Malaysia can attract more investors as more supply chains shift in Asia - Tengku Zafrul

KUALA LUMPUR: Malaysia has huge potential to attract more investors to the country if it takes advantage of the shift in supply chains in Asia as multinational companies diversify their production hubs in the region.

Investment Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz noted that various multinationals are now trying to shorten their value chains and diversify regional production sources as they build supply chain resilience.

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Citing a study by the United Nations Industrial Development Organization (UNIDO), he said a finding has shown that post-pandemic, the re-shoring of manufacturing hubs that are increasingly shifting within the Asian region seems to be a long-term trend.

"Coupled with China's structural transformation towards a knowledge-driven, high-income economy, all these will significantly restructure key trade flows and global value chains (GVCs),” he said.

Tengku Zafrul said this in his speech at the Global Halal Summit 2023 (GHaS 2023) opening ceremony in conjunction with the Malaysia International Halal Showcase (MIHAS) 2023 here today.

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He said in alignment with the 12th Malaysia Plan, the Ministry of Investment Trade and Industry (Miti) will continue to drive the halal industry based on two key masterplans - the Halal Industry Master Plan 2030 (HIMP 2030) and the New Industrial Master Plan 2030 (NIMP 2030). The HIMP 2030 aims to promote the growth of a high-quality, innovative and competitive halal industry.

Apart from developing local companies’ competitiveness, it also aims to build talent, strengthen standards, accreditation and certification services, narrow the gap in access to Islamic financial support and ensure the safety and integrity of the halal business through a robust logistics ecosystem. "In short, it is driving a more sustainable, balanced, and inclusive socio-economic development,” he added.

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Both HIMP 2030 and NIMP 2030 are complementary to one another.

Through the NIMP 2030 missions, Miti will strive to enhance the embrace of technology and ESG/sustainability principles to build economic complexity and the competitiveness of the halal industry.

"The transformation of the industry is important, among other things, to enhance productivity and the wages of workers. Further, with the increase in product complexity, our export sector will become more resilient to demand or supply shocks in the global market,” said Tengku Zafrul.

In terms of human capital development, the Halal Development Corporation Bhd (HDC) provides various training programmes that are regularly updated, in alignment with industry demands and current market changes.

This, he said, ensures that the workforce possesses comprehensive knowledge in the halal field. This is paramount in driving the growth of the halal industry and the national economy.

"To that end, this year's GHaS features a halal professional seminar in line with the HIMP 2030 agenda, which aims to create 700,000 job opportunities,” he added.

In 2022, Malaysia's halal exports almost touched RM60 billion (RM59.46 billion), which was a jump of 64 per cent compared to 2021. The food and beverages product category was the largest contributor to halal exports, with a growth of 58 per cent.

Despite global economic challenges, this growth clearly highlights the resilience of the halal industry in contributing to the country's economic growth, the minister said. - Bernama