PETALING JAYA: Amid mounting criticism on the exit of foreign investments out of Malaysia, the government has approved the National Investment Aspirations (NIA) framework to attract high-quality investments into the country and create high-income jobs.
The framework, which has five core parameters, will also serve as a guide in introducing more targeted and effective investment promotion and facilitation strategies to attract quality investments.
The NIA mandates the establishment of a National Investment Council to be chaired by the Prime Minister.
The council, which will formulate overarching investment policies and provide resolutions for key implementation issues, will include relevant ministries and agencies, as well as government-linked companies (GLCs) and government-linked investment companies (GLICs), led by Khazanah Nasional Bhd.
Membership may also be extended to other relevant stakeholders.
The International Trade and Industry Ministry (Miti) said that investment policy reforms will be rooted in the NIA, which in turn will be guided by the “essence of the Shared Prosperity Vision 2030”.
“The NIA is a product of comprehensive stakeholder consultations and has taken into account views and feedback from ministries and agencies, GLCs and GLICs, the private sector, as well as research organisations and think tanks, ” the ministry said in a statement yesterday.
Meanwhile, Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali pointed out that the NIA will be central in the efforts to revitalise Malaysia’s investment climate.
Going forward, Azmin said Malaysia must adopt a comprehensive approach to reinvigorate the investment ecosystem and respond adequately to emerging megatrends as well as the evolving needs of investors.
The country needs to continuously enhance its unique value propositions, which span across a wide array of elements such as incentives, facilitation, talent, infrastructure, as well as legal, regulatory, procedural and institutional mechanisms.
“In order to enable further diversification and ventures into more complex industries, emphasis should also be accorded towards fostering a robust and dynamic tax and incentives regime, building our talent pool in close collaboration with the relevant industries, improving our licensing and regulatory frameworks and augmenting the facilitation elements such as customs procedures”, according to Azmin.
The NIA would focus on inclusivity and sustainability that is compatible with the environmental, social and governance (ESG) goals, as new investments that are anchored upon these elements will propel growth in the technologically-sophisticated sectors, as well as strengthen forward and backward linkages.
“This will also provide a pathway for investors to access new market opportunities, particularly in developed countries that have mainstream sustainability throughout their value chain.
“In this context, the NIA takes into account the global interest surrounding carbon-neutrality, including the use of technology to help reduce carbon foot-print, ” stated Miti.