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Kuala Lumpur, 21 April 2021 – Globetronics Techology Bhd., a leading miniaturised optical sensors manufacturer in Malaysia, announced the establishement of a cloud-based state-of-the-art platform through the adoption of Industry 4.0 processes in their high volume mass production operations. The expansion worth RM50.2 million will incorporate Artificial Intelligence (AI), big data analytics and Extended Reality (AR + VR) into their end-to-end intelligent supply chain and manufacturing which enables higher levels of customisation, reduction of cycle times and superior quality traceability for a diversified product portfolio and dynamic customer needs.

The move towards integrating intelligence into the company’s machines and business processes is timely in addressing the non-skilled labour acquisition challenges as well as increasing the resilience in response to the COVID-19 pandemic. The implementation of automation to its processes will also help Globetronics to focus on high revenue generation activities such as predictive and prescriptive data to maximise machine operations. The initiative maps the path for the Company’s “Lights off” factory within the next five (5) years.

Mr. Arham Abdul Rahman, Chief Executive Officer of MIDA, expressed that “In line with the Government’s aspiration to spearhead rapid digital transformation in the manufacturing sector, Globetronics’ expansion will pave the way for enhancement in productivity, job creation and deepening the Malaysians skill set by leveraging on cutting-edge technology and emerging AI capabilities.”

“The introduction of Industry4WRD policy, served as a strategic direction for Malaysia to fully embrace Industry 4.0, including smart manufacturing and smart cities, smart grids, as well as smart solutions. While digitalisation is the antidote for business survival and growth in innovation-led value creation, Globetronics’ Industry 4.0 adoption will complement the electrical and electronics industry by producing advanced semiconductor photonic products through the utilisation of autonomous robots and smart manufacturing”, he added.

Globetronics’ IR4.0 transformation focuses on workforce transformation, reimagining manufacturing and workforce training via Extended Reality (ER). The Company’s ER technology will bridge the gap between the digital and physical world by superimposing live-streamed images with its extensive database of machines learnt data from research and development (R&D) as well as manufacturing phases. Subsequently a digital guru may be utilised to ensure a seamless work action and reduced human errors in day-to-day operations. The closed-loop integration of product, process and quality data via AI will serve as an inadvertent error prevention guarantee of its quality excellence. This will be the enabling technology to directly uplift lesser skilled workers and proportionally bring up the minimum wage.

The new recharacterising of Globetronics’ manufacturing processes will be the testbed to proliferate and intensify the use of big data across its end-to-end supply chain and manufacturing system. The workforce transformation will position the company to be the front runner in Malaysia in establishing a data-driven culture and hub to attract data science talents, locally and globally. Besides, the expansion would also demonstrate Globetronics’ commitment to continually invest in emerging technologies that are critical to support the constantly evolving landscape to ensure its business sustainability.

Globetronics’ new platform is set to gear up for exciting next generation semiconductor wafer-level packaging technology including the 2.5D, where the stacking of dies will be replaced by flip-chip on a silicon interposer.

About Globetronics
Globetronics is a Malaysian technology company that is involved in the manufacturing of Miniaturised Optical Sensors, Light Emitting Diode (LED) components and modules, Quartz Crystal Timing Devices, Integrated Circuits, Optoelectronic Products as well the provision of technical plating services. It’s main operating sites are in Penang and Kuala Lumpur. Globetronics is listed on the Main Board of Bursa Malaysia, with a market capitalisation of RM 1.8 billion and a has a staff strength of 1,200 employees.

About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

Media contacts:
Globetronics:
Ng Kok Yu
Email: [email protected]| Tel.: +604 819 4160
MIDA:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | Tel.: +603 2267 3509

Globetronics Embarks on RM50 Million Industry 4.0 Transformation Programme for Business Sustainability

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Partnership for Microsoft’s first datacentre region and skilling of one (1) million Malaysians in new and advanced cloud technologies

Kuala Lumpur, 20 April 2021 – The Malaysian Investment Development Authority (MIDA) is proud to pronounce Microsoft’s Bersama Malaysia initiative as a game-changer towards the country’s digital-first agenda, in line with the nation’s MyDIGITAL aspirations.

Microsoft’s plan to establish its first datacentre region in Malaysia and its catalytic role in digital infrastructure is set to accelerate the nation’s innovation in cloud technologies, further boosting local and foreign investors’ confidence in Malaysia. Microsoft’s commitment to prowess up to 1 million Malaysians by December 2023 will propel the local digital workforce to drive the nation’s digital economic growth.

Microsoft’s Bersama Malaysia was launched yesterday by Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia. Also present at the launch ceremony were Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI); Dato’ Sri Mustapa Mohamed, Minister in the Prime Minister’s Office for Economics; Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Finance; and Datuk Seri M. Saravanan, Minister of Human Resources. This collaboration strengthens Microsoft’s long-term commitment to help empower Malaysia’s inclusive digital economy through public-private partnerships.

Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of MIDA, who was also present at the launch, congratulated Microsoft on its Bersama Malaysia initiative. “Malaysia has tremendous opportunity to fortify itself as a preferred location for technology players. Microsoft’s investment with its first datacentre region in our country is a strong testament to Malaysia’s pro-business, pro-trade and business-friendly investment policies. Having Microsoft, a global technology player expanding its footprint in the digital infrastructure in Malaysia, helps form the backbone for a sustainable digital ecosystem. Most importantly, Microsoft’s commitment through its world-class digital infrastructure will position us in a higher rank to progress into a digital nation.” said Mr. Arham.

“Microsoft’s long-term presence for nearly 30 years also reflects their confidence in our local talents in driving the nation’s digital transformation. We will continue to support Microsoft’s efforts in Malaysia, particularly in transforming the nation’s digital landscape, infrastructure and its skilled workforce, thus enhancing Malaysia’s competitiveness and attractiveness as the preferred destination for high technology investments,” he added.

The upcoming Microsoft datacentre region is expected to benefit local businesses, the Government, and communities across all sectors. The local datacentre region will comprise a set of datacentres located within Greater Kuala Lumpur, deployed within a latency-defined perimeter and connected through a dedicated low-latency network. Users are able to gain fast access to Microsoft’s leading-edge cloud services as well as the ability to store data and applications in the country.

The datacentre region will also feature Azure Availability Zones, with unique features such as physical locations equipped with independent power; network and cooling support for additional tolerance and withstand datacentre failures. This ensures data remains available and protected, even when there’s an event impacting the datacentre site such as power failure; without comprising data residency, privacy, security or compliance.

Based on research conducted by IDC¹, Microsoft’s investment in Malaysia will assist in generating approximately RM19 billion² in revenues over the next four (4) years within the country’s ecosystem of local partners and cloud-consuming customers. Moreover, Microsoft and its partners, together with the cloud-using customers will also assume significant roles in growing the nation’s workforce, contributing more than 19,000 direct and indirect new job opportunities over the same period of time.

Mr. K. Raman, Managing Director of Microsoft Malaysia, added, “Having a robust digital infrastructure and a future-ready digital workforce will play a profound role in ensuring Malaysia’s economic recovery and resilience. We fully support the Government’s bold and progressive vision as targeted in the Malaysia Digital Economy Blueprint. We are confident that the digital-first, cloud-first policy outlined in the Blueprint will further propel innovation and accelerate the nation’s transformation to become a regional leader in the digital economy. In support of this and echoing our Bersama Malaysia commitment, we are humbled by the support extended by MIDA and we look forward to strengthening our partnership to realise Malaysia’s inclusive digital aspirations.”

Mr. Arham concluded that the Government will continue to adopt a targeted approach in attracting investments. The Government recognises the need to develop the high technology sectors as one of the strategies to sustain the momentum of economic growth and to improve the competitiveness and resilience of the Malaysian economy. In remaining on this steady path, the National Digital Economy and Fourth Industrial Council (MED4IR) will optimise the development of Fourth Industrial Revolution (4IR) technology and digital economy, in line with the 2030 Shared Prosperity Vision and Sustainable Development Agenda. The Economic Cluster of the MED4IR Council will be governed by MITI, with MIDA as an active Committee Member in the Government’s initiatives to drive the national 4IR and digital growth.

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About MIDA
MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

For more information, please contact:

MIDA
Manjit Kaur Balkar Singh (Ms.)
Email: [email protected]
DL: +603-2267 3509

Microsoft Malaysia
Eric Lai (Mr.)
Email: [email protected]

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¹ IDC Info Snapshot, sponsored by Microsoft, The Microsoft Cloud Dividend Snapshot: Malaysia, Doc. #US46918020, October 2020
² USD4.6 billion (Bank Negara Exchange Rate : USD 1=RM 4.1405 as at 5 April 2021

MIDA Welcomes Microsoft’s First Data Centre Region in Malaysia – A Game-Changer for Malaysia’s Digital Economic Transformation

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Kuala Lumpur, 14 April 2021 – The Malaysian Industrial Development Finance Berhad (MIDF) has inked a Memorandum of Understanding (MOU) with the Malaysian Investment Development Authority (MIDA) to offer small and medium enterprises (SMEs) and Mid-Tier Companies (MTCs) the opportunity to benefit from MIDA’s Smart Automation Grant (SAG).

The SAG initiative, introduced in the National Economic Recovery Plan or PENJANA with an initial allocation of RM100 million, was launched by the Senior Minister and Minister of International Trade and Industry (MITI) on 2 December 2020. This grant is awarded to eligible SMEs and MTCs on a matching basis or 50 per cent of total eligible expenditures, up to a maximum grant cap of RM1 million per company. Based on the encouraging response for SAG, the Government announced an additional RM50 million fund under the Strategic Programme to Empower the People and Economy or PEMERKASA to drive more SMEs and MTCs to improve their operation and production through automation and digitalisation.

The collaboration between MIDF and MIDA aims to promote and facilitate the SAG’s utilisation through a strategic alliance. Under this alliance, MIDA will provide grants for qualified companies, whereas MIDF will offer financing to these companies for their remaining expenses. Additionally, qualified companies already enjoying financing facilities from MIDF may lower their financial commitment upon successful application for SAG.

Mr. Ahmad Khairuddin Abdul Rahim, Deputy Chief Executive Officer II of MIDA, remarked, “The Government, through MIDA is committed to assist Malaysia’s industry players and businesses towards higher productivity and market competitiveness. The collaboration between MIDA and MIDF is in line with our objective to provide financial assistance for Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) towards automation and digitalisation. These two processes are crucial components and push factors in speeding up operation process, reducing errors and increase productivity.”

“The objective of SAG is to reassure SMEs and MTCs in the manufacturing and services sectors to automate and digitalise their operations and production, to spur their competitiveness, to reduce the reliance of foreign workers and to create new job opportunities in high value-added sectors. The Government looks forward for Malaysian companies to embark transformation towards digitalisation and automation to remain resilient amidst the impact of the COVID-19 pandemic and economic contraction. We trust that this partnership would result Malaysia’s businesses growth across industry supply chains” he added.

Dato’ Charon Wardini Mokhzani, Group Managing Director of MIDF, iterates, “This MoU underlines the close relationship between MIDA and MIDF and our joint commitment to support companies that aspire to automate and modernise. As a nation, we need to increase productivity and value-add Malaysian businesses to higher levels in our path towards a high-income nation; investing in automation and digitalisation is one way to achieve this. MIDF is honoured to be part of this important initiative.”

SMEs and MTCs that have been undertaking manufacturing or services activities in the past 12 months are eligible to be considered for SAG. The automised machine, equipment or software purchased through this grant must be utilised directly in the company’s value chain in order to qualify for the incentive. Improvements in two components (productivity and efficiency) will be assessed on a range of criteria such as reducing unskilled workers, man-hours, defect rate and the increase in production volume. Interested companies are advised to submit applications to the various industries and services divisions in MIDA.

To find out more about the Guidelines of SAG please visit:
https://www.mida.gov.my/forms-and-guidelines/

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About MIDA

The MIDF group carries out investment banking, development finance and asset management. It serves entrepreneurs as well as large corporations and institutions. Malayan Industrial Development Finance Ltd (now MIDF) was established in 1960 following the recommendations of the World Bank on how to finance the industrialisation of Malaya, and over the last 61 years the MIDF Group has been part of the development and modernisation of Malaysia’s economy and capital markets. MIDF is a wholly-owned subsidiary of Permodalan Nasional Berhad.

For media enquiries, please contact:

Ms.Masni Muhammad
Director, Strategic Planning and Policy Advocacy (Manufacturing) Division
Malaysian Investment Development Authority (MIDA)
Phone : +603 2267 3444
Email : [email protected]

Ms. Irmawati Mahamad Tahir
Vice President
Group Strategic Communications
Malaysian Industrial Development Finance Berhad (MIDF)
Phone : +603 2173 8756
Email : [email protected]

MIDF Inks MOU with MIDA on Smart Automation Grant to Drive Malaysian Companies into Automation

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R&D for Business Programme Attracted 1,392 Companies

KUALA LUMPUR, 13 April 2021 – The Malaysian Investment Development Authority (MIDA) successfully hosted the Research and Development for Business (RD4B) Programme to promote and increase awareness of the importance of R&D activities among industries players.

The event was an important platform for businesses to familiarise with government departments and agencies that promote R&D in Malaysia. Speakers from MIDA, Ministry of International Trade and Industry (MITI), Ministry of Science, Technology, and Innovation (MOSTI), Ministry of Higher Education (MOHE), Inland Revenue Board (IRB), Collaborative Research in Engineering, Science and Technology Centre (CREST) and Cyberview Sdn. Bhd. briefed 1,392 foreign and domestic participants on resources pertaining to R&D undertakings.

It was also an excellent avenue for new and existing businesses to knowledge up the available government assistance in making informed R&D investments or expanding their businesses in the R&D segment.

In his keynote address, Mr. Arham Abdul Rahman, Chief Executive Officer of MIDA iterated that the Government, in recognising the importance of research, development and innovation, provides funding support through various ministries for all stages of R&D from idea creation, research, development and commercialisation. He said, “In Budget 2021, the Government further expanded the tax incentive for companies that commercialises the R&D findings of public research institutions and, public and private higher learning institutions. The eligible R&D scope now includes both resource-based and non-resource-based undertakings.”

As of 31 December 2020, MIDA recorded a total of 199 approved R&D-related projects with capital investments of RM3.1 billion that created 6,949 high-skilled jobs. These approvals comprise 30 R&D companies, 80 contract R&D companies, 46 companies with in-house R&D facilities, 26 R&D status companies and 17 national strategic R&D projects. Among the top industries in which the R&D projects were approved include electrical and electronics (E&E), automotive and transport, machinery and equipment as well as chemical and chemical products.

Mr. Arham stressed on, “Given the cautiously optimistic investment climate due to the current pandemic, MIDA remains positive on the outlook of investments in R&D. We hope to continuously grow investments in R&D and give our utmost support to spur R&D and innovation in the country. Furthermore, R&D plays an imminent role in Industry 4.0. MIDA is also encouraging companies to tap upon the MIDA Lighthouse Programme that assists companies to accelerate Industry 4.0 adoption to a scalable and impactful stage. Simultaneously, it also hopes to influence ecosystem providers towards similar Industry 4.0 transformation by facilitating companies to address implementation challenges and barriers.”

Companies are encouraged to leverage the Government’s various support and facilities to move towards Industry 4.0. Among the initiatives under MIDA include the Automation Capital Allowance, Industry4WRD Intervention Fund, as well as the Smart Automation Grant (SAG). More details can be obtained at www.mida.gov.my.

