Source: NST

Malaysia a leader in medical device industry

The Malaysian economy is facing the challenge of a rapidly changing industrial landscape due to the emergence of Industry 4.0.

Industry 4.0, also known as the Fourth Industrial Revolution (IR4.0 or 4IR), calls for a shift in how industries operate, focusing on increased automation and data exchange in manufacturing technologies.

This changing industrial landscape presents opportunities for Malaysian industries, especially small and medium enterprises (SMEs), to invest in and adopt new technologies and processes in order to become more competitive and efficient.

IR4.0 to boost the economy

SMEs’ contribution to the country’s exports accounted for only 12 per cent in 2021 compared with the target of 25 per cent in the 12th Malaysia Plan (12MP), while their contribution to the nation’s gross domestic product stood at 37 per cent in 2021 versus the 45 per cent target in the 12MP.

Hence, there is a need to encourage SMEs to embrace IR4.0 to maximise their potential and make a bigger contribution to the country’s export value and eventually become the engine of economic growth, according to the Malaysian Investment Development Authority (MIDA) executive director of investment policy advocacy (manufacturing) Masni Muhammad.

“In terms of operating and labour costs, we have an incredible opportunity to leverage IR4.0 and the latest technology to stay competitive with our regional friends such as Vietnam, Indonesia and Thailand.

“By investing in the latest machines and adopting technology, SMEs can increase their productivity and remain competitive in the global market. Let us take advantage of this incredible opportunity for growth and success,“ she told Bernama.

To ensure that Malaysia gets the optimum benefits from IR4.0, Masni said the government had launched the National 4IR Policy in July 2021, in anticipation of emerging developments as well as to provide guidance and promote coherence in achieving the 4IR agenda.

The 4IR policy complements the Malaysia Digital Economy Blueprint (MyDIGITAL) in driving the digital economy development agenda.

Financial support facility for SMEs

As part of the coordinated IR4.0 strategy, the Ministry of International Trade and Industry has appointed MIDA as the implementing agency for the financial support facility known as Industry4WRD Intervention Fund.

The fund will provide eligible SMEs with a grant of up to RM500,000 on a matching basis (70:30), based on eligible expenditures.

A maximum of 30 per cent of the matching amount (out of 70 per cent of the total grant) will be awarded upfront to the companies, and the remaining grant will be reimbursable.

Masni said 281 SMEs were approved to receive the financial support facility from 2020 until 2022, with a total grant value of RM101.4 million.

Out of the total, 82 SMEs were approved for the fund in 2020, 111 in 2021 and 88 in 2022.

Additionally, there is an incentive known as the Automation Capital Allowance (Automation CA), which encourages manufacturing and services companies to adopt automation and enhance their productivity through investment in automated machinery and equipment.

For this incentive, the government is providing an Automation CA of 200 per cent on the first RM4 million expenditures incurred for labour-intensive industries and 200 per cent on the first RM2 million expenditures for other industries, including services.

Strategic programmes to empower SMEs in IR4.0

MIDA has also formulated strategic programmes to continue facilitating the establishment and expansion of multinational corporations (MNCs), large local companies (LLCs), and mid-tier companies in Malaysia.

Equipped with a structured and completed ecosystem in various industries, Masni said MIDA promotes strategic collaborations between domestic companies with MNCs and LLCs to become part of the local supply chains with technological capabilities.

“The MIDA-Perodua Digital Transformation Ecosystem Programme launched in 2020 has been essential in driving forward the capabilities of local automotive players in Malaysia.

“This initiative has enabled local players to remain competitive and keep pace with the ever-evolving automotive industry.

“Through a series of facilitation sessions, all vendors have started their digitalisation journey, which takes three years to complete the (IR4.0) projects,” she said.

Additionally, Masni said MIDA has collaborated with Malaysia Digital Economy Corporation (MDEC) since last year for the setting up of the Digital Investment Office (DIO) to coordinate and facilitate all digital investments in Malaysia, in line with the government’s aim to attract RM70 billion investments in digitalisation by 2025.

“The setting up of the DIO is timely and in accordance with the evolution of the global investment landscape towards digitalisation and IR4.0, creating unique and exciting value propositions for digital projects.

“The clusters of digital enablers including data centre infrastructure, artificial intelligence, cloud computing, and big data analytics expand opportunities for support services, skilled jobs and productivity upskilling among both large and small business communities,” she added.

Outlook

Masni said MIDA has put forward new proposals to the government, mainly to increase the adoption of technology and automation among domestic companies, especially SMEs.

“In terms of industrial development, the focus is on making sure that the SMEs adopt technology, reduce reliance on foreign workers and increase productivity.”

As the country advances, she said the SMEs should leverage and take advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership which was ratified by the government last year.

“Whenever we sign free trade agreements, there are benefits whereby we can enter other markets, expand our trades and export more, but it is undeniable that SMEs face specific challenges due to increasing competition, while some may not be adequately prepared.

“Hence, we need to improve our competitiveness which goes back to the adoption of technology, innovation, as well as research and development to expand their capabilities and increase performance,” she said.

Source: Bernama

MIDA continues to drive SMEs to adopt IR4.0

Malaysia is fortunate in that it has e and this will cushion the downturn expected from the slowing global growth. However, it is pertinent for Malaysia to reinvigorate its investment climate to ensure the country captures investment opportunities that arise from trade diversion due to geopolitical tension, including the US-China trade conflict and shifting global supply chains.

“In order to achieve this, MITI together with the agencies like MIDA seeks to target policies and initiatives towards ensuring Malaysia aligns itself with the global economy needs and trends, as well as standards.  One of the major trends which need to be addressed is the adoption of ESG, where Governments worldwide have integrated issues such as climate change and carbon emissions, deforestation, labour standards and company governance and transparency into their trade policies. Global investors are also increasingly applying ESG factors when making investment decisions,” said MIDA Chief Executive Officer Datuk Wira Arham Abdul Rahman recently.

MIDA will support MITI in its initiative in developing the ESG Framework for the manufacturing sector which is targeted to be completed by 2024. The framework will guide and support companies in the manufacturing sector in accelerating the adoption of ESG principles. This will ensure Malaysia attracts investment, both FDI and DDI, which are ESG-driven and also strengthen the integration of local companies into the global supply chain.

Speaking to BusinessToday exclusively recently, Arham said MIDA will also target investment that addresses the current critical global needs, such as ensuring energy and food security due to the impact of the Russian-Ukraine war and inflation. In this perspective, MIDA will continue to accelerate investments in the adoption and development of clean energy sources and technologies, as well as support the development of the Halal and Smart Farming subsectors which were identified as strategic sectors under the Twelfth Malaysia Plan (12MP).

As Malaysia embarks on its journey towards greater digitalisation and sustainable development, more efforts need to be done to ensure we keep abreast with current trends to stay competitive in the future.

Malaysia’s manufacturing sector and its related services have been gearing up to adopt the Industry 4.0 module, to enable digitalisation and automation of its processes, enhancing its efficiency and long-term competitiveness on the global stage. This new-age approach allows for high-level integration of information, communication and systems by connecting multiple devices and machines at every step of the manufacturing process.

Industry4WRD is Malaysia’s response to the call for digital transformation by facilitating companies to embrace Industry 4.0 in a systematic and comprehensive manner, and be smarter and stronger driven by people, processes and technology.

