Streamlining investment promotion agencies

Anwar said the government’s focus is directed towards returning investor confidence to catalyse economic growth and to provide job opportunities with better salaries for the people.

PETALING JAYA: The government will take steps to realise the Madani Economic narrative of establishing Malaysia as a globally competitive investment destination, says Prime Minister Datuk Seri Anwar Ibrahim.

By the end of 2023, the Investment, Trade and Industry Ministry (Miti) will take the lead in reducing duplication among investment promotion agencies (IPAs).

At the same time, it will strengthen the focus of hand-holding investors, both domestic and foreign, with a focus of translating approved investments into realised foreign and domestic direct investment, in an effort to streamline the IPAs.

The government will also actively issue Strategic Investor Pass (SIP) for investors to enter Malaysia on a multiple-entry basis.

He said through this facilitation, strategic investors identified by the Malaysian Investment Development Authority will be able to stay in the country for a minimum period of five years with a view to be extended for another five years.

As for addressing critical skill shortages, the government will extend the scope of Digital Nomad Professional Visit Pass to cover manufacturing-related skill sets.

“Through this pass, eligible professionals such as electrical and electronic integrated circuit designers can move to Malaysia and freelance for up to two years,” Anwar said at the Budget 2024 engagement session.

Anwar said the confidence in the government’s economic management was proven by ratings from three international credit rating agencies – Fitch, Moody’s and S&P Global Ratings – that have maintained a rating of A- with “stable” outlook on Malaysia.

He added that Malaysia’s economy saw a 5.6% increase in the first quarter of 2023, which was better than other regional countries, namely Indonesia, China and Vietnam with 5%, 4.5% and 3.3% growth, respectively.

“The country’s inflation rate continues to show a downward trend as a result of the government’s efforts to control the price of goods and maintain consumer subsidies,” he added.

He said the government’s focus is directed towards returning investor confidence to catalyse economic growth and to provide job opportunities with better salaries for the people.

“As of the first quarter of 2023, we witnessed investment approvals worth RM71.4bil, which was an increase of 60% compared to the same period last year.

“We also received investment commitments as a result of the trade and investment mission that has been implemented, including from Singapore with RM13bil, South Korea RM24bil, China RM170bil and Japan RM23bil,” he said.

Meanwhile, as at June 2023, Anwar said a total of RM188bil or 49% of Budget 2023 had been spent, which was an improvement from the RM170bil spent from Budget 2022 during the corresponding period.

“This is an improvement from the amount spent in 2022, but I still think it could be better. It is not quite satisfactory because we have to achieve 60% of the budget by August,” he said.

Anwar said to reach the goal, the government has implemented several measures including the decentralisation of power, setting aside additional allocations and providing flexibility in procurement procedures to expedite project implementation.

This includes the delegation of RM50mil projects to the Sabah and Sarawak technical departments, an allocation of RM100,000 to all district engineers for minor repairs at district level and a special allocation of RM200mil for Malaysian Armed Forces Engineering Corps.

Anwar said he will be announcing the allocation for the General Operations Force and the police housing programmes today.

The Prime Minister also said there will be an additional allocation for the implementation of small projects under local authorities amounting to RM100mil, which brings the total to RM400mil for 2023.

There will also be an increase in allocation for maintaining and repairing schools that will be under the Education Ministry by RM600mil, bringing the total to RM1.5bil this year.