window of seven years, NIMP 2030 must take a transformative and expeditious approach to achieve the goals. Based on rigorous assessments and extensive consultations, four missions have been formulated to drive industry transformation on a large scale,” Anwar said in his speech at the launch of the NIMP 2030 here, today.

The four missions are to advance economic complexity, to tech up for a digitally vibrant nation, to push for net-zero carbon emission, and to safeguard economic security and inclusivity.

These missions will be supported by four key enablers to overcome systemic and institutional challenges, he said.

“These enablers include addressing financing challenges, nurturing talent development and acquisition, improving the investor journey, and enhancing governance mechanisms.

“To provide the impetus for immediate roll-out of NIMP implementation, several mission-based projects (MBPs) have been identified,” said the prime minister.

He noted that these ground-running projects are expected to accelerate the development of an inclusive ecosystem that integrates the small and medium enterprises (SMEs) into the value chain and rally the entire industry.

The new master plan would see more MBPs in the near future as the industry is expected to embrace this new approach and realise the benefits it bring to companies and the spillovers it would create for the economy, said Anwar.

To establish greater economic integration with the neighbouring countries, he said NIMP 2030 plans to establish stronger cooperation with them for a more resilient supply chain, with the pursuit for vertical integration of selected industries across the Asean countries.

“It bears stressing the importance of foreign direct investments (FDI) as they indirectly increase the Domestic Direct Investments (DDIs) as multinational companies (MNCs) based in Malaysia will source products and services from local companies.

“Strategic DDIs also have the potential to attract more FDIs as investors consider DDIs as the benchmark for the domestic investors’ confidence and commitment towards strengthening the nation’s investment and business landscape,” he said.

Recognising the importance of environmental, social and governance (ESG) considerations and its role in reforming the economic landscape, the NIMP has dedicated an entire chapter – “Push for Net Zero” – as part of its Missions, said Anwar.

“This aims to decarbonise Malaysia’s industries to achieve net-zero emission goals through proactive measures such as the implementation of energy efficiency and waste management initiatives, rapid renewable energy and technology adoption, supported by a robust regulatory framework,” he added.

The prime minister said the Ministry of Trade, Investment and Industry (Miti) also has a framework that will be launched in a few weeks’ time to build SMEs’ ESG capacity.

“This is important to ensure the SMEs’ continued participation in ESG-compliant MNC vendor ecosystems, and continued access to ESG-sensitive export markets,” he added.

Anwar said, to ensure inclusivity, NIMP 2030 will also create opportunities for Malaysian SMEs to grow in the manufacturing sector.

“Our SMEs in manufacturing currently contribute only 8.0 per cent to the gross domestic product and 9.0 per cent to exports. There is a lot of potential to grow our SMEs in manufacturing, in line with our Madani Economy aspiration to strengthen firms of all sizes.

“NIMP 2030 has, for example, specific action plans to build SMEs’ capacities to enable them to be positioned higher in global value chains. This, in turn, will help them scale up into mid-tier companies that could help Malaysia earn more foreign exchange earnings,” he added.

Source: Bernama

NIMP 2030 adopts mission-based approach, to galvanise entire manufacturing ecosystem – PM

Leading global provider of computer power infrastructure and services, xFusion International Pte Ltd, has partnered with NationGate Holdings Berhad to set up a global supply centre (GSC) in Perai here.

This is the Chinese-based company’s first global supply centre in Malaysia.

“By 2024, the Penang GSC will supply the full range of xFusion products including the latest GPU servers and the annual production capacity will exceed more than 150,000 units, covering around 80 per cent of the global shipments outside of China,” xFusion chief executive officer Jeffrey Liu told a press conference after the launch of the xFusion Penang GSC here today.

He said the company also plans to further establish a research and development centre in Malaysia and Singapore and to increase their investment in the South-east Asian region.

“We expect to have thousands of job opportunities, specifically in the R&D sector,” he said.

