KUALA LUMPUR: Malaysia is aiming to attract more quality foreign investments that will see more high-skilled labour being hired.
“With regard to investments that are going to other countries, we believe it depends on what that particular country’s advantage is, ” said InvestKL CEO Muhammad Azmi Zulkifli.
InvestKL is a government agency under the purview of the Ministry of International Trade and Industry (Miti).
According to its presentation pack, there were 10,411 jobs that were created from foreign investments from 2011 to 2020 which had an average salary of RM10,384, of which some 83% or 8,646 of people hired were Malaysians.
The inward foreign investments had created 14,111 highly-skilled regional jobs.
The jobs created in Malaysia contributed to more than RM173mil in estimated personal income taxes to the government over the nine-year period, the agency said.
InvestKL also said it realised incoming foreign investments totaling almost RM11.4bil from the 2011 to 2020.
Investments into Malaysia also contributed to spin-off effects on the broader economy with an increased usage of ancillary services such as professional services firms, hotels and exhibitions, real estate specialists, banking and finance and the logistics and supply chains.
InvestKL planned to attract at least 10 multinational companies (MNCs) to set up their base and operations in Malaysia with investments totaling a minimum of RM1bil in 2021.These would be focused on investments that can establish regional service hubs, that can then be a catalyst for high value, high tech and high impact sustainable projects, the government agency said.
It would also help move Malaysia up the supply value chain.
“This is our baseline target of RM1bil investments in Greater KL this year. But we will aspire to do better than this, ” Azmi said yesterday.
He said investments in this area that could soon be announced included those in the insurance industry with up to two separate investments in this category.
“They utilise a lot of big data analytics.
“We are also looking how they can oversee their activities with regard to how they oversee many of their installations across Asia from this centre.
“So, it is a lot of management as well as engineering.
“Probably another area is related to cloud computing as well as enterprise solutions. And for these, we are hoping to finalise them within this quarter and we are optimistic of meeting the RM1bil target for the year, ” he added.
InvestKL chairman Datuk Seri Michael Yam pointed out that Malaysia was doing alright in terms of attracting foreign investments.
“If you look at Malaysia as a trading nation, we are punching above our weight given our small country, population and small land mass. Yet as a trading nation, we are ranked in the teens when compared with the other countries, ” Yam said.
“This cannot be achieved by just sitting idly. The governments, both past and present, have realised that we need to value add and attract FDIs too, ” Yam added.
Yam said the common grouse among investors appeared to be stemming from the Covid-19 pandemic.
“It has been business unusual for the past 12 to 13 months. But I think the government, through Miti, will make it easier and attractive for more FDIs to come in and there is competition in the Asean region and beyond for FDIs, ” Yam said.
Meanwhile, Azmi also said that the government was focused on the green and sustainability agenda with incoming investments.
“There are probably investments (on the table) that we will discuss but cannot yet be disclosed, ” Azmi said.
“For example there have been announcements on the solar parks which have been officiated or formalised by the government. Also floating LNG initiatives which can be an alternative energy source for the country as it moves away from traditional power sources, ” he added.