Focus on energy transition, digital and high-technology industries
14 Oct 2023
Quality investments in high value-added industries will be propelled by the strategies and measures under the National Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030) and the Mid-Term Review (MTR) of the 12th Malaysia Plan (12MP) as guided by the Madani Economy framework.
This is especially in energy transition, digital and high-technology industries that will ultimately create more high-income employment opportunities towards sustainable economic growth, according to Bank Negara in its Economic Outlook 2024 Report.
Without swift and effective reforms in investment-related policies, Malaysia is far from achieving its aspiration to be in the top 30 largest economies.
Notwithstanding the ongoing economic recovery post-pandemic, Bank Negara said several challenges persist in balancing the private consumption and investment that necessitate a renewed focus on investment-related policies.
Therefore, Malaysia needs to prioritise investment in innovative and advanced technology to achieve higher productivity and sustainable economic growth.
The central bank said the revival of private investment and foreign direct investment (FDI) is crucial in driving towards higher productivity.
Inflows of FDI can encourage technological adoption and increase the production capacity of economic sectors by forming supply chain linkages with local firms, including micro, small and medium enterprises (MSMEs). This in turn can lead to higher domestic investment and economic growth.
The government has also implemented a responsive fiscal and accommodative monetary policy to boost private investment.
In the long term, the government is focusing on structural reform strategies to strengthen economic growth
which include fostering industries with high-growth value, enhancing technological advancement through innovation, expediting digitalisation and developing a future ready workforce.
These strategies will further promote sustainable private investment for the future, added Bank Negara.
Moving forward, the Madani Economy framework will serve as a foundation in revitalising the economy to ensure the accumulated wealth is benefitted equitably among the rakyat.
In order to become a globally competitive investment destination, efforts will be intensified to strengthen investment promotion, enhance incentive measures to attract high quality investments, upgrade existing infrastructure and develop human capital to meet investor needs.
To date, several government policies have been introduced to complement the framework such as the NETR, NIMP 2030 and MTR of the 12MP. The NETR will guide investments in energy efficiency, renewable energy, hydrogen, bio-energy, green mobility as well as carbon capture, utilisation and storage.
As for NIMP 2030, it encompasses six goals namely increasing economic complexity, creating high-value job opportunities, extending domestic linkages, developing new and existing clusters, improving inclusivity and enhancing environmental, social and governance practices.
Meanwhile, the MTR of 12MP will focus on accelerating the development of high growth value industries, attracting quality investments in technology based industries as well as enhancing technological adoption and digitalisation.
The private sector will also be encouraged to intensify green investments in business operations and premises.
Measures will also be undertaken to remove the barrier which hinders the expansion of MSMEs.
In addition, the labour market reforms will be expedited through upskilling and reskilling programmes to produce industry-ready talent and retaining existing workforce.
Source: The Star