Penang-based electronics manufacturing services provider, NationGate is xFusion’s strategic partner to manufacture the GPU (Graphics Processing Unit) servers for the global market.

Liu said the Penang GSC, covering 254,491 sq ft, has an annual production capacity of over 150,000 units of equipment including the GPU server and it will be the key hub for xFusion’s international market.

He added that xFusion hopes to be in the top two companies for computer power infrastructure and services in China and top four globally with a revenue growth rate of over 30 per cent.

“We have successfully served over 200 global Fortune 509 companies and customers with high computing demand such as Singapore’s SEA, Korea’s Kakao, Volkswagen Group, Banco do Brazil, Saudi Aramco and many more,” he said.

He said xFusion has also forged partnerships with Intel, Nvidia, Samsung and VMware.

Penang Chief Minister Chow Kon Yeow, who was also present at the same news conference, pointed out the state’s thriving ecosystem of electronics and electrical players.

“I am hopeful for this new global supply centre to strengthen xFusion worldwide supply network, while ensuring continuous and consistent delivery of products and services globally.

“With an investment value of RM1.7 billion for the next three years, this state-of-the-art centre is poised to have an expected production capacity of over 150,000 units of servers annually,” he added.

He said Penang is committed to promoting the growth of emerging sectors here.

“I am confident this collaboration between xFusion and NationGate will translate into immense potential which will only strengthen Penang’s digital infrastructure and connectivity,” Chow said.

Source: Malay Mail

China tech firm xFusion partners Malaysian manufacturer NationGate to open RM1.7b facility in Penang

Anwar added that the government is confident that the strategies in NIMP 2030 would yield meaningful outcomes and produce a big impact on the national economy.

The New Industrial Master Plan 2030 (NIMP 2030) aims to increase the manufacturing sector’s value-added by 6.5 per cent to RM587.5 billion by 2030, derived from the master plan’s “interventions” for high-impact sectors, Prime Minister Datuk Seri Anwar Ibrahim said.

The high-impact sectors include electrical and electronics (E&E), chemical, electric vehicle, aerospace and pharmaceutical.

“In terms of employment, a growth of 2.3 per cent from 2023 has been projected. This is due to the creation of high-skilled jobs as the country advances towards higher value-added activities and improvement in automation and technological advancements,“ he said in his speech at the launch of NIMP 2030 here, today.

Anwar added that the government is confident that the strategies in NIMP 2030 would yield meaningful outcomes and produce a big impact on the national economy.

Source: Bernama

NIMP 2030: Manufacturing’s value-added to grow 6.5% to RM587.5b – PM

Prime Minister Datuk Seri Anwar Ibrahim today unveiled the country’s New Industrial Master Plan 2030 (NIMP), which aims to increase manufacturing’s value to RM587.5 billion by 2030.

Informed by four missions and supported by four key enablers, Anwar said the implementation would result in a growth of 2.3 per cent from this year onward, providing livelihood for 3.3 million people by 2030.

“What is most important is the projection that through NIMP’s interventions, the median salary in the manufacturing sector is expected to grow by 9.6 per cent, reaching RM4,510 from RM1,976, which is below the national average despite the sector’s dominant role in the national gross domestic product (GDP).

“This 128 per cent increase from 2021 is driven by the shift of the industry towards higher value-added activities and high-skilled jobs opportunities created,” said Anwar, who is also the Finance Minister, at the launching of the NIMP.

Present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz, Communications and Digital Minister Fahmi Fadzil and members of the Cabinet.

Anwar added that the NIMP requires an estimated total investment of RM95 billion through its seven years, predominantly from the private sector mobilised from private equity, capital and financial markets.

To ensure timely and effective implementation, Anwar also announced the setting-up of public-private governance.

“A Delivery Management Unit (DMU) under the Ministry of Investment, Trade and Industry (MITI) will be set up to coordinate all efforts and drive cohesive implementation across stakeholders.”

