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

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

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

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

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

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

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

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

Malaysia is proud to host more than 300 French businesses that vary from individual owners, to small- and medium-scale enterprises and large multinational corporations.

Presently, 30 out of 40 top French companies listed under the main French index of NYSE’s Euronext stock have a presence in Malaysia.

Among the notable French companies operating in Malaysia include STMicroelectronics, Peugeot (Stellantis), Arkema, Airbus, Safran, Saint-Gobain, Air Liquide, Schneider Electric, TechnipFMC and Decathlon.

France is a significant European investor in Malaysia. Within the manufacturing sector alone, from 1980 to last year, 126 manufacturing projects with French participation worth RM4.36 billion have been implemented in the country, creating 10,913 jobs.

The Malaysian Investment Development Authority (Mida) is committed to ensuring that Malaysia continues to be investor-friendly for the long-term growth of both foreign and domestic businesses.

Last year, amid the pandemic, Malaysia successfully recorded a total of RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors, of which foreign direct investment (FDI) accounted for RM64.2 billion (39.1 per cent).

FDI accounted for 62 per cent (RM56.6 billion) of total approved investments in the manufacturing sector. Despite the challenging year, FDI in the sector had increased by 3.9 per cent compared with 2019.

During the year, Mida partnered with CETIM (the French leading Technical Centre for Mechanical Industry) to encourage, promote and facilitate cooperation in engineering and manufacturing technology, including in emerging fields like smart manufacturing, Industry 4.0 and the circular economy.

This collaboration will strengthen Malaysia’s technological ecosystem as it allows for joint initiatives, such as applied research, training and attachment programmes; exchange of technical information and expertise; and industrial technology development that may facilitate collaboration with local higher learning institutions and research organisations.

CETIM is also considering setting up its Asia-Pacific office in Malaysia.

Mida is looking forward to working with more French investors, particularly in high technology sectors, such as electrical and electronics, aerospace, chemicals, machinery, oil and gas, hospitality, healthcare and e-commerce.

Malaysia’s well-established local supporting industry network and talented workforce to undertake high-tech products manufacturing and high value-added services are undeniable pull factors for global investors.

To improve the ease of doing business in Malaysia, Mida has intensified efforts to re-engineer delivery processes to improve the efficiency of various functions.

Among the initiatives is PACU@Mida (Project Acceleration and Coordination Unit), which provides end-to-end facilitation for project approvals to enable the timely implementation of investments in the country.

There is also a new structured online application submission via the InvestMalaysia portal to accelerate approvals for manufacturing licences, incentives and tax exemptions to expedite the execution of project operations.

Despite the closure of international borders and strict standard operating procedures to contain the spread of Covid-19, Mida continues to be responsive in providing advice and support to existing and potential investors through its 20 overseas and 12 regional offices.

A One-Stop-Centre (OSC) has also been established to process applications of foreign business representatives who need to enter Malaysia.

One of the crucial components of the OSC is the Business Travellers Centre in Kuala Lumpur International Airport.

Since the establishment of the Malaysian French Chamber of Commerce and Industry (CCIFM) in 1991, Mida has been partnering with CCIFM to promote Malaysia as an investment destination for French companies.

Mida is proud to congratulate CCIFM on its 30th anniversary and looks forward to more engagements in promoting Malaysia as one of the best investment destinations for French companies in the Asia-Pacific region.

Source: NST

Malaysia proud to host French businesses

KUALA LUMPUR (April 27): The extension and enhancement of the automotive industry incentive by the government will attract more homegrown companies to explore expansion opportunities by venturing into new high-tech and high value-added products while expanding their supply chain in the region.

In a statement today, the Malaysian Investment Development Authority (MIDA) said the new incentive was timely, as the automotive industry in ASEAN had been rapidly evolving, with countries continuously innovating policies and strategies to attract investments, particularly for electric vehicles.

“Malaysia is expectant of its positive spillover effects such as high-value jobs, increase in research and development activities as well as the transfer of technology and knowledge to the local industry ecosystems,” it said.

Additionally, MIDA said, this would solidify Malaysia’s position as an attractive investment destination for automotive industry players worldwide and a hub for energy-efficient vehicles.

According to the agency, while the new extended incentive’s main objective is to promote investments in energy-efficient vehicles, an additional scope of activities now qualifies for the automotive industry incentive.

“These encompass a range of high-tech and high-value products including next-generation vehicles, electric vehicles and related components as well as core and critical components,” it said.

MIDA said that due to the complexities of the automotive industry structure across its value chain, the government had reviewed the value-added criteria requirement as part of the enhanced incentive scheme.

Application for the incentive is open until Dec 1, 2025, and eligible companies are encouraged to submit applications to MIDA with immediate effect.

“Since 2014 to date, the government through MIDA has evaluated and approved tax incentives for 13 automotive projects with investments of RM4.6 billion,” the agency said.

Source: Bernama

Enhanced auto industry incentives to spur homegrown firms to explore expansion, says MIDA

The centre assumes a vital role in ensuring that Malaysia remains an attractive investment destination for foreign businesses

The Covid-19 pandemic has affected business travel worldwide as governments restricted travels, forcing investors and technical executives to work remotely.

To mitigate the impact, the Government of Malaysia set up its One Stop Centre (OSC) initiative to ease the movement of business travellers — from entry to exit point. The centre assumes a vital role in ensuring that Malaysia remains an attractive investment destination for foreign businesses.

