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MIDA, Citi Malaysia inks MoU to expand banking service offering to foreign investors in Malaysia

The Malaysian Investment Development Authority (MIDA) and Citibank Bhd (Citi Malaysia) signed a memorandum of understanding (MoU) today to expanding Citi Malaysia’s financial platform and banking services to new and existing foreign investors in Malaysia.

MIDA chief executive officer Arham Abdul Rahman said the collaboration stimulate active business environment in the current economic recovery.

Arham said in response to the changing global business landscape, Malaysia is adopting bold and impactful initiatives to encourage existing and new investors and industry players to induce new investments into the country.

“The MoU with Citi Malaysia signifies MIDA’s continuous commitment in pursuing high technology and high value-added investment projects according to the National Investment Aspiration (NIA) framework and goals of the 12th Malaysia Plan in driving further economic growth.

“I trust this partnership will also boost the government’s ongoing efforts to position Malaysia as the pre-eminent preferred investment destination in the region,” he said in a statement today.

The MoU was signed virtually by Arham and Citi Malaysia chief executive officer Usman Ahmed.

The ceremony was also attended by Citi Malaysia’s head of corporate banking Zuliana Tann, head of global subsidiaries group Biplab Banerjee and head of treasury and trade solutions Abdul Jalil Jalaludin.

Virtual attendees from MIDA include deputy chief executive officer Sivasuriyamoorthy Sundara Raja and director of foreign investment promotion Faizal Jalaludin.

“Citi Malaysia is very pleased to partner with MIDA as we expand our institutional business in Malaysia and continue to present Malaysia as an attractive investment destination to our clients across the globe,” said Usman.

“Despite the challenges posed by the Covid-19 pandemic, we have witnessed significant growth inflows across key investment corridors as Malaysia continues to stand out as an important and competitive investment destination.

“We thank MIDA for this opportunity to work together to promote FDI and trade flows. As the world’s most global bank, Citi has a presence in 96 countries and does business in

over 160 countries, and through this MoU we look forward to harnessing the full potential of our network, world-class products and digital banking capabilities to further deepen our commitment to the country.” he said.

Citi Malaysia’s multinational clients operating in various industries spanning across the high-technology manufacturing, industrials, energy (including renewables), consumer, health care, services, as well as hardware and software technology sectors.

Citi Malaysia is also one of the largest market makers for the Malaysian Government Securities and is among the top foreign banks in Malaysia for Corporate Foreign

Exchange, cross border cash management and institutional investor transactions.   

Source: NST

MIDA, Citi Malaysia inks MoU to expand banking service offering to foreign investors in Malaysia

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SIRIM Bhd’s subsidiary SIRIM Tech Venture Sdn Bhd (STV) has signed a memorandum of understanding (MoU) with Malaysian Investment Development Authority (MIDA) to foster long-term business collaboration in technology-driven projects.

The MoU enables STV to tap into MIDA’s business connections with investors, local large corporations and small and medium enterprises (SMEs) seeking innovation while MIDA will facilitate business leads to STV on technology-driven projects and provide funding and government incentives advisory to STV.

In a statement, STV said it offers technology assessment, IP valuation, market feasibility study, market accessibility via linking up with other subsidiaries, among others, to businesses.

SIRIM president and group CEO Datuk Dr Ahmad Sabirin Arshad said the collaboration, among other things, would provide MIDA with direct access on available technology solutions by SIRIM available to be utilised by variouus industries.

Various industries will be the direct beneficiaries of this collaboration including various financing (options) for product or technology adoption through investment on new and future technology in order to achieve technology-led growth.

“With the MoU, technology adoption that can be explored include in the areas of Industry 4.0, fabrication of machinery and equipment and renewable energy, medical devices, environmental technology and waste-to-wealth.

“Through MIDA, we hope that STV can work with medium-size industries. STV can provide consultancy and technical assistance to potential local industry in technology, recommending proposals for the application of SIRIM’s technology, innovative solution or adoption of other technology to a specific target group,” he said.

The engagements between MIDA and STV had commenced since 2019, with MIDA linking STV to several industries and STV plays active roles in bridging them to other relevant technology centre or subsidiary of SIRIM. 

Source: The Sun Daily

SIRIM Tech Venture, MIDA firm up partnership in tech projects

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The Malaysian Investment Development Authority (MIDA) and HSBC Malaysia renewed their commitment to attracting additional global investments and facilitating the establishment and expansion of multinational corporations in the country.

Both parties signed a memorandum of understanding (MoU) to focus on revitalising and reforming Malaysia’s economy during and after Covid-19 by maximising potential foreign direct investment (FDI) opportunities into Malaysia, particularly in the manufacturing sector, specifically in the electrical and electronics, chemical, machinery and equipment, aerospace, and medical devices industries.

Despite the pandemic, MIDA noted that these industries continue to play a critical role in propelling Malaysia towards strategic diversification to increase competitiveness by focusing on complex, knowledge-intensive and high-end products and services.

MIDA chief executive officer Arham Abdul Rahman said this MoU echoes National Investment Aspirations (NIA) framework to entice higher-quality investments, particularly in the areas of technology and innovation.