Source: NST

PM rolls out New Industrial Master Plan 2030

The implementation of the New Industrial Master Plan (NIMP) is expected to facilitate the integration of small and medium enterprises (SME) in the supply chain ecosystem.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said NIMP 2030 would help share a more robust manufacturing sector to generate broad-based benefits for various stakeholders.

He said Malaysia is moving towards a liberal approach within its policies that will exert a positive spillover effect to the economy and people.

“When we make policy, especially at the ministry, what we want to see is that it ends up beneficial to the local companies, especially the SMEs in terms of the supply chain.

“Just like in the NIMP, we hope we can elevate the status of our SMEs so that they can be part of the supply chain as what the prime minister has said just now, we are now looking at targeting households to go up higher than what we have today,” he told the media at the launch of NIMP 2030 by Prime Minister datuk Seri Anwar Ibrahim here today.

Tengku Zafrul said the government is willing to look at policies that are progressive which will result in a positive spillover effect to the Malaysian companies.

The government has earmarked close to 10 per cent of funding to propel the plan through the NIMP Industrial Development Fund and the NIMP Strategic Co-Investment Fund.

Tengku Zafrul added that the funding was derived from the government’s fiscal space, which is part of the development budget.

“Part of the details on this will be revealed during the 2024 Budget as the other part has been revealed previously to which we will elaborate further in the near future,” he said.

On private sector’s involvement, he said various stakeholders from the sector were involved in the negotiations and deliberations during the formulation of NIMP.

“The amount of money that we are looking at, also includes from the private sector, in this case both the capital markets and the financial institutions and then development financial institutions to how they can assist in this.”

He added that there is a need for the plan to be commercially driven as industry players from the private sector will look at the viability of the investment.

“That’s why we need to make it commercially viable, to make it more sustainable and inclusive as well. This will involve all, including GLCs and capital investment from their part as well,” he added.

With the involvement of the private sector in the plan, the delivery management unit under Tengku Zafrul’s ministry will be set up to coordinate all efforts and drive cohesive implementation across stakeholders.

This is additional to the NIMP council which involves various ministries and agencies that oversee the execution of the plan.

Tengku Zafrul added that the unit will ensure timely and effective implementation through periodically released report to inform internal and external stakeholders as well as the public about the  progress of the NIMP and various other initiatives.

Source: NST

NIMP to facilitate SME integration in supply chain: Tengku Zafrul

Zahid said that like the prime minister, he also hoped to see Malaysia becoming a superior investment destination, thereby increasing the country’s ability at the international level.

The New Industrial Master Plan 2030 (NIMP 2030) is capable of making Malaysia a leading country in the high-tech industry sector through the goals and four missions outlined in the plan.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi (pix) said the plan would also boost digital transformation which would create hundreds of thousands of job opportunities for young people.

“This NIMP is a comprehensive policy framework that includes the mission, priorities and action plan for transforming the manufacturing sector in Malaysia.

“Thus, the confidence placed by the leadership of the Unity Government on NIMP because it will make Malaysia a high-tech industrial country with digital transformation,“ he said in a post on Facebook today.

Earlier, Ahmad Zahid attended the launch of the NIMP 2030 by Prime Minister Datuk Seri Anwar Ibrahim at Dewan Perdana, Menara MITI, here.

Ahmad Zahid said that like the prime minister, he also hoped to see Malaysia becoming a superior investment destination, thereby increasing the country’s ability at the international level.

NIMP 2030, a key component of Ekonomi Madani framework, is designed to drive Malaysia’s trajectory as a global leader in industrial development, extend the domestic linkages to create wealth across the nation and strengthen its position in the global value chain.

The master plan adopts a mission-based approach. Four missions have been formulated to drive industry transformation at a large scale namely to advance economic complexity, to tech up for a digitally vibrant nation, to push for Net Zero, and to safeguard economic security and inclusivity.

Source: Bernama

Zahid: NIMP 2030 capable of making Malaysia a leading country in high-tech industry

The government will announce part of the details on investment allocations for the New Industrial Master Plan 2030 (NIMP 2030) in the Budget 2024 announcement, which is slated on October 13.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said almost 10 per cent of the allocation was from the government’s development expenditure.

