MIDA Shares Investment Initiatives to Promote Economic Growth with BMCC Members
On the 5th of September, we hosted a Breakfast Briefing with the Malaysian Investment Development Authority (MIDA) at our office, attended by C-suites and senior managers from BMCC member companies.
This event provided an excellent platform for networking and knowledge sharing, uniting Malaysia’s economic growth goals, the UK’s accession to the CPTPP trade agreement, and the diverse industrial portfolio of BMCC members.
In this engaging and insightful session, Sivasuriyamoothry Sundara Raja, Deputy CEO, Investment Promotion & Facilitation of MIDA and his team, presented an in-depth overview of MIDA’s initiatives and plans to attract and expand investment opportunities, as well as mission statements that clearly define MIDA’s targets for the foreseeable future. These statements align closely with the Madani Economy Framework and public sector reforms.
He also provided an overview of MIDA’s international relations portfolio and investment missions, citing China as one of Malaysia’s largest and most profitable collaborators, ahead of Singapore and Taiwan.
Implementing Investment Policies: He emphasised a bilateral approach to expanding Malaysia’s horizons: ‘Raising the Ceiling’ by positioning Malaysia as a globally competitive investment destination, and ‘Raising the Floor’ by promoting inclusivity and equitable management to support upward social mobility.
Encouraging Reinvestments: With clear targets set by the Twelfth Malaysia Plan and New Industrial Masterplan (NIMP) 2030, Mr. Siva made a strong case for reinvestment, encouraging companies to invest in high-growth and high-value areas, which are heavily incentivised under Budget 2024.
His team further elaborated on MIDA’s various initiatives and incentives across different interests, sectors, and specialised areas in Malaysia, all working together to build a strengthened and holistic Malaysian economy.
Regional Establishment: Representative or Regional Offices
Nurullydia Ahmad, Deputy Director of the Foreign Investment Division, presented the criteria and application processes for companies planning to set up a representative regional office when establishing a presence in Malaysia.
Types of Offices: Representative Offices are designated to collect relevant information on investment opportunities in the country, while Regional Offices serve as coordination centers for an organisation’s affiliates within the ASEAN region.
Ms. Nurullydia provided clarity on the eligibility criteria for a regional establishment, as well as the permitted activities in these offices, such as gathering and analysing information to undertake research and product development.
Non-Permissible Activities: Regional establishments are restricted from engaging in commercial activity, signing business contracts, leasing warehouses, and participating in the daily management of any of its subsidiary affiliates or branches in Malaysia.
Nurturing Opportunities in a Holistic Green Investment Ecosystem
Jhaiyasree Walaidam, Deputy Director of MIDA’s Green Technology Division, explained MIDA’s role as an intermediary between policymakers and both foreign and domestic investors in developing the green economy. She also shared insights into how MIDA can facilitate successful application procedures.
With Malaysia’s goal to achieve RM300 billion in green investment and achieve Net-Zero Green House Gas emissions by 2050 as part of the Twelfth Malaysia Plan, Ms. Jhaiyasree explained how MIDA’s strategies and initiatives, particularly with the allocations under Budget 2024, can be game-changers.
Green Investment Strategies: To achieve our goals, Malaysia must significantly increase its green investment, by expanding investments in renewable energy and electric vehicles, while leveraging foreign direct investment.
Green Technology Incentives: Through the GITA Project for Business Purposes, eligible companies registered with MIDA can apply for Investment Tax Allowance (ITA) of 70% to 100%, depending on their qualifications. Companies can also qualify for ITA for activities ranging from green building to energy efficiency with the GITA Asset (own consumption) scheme.
Ms. Jhaiyasree reiterated that to be eligible for green investment incentives, applications must be submitted before the capital expenditure is incurred.
Attracting Investment through Digital Infrastructure
Muhammad Ramzul Abu Bakar, Senior Assistant Director of the Business Services and Regional Operations Division, discussed the initiatives and incentives designed to facilitate growth in Malaysia’s digital landscape, as outlined in the Malaysia Digital Economy Blueprint and National Fourth Industrial Revolution Policy.
Data Centres: Mr. Ramzul highlighted the increasing demand for data centers and their role in spearheading Malaysia’s digital revolution, especially with those focused on artificial intelligence (AI).
AI-driven data centers are applicable across various sectors, including education, finance, and commerce. They are proposed to be cost-effective in the long run and provide access to wider markets.
Digital Investment Incentives: MIDA’s Digital Ecosystem Acceleration Scheme (DESAC), aims to draw projects into the country and accelerate the growth of the digital economy value chain.
Strategic Initiatives to Advance Talent Development
Aziawati Ismail, Deputy Director of the Industry Talent Management and Expatriate Division, detailed her division’s functions, programmes, and achievements in implementing best practices.
Talent Facilitation: The division mission is to address and service investors’ needs in human capital. Various programmes have been developed to evolve Malaysia’s modes of talent development, such as career fairs, outreach programmes, and academia–industry engagement.
This also includes the creation of the Special Task Force for Talent Facilitation, which provides companies with a platform to address manpower needs and equips MIDA with a better understanding of the challenges in hiring talent.
Expatriate Management: In its role of managing and evaluating applications for expatriate posts, MIDA is one of the approving agencies to use systemic withdrawal plans (SWP) to issue support letters for Employment Pass applications. Interested parties can appeal for different licences and approval letters, depending on the nature of their sector.
The Johor Singapore Special Economic Zone (JS-SEZ)
Farah Najeeha Arham, Senior Assistant Director of the Strategic Planning & Policy Advocacy (Manufacturing) Division, focused on the Johor-Singapore Special Economic Zone (JS-SEZ), a project aimed at strengthening business connections and improving connectivity between Johor and Singapore, to attract investments to the region.
Ms. Farah emphasised that the JS-SEZ has the potential to cultivate sectors like manufacturing, energy, financial and business services, education, healthcare, and the digital economy.
Current Initiatives: The JS-SEZ is progressing with several initiatives, including the Forest City SFZ, the Invest Malaysia Facilitation Centre (IMFC), and a Talent Development Council, which aim to bridge the divide between industry with academia.
Incentive Offers: For the majority of the JS-SEZ priority sectors, Malaysia offers a variety of incentives. These range from substantial income tax exemptions to the recently introduced and enhanced ones, such as the Reinvestment Incentive under NIMP 2030, the Pengerang Integrated Petroleum Complex (PIPC) Incentive, DESAC, and Green Technology Incentives.
With the initiatives of five of MIDA’s specialised divisions shared and clarified, the session concluded with lively networking that seamlessly connected MIDA’s expertise with the interests of the attending representatives.
We are deeply grateful to MIDA for bringing their top experts to share invaluable insights into Malaysia’s diverse investment opportunities. Their commitment to fostering collaboration and growth is truly commendable. We are confident that this event has successfully connected our members with the right divisions to drive Malaysia’s economic progress and strengthen bilateral trade.
BMCC members who are interested in getting in touch with the MIDA team to explore these investment opportunities can contact:
Yoong@bmcc.org.my or Asyraf@bmcc.org.my.
