Selangor plays key role in Malaysia’s reindustrialisation — Tengku Zafrul
24 Oct 2023
Selangor plays an essential role in the nation’s reindustrialisation as it is already prepared for the second economic take-off for the industries, in line with the Federal government’s recent launch of the New Industrial Master Plan 2030 (NIMP 2030).
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this was also due to the opportunity to reform and transform Malaysian industries’ foundation.
“We want to make Selangor the (centre) of Malaysia because it already has the base and is more advanced,” he said during the 2024 Selangor Budget town hall session between the state government and the ministry in Kuala Lumpur today.
Also present were Menteri Besar Dato’ Seri Amirudin Shari, several state executive councillors, and representatives of state government agencies.
Apart from the manufacturing sector, Selangor is set to lead in various sectors, including artificial intelligence (AI), the halal industry, and green technology.
“Manufacturing is important to our country, with Selangor and Penang playing a major role, contributing 24 per cent to our Gross Domestic Product (GDP) and growing at a rate of six per cent (last year).
“Selangor is one of the major manufacturing exporters, and out of the 80 per cent, half of it is E&E (the electrical and electronic products industry), so it is one of the sectors with a lot of potential in the state as it can connect back to aerospace and many more since it is very broad.
“Selangor can also focus on AI as it cuts across all sectors, and when we do a study, Selangor has the talent and capacity to become a centre for Malaysia. Among others are EV (electric vehicle), aerospace, and CCU (carbon capture and utilisation),” Zafrul said.
He added that Selangor is reaching greater heights in Asean and has the potential to “be the heart of the region”, recording a significant GDP among other Asean countries.
“Selangor plays a role for Asean. If we calculate the GDP for Selangor in Asean, it is bigger than (some) countries in Asean itself.
“It is a logistics hub, with another big port coming in Pulau Carey. You can be the heart of Asean, so do not only look within Malaysia but look at Asean moving forward,” Zafrul said.
Citing data from the United Nations Conference on Trade and Development on global foreign direct investment (FDI) last year, the minister said while the figure dropped by 12 per cent, flows to Asean countries increased by five per cent.
According to the UNCTD data, flows to Malaysia grew by 39 per cent in 2022, a new record for the country.
“We have an opportunity this year and the next to focus… the window is not long. So, we will work closely with the state. While we have the opportunity for the realignment of supply chain as many have shifted to Asia and Southeast Asia, let us capture this, we do not know how long the window will be open,” he said.
Meanwhile, Zafrul is also cautious about China’s slow economic recovery, which would impact the country and the state’s economic growth.
Due to global trade slowing down, Malaysia’s challenges are reflected in the trade figures.
“When doing a simulation for Selangor, we need to take into account China’s slowdown, which will impact not just Malaysia but Selangor, as one of the key drivers of growth for the country (and) will be affected (as well).
“China has been our largest trading partner for 14 years consecutively, so we would be affected,” he said.
Source: Selangor Journal