“The details, half of it will be announced in Budget 2024, and half of it is already there or allocated before this. We will explain the details in the near future,” he told reporters after the launch of NIMP 2030 here today.

Earlier in his speech, Prime Minister Datuk Seri Anwar Ibrahim said the government is fully committed to supporting the implementation of the NIMP 2030.

He said NIMP 2030 will require an estimated total investment of RM95 billion through its seven years, predominantly from the private sector mobilised from private equity, capital and the financial markets.

Close to 10 per cent will be allocated by the government to help catalyse and incentivise these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund, Anwar said.

Tengku Zafrul said the formulation of NIMP 2030 involved various negotiation sessions and deliberations with at least 1,000 people, including various stakeholders such as the private sector.

“It’s very commercially driven, and as you know, the private sector will look at the viability of those investments, hence this mission-based approach is also looking at the returns to the private sector. We need to make sure that it is commercially viable and to make it inclusive as well,” he added.

Asked whether Malaysia is looking for a more liberal approach to attracting new investments, Tengku Zafrul affirmed that Malaysia was committed to doing so as long as it gives a positive spillover effect to the economy and the people.

In terms of policy, he pointed out that the government was willing to look at policies that were progressive, that would result in a positive spillover effect to the local companies especially the small and medium enterprises (SMEs).

“When we make a policy, especially at Miti (Ministry of Investment, Trade and Industry), what we want to see is that it ends up beneficial to the local companies, especially the SMEs in terms of the supply chain.

“Just like in the NIMP, we hope we can elevate the status of our SMEs so that they can be part of the supply chain as the Prime Minister has said just now, we are now looking at targeting households to go up higher than what we have today,” said Tengku Zafrul. 

Source: Bernama

Tengku Zafrul: Govt to announce details on investments for NIMP 2030 in Budget 2024

The New Industrial Masterplan 2030 (NIMP 2030) aims to shape a robust and resilient manufacturing sector that will generate broad-based benefits for a diverse range of stakeholders, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said today.

He said unlike its predecessor, NIMP 2030 takes a different approach to industrial development.

“This is due to a few factors — firstly, we must acknowledge the numerous global and domestic challenges that continue to hinder growth, including that of small and medium enterprises (SMEs),” he said at the launch of NIMP 2030 by Prime Minister Datuk Seri Anwar Ibrahim here today.

Secondly, he said, various emerging global trends and geopolitical tensions have influenced both the global supply chain and trade environment.

“At the heart of our efforts are SMEs. Our goal is to enhance their competitiveness, enabling them to seamlessly integrate into global supply chains. Equally important is the ‘rakyat’, whom we aim to provide with higher-paying and better-quality jobs.

“Through this industrial transformation, we are committed to rebuilding our middle class, ensuring that key stakeholders can also thrive in our prosperous future,” said the minister.

NIMP 2030 to expedite transformation

“Malaysia’s manufacturing sector continues to be the cornerstone of our economy. For the second quarter of 2023, the manufacturing sector accounted for 23.6 per cent of our national gross domestic product, our economy’s second largest contributor.

“It also contributes 80 per cent to the nation’s total exports, while employing roughly 17 per cent of Malaysia’s total workforce. In short, the manufacturing sector serves as a key engine of growth to drive the nation’s next phase of economic expansion,” he noted.

NIMP 2030 aims to expedite Malaysia’s industrial transformation by enhancing the competitiveness of Malaysian companies and ensuring their greater integration with global value chains.

The minister said the plan is testament to the Madani Economy vision.

“We are aiming for equitable, sustainable and inclusive growth, particularly for our people and SMEs,” he said.

“In the formulation of the NIMP, I’m pleased to share that we meticulously ensured its alignment with 32 existing policies and roadmaps,” he said.

