Kuala Lumpur (1 November 2021) : The proposed Budget 2022 will create a vibrant ecosystem for multinationals (MNCs) and fast-growing companies to thrive in by creating globally competitive Malaysian small and medium-sized enterprises (SMEs) through various incentives for automation, research and development (R&D) and upskilling, InvestKL says.

The Budget 2022 has a significant focus on rebuilding and restoring the SMEs in the post-pandemic recovery phase next year and propelling them toward developing the capacity that meets the future needs of industry. There are also allocations to retrain the workforce to support these companies.

A flourishing local ecosystem is crucial for any global MNCs in their decisions to make Malaysia or Greater Kuala Lumpur (Greater KL) a regional base as such conducive environment and supply chains will be needed to support their operations. In turn, having more global companies in Malaysia will raise the exposure and competitiveness of our local workers, which is positive for the long-term growth of our economy.

InvestKL Chief Executive Officer, Muhammad Azmi Zulkifli said Budget 2022 is a good programme to revitalise the economy as it is both comprehensive and inclusive. It is a budget aimed at rebuilding the nation after a disruptive pandemic with the well-being of Malaysians in mind. The spending plan also seeks to jumpstart the economy and kickstart investments by providing incentives to new economic sectors that we want to promote to align with the country’s long-term direction, while retraining the labor force accordingly to support the industry’s needs to move up the value chain.

“Also, very important — the budget emphasis on digitalisation, Industry4WRD and Environmental, Social and Governance (ESG) stays true to the Shared Prosperity Vision 2030 principles to build Malaysia as a nation that achieves sustainable growth,” he adds.

The RM332.1 billion Budget 2022 is the largest ever Malaysian Budget, but the Government is also demonstrating its prudence by reducing the projected fiscal deficit to 6% of Gross Domestic Product in 2022, from 6.5% in 2021.

InvestKL will support the Government’s efforts through the Greater Kuala Lumpur (GKL) Live Lab, an initiative that aims at attracting global companies to collaborate with local players to elevate GKL’s competitive advantages for quality, innovation-led and knowledge-intensive activities. Launched in April, GKL Live Lab has since secured five companies under the programme, achieving its 2021 target ahead of schedule. In addition, Fit4Work is another initiative under InvestKL which trains young Malaysian graduates to help raise their level of competitiveness.

“Overall, our role of ensuring that MNCs in Greater KL continue to thrive and expand their activities and our focus on attracting more high-quality investments is well completed by the initiatives set in Budget 2022. We are well on track to secure RM20 billion in new foreign investments over the next 10 years by 2030” Azmi says.