There is a growing enthusiasm among businesses for Industry 4.0, and many are currently keen to acquire the knowledge and expertise needed for the transition. SMEs are the backbone of industrial development in the country and they are encouraged to embrace technologies that are brought about by Industry 4.0 which will significantly increase productivity and help ensure that the country remains competitive, he added.

Industry4WRD: National Policy on Industry 4.0

The National Policy on Industry 4.0 was launched by MITI on 31 October 2018 in collaboration with several other key ministries and agencies. Industry4WRD is tailored to Malaysia’s context and the needs of our industry to move forward by adopting Industry 4.0, focusing on manufacturing and manufacturing-related services.

Several important measures identified in the Policy include strengthening digital connectivity, enhancing the capability of the existing workforce and developing new talents and skills, improving data integrity and standards, intensifying research, innovativeness and technological development programmes and activities.

The Automation Capital Allowance (Automation CA) was introduced for the manufacturing sector in the National Budget 2015 and the services sector in the National Budget 2020. The main objectives of the Automation CA are to encourage manufacturing and services companies to adopt automation and enhance their productivity through an investment in automation machinery and equipment. The Government is providing Automation CA of: –

• 200% on the first RM4 million expenditures incurred for labour-intensive industries;
• 200% on the first RM2 million expenditures incurred for other industries including services.

MIDA has also formulated strategic programmes to continue facilitating the establishment and expansion of multinational corporations (MNCs) and local large companies (LLCs) as well as mid-tier companies in Malaysia. Equipped with a structured and completed ecosystem in various industries, MIDA promotes the strategic collaboration between domestic companies with MNCs and LLCs to become part of local supply chains with technological capabilities.

National Fourth Industrial Revolution (4IR) Policy

To ensure that Malaysia receives optimum benefits from 4IR, the Government, through the Economic Planning Unit, Prime Minister’s Department launched the National 4IR Policy on 1st July 2021 in anticipation of emerging developments. This Policy provides an overarching direction that gears the country for the 4IR. It guides and promotes coherence in achieving the 4IR agenda, besides managing potential risks that could arise from 4IR. The 4IR policy will complement the Malaysia Digital Economy Blueprint (MyDIGITAL) in driving digital economy development.

The National 4IR Policy has four (4) thrusts covering society, business and the Government:

• To equip the people with 4IR-related knowledge and skillsets.
• To form a nation with connectivity through the development of digital infrastructure.
• To provide appropriate rules for the future needs so that they are flexible according to technological changes.
• To accelerate innovation and adoption of 4IR technology.

Digital Investment Office (DIO)

The Digital Investment Office (DIO) is a fully-digital collaborative platform between MIDA and MDEC that was established on 22 April 2021. The main objectives are to coordinate and facilitate all digital investments in Malaysia, in line with the Government’s aim to attract RM70 billion investments in digitalisation by 2025.

As the Digital Economy is the engine of future growth for Malaysia, the setting up of the DIO is timely and in line with the evolution of the global investment landscape towards digitalisation and Industry 4.0, creating unique and interesting value propositions for digital projects.

DIO looks into elevating a broad range of industries through digital tech development and adoption. The clusters of digital enablers, including data centre infrastructure, artificial intelligence (AI), cloud computing and big data analytics will expand opportunities for support services, skilled jobs and productivity upskilling among both large and small business communities.

Driven by the National Investment Aspirations, the Malaysian Government, through the Malaysian Investment Development Authority (MIDA), will intensify its focus towards capturing investments in high technology, innovation and research-driven industries that will complement and further strengthen the Malaysian industrial ecosystem in sectors with significant economic potential and sustainable long-term growth such as the digital economy, electrical and electronics, pharmaceutical, chemical and aerospace.

Political stability is one of the many essential elements in attracting investment. It influences the economic policy direction and is a sign of clear commitment of a host country. Investors need signals of stability but also of commitment to an economic agenda in creating the right ecosystem in terms of investment policies, regulations, financial system and labour market.

It is important to focus on further strengthening Malaysia’s fundamentals in order to ensure the country’s sustainable economic development in the long term. These include strengthening the institutional framework and streamlining coordination of Government processes to facilitate ease of doing business, talent development initiatives to ensure a steady supply of high-skilled talent, and infrastructures such as digital connectivity and logistics infrastructure to support the supply chain and spur new business opportunities in Malaysia.

Source: Business Today

Malaysia’s Diversified Economy Will Lower Downturn Impact Amid Slowing Global Growth, Geopolitical Tension: MIDA

MIDA leads the way to facilitate, promote sustainable investment to champion the nation’s green agenda

Source: The Star

Future-proofing economic growth through sustainability

Investment prospects in Malaysia have risen dramatically because of the country’s prolonged economic interaction with the global economy.

“As the Malaysian economy undergoes transformation, we must continue to develop the people’s core competencies so that our workforce can compete effectively in the global economy for the benefit of the country, attracting high-tech investments and transitioning to new sectors of comparative advantage,” said Tan Sri Dr Sulaiman Mahbob, chairman of the Malaysian Investment Development Authority (MIDA).

He said the agency had launched measures to develop a future-ready workforce to meet economic difficulties and to maintain the country’s status as a leading investment destination in the region.

Combining these activities and a skilled labour force will increase international investment prospects, he said.

“We accomplished a great deal last year, setting new highs in approved investments across manufacturing, services, and primary sectors to the tune of RM309.4 billion.

“The investors would come if their investment situate in a clean environment with transparent regulations and if we work together with the government and business sectors to create a hardworking and productive workforce,” he told Bernama.

In order to attract more investments into the country, it is important to have political stability with clear direction coupled with a pool of skilled workforce.

He said the manufacturing sector would benefit from more investment since “the younger workforce is technically capable, and those in the field are keen to expand their abilities.”

Between January and September 2022, Malaysia succeeded in attracting RM193.7 billion worth of approved investments in the manufacturing, services, and primary sectors, involving 2,786 projects.

These projects are expected to create 98,414 job opportunities.

ESG Initiative To Attract Investments In The Digital Economy

“Our economy is open to cross-border investments and our expertise in developing projects is world-class. These factors will contribute to a rapid increase in digital infrastructure,” Sulaiman said.

He added that the government’s strong support for information technology (IT) makes it the preferred destination for tech investors.

Malaysia is an attractive investment location for data centres, especially hyper-scale ones, and the country’s investor-friendly policies are backed by a solid infrastructure and the development of renewable energy. The country has an investor-friendly climate that is conducive to business activities, he said.

The needs of the IT industry are driving growth in several industries, including data centre suppliers and server manufacturers. More resources will be required to support the increasing demand for cloud services.

The IT industry also benefits from government policies that promote the growth of domestic players in data services and ICT services in general.

Sulaiman predicts that the data centre market will expand over the next three years as a result of increased funding options made available to businesses by large corporations.

Businesses are encouraged to invest in the sources of renewable energy and use energy-efficient machinery which includes solar panels, wood-burning stoves, biogas and mini-hydropower plants.

Small and medium-sized enterprises that adhere to sustainable development principles have access to funding, he said.

Future Prospects in Malaysia

Despite global challenges, including inflationary pressures, economic uncertainty, and climate change, Sulaiman said Malaysia’s 2023 economic growth forecast remains positive.