“This harmonisation underscores our whole-of-government approach towards a cohesive integration with the policy objectives of various ministries and agencies.”

Resilient nation

“In realising NIMP 2030 objectives, we can emerge a resilient nation that embodies prosperity, inclusivity, and sustainability, while elevating the dignity of Malaysians as envisioned in the Madani Economy framework,” he said before quoting economist Joseph Stiglitz: “Development is about transforming the lives of people, not just transforming economies.”

“This is our great opportunity to transform our industry for the country’s next economic take-off. This is our chance to prove to the world that, together, we can execute this vision, so we can continue to position Malaysia as pro-business and pro-investment, and as investors’ viable gateway to Asean and even Asia,” he said.

Source: Bernama

NIMP 2030 will pave country’s next economic take-off — Tengku Zafrul

The New Industrial Master Plan 2030 (NIMP 2030), which is a key component of Ekonomi MADANI, among others, will focus on improving the lives of the people with expected higher returns from the country’s economic targets, said Datuk Seri Anwar Ibrahim.

The prime minister said this includes employment with meaningful wages and wealth-sharing to build a more equitable and prosperous society.

“This creation of high-value job opportunities is crucial to uplift and expand the middle-class society.

“Global megatrends such as the rising role of Industry 4.0 technologies, climate change and sustainability practices, demographic shifts and globalisation of value chains are changing the nature of jobs,” Anwar said when launching the NIMP 2030 here today.

The NIMP 2030, which adopts a mission-based approach, is a horizontal policy with well-defined missions that will galvanise not only the entire manufacturing ecosystem but also the whole of nation to drive industrial transformation and realise Malaysia’s vision.

Anwar, who is also Finance Minister, said skills transformation is key to developing future competencies and this has been set as a focus of the nation’s industrial strategy.

“To meet the industry’s demands, we will implement a progressive wage system that promotes skills development and career advancement.

“Public-private collaborations will be enhanced in TVET (Technical and Vocational Education and Training) and STEM (Science, Technology, Engineering and Mathematics) programmes, ensuring the acquisition of skills required by the industry,” he said.

Anwar said the government is confident that the strategies in the NIMP 2030 will yield meaningful outcomes and produce a big impact on the national economy.

In terms of employment, the prime minister said a projected growth of 2.3 per cent from 2023 is expected, providing livelihood for 3.3 million persons by 2030.

“The industry’s growing employment trajectory is due to the creation of high-skilled jobs as the country advances towards higher value-added activities and improvement in automation and technological advancements,” he added.

He said that through NIMP’s interventions, the median salary for the manufacturing sector was expected to grow by 9.6%, to reach RM4,510 from RM1,976, which is below the national average despite the sector’s dominant role in the national GDP.

“This 128% increase from 2021 is driven by the shift of the industry towards higher value-added activities and high-skilled job opportunities created,” he added.

Source: Bernama

NIMP 2030 to improve lives with meaningful wages, wealth-sharing – PM Anwar

The federal government has agreed to hold a roundtable with the Johor government in October in Kuala Lumpur to discuss issues and challenges facing the local furniture industry, especially in Muar, said Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry Minister said this was among the matters decided at his meeting with the Malaysian Furniture Council and Muar Furniture Association today.

“I myself will chair the meeting (roundtable) to discuss issues and challenges faced by the industry today. The furniture sector is a big industry and in terms of total trade, it almost hit RM19 billion in 2022.

“Our exports are also huge and Muar is one of the biggest furniture manufacturing hubs in Malaysia, accounting for 60 per cent of the industry. The challenges raised included (lack of) skilled workers and breaking into new markets, especially outside of Malaysia,” he told reporters after the meeting with furniture industry players.

Also present at the meeting were Johor Menteri Besar Datuk Onn Hafiz Ghazi, Bakri MP Tan Hong Pin and Pakatan Harapan (PH) candidate in the Simpang Jeram state by-election, Nazri Abdul Rahman.

