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MIDA: Accelerating Investments is Key

MIDA: Accelerating Investments is Key

30 Jan 2021

FDI landscape likely to remain challenging and highly competitive

Accelerating quality investments is a key priority in Malaysia’s growth recovery, said the Malaysian Investment Development Authority (Mida).

It said the government was formulating a national investment strategy to attract high-quality investments that can meaningfully enhance Malaysia’s productive capacity, create high-skilled jobs, promote technology transfer and foster domestic linkages.

The United Nations Commission on Trade and Development, in its latest Global Investment Trend Monitor report released earlier this week, estimated that global foreign direct investment (FDI) flow fell by 42 per cent to US$859 billion last year compared with US$1.5 trillion in 2019.

Almost all regions reported lower FDI flows last year, mainly due to the impact of lockdowns and a drastic decrease in the economic activities amid the Covid19 pandemic.

Mida said the government acknowledged that the FDI landscape had been and would likely remain challenging and highly competitive.

“In the recent period, efforts have been intensified to further attract and facilitate quality investments,” it said.

Mida said under the Economic Recovery Plan, the government announced several tax incentives to spur investment activity, including a 10- to 15-year tax exemption for new FDIs in the manufacturing sector with capital investment of RM300 million or more.

“Measures to improve investor experience, in particular to ensure seamless investor facilitation, will continue to be pursued on an ongoing basis.

“Specific initiatives that have been implemented include the establishment of the Project Acceleration and Coordination Unit and various online platforms, including i-Incentive, to expedite the realisation of investments.”

Mida said investment intentions remained healthy in Malaysia.

It said Malaysia recorded RM109.8 billion worth of approved investments in the manufacturing, services and primary sectors for the first nine months of last year.

These investments involve 2,935 projects and will create 64,701 jobs opportunities.

Of that, FDIs accounted for almost 40 per cent, or RM42.6 billion.

“The realisation of these investments over the immediate to medium term will provide support to economic growth this year and beyond,” it added.

Source: NST