Next year’s gross domestic product (GDP) growth is expected to be between four and five per cent; the government plans to keep fiscal and non-fiscal support high to promote economic activity to maintain the GDP growth momentum.

“We are poised to develop a new paradigm in our investing environment,” he said, drawing on previous lessons and experiences.

He promised that under the New Investment Policy (NIP), which prioritises the development of innovative, high-impact, high-tech investments essential to create high-skilled jobs, MIDA will seek after such investments in order to promote socioeconomic development and trade growth.

“We want to challenge ourselves, put in long hours and develop our style as a group. Malaysia is still the region’s top choice for foreign direct investment,” he said.

Malaysia is a promising market for companies seeking to grow their operations because of its business-friendly administration and connectivity to other countries in the region.

“MIDA strives to guarantee our investors are set up for success before they even come to Malaysia, via means such as fostering the development of businesses and local talent.”

Source: Bernama

Malaysia to focus on core competency of workforce to up prospects – MIDA Chairman

Malaysia remains a top investment destination among global investors and a hotspot for business expansion with investors continuing to show confidence to invest in the country with the new leadership focused on strengthening the country’s economic growth and retaining its reputation as a stable investment destination.

Malaysia attracted RM193.7 billion (US$41.7 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022 and is expected to create 98,414 job opportunities in the country. This is a 2.5 % increase as compared with the RM188.9 billion (US$45.1 billion) investments approved in the same period last year.

International Trade and Industry Minister Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said, “Malaysia’s success in attracting almost RM194 billion of approved investments in the first nine months of the year is a testament of its established standing as a gateway to Asean and an investment destination of choice in Asia.”

He said the Ministry of International Trade and Industry (Miti) and its agencies will ensure that new investment opportunities will build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner.

Foreign direct investment (FDI) remained the major contributor, at 67.5% or RM130.7 billion (US$28.1 billion), while domestic direct investment contributed 32.5% to RM63 billion (US$13.6 billion). This is a 15% increase compared with the FDI approved in the same period in 2021.

Of the total investments approved, China dominated with RM49.2 billion (US$10.6 billion) followed by the United States RM16.9 billion (US$3.6 billion), the Netherlands RM16.5 billion (US$3.6 billion), Germany RM9.2 billion (US$2 billion) and Singapore RM8.7 billion (US$1.9 billion).

During this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion (US$24.4 billion). The sector’s stellar performance exceeded expectations for January to September 2022, an increase of 60.9% from the same period in 2021.

The manufacturing sector followed with RM64.9 billion (US$14 billion) or 33.5% and the primary sector with RM15.5 billion (US$3.3 billion) or 8%.

Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman said, “Malaysia enjoys a strong reputation internationally and investors have confidence in us. The nation has a solid foundation to provide opportunities for investors.

“The government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors. The government focuses on digital economy, energy and high-value manufacturing activities such as transport technology which includes electric vehicle and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.

For the period, the services sector accounted for the largest share of the total approved investments, amounting to RM113.3 billion (US$24.4 billion) from 2,167 projects. This is a significant increase compared with the RM70.4 billion (US$16.8 billion) investments approved for the services sector in the same period last year.

Based on the total approved investments for January to September 2022, foreign investments made up the most significant portion, recording RM69 billion (US$14.9 billion) or 60.9% of the total approved investments for the services sector, while the remaining 39.1% or RM44.3 billion (US$9.5 billion) were from domestic sources.

Malaysia continued to attract high-quality investments in the manufacturing sector from January to September 2022. The sector accounted for RM64.9 billion (US$14 billion) or 33.5% of the total approved investments in various economic sectors, compared with RM103.9 billion (US$24.8 billion) for the same period in 2021.

Of the total approved investments in January to September 2022 for the manufacturing sector, FDI amounted to RM50.2 billion (US$10.8 billion) or 7.3%, while domestic investments contributed to the remaining RM14.7 billion or 22.7%.

Meanwhile, the primary sector recorded RM15.5 billion (US$3.3 billion) approved investments (8%) from January to September 2022, compared with RM14.7 billion (US$3.5 billion) for the same period in 2021. FDI was valued at RM11.5 billion (US$2.5 billion) or 74.2%, while domestic sources contributed the remaining RM4 billion (US$0.9 billion) or 25.8%.

Source: The Sun Daily

Investors show growing confidence in Malaysia

Malaysia has attracted a total of RM193.7 billion approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022.

In a statement on Wednesday, Malaysian Investment Development Authority (MIDA) said the total approved investments are expected to create 98,414 job opportunities in the country.

“This is a 2.5% increase compared with the RM188.9 billion investments approved in the same period last year,” it said.

Minister of International Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s success in attracting almost RM194 billion of approved investments in the first nine months of the year is a testament of its established standing as a gateway to ASEAN and an investment destination of choice in Asia.

“Our robust supply chain network, competitive cost structure, simplified business processes, cutting-edge innovation and technology capabilities, and good talent base are key ingredients in attracting investments and driving sustainable growth in this country.

“Moving forward, MITI and its agencies will ensure that new investment opportunities will also build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner,” he said.

Meanwhile, MIDA said foreign direct investment (FDI) remained the major contributor, at 67.5% or RM130.7 billion, while domestic direct investment (DDI) contributed 32.5% or RM63 billion.

“It is to be noted that this is a 15% increase compared with the FDI approved in the same period in 2021.

“Of the total investments approved, China dominated foreign investments totalling RM49.2 billion, followed by the United States (RM16.9 billion), the Netherlands (RM16.5 billion), Germany (RM9.2 billion) and Singapore (RM8.7 billion),” it added.

It said five states that have recorded significant approved investments include Johor (RM63.9 billion), Federal Territory of Kuala Lumpur (RM26.1 billion), Selangor (RM25.7 billion), Sarawak (RM17.6 billion) and Kedah (RM12.1 billion).

MIDA said that in this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion, which exceeded expectations from January to September 2022 with an increase of 60.9% against the same period in 2021.

This was followed by the manufacturing sector at RM64.9 billion or 33.5% and the primary sector at RM15.5 billion or 8%, it said.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said Malaysia enjoys a strong reputation internationally and investors have the confidence in investing in the country.

“The nation has a solid foundation to provide opportunities for investors. With its favourable business climate, the country is poised to become the next major economic hub.

“Malaysia offers companies what they need to succeed in the international marketplace by capitalising on its strategic location on the Straits of Malacca, comprehensive industrial ecosystem, dotted with abundant natural resources, and having a young, talented and vibrant population,” he said.

Arham said the government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors, which are expected to contribute to the country’s economic growth.

“The government focuses on the digital economy, energy and high value manufacturing activities such as transport technology which include electric vehicle and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.

Source : Bernama

Malaysia attracts RM193.7 bil approved investments in January-September 2022

The Malaysian Investment Development Authority (MIDA) and Collaborative Research in Engineering and Science and Technology Centre (CREST) inked a Memorandum of Understanding (MOU) with France’s Dassault Systèmes Pte Ltd to prepare small and medium enterprises (SMEs) to adopt Industry 4.0 machinations.

The partnership aims to create a steering committee to discuss the scope, requirements, roles and plans in supporting Malaysia’s SMEs in their journey to Industry 4.0. Furthermore, the partnership will also enhance cloud-based collaborations through the adoption of enterprise resource planning (ERP) solutions.