The initiative was launched in October last year by the International Trade and Industry Ministry (MITI), Malaysian Investment Development Authority (MIDA), Ministry of Health (MoH), Department of Immigration Malaysia, Malaysia Airports Holdings Bhd (MAHB) and Malaysia Airlines Bhd (MAB).

A key component of the OSC is the recently introduced Business Travellers Centre (BTC) located at Gate C36, Satellite Terminal at KLIA, which is now open for short-term foreign business travellers planning to carry out their business tasks in the country.

MIDA CEO Arham Abdul Rahman said the government is currently undertaking additional initiatives to drive foreign investments, such as digitising selected government services and providing tax incentives. He added that this includes implementing the OSC to facilitate the entry of business travellers into the country.

“The OSC initiative allows senior executives and specialists to enter the country on either a short-term or long-term basis. It also ensures the legitimacy and health status of travellers prior to their entry into Malaysia.

“The BTC helps create a seamless experience for business travellers arriving to Malaysia. It provides fast-track services from arrival to departure, including being received during disembarkation from flights by duty officers, meeting with liaison officers, RT-PCR swab testing for Covid-19, immigration clearance and transport to accommodation and other destinations approved by the OSC in advance,” he noted.

He said a critical part of the arrival process is downloading the MySejahtera app, in which business travellers will be able to monitor their health risk to the pandemic and provide MoH with the necessary information to plan for early and effective countermeasures.

Citing an example, Arham said for 20 years, the Malaysian operations of German steel components manufacturer Schmidt + Clemens have benefitted from Malaysia’s supportive policies, manufacturing ecosystem, world-class infrastructure, competitive talent pool and intellectual property protection.

He explained that the OSC recently enabled Schmidt + Clemens CEO Jan Schmidt-Krayer to enter Malaysia for three days in December last year as a short-term business traveller to help evaluate the company’s long-term plans within the region.

Schmidt-Krayer had described the whole process as having been managed professionally, and a MIDA representative escorted him at all times during his stay. He further expressed that the entire experience was smooth; accommodating his scheduled agenda perfectly and making it feel safe and convenient to travel during the current situation.

On that note, Arham said the OSC is pivotal in ensuring that Malaysia remains open for business.

“Not only does the OSC support economic growth, but it also balances public health and livelihoods, and strengthens Malaysia’s position as a competitive and preferred investment destination within Asia.

“Combined with Malaysia’s National Vaccination Programme, the OSC is playing an important role in Malaysia’s value proposition and ensuring a frictionless and productive flow of people, ideas and investment,” he added.

The application for business traveller entry will take three working days to process. As of April 23, a total of 10,788 long-term business traveller applications have been evaluated, with 93.0% (10,032 applications) recommended for approval.

Meanwhile, a total of 441 short term business traveller applications have been recommended for approval. For more information, contact the OSC Secretariat at [email protected].

Source: The Malaysian Reserve

MIDA’s One Stop Centre (OSC) enables seamless journey for business travellers

KUALA LUMPUR (April 23): The government has set up the Digital Investment Office (DIO) to facilitate digital investments in Malaysia.

In a joint statement, the Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC) said the establishment of the office was endorsed by the National Council of Digital Economy and Fourth Industrial Revolution (MED4IR) chaired by Prime Minister Tan Sri Muhyiddin Yassin.

The DIO is a fully-collaborative digital platform between MIDA and MDEC, which aims to create awareness of digital investments in the country and strengthen coordination among all investment promotion agencies (IPAs) in promoting and attracting new investments in this fast-evolving segment.

According to MIDA and MDEC, the office will cater for rapidly-growing demand for digital infrastructure, with a goal of anchoring global technology leaders, building local champions and nurturing future-ready talent in Malaysia.

“In the long term, with the shift in the global digital landscape, the government anticipates the DIO to play a vital role to position Malaysia as the preferred digital hub and firmly establish Malaysia as the Heart of Digital ASEAN in the Southeast Asian economic region,” the statement read.

Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali called the establishment of the DIO timely and in line with the evolution of the investment landscape in the region towards digitalisation and Industry 4.0 — as it will create a unique value proposition for upcoming digital investments.

“We are optimistic that with this structured governance of investment promotion and facilitation, Malaysia’s digital ecosystem will be further strengthened and primed for the future, ensuring that the country remains competitive on the path of post-Covid recovery,” he added.

Meanwhile, MIDA chief executive officer (CEO) Arham Abdul Rahman said the DIO builds upon Malaysia’s aspirations to position itself as a digital hub in the region.

“In the long run, this will enhance Malaysia’s competitive advantage, offering undeniable pull factors for investors, both foreign and local alike,” he said.

MDEC CEO Surina Shukri, on the other hand, said the DIO is a significant milestone for investment facilitation, which combines MIDA’s global infrastructure with MDEC’s expertise in the digital economy ecosystem to draw high-quality digital investments to benefit local businesses and people, in line with MDEC’s agenda of Malaysia 5.0.

Source: The Edge Markets

MIDA and MDEC set up Malaysia’s Digital Investment Office

KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) welcomes Microsoft Corp’s plan to establish its first datacentre region in Malaysia which is set to accelerate the nation’s innovation in cloud technologies.

The government’s principal investment promotion and development agency is confident that Microsoft’s Bersama Malaysia initiative will be a game-changer towards the country’s digital-first agenda in line with the nation’s MyDigital aspirations, while boosting local and foreign investors’ confidence in Malaysia.

Mida chief executive officer Arham Abdul Rahman said Microsoft’s investment with its first datacentre region in the country is a strong testament to Malaysia’s pro-business, pro-trade and business-friendly investment policies.

