MITI to streamline roles, functions of 31 promotion agencies to improve investors’ journey
03 Jul 2023
The Ministry of Investment, Trade and Industry (MITI) is working on an initiative to streamline the roles and functions of all 31 investment promotion agencies (IPAs) in Malaysia.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the National Investment Council had acknowledged the external threats to Malaysia’s competitiveness and has entrusted MITI with the responsibility of enhancing the ease of doing business for investors by streamlining and realigning the IPA landscape.
He said that ultimately, MITI’s focus is to provide investors, both foreign and domestic, with a simple and seamless journey facilitated by clear roles and responsibilities of each approving authority.
“While we just started this initiative, I would like to invite both existing and new investors to share their experiences and suggestions on how we can eliminate pain points and vastly improve the investor’s journey in Malaysia.
“We at MITI are always open to constructive feedback,” he said during the Proton and AAPICO joint venture announcement here today.
Looking ahead, he said, with better, streamlined processes and improved investor journey, MITI and its agencies will be better equipped to position Malaysia as a truly pro-investment, pro-trade and pro-industry destination.
Meanwhile, he said the National Automotive Policy (NAP) led by MITI ensures that the automotive industry will continue to thrive in the coming years based on clear goals and targets for its future direction.
The success of the NAP is evident in this sector’s significant development of capacity in various sub-fields of automotive engineering such as mechanical, electrical, electronic, software and safety engineering.
This has made Malaysia an attractive base for global automotive manufacturers.
“Currently, we have over 30 manufacturers and vehicle assemblers who leverage the country’s ease of doing business and well-established automotive ecosystem to meet the growing domestic and regional demands for their brands.
“The presence of these manufacturers has also had a positive spillover impact on the domestic supply chain, represented by the 641 parts and components makers in the country,” he said.
Moving forward, MITI remains focused on further developing this sector.
The NAP2020 serves as the blueprint for positioning Malaysia as a regional automotive hub for energy efficient vehicles (EEVs), including electric vehicles (EVs), with a strong emphasis on the development of next-generation vehicles (NxGV), mobility as a service (MaaS) and the integration of Industry 4.0 technologies.
While the automotive sector contributed RM64.5 billion in 2022, the NAP aims to increase its contribution to RM104.2 billion to Gross Domestic Product (GDP) by 2030.
“Additionally, we are targeting RM12.3 billion worth of CBU (completely built up) vehicles exports by 2030,” Tengku Zafrul said.
Therefore, he said MITI’s expectations are high that Proton will continue to be a key player in helping the nation achieve its NAP targets, particularly in the production of EEVs as well as EVs, which are equipped with smart technology.
“Furthermore, we anticipate Proton and its partners to work closely with MITI in realising the targets of our upcoming New Industrial Master Plan 2030, which aims to transform our manufacturing industry and propel Malaysia towards more sustainable and inclusive economic growth.