Asked about the Muar Furniture Park (MFP) in Bakri, Tengku Zafrul said a meeting would be arranged with the developer, Johor Corporation (JCorp), to discuss the kind of support the government can extend to the project.

“Industry players hope the state and federal governments can discuss with the party involved, that is Jcorp. I believe an idea has been mooted for this Muar Furniture City to help the furniture industry, and we will discuss this matter further when we meet,” he added.

Meanwhile, Onn Hafiz expressed confidence that collaboration between the federal and state governments can further tap Muar’s position as the country’s leading furniture hub as more could be done at the policy and ministry levels.

MFP, which covers an area of 399.4 hectares, is an integrated furniture-making hub launched in April 2018 and which is scheduled to be fully operational in 2024.

Source: Bernama

Tengku Zafrul: Gov’t to hold roundtable on furniture industry in Oct

The soon-to-be-launched New Industrial Master Plan 2030 (NIMP 2030) will transform Malaysia into a high-tech industrialised nation, said Prime Minister Datuk Seri Anwar Ibrahim.

In his National Day address today, Anwar, who is also Finance Minister, said NIMP 2030, which is scheduled to be launched on Sept 1, is no ordinary industrial plan.

“It will focus on a transition that is not limited to a particular sector but one with the objective and mission of turning Malaysia into a high-tech industrialised nation through digital transformation, and creating job opportunities for hundreds of thousands of youths in new fields.

“Industrial digital transformation will not only restore Malaysia as a preferred investment destination but also boost our capabilities,” he said.

Anwar said the country has again attracted the interest of large companies, including Tesla Inc from the United States, Geely from China and Infineon Technologies from Germany which have decided to make Malaysia an important investment hub.

“For us, (attracting investments) is very important because if it can be continued, Malaysia will truly experience freedom with every youth being guaranteed a job and will not be unemployed,” he said.

Meanwhile, Anwar said the government will also carry out a mid-term review of the 12th Malaysia Plan shortly after launching NIMP 2030.

“Once again there will be a transition. It will not only involve evaluating initial plans but making modifications and creating a transition for sustainable development,” he added. 

Source: Bernama

PM: NIMP 2030 to transform Malaysia into high-tech industrialised nation

By Liew Chin Tong

Malaysia’s manufacturing sector is sometimes marked by bizarre contrasts. On the one hand, it is the principal driver of the country’s trade and investment, making up 84% of total exports and 66% of net inflows of foreign direct investment in 2022. Yet, the median wage in the sector is just RM1,976, well below the national median wage of RM2,250 as of the latest 2021 data, despite the technical skills, experience and education that manufacturing work should require.

Manufacturing also contributes to nearly a quarter of Malaysia’s gross domestic product and 16% of total employment, but its decades-old model of labour-intensive production, low value addition and over-reliance on unskilled foreign workers have limited its potential for growth and high productivity. Indeed, according to the Department of Statistics Malaysia’s Quarterly Labour Force Survey Report, skill-related underemployment (defined as the share of tertiary-educated workers in semi-skilled and low-skilled jobs that do not require tertiary education) has risen since the pandemic, clocking in at 37% in the second quarter of 2023, with many opting for informal work in the gig economy due to the low manufacturing pay.

It is high time to rethink Malaysia’s industrial development policies. For Malaysian industry to move up the value chain and be globally competitive with the ultimate goal of producing high-quality jobs and better pay for Malaysians, the government needs to lead the way in a “whole-of-society” approach to have a paradigm shift in its thinking, including moving away from the old model that no longer serves our aspirations.

Technology adoption is the way forward to reduce reliance on unskilled foreign labour and increase manufacturing productivity and competitiveness. This also serves as an opportunity to upskill local talent, which would in turn push up wages for these skilled workers. Malaysian society needs to be transformed from the current economic model where the bottom is huge, to a middle-class society.

In October 2018, the government launched Industry4WRD, the first national policy on Industrial Revolution 4.0 (IR4.0), which attempts to address the low adoption of digital technology and limited use of automation by small and medium enterprises (SMEs) and other manufacturing firms.