During the programme, Mr. Arham officiated an i-R&D portal managed by MIDA. “This initiative looks to promote companies along the R&D value chain by connecting all relevant stakeholders via the portal. The connectivity between the R&D companies, researches and academic institutions is tantamount to ensure that R&D initiatives in the country are being realised effectively,” Mr. Arham added.

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Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

MIDA Facilitates Industries to Pursue R&D

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Kuala Lumpur, 6 April 2021 – The Government has agreed to provide certain relaxation of conditions to manufacturing and services companies that have been approved with incentives under the purview of the Malaysian Investment Development Authority (MIDA). This is part of the proactive measures undertaken by the Government to continue Malaysia’s economic revitalisation efforts by facilitating investments and restoring investors’ confidence.

Under the normal procedure, the approved companies are required to comply with certain conditions and implement their approved projects within a specific period, as stipulated in the Approval Letters issued by MIDA. However, with the implementation of this relaxation mechanism, a company may be considered for certain relaxations on achieving the approved thresholds or meeting the implementation timeline of their approved projects, subject to compliance of identified criteria set by the Government. The relaxation of compliance with stipulated conditions is for the period between 2020 and 2021.

To leverage this facility, companies are required to submit their soonest requests to MIDA with relevant supporting documentation based on the prevailing policy decisions set by the Ministry of International Trade and Industry as well as the Ministry of Finance.

The Government hopes that this measure will further assist in supporting and stimulating the growth of the manufacturing and services sectors in Malaysia given the onset of the COVID-19 pandemic and the enforcement of the Movement Control Order (MCO) which have challenged economic activities and businesses.

Investors are encouraged to submit their appeal applications on relaxation/amendment of incentive conditions to the relevant divisions for specific industries and services in MIDA. For further enquiries directly related to policy matters, please contact the Strategic Planning and Policy Advocacy (Services) Division of MIDA at 03-2267 3633 (ext. 6675) / [email protected] or the Strategic Planning and Policy Advocacy (Manufacturing) Division of MIDA at 03-2267 3633 (ext. 6786) / [email protected].

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Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Relaxation Of Incentive Conditions For Manufacturing And Services Projects Approved Under The Purview Of MIDA

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Kuala Lumpur, 1 April 2021 – The Malaysian Investment Development Authority (MIDA) announced the retirement of its Chief Executive Officer (CEO), Dato’ Azman Mahmud. Mr. Arham Abdul Rahman, former Deputy CEO I of MIDA will step up to the role of the new CEO effective 1 April 2021.

Mr. Arham has an outstanding track record and highly distinguished career spanning over three decades with MIDA. He has served primarily in the foreign investment arm of the organisation, with years of service in Germany and the USA. His experience as a MIDA frontliner for attracting and facilitating foreign investments into the country, gives him the unique proposition to lead MIDA in the new norm.

Dato’ Azman’s retirement concludes his 32 years of service at MIDA. He has held various positions across many divisions within the organisation. He has been instrumental in building Malaysia’s business ecosystems, facilitating industrial development and promoting investments in line with the country’s national investment aspirations. The ultimate objective is to position Malaysia as a preferred investment destination in the region and beyond given our country’s strategic value propositions and potential business opportunities.

During Dato’ Azman’s leadership, MIDA has actively advised on, recommended and implemented policies, strategies and directions for Malaysia’s manufacturing and services sectors. Working together will all levels of stakeholders including governmental counterparts, foreign and local business communities as well as academia and training partners, MIDA has consistently achieved yearly investment targets of RM200 billion between 2014 to 2019.

Furthermore, MIDA has received several accolades in recognition of its contribution to the country’s development. Notably, MIDA’s excellence garnered the Top Investment Promotion Agency award in the Asia-Pacific National category by Site Selection magazine, a US-based international business publication, in 2015, 2016 and 2019.

The COVID-19 pandemic presented unanticipated challenges for MIDA; however, Dato’ Azman at the helm, helped MIDA and the industry stakeholders navigate the uncertainties together with the Ministry of International Trade and Industry. MIDA was instrumental in the evaluation process during the initial Movement Control Order implementation and provided pertinent inputs for the drafting of policies and strategies in the Government’s plan to revive Malaysia’s economy to ensure that the nation’s industries remain sustainable and the livelihoods of people are protected.

Dato’ Azman has also led MIDA to actively re-engineering MIDA’s business processes to keep up with innovative and agile ways of working in this age of digitisation. The increased efficiency of the various functions of the organisation will enhance core business activities and visibility as well as strengthen the strategic planning and policy advocacy capacity.

This was particularly crucial during the pandemic as MIDA remained resilient and responsive in providing advice and support to the existing and potential investors despite the international border closures and restrictions in movement and gathering imposed. In 2020, MIDA successfully held over 500 online engagements with local and foreign stakeholders to update on the latest policy changes due to the pandemic through various online platforms and digital tools to ease investors and sustain confidence in Malaysia during the challenging time.

Moreover, on 23 March 2021, the Business Travellers’ Centre in KLIA was launched as part of the One Stop Centre (OSC) initiative by MIDA to ease the movement of business travellers during the pandemic by expediting the approval of their entry into Malaysia, as Malaysia embarks on the path of revitalisation. This Centre assumes a critical role in ensuring that Malaysia remains steady on the path of economic recovery and growth by enabling business travellers’ movement to do their business in Malaysia during the pandemic.

Most recently on 26 March 2021, MIDA’s InvestMalaysia Portal went live to the public. Serving as a single entry point for the stakeholders by offering 10 modules for online application submission, the portal focuses to transform MIDA’s core business functions towards improved efficiency and productivity by embracing an integrated technology system to expedite the application and approval process and further allow companies to speed-up project implementation.

As the organisation prepares itself for a smooth transition for the future, all MIDA Management and staff would like to express their sincere appreciation to Dato’ Azman for his contributions and dedication to the organisation and the country. MIDA will continue Dato’s Azman and his predecessors’ legacies to ensure MIDA remains a world class Investment Promotion Agency to cement Malaysia’s position as the pre-eminent preferred investment destination, under Mr. Arham’s leadership.

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Media Contact:
Manjit Kaur Balkar Singh (Ms)
DL: +603-2267 3509 | Email: [email protected]

Dato’ Azman Mahmud Retires after 32 Years of Service for the Nation; Mr. Arham Abdul Rahman Helms Position as New CEO of MIDA

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Kuala Lumpur, 29 March 2021 – The Malaysian Investment Development Authority (MIDA)’s digital transformation initiative or better known as InvestMalaysia Portal, an online application submission portal, is now open to public.

“As Malaysia is adapting to this new normal, MIDA’s role is more crucial than ever to help businesses thrive and create a better future for our country. The launching of InvestMalaysia Portal will help us meet investors’ expectations through optimised process automation and seamless data capturing and analysis,” said YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI).

“We can expect a more efficient evaluation, an automated approval process and easier information sharing at a single entry point. We will also get live investment updates, real-time visibility of investment projects, undertake more informed decision-making, and real-time reporting. In short, this centralised Data Warehouse will allow us to make faster and more accurate analysis through automated dashboards. This initiative will enable us to enhance KPI monitoring functions in meeting the Client Charter,” added the Senior Minister.

Operational since 26 March 2021, the portal focuses to transform MIDA’s core business functions towards improved efficiency and productivity by embracing an integrated technology system to expedite the application and approval process and further allow companies to speed-up project implementation.

As to date, the digital platform offers 10 modules for online application submission and serves as a single entry point for the stakeholders via investmalaysia.mida.gov.my microsite. Among the modules available include the enhanced Manufacturing Licence (e-ML), Exemption Letter from ML, Enhanced Incentive (e-Incentive), Expatriate Posts and Representative Office/Regional Office (RE/RO), Import Duty/Sales Tax Exemption (JPC) and MIDA Confirmation Letter (SPM) as well as Domestic Sales.

To continuously improve and ensure the systems perform at optimum levels, MIDA has set up a dedicated Customer Service Unit known as CSU. The CSU unit comprises a verification team to receive clients’ applications and a specialised team with the investment-related experience to answer customers’ enquiries related to applications, facilitation and project implementations. The establishment of CSU is anticipated to improve the user confidence in the system and provide a better experience to the companies, internal users as well as external agencies.

The InvestMalaysia Portal is a commendable effort in MIDA’s automation journey to cater to the broad spectrum of audience. Through the implementation of an end-to-end automation application process, MIDA aims to aspire shorter processing time-line, improve client charter commitment for investors and complete the digital transformation goal in supporting the industry’s current and future needs.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

MIDA Embarks on a Digital Transformation Initiative to Re-Engineer its Business Processes and Functions: MIDA’s InvestMalaysia Portal Goes Live

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“Welcoming Investors, Keeping You Safe”

Kuala Lumpur, 23 March 2021 – Malaysia is welcoming business travellers to Malaysia while keeping everyone safe by introducing a Business Travellers Centre (BTC) at the Kuala Lumpur International Airport (KLIA). The BTC, launched today by the Senior Minister and Minister of International Trade and Industry YB Dato’ Seri Mohamed Azmin Ali, functions to facilitate the entry of foreign business travellers into Malaysia.

Located at Gate C36, Satellite Terminal, KLIA the BTC is now open for short term foreign business travellers planning to carry out their business tasks in the country. The launching of the BTC today also marks a major milestone of the Government’s unwavering mission to revive the economy and to pave the way for economic rebound in 2021.

According to Dato’ Seri Mohamed Azmin Ali, despite the challenges posed by the COVID-19 pandemic, this year will be a promising year for the Malaysian economy as the Government is committed to easing business operations for both local and foreign businesses alike.

“Malaysia has pro-business and pragmatic policies that support the investment climate in the country. Our supportive business ecosystem is in fact a catalyst to attract investors not only to conduct new business activities, but to also expand and diversify their existing operations here. The BTC is reflective of our responsiveness to the current situation and in finding progressive solutions to ensure we can achieve a balance in protecting lives and livelihoods,” said the Senior Minister.

The BTC is one of the key components of the One Stop Centre (OSC) initiative by the Malaysian Government to ease the movement of Business Travellers – from entry to exit point. The Centre assumes a vital role in ensuring that Malaysia remains an attractive investment destination for foreign businesses.

It provides a seamless support system for short term Business Travellers by providing fast-track services such as below:

i. after disembarkation from the plane to taking the RT-PCR swab test at the dedicated COVID-19 Lab within the BTC, which results can be produced within 3 hours;

ii. after having declared healthy, the business travellers will proceed to the immigration green lane; and

iii. the Government will appoint a liaison officer for the business travellers with a specific business itinerary.

Short Term Business Travellers are business travellers who do not hold any dedicated entry passes and intend to stay in the country for 14 days or less, subject to the approval of the OSC committee and a strict set of Standard Operating Procedures.

To date, the OSC Committee has approved 93 applications for Short Term Business Travellers. The Short Term Business Travellers whose applications were approved are from investing companies with total investments valued at RM15 billion.

Moving forward, the Malaysian Investment Development Authority (MIDA) – an agency under Ministry of International Trade and Industry (MITI) – has identified RM82 billion worth of investments in potential leads and another RM65.9 billion in the pipeline. In realising these potential investments, services by the OSC such as the BTC are critical. The BTC is a collaborative effort between MITI, MIDA, Ministry of Health (MOH), Department of Immigration Malaysia, Malaysia Airports Holdings Berhad (MAHB), and Malaysia Airlines Berhad (MAB).

For more information, please contact the OSC Secretariat at [email protected].

OSC Secretariat (Industry Talent Management and Expatriate Division)
Malaysian Investment Development Authority (MIDA)
Level 20, MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Phone: +603-2267 3633/3431

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About MIDA

Media Contacts:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Malaysia Introduces a Business Travellers Centre (BTC) at KLIA to Ease Entry of World Business Travellers

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Malaysia attracted a total of RM153.2 billion worth of investments in the manufacturing, services and primary sectors for the first nine months of 2015, International Trade and Industry Minister Dato’ Sri Mustapa Mohamed said.

This was lower than the RM180 billion approved in the same period last year. The drop was mainly due to a big decline in the approvals for investments in the real estate sector from RM57.9 billion in the period January-September 2014 to RM 21.0 billion in the same period this year. This is consistent with the softening in the property market.

Approvals in the other sectors however, especially manufacturing, remained robust. “This indicates that investor confidence in Malaysia remains high despite the decline in global FDI inflows and the challenging global economic environment,” he said.

The investments approved were in 3,727 projects and are expected to generate 139,720 job opportunities for Malaysians. Domestic investments of RM124.9 billion accounted for 82% of investments, with foreign investments making up the rest.

The services sector accounted for the largest share of the total investments, contributing 54.0% or RM82.7 billion, followed by the manufacturing sector with investments of RM67.7 billion or 44.2%, and the primary sector with approved investments of RM2.8 billion or 1.8%.

MANUFACTURING SECTOR

Malaysia continues to be a competitive location for manufacturing projects. A total of 522 projects worth RM67.7 billion were approved in January-September 2015 compared with RM63.3 billion in 622 projects in the corresponding period of 2014, representing an increase of 7% in capital investments.

Dato’ Sri Mustapa noted that investors have responded positively to the Government’s initiatives towards promoting investments in capital-intensive, high-value added and high technology projects. This is reflected in the increase of the capital investment per employee (CIPE) ratio from RM970,938 in the first nine months of 2014 to RM1,349,298 during the same period of this year.

Regional Corridors attracted 43.5% of approved investments in the manufacturing sector for January-September 2015. By value of investments in projects with approved Manufacturing Licence, the Sarawak Corridor of Renewable Energy (SCORE) registered the highest level with investments of RM10.6 billion, followed by Northern Corridor Economic Region (NCER) at RM6.6 billion, Iskandar Malaysia at RM3.3 billion, Eastern Corridor Economic Region (ECER) at RM1.8 billion, and Sabah Development Corridor (SDC) at RM0.3 billion.

Investments in SCORE were largely due to an Oil & Gas project, which attracted RM10.4 billion in Bintulu, Sarawak. Investments in NCER were dominated by the RM4.2 billion investments in the electrical and electronics industry. Iskandar Malaysia continued to draw projects within food manufacturing (RM1.4 billion), chemical & chemical products (RM497.8 million), fabricated metal products (RM423.4 million) and machinery & equipment (RM206.9 million). Notably, Iskandar Malaysia’s Oil & Gas activities are concentrated in the Tanjung Langsat and Tanjung Bin areas.

The full potential of South Johor is complemented by the Pengerang area. The Pengerang Integrated Complex (PIC) project, the biggest contributor to Johor’s approved investments for the first nine months of this year, is moving on a steady course. This project is expected to meet future energy requirements and strengthen PETRONAS’ position as a key player in the Asian chemicals market as it focuses on differentiated and specialty chemicals.

ECER received 20 manufacturing projects during this period, which are expected to generate 1,280 employment opportunities, while SDC attracted a total of 8 manufacturing projects with investments of RM338.2 million during the first nine months of 2015.

SERVICES SECTOR

Approved investments in the services sector contracted slightly in the first nine months of this year compared with the corresponding period of 2014. This was mainly due to the softening of the property market that led to the lower investments in the real estate sector, which recorded RM21.0 billion for the first 9 months of this year compared with RM57.9 billion in January-September 2014.