He said Malaysia would continue to be a strategic business partner to businesses within ASEAN and beyond.

“We boast of a robust pool of talent and a well-diversified economy resting on the back of strong economic fundamentals.

“Moreover, Malaysia’s established a local supply chain that is well-integrated into the global value chain, supported by a strong and matured local engineering support industry, are undeniable pull factors for investors seeking to expand their production capacity efficiently and with ease.

“This renewal of the partnership with HSBC Malaysia signals MIDA’s prevailing commitment to assist our investors better and provide a stronger support as we weather the current pandemic wave,” he said in a statement today.

Arham said HSBC’s vast expertise in cross-border trade and investment would continue to be an invaluable addition to MIDA’s stakeholders to make well-informed investment decisions while conducting their businesses across various markets.

“This will ultimately enable a continuous sustainable stream of quality investment activities in the country,” he said.

HSBC Malaysia chief executive officer Stuart Milne said for more than 130 years, HSBC has played a pivotal role in Malaysia’s growth and development.

“We value this significant partnership between HSBC and MIDA. Both organisations first stamped our long term partnership in 2016, showcasing the trust that MIDA places in HSBC as among the leading international banks in Malaysia.

“With our international footprint and access to key markets globally, we are eager to collaborate with MIDA on nation-building programmes to capture growth opportunities.

“We look forward to our enhanced partnership and exemplary collaborative accomplishments connecting global investors to MIDA,” he said.

This strategic public-private partnership will leverage MIDA’s marketing and trade exchange initiatives, such as trade and investment missions, while capitalising on HSBC’s global presence with access to more than 90 per cent of global gross domestic product (GDP) through trade and capital flows as well as connectivity to global corporate customers in more than 60 countries.

With these combined capabilities, HSBC and MIDA will be holding virtual roadshows, joint seminars, conferences and round-table discussions.

In 2020, several virtual investment roundtable meetings in key markets such as Netherlands, Germany, China, ASEAN and Europe took place to explore and assist companies in investing in Malaysia.

HSBC will work with MIDA to provide banking and finance services, including FDI advisory to companies venturing into Malaysia.

In addition, HSBC is keen to connect with MIDA’s local and overseas offices, to be among the ecosystem partners in active markets such as Netherlands, Germany, China, ASEAN, Japan, USA and UK in disseminating information on FDI opportunities into Malaysia.

Source: NST

MIDA, HSBC renewed focus in attracting additional FDIs, MNC expansion in Malaysia

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The Malaysian Investment Development Authority (MIDA) has identified 325 foreign investment projects in the manufacturing and services sectors with a combined potential investment value of RM97.4 billion, said outgoing international trade and industry minister Datuk Seri Mohamed Azmin Ali.

In a statement today on Malaysia’s second quarter gross domestic product (GDP) data, Azmin said MIDA is also evaluating a total of 835 projects with proposed investments of RM76.7 billion in the manufacturing and services sectors.

“In terms of investment performance, Malaysia charted a jump in private investment in 2Q21 (second quarter of 2021) of 17.4% totaling RM59.3 billion compared to corresponding period last year.

“This is a positive reflection of enhancement in capital expenditure in the services and manufacturing sectors, which is crucial for not just the preservation of jobs but creation of new job opportunities,” Azmin said.

“Foreign direct investment (FDI) net inflow totalled RM8.2 billion in 2Q21 driven by larger reinvestment of earnings mainly in the manufacturing sector and higher equity injections, underscoring that Malaysia continues to remain as a preferred investment destination in the region.

“The manufacturing sector remains a key economic sector contributing 79.3% of the FDI inflow in 2Q21 and propelling it to be the largest recipient of FDI inflow in the first half of 2021,” he added.

In the first half of 2021, Azmin said Malaysia secured a total committed investment of RM35.97 billion with potential exports value of RM3.4 billion.

“Export performance in 2021 is forecast for further growth with the manufacturing sector ramping up production capacity to meet expansion in external demand.

“Performance in the E&E, rubber gloves and medical devices sectors is expected to be given a further boost on account of continued robust demand for these products arising from the pandemic,” he said.

Malaysia recorded a 16.1% year-on-year growth in GDP in 2Q21 amid a low base due to the Movement Control Order (MCO) in March to May last year. The headline figure however showed a quarter-on-quarter contraction of 2%, following the impostion of Full MCO in June 2021.

Source: The Edge Markets

Azmin: MIDA identifies 325 foreign investment projects worth RM97.4b

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Malaysia Investment Development Authority (MIDA) has urged investors to engage domestic start-ups to innovate processes and enter new businesses.

Khairuddin Abdul Rahim, Deputy Chief Executive Officer (Investment Development), said business leaders, including small and medium-sized entrepreneurs, have become a business model to drive business growth and maintain relevance to new regular business leaders. He said that innovation must be creatively incorporated.

“The National Strategic Fund grant is a MIDA initiative to help Malaysia-owned companies move up the value chain and become more competitive in the global ecosystem.

“Through this promotion, we hope that Malaysian companies will not sit in the backseat during a pandemic.

“Instead, they need to take advantage of this period to activate their offerings and features,” he said in his opening remarks at today’s Startup Pitching Session MIDA-Cyberview Series 1/2021 Webinar. rice field.

