MIDA partners Maersk to drive high quality investments into Malaysia
29 Aug 2022
Malaysian Investment Development Authority (MIDA) has partnered AP Moller-Maersk (Maersk) to drive high-quality investments into Malaysia, contributing to the growth and development of the supply chain sector in the Malaysian economy and boosting it as one of the logistics hubs in ASEAN.
MIDA investment promotion and facilitation deputy chief executive officer Sivasuriyamoorthy Sundara Raja said both parties would work together to attract high-tech and high-impact investments in sectors including automotive, electrical and electronics, machinery and equipment, medical devices, aerospace, renewable energy and consumer technology.
“The collaboration with Maersk will bring more targeted global investments into Malaysia through strategic and value-added engagement approach to multinational companies,” he said during the MIDA-Maersk memorandum of understanding (MoU) and strategic partnership to promote investments in Malaysia signing here today.
He also said that by leveraging Maersk’s capabilities in integrated logistics, the strategic partnership could transform Malaysia into a regional logistics hub in ASEAN, further boosting infrastructure development and free trade.
“I hope that making full use of services provided, it will attract more manufacturing or trading companies, particularly multinational companies, into Malaysia,” he said.
He noted that MIDA has also facilitated Maersk’s International Integrated Logistics Services (IILS) status application, which will be only granted to logistics companies that were capable of offering, as a single entity, regional or global integrated and seamless door-to-door logistics services, along the value chain.
“With the approval of the IILS status, Maersk will now be issued the Freight Forwarding Agent and Customs Agent licence by the Royal Malaysian Customs Department and can undertake freight forwarding activity by itself,” he said.
Currently, Maersk has seven warehouses in Peninsular Malaysia for their consolidation and fulfilment activities with a capacity of up to 68,000 square metres, with over 300 staff members in 12 locations nationwide.
Sivasuriyamoorthy said the logistics industry has grown rapidly in Malaysia in recent years amidst the COVID-19 pandemic and it is expected to reach US$55 billion by 2026 at a compound annual growth rate (CAGR) of over four per cent.
Meanwhile, Maersk Thailand, Malaysia and Singapore area managing director Rupesh Jain said the collaboration with MIDA would bring more targeted global investments to Malaysia and provide an integrated supply chain solutions through a value-adding engagement approach to multinational companies, while facilitating their investment entrance or expansion in the country.