Tengku Zafrul: Budget 2024’s RM200m allocation for NIMP 2030 to boost industrial transformation
17 Oct 2023
Budget 2024’s allocation of RM200 million to catalyse the New Industrial Master Plan (NIMP) 2030 will boost industrial transformation, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
The government recently announced an allocation of up to 10 per cent from the future investments under the NIMP 2030 as a catalyst to accelerate the NIMP mission with a 2024 startup fund amounting to RM200 million.
Tengku Zafrul said the allocation will be channelled through two funds, namely the NIMP 2030 Industrial Development Fund (NIDF) and NIMP 2030 Strategic Co-Investment Fund (NIMP 2030 CoSIF).
“We are going to break it down to the two funds in the forms of grants and matching grants, and in terms of support for financing. But more importantly, we also want to ensure we attract the right kinds of investments,” he said during the BFM’s Breakfast Grille interview this morning.
The NIMP 2030 was launched on Sept 1, 2023, to provide national strategic direction for industrial development policies in Malaysia.
It sets six goals, namely to increase economic complexity, create high value job opportunities, extend domestic linkages, develop new and existing clusters, improve inclusivity, and enhance environmental, social, and governance (ESG) practices.
The industrial plan suggests integrating value chains, particularly between the machinery and equipment (M&E) sector and the medical device sector, as well as between the chemical and pharmaceutical sectors.
On pharmaceuticals, one of the priority sectors targeted, Tengku Zafrul said Malaysia plays a major role in the pharmaceuticals sector, including medical devices.
“We are talking about the whole ecosystem. Many of the world leaders in pharmaceuticals, including medical devices, are here in Malaysia, including Penang and Johor.
“So, it’s a major contribution to the gross domestic product as well as exports. In fact, about 80 per cent of the nation’s exports are from the manufacturing sector,” he said.
On electric vehicles (EVs), the government will introduce the Electric Motorcycle Usage Incentive Scheme for those with an annual income of RM120,000 and below, with a rebate of up to RM2,400 per buyer under the scheme to encourage the use of electric motorcycles.
The government also plans to extend individual income tax relief up to RM2,500 for EV charging facility expenses for four years and tax deductions for EV rental costs for another two years.
“I think we need to democratise EVs, in the sense that now it is more focused in the higher income bracket group. This is where the right EV policy has to come into play.
“But, also importantly, is the positive spillover it has on the economy, Malaysian companies and household incomes,” said Tengku Zafrul.