Azmin: RM81.9bil investments approved in manufacturing sector till August

KUALA LUMPUR: The country has approved RM81.9bil worth of investments in the manufacturing sector up to August this year, says Senior Minister (International Trade and Industry) Datuk Seri Mohamed Azmin Ali.

According to Azmin, this was an increase of 32.7% compared to the same period last year.

At the same time, Azmin said, Malaysia recorded a total of RM107.5bil in investments in the manufacturing, services and primary sectors from January to June this year, involving 2,110 projects that are expected to create 44,994 job opportunities.

Azmin also said approved foreign direct investments (FDI) for January to June surged critically by 214.9% to RM62.5bil, compared to the same period last year which saw RM19.8bil in FDI.

"The value of investment in Sabah is RM4.5bil, while Sarawak recorded an investment value of RM1.5bil," he said in his winding up speech on the 12th Malaysian Plan (12MP) in Parliament on Tuesday (Oct 5).

Azmin said 12MP emphasised efforts to strengthen economic fundamentals through an investment policy that was open, transparent, consistent and business-friendly.

"Factors affecting investments are not only confined to fiscal incentives, but also cover regulatory frameworks such as licensing and business facilitation," he added.

Meanwhile, Azmin said the World Competitiveness Yearbook 2021 published in June had placed Malaysia 25th among 64 economies in the world.

He noted that this was an improvement from last year, when the country ranked 27th.

"The improvement of two places is due to the increase in Business Efficiency and International Investments indicators," he added.

Elaborating, Azmin said among the efforts to ensure business efficiency was the Express Construction Permit (E10) initiative by the Malaysia Productivity Corporation (MPC).

Azmin explained that the E10 initiative shortened the process of issuing approvals for operating permits and the setting up of new factories.

"As an example, a factory in Kulim, Kedah, with an investment of RM280mil, was able to be completed and begin operations in 10 months, compared to the 24 months (for a comparable project) taken previously," he said.

At present, Azmin said, three factories with an investment value of RM14.3bil are using the E10 initiative to expedite the setting up of their factories and commencement of operations.

"This initiative has saved RM9mil in compliance costs for each factory, helps faster revenue generation among business owners, creates new job opportunities for locals and supports the growth of the local economy," he said.

Azmin added that the E10 initiative will be expanded to other states including Sabah and Sarawak as a strategy to stimulate productivity and attract domestic and foreign investment.

"Its success is the result of good cooperation between the Federal Government, state governments and local authorities," he said.