The Ministry of Investment, Trade and Industry (MITI) through the Malaysian Investment Development Board (MIDA) continues to promote the growth of the national economy through efforts to attract quality investments for both foreign investment (FI) and domestic investment (DI).
MITI Minister Tengku Zafrul Abdul Aziz, at the Dewan Negara today (Apr 4), said among the specific strategies and initiatives implemented by the Government in balancing DI and FI are included through policy reforms as follows:
i. Emphasis on the importance of DI growth as outlined in the New Industrial Master Plan (NIMP) 2030. The relevant NIMP target is to expand the domestic network and improve economic inclusion. The 4th mission of NIMP which is to ensure economic security and inclusion aims to create an environment that can ensure supply chain security, support Micro Small and Medium Enterprises (PMKS) and promote equitable participation in economic activities in all states;
i. DI and FI are interdependent and complementary. Accordingly, MPN has also stipulated that DI be used as one of the Key Performance Indicators (KPI) to generate investment in the country;
iii. Organise visits to potential local companies throughout the state to discuss plans for new investment projects or company expansion. This effort can further increase DI in the country;
iv. Organising the ‘MIDA Invest Series Conference’ program which is to highlight the investment potential in each state. This will further help in further strengthening DI growth through the availability of up-to-date information on the state’s investment ecosystem landscape to investors;
v. Holding a Local Investment Seminar and ‘SME Investment Desk’ on the latest initiatives and facilities provided by the Government and providing advisory services to local companies, the majority of which are PMKS companies and also Industry Associations / Local Chambers of Commerce; and
vi. Provide tax incentives and grants reserved for local manufacturing companies, especially local PMKS, such as tax incentives to carry out products or activities encouraged under the Investment Promotion Act (PIA) 1986 for Small and Small Industries, Automation Capital Allowance, Industry4WRD Intervention Fund and Smart Automation Grant CIVIL
MITI and MIDA will also continue to propose attractive tax incentives through the annual Budget to help local companies to remain globally competitive. The initiatives that have been and are being implemented by the Government will always be improved according to the needs and feedback from all stakeholders and interested parties, Zafrul said in reply to a question from Dato’ Husain Awang who asked the Minister to state the government’s targeted plan in balancing the total value of foreign direct investment (FDI) and domestic direct investment (DDI) in this country for the next 5 to 10 years.
Proactive efforts in ensuring the balance of DI and FI growth in the country are carried out continuously, especially to stimulate sustainable and sustainable development, strengthen the domestic industrial ecosystem, and help local companies to be more resilient, the minister added.