The theme of “Technology Adoption in the Industry” is a groundbreaking collaboration between MIDA and Cyberview Malaysia, facilitating domestic startup partnerships between industry players and active investors. Did.

Presentations were given by startups such as Move Robotic, Synapse Innovation, VITA, My Conceptual Robotics, Urban Farm Tech, MHub, TrackerHero and MEDKAD.

The webinar attracted more than 300 participants, including manufacturers, service providers and potential investors.

In addition to providing MIDA, Shafinaz Salim, Head of Technology Hub Development at Cyberview Malaysia, said the Cyberview Living Lab program allows companies to conduct proof-of-concept testing and pilot initiatives prior to commercializing solutions. He said he could take advantage of Cyberjaya City for this purpose.

“Our initiative aims to support and nurture startups focused on value creation in today’s digital economy.

“Some of the Cyberview Living Lab graduates continue to play an important role and are actively contributing to the technology ecosystem,” she said.

As Cyberjaya’s tech hub developer, Shafinaz says Cyberview is working to build a sustainable and valuable launch pad for companies looking to turn their ideas into viable and innovative products.

Source: Bernama

MIDA encourages investors to innovate and enter new businesses in local start-ups

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MHODA provides future-ready policies and guides on talent requirements, digital infrastructure networks and addresses operational issues 

TheMalaysian Investment Development Authority (MIDA) Digital Investment Office (DIO) has launched “Malaysia, Heart of Digital Asean” (MHODA), a single digital investment platform in conjunction with Malaysia Tech Month 2021 yesterday. 

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed (picture) said to streamline the process of digital investment into Malaysia, the platform will complement investors’ need to navigate multiple channels or investment promotion agencies, to secure their investments in Malaysia. 

“The MHODA platform will ensure a quicker and more streamlined process for digital investment applications,” he said in the statement yesterday. 

The platform also provides future-ready policies and guides on talent requirements, digital infrastructure networks and addresses operational issues faced by businesses. 

MIDA CEO Arham Abdul Rahman said as the frontrunner for DIO, MIDA will continue to serve and provide a cohesive support system to entice investors as well as elevating Malaysia’s position as the “Heart of Digital Asean.” 

“The platform will enable investors to firm up investment plans and project implementation as an ideal business location for companies in digital space,” he said. 

Arham added that the DIO initiative will further solidify Malaysia’s aim to reinvigorate the national agenda to enhance competitiveness as formulated in the National Investment Aspirations. 

“We are convinced that DIO, through the MHODA platform, is a stepping-stone towards the country’s digital evolution,” he said. 

Meanwhile, MDEC CEO Surina Shukri said through its role as a single-window for all digital economy investors, DIO will establish a centralised data and reporting platform to capture a holistic view of digital investments. 

“The reporting will also include an assessment of any unnecessary interruptions,” she added. 

At the ongoing Malaysia Tech Month 2021, businesses are invited to learn about new perspectives on domestic and global developments in artificial intelligence, drone technology, data analytics, fintech and the digital workforce. 

Source: The Malaysian Reserve

MDEC, MIDA launch digital investment platform

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Malaysian Investment Development Authority (MIDA) is closely tracking the implementation of approved investment through the Project Acceleration and Coordination Unit (PACU).

MIDA chief executive officer Arham Abdul Rahman said the end-to-end facilitation unit would ensure all approved investment projects will be implemented as soon as possible.

“We have to understand the type of projects that we want. So the focus is still on high-technology, capital and knowledge-intensive investments.

“We know our strength and weakness, particularly workforce. We are still dependent on foreign workers, but we are no longer promoting labour intensive,” he said during a session an interview with Money Matters aired on TV3 yesterday.

Arham said Malaysia is undergoing a transition period since the last decade, evolving from import substitution to export orientation.

“We went to high-technology and now is the era of smart and digital investment. So that should be our focus,” he said.

For example, he said the government agency would ensure approved investment progressively translate into the implementation.

“The nature of the manufacturing project will usually take about one to two years to be readily realised. They need time to clear the land, install the machinery and offer job recruitment.

“That is a normal timeframe for the manufacturing sector to implement the project. We also work with other government agencies, including local and state authorities,” he said.

Arham said MIDA aspired to entice and identify potential people who fit into the high-tech and capital intensive investment.

“Although the border is close, we have a one-stop centre – the committee comprised MIDA, International Trade and Industry (MITI), Health Ministry (MoH) and Immigration Department – to facilitate investment during the pandemic.

“We receive a positive response from potential invested and stakeholders via PACU, an end-to-end facilitation from the approval until the implementation of the project,” he said.

Arham said PACU would collectively identify the problem and determine how long it will take for the approval to get at the local authority.

“After the approval at MITI or MIDA level, investors require another licensing approval certification. Subsequently, MIDA under the PACU will work closely with all the stakeholders, including the state level.

“By having PACU, we can monitor and able to track the progress of the project at a particular time,” he said.

Arham said PACU has the ‘dashboard’ to monitor and track the project with various engagements with all stakeholders to improve its investment facilitation and delivery services.