However, investments in majority of the key services subsectors registered increases. Among them include the MSC status approvals with an increase of 63% to RM3.8 billion in January-September this year. This was followed by utilities subsector which escalated 62% to RM10.1 billion and the health services subsector that saw an increase of 50% to RM3.3 billion. The education services registered a 26% increase to RM1.5 billion while hotel & tourism saw a rise of 7% to RM4.8 billion.

The potential employment for the approved services projects for January-September 2015 has also increased by 13.2% (88,433) compared with the potential employment opportunities for the same period last year (78,153).

For the period January-September 2015, MIDA approved 173 projects on Global Establishments proposing to make Malaysia their Global Operations Hubs, Principal Hubs, Operational Headquarters, International Procurement Centres, Regional Offices, Representative Offices and Treasury Management Centres for businesses. Investments in these projects were valued at RM7.1 billion, with significant spin-off effects on the economy. These activities are expected to create job opportunities for more than 3,700 knowledge-based or highly technical-skilled workers, as well as putting Malaysia on course for greater integration into the Global Supply Chains/Global Value Chains. Out of the total, MIDA has approved 3 Principal Hub projects with investments worth RM703.7 million since its introduction on 1 May 2015.

PRIMARY SECTOR

Investments in the primary sector decreased from RM12.2 billion to RM2.8 billion in the first nine months of 2015, attributed by lower investments in the upstream oil and gas activities and the challenge of lower global crude oil prices. Industry players in the oil and gas sector are rationalising and streamlining their operations to make their projects economically viable at the current oil price range.

Dato’ Sri Mustapa, while noting that the total investments for the first nine months of 2015 were lower than the RM180 billion during the same period last year, pointed out that Malaysia’s achievement was still commendable given the global economic environment.

“Malaysia continues to be a preferred investment destination despite falling global FDI flows. And the high rate of domestic investments demonstrates the confidence of Malaysian investors in the Government’s Economic Transformation Programme. The outlook for the full year of 2015 would still be encouraging, with approval levels in the manufacturing sector being on track. I am optimistic that the services sector, with the exception of the real estate industry, will also deliver a similar performance,” he said.

Malaysia Records RM153.2 Billion Investments In The First Nine Months Of 2015

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Kuala Lumpur, 16 August 2019 – “Despite the challenging global economic landscape and more intense competition, Malaysia continued to sustain its investment growth momentum in the first half of 2019 (1H2019),” said YB Datuk Darell Leiking, Minister of International Trade and Industry (MITI).

Malaysia recorded a total of RM92.0 billion of approved investments in the services, manufacturing and primary sectors for 1H2019, a modest increase of 7.6% compared with RM85.5 billion for the same period last year. These investments involved 2,554 projects and will create 59,542 employment opportunities in the country.

The services sector accounted for the largest share of the total with investments amounted to RM55.0 billion or 59.8%, followed by the manufacturing sector with RM33.1 billion (36.0%) and primary sector with
RM3.9 billion (4.2%).

“In 1H2019, foreign investments in the manufacturing, services and primary sectors increased by 97.2% to RM49.5 billion from RM25.1 billion recorded in the first half of 2018. Domestic investments approved in 1H2019 amounted to RM42.5 billion, contributing 46.2% to the total. This illustrates Malaysia competitive and comparative advantages in attracting investments amid mounting global market uncertainties and trade war tensions,” said YB Datuk Darell.

Services Sector

A total of 2,150 services projects were approved in 1H2019. These projects are expected to create more than 28,650 job opportunities. The real estate sub-sector remains as the largest contributor with RM18.5 billion despite a decline of 35.1% from 1H2018. However, the global establishment, distributive trade, utilities and the hotel and tourism sub-sectors have all recorded increases during the period, accounting for 54.4% of total approved investments in the services sector. The distributive sub-sector, in particular, recorded a significant rise of 277.8% to RM10.2 billion from RM2.7 billion in 1H2018 for the period of January to June 2019.

Domestic investments made up the larger portion, recording RM32.6 billion or 59.3% of the total approved investments for the sector during this period while the remainder, RM22.4 billion were from foreign sources.

A notable services project approved in 1H2019 is the large scale solar (LSS) expansion project to be undertaken by TNB Bukit Selambau Solarin Bukit Selambau, Kedah. The LSS project with a capacity of 30 MWAC will provide renewable energy (RE) totalling 1,700MW by the year 2025. This is in line with the Government’s target of achieving 20 per cent of the country’s electricity to be generated from renewable sources by 2030.

Manufacturing Sector

The positive investment growth of 1H2019 was driven by the robust performance of the manufacturing sector that soared by 74.2% compared to 1H2018. Malaysia’s manufacturing sector recorded approved investments of RM33.1 billion from 366 manufacturing projects for the first half of 2019 as compared to RM19.0 billion from 288 manufacturing projects in the same period last year. Majority of the investments, 75.8% or RM25.1 billion were from foreign investments and the remaining 24.2% or RM8 billion were from domestic sources.

The approved manufacturing projects will create 30,449 job opportunities the largest potential employer in the economy. The jobs created include 1,829 electrical and electronics engineers, 896 mechanical engineers and 211 chemical engineers. In addition, the projects will also require about 2,886 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

The top foreign sources were from the United States of America (USA) with investments of RM11.7 billion, followed by China (RM4.8 billion), Singapore (RM3.1 billion), Japan (RM2.1 billion) and the British Virgin Islands (RM1.4 billion). These five countries jointly accounted for 92.0% of total foreign investments approved in the manufacturing sector for this period.

“The expansion project of Longi Technology (Kuching) from China is amongst the notable high technology project approved from January to June 2019. The company is expanding its capacity to produce monocrystalline solar cell to meet demand in overseas markets. Other approved projects include a new project from Advance Energy Industries and expansion projects by On Semiconductors and Plexus Manufacturing. These three companies are from the USA,” added YB MITI Minister.

“Malaysia has vast potentials to collaborate with foreign companies and benefit through the transfer of technologies and expertise that cut across many industries. The Ministry of International Trade and Industry (MITI) through MIDA continues to encourage local sourcing by foreign companies.

We want to see more local companies to be part of the global value chain,” said YB MITI Minister.

As the Government is drafting the 12^th Malaysian Plan, the contribution of the catalytic and high growth subsectors namely electrical & electronics, chemical & chemical products, machinery & equipment, medical devices and aerospace emphasised under the 11th Malaysia Plan Mid-Term Review cannot be denied. In 1H2019, these sectors contributed RM19.1 billion or 57.7% of total approved investments in the manufacturing sector through 131 approved project. Once implemented, these projects will potentially create 16,732 job opportunities and further energise the development of the overall manufacturing sector.

Malaysia has consistently pursued more capital intensive projects: moving away from labour-intensive projects to high-skilled and technologically advanced projects that support the sustainable development agenda of the nation. The capital intensity, measured by capital investment per employee (CIPE) ratio of projects approved within the sector increased toRM1,088,715 in January to June 2019 from RM837,862in the same period last year.

By value of investments, Pulau Pinang (RM9.2 billion), Kedah (RM7.7 billion), Selangor (RM6.0 billion), Johor (RM4.0 billion) and Perak (RM1.7 billion) accounted for 86.4% of the total approved investments in the manufacturing sector.

Primary Sector

The primary sector contributed RM3.9 billion or 4.2% to the total approved projects in the first half of 2019. The mining subsector continued to lead with approved investments of RM3.6 billion, followed by plantation and commodities with RM257.3 million and agriculture with RM48.6 million. These investments are expected to create 443 job opportunities.

The agriculture sector illustrated a modest growth of 25.6% to RM48.6 million during 1H2019 from RM38.7 million during 1H2018 driven by approved investments in crops-related agriculture project.

Conclusion

“Malaysia is striving to keep the nation’s deficit, inflation and unemployment low while putting in place policies that are pro-business. The Government is investing in human capital, technology and infrastructure and focusing on sharpening the countries competitive edge. Coupled with strategic promotions to welcome quality investments that will contribute to enhancing the country’s technological capabilities, develop the local supply chain and increase the country’s export revenue, Malaysia’s 1H2019 investment performance is the testament of the Government’s commitment to remain pro-business with prudent and pragmatic policies to ensure a conducive environment for businesses to thrive,” said YB Datuk Darell Leiking.

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ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

Malaysia Continues to Attract Business Interest

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KUALA LUMPUR, 16 March 2021 – A Memorandum of Understanding (MOU) was inked between the Malaysian Investment Development Authority (MIDA) and UMW Corporation Sdn. Bhd., a wholly-owned subsidiary of the UMW Group, to further drive high-value quality investments into the country.

The two parties will capitalise on each other’s capabilities and strengths to explore potential key areas of collaboration to attract investments that would create value to the nation’s economy. These include mobility, aerospace, machinery and equipment, manufacturing and engineering, talent training, research and development as well as industrial land development. The MOU will be a stepping stone to accelerate innovative and high-value industry stakeholders, including the UMW Group, to seize opportunities arising from the technology revolution in the new norm.

The MOU was signed by Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA and Dato’ Ahmad Fuaad Kenali, President and Group CEO of UMW Holdings Berhad, at MIDA Headquarters today.

Dato’ Azman reiterated, “As a vibrant industrialising and services-oriented nation, Malaysia has geared into the next level of development as our economy becomes more diversified to cater to new growth areas. Malaysia’s investment landscape will likely remain challenging in the backdrop of the pandemic, and this timely collaboration with UMW will facilitate our nation’s industrial ecosystem with the much needed infrastructure and new technologies. MIDA trusts that through UMW’s vast industry expertise and network, our local players and technology providers could benefit in the global supply chain network.”

“This partnership will also boost the Government’s on-going efforts to position Malaysia as the pre-eminent preferred investment destination in the region. Support for businesses includes the competitive tax incentives to spur investment activity under the National Economic Recovery Plan (PENJANA) stimulus package; dedicated Project Acceleration and Coordination Unit (PACU) unit to facilitate towards successful implementation of approved projects; as well as the timely One Stop Centre (OSC) initiative to enable business travellers to travel to and continue their work in Malaysia during this pandemic,” added Dato’ Azman.

Dato’ Ahmad Fuaad Kenali expressed, “The UMW Group is embarking on a transformation journey to strengthen our businesses through innovation and technology as key enablers to meet the challenges of the evolving business environment. We are constantly exploring and evaluating relevant opportunities to expand and grow our businesses to meet the anticipated future demand. The collaboration with MIDA will allow both parties to leverage on each other’s strengths to provide capacity building opportunities to attract high-quality investments into Malaysia.”

He further added that a strong collaboration between government agencies and private sectors is paramount in positioning Malaysia as an attractive investment destinatio

In 2020, Malaysia recorded RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors. These investments are expected to create 114,673 new jobs once implemented. MIDA has also identified high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sectors, as negotiations are on-going with companies from various sectors such as automotive, chemical, and advanced electronics to make Malaysia their high-value manufacturing, services and global supply chain hub.

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About MIDA

About UMW

The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in three core business segments – Automotive, Equipment and Manufacturing & Engineering. The Group operates in 8 countries and has over 6,700 employees.

Moving forward, UMW strives to play a leading role in shaping the future of its industries. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of all its stakeholders.

For media enquiries, please contact:

Manjit Kaur Balkar Singh (Ms)
Phone : +603 2267 3509
Email : [email protected]

S Vikneshwaran (Mr)
Phone : +6019 850 5799
Email : [email protected]

MIDA and UMW Enter Into Strategic Partnership to Support Quality Investments in Malaysia

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The Malaysian Investment Development Authority (MIDA) through its dedicated unit, the Domestic Investment Coordination Platform (DICP), in facilitating local SMEs to develop further, has enabled a Malaysian financial technology (Fintech) start-up, Neurogine Sdn. Bhd. to seal an acquisition deal with Hadigy Limited, an investment holding company based in the UK.

The signing of the Shareholders’ Agreement would allow Hadigy Limited to acquire a 30 per cent stake or 1.929 million ordinary shares of Neurogine Sdn. Bhd., a Malaysian home-grown fintech start-up specialising in digitalisation of mobile banking, mobile payment and digital asset solutions.

The signing ceremony between Mr. Owen Chen Chee Onn, Chief Executive Officer (CEO) of Neurogine Sdn. Bhd. and Mr. Hari Iyer, Executive Director of Hadigy Limited was held virtually between Kuala Lumpur and London, witnessed by the CEO of MIDA, Dato’ Azman Mahmud at MIDA HQ.

“Among the major challenges for SMEs and start-ups to scale up include limited access to funding. MIDA has taken a proactive approach through DICP in supporting local companies, SMEs and start-ups in addressing the funding gap. The presence of foreign funders such as Hadigy Limited in this space would certainly help in accelerating the adoption of technology and stimulate the growth of fintech services in Malaysia,” said Dato’ Azman Mahmud.

Dato’ Azman Mahmud shared that in the wake of COVID-19 pandemic, the local technology segments of e-commerce, fintech and medical technology would be able to entice foreign equity or venture capital investments. These sectors, which provide remote solutions by minimising and eliminating physical contacts, have emerged stronger, driven by the renewed demands from industry users in observing the SOPs of COVID-19 as recommended by the World Health Organisation (WHO).

MIDA reckons fintech is poised as a growth driver in Malaysia in 2021 and beyond; and the country is ready to take advantage of fintech innovation. The strong support and initiatives by the Government for digital economy, supported by the growing middle class with 90.1 per cent of households having access to the Internet and 98.2 per cent access to mobile phones* are indications of the flourishing digital economy.
(*Source: DSOM report on ICT use and access by individuals and households-2019)

In line with the national investment aspiration to increase economic complexity and build Malaysian conglomerates, the Government, through MIDA and its DICP unit is committed in connecting Malaysian start-ups with international venture capital firms. The unit will further facilitate a sustainable growth path and a vibrant ecosystem for high-profile start-ups to thrive and flourish.

Media contact:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | Tel.: +603 2267 3509

MIDA Bridges Malaysian Fintech Start-up and UK Investment Firm

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“Welcoming Investors, Keeping You Safe”

Kuala Lumpur, 3 March 2021 – The Malaysian government is very ‘pro-business’ and welcomes the entry of business travellers to carry out business operations amid the pandemic. In this regard, Malaysia’s Safe Travel portal which contains information and advisory services to facilitate business travellers’ entry into Malaysia is fully operational effective 3 March 2021. Both Short and Long Term Business Travellers may apply for entry permission through the dedicated portal at URL: https://safetravel.mida.gov.my. Short Term Business Travellers are required to submit the online application 14 days in advance of planned travel.

The portal is a critical component of the One Stop Centre (OSC) initiative that has been set up by the Malaysian Government effective 2 October 2020 to ease the movement of Business Travellers by expediting their entry to do business in Malaysia. The Centre assumes a vital role in ensuring that Malaysia remains steady on economic recovery and growth; while balancing public health and livelihoods, and strengthen Malaysia’s position as a competitive and preferred investment destination in Asia.

The One Stop Centre is represented by the Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), Ministry of Health (MOH) and Immigration Department of Malaysia (IMI) to ensure the legitimacy and health status of business travellers before they enter into Malaysia. This initiative is also a joint collaboration between MIDA, Ministry of Foreign Affairs (Wisma Putra), Malaysia Airports Holdings Berhad (MAHB), Malaysia Airlines Berhad (MAB) and Talent Corporation Malaysia Berhad (TalentCorp).

