STEADY INCREASE IN FOREIGN DIRECT INVESTMENT
Malaysian Prime Minister Anwar Ibrahim has also been on a beauty rude, travelling abroad to woo high-tech opportunities.
In March, he delivered a presentation handle at the annual SME Future Day 2024 in Berlin, where he gave an open invitation to European companies, as well as businesses across Europe, to invest in Malaysia.
“We are of training at your service, we may employ. When you need ( the ) China market, then you need an important base in Malaysia, ” Mr Anwar said during the event.
Since 2021, the country has seen a steady increase in foreign direct investment ( FDI) in the tech sector, with both Intel and fellow chip tycoon Infineon Technologies investing US$ 7 billion in projects that go beyond packaging, assembly, and testing.
Hungarian software giant AT& While American intel Nvidia and native conglomerate YTL are working together to create a multi-billion money artificial intelligence fog and supercomputer infrastructure in Malaysia, S produces high-end circuit boards.
NOT ENOUGH TO PROVIDE Income Bonuses
Given the fierce competition from neighboring Indonesia and Vietnam, Malaysia don’t simply implement tax incentives as it moves up the value network. Additionally, it is said to be dealing with restrictions in its native supply chains.
Former deputy minister of global trade and industry for Malaysia, Mr. Ong Kian Ming, said some businesses are struggling to find the right kind of competent and human resource to integrate into the habitat with higher value-added production or solutions.
We’ve seen instances of Taiwanese companies entering Malaysia in the past that do not totally connect with the regional supply chain, he noted.
“ What this means is that the local SMEs ( small- and medium-size enterprises ) in Malaysia and other companies, they are not able to benefit from the FDI coming into Malaysia. ”
The Indonesian government is also looking beyond its borders for opportunities to network with Indonesian businesses and investors, particularly government-linked purchase firms.
Mr Tengku Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade and Industry, said the state is “institutionalising the procedure where we ask local businesses to also have a interest in the game”.
He most recently disclosed that the government is developing a proper semiconductor strategy to update existing laws and opportunity packages in order to stay competitive in the sector.