“Having Microsoft, a global technology player, expanding its footprint in the digital infrastructure in Malaysia helps form the backbone for a sustainable digital ecosystem.

“Most importantly, Microsoft’s commitment through its world-class digital infrastructure will position us in a higher rank to progress into a digital nation,” he said in a statement today.

Mida said the upcoming Microsoft datacentre region is expected to benefit local businesses, the government and communities across all sectors, and users are able to gain fast access to Microsoft’s leading-edge cloud services as well as the ability to store data and applications in the country.

The local datacentre region will comprise a set of datacentres located within Greater Kuala Lumpur, deployed within a latency-defined perimeter and connected through a dedicated low-latency network.

“We will continue to support Microsoft’s efforts in Malaysia, particularly in transforming the nation’s digital landscape, infrastructure and its skilled workforce, thus enhancing Malaysia’s competitiveness and attractiveness as the preferred destination for high-technology investments,” said Arham.

Meanwhile, Microsoft Malaysia managing director K. Raman said: “We are humbled by the support extended by Mida and we look forward to strengthening our partnership to realise Malaysia’s inclusive digital aspirations.”

Microsoft’s Bersama Malaysia initiative was launched by Prime Minister Tan Sri Muhyiddin Yassin on Monday with the first datacentre costing at least $1 billion ($1= RM4.1180) over the next five years.

The establishment is expected to create 19,000 jobs, including 4,000 IT-related jobs among its cloud users.

Source: Bernama

MIDA welcomes Microsoft’s plan in ‘Bersama Malaysia’ initiatives

KUALA LUMPUR (April 14): The Malaysian Industrial Development Finance Bhd (MIDF) has signed a memorandum of understanding (MoU) with the Malaysian Investment Development Authority (MIDA) to offer small and medium enterprises (SMEs) and mid-tier companies (MTCs) the opportunity to benefit from MIDA’s Smart Automation Grant (SAG).

MIDF group managing director Datuk Charon Wardini Mokhzani said the MoU underlines the close relationship between MIDA and MIDF and their joint commitment to support companies that aspire to automate and modernise.

“As a nation, we need to increase productivity and value-add Malaysian businesses to higher levels in our path towards a high-income nation. Investing in automation and digitalisation is one way to achieve this,” he said in a statement today.

According to the statement, the collaboration aimed to promote and facilitate the SAG’s utilisation through a strategic alliance.

“Under this alliance, MIDA will provide grants for qualified companies, whereas MIDF will offer financing to these companies for their remaining expenses.

“Additionally, qualified companies already enjoying financing facilities from MIDF may lower their financial commitment upon successful application for SAG,” it said.

It said the SAG initiative, introduced in the National Economic Recovery Plan (PENJANA) with an initial allocation of RM100 million, was launched by the Senior Minister and Minister of International Trade and Industry (MITI) on Dec 2, 2020.

MIDF said the grant is awarded to eligible SMEs and MTCs on a matching basis or 50% of total eligible expenditures, up to a maximum grant cap of RM1 million per company.

“Based on the encouraging response for SAG, the government announced an additional RM50 million fund under the Strategic Programme to Empower the People and Economy (PEMERKASA) to drive more SMEs and MTCs to improve their operation and production through automation and digitalisation,” it said.

It said SMEs and MTCs that have been undertaking manufacturing or services activities in the past 12 months are eligible to be considered for SAG.

“The automised machine, equipment or software purchased through this grant must be utilised directly in the company’s value chain in order to qualify for the incentive,” it said

It said the improvements in two components — productivity and efficiency — will be assessed on a range of criteria such as reducing unskilled workers, man-hours, defect rate and the increase in production volume.

“Interested companies are advised to submit applications to the various industries and services divisions in MIDA,” it added.

Source: Bernama

MIDF partners MIDA to promote smart automation grant to SMEs, MTCs

KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) is maintaining a positive outlook on research and development (R&D) investments in line with the cautiously optimistic investment climate at present amid the Covid-19 pandemic, said chief executive officer Arham Abdul Rahman.

He said that R&D investments are a strategic cornerstone for companies to grow and thrive in both good and bad economic times, and that by continuing to invest in R&D, companies will be better prepared to face the recovery phase of a crisis.

“Based on previous studies conducted over multiple recessions, companies that are investing heavily in R&D will grow, whilst competitors that reduce investment in R&D will face a greater risk of business decline, ” he said in his welcoming remarks during the Research and Development for Business (RD4B) programme organised by MIDA yesterday.

Arham also stressed that R&D has become among the most important elements for the industry to grow, develop, and innovate, and businesses are highly encouraged to tap into R&D to improve business processes, reduce the cost of doing business and and gain invaluable competitive advantages.

Meanwhile, citing the 2020 edition of the Global Innovation Index (GII), he said that Malaysia ranked second among the top three innovation economies in the upper middle income group while, overall, the country achieved 33rd placing.

“This has put Malaysia ahead of all its Asean peers, second only to Singapore, and Malaysia is tops in high-tech net exports globally, ” he added.

Last year, Mida approved 199 R&D-related projects with capital investments of RM3.1bil which were expected to create 6,949 high-skilled jobs.

“This involves 30 R&D companies, 80 contract R&D companies, 46 companies with in-house R&D facilities, 26 R&D status companies and 17 national strategic R&D projects, ” he said.

Arham said among the top sectors were electrical and electronics, auto and transport, machinery and equipment as well as chemical and chemical products.