Short Term Business Travellers

Short Term Business Travellers are business travellers who are not holding any passes, and intend to stay in the country for 14 days or less. They may be considered for exemption from mandatory quarantine subject to the approval of the OSC Committee and adherence to strict Standard Operating Procedures. Short Term Business Travellers are categorised as follows:

Potential investors seeking to do business in Malaysia
Existing investors, namely business owners, board members, executives and associates of companies in Malaysia (without Employment Pass)
Business customers for product qualification and validation before commercial production

Technical experts for ad-hoc emergency cases to serve single or multiple customers across Malaysia

Business Travellers from the above four (4) categories may also apply for Social Visit Pass under Long Term Business Travellers, should they plan to stay for more than 14 days in the country.

Long Term Business Travellers

Long Term Business Travellers are business travellers who hold valid passes and intend to stay in the country for more than 14 days. They will be subject to mandatory quarantine as per the Ministry of Health’s (MOH) guideline, Malaysia. The Long Term Business Travellers are categorised as follows:

New/Existing expatriates stranded abroad, namely active holders of Employment Pass (EP) and Resident Pass-Talent (RP-T).
New/Existing foreign technical experts stranded abroad with Professional Visit Pass (PVP) to serve multiple customers across Malaysia.
Frequent foreign business travellers (Exit & Return), including Regional Establishments (RE), Regional Operations (RO) and Principal Hubs (PH) representatives.
Permanent Resident (PR) Pass Holders.
Malaysia My 2nd Home (MM2H) Social Visit Pass Holders.
Frequent Malaysian business travellers (Exit & Return).
Social Visit Pass Holders.

Business Travellers must obtain relevant visas (if applicable) from the respective Malaysian Embassy or High Commission/ Consulate General Offices abroad before their departure to Malaysia.

For more information, please contact the OSC Secretariat at [email protected].

*****

About MIDA

Media Contact:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Malaysia’s Safe Travel Portal For Business Travellers Goes Live

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Kuala Lumpur, 2 March 2021 — YAB Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia, received a courtesy call from Nine Dragons Paper (Holdings) Limited led by its Chairlady, Madam Cheung Yan, at his office in Putrajaya today. The meeting was also attended by YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI); YBhg. Dato’ Azman Mahmud, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) and Mr. Zhang Cheng Fei, Deputy CEO of Nine Dragons Paper.

In welcoming the Group’s latest overseas venture into Malaysia, YAB Tan Sri Muhyiddin acknowledged that, “As of December 2020, a total of 572 manufacturing projects with China interest with investments of RM78.61 billion have been approved by MIDA. Nine Dragons Paper (Holdings) Limited and its subsidiaries are among the major paper and paperboard producers in Asia, engaging in the manufacturing of containerboard products, including linerboard, high performance corrugating medium, coated duplex board and carton box.”

“The Company is listed on the Hong Kong Stock Exchange’s main board and currently ranked first in the China Fortune 500 list under the sector of paper, printing and packaging companies. The Group owns facilities in China, Vietnam and the United States with an annual production capacity of more than 18.4 million tonnes and valued at more than 60 billion Renminbi (RMB). The Group also boasts of a total workforce of approximately 19,000 people. We are confident that Nine Dragons Paper being a China Fortune 500 company will be an endorsement for Malaysia as a preferred investment destination.” added YAB Prime Minister.

The Group’s investments in Malaysia consists of two (2) manufacturing facilities, namely ND Paper (Malaysia) Sdn. Bhd. in Bentong, Pahang involving the acquisition of an existing pulp and paper mill with total investment value of RM1.2 billion; and ND Paper Malaysia (Selangor) Sdn. Bhd. in Banting, Selangor with investment value of RM4.2 billion that will focus on test liner, kraft liner, corrugated medium paper, paper and pulp. These projects will create a total of 2,180 job opportunities of which, nearly 90 per cent will be Malaysians. The project in Banting, Selangor is expected to be in operation by 2022.

Both factories will be fully automated and equipped with Industry 4.0 technology such as system integration, Internet of Things (IoT), big data analytic and cloud computing from Europe and China.

Chairlady Cheung Yan remarked, “The investment environment in Malaysia is attractive. The country’s strategic location and infrastructure; established local supply chains that are well-integrated into the global value chain as well as the strength of its skilled talentpool offer an undeniable competitive advantage to our business. Moreover, Malaysia’s business-friendly policies such as its latest initiative of the One Stop Centre (OSC) for Business Travellers managed by MIDA to ease travel for businesses further strengthened our confidence in investing here. I am very grateful to make this investment decision based on these fundamentals. We believe governments and enterprises need to mutually support and collaborate with each other. We are ready to be part of Malaysia’s diverse industry.”

YAB PM reiterated that the Malaysian Government’s policy is always pro-business and very supportive and ready to offer attractive incentives to investors. To ensure Malaysia remains steady on the path of economic recovery and growth, the Government, through MIDA set up the OSC effective 2 October 2020. This initiative eases the movement of Short Term and Long Term Business Travellers by expediting their entry to do business in Malaysia through a dedicated committee represented by Ministry of International Trade and Industry (MITI), MIDA, Ministry of Health (MOH) and Immigration Department of Malaysia (IMI). This committee meets daily to ensure the legitimacy and health status of business travellers before they enter into Malaysia. Decisions are made within three working days for each applicant upon receiving complete information.

*****

About MIDA

About Nine Dragons Paper

Founded in 1995, Nine Dragons Paper has now become one of the leading paper manufacturing groups in the world after more than 20 years’ efforts in business development and efficient management, as well as continuous support from all of its business associates. The Group primarily produce linerboard, high performance corrugating medium and coated duplex board. It also produces printing and writing paper, specialty paper, pulp, high performance corrugated cardboard and high performance carton boxes. Nine Dragons Paper (Holdings) Limited was listed on the Main Board of the Hong Kong Stock Exchange in 2006.

Media Contacts:

MIDA
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Nine Dragons Paper
Isabel Kow (Ms)
Email: [email protected] | DL: +6012 313 0590

Malaysia Welcomes the Largest Paperboard Producer in Asia – Nine Dragons Paper to Invest RM5.4 Billion in Malaysia

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Manufacturing Sector Takes the Lead with an Increase of 10.3 per cent in Approved Investments

Kuala Lumpur, 2 March 2021 – The global economic environment in 2020 was very challenging, as a result of the COVID-19 pandemic, which had its contagion effects on major economies throughout the world. Despite the challenges, the Ministry of International Trade and Industry (MITI) through the Malaysian Investment Development Authority (MIDA) is committed to ensuring that Malaysia continues to be positioned as an investor-friendly location for long term growth of both foreign and domestic businesses.

“Malaysia recorded a total of RM164 billion in approved investments through 4,599 projects in the manufacturing, services and primary sectors in 2020. These investments are expected to create 114,673 new jobs in various sectors of the economy once implemented,” announced YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of MITI.

In contrast, a total of 5,287 projects with investments of RM211.4 billion were approved in 2019. This decline was weighed by the services and primary sectors which were directly impacted by declines in global demands due to the pandemic and the Movement Control Order (MCO) implementation.

In 2020, domestic direct investments (DDI) accounted for the bulk of the total approved investments with a contribution of 60.9 per cent (RM99.8 billion), while foreign direct investments (FDI) made up the remaining RM64.2 billion (39.1%).

The manufacturing sector led the way for total investments approved in 2020, recording RM91.3 billion, followed by the services sector RM66.7 billion and the primary sector with RM6.0 billion.

The People’s Republic of China (RM18.1 billion), Singapore (RM10.0 billion) and the Netherlands (RM7.0 billion) were the top three (3) FDI sources from overall economic sectors in Malaysia, accounting for more than half (54.8%) of the total approved FDI for the year. Selangor (RM38.7 billion) recorded the highest investments approved last year, followed by Sabah (RM21.0 billion), Sarawak (RM19.6 billion), Wilayah Persekutuan Kuala Lumpur (RM17.1 billion) and Pulau Pinang (RM16.0 billion). These five states alone contributed more than 60 per cent of the total approved investments for 2020.

Manufacturing Takes the Lead

The manufacturing sector has the most significant multiplier effect on the nation’s activities and growth; it will continue to be the mainstay of the economy. This includes forward and backward linkages, the development of cluster industries, the transfer of new technologies, and skills development, to name a few.

Malaysia’s manufacturing sector recorded approved investments of RM91.3 billion for 2020, an increase of 10.3 per cent from 2019. The number of manufacturing projects approved also increased by 6.2 per cent from 988 projects in 2019 to 1,049 projects in 2020.

When implemented, these approved manufacturing projects will create new jobs for more than 80,000 people. Of these, 35.8 per cent are in the managerial, technical and supervisory (MTS) positions, including engineers, plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

FDI accounted for 62 per cent (RM56.6 billion) of total approved investments in the manufacturing sector, while domestic investments constituted the remaining 38 per cent (RM34.7 billion). It is important to note that despite the challenging times, DDI surged by 22.6 per cent while FDI increased by 3.9 per cent compared to 2019.

The People’s Republic of China was the top investor in the manufacturing sector in Malaysia, contributing RM17.8 billion of the total foreign investments approved in the sector. The People’s Republic of China was also the largest source of foreign investments in the manufacturing sector for five consecutive years. Other major sources of FDI include Singapore (RM8.8 billion), the Netherlands (RM6.5 billion), USA (RM3.7 billion), Hong Kong SAR (RM2.9 billion), Switzerland (RM2.8 billion), Thailand (RM1.9 billion), Japan (RM1.7 billion) and Republic of Korea (RM1.4 billion).

Selangor (RM18.4 billion) was the largest recipient of investments in the manufacturing sector for 2020, followed by Sarawak (RM15.7 billion), Pulau Pinang (RM14.1 billion), Sabah (RM12.0 billion) and Johor (RM6.8 billion). These five states constituted 73.4 per cent of total approved investments in the sector last year.

“Against the backdrop of the challenges due to the pandemic, new project investments, accounting for 66.9 per cent of the total manufacturing projects approved, were successfully secured in 2020. This is a testament to MITI and MIDA’s efforts to ensure business continuity and investors’ friendly policies are in place to enable investors to have the confidence to establish new operations in the country,” said YB Dato’ Seri Azmin.

“Our team has also tenaciously worked to ensure projects approved are implemented smoothly. This can be seen through the commendable rate of implementation in approved projects. For the period 2016-2020, a total of 4,178 projects were approved, of which 70.0 per cent with investments worth RM197.2 billion have been implemented in the country,” he added.

Moreover, in line with Malaysia’s move towards sophisticated technology industries, capital intensive projects which involve advanced technology and skilled workforce dominated the manufacturing landscape. This is reflected in the increase of capital investment per employee (CIPE) ratio to RM1,138,055 in 2020 from RM1,052,497 in 2019. Furthermore, a total of 101 projects were approved with investments of RM100 million and above.

In terms of top-performing industries in 2020, the electrical and electronics (RM15.6 billion), petroleum products including petrochemicals (RM15.5 billion), basic metal products (RM14.4 billion), paper, printing and publishing (RM7.8 billion), machinery and equipment (RM7.1 billion), chemicals and chemical products (RM6.3 billion), rubber products (RM4.3 billion) as well as transport technology (RM3.9 billion) contributed nearly 90 per cent of the total approved investments in the manufacturing sector last year.

“It is noteworthy that investments in the three catalytic sub-sectors namely, electrical and electronics, machinery and equipment and chemical, and two high growth areas – aerospace and medical devices outlined within the Eleventh Malaysia Plan (RMK-11) constituted more than one third (38.6%) of the total approved investments on the manufacturing sector with investments valued at RM35.2 billion in 2020. As the year 2020 marked the end of the Eleventh Malaysia Plan, the Government is currently finalising the Twelfth Malaysian Plan. This post-2020 blueprint will set the way forward for Malaysia’s development agenda over the next decade. We are optimistic that it will chart the way to further enhance Malaysia’s industrial competitiveness strategies in essential and key industries for sustainable economic transformation to elevate our manufacturing and the services sectors to the next level of sophistication and complexity in the new normal post COVID-19 and beyond,” remarked YB Dato’ Seri Azmin.

Notable projects that were approved last year consist of multinational corporations in the high-end and high-technology industries that are newly establishing their operations in Malaysia. This includes Dexcom, a US company and leader in continuous glucose monitoring system will be producing their niche offerings in Pulau Pinang; where else Switzerland-based electrical measurement company, LEM will set up its new production plant in Malaysia to meet the growing demand of its customers in the industrial and automotive sectors. Chinese-owned LSChem Industry will produce a variety of speciality oleochemicals in Tanjung Langsat Industrial Park, Johor Bahru. LSChem Industry’s project is expected to be catalytic to roll out the biodiesel initiatives in Malaysia, which is in line with the Government’s goal to increase the usage of biodiesel. Singapore-owned CytoMed Therapeutics (Malaysia) will also invest in the country to undertake stem cell research and therapy.

Existing MNCs also continue to undertake major reinvestments into high-end products and activities in Malaysia, illustrating Malaysia’s on-going value proposition to investors. Nippon Electric Glass (NEG), a leading Japanese manufacturer of speciality glass that had established their Malaysian operations since 1992 looks to expand their production capacity of glass tubing for pharmaceutical use in the country given the demand for its products following the COVID-19 vaccine roll-out. Additionally, US-based Bruker will be expanding its investments in Pulau Pinang to manufacture high-tech analytical scientific instruments such as optical and stylus profilometers, tribometers, X-ray diffraction tools, X-ray fluorescence instrumentation, optical emissions spectrometers and combustion gas analysers. Local players such as Amerix Metal Machining Technology have also seized the opportunity to expand and diversify their operation last year, further enhancing Malaysia’s supporting industry network capabilities. The Company’s expansion project looks to adopt a sophisticated high precision manufacturing concept in Computer Integrated Manufacturing (CIM) and process tracking model in customised Enhanced Resource Planning (ERP) system to produce automation electro-mechanical servo reel to reel moulding systems for the back-end semiconductor industry.

Continuous Investments for Services

“In 2020, Malaysia’s proposition as a hub for business and investment for the services sector attracted a total of RM66.7 billion in approved investments through 3,527 approved projects, accounting for the 40.7 per cent of the total approved investments in the economy. These approved services projects are expected to create 33,652 jobs to the economy,” said YB Senior Minister and Minister of MITI.

DDI dominated the total approved investments in the services sector, contributing RM60.2 billion (90.3%), where else FDI represented the remaining RM6.5 billion.

The majority of the main services sub-sectors showed a significant decline in approved investments except for MSC status projects and other services such as BioNexus status and software developments. The top five (5) contributors of approved investments in the services sector were real estate (RM31.2 billion), utilities (RM10.8 billion), support services (RM5.2 billion), telecommunications (RM5.2 billion) and MSC status projects (RM3.9 billion).

Under the purview of MIDA, the support services industry covered sub-sectors such as integrated logistics, research and development, green technology, integrated circuit design, oil and gas services and licensed warehouse.

“Last year, notable services projects approved include Redsol, a new joint venture large scale solar project between Malaysia and Netherlands in Perak; as well as the expansion of the Japanese firm, Fumakilla Malaysia’s R&D undertaking in developing insecticide products and other household products in the country as part as its efforts to centralise its R&D Centre to support its manufacturing activities carried out in Malaysia and Asia,” added YB Dato’ Seri Azmin.