“This is to ensure the project can be implemented as soon as possible,” he said.

Arham said PACU had facilitated 1,600 projects in terms of implementation had shown positive results.

“Time taken is lesser to implement projects. Therefore, we hope to expedite the implementation process as soon as possible by PACU,” he said.

Arham said the approved investment is categorised under investments that had been submitted applications to MIDA.

“After the evaluation, we will discuss at the National Committee of Investment (NCI), which comprised Finance Ministry, MITI and MIDA.

“Once we made a decision – it can be approved or rejected. So that is the number that we capture as approved.

“After the approval, normally we ensure that all the projects that have been approved will be implemented or on the ground. This will translate into how many jobs are created based on the implementation.

Based on the aggressive implementation from the approved figure that we have given in the previous years – about 75 per cent to 80 per cent from that approved projects had been implemented,” he said.

Meanwhile, MIDA has approved RM80.6 billion worth of investments in the manufacturing, services and primary sectors in the first quarter (1Q) of 2021, a surge of 95.6 per cent from RM41.2 billion a year ago.

MIDA said these approved investments involved 993 projects and were expected to generate 32,557 job opportunities.

It added that the total approved foreign direct investments (FDI) in the manufacturing, services and primary sectors jumped 383 per cent to RM54.9 billion in Q1 from RM11.4 billion a year ago.

Arham said the RM80.6 billion was the commitment or strong interest indicated by potential investors who wanted to set up their business operations in Malaysia.

“We have undertaken continuous effort in promoting investment into Malaysia. As a result, the approved investment in Q1 represented the whole economy, including the manufacturing, services and primary sectors.

“We managed to attract a few investments in the sector. The projects are in high technology and capital intensive in nature – we look forward and attracting for many years,” he said.

He said MIDA had undertaken all initiatives to promote investment into the country via virtual and physical despite the ongoing pandemic.

“Malaysia is still attractive to foreign investors. They (investors) have confidence in this country due to the policy and facilitation and the government’s commitment.

“Our policy and incentives are transparent, depending on the incentive that we can support in addition to other facilitation.

“We have investment guarantee agreement and double taxation agreement,” he added.

Source: NST

PACU to speed up approved investment execution: MIDA

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In Q1 2021, Malaysia saw Rm80.6bil worth of approved investments in the manufacturing, services and primary sectors

The Malaysian Investment Development Authority (MIDA) continues to intensify efforts to secure sustainable investments from both domestic and foreign sources to strengthen the nation’s economic growth.

The establishment of MIDA in 1967 was hailed by the World Bank as “the necessary impetus for purposeful, positive and coordinated promotional action” for Malaysia’s industrial development.

In line with the Government’s aspiration, MIDA being the Government’s principal investment promotion agency under the International Trade and Industry Ministry has put in place a comprehensive and competitive facilitation and investment incentive schemes to attract more high quality investments – both foreign direct investment (FDI) and domestic direct investment (DDI) – into the country.

The role of domestic investments in the growth of the industrial development of Malaysia is not to be underplayed as outlined in the five-year Malaysia Plans and the Industrial Master Plans.

Strategic measures to strengthen domestic investments in these economic transformation plans include:

> Identifying potential companies as Malaysian conglomerates.

> Motivating multinational corporations (MNCS) operating in Malaysia to harness outsourcing opportunities for Malaysian companies.

> Intensifying technology acquisition support for Malaysianowned companies.

> Scaling-up local companies to achieve international standards/ certifications compliance.

In the past few years, efforts to channel Ddi-led investments into the economy have yielded positive results.

Uprising DDI

Last year, Malaysia approved Rm167.4bil worth of investments in the manufacturing, services and primary sectors for 4,756 projects to create 114,676 jobs.

DDI accounted for the majority share of 61.6%, or Rm103.2bil, while FDI made up the remaining Rm64.2bil.

In the services sector, DDI capped 90.6% of total approved investments, contributing Rm63.5bil.

As for the the manufacturing sector, DDI saw a leap of 22.6% to Rm34.7bil, compared with the corresponding period in 2019.

In the first quarter of 2021, Malaysia saw Rm80.6bil worth of approved investments in the manufacturing, services and primary sectors – a surge of 95.6% from the same period last year.

These involved 993 projects which are expected to generate 32,557 jobs. DDI was Rm25.7bil, contributing 31.9% of the total approved investments in all three sectors.

DISF the growth spark

The Domestic Investment Strategic Fund (DISF), established in July 2012, formed the main catalyst for Malaysian-owned companies to venture into high technology and innovation-based products and activities.

As of June 30, 2021, MIDA has approved DISF grants up to Rm2.2bil for 435 projects with an investment value of Rm19.1bil.

Local companies are exploring higher quality projects and progressively transforming the domestic investment landscape.

The DISF has helped domestic companies in the transfer of technology, increase in exports, creation of high value jobs and access to new markets – as proven by local companies such as Ceedtec Technology, Nashmir Holdings, TT Vision Technologies, JCY Engineering, Dominant Opto Technologies and Visdynamics.

Joining the global value chains

Domestic small and medium-size enterprises (SMES) in the manufacturing and manufacturing-related services sectors play major roles in building the nation’s industry ecosystem – geared to support large companies and MNCS.

