With the New Industrial Master Plan 2030 (NIMP 2030) expected to attract more foreign investments, attaining net benefits from external collaborations towards higher value-added exports should be prioritised, It said in a statement today.
MARC noted that the materialisation of foreign investments over time will raise Malaysia's net foreign direct investment (FDI) inflows-to-GDP ratio, which, at 3.6 per cent as of 2022, is ahead of most of its peers in the region.
"Facilitating technological diffusion requires absorptive capacity supported by well-designed investment policies, high quality infrastructure and continuous human capital investment.
"This is required to facilitate the timely implementation of approximately RM188 billion worth of approved foreign investments in 2023, a 15.3 per cent increase over those recorded in 2022," it said.
According to MARC, Malaysia's medium- and high-tech exports as a share of total manufacturing exports (ME) declined from 76.4 per cent in 2000 to 62.0 per cent in 2021, due to regional competition.
Additionally, there has been a decline in the attractiveness of Malaysia's exports, alongside receding interest in the country as a base for outsourcing, it added.
"In response to these challenges, the NIMP 2030 outlines medium-term strategies to progress towards producing high-value and competitive goods, building upon past industrial master plans that have developed a mature yet recently plateaued electronic industry.
"While the goal includes increased employment, higher wages and greater value add in the manufacturing sector, successful execution remains a key challenge," it said.
-- BERNAMA