The ERP solutions will leverage on Dassault Systèmes virtual twin technologies via the 3DEXPERIENCE platform. This will be done through its computer-aided design software and product lifecycle management solutions.

“Through the use of Dassault’s solutions, which also runs on Microsoft Azure, SMEs can accelerate their new product introduction process and bring more products to market with the same resources available. Additionally, they are able to accelerate supplier collaboration and ensure faster delivery of their products to customers,” says Jaffri Ibrahim, CEO of CREST.

“The ERP solutions provided by Dassault Systèmes will also assist companies through a single collaborative platform, connecting the entire design to the manufacturing process. Hence, the new system is anticipated to replace multiple independent systems in the companies, including materials requirement planning, real-time planning, asset management, preventative maintenance, and more,” says Datuk Wira Arham Abdul Rahman, CEO of MIDA.

The intent behind the partnership is to develop a programme to enhance the efficiency and operations of SMEs in Malaysia with ERP solutions, to integrate business practices and solutions.

The partnership will further tap on the collective experience of the parties to help local businesses via a three-pronged approach. These include enabling Industry 4.0 readiness, providing access to the global marketplace and adopting true cloud-based collaboration.

“Industry 4.0 is key to Malaysia’s progress and will continue to play an instrumental role in steering the nation towards a post-Covid recovery, and in building a more resilient and sustainable economy. As the country embarks on its digitalisation journey, more effort is needed for our SMEs to ensure that they keep abreast with current trends and technologies, to stay competitive in the future,” said Jaffri.

Source: The Edge Markets

MIDA and CREST ink MOU with Dassault Systems to propel towards Industry 4.0 readiness

THE Pengerang Municipal Council (MPP) held a mini showcase highlighting its smart city initiative in line with the Johor Smart City Agenda 2030 which shed light on its development plans.

MPP president Fizwan Mohd Rashidi said the showcase aimed at sharing some milestones that it had achieved and future plans to improve the living conditions and socio-economic status of Pengerang folk.

“We want the public to know that they are crucial in every development and policy that is approved.

“The showcase not only caters for what we have planned in Pengerang but also for Kota Tinggi in general, on how we plan and streamline our development so that it is inclusive and sustainable,” he said, adding that the one-day showcase was launched by Kota Tinggi district officer Datin Paduka Hazlina Jalil.

Fizwan shared that MPP had organised a sharing session with the Malaysian Institute of Estate Agents (Johor) on its initiatives.

“Some of the plans discussed include placing smart CCTVs in designated areas, smart traffic lights, digital banners and adopting the econtract system.

“We also shared our smart waste management system, which is in line with the low carbon society agenda,” he said, adding that these developments were important in attracting more investors to the district.

Meanwhile, Hazlina said the showcase also shared the six initiatives to strengthen investment activities introduced by the state government to achieve its target of becoming a developed state by 2030.

“This includes practising smart and green management in our day-to-day work, such as introducing an online payment initiative and placing a mobile counter away from the office.

“Kota Tinggi has the potential to become the gateway for international tourism activities with the opening of the Desaru Ferry Terminal and the ongoing development at the Tanjung Belungkor Ferry Terminal and Tanjung Pengelih Ferry Terminal,” she said.

Hazlina shared that besides tourism, the Kota Tinggi district also focused on developing the oil and gas hub namely the Pengerang Integrated Complex and Pengerang Deepwater Terminal.

“These projects have given life to the district as the main international investment destination, so we need to organise a better strategy to attract more investors to the area so that we can create a more vibrant development,” she added.

Source: The Star

Paving the way for smart city

KUALA LUMPUR (Dec 6): Malaysia’s electrical and electronics (E&E) sector is expected to contribute RM120 billion to the country’s gross domestic product (GDP) and generate RM495 billion in export earnings by 2025, as Malaysia continues to attract high-quality investments and is expected to uphold its growth trajectory.

Malaysian Investment Development Authority (Mida) deputy chief executive officer of Investment Promotion and Facilitation Sivasuriyamoorthy Sundara Raja said the manufacturing sector attracted RM43.1 billion in investments for the first half of 2022 (1H2022).

“Among the sub-sectors of the Malaysian manufacturing industry, E&E proves its mettle and robustness by continuously attracting the highest number of investments.

“During this period, the industry recorded a total of RM19.49 billion in approved investments and we expect to generate over 13,000 job opportunities, including highly-skilled positions such as managerial, engineers and technicians,” he said during his opening speech at the Malaysia National Electrical and Electronics Forum 2022 here on Tuesday (Dec 6).

Sivasuriyamoorthy said the E&E industry is integral to the manufacturing sector and serves as a vital element to the nation’s economic prosperity.

“The sector is also a veritable cornerstone of the global semiconductor industry, producing 13% of the world’s backend semiconductors in 2021, with exports accounting for 40% of total national output.

Sivasuriyamoorthy said some of the most prestigious and innovative electronics businesses in the world, such as Intel, STMicroelectronics, Infineon and others, have increased their presence in Malaysia.

“MIDA is committed to building a resilient and sustainable electronics supply chain in the Asean region.

“Apart from local industry players, we are expanding the benefits of our manufacturing ecosystem to global businesses and brands,” he said.

Resilent, sustainable supply chains

Up until early this year, the biggest challenge facing the global semiconductor industry was shortages, mainly triggered by soaring demand for electronic consumer products such as PCs and smartphones during the Covid-19 pandemic, Sivasuriyamoorthy said.

He said US-China trade tensions also added difficulties for some global semiconductor players and resulted in global supply chain disruptions.

“To further strengthen the semiconductor supply chain, Malaysia has signed the US-Malaysia Memorandum of Cooperation (MOC) in May 2022 on Semiconductor Supply Chain Resilience, which aims to provide guiding principles for both our nations,” he added.

Sivasuriyamoorthy said Mida is committed to building resilient and sustainable electronics supply chains in the Asean region. 

“Apart from local industry players, we are expanding the benefits of our manufacturing ecosystem to global businesses and brands.

“The growing participation and research and development efforts in the different layers of our domestic and foreign investors will also enhance the industry’s value chain,” he added.

He said businesses could capitalise on the E&E sector’s potential growth, which will further boost the nation’s economy with the correct strategies and knowledge.

Source: Bernama

E&E sector to generate RM495 bil in export earnings by 2025, says MIDA

The Malaysian Investment Development Authority (MIDA) is prepared to support small and medium enterprises (SMEs) in adopting Enterprise Resource Planning (ERP) solutions through the allocation of government grant.

MIDA has signed a Memorandum of Understanding (MoU) with the Collaborative Research in Engineering and Science and Technology Centre (CREST) and Dassault Systèmes Singapore Pte Ltd on ERP adoption today.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said MIDA is committed to help SMEs through government grants, especially those wishing to take part in Industrial Revolution 4.0.

“This timely initiative aims to elevate our local SMEs and equip them with the latest technology to enhance their business efficiency through adopting world-class ERP solutions.

“We take great pride in MIDA’s involvement in this initiative to empower Malaysian firms and SMEs to fortify their technical capabilities and embrace modern technology, thus enabling them to progress and flourish,” he told a press conference after the signing ceremony here today.