MIDA constantly engages local service providers and SMES in business-linkage programmes with MNCS and large local companies. In 2020, it organised 15 programmes with Mncs/anchor companies and 96 local vendors through five supply chains, seven vendor developments and three lighthouse facilitation programmes. These collaborations resulted in close to a total of Rm2bil worth of local sourcing tieups.

These continuous engagements are part of the support platforms organised by MIDA, apart from quarterly domestic investment seminars to update industry players on the government’s latest incentives and facilitation in promoting DDIS.

This year, MIDA continues its initiatives through domestic investment virtual seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programmes and domestic investment coordination platform commitments.

It also coordinates various business-matching sessions between anchor companies and potential local suppliers/providers within specific industries, apart from networking arrangements for companies and potential funders, and technology providers.

The successes of these initiatives are reflected on the MNCS that have successfully established vendor development and supply chain management framework with local companies and suppliers.

The large corporations are also building up the local supply chain capability to ensure smooth operation set-ups and stable business contracts.

Examples of MNCS’ achievements in advancing local companies’ DDIS include:

> Medical devices industry: More than 30 MNCS producing high value-added medical devices in Malaysia have benefitted about 200 local SMES in the medical device supply chain and ecosystem. Companies such as B.braun Medical Industries have established a strong presence in the local market through its supply chain. Major homegrown players including Abio Orthopaedics Sdn Bhd, Straits Orthopaedics (Mfg) Sdn Bhd, Vigilenz Medical Devices Sdn Bhd, Granulab (M) Sdn Bhd, Hospitech Manufacturing Services Sdn Bhd and OSA Technology Sdn Bhd have also established viable sourcing from other local suppliers in the overall advancement of the industry in Malaysia.

> Dyson Ltd: This British-based producer of high-tech home appliances in Johor has injected billions of ringgit into the local economy by outsourcing its production to local contract manufacturers such as VS Industry, SKP Resources and ATA. In doing so, Dyson shared knowledge, skills and technology with its local suppliers to meet its high quality standards. Over 15 million Malaysian-made bagless vacuum cleaners produced have been exported to more than 75 countries worldwide. Some of its initial local suppliers have even expanded and transformed into large, public-listed companies.

> Lotte Chemical Titan: As the largest integrated producer of olefins and polyolefins in Malaysia, the company spends more than Rm200mil annually for outsourcing activities within Malaysia. It engages more than 500 local vendors and business partners in its globally growing production.

On the other hand, large Malaysian companies such as Petronas, YTL, Sime Darby, UEM, TF-AMD and Proton are increasing their support for local companies through business outsourcing in the services, manufacturing and construction sectors for the domestic and foreign markets.

Examples of some Malaysian companies that have attained high level manufacturing status and ramping up domestic chain capacity are:

> Pentamaster Corp: This homegrown automated equipment manufacturer involved in the Penang Automation Cluster project has groomed SMES to produce high-quality precision machine parts. The company also joint ventured with two local companies – Walta Group and Vitrox Corp – in this automation cluster initiative to strengthen the domestic supply chain.

> Salutica Allied Solutions Sdn Bhd: Started its primary business of manufacturing precision plastic parts in 1980. The company was transformed into a full-fledged vertically integrated electronics manufacturer offering products ranging from Bluetooth car kits, headsets, smart watch, touch pads, and light guides. In 2021, MIDA provided support for Salutica to enable the miniaturisation of hearables and encapsulation of micro-electronics on a whole new level. Salutica is further enhancing its core technology to deliver cutting edge products and hopes to be a catalyst for local talent growth, helping young aspiring graduates gain experience in the field of technology and high precision manufacturing.

> Vitrox Technologies Sdn Bhd: Invested more than 12% of its revenue in research and development (R&D) activities over the last 10 years. It is one of the top global players in automated advanced vision inspection solutions serving back-end semiconductor and electronics assemblies industries. Having embarked on technological innovation and digital transformation, Vitrox stresses on the growing demand for talents for jobs of the future related to science, technology, engineering and mathematics (STEM).

> Globetronics Technology Bhd: An integrated contract manufacturer of semiconductor-based products and services. Started operations in 1990 in a rented factory in Penang under the name Globetronics Sdn Bhd with two Malaysian founders as the only employees to service manufacturing contracts from Penang-based MNCS. The company has since grown by 30% each year and today, it is listed on the Main Board of the Kuala Lumpur Stock Exchange.

One of the most important impacts within the development of domestic supply chain businesses is the quality job opportunities for local graduates. The electrical and electronics (E&E) sector took the lead to boost DDIS, contributing 6.3% to the country’s GDP and employing more than 800,000 employees out of the 2.3 million manufacturing workforce in 2019.

MIDA ramps up the DICP

MIDA’S efforts in stimulating domestic investments translated into the formation of a dedicated unit called the Domestic Investment Coordination Platform (DICP) which aims to bridge businesses and funding, technologies and research capability.

The DICP team works closely with local regulators, technology providers and financial institutions (including equity and corporate advisory firms) to facilitate SMES and mid-tier local companies to grow their businesses, driving higher value-add and quality DDIS in the country.

