4-8-2023 (KUALA LUMPUR) Malaysia is making significant strides in attracting high-impact investments, propelling its economy to new heights, according to Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz. He expressed confidence in the effectiveness of existing incentives and the focus on key sectors to drive employment, boost household income, and ensure economic sustainability.
The Malaysian government has identified five key target sectors for development: aerospace, chemicals/petrochemicals, digital economy, electrical and electronics, and pharmaceuticals. Emphasizing these sectors is part of Malaysia’s strategy to attract more foreign direct investments (FDI) and stimulate economic growth.
Maintaining robust diplomatic relationships with major trading partners and key sources of FDI has been instrumental in fostering investor confidence in Malaysia. Minister Tengku Zafrul cited the recent example of Infineon Technologies AG’s additional investment of up to €5 billion in Malaysia, reflecting the investors’ trust in the Madani Economy concept.
Infineon Technologies’ expansion in Kulim to build the world’s largest 200-millimetre silicon carbide (SiC) power fabrication plant demonstrates Malaysia’s appeal as an investment destination. The investment is expected to generate an annual SiC revenue of about €7 billion by the end of the decade.
Speaking on the Selamat Pagi Malaysia programme on Radio Televisyen Malaysia (RTM), Minister Tengku Zafrul emphasized that a positive government-to-government relationship has a positive impact on investors’ confidence, regardless of whether they are domestic or international investors.
The increased investor confidence has also contributed to the recovery of the Malaysian ringgit’s performance. With more local and international companies making investments, the nation’s economic fundamentals are strengthening, resulting in improved employment figures and lower unemployment and inflation rates. Minister Tengku Zafrul expressed optimism that Malaysia can achieve its gross domestic product (GDP) growth target of 4.0-5.0 per cent this year, which will further bolster the ringgit.
While foreign direct investment is essential, the Minister highlighted the significance of local players in completing Malaysia’s ecosystem through domestic direct investment (DDI). Local companies play a crucial role in providing the necessary supplies, raw materials, services, and talent that foreign investors may require.
The upcoming New Industrial Master Plan 2030 (NIMP2030), set to launch later this month, will prioritize the resilience of small and medium enterprises through automation and innovation. This comprehensive policy framework will strategize Malaysia’s industrial sector transformation, with Prime Minister Datuk Seri Anwar Ibrahim leading a special task force focused on its successful implementation.
