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SBG
ECONOMY
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GLOBAL BEACON
transforming Malaysia into a sought-after investment destination, led by Minister YB Dato’ Sri Mustapa Bin Mohamed.
YB Dato’ Sri Mustapa Bin Mohamed
Minister of International Trade and Industry
The Ministry of International Trade and Industry (MITI) is an integral driver of Malaysia’s national Economic Transformation Plan and Vision 2020, which seek to make the country a preferred investment destination and among the most globally competitive trading nations by that year. MITI is led by Minister YB Dato’ Sri Mustapa Bin Mohamed, whosevisionandexperience—alongwith the support of other stakeholders— have been key assets in propelling Malaysia up the global business competitiveness ladder.
Tasked with helping the industry in Malaysia produce high-value-added goods and services and spurring the development of industrial activities, MITI is empowered “to plan, legislate and implement international trade and industrial policies that will ensure Malaysia’s rapid development”.
STRONG INVESTOR CONFIDENCE
It is testimony to MITI’s efforts that the latest ‘UNCTAD Global Investment Trends Monitor: Global And Regional Foreign Direct Investment (FDI) Trends in 2010’ report shows more than 400% increase in FDI inflow in Malaysia, which reached USD7 billion last year compared with USD1.4 billion in 2009.
the highest recorded in the region as well as among the 153 economies surveyed by UNCTAD,” says YB Dato’ Sri Mustapa Bin Mohamed, reacting to the development. He aptly points out that Malaysia’s progress is particularly
remarkable since UNCTAD noted that FDI inflows around the world witnessed relative inertia in 2010, with a marginal increase of only 1%.
of increasing investor confidence in Malaysia,” the minister comments, “[and it] demonstrates [their] belief that the Malaysian Government is able to deliver...[on its] reform programmes...”
A fine example of MITI’s success comes in the form of the growth in the manufacturing sector, which attracted investments of RM47.2 billion last year compared with RM32.6 billion in 2009.” Proactive measures to improve the government delivery system and reduce the cost of doing business as well as close collaboration with the private sector contributed to this investment growth in the country,” reflects the minister.
Improved delivery system and reduced costs have enhanced the investment environment in Malaysia.
PARTNERSHIP WITH THE GCC
A framework agreement—serving as a precursor to an FTA—with the GCC economies occupies a vital place in
with the Malaysian Government’s liberalisation moves, which have already resulted in relaxed Foreign Investment Committee guidelines, among other developments.
“GCC countries are a big market with strong purchasing power, hence
opportunities for cooperation are vast,” says the minister. To further business ties, the minister led a mission to Qatar and Saudi Arabia in December 2010. Notably, trade between Malaysia and Qatar increased more than twelve-fold to RM3.07 billion in 2009, and that between Malaysia and Saudi Arabia nearly doubled to RM6.8 billion in the same period.
International investors, including those from the GCC, will be particularly interested in Malaysia’s electrical and electronic industries, the Halal industry, the O&G hubs in Johor district, and in the green technology and solar sectors. Notably, two US-based companies, Twin Creeks Technologies Incorporated and Concrete Gold, have already invested RM1 billion and RM100 million, respectively, in Malaysia’s solar sector.
ROADMAP
In a bid to provide further impetus to investments, MITI has established an Investment Committee co-chaired by YB Dato’ Sri Mustapa Bin Mohamed and YB Senator Dato’ Sri Idris Jala, Minister in the Prime Minister’s Department and chief executive officer of Performance Management
committee will monitor, address and resolve cross-cutting investment- related issues in the country.
As a result of MITI’s initiatives, Malaysia is expected to cross the
minister exudes optimism as he says: “I am confident that for 2011 and beyond, FDI inflows into Malaysia will remain strong.”
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