Tengku Zafrul: Malaysia on right track to draw more high-impact investments
04 Aug 2023
Malaysia is on the right track to realise the country’s efforts in attracting more high-impact investments which ultimately would elevate its economy to a higher level.
Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Tengku Abdul Aziz said he is confident that the available incentives and focus on key sectors are able to drive employment, household income and economic sustainability.
Five key target sectors that are given emphasis are aerospace, chemicals/petrochemicals, digital economy, electrical and electronics, and pharmaceuticals
He also said Malaysia has always maintain the good diplomatic relationships with its major trading partners and main sources of foreign direct investment (FDI), subsequently ensuring the investors continue to express confidence in investing in the country.
He cited an example relating to the latest announcement of an additional investment of up to €5 billion (RM25 billion) by Infineon Technologies AG which reflected investors’ confidence in the Madani Economy concept.
Infineon Technologies yesterday announced the expansion of its Kulim facility to build the world’s largest 200-millimetre silicon carbide (SiC) power fabrication plant, with an additional investment of up to €5 billion over the next five years.
According to the company, the investment will potentially contribute an annual SiC revenue of about €7 billion by the end of the decade, together with the 200-millimetre SiC conversion in Villach, Austria and Kulim, Kedah.
“If at the government-to-government level is good, doesn’t matter, domestic or international investors will have confidence in the country’s ability,” he said when appearing as a guest on the Selamat Pagi Malaysia programme on Radio Televisyen Malaysia (RTM) today.
On the back of the confidence, Tengku Zafrul said the country has also seen the recovery in the ringgit’s performance.
“We can see that local and international companies are investing more and, at the same time, what’s important is that we can see the economic fundamentals are strengthening in terms of employment as well as lower unemployment and inflation.
“It’s all about confidence, actually, I believe we can achieve the gross domestic product target of 4.0-5.0 per cent this year and this would strengthen the ringgit further,” he said.
Nevertheless, he also stressed on the importance of local players to complete the nation’s ecosystem through domestic direct investment (DDI) to support the need of the foreign investors.
“FDI will not flow into Malaysia if local companies fail to provide supplies, for example, sufficient raw materials and services as well as the required talent,” he said.
Hence, through the New Industrial Master Plan 2030 (NIMP2030), which is expected to be launched later this month, will spearhead the resilience of the small and medium enterprises, among others, via automation and innovation.
He added that NIMP2030 is a comprehensive policy framework with clear strategies in the transformation of Malaysia’s industrial sector and a special task force, to be headed by Prime Minister Datuk Seri Anwar Ibrahim, will be established to focus on its implementation and success.