Mining Takes the Lead in the Primary Sector

The primary sector registered approved investments of RM6.0 billion in 2020, compared to RM7.0 billion in 2019. The mining sub-sector led the bulk of investments in the primary sector, contributing 99.5 per cent of total investments approved in the sector. The rest of the primary sector investments comprise the plantation and commodities subsector and the agriculture subsector, which registered investments of RM27 million and RM2.4 million, respectively.

Bracing for a Better Tomorrow

Malaysia continues to be a competitive investment destination despite the current uncertainties, proven by its rankings in the global economic scene. The DHL Global Connectedness Index (GCI) 2020 positioned Malaysia second (2^nd) among Asia Pacific countries and sixteenth (16th) out of 169 countries for trade connectivity. A joint study by KPMG and The Manufacturing Institute in the US entitled ‘Cost of Manufacturing Operations around the Globe’ also ranked Malaysia fourth (4^th) among 17 economies in an assessment comparing the economy’s competitiveness as a manufacturing hub; positioning us ahead of countries in Asia such as China, Japan, Vietnam and India. Furthermore, Malaysia is ranked 12th in the World Bank’s Doing Business 2020 and 27th in the IMD World Competitiveness 2020.

“These rankings by reputable international agencies attests that on-going reform initiatives are on the right track to further enhance Malaysia’s competitiveness, productivity and governance which will help promote investments and accelerate national economic development,” said YB Dato’ Seri Azmin.

However, at the end of the third quarter 2020, the country saw a third wave of COVID-19 infections. This led the Government to implement the conditional movement control order (CMCO), to strike a balance between preserving lives and livelihoods; curbing the spread of the virus while allowing economic activities to open. The Government was forced to impose further restrictions via the introduction of MCO 2.0 due to the unabated virus surge. The implementation of MCO 2.0 has understandably raised the question of whether Malaysia would still be able to maintain the speed of economic recovery.

“The Government, through MIDA, continued to be at the forefront to entice more high-value investments in the areas of technology and innovation to position Malaysia as an alternative supply chain hub in Asia. Investors will undeniably derive value by taping on Malaysia’s well-established local supporting industry network and talented workforce to undertake high-tech products manufacturing and high value-added services to serve their clients in the region, in the present and the future,” added YB Dato’ Seri Mohamed Azmin Ali.

In efforts to increase the ease of doing business for investors in Malaysia, MIDA’s efforts has been intensified to re-engineer its business processes to raise the efficiency of the organisation’s various functions. Among the initiatives that have been implemented include the PACU@MIDA or the Project Acceleration and Coordination Unit to provide end-to-end facilitation for all projects approved to enable the timely implementation of investments in the country; as well as online modules, namely e-Manufacturing Licence (e-ML), e-Incentive and JPC Online Application to accelerate the necessary approvals for manufacturing licences, incentives and exemption of customs duties to expedite the execution of projects.

Additionally, despite the on-going international border closures and strict governmental standard operating procedures (SOPs) in place worldwide to contain the spread of COVID-19, MIDA continues to be responsive in providing advice and support to existing and potential investors through its established footprint of 20 overseas and 12 regional offices. It has been at the forefront to entice investments through innovative and aggressive investment promotion activities. A One-Stop-Centre (OSC) has also been established at MIDA to evaluate eligible business travellers’ applications to enter Malaysia for trade and investment purposes.

As at December 2020, MIDA has RM65.9 billion worth of potential investments being actively evaluated. These projects, once approved, are expected to be implemented within the year 2021 to 2022. MIDA has also identified 240 high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion. These include on-going negotiations with companies from various sectors such as automotive, chemical, and advanced electronics to make Malaysia their high-value manufacturing, services and global supply chain hub.

“The Government’s newly unveiling of Malaysia Digital Economy Blueprint (MyDigital) will also further accelerate Malaysia’s progress to becoming a technologically-advanced economy. The 10-year roadmap will lay the foundations for the country’s transformation towards an advanced digital economy and guide MITI and MIDA in our efforts to continue attracting high-value investments of the future,” said YB Dato’ Seri Mohamed Azmin Ali. While the year 2020 was a challenging year in many sense of the word, Malaysia is steadfast in its fundamentals as the pre-eminent preferred investment destination in the region. As we forge ahead in the new year on the path of economic revitalisation coupled with the rollout of the national vaccination programme, the Government remains committed to prioritising the needs of our people and businesses.

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About MIDA

MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, Linkedin and Youtube channel.

Media Contact:

Manjit Kaur Balkar Singh (Ms)

DL: +603-2267 3509 | Email: [email protected]

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Malaysia Records RM164 Billion of Total Approved Investments In 2020 Amid Global Pandemic

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Kuala Lumpur, 26 February 2021 – Cabot Corporation will continue its strategic investments to expand its manufacturing as well as research and development (R&D) capabilities at its plant in Port Dickson, Negeri Sembilan, Malaysia.

The global speciality chemicals and performance materials company announced the launch of its Engineered Elastomer Composites (E2C™) solutions in 2020 as part of its efforts in raising the bar within the tire and industrial rubber industry. To further expand manufacturing of its E2C solutions, Cabot is increasing its staff strength by more than 30 per cent as well as installing enhanced digital controls and automation systems. The Company is also signing a long-term extension and expansion of its land lease in Port Dickson.

Cabot’s Port Dickson site has led the industry by developing the first industrial scale, continuous liquid mixing process for natural rubber latex. With Cabot’s expanded R&D capabilities, it will continue to lead and advance rubber technology through specific innovations such as new tools for modeling and optimisation of liquid mixing, novel methods for characterising elastomer composites as well as automation of continuous rubber processing.

Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), welcomed the Company’s commitment and confidence in Malaysia, “This investment by Cabot, a global leader in the development and commercialisation of innovative elastomer composites, is even more recompensing in the backdrop of the current challenges surrounding the pandemic. It is a testament to Malaysia’s resilient business environment and promising returns to investors. MIDA is confident that Cabot will benefit from Malaysia’s solid chemical industry ecosystem, backed by investor-friendly business environment and policies as well as the availability of talented and skilled workers in the country.”

“Cabot has joined other industry players to choose Malaysia as their investment destination, particularly within the speciality chemicals sphere. As partners to investors, MIDA remains committed to drive high quality and knowledge-driven projects into Malaysia, in line with our national investment agenda for long term sustainable growth of the economy,” added Dato’ Azman.

David Reynolds, Vice President and General Manager at Cabot Engineered Elastomer Composites added, “Our plant in Malaysia has been a key asset for us as we have continued to develop and expand our portfolio of elastomer composites solutions. We are excited about the launch of our new E2C line of products and the sustainability benefits that they provide in a variety of customer applications. As such, we are committed to continuing to partner with MIDA to strengthen our investments in Port Dickson and support the growth of this high-performance product line.”

Cabot’s E2C solutions are a new category of performance rubber composites based on a proprietary liquid mixing process for natural rubber latex, including three commercially viable products for off-the road mining tire applications. Tires made with E2C solutions last longer and are more energy efficient, resulting in reduced raw material consumption, fewer end-of-life tires and lower carbon dioxide emissions.

Furthermore, during the rubber compounding process, E2C solutions require fewer mixing stages, shorter cycles and lower temperatures, translating into additional sustainability and economic benefits. As a result, E2C solutions support more sustainable mobility, a key element of Malaysia’s National Automotive Policy, designed to enhance the country’s economic competitiveness while reducing the negative impact on the environment.

Cabot’s E2CTM solution was also named in the European Rubber Journal’s inaugural Top 10 Elastomers for Sustainability List in July 2020. Learn more about the E2CTM solution at cabotcorp.com/e2c.

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About MIDA

About Cabot Corporation

Cabot Corporation (NYSE: CBT) is a global speciality chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of rubber and speciality carbons, activated carbon, inkjet colorants, master batches and conductive compounds, fumed silica, and aerogel. For more information on Cabot, please visit the company’s website at: http://www.cabotcorp.com.

Media Contacts:

MIDA
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | DL: +603-2267 3509

Cabot Corporation
Thirunavuc Karasu (Mr)
Email: [email protected]

Cabot Corporation, Producer of Engineered Elastomer Composites, Expands Investments in Malaysia for New Sustainable Rubber Technology

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Kuala Lumpur, 25 February 2021 – The Malaysian Investment Development Authority (MIDA) organised a virtual Domestic Investment Webinar to urge domestic stakeholders to implement digitalisation values and adopt innovation in their business to remain resilient. The session themed “Innovation and Transition to New Business Models” was supported by the Department of Polytechnic and Community College Education (DPCCE) of the Ministry of Higher Education (MOHE), Malaysia Productivity Cooperation (MPC), SIRIM Berhad and AmBank.

Mr. Ahmad Khairuddin bin Abdul Rahim, Deputy Chief Executive Officer II, MIDA, in his opening address, highlighted that “In order to drive business growth and staying relevant in current norms, business leaders, especially the small and medium-sized enterprises/businesses (SMEs) must be able to think creatively and embrace innovation into their business models. A willingness to innovate should also go along with a solid understanding on how to cultivate the innovation into life. The focus will be on assisting Malaysian businesses to shift from old conventional growth models to build new growth through adoption of the digital system.”

He added, “Malaysia’s Industry4WRD policy is an excellent guide. The incentives of Industry4WRD Readiness Assessment and its subsequent Intervention Fund offered by the Government enable domestic companies to assess their capabilities and readiness to adopt Industry4.0 processes, understand their present capabilities and gaps, as well as prepare feasible plans to move towards effective adoption of Industry 4.0. This represents the first step for companies in Malaysia to align with the rapidly changing technological landscape while developing new growth areas by prioritising operational efficiency and resilience through digital and automation technologies.”

“The Automation Capital Allowance (Automation CA), introduced in the 2015 Budget is also a major initiative to motivate domestic companies to undertake automation and machine upgrading. Another critical enablers are the skilled talent and up skilling programmes to drive and sustain Malaysia’s economic growth. The availability of a skilled workforce will support the transition of all economic sectors towards knowledge-intensive activities. The Smart Automation Grant (SAG) under the RM100 million allocation approved within the National Economic Recovery Plan or PENJANA , is another initiative awarded to eligible Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) on a matching basis or 50 per cent of total eligible expenditures, up to a maximum grant cap of RM1 million per company. SAG will not only improve Malaysia’s industrial competitiveness and capabilities but also reduce our reliance on low-skilled foreign workers while creating new job opportunities in high value-added sectors.” added Mr. Ahmad Khairuddin.

In his remarks, Mr. Ahmad Khairuddin also highlighted on the ‘Lighthouse Project’ an initiative undertaken by MIDA to enable MNCs and local corporations that have successfully gained from Industry 4.0 transformation to guide and support Malaysia’s local manufacturing industries to also implement the Fourth Industrial Revolution processes in gaining business traction. “As Malaysia aims to reposition among the top Global Manufacturing Nations, MIDA continues to identify and attract foreign and local companies that have successfully adopted the Industry 4.0 key pillars to invest here” he stressed.

The webinar has successfully attracted more than 300 participants, including manufacturers, service providers and other potential investors. The session featured presentations by experts from MIDA, Ambank, DPCCE and SIRIM.

Companies interested in seizing to leverage on the various initiatives offered by MIDA, including Automation Capital Allowance (ACA), Industry4WRD Intervention Fund and Smart Automation Grant (SAG), may refer to the official website, www.mida.gov.my.

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About MIDA

MIDA is the Government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become an active and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

Media contacts:

MIDA

Manjit Kaur Balkar Singh (Ms)

Email: [email protected] | Tel.: +603 2267 3509

MIDA Urges Domestic Companies to Adopt Digitalisation and Innovation in Their Business Models to Stay Competitive

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BANGI, Malaysia (Feb. 24, 2021) – DENSO MALAYSIA A Sdn. Bhd. a subsidiary of DENSO Corporation, Japan, a leading global mobility systems and components supplier will be expanding its production capacity in Selangor, Malaysia . The RM160 million investment project has been approved by the Malaysian Investment Development Authority (MIDA) and is scheduled to commence in April 2021 DENSO MALAYSIA products range from air conditioning systems, radiators, engine control units, airbag electronic control units, electric power steering and other products.

In recent years, electronic controls have been increasingly adopted in various vehicle systems . T he semiconductors ’ performance evolves continuously to enhance the safety standards of growing demand s for semi conductors to full autonomous electric vehicles.

Dato’ Azman Mahmud, Chief Executive Officer of MIDA, expressed “We are honoured ” to be selected as the country outside Japan to produce the advanced product s as a result of continuous research and development (R&D). Moreover, we acknowledge the operational expenditure of over RM20 million in the next five years would benefit the local business ecosystem, from insurance, legal, banking, information and communication technologies (ICT) as well as transportation industries”.

DENSO ’s decision to further expand their presence in Malaysia has proven that the country continues to be a competitive investment location for high value operations amidst global headwinds . This is a nother testament to MIDA’s efforts in attracting quality investment into Malaysia Dato’ Azman stressed.

DENSO has more than 40 years of experience in manufacturing in vehicle semiconductors. Established in 19 80 DENSO MALAYSIA A possesses extensive experience, skill s and knowledge in the production of electronic parts. It was selected to be the only production centre of semiconductors in ASEAN outside of Japan backed by Malaysia’s strong suppliers’ network, well developed infrastructure and a business friendly environment said Tomoya Nakamura, Managing Director of DENSO MALAYSIA.

DENSO MALAYSIA A will be venturing into the production of automotive semiconductors, ASIC named “Exposed Package (Ex PKG ))”, which is superior and competitive in term s of high functionality, efficient high heat dissipation, miniaturisation and cost reduction. This project is also in line with the Government’s National Automotive Policy ( 2020 to develop critical components within Next Generation Vehicles, mobility technology and autonomous driving.

The investment will establish fully automated machine production lines with DENSO designed manufacturing equipment and unique processing techniques that emphasize on high efficiency and high quality. The transfer of the product knowledge will also develop the local engineering skills among its workforce, through the dedicated DENSO ’s Hitozukuri (human resource development )” concept. In addition, the introduction of fully automated production lines will accelerate the moving toward Industry 4.0 technologies, such as IoT deployment, big data management and factory
automation in Malaysia.

DENSO MALAYSIA continues serving as the manufacturing and distribution hub that supplies to DENSO in Japan and other DENSO group companies a cross North America, China, Europe, and other regions. DENSO will help promote the exporting of automotive parts out of Malaysia and contribute to the growth of t he automotive industry in the country.

About DENSO

DENSO is a US $47.6 billion global mobility supplier that develops advance technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO ’s 200 global facilities produce thermal, powertrain, mobility, electrification, and electronic systems and create jobs that impact change s in world mobility . The company’s 170,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.9 percent of its global consolidated sales on research and development (R& in the fiscal year ending March 31, 2020. For more information about global DENSO, visit https://www.DENSO.com/global

About MIDA

Media contacts:
MIDA:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected] | Tel.: 603 2267 3509

DENSO
DENSO CORPORATION
Email: [email protected] | Tel.: 81 566 55 9752

DENSO Embarks on RM160 Million Advanced Semiconductor Production in Malaysia

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Kuala Lumpur, 22 February 2021 – The Malaysian Investment Development Authority (MIDA) is partnering with CETIM (the French leading Technical Centre for Mechanical Industry), through a Memorandum of Understanding (MOU) to encourage, promote and facilitate cooperation in the niche engineering and manufacturing technology including in emerging fields such as Smart Manufacturing, Industry 4.0 and Circular Economy.