When Tengku Zafrul Tengku Aziz took office as Minister of Investment, Trade and Industry (Miti) in December last year, his initial comment was that the current model does not move the needle.

At Zafrul’s instruction, Miti began redrafting the New Industrial Master Plan 2030 (NIMP 2030) to bring forth a new approach. As part of the rethinking process, Miti is also working with Bank Negara Malaysia and Malaysia Productivity Corporation (MPC) on TechUP to ensure Malaysia’s manufacturing sector will adopt more automation, digitalisation and technologies, and move away from the labour-intensive model.

The “Workshop on TechUP and GreenUP for the Next Industrial Revolution 2023” held on Aug 14 and 15 by Bank Negara and MPC brought together businesses, industries and bankers to deliberate on the way forward.

To move the needle, a few challenges have to be addressed.

Challenges

(i) Isolated approaches towards IR4.0 and automation

IR4.0 and automation are treated as though they are different concepts. In reality, they should both be part of an overarching “TechUp” effort to enhance technology adoption, automation and digitalisation. Put simply, initiatives towards technology adoption, be it IR2.5, IR3.0 or IR4.0, are crucial to propelling our industry forward.

It is important not to adopt a binary, one-size-fits-all approach in digital transformation; not all firms need to strive for IR4.0, some would benefit significantly by automating part of their processes in the style of IR2.5.

Being able to identify the strengths, capacity and gaps in the existing manufacturing processes would allow the appropriate technological recommendations to be made.

(ii) Insufficient coordination between implementation bodies

Miti’s trademark programme to strengthen IR4.0 adoption among SMEs is the Industry4WRD Readiness Assessment Intervention Programme, which is also known as the Industry4WRD Intervention Fund.

The process starts with a Readiness Assessment (RA), coordinated by MPC and conducted by assessing bodies including Sirim, which assesses firms’ preparedness to adopt IR4.0 processes.

SMEs that have completed the RA exercise are then entitled to apply for a grant of up to RM500,000 from the Malaysian Investment Development Authority (Mida) under the Industry4WRD Intervention Fund, to put in place IR4.0 solutions.

The process is not seamless and unified. Applicants have to separately walk through the MPC processes, which usually take four months, and then the Mida processes, which take another six weeks. There also often exists a mismatch between the expectations of SMEs and the RA outcome.

Since Industry4WRD was launched five years ago, MPC has received 2,409 applications, of which 1,375 were approved for the RA. Out of these 1,375 firms, 545 went on to apply to Mida for intervention funds. Subsequently, only 345 of these 545 grant applications were approved, with just 99 firms receiving full disbursement of the grant.

The maximum grant amount of RM500,000 per firm — bearing in mind that not all successful applicants receive the maximum amount — is hardly enough to support the acquisition of new capital in the pursuit of IR4.0. Besides, government grants must not be the only financing option to advance technology adoption and the RA programme should mobilise the larger ecosystem of banks, financial institutions and capital market to truly be transformative.

Additionally, MPC and Mida need to present themselves to the applicants and the public as a single window representing Miti and the government.

Way forward

(i) NIMP 2030 as the true north, with TechUP as a major supporting pillar

Time and again, it is often said that ministries and agencies work in silos, leading to resource duplication and poor coordination.

Under the NIMP, which will soon be launched by the prime minister, Miti attempts to consolidate all industry-related initiatives via a “whole-of-government” approach.

NIMP 2030’s overarching goals are aligned with the National Investment Aspirations (NIA) of increasing economic complexity, creating high-value jobs, extending domestic linkages, developing new and existing industry clusters, improving inclusivity and enhancing ESG (environmental, social and governance) practices.

Moving away from the sectoral approach adopted in Miti’s previous industrial master plans, NIMP 2030 emphasises a whole-of-nation, mission-based approach. It encompasses four missions, one of which will focus on creating a digitally vibrant nation supported by the cross-cutting concept of TechUP.