Source: Bernama

MIDA positive on R&D investment outlook

KUALA LUMPUR (April 12): Malaysian companies must innovate and increase their value proposition through research and development (R&D) to compete in the market, as only 3.5% of Malaysian firms have introduced new products in the last three years, said Malaysian Investment Development Authority (MIDA).

Its executive director strategic planning (manufacturing) Choo Wai Meng, citing The World Bank Report titled “Aiming High – Navigating the Next Stage of Malaysia’s Development” released in February, said the figure was significantly lower than the regional comparatus of 20% and aspirational comparatus of 33%.

“Malaysian firms are not innovating using R&D like in the top economies and that makes us vulnerable to technology systematic shift that affects the global market,” she said in her closing remarks during the R&D Business (RD4B) programme organised by MIDA today.

She also stated that Malaysia may face creative disruptions because the country has nearly exhausted its growth potential due to capital accumulation, and that failure to innovate new products will result in its products being unable to compete due to market saturation.

“Malaysian companies stay as imitators in the long run would have consequences and Malaysian companies cannot compete on low-cost factor anymore, it must turn to knowledge and innovation-based business growth.

“Through R&D, it could drive nurturing knowledge-based economy, which is driven by intellectual asset that provides economic returns, and it is hard to achieve innovation-based business growth impact, if it is dependent on foreign technologies and expertise,” she said.

Meanwhile, The World Bank report also revealed that in recent years, while R&D expenditure in proportion to gross domestic product (GDP) has been increasing, it is still considerably lower than in transitional and aspirational countries. 

In Malaysia, most R&D activities are conducted by business entities rather than research institutes or higher education institutions, with business R&D in proportion to GDP higher than that of transitional comparators but lower than that of the aspirational comparators.

Source: Bernama

MIDA: Malaysian firms vulnerable to global technological shift due to lack of R&D

KUALA LUMPUR: The government has agreed to provide certain relaxation of conditions to manufacturing and services companies that have been approved with incentives under the purview of the Malaysian Investment Development Authority (Mida).

In a statement today, Mida said this was part of the proactive measures undertaken by the government to continue Malaysia’s economic revitalisation efforts by facilitating investments and restoring investors’ confidence.

“The government hopes that this measure will further assist in supporting and stimulating the growth of the manufacturing and services sectors in Malaysia given the onset of the Covid-19 pandemic and the enforcement of the Movement Control Order (MCO) which have challenged economic activities and businesses,” it said.

Under the normal procedure, the approved companies are required to comply with certain conditions and implement their approved projects within a specific period, as stipulated in the approval letters issued by Mida. 

With the relaxation, a company may be considered for certain relaxations on achieving the approved thresholds or meeting the implementation timeline of their approved projects, subject to compliance of identified criteria set by the government. 

The relaxation of compliance with stipulated conditions was for between 2020 and 2021, Mida said.

The agency said to leverage the facility, companies must submit their soonest requests to it with relevant supporting documentation based on the prevailing policy decisions set by the Ministry of International Trade and Industry as well as the Ministry of Finance.

Investors are encouraged to submit their appeal applications on relaxation or amendment of incentive conditions to the relevant divisions for specific industries and services in Mida.

Source: NST

Malaysia relaxes certain conditions for manufacturing, services firms

KUALA LUMPUR (April 1): Malaysian Investment Development Authority (MIDA) former deputy chief executive officer (CEO) Arham Abdul Rahman has shifted up to assume the role of CEO.

The appointment takes effect today.

He replaces Datuk Azman Mahmud who served MIDA for 32 years.

MIDA said Arham has an outstanding track record and highly distinguished career, spanning over three decades with MIDA.

“He has served primarily in the foreign investment arm of the organisation, with years of service in Germany and the United States.

“His experience as a MIDA frontliner for attracting and facilitating foreign investments into the country, gives him the unique proposition to lead MIDA in the new norm,” it said in a statement, today.

In its tribute to Azman, MIDA said during his leadership, it had actively advised on, recommended and implemented policies, strategies and directions for Malaysia’s manufacturing and services sectors.

“Working together with all levels of stakeholders including governmental counterparts, foreign and local business communities, as well as academia and training partners, MIDA has consistently achieved yearly investment targets of RM200 billion between 2014 to 2019,” it said.

It said the Covid-19 pandemic had presented unanticipated challenges but with Azman at the helm, MIDA and industry stakeholders managed to navigate the uncertainties, together with the Ministry of International Trade and Industry.

“MIDA was instrumental in the evaluation process during the initial Movement Control Order implementation and provided pertinent inputs for the drafting of policies and strategies in the government’s plan to revive Malaysia’s economy, to ensure that the nation’s industries remain sustainable and the livelihoods of people are protected,” it said.

It said Azman had also led MIDA in actively re-engineering MIDA’s business processes to keep up with innovative and agile ways of working in this age of digitisation.

“The increased efficiency of the various functions of the organisation will enhance core business activities and visibility, as well as strengthen the strategic planning and policy advocacy capacity.

“This was particularly crucial during the pandemic, as MIDA remained resilient and responsive in providing advice and support to the existing and potential investors, despite the international border closures and restrictions in movement and gathering imposed,” it added.

In 2020, MIDA successfully held over 500 online engagements with local and foreign stakeholders to update them on the latest policy changes in the wake of the pandemic, through various online platforms and digital tools to ease investors’ concerns and sustain confidence in Malaysia.

Source: Bernama

Arham Abdul Rahman helms position as new MIDA CEO

The Malaysian Investment Development Authority’s (MIDA) online application submission portal, InvestMalaysia Portal, is now open to the public.

Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the InvestMalaysia Portal would help meet investors’ expectations through optimised process automation and seamless data capturing and analysis.

As Malaysia adapts to the new normal, he said MIDA’s role has been more crucial than ever in helping businesses thrive and create a better future for the country.

“We can expect a more efficient evaluation, an automated approval process and easier information sharing at a single entry point.

“We will also get live investment updates, real-time visibility of investment projects, undertake more informed decision-making, and real-time reporting,” he said in a statement today.

Mohamed Azmin said this centralised data warehouse would allow making faster and more accurate analysis through automated dashboards that enable enhanced key performance indicators monitoring functions in meeting the client charter.

Meanwhile, MIDA said the portal focuses on transforming its core business functions towards improved efficiency and productivity by embracing an integrated technology system to expedite the application and approval process, as well as further allowing companies to speed-up project implementation.

“To-date, the digital platform offers 10 modules for online application submission and serves as a single entry point for stakeholders via Investmalaysia.mida.gov.my microsite,” it said, adding that the portal was operational since March 26, 2021.

Among modules available are the enhanced manufacturing licence, exemption letter from Manufacturing Licence, enhanced incentive, expatriate posts and representative office/regional office, import duty/sales tax exemption, MIDA confirmation letter, and domestic sales.

“MIDA has set up a dedicated customer service unit (CSU) that comprises a verification team to receive clients’ applications and a specialised team with investment-related experience to answer customers’ enquiries related to applications, facilitation and project implementations.

“The CSU is anticipated to improve the user confidence in the system and provide a better experience to the companies, internal users, as well as external agencies,” it said.

MIDA added that through the implementation of an end-to-end automation application process, it aims to aspire shorter processing timeline, improve client charter commitment for investors, and complete digital transformation goal in supporting the industry’s current and future needs.

Source: Bernama

MIDA’s InvestMalaysia Portal goes live

A Business Travellers Centre (BTC) has been set up at the Kuala Lumpur International Airport (KLIA) to facilitate the entry of foreign business travellers into Malaysia.

International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the BTC was one of the main components under the government’s One Stop Centre (OSC) initiative to ease the movement of business travellers by expediting their entry into the country for business purposes.

The BTC provides a seamless support system for short term business traveller by providing fast-track services such as the reverse transcription polymerase chain reaction (RT-PCR) swab test where the results could be obtained within three hours.

“After being declared healthy, business travellers can proceed to the immigration lane and the government will appoint a liaison officer for them with a specific business itinerary,” he told reporters after launching the BTC at KLIA, here, today.

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

Azmin said, to date, the OSC has approved 93 applications from investing companies for short term business travellers with total investments valued at RM15 billion.

He said the BTC plays a vital role in ensuring that Malaysia remains an attractive investment destination for foreign business.

“In the past year, we have adopted new ways, including the virtual approach in conducting discussions to attract foreign investors. However, it is more effective to negotiate if we meet face-to-face,” he said.

Azmin said the BTC had been modelled on lessons and practices in Singapore, South Korea and the European Union.

The senior minister said the launch of the BTC marks a major milestone in the government’s unwavering mission to revive the economy and pave the way for the economic rebound in 2021.

“We know the pandemic is on-going, but we are now better at managing risks and have better knowledge and experience in managing the delicate balance between health and economy,” he said.

Source: Bernama

KLIA’S BTC to facilitate foreign business travellers

The Malaysian Investment Development Authority (MIDA) is intensifying its efforts to attract high quality investments to boost Malaysia’s status as a globally competitive trading nation despite the Covid-19 health crisis.

As the Government’s principal investment promotion agency under the International Trade and Industry Ministry, MIDA recognises the challenges in the global business landscape – including regional and new emerging economies – and has undertaken various strategies to address the issues.

MIDA chairman Datuk Abdul Majid Ahmad Khan (pic) said Malaysia has adopted selective and targeted approaches to bring in high quality investments.

“We no longer have this idea of investment based on labour intensive projects because we are facing more competition, and there are new emerging centres attracting such foreign investment. We don’t promote low end assembly-type operations anymore, ” he said in a virtual interview.

On quality investments, he emphasised that the priority is on projects that are high-value added, high technology, knowledge-intensive, research and development and design (R&D&D), skills-intensive, and provide high income jobs.

“For research, we have incentives for multi-national corporations (MNCs) to conduct their R&D in Malaysia, then we can learn and acquire knowledge. “We must also have strong linkages with domestic industries and generate multiplier effects to support us in picking up our ecosystem so that prosperity can be shared as we upgrade our skills to meet the requirements of the companies (investing in Malaysia), ” he said.

Other quality investments include projects which are able to, among others, develop new growth areas, introduce new and emerging technologies, and transform Malaysia into a regional and global production and service hub.

“Despite the international border closures and strict standard operating procedures in place worldwide to contain the spread of Covid-19, MIDA continues to be responsive in undertaking innovative and aggressive promotion activities to entice foreign direct investment (FDI) through its 20 overseas and 12 regional offices, ” Abdul Majid said.

He explained that Malaysia recorded total approved investments of RM164.0bil last year, of which domestic direct investment (DDIs) accounted for RM99.8bil (60.9%) whereas FDI accounted for RM64.2bil (39.1%). The total investments approved are for 4,599 projects which are expected to create 114,673 jobs.

In 2020, the manufacturing sector accounted for 55.7% of these investments at RM91.3bil, followed by the services sector (RM66.7bil/ 40.7%) and the primary sector (RM6.0bil/3.6%).