The partnership aims to create a steering committee to discuss the scope, requirements, roles and plans in supporting Malaysia’s SMEs in their transformation journey to Industry 4.0 as well as enhancing cloud-based collaboration through adopting world-class ERP solutions.

The ERP solutions will leverage on Dassault Systèmes’ virtual twin technologies via its 3DEXPERIENCE platform, specifically in its computer-aided design software and Product Lifecycle Management solutions, which are used in various industries including manufacturing, engineering and life sciences.

Meanwhile, CREST CEO Jaffri Ibrahim said the MoU aimed to provide a platform that allows Malaysian businesses to thrive in a competitive business environment post-pandemic.

“We constantly seek opportunities to collaborate with the government, industry leaders and academia to advance scientific knowledge in the country. In turn, we aim to strengthen homegrown innovation and research while we help local businesses navigate their challenges and opportunities in the new normal,” he added.

Source: Bernama

MIDA ready to assist SMEs to adopt ERP Solutions through govt grant

The Malaysian Investment Development Authority (MIDA) and the United Nations Development Programme (UNDP) of Malaysia, Singapore, and Brunei Darussalam are set to launch the inaugural Malaysian Sustainable Development Goals (SDG) Investor Map in 2023

MIDA said that the map will provide insights and tools needed by the private sector to increase their investments towards the SDGs and fill the financing gap faced by the government with regard to meeting the SDG targets.

“The SDG Investor Map will assist in unveiling untapped opportunities that have the potential to spur rapid development,” said MIDA chairman Tan Sri Sulaiman Mahbob in a statement.

He said that it will also provide the government with a clear direction to focus on new areas that could benefit from policy implementation and provision of resources, such as human capital and capacity-building initiatives.

Meanwhile, the UN under-secretary-general and UNDP associate administrator Usha Rao-Monari said that now is the time for private businesses and investors to place their bets on climate-sensitive investments and not just hedge their climate risks.

“(They are able) to make real business value from green products and services, (as well as from) climate mitigation and adaptation solutions.

“By venturing into new products and services that contribute to climate solutions, businesses can gain good market returns and be a leader in their respective industries,” she said.

Accordingly, MIDA noted that as reported by the Global Commission on Adaptation in 2019, a US$1.8 trillion (US$=RM4.40) investment in climate change adaptation measures is expected to bring a return of US$7.1 trillion in avoided costs and other benefits

Both Sulaiman and Usha were giving their remarks at the ‘Private Sector Dialogue on the SDG Investor Map,’ themed “Sustainability Does Matter: Investing for a Better Future”, coorganised by UNDP and MIDA here today.

The dialogue aimed at engaging with industry players in identifying new investment opportunities with potential contributions to SDGs, while generating attractive market returns.

Source: Bernama

MIDA, UNDP set to launch Malaysian SDG Investor Map in 2023

The Malaysian plastics industry exhibited resilience during the pandemic and has continued on a steady growth path.

The Malaysian Investment Development Authority (MIDA) said as of June 2022, 33 projects in the sector had been approved with accumulated investments of RM503.5 million.

Chief executive officer Datuk Arham Abdul Rahman said as the plastics industry continues to grow, it is important that companies, particularly small and medium enterprises (SMEs), focus on innovation and raise productivity to compete and capture new opportunities.

“MIDA has proactively taken the initiative to ensure investors have access to the right infrastructure, proper facilities and skilled talent to cater to the requirements of businesses,” he said in his keynote address at a conference on government assistance at MIDA’s headquarters on Wednesday.

The conference, specifically for the plastics industry and attended by 100 participants, was co-organised with the Malaysian Plastics Manufacturers Association (MPMA) and aimed to provide insight into various government policies, facilitations, and assistance.

Arham noted that among the initiatives and assistance provided by MIDA to manufacturers of plastics products include the Smart Automation Grant Industry4WRD Intervention Fund, Automation Capital Allowance (ACA) and the Domestic Investment Coordination Platform (DICP).

“Malaysia is also committed to achieving net zero carbon by 2050 and for this, MIDA is working closely with MPMA to drive industry collaboration and understand the demand and supply of recycled plastics resources.

“Companies should look for practical ways to recover resources where possible and channel them back into production,” he said.

MPMA vice-president Datuk Noraini Soltan highlighted that the plastics industry continues to face tremendous challenges including a shortage of labour, an increase in cost arising from the increase in minimum wages and rising interest rates as well as a slump in overseas demand due to economic slowdown.

Moving forward, she said it is unavoidable for plastics manufacturers to shift towards high technology to reduce dependency on foreign workers and low skilled labour.

“The ability of the plastics industry to produce high quality products at competitive prices will strengthen our role as a supporting industry, and in turn attract more foreign direct investments.

“As investing in high technology and automation is a long-term process and given the fact that 90% of plastics companies are SMEs, continued assistance and support from the government in the form of grants, incentives and financing is crucial.

“This will enable more plastics companies to have sufficient resources to invest in advanced machinery and new product development for sustainable growth,” said Noraini.

The MIDA-MPMA conference featured speakers from MIDA, Inland Revenue Board of Malaysia, Malaysian Industrial Development Finance Bhd (MIDF), Malaysia External Trade Development Corporation (MATRADE), Ministry of Science, Technology and Innovation (MOSTI), United Overseas Bank Ltd and TalentCorp Malaysia.

On the conference, Noraini said the industry was very fortunate to have been able to learn from knowledgeable speakers on the various types of government assistance and facilitations.

“We hope that the participants would have obtained useful information which will assist employers to formulate strategies to make changes to your business models, and operations and move up the value chains via this conference,” she added.

Source: Bernama

Malaysian plastics industry remains resilient with steady growth — MIDA

Food and beverage company, Mamee-Double Decker (M) Sdn Bhd continues its global market exploration and expansion with the assistance of the Malaysian Investment Development Authority (MIDA).

Mamee senior corporate relations manager Sharszany Shahry Abu Shahriman said the collaboration with the government agency could, among other things, strengthen the company’s daily operations.

“So far, the strong cooperation between the two parties has helped Mamee become a multinational Malaysian food and beverage company with exports to more than 80 countries, including Jordan, Australia, Thailand, Singapore, Indonesia, Myanmar. and the Philippines,” he said when contacted by Bernama.

According to him, the collaboration was also expanded with the status of Principal Hub which was recently approved by MIDA and transformed Mamee in terms of operations and commercials.

“Operation-wise, Mamee can invest in industrial revolution 4.0 technology by automating factory production to increase efficiency and to also manufacture more quality products for consumers around the world.

“Commercially, the principal hub status will help Mamee become a ‘proposition’ to other business partners around the world, he said.

In addition, Sharszany Shahry said the collaboration also helped Mamee built a stronger brand network globally with the latest market opportunities to the African continent after being invited by MIDA to a programme with African countries recently.

In the meantime, he said Mamee is carrying out improvements in its daily operations in terms of environmental, social and governance (ESG) compliance as encouraged by the government.

“It includes providing a rainwater harvesting system and solar panel technology for environmental compliance as well as taking care of the workers’ welfare by providing a conducive work environment and quality food.

“Even though Mamee is a business managed by family members and is a private business, the foundation of building Mamee’s business is based on meritocracy and accountability, he said.

