Technology advancements have highlighted the urgency to enhance Malaysia’s competitiveness and spur local and foreign direct investments in key sectors. The initiatives announced in Budget Speech 2023 can support continued economic growth, especially in high-impact growth areas such as electrical and electronics (“E&E”) and digital economy industries.
Malaysia’s exports of E&E products were valued at RM455.7 billion in 2021, accounting for 42.7 percent of all manufactured goods exported. With E&E being a key to Malaysia’s exports, this in turn, will leap forward the country’s exports of semiconductor products, and strengthen Malaysia’s position as a global semiconductor hub in the region.
Incentives that can help generate growth and expansion for small and medium enterprises (“SMEs”) – such as funds for SMEs for digitalisation and automation, investment in locally-owned and high-tech companies, and relevant grants and tax incentives – are important as SMEs represent key segments of the sector’s supply chain.
In addition, incentives to push for overall digitalisation can promote the adoption of digital technology amongst SMEs, private and public sectors and lead to a rise in innovation, enhanced productivity and services improvement.
DNeX will continue to explore opportunities with our global strategic partners to facilitate impactful investments and skilled technology transfer to drive Malaysia’s economic growth in high-value areas such as digitalisation, cloud computing, and the Fourth Industrial Revolution (“4IR”).
Focus on Sustainability in the Budget Speech 2023 is undoubtedly the right direction in outlining the Government’s further commitment in matters pertaining to Environment, Social and Governance (“ESG”). At DNeX, we are progressing to improve our Sustainability initiatives across the ESG components. Businesses need to have a long-term perspective to create the right conditions to sustain business success for current and future stakeholders. DNeX understands this and hence has recently developed a Sustainability Framework and is working towards positioning this as a strategic component of its business.