This year, MIDA expects investments in high-tech manufacturing, global service centres, Principal Hub, healthcare, education, logistics, green technology and R&D.

“MIDA will continue to be at the forefront to entice more quality investments in the areas of technology and innovation to position Malaysia as an alternative supply chain hub in Asia.

“Through policy reviews and targeted approaches, the Government will ensure that Malaysia remains as the preferred investment location with a favourable environment for quality investments in Asia, ” said Abdul Majid.

In this regard, the key strategic directions are:

> New sources of investment opportunities (green field) by leveraging on the megatrends in development, digital economy, ecommerce and Industry 4.0.

> Niche technologies within existing industries by identifying the gaps and completing the value chain.

> Drive existing companies (brown field) to reinvest in high value-added products and undertake high value activities or services.

> MIDA’s Lighthouse Project concept to enable MNCs and local corporations that successfully gain from Industry 4.0 transformation to guide and support Malaysia’s local manufacturing industries to also implement the Fourth Industrial Revolution processes in gaining business traction.

On Industry 4.0, Abdul Majid said: “I think the Covid-19 situation has changed the industry’s perception on the importance of utilisation of automation. This has affected the attitude and help to expedite (the technology adoption process).”

He said that to date, 382 companies in the manufacturing sector have been granted automation capital allowance – another major incentive programme to encourage domestic companies to undertake automation and machine upgrading.

Currently, there are RM65.9bil worth of potential investments in the pipeline in the manufacturing and services sectors under MIDA’s purview, he said. This involves 1,043 projects in high technology industries such as advanced electrical and electronics (E&E) and aerospace; halal industry; creative industry; biomass industry; and agriculture industry (relating to smart farming) which have huge prospects in generating high value-added activities and products as well as creation of high-skilled employment opportunities for Malaysians.

Abdul Majid hopes that the Covid-19 health crisis will be contained soon and the majority of the projects in the pipeline can be realised with proactive actions taken through MIDA’s Project Acceleration and Coordination Unit (PACU) which liaises with the related companies and stakeholders.

PACU also provides advisory services to start-ups and conglomerates through its one-stop centre concept, whereby investors are encouraged to discuss the challenges faced during operations and seek much-needed clarification and advice on government guidelines and procedures.

Additionally, MIDA through its e-TRANS system has launched and enhanced several online modules – namely faster approval for applications for e-manufacturing licence, e-incentive, and import duty and/or sales tax exemption– to expedite the execution of projects.

Among others, the Government undertook a major initiative last year to bolster investment and cushion the impact of the pandemic through its four economic stimulus packages – Prihatin, Prihatin SME Plus, Penjana and Kita Prihatin – which involved total allocation of RM305bil. This has also provided a boost for MIDA’s efforts.

Besides that, MIDA’s incentives to encourage automation among companies through its Smart Automation Grant, Domestic Investment Strategic Fund (DISF), Digital Transformation Accelerated Programme, Industry4WRD Intervention Fund and Automation Capital Allowance are expected to drive further potential investments for Malaysia.

To date, MIDA has approved grants totalling RM2.1bil under the DISF since the fund was established in July 2012. The allocation involved 407 projects with investment value of RM18.4bil.

Abdul Majid said MIDA is fully optimising the Malaysia Digital Blueprint (2021-2030) or MyDigital, and Industry 4.0 (automation) mechanism introduced by the Government to drive quality investments.

Since 2017, the Government initiated the National E-Commerce Strategic Roadmap, and in 2018 the Industry4wrd policy has accelerated Malaysia’s digital adoption in businesses, education and societies. This helps the nation’s industries – from manufacturing, healthcare, electrical and electronics to ecommerce – digitise to support the country’s recovery.

In line with the Government’s aspiration, MIDA has put in place a comprehensive and competitive facilitation and investment schemes to continue to attract more high quality investments into the country.

He said the Government recognises the need to develop high-technology sectors as one of the strategies to sustain the momentum of economic growth as well as to improve the competitiveness and resilience of the Malaysian economy.

“We continue to attract quality investments with greater specialisation in the 3+2 catalytic sectors highlighted under the 11th Malaysian Plan, namely the E&E, machinery and equipment, chemicals, aerospace and medical devices industries, as well as other potential new growth areas.

“We hope that these five industries will raise us to achieve high income nation status, and also supports the country’s Shared Prosperity Vision 2030, ” he said.

On the approval of companies seeking various incentives, he said: “We want to make sure there is a transfer of technology. These companies collaborate with our institutions of higher learning where our researchers or people are attached to or employed by them to increase the transfer of technology. We want local companies to emerge as national champions.

“We have done well in the rubber and rubber products sector. We have produced world champions in glove production. We have four to five Malaysian glove companies supplying 80% of world requirement, ” he said, adding that MIDA hopes the E&E and semiconductors providers could achieve similar success.

“We have several Malaysian players who produce components and are service providers; they were national champions, and then became global players. If we can do this, I think we have reaped success on the foreign investments in terms of high technology, ” he said.

MIDA’s relentless efforts in promoting the domestic investment ecosystem has translated into the formation of a dedicated unit named the Domestic Investment Coordination Platform (DICP), which plays a significant role in providing the missing link between businesses, funding, technology and research capability.

Another notable initiative by MIDA was the setting up of a one-stop centre last Oct 2 to ease the movement of business travellers by expediting the approval of their entry into Malaysia to carry out their business activities.

