InvestKL attracted 64 MNCs & RM8.9 billion in investments since 2011

Achieved 64% target, on track to secure 100 MNCs by 2020

PUTRAJAYA, 1 March 2017 - InvestKL has successfully attracted 64 MNCs with approved and committed investments of RM8.9 billion, as well as creation of more than 9,300 regional high-skilled jobs since 2011.

These included the 13 MNCs which InvestKL secured in 2016, with RM3 billion in approved and committed investments, and creation of 1,863 regional jobs. The MNCs are from Europe (five), Asia-Pacific and Gulf regions (five), and the U.S. (three).

In just six years from 2011-2016, RM3.2 billion or 36% of the RM8.9 billion investments have been realised. In addition, 5,233 or 56% of the 9,335 high-skilled regional jobs are already on the payroll. Of these, 4,318 or 83% employed are Malaysians with an average annual income of RM114,000 or USD26,000 based on the exchange rate on 15th February 2017. (Please refer to tables in appendix A).

Chief Executive Officer, Datuk Zainal Amanshah said, “Despite the global challenges, InvestKL has achieved 64% of our 2020 target to attract 100 MNCs to set up regional establishments in Greater KL. These high value and high skilled investments by some of the world’s most valuable brands continue to have a multiplier effect on the local economy.

" Today, Kuala Lumpur is home to global corporations such as U.S-headquartered Oracle and Honeywell; top French e-payment services company, Worldline; Germany’s hidden champion and industrial technology provider, Voith; as well as Japan’s leading creative content publisher and distributor, Kadokawa. "

He also said, “These MNCs are actively collaborating with local companies; developing value added services for domestic and export markets; creating high paying regional jobs and transferring skills to Malaysians.

“In addition, these corporations are contributing to the growth of the local real estate market as well as to the hospitality, education, medical, tourism, and entertainment industries.”

To date, the investments are from Europe (44%), Americas (31%) and Asia Pacific (25%). The focus areas include high-value business services, information & communications technology, oil & gas, as well as engineering & construction.

For 2017, InvestKL’s target is to attract 10 MNCs, Zainal told the media during the annual briefing to provide an update on the corporation’s performance.

“The year brings new challenges. We see unprecedented global events and economic volatility but despite this, we will strive to achieve our target. KL is rich with enticing factors such as a central geographical location, skilled workforce, a strong cost proposition, as well as game changing infrastructure projects such as the MRT, and the High Speed Rail.

“In addition, ASEAN remains a growth story, and there are many opportunities for MNCs to optimise by choosing KL,” he added.

According to the Asia Business Outlook Survey 2016 by the Economist Corporate Network, Asia-based executives are most optimistic about ASEAN for revenue growth. Eight in 10, or 80.2% Asia-based executives have said that they see Southeast Asia headed for higher sales for their companies in 2017.

Zainal also said, “We are buoyed by the confidence expressed in Southeast Asia’s growth, and will continue to enhance KL’s business ecosystem by working closely with key stakeholders.

“Our key stakeholders include the Federal Territories Ministry, Ministry of International Trade and Industry, KL City Hall, Malaysian Investment Development Authority, Malaysia Digital Economy Corporation, Immigration, Customs departments and other investment promotion agencies.”

Following the briefing, Minister of International Trade and Industry, Dato' Sri Mustapa Mohamed; Minister II International Trade and Industry, Datuk Seri Ong Ka Chuan; and CEO of PEMANDU, Dato' Sri Idris Jala presented mementos of appreciation to MNCs which invested in Kuala Lumpur in 2016.

Among the 13 MNCs who have established regional centres in KL are Switerland’s Novartis (global service centre); U.S.’s Oracle (Inside sales & business development hub for Asia Pacific) and Oceaneering International (regional head office for Asia Pacific); German-headquartered Voith (ASEAN regional centre and centre of competence); Spanish-based Technicas Reunidas (regional hub for Asia Pacific) and China’s Amer International Group (commodity trading hub).

Appendix A

Table 1
2011-2016 : Investments

Total investments

RM8.9 billion

RM3.2 billion or 36%

Table 2
2011-2016 : High-skilled regional jobs created

Jobs created

On the payroll (Hired)

Msians employed

Average annual income

9,335

5,233 or 56%

83% or 4,318 (of those on the payroll)

RM114,000*

* (USD26,000 based on exchange rate on 15th February 2017).