The MOU highlights the collaboration between MIDA and CETIM to further strengthen Malaysia’s technological ecosystem by attracting quality investments. Both parties will undertake joint initiatives such as applied research activities, training and attachment programmes; exchange technical information and expertise in the research and development of industrial technology; as well as facilitate collaboration with local higher learning institutes and research organisations in the field of industrial development.

In welcoming CETIM to consider setting up its Asia Pacific office here in Malaysia as their Regional Centre, Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA, iterated that this MOU is a direct reflection of the MIDA’s on-going initiative to enhance Malaysia’s technological landscape in line with the national Industry 4.0 agenda.
“MIDA has always been a conduit between entities such as CETIM, industry players and academia to create effective new collaborations in line with Malaysia’s investment aspiration agenda to develop high value-added, capital- and knowledge-intensive industries. Especially now, given how the pandemic has changed the way we live and do business, there are unprecedented vacuum and emerging opportunities within the technological sphere for our stakeholders to tap upon. We are optimistic that this initiative with CETIM will increase technology capabilities of our industries, and lead to further investments in new and emerging fields. Innovation through strategic collaborations in R&D activities and Center of Excellence are now more crucial than ever for businesses to adapt to the new norm, while remain resilient and competitive,” said Dato’ Azman.

Mr. Daniel Richet, CEO of CETIM, is very pleased to initiate this new cooperation to support MIDA and Malaysia in its ambitious technological development programme and eager to launch, through joint industrial and R&D collaborative projects, concrete actions on 4.0 cooperation, talent development and knowledge sharing.
“As MIDA has always been looking for international cooperation with major industrial countries, and therefore looking for a prominent French technology partner, it became logic to see CETIM and MIDA being in contact since 2013, and then further explore the best ways to handle the issues and challenges in implementing Industry 4.0 in the Malaysian industrial landscape. CETIM has a long history and experience in supporting R&D, innovation and development of all companies, including SMEs in the mechanical industry, in France first, through national programmes for robotics, additive manufacturing; and then internationally. We are proud to be associated with MIDA, as Malaysia is now embarking on important priorities such as industrial automation and digitalisation,” mentioned Daniel Richet.

As the leading French player in the fields of mechanical engineering innovation and R&D, MIDA is optimistic of CETIM’s reputation and capabilities to provide comprehensive services to Malaysia’s industry and to improve companies’ competitiveness through mechanical engineering, transfer of innovations and advanced manufacturing solutions.
This will ultimately contribute to the country’s shift towards advance manufacturing, knowledge-driven, higher value-added and industry-driven research activities. It will also promote a circular economy, whereby waste and leakages are systematically phased out through careful product design and management, coupled with efficient business models. It is hoped that this will lead to a more sustainable and productive business model in line with the greater agenda of the United Nation’s Sustainable Development Goals.

As the principal investment promotion and development authority in the country, MIDA has been consistently promoting investments in R&D, including undertakings within the Industry 4.0 drivers. The agency continues to step up its efforts to drive stronger R&D linkages between the industry and, tertiary and research institutions. As to date, MIDA has approved 195 R&D projects with total investments of RM3.0 billion. These comprise of approved companies of 46 In-House R&D facility, 79 Contract R&D Companies, 30 R&D Companies, 24 R&D Status Companies as well as 16 national strategic R&D projects. These R&D have spurred innovative technologies within the industries in Malaysia through enhancing of knowledge workers as well as the transfer of technologies.The Government continues to support the R&D framework in the country through various incentives and financial assistance. MIDA, in particular, offers tax incentives to manufacturers with in-house R&D facilities or research service providers. Investment Tax Allowance (ITA) incentive is offered to entities that are approved as R&D Company,

Contract R&D Company, or In-house R&D facility; where else Contract R&D companies may also opt for Pioneer Status incentives.
To further invigorate R&D activities, the firms that receive services from R&D status companies are eligible to claim for double deductions on eligible incurred expenditure to the Inland Board Revenue (IRB). This is an effective way to promote R&D services and pitch into the R&D ecosystem as a whole. MIDA hopes for more companies to leverage upon this support to build their long-term competitiveness and sustainability.

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ABOUT MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

ABOUT CETIM
Since 1965, CETIM, the French Technical Centre for Mechanical Industry, has been supporting innovation and competitiveness of companies thanks to its multidisciplinary skills, digital expertise and unique R&D capacity. With its international subsidiaries, its 8,000 customers in more than 50 countries, CETIM has become a world leading player to overcome environmental and Industry 4.0 main challenges with innovative solutions and services. In addition, CETIM is part of the Carnot Institute Network, under the aegis of the French government to enlarge the scope of R&D and promote partnership research with SMEs. For more information, please visit www.cetim.fr and follow us on Twitter, Facebook, LinkedIn and YouTube channel.

For media inquiries, please contact:

Ms. Manjit Kaur
E-mail: [email protected] | Phone: +603-2267 3509

Mr. Jean-Francois Atgé
E-mail : [email protected] | Phone: 012 285 7088

MIDA and CETIM Inks MOU to Strengthen Malaysia’s Manufacturing Sector Towards Advance Engineering and Technology in line with Malaysia’s Investment Aspirations

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Kuala Lumpur, 22 February 2021 – Leuze electronic GmbH + Co. KG, short: Leuze, one of the world class optical sensor producers, has identified Malaysia for its first production plant in Southeast Asia. During a virtual press conference held recently in January 2021, while presenting the company’s 2020 performance and its outlook for 2021, Leuze made the official announcement of the new manufacturing plant’s opening in Malaysia. The plant is currently under rapid construction phase.

Dato’ Azman Mahmud, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) congratulates Leuze on their significant move to Malaysia for the business expansion. This decision speaks volumes of the confidence Leuze has in Malaysia. MIDA initiated the first contact with Leuze in December 2018. Since then the Malaysian Government through MIDA has been engaging with Leuze‘s team to facilitate the project’s provisions, especially in obtaining the necessary licence approval.

Dato’ Azman reiterates, “Malaysia has a mature and diverse ecosystem for the rapid development of sensor applications in the electronics industry. The milestone of Leuze’s activities in Malaysia is definitely in line with the Government’s aspirations to transform Malaysia into a high technology and knowledge-based economy. New era of electronics is emerging globally and MIDA is in the forefront of the technologies, as Leuze will bring in frontier sensor products and new technology into the country.”

Leuze, known as the specialists in the optical sensors, will be establishing its first production facility in the ASEAN region and second in Asia, after the opening of their factory in Shenzhen, China in 2006. To cater to the high demand in Asian market, Leuze decided to expand its international production locations, also to support the company’s multi-location production strategy. The company offers an extensive line of optical electronic sensor products for electrical automation. It is active in intralogistics, packaging, tooling, automotive and lab automation. Its group has more than 1,200 employees in 21 subsidiaries in the development, production, sales and services segmentations worldwide. In addition, more than 40 distributors are actively servicing Leuze’s five (5) existing production plants and soon, the upcoming plant in Melaka, Malaysia.

According to Sebastian Raible, Director of Global Projects Operations and Project Manager of Leuze’s construction project in Malaysia, “Melaka plant will primarily produce sensors for the lucrative market in Asia. The new production site will operate as Leuze Electronic Malaysia Sdn. Bhd. and will be a 100 per cent subsidiary of Leuze Electronic GmbH + Co. KG, Germany. The plant is being constructed on a site area spanning over 17,000 square meters and the first building stage of the plant is estimated to be completed by the first quarter of 2022. Besides some minor impacts in the construction works due to the MCO, the project runs as planned and the pilings as well as the groundwork are in process at the moment. With the great support of the local authorities in Melaka, Leuze expects no further impacts on the construction project.”

He added “One reason for selecting Melaka for the new Leuze production site was because of the excellent talent pool in the region. The well-established universities in Melaka as well as the thriving electronic industry played an important role in the site selection process.”

“With a total usable floor space just below 7,000 square meters in the first expansion phase, the new Leuze plant targets a demand of 150 to 200 qualified employees”, said Jochen Wimmer, Chief Operating Officer of the Leuze Group.

“In the medium-term, Leuze is also targeting for future partnerships with the local universities. With the support of MIDA, Leuze has successfully started hiring local graduates in engineering positions, in line to provide adequate training to the young talents prior to starting the production”, explains Jochen Wimmer.

Meanwhile, Dato’ Azman also emphasised “The Government will ensure Malaysia remains as the preferred investment location with a favourable environment for quality investments. Investors from Germany such as Leuze, acknowledge and benefit from the competitive advantages the nation has despite the unprecedented pandemic. We are at the vanguard to entice more new investments in the areas of technology and innovation to position Malaysia as a manufacturing powerhouse of Asia.”

Over the past 50 years, Leuze has evolved into a high-tech company and an innovation leader in industrial automation. The family-owned company was founded in 1963 in Owen, a small town in the state of Baden-Württemberg in Southern Germany, initially developing electronic sensors for textile sector, but soon after, expanding its product portfolio into various other industries. In 2020, during the global pandemic, Leuze achieved sales of 210 million euros, compared to 222 million euros in the previous year, which records only a five (5) per cent decline. “For a corona year we can be very satisfied with this result. That is why we rate 2020 as a successful business year, despite the small minus. Moving forward, Leuze is fully committed to its growth plans for 2021 and intends to double its sales again in the next few years.” said Ulrich Balbach, the CEO of Leuze.

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About MIDA

About Leuze Electronics

With curiosity and determination, the sensor people from Leuze have been forerunners for innovations and technological milestones in industrial automation for more than 50 years. They are driven by the success of their customers. The technology leader’s high-tech product range includes a number of different sensors for the field of automation technology. Among these are switching and measuring sensors, identification systems, and data transmission and image processing solutions. As a Safety Expert, Leuze is also focused on components, services and solutions for safety at work. Leuze concentrates on its core industries, in which the Sensor People have extensive, specific application know-how and many years of experience. These include intra logistics and the packaging industry, machine tools, the automotive industry as well as laboratory automation. Leuze was founded in 1963, headquartered in Owen/Teck in Southern Germany. Today there are more than 1,200 sensor people around the world who are working with determination and passion for progress and transformation to make their customers successful in a constantly changing industry. Regardless of whether in the technological competence centers or in one of the 21 sales companies, supported by more than 40 international distributors. www.leuze.com

Media contacts:

MIDA:
Manjit Kaur Balkar Singh (Ms)
Email: [email protected]
Tel.: +603 2267 3509

Leuze:
Ms. Martina Schili (Ms)
Email : [email protected]
DL: +49 7021 573-116

Malaysia is the Preferred Location for German Based Leuze Electronic to Establish Its First Optical Sensor Production Plant in Southeast Asia

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Kuala Lumpur, 8 February 2021 – The recent report by The Straits Times of Singapore on 5 February 2021 regarding foreign investors fleeing Malaysia is incorrect. The piece falsely indicates that the United Nations Commission on Trade and Development (UNCTAD) report confirmed what has been spoken of anecdotally.

The UNCTAD report estimated that Global Foreign Direct Investment (FDI) flow fell by 42 per cent to an estimated USD859 billion in 2020 compared to USD1.5 trillion recorded in 2019. Almost all regions reported lower FDI in 2020 which were mainly due to the impact of lockdowns and a drastic decrease in the economic activities during the COVID-19 pandemic. The FDI flows to developing economies decreased by 12 per cent. FDI into South East Asia contracted by 31 per cent due to a decline in investments to the largest recipients in the sub-region; inflows in Singapore fell by 37 per cent, Thailand by 50 per cent, Indonesia by 24 per cent, Vietnam by 10 per cent, and followed by Malaysia by 68 per cent. Notably, the computation of FDI flows by UNCTAD is based on Balance of Payment (BOP) statistics, published by respective countries in the context of net FDI flows.

Lower net FDI inflow is not an unfavorable signal. Malaysia continues to attract high levels of gross FDI

According to the data by the Department of Statistics Malaysia (DOSM) for the period of January-September 2020, the total Gross FDI inflow into Malaysia was valued at RM108.2 billion compared to RM102.3 billion in the same period in 2019, an increase of 5.8 per cent. This is a considerable achievement given the Movement Control Order (MCO) and Recovery Movement Control Order (RMCO) in Q2 and Q3 of last year, respectively. The Gross FDI inflow is also reflective of the high levels of FDI projects approved and implemented in the economy (manufacturing, services and primary sectors) over the last few years. It is noted that the total FDI approved throughout 2018 to September 2020 was valued at RM206.02 billion.

The UNCTAD report estimated the net FDI flow into Malaysia for the whole year of 2020 totalled USD2.5 billion (approximately RM10.1 billion), a decrease of 68 per cent from the previous year’s performance. Based on the data from DOSM, Malaysia registered net FDI outflows in Q3, driven by the outflows from debt instruments amounting to RM9.35 billion in the stipulated period. This was reflected in inter-company loan extensions and scheduled loan repayments, which are typical for multinational corporations’ (MNCs) operations; as well as the trade credits granted to manufacturing firms, in line with substantial exports, especially in the electrical and electronics (E&E) sector. Notably, Q3 2020 is an exceptional period for the first time since Q4 2009. Meanwhile, equities moderated to RM13.40 billion from RM17.33 billion in January to September 2019, a decrease of 23 per cent compared to the estimated global FDI drop of 42 per cent in 2020.

The net FDI flows are determined by many factors including abnormal disruptions in the global economy which could result in larger repatriations due to loan repayments and borrowings from their HQ and affiliates overseas for the particular year. The decline in 2020 mirrors the situation Malaysia experienced in 2009 after the subprime crisis in the US. MNCs in Malaysia were repatriating higher amounts of their profits for loans repayments and retaining earnings to help their HQ and affiliates faced with financial difficulties. The same can be said for 2020 when the world was hit by the pandemic.

Net FDI flows also indicates the maturity of Malaysia’s monetary policy which allows for the repatriation of capital, interest, dividends and profits, which is a prerequisite for a trading nation such as Malaysia. This business-friendly investment policy has also strengthened Malaysia’s position as a regional and global supply chain hub. A lower net FDI is not necessarily an unfavourable sign. For example, the E&E Industry which is one of the largest FDI recipients in Malaysia recorded a trade surplus of RM134 billion or 74 per cent of Malaysia’s total trade surplus of RM185 billion in 2020. It is the backbone of the manufacturing sector in Malaysia, contributing 39 per cent to total exports and 48 per cent to total manufacturing exports, not to mention the diverse ecosystem and supply chain the industry has created. The FDI stock in Malaysia is prominently high, totalled to RM689.1 billion as at end of September 2020.

Various factors affect business decisions of foreign investors

The Straits Times article highlighted news of Korean automaker Hyundai relocating its Asia-Pacific headquarters from Malaysia to Indonesia and the closure of Panasonic solar panel plants in Malaysia, hence insinuating that Malaysia is no longer an attractive investment location for MNCs. Taking a closer look at the reasons behind these business decisions will illustrate a different truth.

The ASEAN market has been targeted by Hyundai as an alternative market to China. As such, the roles of Hyundai’s Asia Pacific regional headquarters (HQ) in Malaysia have expanded and are classified as an incomplete form of HQ due to the absence of a production plant in Malaysia. However, with Hyundai’s new manufacturing plant in Indonesia, the new Hyundai HQ is expected to be a fully-formed space with increased production and sales. The lower demand for Hyundai cars in Malaysia also contributed strongly to their relocation decision.

