KUALA LUMPUR – Nine foreign manufacturing firms have closed shop in Malaysia between March 2020 and May 2021, citing increased cost and competition, among others.
“Among the factors for these businesses ending operations in Malaysia are a shrinking global economy, weak markets due to low demand, increased costs and competitions by local and global producers, and company restructuring,” said Deputy International Trade and Industry Minister Datuk Lim Ban Hong to the Dewan Rakyat during the parliamentary question-and-answer session today.
He added that this is from data provided by the Malaysian Investment Development Authority.
However, he assured that the government will continue its efforts to make Malaysia a competitive and attractive investment destination in the region.
Meanwhile, Lim said Malaysia recorded RM107.5 billion worth of investments during the first half of 2021.
“This is a 69.8% increase compared with the same period last year. Contributions from foreign direct investments alone amounted to RM62.5 billion.
“The implementation of the RM150 billion Pemulih package includes tax cuts for expenditure covering the purchase of equipment and services for vaccinations by employers.
“We have also included a service in the Invest Malaysia portal to streamline manufacturing licence applications, as well as tax exemption and incentive applications.
“The Digital Investment Office will facilitate digital investments, while the Specific Investment E-Mission is tasked to pull more investments into the country.”
He added that under the 12th Malaysia Plan (12MP), the National Investment Aspiration will see the nation focused on projects that will bring high skilled and high-income jobs that rely on technology.
“This focus is in line with the 12MP, which emphasises transformation for local industries, including SMEs, to rely less on labour and become more technology-oriented.” – The Vibes, October 6, 2021
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