Private sector funding is vital for the success of New Industrial Master Plan 2030, says Zafrul
01 Sep 2023
The New Industrial Master Plan 2030 (NIMP 2030), which is expected to increase the competitiveness of Malaysian companies in the global supply chain, will need greater participation from the private sector, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He said that as most missions and projects outlined in the master plan are commercially driven, the success of these projects is very much reliant on private sector funding sources.
“We have looked at the capital market and the banks on how they can assist. This NIMP project is very commercially driven and the private sector will look at the viability of those investments. This mission-based approach also means these initiatives are agile and not static,” he told the media at the launch of NIMP 2030 on Friday.
The NIMP 2030 is estimated to require RM95 billion through its seven years, to propel the country’s economic growth, which would be mainly mobilised from private equity, capital and financial markets.
Tengku Zafrul said the government will approach government-linked companies (GLCs) and government-linked investment companies (GLICs) listed on the stock exchange for the funding requirement of this master plan.
For now, close to 10% of the investment requirement, or RM8.2 billion, will be allocated by the government to fund the NIMP 2030 action plans throughout its implementation period.
“It will be all, GLIC, GLCs such as Petronas, Perodua. But mostly the private sector participants will definitely include capital investments on their part,” the minister said, adding other details will be announced during the tabling of Budget 2024.
He added the master plan will position Malaysia favourably to take its share of foreign direct investments (FDI) that have positively flown into Asia in 2022.
“The global dynamic is changing so fast. Asia as a region has been a strong beneficiary of the flows that have been coming in. In 2022, global FDI has gone down 12%. However in Asia, it has gone up 5%. Asean as a block [is] showing positive changes because of the reliability of the global supply chain. We didn’t forecast this two to three years ago,” Tengku Zafrul said.
The NIMP 2030 is the fourth edition of the Industrial Master Plan (IMP). Its markedly different mission-based approach compared to earlier IMPs is set to transform Malaysia’s manufacturing sector by ensuring broad-based growth, in alignment with the Madani Economy’s vision and objectives.
Through strategies such as increasing economic complexity, strengthening domestic industrial linkages, and positioning Malaysian industries higher in the global value chain, NIMP 2030 targets to build Malaysia’s industrial capacity and resilience for long-term, sustainable growth.
Source: The Edge Malaysia