Selangor's contribution to Malaysia's GDP to grow this year: MB - MIDA | Malaysian Investment Development Authority
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Selangor’s contribution to Malaysia’s GDP to grow this year: MB

Selangor’s contribution to Malaysia’s GDP to grow this year: MB

07 Jun 2023

Selangor is poised to make a higher contribution to Malaysia’s gross domestic product (GDP) in 2023 due to the vibrant economic activity in the state supported by the manufacturing and services sectors, according to Menteri Besar Datuk Seri Amirudin Shari.

He said, “From our track record and our performance, the increase (of contribution to Malaysia’s GDP) will be between 0.3% and 0.5%. So for example, in 2020 we have a contribution of 24.3%, in 2019 it was 24.1%. 2018 was 23.7%. The supporting factor is the lively economic activity centered in Selangor. And part of our economy has converted to a service economy and no longer depends entirely on manufacturing. And during Covid-19 this sector developed very well. And the third is definitely that the First Selangor Plan has excited the presence of investors in several aspects of the new development areas and regions that we have announced.

“The one that has been running is the NCT Smart Industrial Park in Kuala Langat, now 50% of the area that has been opened, has been filled and offers have been made. All this will give shifts and effects to economic activities. Manufacturing and services contribute 90% to the state of Selangor and indeed if this industrial park is smart or managed or the smart services sector will also grow a lot and strong, manufacturing will also strengthen, with less dependence on mass labour but technology.”

In 2022, he said, Selangor contributed 25% to Malaysia’s GDP as the country emerged from Covid-19 pandemic with the health and economic challenges it posed.

“We are confident that in 2022 we will be able to pass 25% but we have to wait for the official figures. The last increase is 24.8%, following the trend it will increase 0.2-0.3%. But we will definitely pass 25% for 2022,” he said at the Selangor Investors Appreciation Awards 2019-2022 hosted by the Selangor state government in collaboration with Invest Selangor Bhd.

He said Selangor’s strategic location, robust infrastructure, skilled workforce, supportive business environment, and diverse industries make it the best investment destination in Malaysia. The state continues to attract local and foreign investors who seek a dynamic and thriving business ecosystem, offering tremendous opportunities for growth and success.

“Despite the global health and economic challenges faced in recent years, Selangor has seen remarkable investment activities and demonstrated resilience as an investment destination. The State recorded RM17.04 billion in 2019, RM 18.43 billion in 2020, RM7.51 billion in 2021, and RM12.21 billion in 2022 in the manufacturing sector alone. These investments have created job opportunities, fuelled economic growth, and bolstered key industries in Selangor,” Amirudin said.

The Selangor Investors Appreciation Awards 2019-2022 honours the contributions of foreign and domestic investors to the State’s economic success.

The 2019-2022 winners were selected based on their Malaysian Investment Development Authority-approved manufacturing projects in Selangor.

Through the organisation of the Selangor Investors Appreciation Awards, the state government aims to encourage and promote investment in Selangor, attract new investors, and foster a positive investment climate. It also serves as a platform for networking and knowledge sharing among industry players while creating awareness about the opportunities and potential of investing in Selangor.

“This time around, we show our deep appreciation for those of you who have been with us every step of the way as we weathered our generation’s toughest three-pronged storm; the Covid-19 pandemic and ensuing health crisis, a geopolitical battle, and the challenge of inflation which we are still experiencing to this day.

“Despite these tremendous challenges, you have displayed tremendous resolve and dug your heels in by showing your confidence in the Selangor State Government, enabling this state to contribute nearly one fourth of the whole national economy,” Amirudin said.

Source: The Sun Daily