Sharszany Shahry said for the long-term plan, Mamee is now investing in a network of start-ups for certain food and beverage business services under Mamee Ventures, among them The Good Crisps Company in the United States.

He said, Mamee also has an existing collaboration network with Hausboom under the auspices of The Boom Bevlab apart from Daebak with Shinsegae Food Korea, and soon Better Baker for cake and biscuit products.

Source: Bernama

Mamee collaborates with MIDA to explore, expand markets abroad

The Association of Malaysian Medical Industries (AMMI) members plan to invest RM1.4 billion in expansion, RM389 million in new products and RM158 million in research and development (R&D), centre of excellence and Industry 4.0, according to AMMI Medical Device Industry Status and Outlook 2021/2022 Report.

AMMI members have sourced RM3.92 billion of raw materials and services from local suppliers and small and medium-sized enterprises (SME) within the country.

The maiden report was released by AMMI and the Malaysian Investment Development Authority (Mida), highlighting Malaysia’s medical device industry’s resilience in the face of Covid-19 pandemic challenges.

The report said that Malaysia is regarded as one of the world’s top offshore manufacturing hubs for medical devices alongside Puerto Rico, Ireland and Costa Rica.

According to its analysis, 10 out of the top 30 global medical technology companies have established manufacturing footprints here.

In addition, close to 300 medical device manufacturing companies make up Malaysia’s medical device industry, undertaking activities ranging from regional headquarters and manufacturing to R&D.

AMMI chairman Andy Lee expressed that Malaysia will continue to attract more foreign direct investment in the medical device manufacturing with the Ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) recently.

“AMMI believes that the industry has the potential to scale even further and capitalise on the global medical device market, which is expected to reach US$745 billion (RM3.47 trillion) by 2030. In the pandemic era, AMMI members’ investment levels in Malaysia continued to grow, signalling their confidence in Malaysia. Sixty-three percent of members indicate future development plans, and this trend is expected to continue in the coming years,“ he said.

Mida CEO Datuk Wira Arham Abdul Rahman said that AMMI has collaborated with Mida since 2015 to be the primary conduit for investor facilitation for its members notwithstanding the industry’s difficulties.

“AMMI has helped the industry’s major companies organise training programmes which have benefitted 2,647 Malaysians and increased their chances of securing better jobs.”

On Dec 1, AMMI will organise the inaugural Malaysia MedTech Industry Summit in Penang, which will serve as a platform for local suppliers to connect with medical device manufacturers.

Source: The Sun Daily

AMMI members plan to pump in RM1.4b for expansion

Malaysia has established itself as one of the world’s top offshore manufacturing hubs for medical devices, with close to 300 medical device manufacturing companies undertaking a variety of activities ranging from regional headquarters and manufacturing to research and development (R&D).

In a statement on Monday (Nov 14) in conjunction with the Association of Malaysian Medical Industries (AMMI) Medical Device Industry Status and Outlook 2021/2022 Report, the Malaysian Investment Development Authority (MIDA) and AMMI said 10 out of the top 30 global medical technology have set up manufacturing in Malaysia, and thus puts the country in the company of Puerto Rico, Ireland and Costa Rica offshore manufacturing hubs.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said that since 2015, AMMI has collaborated closely with MIDA to foster the development of the country’s medical device industry.

“AMMI has helped the industry’s major companies organise training programmes, which have benefited 2,647 Malaysians and increased their chances of securing better jobs.

“AMMI has helped promote Malaysia as a prospective investment destination in this region and Asia, attracting the attention of major international firms in the medical device industry.

“MIDA also plays the role of mediator between the companies and local regulators, ensuring the quality standards and requirements match the global demand,” he said.

Meanwhile, AMMI chairman Andy Lee said Malaysia will continue to attract more foreign direct investment in medical device manufacturing with the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

He said AMMI believes that the industry has the potential to scale even further and capitalise on the global medical device market, which is expected to reach US$745 billion (RM3.4 trillion) by 2030.

He said that in the pandemic era, AMMI members’ investment levels in Malaysia continued to grow, adding that 63% of its members indicate future development plans, and that this trend is expected to continue in the coming years.

Source: The Edge Markets

Malaysia ranks among world’s top offshore manufacturing hubs for medical devices, says report

Enhancing domestic direct investment (DDI) is important for Malaysia’s sustainable growth given its huge contribution to the country’s economy, said the Malaysian Investment Development Authority (MIDA).

Chief executive officer Datuk Arham Abdul Rahman said DDIs play an important role in the local economy, especially against the backdrop of global uncertainties, and is essential to woo foreign direct investment (FDI).

He pointed out that FDI and DDI complement one another, arising from the same market conditions – a competitive, equitable, stable business and regulatory climate – and that both segments deserve equal attention.

“FDI is only one part of the equation in the economy, a strong domestic industry and ecosystem are also important.

“Strong domestic demand results in more DDI and a healthy DDI is essential for a successful FDI,” he said at a panel discussion titled “Shifting the Paradigm: Enhancing DDI for Sustainable Economic Growth” here today.

In 2012-2021, DDIs contributed 64.2 per cent, or RM1.364 trillion, of the total approved investment in Malaysia’s economy, while the remaining 35.8 per cent (RM761.7 billion) was FDIs.

In the services sector, 84.2 per cent or RM1.014 trillion of total approved investment in the country was dominated by DDI, while FDI amounted to RM190.4 billion.

As for manufacturing, 35.5 per cent, or RM290.8 billion, of approved investment was contributed by DDI while the bigger chunk was FDI, totalling RM527.6 billion.

Source: Bernama

MIDA calls for more domestic direct investment to sustain economic growth

The Malaysian Investment Development Authority (MIDA) expects the total approved investments in 2022 to recover to the pre-pandemic level of over RM200 billion annually.

Chief executive officer Datuk Arham Abdul Rahman said on average, domestic direct investment and foreign direct investment made up 60:40 of the country’s yearly approved investments, mainly for the services sector.

He said investments in semiconductors and electrical and electronics (E&E) would continue to make up the largest contribution to the total investment this year.

“The global disruptions in the E&E and semiconductor supply chains globally during the pandemic saw many chips and semiconductors being utilised in mobile phones and PC productions, (causing a shortage) for the automotive industry.

“Now the demand for chips and semiconductors in the automotive industry is on an uptrend,” he told a press conference after a panel discussion titled “Shifting the Paradigm: Enhancing DDI for Sustainable Economic Growth” here today.

In the first half of 2022, MIDA approved RM123.3 billion in total investment, largely in the services sectors, including for the data centre projects in Johor.

He declined to reveal the latest figure of approved investments but signalled that the trend is increasing, in tandem with growing interest in Malaysia as a preferred destination for investment among domestic and foreign investors.

In 2021, MIDA approved a record RM309.4 billion (US$74.2 billion) in investments in the manufacturing, services, and primary sectors despite the unique global calamities, thanks to several big ticket projects secured, especially in the E&E and semiconductor industry, including from Intel and Osram.

Sumber: Bernama

Approved investments in 2022 to match pre-pandemic level of over RM200 billion yearly – MIDA

Merely looking at the value of domestic direct investment (DDI) data alone would not give a full picture of the country’s local investment landscape, the Malaysian Investment Development Authority (MIDA) said.

Its senior executive director of investment policy advocacy Sikh Shamsul Ibrahim Sikh Abdul Majid said DDI numbers tend to be lumpy over the years due to major investments being cyclical in nature. 