The strong presence of FDI brought in by MIDA since the early days of the country’s industrialisation has helped to upgrade and diversify the range of products and services and promoted the growth of the local supply chain ecosystems and related services industry. Today, over 5,000 companies from more than 40 countries have made Malaysia their location for manufacturing and related services operations.

“Malaysia is also the gateway to Asean, which has a market of over 620 million people. We as a member of Asean should leverage the strength of other nations for the business community to tap into.

“We are optimistic that with vaccination, we can return to production and help to create demand and put the whole cycle into play, ” said Abdul Majid.

“Our hope is that entrepreneurs and the private sector will respond positively to the Government’s initiatives – the various incentives, new processes introduced for ease of business and utilisation of Industry 4.0. It is a major step to restart the economy and also bring Malaysia to the next level.”

Source: The Star

MIDA eyes quality investments

Malaysian Investment Development Authority (Mida) and UMW Holdings Bhd’s wholly-owned UMW Corporation Sdn Bhd have formed a partnership to drive high-value quality investments into Malaysia.

Mida chief executive officer Datuk Azman Mahmud said Malaysia’s investment landscape would likely remain challenging in the backdrop of the pandemic.

The collaboration with UMW Holdings would facilitate the nation’s industrial ecosystem with the much needed infrastructure and new technologies, Azman added.

“Mida trusts that through UMW Holdings’ vast industry expertise and network, the country’s local players and technology providers could benefit in the global supply chain network.

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

The two parties will capitalise on each other’s capabilities and strengths to explore potential key areas of collaboration to attract investments that would create value to the nation’s economy.

This includes mobility, aerospace, machinery and equipment, manufacturing and engineering, talent training, research and development as well as industrial land development.

The companies said the collaboration be a stepping stone to accelerate innovative and high-value industry stakeholders to seize opportunities arising from the technology revolution in the new norm.

UMW Holdings president and group chief executive officer Datuk Ahmad Fuaad Kenali said it was embarking on a transformation journey to strengthen its businesses through innovation and technology as key enablers to meet the challenges of the evolving business environment.

Fuaad said the group was constantly exploring and evaluating relevant opportunities to expand and grow its businesses to meet the anticipated future demand.

“A strong collaboration between government agencies and private sectors is paramount in positioning Malaysia as an attractive investment destination,” he added.

Last year, Malaysia recorded RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors.

The investments are expected to create 114,673 new jobs once implemented.

Mida has also identified high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sectors.

Negotiations are on-going with companies from various sectors such as automotive, chemical, and advanced electronics to make Malaysia their high-value manufacturing, services and global supply chain hub.

Source: NST

MIDA, UMW Holdings in alliance to attract high-quality investments

KUALA LUMPUR: The government is welcoming business travellers with the launch of Malaysia’s Safe Travel portal which is designed to facilitate the entry of business travellers into the country.

In a statement, the Malaysian Investment Development Authority (MIDA) said the portal, which is fully operational effective today, contains information and advisory services for both short- and long-term business travellers.

Short-term business travellers, that is those who are not holding any passes and intend to stay in the country for 14 days or less, may be considered for exemption from mandatory quarantine, subject to the approval of the One Stop Centre (OSC) Committee and adherence to strict standard operating procedures (SOPs).

Short-term business travellers are categorised as potential investors seeking to do business in Malaysia; existing investors such as business owners, board members, executives, and associates of companies in Malaysia (without Employment Pass); business customers for product qualification and validation before commercial production; and technical experts for ad-hoc emergency cases to serve single or multiple customers across Malaysia.

MIDA said business travellers from the four categories may also apply for Social Visit Pass under long-term business travellers should they plan to stay for more than 14 days in the country.

“Short-term business travellers are required to submit the online application 14 days in advance of planned travel,” it said.

Meanwhile, for long-term business travellers with valid passes and intend to stay in the country for more than 14 days, they will be subject to mandatory quarantine as per the Ministry of Health’s (MoH) guidelines.

They are categorised as new or existing expatriates stranded abroad, namely active holders of Employment Pass and Resident Pass-Talent and new or existing foreign technical experts stranded abroad with Professional Visit Pass to serve multiple customers across Malaysia.

Additionally, they are frequent foreign business travellers (exit and return), permanent resident pass holders, Malaysia My 2nd Home Social Visit pass holders, frequent Malaysian business travellers (exit and return), and Social Visit pass holders.

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

Both short- and long-term business travellers may apply for entry permission through the dedicated portal at URL: https://safetravel.mida.gov.my.

MIDA said the portal is a critical component of the OSC initiative that has been set up by the Malaysian government effective Oct 2, 2020, to ease the movement of business travellers by expediting their entry to do business in Malaysia.

“The centre assumes a vital role in ensuring that Malaysia remains steady on its economic recovery and growth while balancing public health and livelihoods, and strengthen the nation’s position as a competitive and preferred investment destination in Asia,” it said.

The OSC is represented by the Ministry of International Trade and Industry (MITI), MIDA, MoH, and the Immigration Department to ensure the legitimacy and health status of business travellers before they enter into the country.

The initiative is also a joint collaboration between MIDA, Ministry of Foreign Affairs, Malaysia Airports Holdings Bhd, Malaysia Airlines Bhd, and Talent Corporation Malaysia Bhd.

Source: Bernama

Malaysia’s Safe Travel Portal welcomes business travellers

KUALA LUMPUR (March 2): The Malaysian Investment Development Authority (MIDA) said it had RM65.9 billion worth of potential investments being actively evaluated as at December 2020.

