80% of RM225b approved investments to be implemented within 18-24 months

80% of RM225b approved investments to be implemented within 18-24 months

11 Dec 2023

At least 80% of the RM225 billion investments approved for the January-September 2023 period are expected to be implemented within 18-24 months.

Deputy investment, trade and industry minister Liew Chin Tong said that typically, a certain duration would be needed before investors start operations.

“When approved by the Malaysian Investment Development Authority, 80% will be implemented within the period I mentioned.

“Generally, it (the company) will take time to get approval for the site and other approvals.

“Then, it will be necessary to bring in machines or manufacturing tools and finally start the manufacturing process,” he said when winding up the debate on the 2024 supply bill in the Dewan Negara today.

Liew said the RM225 billion investment figure was a successful result of various efforts and initiatives implemented by the government, including official working visits and missions.

“This is one of the highest investment achievements in history.

“This success is also proven based on fDi Intelligence data, stating that Malaysia is among the six countries that recorded the highest amount of ‘greenfield’ foreign direct investments for the January-August 2023 period,” he said.

He said Malaysia also benefitted from the current situation of uncertain geopolitical tensions, namely the US-China trade conflict and the Russia-Ukraine crisis, which led to a shift in the global supply chain.

“As a result of this situation, Malaysia has become an alternative hub for manufacturing and trading activities for multinational companies that carry out the ‘China plus one strategy’ to diversify and reduce the risk (de-risking) of the supply chain with the aim of building a more resilient supply chain,” he said.

Trade barriers

Meanwhile, he said the Malaysian External Trade Development Corporation office in the US would continue to monitor and report current developments on any trade barriers involving the country’s exports.

This was attributable to the issue of possible trade barriers by Western countries, especially the US, following the introduction of the Uyghur Forced Labour Prevention Act (UFLPA) to prevent the exports of raw materials, finished and semi-finished goods manufactured in Xinjiang, China, due to human rights violations in the region.

The law was also created to prevent Chinese manufacturers from evading anti-dumping duties and countervailing duties on solar panels and electronic goods.

Vietnam, Thailand, Cambodia and Malaysia benefitted and enjoyed tariff exemptions until June 2024 for electrical and electronics exports, especially semiconductors, to the US following restrictions imposed on imports from China.

Since this regulation was implemented in June 2022, Malaysian exports of solar panels, microchips and electronic equipment to the US are subject to strict inspection by the relevant country’s authorities.

Source: Bernama