The team engages R&D institutions for investors and manufacturers to commercialise R&D findings. Business-to-business facilitation is teamed up further in organised forums to promote alternative financing, with financial institutions, equity and venture capital firms.

Despite the challenges of 2020, the DICP achieved some successful collaboration such as:

> The signing of an MOU between BION Sdn Bhd – an environmental engineering and renewable energy solutions provider – and SIRIM Tech Venture (STV). STV and BION established a technical cooperation in the production of compressed biogas and related systems, and potential projects related to waste-to-energy.

> Acquisition of a 30% stake or 1.929 million ordinary shares of Malaysian home-grown fintech start-up Neurogine Sdn Bhd that specialises in digitalisation of banks, providing mobile banking, mobile payment and digital asset solutions, by Hadigy Limited, an investment holding company based in Britain.

> Development of a solar project by a local engineering, procurement, and construction (EPC) company through a joint venture with a foreign company.

> Adoption of digital technology and ecommerce platform by a local SME through collaboration with a local fintech/digital technology provider. The collaboration has enabled the SME that specialises in beauty and home improvement products to easily keep track of its product inventory, sales performance and delivery orders.

Virtual meetings and online discussion are ongoing to connect partnerships to increase achievements such as:

> Financing and equity funding: New projects (six companies), expansion (six companies)

> Road to IPO: ACE Market (one company), Leap Market (one company)

> Business acquisition/liquidation: Acquisition (two companies), liquidation (six companies)

> JV partnership: Three companies

> Technical collaboration: Two companies

> Development of business ecosystem: Two companies

Embracing Industry 4.0 tech

Domestic companies should keep stride with global manufacturing practices, given the rapid technological advancements in every field. Malaysia’s Industry4wrd policy remains an excellent guide as the Government’s support through the Industry4wrd Readiness Assessment initiative and its subsequent Intervention Fund enable domestic companies to:

> Assess their capabilities and readiness to adopt Industry 4.0 processes.

> Understand their present capabilities and gaps.

> Prepare feasible plans for effective adoption of Industry 4.0.

These moves represent the first step for companies in Malaysia to prepare for the rapidly changing technological landscape while developing new growth areas.

The Automation Capital Allowance (Automation CA) has become a sought-after incentive programme by domestic companies motivated to undertake automation and machine upgrading.

As at July 1, 2021, 414 companies have been approved for Automation CA in the fabricated metal products, textiles and textile products plastic products, wood and wood products and food manufacturing industries.

Among the attractive incentives introduced by the Government under Penjana is the Smart Automation Grant (SAG) to support local players in adopting new processes.

The Government has allocated Rm100mil to assist SMES and midtier companies (MTCS) to automate or digitalise operations.

Under the scheme, eligible companies will be given a grant on a 1:1 basis based on eligible expenditure, up to a maximum of Rm1mil per company.

As at June 30, 2021, the SAG approval committee has approved 77 companies with matching grants amounting to Rm48.5mil, whereby 86% of the recipients were SMES mainly from labour-intensive industries such as plastics, wood, furniture and textiles industries, while the rest were from services-related industries.

Lighthouse Project

Another interesting concept is the Lighthouse Project whereby MNCS and local corporations which have successfully gained from IR4.0 transformation will guide, facilitate and support local manufacturing industries to also venture into Industry 4.0 processes.

Both foreign and local companies are provided with Government support to customise facilities in establishing linkages and encourage local vendors to advance into Industry 4.0.

For this ongoing effort, MIDA is initiating discussion and webinar sessions with industry players, potential investors, international chambers of commerce and industry, and associations such as the National Chamber of Commerce of Industry of Malaysia (NCCIM), British Malaysia Chamber of Commerce, and European Union Chamber of Commerce in China.

Initial interest has been conveyed by nine MNCS and 10 local companies to explore the Lighthouse initiative.

Promoting digital investment

The Malaysia Digital Economic Blueprint (Mydigital) is expected to create 500,000 jobs and contribute a share of 22.6% to Malaysia’s GDP by 2030, among others through higher digital literacy, high income jobs, improved banking and finance, better digital access to education and medical services.

The initiative is set to draw in Rm70bil in international and domestic digital investments by 2025, supported by a five-year national digital infrastructure plan (Jendela) to strengthen existing connectivity, including international submarine cable network and the implementation of the 5G network.

Striving towards the Fourth Industrial Revolution (4IR), the Blueprint covers manufacturing, services, construction and agriculture, blending in green and circular economies, while placing importance on professional services and information and communication technology (ICT).

In April this year, a Digital Investment Office (DIO) started operations to facilitate digital investment in Malaysia. The Government has entrusted MIDA and the Malaysian Digital Economy Corporation (MDEC) to coordinate and facilitate all digital investments through a fully digital collaborative platform, Malaysia Heart of Digital ASEAN (MHODA).

The platform will streamline and expedite investment applications with respective stakeholders and align decision on tax incentive packages and facilitate the approved projects. Domestic players, including SMES, are encouraged to embrace digitalisation to stay competitive.