As for Panasonic, the Group has been established in Malaysia for more than 30 years with 22 subsidiaries operating in the country. They are engaged in various activities ranging from manufacturing, research and development (R&D), sales and marketing. The recent announcement is on the closure of one of its subsidiaries in Malaysia producing photovoltaic (PV) or solar panels. This is due to Panasonic Corporation, Japan’s decision to discontinue the production of wafers, solar cells and solar modules at its factory, both in Japan and Malaysia. This corporate decision was driven by the declining price of global solar cell market and the increase of raw material costs arising from global expansion by Chinese companies, which would require higher capital investment for Panasonic to remain resilient in the solar business. Malaysia remains the third largest manufacturer of PV-cells and modules in the world, after China and Taiwan. Malaysia currently hosts a comprehensive photovoltaic ecosystem consisting over 250 companies in upstream (wafers and cells) and downstream (inverters and system integrators) activities. Among notable companies in Malaysia include First Solar and SunPower (USA), Hanwha Q Cells (Korea), Longi, Jinko Solar and JA Solar (China). MIDA has also recently approved a major integrated solar project that will further solidify Malaysia’s role in the global PV industry. An announcement on this project will be made soon.

For the whole of 2020, nine existing foreign-owned manufacturing companies with total investments of RM394.3 million in Malaysia had implemented business rationalisation measures. These companies have either closed their business operations in Malaysia or relocated to other countries due to technology disruption that transformed their business landscape and reduction in demand for their products. This investment is a fraction of the total approved investment in the economy for the period January-September 2020.

Growth through complementarity among ASEAN countries

In addition, the recent announcement of tech companies moving into competing countries in the region does not deter Malaysia. There are various factors underlying business decisions to choose an investment destination. This includes low labour costs, large size of the domestic market as well as the availability of mineral resources. While potential investors in the automotive industry are considering setting up their assembly plants in neighbouring countries, Malaysia remains a major producer of semiconductors and sensors for cars. In fact, Malaysia is still at the forefront of the new ICE age (Internal Computed Engine – ICE) that requires semiconductors as the driver of the Electric Vehicle (EV) Industry.

Malaysia being a major supply chain hub in the region would further encourage Malaysian companies and industries to undertake investments to supply technology, products and services to this MNCs investing in ASEAN countries. The FDI inflows into neighbouring countries should not be viewed negatively as Malaysia stand to benefits from the spillover effects of these investments. Malaysia has one of the most comprehensive ecosystem in the region in the electric and electronics (E&E), Machinery and Equipment (M&E), aerospace, automotive, and medical devices industries, to name a few.

Foreign Investors Confidence in Malaysia remains high

The Straits Times also quoted the viewpoint of the head of the EU-Malaysia Chamber of Commerce and Industry (EUROCHAM) on investors’ confidence in Malaysia. It is pertinent to note that the views of the CEO of EUROCHAM may not necessarily reflect the views of all its members. The Chamber also does not represent all foreign MNCs operating in Malaysia. As part of our on-going engagements, MIDA has been working very closely with all the International Chambers in Malaysia to assist and facilitate the concerns of their members.

The total approved investment for January to September 2020 and the announcement of major projects in the year signifies the foreign and domestic investors’ confidence in Malaysia. Despite the challenging global investment environment due to COVID-19, Malaysia recorded a total of RM109.8 billion worth of approved investments in the economy (manufacturing, services and primary sectors) for the first nine months of 2020. These investments involved 2,935 projects and will create 64,701 jobs opportunities. FDIs accounted for almost 40 per cent (RM42.6 billion). The manufacturing sector attracted the largest portion of approved investments for this period, contributing more than half (59.5 per cent) or RM65.3 billion, followed by the services sector (39 per cent/RM42.8 billion), and the primary sector (1.5 per cent/RM1.7 billion). Investments approved in the manufacturing sector for the period of January to September 2020 saw an increase of 16.6 per cent compared to the corresponding period in 2019. FDI in the manufacturing sector particularly saw an increase of 3.2 per cent to RM39.4 billion. The realisation of these investments over the immediate to medium-term will provide support to economic growth in 2021 and beyond.

In 2020, Malaysia attracted a fair share of multinational corporations including Fortune 500 companies in the high-end and high-technology industries. This includes LAM Research, a US global Fortune 500 supplier of innovative wafer fabrication equipment and services to the semiconductor industry that has chosen Malaysia to expand its global footprint by establishing its advanced technology production facility; a new project by Dexcom, a US company and leader in continuous glucose monitoring system will be producing their niche offerings in Malaysia; UCT (Ultra Clean Holdings Inc), a US-based Fortune 500 company, a leading developer and supplier of critical subsystems, ultra-high purity cleaning and analytical services, will be setting up their operations primarily for the semiconductor industry; Smith+Nephew from the United Kingdom that produces high-tech medical device products including knee and hip implants; LEM, a Switzerland-based electrical measurement company that will set up its new production plant in Malaysia to meet the growing demand of its customers in the industrial and automotive sectors; MusicTribe, a US-based multinational leader for professional audio products and musical instruments, on the other hand, is leveraging Malaysia to set up an Industry 4.0-driven, fully robotised manufacturing facility in addition to their Principal Hub activities; and the most recent announcement by SK Nexilis, a Korean copper foil manufacturer producing electric vehicle batteries.

Existing MNCs also continue to undertake major reinvestments into high-end products and activities in Malaysia, illustrating Malaysia’s on-going value proposition to investors. These include Western Digital, a US Fortune 500 company and the third largest computer Hard Disk Drive (HDD), Solid State Drive (SSD) and flash memory devices manufacturer in the world, announced their additional investments in Malaysia to design, develop and manufacture media and substrates for HDD; Intel, a US Fortune 500 company will bring the latest Advanced Assembly and Test technology to Malaysia, marking a new milestone in the company’s 48-year history of investing and partnering in Malaysia; Wistron, the Taiwan-based Fortune 500 company engaged in the R&D, design, manufacture of E&E products has acquired Western Digital’s Petaling Jaya factory to undertake new business activities; Bosch, an existing German Fortune 500 company is setting up a manufacturing facility park for testing of semiconductor components and sensors; B.Braun, a German based company, expanded its global test centre for medical devices due to strong talent capability in Malaysia; Nippon Electric Glass (NEG), a leading Japanese manufacturer of specialty glass has also expanded their production capacity of glass tubing for pharmaceutical use in Malaysia given the demand for its products following the vaccine roll-out; Eppendorf, a leading German life science company that established an integrated centre for their shared services hub, covering functions such as IT, HR as well as Finance and Controlling, for the Group’s operations in the Asia Pacific, Middle East and Africa; TF AMD, a joint venture between Advanced Micro Devices (AMD USA) and Nantong Fujitsu Microelectronics Co Ltd (Nantong Fujitsu) is expanding and offers Outsource Semiconductor Assembly and Test (OSAT) services and servicing front-end semiconductor manufacturing, namely Wafer Level Chip Scale Packaging; and NTT, a Japanese Fortune 500 and world’s 4th largest Telekom Company recently announced the launch of its fifth data centre in Malaysia. These reinvestments by existing companies are testaments of Malaysia’s continued success to retain and encourage high-value operations by MNCs in Malaysia.

MIDA adopts a cautiously optimistic outlook

Being located in the Asia Pacific rim and the centre of ASEAN, Malaysia remains an attractive investment destination, particularly with a favourable investment environment, including the availability of excellent infrastructure, telecommunication services, financial and banking services, supporting industries, skills and trainable workforce, as well market opportunities offered through the 16 Free Trade Agreements that Malaysia has signed. Malaysia maintained its strong position globally, ranking the second-highest in Southeast Asia and twelve (12th) out of 169 countries for trade connectivity in the DHL Global Connectedness Index (GCI) report in 2019. According to a recent joint study by KPMG and The Manufacturing Institute in the US entitled “Cost of Manufacturing Operations around the Globe”, Malaysia is ranked fourth among 17 economies in an assessment comparing the economy’s competitiveness as a manufacturing hub, which is ahead of countries in Asia such as China, Japan, Vietnam and India. Malaysia is also ranked high at 12th in the World Bank’s Doing Business 2020 and 27th in the IMD World Competitiveness 2020. The above rankings by various agencies further reinforce Malaysia’s position as a competitive and an attractive investment location.

Looking ahead, MIDA has identified 240 high-profile foreign investment projects including Fortune 500 companies in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion. These include on-going negotiations with a number of world-renowned companies from various sectors such as automotive, chemical, and advanced electronics and deep-tech to make Malaysia as high-value manufacturing and Global Supply Chain Hub as well as Services and Regional Operations hub. Supported by the rapid growth of adoption of digitisation, there are enormous opportunities for investors to explore emerging technologies such as Big Data Analytics, Cloud Computing, Artificial Intelligence and Internet of Things (IoT) to embrace new ways of doing business and create more technology collaborations. In this regard, MIDA is in negotiation with multinational companies for the establishment of Data Services. The investment on Data Services will accelerate Malaysia into the digital space that will move the country up the value chain in key economic segments, including the services sectors such as ICT, data analytics, design and development. Most of these projects are subject to Non-Disclosure Agreements (NDA), hence announcements will be made once negotiations are concluded.

Presently, MIDA has also received RM47.7 billion worth of potential investments into the country. These projects, once approved, are expected to be implemented within the year 2021 to 2022.

Despite the on-going international border closures and strict standard operating procedures (SOPs) in many countries to contain the spread of COVID-19, MIDA continues to be responsive in undertaking innovative and aggressive investment promotion initiatives to entice FDI through its established footprint of 20 overseas and 12 regional offices. MIDA actively organises various digital investment promotion programmes such as virtual webinars on local and international platforms.

The establishment of a One Stop Centre (OSC) in MIDA effective 2nd October 2020 to ease the movement of business travellers by expediting the approval of their entry into Malaysia, is a major initiative by the Malaysian Government. This Centre assumes a critical role in ensuring that Malaysia remains steady on the path of economic recovery and growth by enabling business travellers’ movement to do their business in Malaysia during the pandemic. As at 5 February 2021, a total of 5,861 Long Term and Short Term Business Travellers have been recommended for approval by the OSC. These business travellers include businessmen and technical experts who provide technical advisory services and installation commissioning of the machinery and equipment.

While inflows of FDI are crucial for the continued development of the economy, the role of domestic direct investments (DDI) is not to be underplayed, as outlined in the 11th Malaysia Plan. Domestic investments will continue to assume a leading role in the growth of the economy. Among the major strategies include creating Malaysian conglomerates by identifying potential companies to provide the necessary support; harnessing on outsourcing opportunities created by MNCs operating in Malaysia; enhancing the current incentive schemes to assist Malaysian companies to scale-up; and intensifying technology acquisition by Malaysian-owned companies. Notably, in the total investments approved for the period Jan-September 2020, DDI accounted for 61.2 per cent, or RM67.2 billion, while foreign direct investments (FDI) made up the rest.

Over the last five decades, MIDA has assumed the critical and pivotal roles in contributing significantly to Malaysia’s rapid industrial development particularly in the manufacturing and services sectors by promoting investments, both FDI and DDI. MIDA’s strategies have gone through various transformations, in-line with the changing dynamics of the global and domestic economic landscapes. Moving forward, the Government will continue to be at the forefront to entice more high-value investments in the areas of technology and innovation to position Malaysia as an alternative supply chain hub in Asia. The latest international ranking by KPMG has cemented Malaysia’s position as a competitive investment location for investors. Through policy reviews and targeted approaches, the Government will ensure that Malaysia remains as the preferred investment location with a favourable environment for quality investments in Asia

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About MIDA

For more information, please contact:

Ms. Manjit Kaur Balkar Singh
Director, Corporate Communications Division, MIDA
Email: [email protected] | DL: +603-2267 3509

Malaysia Continues to be The Investment Destination for High-Value Manufacturing And Global Services in Asia

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Kuala Lumpur, 4 February 2021 – The Malaysian Investment Development Authority (MIDA) congratulates CIMB on their recent launching of CIMB GreenBizReady, a one-stop sustainability solution for Malaysian Small and Medium Enterprises (SMEs). This is a contemporary platform to catalyse the transition of Malaysian SMEs towards the green economy. With an allocation of RM250 million, SMEs will be empowered through financial solutions and incentives such as sustainability-linked financing benefits, access to sustainability service providers, training and capacity building, certification and advisory services, and business matching with the support of industry leaders and related Government agencies.

Being the principal investment promotional partner to the business community in Malaysia, MIDA is eager to support this newly launched initiative in facilitating CIMB to bring in more investments in the green technology projects by providing the necessary assistance to the business stakeholders.

Starting from 2016 to September 2020, MIDA has approved 1,317 green technology projects of investments amounting to RM18.55 billion, apart from 63 green services companies with a total proposed operational expenditure of RM318.51 million, under the Green Technology incentives. These commendable figures indicate the potential of more substantial investment flows in green technology areas within the country.

Dato’ Azman Mahmud, Chief Executive Officer of MIDA said “The COVID-19 pandemic has compelled economies to revisit their business strategies and operations to hold business revenues while building a more sustainable future. The CIMB GreenBizReady, reflects the commitment to assume a vital role in boosting the socio-economic development and growth of the green technology sector in Malaysia. The SMEs especially, will be equipped with practical knowledge and tools to incorporate economic, environmental and social (“EES”) considerations into their businesses in helping them becoming sustainability-ready for long-term business resilience.”

“More importantly, this platform is timely launched to assist green industry players to contribute in economic recovery whilst advancing Malaysia’s green agenda and aspiration for sustainable growth, in line with the United Nation’s Sustainable Development Goals (SDG)” said Dato’ Azman.

The Government continues to prioritise green adoption to spur economic multiplier effects by extending the incentives of Green Investment Tax Allowance (GITA) for the purchase of green technology assets and Green Income Tax Exemption (GITE) for the use of green technology services and systems until 2023. These incentives which were introduced in Budget 2014, cover green technology activities in green energy, green building, green data centre, integrated waste management and supporting services activities. The GITE is also extended for companies undertaking solar leasing activity under the Net Energy Metering (NEM) scheme.

MIDA is optimistic that by encouraging more investments in green projects and services, there will be increasing demands for the overall green technology industry; spurring a more vibrant domestic economy.

The details on tax incentives for Green Industry are available in MIDA official website at https://www.mida.gov.my/forms-and-guidelines/tax-incentives-for-green-industry/. For more information about CIMB GreenBizReady, please visit https://cimb.com.my/greenbizready or email at [email protected].

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About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

For more information, please contact:

Ms. Wan Hashimah Wan Salleh
Director, Green Technology Division
Email: [email protected] | DL: 603 2267 3540

MIDA and CIMB Cooperate in CIMB GreenBizReady – Sustainability Solution Platform for Malaysian SMEs

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Kuala Lumpur, 29 January 2021 – The United Nations Commission on Trade and Development (UNCTAD) has released earlier this week its latest Global Investment Trend Monitor report. It estimated that Global Foreign Direct Investment (FDI) flow fell by 42 per cent to an estimated USD859 billion in 2020 compared to USD1.5 trillion recorded in 2019. Almost all regions reported lower FDI in 2020, mainly due to the impact of lockdowns and a drastic decrease in the economic activities during the COVID-19 pandemic.