A shift from the hands-off approach of yesteryear, TechUP encompasses a set of strategies to empower SMEs to achieve greater sustainability, competitiveness, productivity and prosperity through technology upgrading as follows:

•     Targeting the right technology for SMEs, which must be frugal, affordable and fit for purpose at the baseline;

•     Targeting suitable, scalable technology solutions for SMEs with specific needs;

•     Streamlining and simplifying SMEs’ financing journey through capacity building, diversified financing options, credit assessments, and so on, in order to crowd in private sector financiers and reduce the dependence on grants.

(ii) Enhancement of the RA process

The RA can be a powerful tool if recalibrated. To improve its effectiveness, a working committee with representatives from the government, government agencies, financial institutions and industry players will formulate the method to integrate financial parameters and ESG-related capacity building into the assessment criteria. This initiative will not only facilitate the financing journey for SMEs by exploring alternative financing solutions other than government grants but will also provide financial institutions with a reference point for evaluating potential clients, preparing these local SMEs for emerging business opportunities.

The enhanced RA process should not exclude other important stakeholders, such as technology solution providers alongside assessing bodies and financial institutions in order to reach a credible consensus on the use of RA for capital mobilisation and utilisation.

(iii) Streamlining of the automation ecosystem

As the government steers the nation’s trajectory towards high technology and high-skilled manufacturing, it is crucial to streamline the automation ecosystem. To this end, Miti is actively exploring a new modality to govern TechUP through a centralised process to ensure better coordination among the government agencies.

Through TechUP, NIMP 2030, cross-ministry collaboration and other relevant policies, the government aims to strengthen Malaysia’s industrial capabilities in order to create better jobs and better pay for Malaysians in support of a vibrant middle-class society.

In its glory days in the late 1980s and 1990s, the manufacturing sector effectively ushered in a new middle class and transformed Malaysia from an agrarian society into a newly industrialised country. But since the Asian financial crisis in 1997, the political crisis in 1998 and the entry of China into the World Trade Organization, Malaysia’s growth has stagnated. Now through TechUP and NIMP 2030, we have the opportunity to truly transform the scene and make Malaysia’s second economic take-off a reality.

Liew Chin Tong is the deputy minister of international trade and industry

Source: The Edge Malaysian

Rethinking manufacturing for a second economic take-off

The New Industrial Master Plan 2030 (NIMP 2030) to be launched soon by Prime Minister Datuk Seri Anwar Ibrahim will, among others, outline ideas for driving the future of the country’s industrial sector.

Deputy Investment, Trade and industry Minister Liew Chin Tong said this will have an impact on the domestic direct investment (DDI) and foreign direct investment (FDI) in that sector.

“Next week the Prime Minister will launch NIMP 2030, and I hope the information provided and the ideas outlined regarding the industry’s future will attract both DDI and FDI,” he told a media conference after launching Infinity8 Reserve Mid Valley Southkey co-working space here today.

NIMP 2030 is a comprehensive framework covering the mission, priority and action plan to transform the country’s industrial sector.

Asked on the National Investment Council’s (MPN) decision to make DDI one of the key performance indicators for the Investment, Trade and Industry Ministry (Miti) and its agencies, Liew said this is among the Prime Minister’s focus for creating a balance and reducing the nation’s dependence on FDI.

“Actually the Prime Minister (wants) the country not only to depend on FDI, but also to balance it with DDI to expand total investment here.

“Miti welcomes it. Both Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz and I agree that attention needs to be given to DDI as well,” he added.

After chairing an MPN meeting last week, Anwar said the government has set DDI as a KPI, given that strategic DDI has the potential of attracting more FDI.

“(This is) because foreign investors usually view DDI as a benchmark for domestic investors’ confidence and commitment towards government policies for strengthening the nation’s investment and business landscape,” he said in a statement.

Source: Bernama

NIMP 2030 to outline ideas to drive future of Malaysia’s industrial sector, says Liew