KUALA LUMPUR, Aug 4 — Malaysia is on the right track to realise the country’s efforts in attracting more high-impact investments, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He is confident the incentives and focus on key sectors are able to drive employment, household income and economic sustainability.
Five of the key target sectors are aerospace, chemicals, digital economy, electrical and electronics, and pharmaceuticals
He said Malaysia has maintained good diplomatic relationships with its major trading partners and main sources of foreign direct investment (FDI), subsequently ensuring the investors continue to express confidence in investing in the country.
He cited an example relating to the latest announcement of an additional investment of up to €5 billion (RM24.9 billion) by Infineon Technologies AG, which reflects investors’ confidence in the Madani Economy concept.
Infineon Technologies yesterday announced the expansion of its Kulim facility to build the world’s largest 200-millimetre silicon carbide (SiC) power fabrication plant, with an additional investment of up to €5 billion over the next five years.
The company said the investment could contribute an annual SiC revenue of about €7 billion by the end of the decade, together with the 200-millimetre SiC conversion in Villach, Austria, and Kulim, Kedah.
“If it is good on the government-to-government front … domestic and international investors will have confidence in the country’s ability,” he said when guesting on RTM’s Selamat Pagi Malaysia today.
Tengku Zafrul also said the ringgit is recovering.
“We can see local and international companies are investing more, and what’s important is that we can see the economic fundamentals strengthening in terms of employment, lower unemployment and inflation.
“It’s all about confidence, actually, I believe we can achieve the gross domestic product target of 4-5 per cent this year and this would strengthen the ringgit further,” he said.
He also stressed the importance of local players to complete the nation’s ecosystem through domestic direct investment to support the needs of foreign investors.
“FDI will not flow into Malaysia if local companies fail to provide supplies, for example, sufficient raw materials and services, as well as the required talent,” he said.
The New Industrial Master Plan 2030 (NIMP2030), which is expected to be launched later this month, will spearhead the resilience of small and medium enterprises, among others, via automation and innovation.
He said NIMP2030 is a comprehensive policy framework with clear strategies in the transformation of the industrial sector, and a special task force, to be headed by Prime Minister Datuk Seri Anwar Ibrahim, will be established to focus on the programme’s execution and success.
— Bernama
