Melaka, March 30 (Bernama) -- “There is no doubt that quality foreign direct investments (FDI) is important in terms of job creation, transfer of advanced technology, human capital development and growth of domestic companies. Nonetheless, domestic investors need to take on a more aggressive role in driving the country’s investment agenda to ensure Malaysia continues to enjoy sustainable economic growth in the future,” said YB Datuk Ahmad Maslan, Deputy Minister of International Trade and Investment (MITI) in his opening speech during the Southern Region Domestic Investment Seminar 2017 today at the Hatten Hotel, Melaka. The seminar was organised by the Malaysian Investment Development Authority (MIDA) and supported by MITI.

“The Government will continue to support the growth of domestic companies including the small and medium enterprises (SMEs), in increasing their competencies and capabilities through the available programmes and facilities. We hope to see more local players, especially the SMEs to emulate Germany’s Mittelstand or even the mid-sized companies in Japan and Korea, that have found much success in spearheading the economic growth in their respective countries,” added the YB Datuk Ahmad Maslan.

In 2016, MIDA has approved 733 manufacturing projects worth RM58.5 billion. Johor was the top recipient for these investments attracting a total of 165 manufacturing projects worth RM26.4 billion. Most of the investments were in the petroleum (including petrochemical), natural gas, and electrical and electronics (E&E) industries. These projects are expected to create more than 8,500 job opportunities for the locals. As a state with robust industrial development, Johor has attracted investments from many foreign sources including the United Kingdom with a total investment of RM2.4 billion, Netherlands (RM2.36 billon) and the Republic of Korea (RM2.08 billion).

Meanwhile for Melaka, a total of 23 manufacturing projects with investments worth RM1.35 billion were approved last year. More than 2,000 new job opportunities are expected to be created upon the implementation of these projects. The main industries include the E&E, transport, and machinery & equipment (M&E). Germany was the largest foreign investor in Melaka last year with a total investment of RM563.44 million. This is followed by Japan (RM62.01 million) and Australia (RM32.83 million).

In his speech, the Deputy Minister urged local industry players to shift towards the adoption of smart manufacturing processes. This call is in line with the wave of the Fourth Industrial Revolution or Industry 4.0 that is set to change the way things are made, involving high automation and technology to enhance productivity and competitiveness, and reduce dependence on low-skilled labour.

Towards this, local companies are encouraged to leverage on the available facilities by the Government such as the Domestic Investment Strategic Fund (DISF). As at December 2016, MIDA has approved RM1.01 billion of DISF grants for 242 projects worth RM11.6 billion, mainly in the E&E, transport, oil & gas services, machinery & advanced engineering and life sciences. These approved grants are to provide training, encourage R&D and technology acquisition by local companies; and enable them to obtain international standards/certifications in strategic industries.

From the total, 8 projects in Johor have been approved with DISF grants of RM23.4 million. These projects were in advanced fibre optics R&D and packaging technology, composite machining, structural parts & components for aerospace industry and oil & gas offshore facilities, and marine repair and conservation projects. As for Melaka, 17 projects were approved with DISF grants of RM63.6 million. These involved projects related to precision machined parts for the aerospace, machinery equipment and oil & gas industries as well as the manufacturing of factory automation equipment tools, and jigs & fixtures.

“Close collaboration and the strong industrial ecosystem in the south have enabled Melaka and Johor to be among the top ten recipients of approved investments in 2016. The Federal Government will continue to work closely with the State Government as it is important to build a conducive environment for businesses to flourish,” said YB Datuk Ahmad Maslan.

The one day seminar was well attended by more than 200 industry players from the southern region of Malaysia, namely Melaka and Johor. Also present were YB Datuk Haji Sulaiman Md. Ali, Deputy Exco for Industry of Melaka and YBhg. Datuk Phang Ah Tong, Deputy Chief Executive Officer of MIDA.

The seminar featured two plenary sessions with presentations from the Malaysia External Trade Development Corporation (MATRADE), SME Corporation, Halal Industry Development Corporation (HDC), SME Bank, Malaysian Industrial Development Finance Berhad (MIDF), and Export-Import Bank of Malaysia (Exim Bank). These sessions were moderated by representatives from the Malay Businessmen and Industrialists Association of Malaysia (PERDASAMA) and Federation of Malaysian Manufacturers (FMM).

SOURCE : Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT: 
Name : Mr Ahmad Tajudin Omar
Director, Domestic Investment Division, MIDA
Tel: 03-2267 3627
Fax: 03 2273 4207
Email: tajudin@mida.gov.my

--BERNAMA