The Ministry of International Trade and Industry (MITI) has identified five key pillars under the National Investment Aspirations (NIA) initiative to attract greater global investment and accelerate the nation’s growth.
At the launch of the “New Investment Policy Based on National Investment Aspirations” event on Oct 6, Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said: “The New Investment Policy (NIP) builds on our robust foundations, strong domestic ecosystem and welcoming investment landscape. Malaysia’s strategic regional positioning, strong domestic linkages, world-class infrastructure, diverse industries and talented workforce positions the nation as a global investment destination.”
The development of the New Investment Policy, which began based on a cabinet decision in 2021, is critical in ensuring Malaysia remains a competitive destination for high-value investments which can deliver sustainable and holistic economic growth, said Azmin.
By anchoring on a clear set of national priorities such as the National Investment Aspirations (NIA), the New Investment Policy ensures key changes are implemented to strengthen Malaysia’s foundations to develop new and existing high-value growth ecosystems, whilst ensuring future policies and investments are targeted at delivering maximum mutual value to investors and the nation alike.
The NIA is defined to reinvigorate Malaysia’s investment landscape based on 5 key pillars:
Increase Economic Complexity
A key priority within the National Investment Aspirations is enhancing local productive capabilities – enabling the nation to create an increasingly diverse range of differentiated high-value products and services.
As rapid digitisation and automation, driven by Industry 4.0 and accelerated by COVID, continues to shift the global economy away from labour-intensive industries, the importance of specialised capabilities and the capacity to manufacture complex products and services serves as a foundation to ensure long-term national competitiveness.
Recognising this, Malaysia is committed to strengthening our foundations, leveraging on the principles of the 11th Malaysia Plan to uplift our economic complexity. To achieve this, MITI will:
- Foster enhanced local research, development, commercialisation and innovation capabilities and spur greater innovation; and
- Support the transition of industries higher up the value chain to produce more differentiated and higher value products.
Create high-value job opportunities
In recent years, Malaysia has made significant progress towards achieving high-income status. With an increasingly diversified economy, driven by extensive global trade integration, Malaysia’s labour force is increasingly shifting towards manufacturing and service sectors, with a substantial uplift in productivity and workforce capability.
As Malaysia continues to shape an environment which accelerates new advanced growth sectors, a key focus will be in empowering the workforce with strengthened capabilities, subsequently enabling the nation to capture greater high-value job opportunities.
Extend domestic linkages
Increase breadth and depth of Malaysia’s supply chain by empowering local players with capabilities and opportunities to better internationalise and participate in global value chains.
Develop new and existing clusters
Accelerate formation of new clusters consisting of high-growth industries whilst developing existing clusters to enhance productivity, value-add and economic spill over.
Improve inclusivity
Protecting and enhancing the livelihoods of Malaysians remain at the core of the National Investment Aspirations.
Fundamentally, it is about driving the equitable economic development needed to unlock Malaysia’s full growth potential. It involves taking strong and accountable public action to dismantle barriers and to expand opportunities for the wider population – particularly in ensuring equal job opportunities, access to education and healthcare.
Building strong national foundations through human capital investments will be essential in driving the economic productivity needed to accelerate Malaysia’s transition into a high-income nation.
