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SBG
ECONOMY
THE ROAD AHEAD
By promoting foreign investments in Malaysia, the Malaysian Investment Development Authority (MIDA) is making the country globally competitive for investors.
Y. Bhg. Datuk Jalilah Baba
Director General and CEO, MIDA
“Since its inception in 1967, the Malaysian Investment Development Authority (MIDA) has gone through a sea change. From the humble beginning of an organisation with merely 37 staff members responsible for the development of the manufacturing sector in Malaysia, MIDA has blossomed into a dynamic organisation of about 800 staff members and 12 state and 2 overseas offices in capital-exporting countries. Its current role is to promote investments in the manufacturing and services sectors and thus plays a crucial role in the economic development of Malaysia. MIDA has been empowered by the Government of Malaysia with the authority to negotiate directly with investors for targeting quality investments in new growth areas and emerging technologies,” says MIDA Director General and CEO, Y. Bhg.
Datuk Jalilah Baba.
In line with its vision to achieve
the status of a developed nation, where the services sector is expected to be the main engine of growth followed by the manufacturing sector, the Malaysian government recognised the urgent need to reassess the role and functions of MIDA. Against this backdrop, the new MIDA will act as the central agency responsible for co-ordinating and streamlining approvals for various agencies. It will be the final and sole decision- making committee on investments covering manufacturing and services sectors (excluding the utilities and financial services).
THE WORLD ECONOMY AND MALAYSIA
2008 were felt by the export-oriented economies, including Malaysia. Despite this, there was continued interest by investors in capital- intensive and skills- and knowledge- based industries. Malaysia did not retreat into protectionism to shield its economy, but embarked on a series of bold measures to liberalise the economy and replenish its funds by implementing a myriad reforms such as the Government Transformation Programme (GTP) and New Economic
which was launched in March 2010, calls for several action plans to raise the role of the private sector and to make Malaysia globally competitive for
to boost private investments through improving the business environment and recalibrating the roles of the public and private sectors, giving greater prominence to private companies.
To combat the economic adversities at the international level, Malaysia strengthened its economic ties with its traditional trade partners and forged new relationships with emerging economies of the world. With the implementation of ASEAN-India Trade in Goods Agreement, ASEAN- Australia-New Zealand FTA and Malaysia-New Zealand FTA in 2010, market access for Malaysian products and services is expected to be further enhanced in the international market.
exchange administration rules support and facilitate investments in the economy by non-residents.
measures to expand trade and to raise the level of private investment in the country by improving the domestic business climate and promoting the development of dynamic and innovative entrepreneurs.
FUTURE PROJECTS
“Bank Negara has predicted a growth of 6% in the Malaysian economy in 2010, due to the strengthening of domestic demand and an improvement in the external environment. Growth is expected to be driven by an upsurge of activity in the private sector and robust external demand from the regional
expected to record a positive growth as demand for major products recovers,” says MIDA Director General and CEO, Y. Bhg. Datuk Jalilah Baba.
the 10th Malaysia Plan has targeted a growth in private investments at 12.8% per annum—the manufacturing and services sector assuming a key
to grow at 5.7% and 7.2% respectively
identified 12 national key economic areas that have the potential to generate higher income and larger investments, namely oil and gas; palm oil and related products; financial services; wholesale and retail; tourism; information
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