KUALA LUMPUR, 2 DECEMBER 2024: Malaysia intends to leverage its Asean chairmanship in 2025 to position the region, and the country itself, as a vibrant hub for investment, trade and industry, particularly in helping to make global supply chains resilient.
To this end, it is effectively working on aligning itself with the region’s bigger vision of attracting the right investments into Southeast Asia, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said here on Monday. He said that Asean, which is “fiercely neutral and non-aligned, is in a truly sweet spot for attracting more investments, particularly in manufacturing.”
Manufacturing only comprised 22% cent in 2022 versus services which took up the lion’s share of almost 74% cent of investments into Asean, he said in his keynote address at the 5th World Association Presidents’ Conference here on Monday. He told participants at the conference entitled 'Invest in Malaysia: Expand Beyond' that Malaysia’s chairmanship will focus on upping investments in manufacturing, particularly on electric vehicles, semiconductors and the digital economy.
Tengku Zafrul also expressed optimism that Malaysia’s chairmanship in promoting cross-border investments such as with China and Middle East countries, will lead to transformative economic exchanges and innovations while driving substantial cross-regional economic growth and investments.
The theme for Malaysia’s upcoming chairmanship is “Inclusivity and Sustainability,” which “spells out Malaysia’s intention to guide Asean towards an equitable, sustainable and inclusive growth,” the minister said.
“As Asean advances its industrial goals, Malaysia’s contribution is in the form of its semiconductor capacity, which helps secure the global supply chain for this vital industry and which is recognised as the lifeblood of modern lifestyle, innovation and technological growth. This is why we came up with the National Semiconductor Strategy (NSS), which aims to strengthen Malaysia’s, and by extension, Asean’s position as a pivotal player in the global semiconductor landscape,” said Tengku Zafrul.
“Thanks to our clear policies, strong investment policies and rule of law, we have been recognised as an attractive destination for various investments such as semiconductors, medical devices and data centres,” he added. This has culminated in approved investments increasing by 18% for Malaysia as of June 2024, generating over 79,000 new jobs, he noted.
“This demonstrates Malaysia’s continued appeal to investors and resilience in the face of global economic uncertainty,” he said, adding that out of total foreign investments, 13% came from China.
“Moving forward, our vision is for both Asean and Malaysia to continue to attract global enterprises to invest in the abundant opportunities afforded by our diverse economies,” he said.
For Malaysia, at the heart of this pathway is the New Industrial Master Plan 2030 (NIMP 2030), a mission-based holistic industrial policy that aims to reform our industrial base from advancing economic complexity; to fostering digital vibrancy by integrating digital technologies across industries, and from pushing for Net Zero to safeguarding economic security and inclusivity, he said.
He said Asean’s senior economic officials were busy preparing for their upcoming meeting just two days away, on Dec 4-5 in Kota Kinabalu to finalise the Priority Economic Deliverables (or PEDs) that characterise the substantive targets for trade and investments in industry, to be achieved by the upcoming Chair or host country.
There would also be an Asean-Gulf Cooperation Council (GCC)-China Summit in May 2025, which is poised to be another landmark event on enhancing cross-regional investments, especially in sectors like semiconductors, electric vehicles, and renewable energy.
As Asean fosters stronger connections between Asia and the Middle East, “there are opportunities for all of us to help strengthen both regional and global supply chains through such multilateral dialogues.”
Malaysia’s agenda is to attract investments guided by policies such as the National Semiconductor Strategy, the New Energy Transition Roadmap, the Green Investment Strategy and its Circular Policy Framework for the Manufacturing Sector.
As chair, the minister said Malaysia will advocate for policies that promote social equity, financial accessibility, and inclusive participation in the Asean economic community.
“We aim to empower all segments of society, particularly women, youths and startups, ensuring that everyone has a chance to thrive and get a fair share of Asean’s prosperity.
Through the economic pillar, “our commitment to these goals are centred around four strategic thrusts, which are to enhance intra-Asean trade and investments, create an inclusive and sustainable future, promote the integration and connectivity of economies as well as build a digitally resilient Asean,” said Tengku Zafrul.
