Post-Investment Facilitation: Boosting Investors’ Confidence in Malaysia

Malaysia continues to attract strong investment flows, with RM329.5 billion approved in 2023 across the manufacturing, services, and primary sectors. Building on this momentum, the first half of 2024 saw RM160 billion in approved investments—a remarkable 18% increase compared to the same period last year, further underscoring the country’s standing as a premier investment destination.

However, attracting investments is just the beginning. To ensure these investments evolve into successful and sustainable operations, post-investment facilitation plays a crucial role. This phase is vital for ensuring that companies not only establish themselves smoothly but also thrive and expand their operations effectively.

Recognising the importance of seamless project implementation, MIDA introduced the Project Implementation and Facilitation Office (TRACK) in June 2020. TRACK was designed to monitor investment progress and provide hands-on support to address challenges during both the setup and early operational phases.

Aligned with the broader goals of the Ministry of Investment, Trade, and Industry (MITI), these initiatives also support the National Investment Aspirations (NIA) and the New Industrial Master Plan (NIMP) 2030, ensuring that Malaysia remains globally competitive. Building on this foundation, MIDA launched the Invest Malaysia Facilitation Centre (IMFC) – a One-Stop Center (OSC) for end-to-end facilitation throughout the entire investment lifecycle. With ten (10) representatives from various agencies such as the Ministry of Foreign Affairs and Inland Revenue Board, IMFC provides investors with comprehensive centralised support.

This ongoing evolution of MIDA’s facilitation services reflects its steadfast commitment to maintaining Malaysia’s attractiveness and reliability as an investment destination.

The impact of MIDA’s proactive initiatives is evident in the significant improvements seen across various metrics. Since the introduction of TRACK and the subsequent launch of IMFC, the project implementation success rate for manufacturing projects approved in Malaysia from 2016 to July 2024 has surged from 60% to an impressive 86.33%. This achievement is driven by MIDA’s dynamic and responsive approach to resolving investor-related issues, coupled with increased interaction between MIDA and its stakeholders.

The facilitation efforts led by TRACK and IMFC have experienced exponential growth, rising from 72 engagements in December 2023 to an astounding 1,941 by June 2024. This sharp increase illustrates MIDA’s commitment to ensuring investors receive the support they need at every step of their investment journey. Of the facilitation requests received during this period, more than 98.0% have been facilitated, further reinforcing Malaysia’s status as a trusted and investor-friendly destination. With this level of dedicated support, MIDA ensures investors can operate with confidence, contributing to the country’s sustained economic growth.

MIDA extended access to the Project Implementation, Tracking, and Monitoring System (On-Track) to the Economic Development Corridors (ECERDC, NCER, IRDA, RECODA, and SEDIA), State Economic Development Division/Unit (BPEN/UPEN), and State Investment Promotion Agencies. This expansion aims to enhance MIDA’s reach, enabling the identification and facilitation of issues at the ground level. This allows the needs of investors to be addressed comprehensively and efficiently across all regions.

Through the establishment of TRACK and the enhanced facilitation efforts with IMFC, MIDA has demonstrated its ability to adapt and respond to the evolving demands of the global economic landscape. These initiatives reflect MIDA’s commitment to the effective and timely delivery of services, thereby confirming that Malaysia remains competitive and attractive to investors. By proactively addressing challenges and supporting investors throughout their journey, MIDA not only bolsters current investment projects but also aligns with the broader objectives of the NIA and NIMP. These efforts underscore Malaysia’s strategic focus on fostering sustainable economic growth and maintaining its position as a leading investment destination.

MIDA’s proactive facilitation through TRACK and IMFC has significantly shortened project implementation timelines by swiftly resolving key investor concerns. Key issues facilitated include matters related to Customs, power supply, local authority approvals through OSC and Immigration.

Between December 2023 and August 2024, IMFC recorded a total of 7,554 facilitation issues. Impressively, 7,507 of these issues (99.4%) have been successfully resolved, demonstrating MIDA’s efficiency in supporting investors and ensuring smooth project execution.

The establishment of IMFC reflects Malaysia’s commitment to streamlining investment processes, eliminating administrative complexities, and accelerating approval timelines, fostering a more supportive business environment.

Building on the success of TRACK and IMFC, MITI and MIDA pledge to enhance Malaysia’s investment implementation processes, offering comprehensive consultation and advisory services to ensure investors’ continued confidence in Malaysia.