Pandemic Hit Selangor Expects FDI To Drop By 30 Percent This Year

Selangor has been one of the worse hit states in terms of Covid-19 cases, to date a total of 300,000 cases have been reported with numbers refusing to come down. With 85% of industries in a state of semi or full coma, its very like the overall economic impact will also be severely felt. The ongoing lockdown has prompted the Menteri Besar to revise the State’s projected Foreign Direct Investment to a much lower figure.

After recording a stellar peak in investment for the past three years with between RM17 billion to RM18 billion, Selangor is targeting an estimated 30% drop for this year to between RM12 billion and RM13 billion, mainly attributing to Covid 19.

However, Selangor Menteri Besar Dato’ Seri Amirudin Shari is upbeat with how the State has performed thus far recording an FDI value of about RM9 billion despite the more challenging economic situation now than that of the previous year.

“Our target of RM12 billion to RM13 billion is not too ambitious due to the increasing Covid-19 cases again this year.” The impact in Selangor will also be felt at the Federal level, being the most economically progressive and one of the largest tax collectors for the Government coffer, contribution will be reduced from this State.

Only 20 to 30 per cent of operations are currently allowed to function and this has left the Menteri Besar with very little avenue to expand the target. Looking at the bright side, Amirudin said following the implementation of Operation Surge Capacity to ensure that the adult population in Kuala Lumpur and Selangor receive at least one dose of Covid-19 vaccine by August 1, he expects the state’s economic landscape to gradually recover.

“We don’t want to be too ambitious but I think by the end of August or the beginning of September the economic landscape will improve in Selangor,” he said.

Selangor is also making efforts to assist businesses impacted by the prolonged lockdown through the implementation of the Selangor Advance initiative under the Kita Selangor 2.0 Package, the programme has so far benefitted more than 300 companies involving 50,000 employees.

Previous articleGovernment Makes SOP Tweaks For Industries In Phase One And Two
Next articleHSBC Wins Coveted Award For ‘Best Bank for Sustainable Finance’ In Asia


Please enter your comment!
Please enter your name here