In early April, the Malaysian government will reveal the total realised investments stemming from the unprecedented RM329.5 billion in potential foreign investments announced last year.
“The numbers are being finalised on how much of the RM329.5 billion have been realised. We will announce this in the first week of April.” Investment, Trade and Industry (Miti) Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said.
This disclosure aligns with the government’s commitment to transparency, as stated by Tengku Zafrul recently.
Speaking at the Concorde Club meeting held at Wisma Bernama, Tengku Zafrul emphasised the significance of tracking the progress towards realising potential and approved foreign investments into Malaysia.
Unlike annual reports, monthly updates will now be provided, offering more timely and transparent insights into the investment landscape.
Tengku Zafrul stressed the importance of execution, urging all agencies, including states and local councils, to expedite processes to facilitate these investments. He also emphasised the government’s commitment to eliminating unnecessary obstacles faced by investors.
“As for the monthly tracking, it is to make it as transparent as possible so the people are aware where these investments are going to.” he added.
Highlighting the robustness of Malaysia’s investment climate, Tengku Zafrul noted that approved investments reached RM329.5 billion in the previous year, a substantial increase from RM264.6 billion recorded in 2022.
He attributed this growth partly to positive inflows resulting from trade tensions between China and the US, noting Malaysia’s strengths in the digital and green economy sectors.
Looking ahead, Tengku Zafrul expressed the government’s eagerness to encourage local companies to invest in areas such as semiconductors and data centers, leveraging Malaysia’s expertise in these fields.
Additionally, he emphasised the ministry’s commitment to facilitating more joint ventures with Chinese companies, with plans to showcase opportunities at the upcoming Malaysia-China Summit 2024 (MCS 2024) in December, coinciding with the 50th anniversary of diplomatic relations between the two countries.
Semiconductor Industry Offers Lucrative Opportunities For Malaysian Companies
Tengku Zafrul said more Malaysian companies should consider investing in the semiconductor industry and make the leap to position themselves in the front-end of the global semiconductor ecosystem.
Although Malaysia is a prominent player in the global semiconductor sector for over 50 years now, there is still room for improvement. “We have been a major player in the last 50 years and we now want to move up that value chain from back end to front end, but at the same time we also want more Malaysian companies to participate in the development of this ecosystem,” he said.
Malaysia has strengths in both the digital and green economies. While Malaysian companies play a big role in renewable energy, there is the need for improvement in the digital economy, namely in data centres.
“I think we should encourage more Malaysian companies to invest in this sector as well and MITI is actually engaging with local companies, investors, especially the government-linked investment companies, to see how they can participate as well,” he added.
Tengku Zafrul said MITI is working on institutionalising the process and invite local businesses to invest in the sector. He pointed out that Malaysia has seen favourable flows of capital and investments as a result of trade tensions between two superpowers, the United States and China.
It was reported that Malaysia has emerged as a surprising victor in the global semiconductor business during the current trade war between the US and China. Manufacturers in Malaysia are harnessing the chance to upscale their operations and extend their global market footprint as rival manufacturers from the two global powerhouses face constraints.