In terms of the value of approved DDIs, the amount has been uneven but recorded a downward trend from RM150.6 billion in 2015 to RM125.5 billion in 2019. During the Covid-19 pandemic years, it continued to fall to RM103.2 billion in 2020 and further to RM97.9 billion in 2021, which was somewhat expected. 

Shamsul attributed the lumpy numbers to large-scale projects like Petroliam Nasional Bhd’s (Petronas) Pengerang project in Johor, where the investments tapered off close to 2018. 

“A foreign direct investment (FDI) can invest about RM30 billion in a project, something you will not see in a DDI. But in terms of the number of projects, DDIs are about two to three times more than FDIs. We cannot conclude based on the value alone that DDI is down. Over time, big domestic investments [like Pengerang] will come again,” he said during a panel discussion titled “Shifting the Paradigm: Enhancing DDI for Sustainable Economic Growth” on Tuesday (Nov 8). 

“Right now, what we really need to look at is how we can encourage domestic services companies to go into manufacturing, so that we can have more of that in the manufacturing sector,” he said. 

Notably, the services sector dominated DDI approvals, totalling about 70% each year. 

AmBank Group chief economist and head of research Anthony Dass, who was the moderator of the panel discussion, chipped in to say that DDIs are usually smaller in value than FDIs. 

“The value today may be small, but we hope that in five years’ time, it will grow bigger. But, even then, multinational corporations’ investments will still be bigger than DDIs. We have to move away from the traditional method of just looking at the value of the investment, and to include looking at value-adding and how much we have moved up the value chain,” he explained. 

During the panel discussion, Shamsul also pointed out that there is a common misconception among local companies that where incentives are concerned, FDIs are able to get things done more easily than local companies.

He added that incentives are readily available for both local and foreign companies, and even for smaller companies, like the pioneer status and investment tax allowance. 

But the incentives are not “free giveaways”, Shamsul said, as local companies would have to meet the criterias for the incentives. They would also need to approach MIDA directly to find out more, and apply for the incentives that can help to further their businesses and investments.   

Later at a press conference, MIDA chief executive officer Datuk Arham Abdul Rahman said MIDA is confident that total approved investments in 2022 will hit RM200 billion or more in value, which is consistent with the amount achieved each year before the pandemic. 

In the first half of the year, total approved investments amounted to RM123.3 billion. 

He is of the view that comparisons should not only be made between total approved investments in 2022 and what was achieved in 2021, given how 2021 was an exceptional year due to approvals for a few big projects in the electrical and electronics industry. 

In 2021, total approved investments totalled a record RM309.4 billion. 

Going forward, despite concerns over a possible economic slowdown, Arham is confident that the country will also be able to achieve RM200 billion in total approved investments in 2023, judging by the pipeline of projects that MIDA is working on.

Source: The Edge Markets

Value of approved domestic investments alone not the full picture — MIDA

Vision for a Digital Malaysia

Much of our world today is powered by science and technology. Businesses and organisations have shown incredible resilience as they navigated uncertainty and changes brought about by the pandemic through the adoption of digital upgrades. Emerging technologies such as artificial intelligence (AI), the internet of things (IOT) or big data analytics and blockchain, all have a profound impact, causing a digital transformation in the world’s economy and the way of life of modern society.

The ability to seize opportunities emerging from innovative technologies and business models plays an important role in driving new engines of the country’s economic growth.

I believe that Malaysia is on the right trajectory, and is attracting the right type of investments in transforming us into a high-income digital nation, aligning with the government’s MyDIGITAL blueprint and National Investment Aspirations (NIA). We need to collectively do more to amplify the impact of innovation, and channel the momentum of change to build a better world.

Let me put forth some ways that we can maximise the impact of innovation in this time of rapid change.

Digital-Driven Investments

For the period of January to June 2022, Malaysia has attracted a total of RM123.3 billion (USD28.0 billion) worth of approved investments in the manufacturing, services and primary sectors involving 1,714 projects, and these are expected to create 57,771 job opportunities in the country.

In this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 63.3 per cent of total approved investments involving RM78.0 billion (USD17.7 billion). Three data centre projects alone accounted for RM51.1 billion or 95.2 per cent of the investment. The stellar performance for the services sector exceeded expectations for January to June 2022, an increase of 48.8 per cent from the achievement attained in the same period in 2021. This is followed by the manufacturing sector at RM43.1 billion (USD9.8 billion).

This shows Malaysia’s diversified services sector continues to embrace digitalisation to move up the value chain and boost operational efficiency when remote-working and automation trends have accelerated due to the COVID-19 pandemic. New services have materialised through the invention of the IOT. AI and the cloud network have redefined the service sector’s importance in Malaysia’s economy.

National Investment Aspirations (NIA) which serve as a roadmap for the New Investment Policy (NIP), launched on 6 October 2022, includes overarching objective and strategic policies to promote the steady growth of Domestic Direct Investment as well as Foreign Direct Investment and continue Malaysia’s transition towards a knowledge-based and digital economy. The NIP emphasised the nurturing of innovative, high-impact and high-tech investments which would be conducive to the creation of high-skilled jobs. Under the NIP, the digital economy is identified as one of the major cornerstones for the nation’s economic growth with significant development opportunities. As such, Malaysia aspires to emerge as one of the regional leaders in the digital economy, with an increased proportion of exports coming from digital content and services.

Digital Economy Facilitation

Concerted efforts that include infrastructure expansion, policy development, investment promotion, sustainability awareness, and talent development will lay a sturdy foundation for Malaysia’s digital economy landscape.

The Digital Investment Office (DIO), a collaborative platform between MIDA and MDEC, was established to coordinate and streamline digital investments into the country while providing end-to-end facilitation to investors, thus helping investors to realise their business growth expansion in Malaysia. The office is committed towards attracting digital investments that embody high-quality, sustainability and technologies.

This is in line with the government’s aim to attract RM70.0 billion (USD15.6 billion) investments to accelerate digitalisation efforts by 2025. This initiative is timely and in line with the evolution of the global investment landscape towards digitalisation and Industry 4.0, creating unique and interesting value propositions for digital projects which involves digital infrastructure projects like data centres and submarine cables as well as digital technology projects that utilise IR4.0 technology.

The DIO also advocates for future-ready policies and guides talent requirements and digital infrastructure networks and addresses operational issues faced by businesses beyond the pandemic. The efforts undertaken by MIDA through its branch offices locally and internationally as well as through its digital facilitation platforms with partner agencies are expected to contribute positively to serve the growing needs of digital industries.

The strengthening of our digital landscape will empower all industries and local SMEs to participate in complex activities with higher value-add. As such, a digitally-enabled supply chain is a great attraction for foreign and domestic investors who have already taken the leap to digitise their operations.

The establishment of data centres and network infrastructures in Malaysia by local and global players such as YTL, NTT and Google is a testament of the country’s readiness to become a regional data centre hub.

Broader sectors which are poised for growth in the long run include applications and services (the e- or digital version of all social and economic segments), digital platforms that enable authentication and government delivery, and connectivity and infrastructure which is continuously being established or improved nationwide.

MIDA is also focused on ensuring that domestic industry players, particularly SMEs harness new sources of growth to deliver the next age of economic prosperity in Malaysia.