Once approved, these projects are expected to be implemented in 2021 to 2022, it said in a statement today.

MIDA has also identified 240 high-profile foreign investment projects, which include Fortune 500 companies in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion.

“These include ongoing negotiations with companies from various sectors, such as automotive, chemical and advanced electronics, to make Malaysia their high-value manufacturing, services and global supply chain hub,” it noted. 

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors of Malaysia.

Senior Minister and Minister of MITI Datuk Seri Mohamed Azmin Ali said the government, through MIDA, continued to be at the forefront to entice more high-value investments in the areas of technology and innovation to position the country as an alternative supply chain hub in Asia.

“Investors will undeniably derive value by tapping on Malaysia’s well-established local supporting industry network and talented workforce to undertake high-tech product manufacturing and high value-added services to serve their clients in the region in the present and the future,” he said.

The minister said Malaysia continued to be a competitive investment destination despite the current uncertainties, proven by its rankings in the global economic scene.

The DHL Global Connectedness Index (GCI) 2020 positioned Malaysia in the second place among the Asia-Pacific countries and 16th out of 169 countries for trade connectivity, he said.

Furthermore, a joint study by KPMG and The Manufacturing Institute in the US entitled “Cost of Manufacturing Operations around the Globe” also ranked Malaysia fourth among 17 economies in an assessment comparing the economy’s competitiveness as a manufacturing hub.

This positioned Malaysia ahead of countries in Asia such as China, Japan, Vietnam and India.

Other than that, Malaysia was ranked 12th in the World Bank’s Doing Business 2020 and 27th in the IMD World Competitiveness 2020, according to Azmin.

Despite the ongoing international border closures and strict governmental standard operating procedures (SOPs) due to the Covid-19 pandemic, MIDA continued to be responsive in providing advice and support to existing and potential investors through its established footprint of 20 overseas and 12 regional offices as it had been at the forefront to entice investments through innovative and aggressive investment promotion activities.

Additionally, Azmin said the government’s unveiling of the Malaysia Digital Economy Blueprint (MyDigital) will also further accelerate the country’s progress to becoming a technologically-advanced economy.

“The 10-year road map will lay the foundations for the country’s transformation towards an advanced digital economy, and guide MITI and MIDA in our efforts to continue attracting high-value investments of the future,” he added.

Source: The Edge Markets

MIDA has nearly RM70b worth of potential investments being actively evaluated

KUALA LUMPUR: Capital intensive projects involving advanced technology and skilled workforce dominated the manufacturing landscape last year, said the Malaysian Investment Development Authority (MIDA).

The agency said this was reflected in the increase of capital investment per employee (CIPE) to RM1.138 million in 2020 from RM1.052 million in 2019.

“(This is) in line with Malaysia’s move towards sophisticated technology industries,” it said in a statement today.

Furthermore, a total of 101 manufacturing projects were approved with investments of RM100 million and above, MIDA said.

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

Overall, the manufacturing sector recorded approved investments of RM91.3 billion for 2020, an increase of 10.3 per cent from 2019, while the number of manufacturing projects approved rising 6.2 per cent to 1,049 projects.

Senior Minister Datuk Seri Mohamed Azmin Ali, who is also the International Trade and Industry Minister, said investments in three catalytic manufacturing sub-sectors, namely, electrical and electronics, machinery and equipment, and chemical, as well as two high growth areas – aerospace and medical devices – had been outlined within the 11th Malaysia Plan (11MP).

These constitute more than one-third (38.6 per cent) of the total approved investments in the manufacturing sector, with investments valued at RM35.2 billion in 2020, he said.

“As 2020 marked the end of the 11MP, the government is currently finalising the 12th Malaysia Plan (12MP), and this post-2020 blueprint will pave the way for Malaysia’s development agenda over the next decade,” he said.

Mohamed Azmin said the government was optimistic that 12MP would chart the way to further enhance Malaysia’s industrial competitiveness strategies in essential and key industries for sustainable economic transformation.

“This will elevate our manufacturing and the services sectors to the next level of sophistication and complexity in the new normal post-COVID-19 and beyond,” he said.

In terms of the services sector, Mohamed Azmin said in 2020, Malaysia’s proposition as a hub for business and investment for the services sector attracted a total of RM66.7 billion in approved investments through 3,527 approved projects, accounting for 40.7 per cent of the total approved investments in the economy.

“These approved services projects are expected to create 33,652 jobs to the economy,” he said.

According to MIDA, domestic direct investments dominated the total approved investments in the services sector, contributing RM60.2 billion (90.3 per cent), whereas foreign direct investments made up the remaining RM6.5 billion.

The agency said the majority of the main services sub-sectors showed a significant decline in approved investments, except for the Multimedia Super Corridor (MSC)-status projects and other services such as BioNexus status and software developments.

“The top five five contributors of approved investments in the services sector were real estate (RM31.2 billion), utilities (RM10.8 billion), support services (RM5.2 billion), telecommunications (RM5.2 billion) and MSC-status projects (RM3.9 billion),” it said.

Meanwhile, MIDA said the primary sector registered approved investments of RM6 billion last year versus RM7.0 billion in 2019, with the mining sub-sector leading the bulk of investments in the primary sector, contributing 99.5 per cent of total investments approved in the sector.

“The rest of the primary sector investments comprise the plantation and commodities subsector and the agriculture sub-sector, which registered investments of RM27 million and RM2.4 million, respectively,” it added.

Source: Bernama

MIDA: Capital intensive projects dominate manufacturing landscape in 2020