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

“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

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

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

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

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 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

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.

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

MIDA Bridges Malaysian Fintech Start-up and UK Investment Firm

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.

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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 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

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]

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