As such, the Domestic Investment Coordination Platform (DICP) team identifies missing links between businesses, funding, technology, and research capability and aims to fill them effectively.

The vision is to bring R&D to commercialisation for domestic investors through the provision of funding and technological support. The role of the DICP team includes business matching with financial institutions, collaborative partners or tech providers based on SMEs needs; identifying accessibility of funds depending on the nature and size of the company; and assisting to address commercialisation challenges for domestic players.

Moving forward, MIDA aims to anchor global technology leaders and build the capacity of our local supply chain, nurture future ready talent, and attract targeted quality investments in better preparing us for the surge of digitalisation, positioning Malaysia as a Digital Economy Hub.

—

Datuk Wira Arham Abdul Rahman is the CEO of the Malaysian Investment Development Authority (MIDA).

Source: The Edge Markets

Malaysia as a Regional Digital Economy Hub

Source: The Sun Daily

GE15 will not have impact on FDI: MIDA

Malaysia is still the most desirable location in the region for data centre hubs, said Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman.

Supported by the country’s vast resources, favourable environment, and advancement in digital infrastructure, Malaysia has developed into a mature market for data centres, he said in conjunction with the grand opening of Bridge Data Centres’ (BDC) first-phase hyperscale data centre in Sedenak, Johor on Thursday.

“This illustrates the country’s readiness to serve as a regional data centre hub,” he said in a joint statement by Mida, Malaysia Digital Economy Corp (MDEC), and BDC on Friday.

Arham said the grand opening marked the success of Malaysia as a competitive nation in attracting data centre investment.

He said Mida, through the Digital Investment Office and Project Acceleration and Coordination Unit, has been very supportive of this project since its pre-investment stage right up to the implementation phase.

“We are excited and honoured to have been chosen by BDC and ByteDance System Sdn Bhd as their choice of location for the establishment of this hyperscale data centre venture,” he added.

ByteDance System will be the anchor tenant of BDC’s hyperscale data centre with long-term investment commitment in the country.

Meanwhile, MDEC CEO Mahadhir Aziz said the new facility will increase not only latency and efficiency but will  also help attract other global businesses and investments to the country.

With the rapid growth of cloud service providers and digital media, BDC has full support from the US-based Bain Capital to expand its hyperscale data centre business in the Southeast Asia region.

The company will be building another 100 megawatts (MW) of data centres in the next five years in Malaysia, Indonesia, and Thailand.

The first phase of the data centre in Sedenak covers the first of the three buildings in the 110 MW hyperscale data centre project, which spans 15.4 hectares.

BDC is one of the largest data centre companies in the region, providing hyperscale and wholesale data centre solutions.

BDC is also the first company with Malaysia Digital status to complete the construction and handover the business-ready hyperscale data centre in 2022.

Source: Bernama

Malaysia still most desirable location for data centre hubs in the region — MIDA

Source: The Edge Markets

Malaysia continues to be an attractive investment destination

The Malaysian Investment Development Authority (MIDA) has signed a memorandum of understanding (MoU) with  Halal Development Corp Bhd (HDC) to boost Malaysia’s halal industry.

This strategic collaboration will allow HDC to leverage the end-to-end facilitation by MIDA to assist further and enhance the industry’s capability and capacity, propelling the country’s economic growth.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said the MoU further strengthens the successful partnership between MIDA and HDC and enhances Malaysia’s position as the centre of halal ecosystem development.

Arham said this collaboration also foresees the broader scope of economic cooperation between the MIDA and HDC and provides opportunities in new and innovative business and strategic areas that will include projects to increase investment.

“Given the growing role of technology and the increasing importance of its adoption, especially since the global pandemic struck, it is apt to prioritise technology development now and post Covid-19.

“This would also be beneficial to enhance innovation and technology application in the Halal industry that Malaysia already has succeeded,” he said.

Meanwhile, HDC chief executive officer Hairol Ariffein Sahari said that Malaysia’s halal parks had attracted a total of RM16.28 billion in investments since 2011.

Hairol said HDC is seeing a trend amongst the local players, particularly the halal small and medium enterprises (SMEs), who were resilient throughout the Covid-19 pandemic.

“Despite the challenges, they have strived and are still going for business expansion and diversification to meet the growing demand.

“Hence, these SMEs are scaling up and looking for suitable and sizable industrial spaces with better infrastructure and ecosystem support, provided by HDC’s halal parks,” he said.

The collaboration will synchronise the process flow of investment facilitation during pre and post-investments between HDC and MIDA.

For 2021, HDC managed to engage 130 domestic companies with 17 letters of intent (LoI) issued into Malaysian halal parks with a potential investment of RM133 million.

It is believed that 60 per cent of the potential investment will be realised with this two-year partnership.

The MoU with HDC demonstrates MIDA’s ongoing commitment to pursuing high technology, high value-added and innovative investment projects from domestic and foreign companies.

The partnership is seen as timely to provide adequate financial support to industry players.

This is mainly for domestic investors in expanding the government’s efforts to facilitate investments in Malaysia, which is consistent with the National Investment Aspirations (NIA) framework in driving economic growth.

Source: NST

MIDA, HDC inks MoU to boost Malaysia’s halal industry

Malaysian Investment Development Authority (MIDA) launched its Istanbul office to provide Malaysia and Türkiye new economic opportunities and to drive the steady growth of both countries’ bilateral trade relations.

MIDA Istanbul will serve as a gateway for aspiring Turkish investors to expand their businesses in Malaysia and vice-versa, a statement from MIDA said today.

“Investors will be able to gain access to the latest information on investment policies and opportunities, joint venture partnerships or technological collaborations,” the statement said.

MIDA said many business opportunities await Turkish investors, particularly in machinery and equipment, aerospace, information and communications technology, digital technology, food manufacturing including the halal segment.

International Trade and Industry Senior Minister Datuk Seri Mohamed Azmin Ali said the opening of MIDA’s Istanbul office is most timely to fully exploit the potential upside for enhanced Turkish investments in manufacturing and services including advanced manufacturing, machinery and equipment, aerospace and digital investments.

Meanwhile, MIDA chief executive officer Datuk Arham Abdul Rahman said apart from helping MIDA to attract new investment opportunities into Malaysia, the country is looking for new collaborations to grow together.

The new office will help to extend their outreach programmes with Türkiye’s trading partners including countries like Russia, Greece, Cyprus, Azerbaijan, Georgia and the seven “Stan” countries in Central Asia.

“Turkish investors interested in seeking joint venture partnerships or technological collaborations with Malaysian businesses can get information from this office.” he said.

MIDA said for the first half of 2022, Malaysia attracted RM123.3 billion (US$28.0 billion) worth of approved investments in the manufacturing, services and primary sectors involving 1,714 projects. About 57,771 job opportunities are expected to be generated in the country.

Foreign direct investments remained the major contributor, at 70.9 per cent, or RM87.4 billion (US$19.9 billion), while investments from domestic sources contributed 29.1 per cent amounting to RM35.9 billion (US$8.2 billion).

“With the new Istanbul office, Türkiye will no doubt contribute immensely to the socio-economic development and bring about new growth areas into Malaysia’s investment landscape,” it added.

Source: Bernama

MIDA new Istanbul office a gateway for Malaysia-Türkiye investments