FDI flows to developing economies decreased by 12 per cent. The decline was reflected across all types of investments: greenfield projects (- 4 per cent), cross-border projects finance deals (-7 per cent) and cross-border M&A (- 4 per cent). FDI into South East Asia contracted by 31 per cent due to a decline in investments to the largest recipients in the sub region; inflows in Singapore fell by 37 per cent, Indonesia by 24 per cent, Vietnam by 10 per cent, Thailand by 50 per cent and Malaysia by 68 per cent.

The Government acknowledges that the FDI landscape has been and will likely remain challenging and highly competitive. As such, accelerating investments is a key priority in securing Malaysia’s growth recovery. In the recent period, efforts have been intensified to further attract and facilitate quality investments. Under PENJANA, the Government had announced several tax incentives to spur investment activity, including a 10-15 year tax exemption for new FDI in the manufacturing sector with capital investment of RM300 million or more. Measures to further improve investor experience, in particular, to ensure seamless investor facilitation will continue to be pursued on an ongoing basis. Specific initiatives that have been implemented include, amongst others, the establishment of the Project Acceleration and Coordination Unit (PACU) and various online platforms including i-Incentive to expedite the realisation of investments. The Government is also currently formulating a national investment strategy to attract high-quality investments that can meaningfully enhance Malaysia’s productive capacity, create high-skilled jobs, promote technology transfer and foster domestic linkages.

These efforts will further augment Malaysia’s attractiveness as an investment destination. As indicated by a recent joint study by KPMG and the Manufacturing Institute in the United States entitled “Cost of Manufacturing Operations around the Globe”, Malaysia was ranked fourth amongst 17 economies, which is ahead of countries in Asia such as China, Japan, Vietnam and India. The study validates Malaysia’s aspirations to become a global supply chain hub in the region. Further, MNCs are using Malaysia as a hub for treasury management services as well as a myriad of activities of related services.

Malaysia was also ranked second in terms of ease of doing business in ASEAN (12th globally) and for protecting investors according to the World Bank Doing Business Report 2020; fourth globally in handling the COVID-19 crisis according to Blackbox Research and Toluna; fifth amongst emerging economies as a key destination for investment and businesses, on the back of potential rapid economic recovery, stable fiscal and financial position and the ability to contain and alleviate the COVID-19 pandemic according to a recent report by Bloomberg.

Investment intentions remain healthy in Malaysia. Malaysia recorded a total of RM109.8 billion worth of approved investments in the economy (manufacturing, services and primary sectors) for the first nine months of 2020. These investments involved 2,935 projects and will create 64,701 jobs opportunities. FDIs accounted for almost 40 per cent (RM42.6 billion). The realisation of these investments over the immediate to medium term will provide support to economic growth in 2021 and beyond.

The manufacturing sector attracted the largest portion of approved investments for this period, contributing more than half (59.5 per cent) or RM65.3 billion, followed by the services sector (39 per cent/RM42.8 billion), and the primary sector (1.5 per cent/RM1.7 billion). Investments approved in the manufacturing sector for the period of January to September 2020 saw an increase of 16.6 per cent compared to the corresponding period in 2019. FDI in the manufacturing sector particularly saw an increase of 3.2 per cent to RM39.4 billion.

Malaysia has attracted a fair share of multinational corporations in the high-end and high- technology industries. This includes Schmidt and Nephew from the United Kingdom that produces high-tech medical device products including knee and hip implants; similarly, a new project by Dexcom, a US company and leader in continuous glucose monitoring system will be producing their niche offerings in Malaysia; LAM Research, a US global supplier of innovative wafer fabrication equipment and services to the semiconductor industry that chose Malaysia to expand its global footprint by establishing its advanced technology production facility in Pulau Pinang; LEM, a Switzerland-based electrical measurement company that will set up its new production plant in Malaysia to meet the growing demand of its customers in the industrial and automotive sectors; MusicTribe, a US-based multinational leader for professional audio products and musical instruments, on the other hand, is leveraging Malaysia to set up an Industry 4.0-driven, fully robotised manufacturing facility in addition to their Principal Hub activities; and the most recently SK Nexilis, a Korean copper foil manufacturer producing electric vehicle batteries is another example.

Existing companies also continue to expand their operations in Malaysia, illustrating Malaysia’s on-going value proposition to investors. These include Eppendorf, a leading German life science company that established an integrated centre for their shared services hub, covering functions such as IT, HR as well as Finance and Controlling, for the Group’s operations in the Asia Pacific, Middle East and Africa; Bosch, an existing German company for setting up a manufacturing facility park for testing of semiconductor components and sensors; B.Braun, an existing German company, expanded its global test centre for medical devices due to strong talent capability in Malaysia; Wistron, the Taiwan-based company engaged in the research and development, design, manufacture and sale of E&E products; Western Digital, a US company and the third largest computer Hard Disk Drive (HDD), Solid State Drive (SSD) and flash memory devices manufacturer in the world announced their additional investments in Malaysia to design, develop and manufacture media and substrates for HDD; Nippon Electric Glass (NEG), a leading Japanese manufacturer of specialty glass has also expanded their production capacity of glass tubing for pharmaceutical use in Malaysia given the demand for its products following the vaccine roll-out.

Looking ahead, foreign investment into Malaysia is expected to be sustained at pre-COVID level as MIDA has identified 240 high-profile foreign investment projects in the manufacturing and services sectors, with a combined potential investment value of RM81.9 billion, that are being negotiated and targeted by Malaysia in 2021. Presently, MIDA has also received and evaluated RM47.7 billion worth of potential investments into the country. These projects, once approved, are expected to be implemented within the year 2021 to 2022.

Being located in the Asia Pacific rim and the centre of ASEAN, Malaysia continues to be an attractive investment destination. The availability of excellent infrastructure, telecommunication services, financial and banking services, supporting industries as well as a diverse pool of talents with skills and trainable workforce has been pull factors for investors to consider. Malaysia.

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About MIDA

For more information, please contact:
Ms. Choo Wai Meng,
Executive Director Strategic Planning (Manufacturing), MIDA.
Email: wmchoo @mida.gov.my | DL: +603-2267 3434

Ms. Roslina Othman,
Director, Investment Statistics Division
Email: [email protected] | DL: +603-2267 6650

Malaysia Remains Steadfast To Accelerate Quality Investments

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Kuala Lumpur, 27 January 2021 – In collaboration with Intel Malaysia, the Malaysian Investment Development Authority (MIDA) has successfully organised a Virtual Artificial Intelligence for SMEs (AI4S) on 27 January 2021. This virtual event is the continuation of the first Axiomtek Artificial Intelligence Starter Kit launch on 18 August 2020; which led Intel Malaysia to award the AI Starter Kits to 100 selected companies in Malaysia. These identified SMEs will go through a comprehensive technology enabling process and training that will empower them to implement pilot projects in their settings to jump-start the Artificial Intelligence (AI) or Industry 4.0 journey.

The AI Starter Kit was co-developed with Axiomtek to bring in the right Industry 4.0 technology for the local industries to adopt and benefit its results. Axiomtek is a leading design and manufacturing company in the industrial computer and embedded field, based in Taiwan. It has successfully gained global recognition for its innovative designs and outstanding customer satisfaction. Axiomtek has successfully partnered with Intel Malaysia to develop and deliver cutting-edge solutions and technologies for its clients.

During his keynote address, Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA, said “While the country is gearing steadily into the knowledge and digital economy, Industry 4.0 adoption is deemed crucial for business survival and growth in innovation-led value creation. There are untapped opportunities available for the business community, especially SMEs. We want more SMEs to step up to embrace new technologies in their business activity. We know that there are numerous local companies out there that are capable of AI technology adoption but are not aware of how and where to start.”

The AI4S event sealed Intel Malaysia as one of the industry captains in paving the way for the adoption of Industry 4.0 and supporting SMEs to build value within the domestic industry ecosystem and preparing Malaysia to rise among the regional leaders in Industry 4.0. In this collaborative engagement, Intel Malaysia has committed to provide technology, knowledge transfer and some hardware funds. Intel Malaysia, together with Axiomtek will also provide training, supervision and mentoring of the pilot projects implementation by each participating local company. Simultaneously, the Malaysia Productivity Corporation (MPC) will assist in coordinating the entire programme.

This initiative is also part of Intel’s onboarding to Malaysia’s Lighthouse Programme which is being pursued by MIDA. It aims to back industry leaders in accelerating the Industry 4.0 adoption to a scalable and impactful stage while also influencing the domestic ecosystem providers for similar transformation by facilitating them to address implementation barriers and overcome challenges.

Dato’ Azman also suggested, “Moving forward I have proposed Intel to explore in enabling the universities in Malaysia to adapt and prepare the future workforce to embrace AI once they enter the job market. This graduate skill would reduce the colossal learning curve in work fields, while saving employers’ precious time and resources in correcting them into expected abilities.”

The AI4S Programme is hoped to inspire other MNCs to emulate Intel’s good intention in contributing back to the industrial ecosystem in Malaysia and increase the value proposition for the benefit of domestic economy. MIDA seeks industry leaders and players to take the opportunity and leverage the numerous facilitations offered by the Government to embrace Industry 4.0. These include Automation Capital Allowance (ACA), Industry4WRD Intervention Fund, as well as Smart Automation Grant (SAG) for companies undertaking automation in their manufacturing and processes.

The webinar has successfully attracted an overwhelming crowd of more than 1600 participants across different platforms through live webinar, FB page and Youtube Channel.

The details pertaining to the Automation Capital Allowance (ACA), Industry4WRD Intervention Fund and Smart Automation Grant (SAG) are available in MIDA official website at www.mida.gov.my.

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About MIDA

For more information, please contact:

Mr. Norhizam Ibrahim
Director,
Advanced Technology and Research and Development Division, MIDA
Email: [email protected] | DL: +603 2267 6611

MIDA and Intel Malaysia continue initiative in driving Malaysia towards Industry 4.0

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Kuala Lumpur, 27 January 2021 – CIMB ASEAN Research Institute (CARI) in partnership with ASEAN Business Club hosted another webinar under its flagship Invest ASEAN series on ‘Italian Industry Expertise in Malaysia’.

The session featured Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA); His Excellency Cristiano Maggipinto, Ambassador of Italy in Kuala Lumpur; Luciano Pezzotta, Deputy Chairman of Eurocham Malaysia and Executive Board Member of the Italy Malaysia Business Association (IMBA); Lamberto Barbieri, Managing Director of CRIF Regional Headquarters (HQ) in Asia; Vincenzo Alaimo, Vice President of Asia Pacific, Global Sales of Leonardo Helicopters Division; and Dr Luciano Giorgi, Country Manager (Malaysia) of Maire Tecnimont and Chairman of Allied Elite Limited.

Moderated by Tan Sri Dr. Munir Majid, Chairman of CARI, the discussion emphasised on the recently signed Regional Comprehensive Economic Partnership (RCEP) Agreement providing an outstanding platform for multinationals to tap into the regional trading area that represents 30 per cent of the world’s Gross Domestic Product (GDP). Malaysia as a vibrant RCEP member provides significant trading and investment opportunities, including for the Italian businesses operating in the region.

Italian investments in Malaysia have ventured in various sectors such as oil and gas, petrochemicals, aerospace, and green and circular economy. Greater collaboration between Malaysia and Italy will further open Malaysia’s private sector to tap into Italy’s advanced technological expertise and expediting the momentum of Malaysia’s digital economy.

ASEAN as a growing trade and investment hub
Tan Sri Dr. Munir in his opening statement highlighted on Invest ASEAN series presenting an active forum for influential policymakers and corporate leaders to share and identify key opportunities for growth and development in the ASEAN region, apart from analysing the emerging trends on global business and markets.

“Notwithstanding the COVID-19-induced global slowdown, ASEAN remains a dynamic region. With a combined GDP of US$3.2 billion in 2019, ASEAN represented the fifth-largest economy in the world. As the central player of the RCEP Agreement, ASEAN offers global businesses to tap into the largest free trade agreement in the world. With 15 signatories, RCEP represents a market of 2.2 billion people and a combined GDP of US$26.2 billion,” said Tan Sri Dr. Munir.

He added, “On the other side of the equation, many of us may not realise that Italy is well above the EU average in the production and use of industrial robots and adoption of Industry 4.0 technologies such as the cloud, IoT and M2M (machine to machine) communications. It is the second largest manufacturer in the EU, after Germany. Its strong industrial base and awareness of digitalisation are something which ASEAN countries would want to be engaged with.”

Italy remains committed to Malaysia as a trading and investment partner
H.E. Cristiano Maggipinto stressed that Italy has pursued a strategy to strengthen relations with ASEAN. The commitment was also conveyed through the 53rd Session of the ASEAN Ministers of Foreign Affairs Summit, in which Italy’s candidacy as Development Partner of the Association was unanimously approved.

“This important outcome institutionalised our growing political, economic and social ties, giving us a prominent role in Southeast Asia. In this framework, Italy has given new depth to the relations with Malaysia, which represents one of the most relevant nation in ASEAN and offers a number of benefits that are not easily found in the region,” stated Ambassador Maggipinto.

He points out that despite the COVID-19 pandemic, bilateral trade between Italy and Malaysia in the first seven months of 2020 remained at similar level to 2019. Italian companies in Malaysia are operating in a wide range of sectors including oil and gas, defence and aerospace, construction, automotive, and chemicals.

Government undertaking major initiatives to drive investments into Malaysia
Dato’ Azman Mahmud shared that Malaysia continues to be a competitive investment destination despite the global uncertainties, with US$26.4 billion worth of approved investments in the overall economy in the first nine months of 2020. In fact Investments approved in the manufacturing sector for the period of January to September 2020 saw an increase of 16.6% in capital investments compared to the corresponding period in 2019; with FDI recording an increase of 3.2%. The Malaysian government is undertaking additional initiatives to drive foreign investments, such as easing operating of businesses through digitalising selected government services, providing new tax incentives for the pharmaceutical and services sectors, as well as implementing a One Stop Centre (OSC) to facilitate the entry of business travellers into the country.

“Malaysia’s economic structure and the solid macroeconomic management continue to support the country’s economic fundamentals as we advance into the new normal. As we move towards strategic diversification, particularly in high-value products and high-end services, the country offers vast opportunities for Italian investments in high-quality machinery and equipment, aerospace, green technology, automotive technologies, and industrial design. MIDA is optimistic that more quality investment will be coming to Malaysia in the coming years,” said Dato’ Azman Mahmud.

Dato’ Azman also urged Malaysia’s private sector to leverage upon Italian technological expertise to help facilitate Malaysia’s digital economy, which is expected to grow by 21% between 2020 and 2025, reaching an estimated US$30 billion gross merchandise value (GMV) by 2025.

For more information, please contact:

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid
Director of Foreign Investment Promotion Division Division, MIDA
Email: [email protected]
DL: +603 2267 6633

Mr. Jukhee Hong Executive
Director CIMB ASEAN Research Institute (CARI)
Email: [email protected]

About MIDA

About CARI
CIMB ASEAN Research Institute (CARI) was established in 2011 by CIMB Group. CARI is the first independent, transnational research institute dedicated solely to the advancement and acceleration of ASEAN integration.

ASEAN as an Investment Hub: Italian Businesses Eye Malaysia as the Gateway to Opportunities Arising Regional Comprehensive Economic Partnership (RCEP)

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