FDI elevates DDI

FDI has a paramount role in Malaysia’s emergence as a dynamic industrialising nation. The substantial inflows of FDI have positively impacted the economy in terms of contribution to GDP growth, trade and balance of payments, capital formation, employment, creation of high-income jobs, productivity and efficiency.

More importantly, there will be spill-over effects such as transfer of technology, establishment of new local companies supplying to MNCS, expansion of supporting industries, collaboration programmes with local companies and institutions of higher learning, development of the services and e-commerce sector, and benefits to utilities providers.

The positive investment growth for Q1 2021 was driven by the robust performance of the manufacturing sector, with approved investments of Rm58.8bil from 246 manufacturing projects.

It is important to note that amid the pandemic, FDI accounted for 88.9% or Rm52.3bil of the total approved investments in the manufacturing sector.

MIDA continues to target FDIS which relate strongly to sectors such as aerospace, machinery and equipment, IC design, advanced electronics; advanced materials; fine chemicals; renewable energy such as photovoltaic; optics and photonics; display technology; petrochemical; pharmaceutical, medical devices and food security.

Keeping track

On March 26, 2021, MIDA launched a new structured online application submission via the Investmalaysia portal. This is an E-TRANS system initiative by MIDA to digitalise application submissions and evaluation processes to facilitate current and future investors.

Efforts to assist investors was further heightened by the establishment of the Project Acceleration and Coordination Unit (PACU) in MIDA to facilitate various approval processes by stakeholders, utility agencies and authorities, including at State levels to ease the implementation of approved manufacturing projects.

PACU strengthens the links among domestic companies, as MIDA is familiar with the business requirements across post project-implementation issues which involve talent needs, sourcing of local components and engineering supporting industries.

The way forward for DDI

Since March 2020, the Government has implemented decisive measures revolving around the 6R Strategy (Resolve, Resilient, Restart, Recovery, Revitalise and Reform) to support the people and businesses in facing the Covid-19 pandemic.

Stimulus packages such as Prihatin, Prihatin SME+, Penjana, Kita Prihatin, Permai, Pemerkasa and Pemulih are being rolled out for economic recovery.

After decades of investment promotion and facilitation track record, MIDA will assume a more prominent role in the National Investment Aspiration (NIA) institutional reforms and policy coherence (see graphic).

This is to attract quality investments, increase productivity, innovation and R&D targets; extend domestic linkage, create high value jobs and improve inclusivity in socio-economic diversity.

MIDA strives to engage both foreign and domestic industries toward a sustainable business environment in the firm belief that the ecosystem approach is the best way to retain investors and encourage companies to grow in Malaysia.

Companies can reach out to MIDA’S offices in all states and major cities globally. For more details, go to www.mida.gov.my.

Source: The Star

MIDA Spearheads Domestic Investment in Malaysia

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The government, via the Malaysian Investment Development Authority (MIDA), remains focused on attracting high-quality investments from foreign and domestic companies into Malaysia through various investment strategies and policy initiatives amid the Covid-19 pandemic.

MIDA chief executive officer (CEO) Arham Abdul Rahman said the continued aggressive strategy to attract high-level investments from both foreign and domestic investors is exhibiting promising results, with Malaysia recording a total of RM80.6 billion worth of approved investments in the manufacturing, services and primary sectors in the first quarter of 2021 (January-March), a surge of 95.6% from the same period last year.

“These approved investments involved 993 projects and are expected to generate 32,557 job opportunities. Malaysia remains a competitive investment location for foreign investors despite the multiple headwinds on the global front,” he told Bernama in an exclusive interview recently.

He said total approved foreign direct investment (FDI) in the manufacturing, services and primary sectors increased by 383.4% to RM54.9 billion for the period of January-March 2021 from RM11.4 billion in the same quarter last year.

“It is observed that the significant FDI projects are mainly in the export-oriented and high-technology sectors, such as electrical and electronics (E&E) and medical devices, as well as capital-intensive sectors like basic metal products and chemical products.

“Most of the foreign or multinational corporations (MNCs) in Malaysia are involved in the high-technology sectors, such as microelectronics, mechatronics, advanced materials, biomaterials, medical components, metal components, and aerospace composite and chemical products,” he said.

Arham said these MNCs play a significant role as the nation’s transformation agents for the manufacturing- and manufacturing-related services industry.

He added that the government continuously supports the local supply chain and vendors to grow their business and serve the MNCs.

In efforts to upgrade the domestic ecosystem of industries that support the major foreign projects here, he said the government had introduced an Intervention Fund and Smart Automation Grant (SAG).

This assists local vendors in the supply chain of the MNCs to automate and digitalise their manufacturing and business processes for higher efficiency.

As for FDI interest in the services sector, he said the Principal Hub (PH) scheme is the most preferred business activity for foreign investors, supported by government tax incentives since 2015.

“Malaysia seeks to become the preferred choice of location for headquarters in the Asia-Pacific region, challenging other regional competing countries. The country is also gaining attention as the heart of the digital hub in ASEAN, with the recent launch of the MyDIGITAL initiative under the Malaysia Digital Economy Blueprint,” he said.

