PETALING JAYA: More government-linked investment companies (GLIC) should engage with domestic direct investment (DDI) projects to boost the country's economy, following the Finance Ministry's efforts to push DDI to strengthen Malaysia's resilience amid global uncertainties.
MCA vice-president Datuk Lawrence Low (pic), who is also the party's economic and small and medium enterprises affairs committee chairman, described the ministry's "Gear-Up" programme as timely since DDI is crucial for economic growth, innovation, and job creation.
"We urge more GLICs to promote DDI projects to stimulate the domestic economy, especially during the current economic downturn.
"Strong infrastructure development is crucial for implementing investment plans and attracting both domestic and international investors, supporting overall economic recovery and growth," Low said.
He noted that the government should focus on SMEs by providing necessary policy and financial support, and developing refined policies like tax incentives to spur investment in innovation and high-value sectors.
"This will create quality jobs and improve the economic structure," he added.
Low said while foreign direct investment (FDI) is important, DDI should be emphasised as a key driver of economic progress.
"By focusing on domestic investment, we can lower dependence on external factors, foster new economic models, and boost local business competitiveness," he stated.
The Gear-Up programme aims to synergise efforts across government-linked entities to catalyse growth in key economic sectors.
Low said the recent pledge by six major GLICs to jointly invest RM120bil in DDI over the next five years under the programme would see investments primarily directed towards high-growth high-value (HGHV) industries.
"These sectors include the energy transition sector, advanced manufacturing, especially in the semiconductor space, investments across all life cycles of firms from start-ups, venture capital to mid-tier companies, and finally to support the listing of such companies," he explained.
Low also mentioned that the MCA Economic and SMEs Affairs Committee had already discussed challenges related to SMEs with 12 local chambers of commerce and proposed policy recommendations to ensure they receive adequate support and financial aid.
"As the committee's chairman, I see DDI as essential to expanding economic autonomy and supporting small and micro enterprises.
"We hope the government will design more refined policies, such as tax incentives and financing conveniences, to encourage more businesses to invest in innovation and HGHV areas. This will not only create more high-quality job opportunities but also improve the overall economic structure and propel our economy to a higher level.
"The MCA Economic and SME Affairs Committee will continue to offer recommendations to support Malaysia's economic and business development," he concluded.
