Five key target sectors that are given emphasis are aerospace, chemicals/petrochemicals, the digital economy, electrical and electronics, and pharmaceuticals.

He also said Malaysia had always maintain the good diplomatic relationships with its major trading partners and main sources of foreign direct investment (FDI), subsequently ensuring that investors continue to express confidence in investing in the country.

He cited an example relating to the latest announcement of an additional investment of up to €5 billion (RM24.90 billion) by Infineon Technologies AG, which reflected investors’ confidence in the Madani Economy concept.

Infineon Technologies on Thursday (Aug 3) announced the expansion of its Kulim facility to build the world’s largest 200-millimetre silicon carbide (SiC) power fabrication plant, with an additional investment of up to €5 billion over the next five years.

According to the company, the investment will potentially contribute an annual SiC revenue of about €7 billion by the end of the decade, together with the 200-millimetre SiC conversion in Villach, Austria, and Kulim, Kedah.

“If the government-to-government level is good, it doesn’t matter, domestic or international investors will have confidence in the country’s ability,” he said when appearing as a guest on the Selamat Pagi Malaysia programme on Radio Televisyen Malaysia on Friday.

On the back of the confidence, Tengku Zafrul said the country had also seen a recovery in the ringgit’s performance.

“We can see that local and international companies are investing more and, at the same time, what’s important is that we can see the economic fundamentals are strengthening in terms of employment, as well as lower unemployment and inflation.

“It’s all about confidence, actually. I believe we can achieve the gross domestic product target of 4.0% to 5.0% this year, and this would strengthen the ringgit further,” he said.

Nevertheless, he also stressed the importance of local players to complete the nation’s ecosystem through domestic direct investment to support the need of foreign investors.

“FDI will not flow into Malaysia if local companies fail to provide supplies, for example, sufficient raw materials and services as well as the required talent,” he said.

Hence, he said the New Industrial Master Plan 2030 (NIMP2030), which is expected to be launched later this month, will spearhead the resilience of small and medium enterprises, among others, via automation and innovation.

He added that NIMP2030 is a comprehensive policy framework, with clear strategies in the transformation of Malaysia’s industrial sector, and a special task force, to be headed by Prime Minister Datuk Seri Anwar Ibrahim, will be established to focus on its implementation and success.