Moving forward, Arham said the Cabinet on April 12, 2021 approved a new investment agenda, building upon the National Investment Aspirations (NIAs) and Malaysia’s unique value proposition to investors.

As seen in the announcement of approved projects in the first quarter of 2021, he said many foreign investors confidently reflect their long-term investments in Malaysia.

“One notable project is a new manufacturing project by SK Nexilis from South Korea, a copper foil producer for electric vehicle (EV) battery manufacturing. The proposed facility in Malaysia will fully implement the RE100 initiative to commit to 100% renewable electricity.

“The company’s presence will attract more investors to complete Malaysia’s EV battery manufacturing supply chain, turning the country into a high-precision and high-quality copper foil hub for niche applications,” he said.

In the domestic landscape, Arham said local players such as Amerix Metal Machining Technology also seized the opportunity to expand and diversify their operations in 2020, further enhancing Malaysia’s supporting industry network capabilities.

It is observed that Malaysia’s trade performance maintained its upward trend in May 2021, with trade expanding by 48.7% to RM170.88 billion compared with May 2020, while exports surged by 47.3% to RM92.31 billion, the ninth consecutive month of year-on-year (y-o-y) expansion since September 2020.

Arham said the strong expansion in exports and imports was a welcoming sign that Malaysia’s economic recovery was gaining speed.

“The government has also set out on a decisive mission to mitigate the pandemic’s health, economic and social impacts. Since March 2020, many initiatives have been launched in the line-up of stimulus measures revolving around the 6R Strategy (Resolve, Resilient, Restart, Recovery, Revitalise and Reform).

“Stimulus packages of PRIHATIN, PRIHATIN SME+, PENJANA, KITA PRIHATIN, PERMAI, PEMERKASA and PEMERKASA+ with a total value of RM380 billion are rolled out to assist in mitigating the impact of Covid-19, spurring economic growth and promoting quality investments,” he said.

The recent PEMULIH package also allocated RM150 billion to weather the challenges faced in the current pandemic wave, he added.

Through the upcoming New Industrial Master Plan 2021-2030 (IMP) and the 12th Malaysia Plan (12MP), Arham reiterated that the government will continue formulating key new strategies to further enhance Malaysia’s industrial competitiveness and strategic directions in the national development agenda.

“MIDA keeps scouting, attracting and facilitating high-technology, knowledge-based and capital-intensive investments that generate multiplier effects on the nation’s economy. Being able to provide high-value job opportunities has always been MIDA’s strategic intention, particularly towards the Industry 4.0 era.

“The industrial landscape demands an increasing need for a combination of technical know-how, critical thinking, problem-solving capabilities as well as the right leadership skills,” he said.

Source: Bernama

MIDA remains focused on attracting high-quality investments into Malaysia

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The induction of UMW Aerospace Sdn Bhd in the 2021 Cohort of Rolls-Royce’s High Performing Supplier Group shows that Malaysia is indeed an ideal location to meet the growing demand of the aerospace sector in the Asia-Pacific region, the Malaysian Investment Development Authority (MIDA) said.

Chief executive officer (CEO) Arham Abdul Rahman said given the vibrant business environment, MIDA is optimistic that Rolls-Royce would benefit from Malaysia’s established ecosystem and facilities.

“We are pleased that Malaysia continues to fit into Rolls-Royce’s overall growth strategy for the region, exceptionally so, with its Industry 4.0 technology success.

“We believe with our strategic value proposition, companies will be able to grow their business to another level and transform as competitive world players.

“We will ensure the business sentiment in Malaysia remains attractive amid the challenging global economy and the current wave of the COVID-19 pandemic,” he said in a statement today.

Congratulating UMW Aerospace for the achievement,  Arham said the inclusion places UMW Aerospace amongst the top 5.0 per cent of Rolls-Royce’s global suppliers, since winning the “Trusted to Deliver Excellence” award in 2018.

He said through various agencies, including MIDA, the government would ensure the long-term development of the local aerospace industry, including expanding the aerospace supply chain with the participation of small and medium enterprises (SMEs); as Malaysia strives to become a leading aerospace nation in Southeast Asia by 2030.

As the country’s pivotal investment promotion agency, MIDA envisions to develop more Tier 1 home- grown companies such as UMW Aerospace and further nurture them to penetrate new markets, as well as link up with major aerospace industry players, including original equipment manufacturer at the global arena, he said.

Meanwhile, UMW Holdings Bhd president and Group CEO  Datuk Ahmad Fuaad Kenali said the group is  humbled with this achievement and its  unwavering commitment to high-quality products, as well as services has led to this recognition.

He said UMW Aerospace has proven itself as a reputable player in the highly-regulated aerospace industry in a short period.

“Furthermore, this achievement places UMW Aerospace among the more established  players in the industry and in a favourable position to participate in Rolls Royce’s future projects.

“We believe this achievement is a testament to Malaysia’s potential to become an aerospace hub in ASEAN,” he said.

UMW Aerospace Sdn Bhd, a wholly-owned subsidiary of UMW Group, is the only home-grown company to become a Tier 1 supplier to Rolls-Royce.

Source: Bernama

Malaysia an ideal place to meet aerospace sector growing demand in Asia-Pacific — MIDA

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