MITI minister urges investors to fully tap economic potentials of Perak

"While the uncertainties in the global economy may be worrying, the situation is such that new opportunities are concurrently being created for investors savvy enough to spot them. That's why MITI and its agencies are stepping up our efforts to keep investors fully informed on what Malaysia can offer" he said.

Mustapa was speaking at a Roundtable Meeting with industry players in Perak, jointly-organised by MITI and the Malaysian Investment Development Authority (MIDA). Also present was Datuk N. Rajendran, Deputy Chief Executive Officer of MIDA.

“Regular engagements such as the one today are one of the channels in our outreach effort. The Government is very aware of the importance of nurturing the public-private partnership that has enabled our economy to maintain an impressive growth trajectory," the Minister said.

"There are many new opportunities in states such as Perak that investors should be made aware of. ”

As at 2014, a total of 1,161 manufacturing projects have been implemented in Perak with investments valued at RM25.7 billion. Domestic sources contributed 61.9 per cent or RM15.9 billion of these investments, while the rest were from foreign sources.

The bulk of the investments were in electrical and electronic products, rubber products, non-metallic mineral products, transport equipment and food manufacturing.

"These investments generated 134,425 employment opportunities for the State," Dato’ Sri Mustapa pointed out. He added that for the first quarter of 2015, MIDA has approved a total of RM191.6 million worth of investments in the manufacturing sector.

"As at June 2015, Perak has seven projects in the pipeline with investments amounting to RM3.2 billion, which, when implemented, will create more jobs for the people," he said.

The Minister urged the business community to take full advantage of the incentives announced in the Budget for 2015. "We've introduced new tax incentives in four different segments -- the Incentive for Less Developed Areas, Incentive for Industrial Area Management, Capital Allowance to Increase Automation in Labour Intensive Industries, and Incentive for the Establishment of Principal Hub," he said.

Mustapa also emphasised that MITI and its agencies were now focused on attracting high value-added investments that can help Malaysia achieve its aspiration of becoming a high-income economy by 2020. He said the 11th Malaysia Plan, announced recently, incorporated several objectives towards this goal.

"The 11th Malaysia Plan, which will take us into 2020, is the last lap in our journey to achieve high-income status by that year" he said.

A key investment strategy outlined in the Plan is for MITI and its agencies, especially MIDA, to focus on attracting investments in the manufacturing sector in three catalytic sub-sectors -- chemicals, electrical and electronics (E&E) and machinery & equipment industries -- and two sub-sectors of high potential growth -- aerospace and medical devices .

"These sub-sectors have been identified in the 11th Malaysia Plan as the dynamos to power the growth of the manufacturing sector due to their strong inter-linkages to other sub-sectors . This can indirectly support the development of the overall manufacturing sector.," Dato' Sri Mustapa explained. " As for the services sector, our investment strategies will focus on knowledge-intensive services, integrated sectoral governance reforms and help local service providers expand overseas," he said.

Dato' Sri Mustapa added that investor confidence in Malaysia remains high, as reflected in the recently released World Investment Report 2015 by the United Nations. "The decision by UNCTAD -- the UN agency that compiles the annual Report -- to launch it in Kuala Lumpur is further affirmation of Malaysia's attractiveness as a preferred investment destination," he said.