PACU to speed up approved investment execution: MIDA
01 Aug 2021
Malaysian Investment Development Authority (MIDA) is closely tracking the implementation of approved investment through the Project Acceleration and Coordination Unit (PACU).
MIDA chief executive officer Arham Abdul Rahman said the end-to-end facilitation unit would ensure all approved investment projects will be implemented as soon as possible.
“We have to understand the type of projects that we want. So the focus is still on high-technology, capital and knowledge-intensive investments.
“We know our strength and weakness, particularly workforce. We are still dependent on foreign workers, but we are no longer promoting labour intensive,” he said during a session an interview with Money Matters aired on TV3 yesterday.
Arham said Malaysia is undergoing a transition period since the last decade, evolving from import substitution to export orientation.
“We went to high-technology and now is the era of smart and digital investment. So that should be our focus,” he said.
For example, he said the government agency would ensure approved investment progressively translate into the implementation.
“The nature of the manufacturing project will usually take about one to two years to be readily realised. They need time to clear the land, install the machinery and offer job recruitment.
“That is a normal timeframe for the manufacturing sector to implement the project. We also work with other government agencies, including local and state authorities,” he said.
Arham said MIDA aspired to entice and identify potential people who fit into the high-tech and capital intensive investment.
“Although the border is close, we have a one-stop centre – the committee comprised MIDA, International Trade and Industry (MITI), Health Ministry (MoH) and Immigration Department – to facilitate investment during the pandemic.
“We receive a positive response from potential invested and stakeholders via PACU, an end-to-end facilitation from the approval until the implementation of the project,” he said.
Arham said PACU would collectively identify the problem and determine how long it will take for the approval to get at the local authority.
“After the approval at MITI or MIDA level, investors require another licensing approval certification. Subsequently, MIDA under the PACU will work closely with all the stakeholders, including the state level.
“By having PACU, we can monitor and able to track the progress of the project at a particular time,” he said.
Arham said PACU has the ‘dashboard’ to monitor and track the project with various engagements with all stakeholders to improve its investment facilitation and delivery services.
“This is to ensure the project can be implemented as soon as possible,” he said.
Arham said PACU had facilitated 1,600 projects in terms of implementation had shown positive results.
“Time taken is lesser to implement projects. Therefore, we hope to expedite the implementation process as soon as possible by PACU,” he said.
Arham said the approved investment is categorised under investments that had been submitted applications to MIDA.
“After the evaluation, we will discuss at the National Committee of Investment (NCI), which comprised Finance Ministry, MITI and MIDA.
“Once we made a decision – it can be approved or rejected. So that is the number that we capture as approved.
“After the approval, normally we ensure that all the projects that have been approved will be implemented or on the ground. This will translate into how many jobs are created based on the implementation.
Based on the aggressive implementation from the approved figure that we have given in the previous years – about 75 per cent to 80 per cent from that approved projects had been implemented,” he said.
Meanwhile, MIDA has approved RM80.6 billion worth of investments in the manufacturing, services and primary sectors in the first quarter (1Q) of 2021, a surge of 95.6 per cent from RM41.2 billion a year ago.
MIDA said these approved investments involved 993 projects and were expected to generate 32,557 job opportunities.
It added that the total approved foreign direct investments (FDI) in the manufacturing, services and primary sectors jumped 383 per cent to RM54.9 billion in Q1 from RM11.4 billion a year ago.
Arham said the RM80.6 billion was the commitment or strong interest indicated by potential investors who wanted to set up their business operations in Malaysia.
“We have undertaken continuous effort in promoting investment into Malaysia. As a result, the approved investment in Q1 represented the whole economy, including the manufacturing, services and primary sectors.
“We managed to attract a few investments in the sector. The projects are in high technology and capital intensive in nature – we look forward and attracting for many years,” he said.
He said MIDA had undertaken all initiatives to promote investment into the country via virtual and physical despite the ongoing pandemic.
“Malaysia is still attractive to foreign investors. They (investors) have confidence in this country due to the policy and facilitation and the government’s commitment.
“Our policy and incentives are transparent, depending on the incentive that we can support in addition to other facilitation.
“We have investment guarantee agreement and double taxation agreement,” he added.