Investment incentives help build industrial ecosystem 


Mida chairman Tengku Zafrul Abdul Aziz.

KUALA LUMPUR: The investment incentives offered by the government to foreign companies should not be seen as “paying companies to come”, but rather as a strategy to develop an industrial ecosystem, build local talent, and strengthen Malaysia’s technological capabilities.

Malaysian Investment Development Authority chairman Tengku Datuk Seri Zafrul Abdul Aziz said the country seeks investments that have a significant impact on the rakyat and the economy.

“So, avoid narrowing the discussion to incentives equal to paying companies to come (to Malaysia). The real question is whether the incentives provide an appropriate return to Malaysia.

“That is why we have the New Incentive Framework so that incentives are not given in vain but are tied to outcomes,” he said in a video on his official Facebook page.

He said a very good example is SkyeChip Bhd, a Malaysian company involved in intellectual property and integrated circuit design for artificial intelligence and high-performance manufacturing.

“In simple terms, the company is involved in chip design work, which is a high-value segment of the semiconductor industry, not just assembly.” — Bernama

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