THE Ministry of International Trade and Industry (MITI) is set to introduce a series of new legislative reforms aimed at strengthening Malaysia's industrial development.
These changes, scheduled to be presented to Parliament in 2025, will modernise key laws that have shaped the nation's industrial landscape over the decades.
Speaking at the Town Hall session held to review the legislation today, Deputy Minister of Investment, Trade And Industry (MITI) Liew Chin Tong said the consultations on five significant pieces of legislation include:
- The Industrial Co-ordination Act 1975 (Act 156), which will be replaced by the new Industrial Development Bill 2025;
- Countervailing and Anti-Dumping Duties Act 1993 (Act 504);
- Malaysia Productivity Corporation Act 1966 (Act 408);
- Standards of Malaysia Act 1996 (Act 549);
- Strategic Trade Act 2010 (Act 708).
Liew explained, these legislative updates come at a time when Malaysia is charting a new course for its industrial future through the New Industrial Master Plan 2030 (NIMP 2030), launched by Prime Minister Datuk Seri Anwar Ibrahim in September 2023.
NIMP 2030 aims to increase the country’s manufacturing sector by 6.5% annually, with a target contribution of RM587.5 billion to the total GDP by 2030. The plan also envisions creating 3.3 million high-skilled jobs and raising the median salary in the sector to RM4,510 by 2030, a significant increase from RM1,976 in 2021.
“The industrial reform aligns with the Madani Economy Framework and the National Energy Transition Roadmap, which emphasise sustainability, economic complexity, and resilience.
Key Reforms in the Industrial Development Bill 2025
“A key element in these reforms is the introduction of the Industrial Development Bill 2025, which will replace the Industrial Co-ordination Act 1975 (ICA). The ICA, which was enacted decades ago, is now considered outdated and in need of modern updates to meet the demands of a vastly different global economy,” he said.
The new bill is designed with two primary goals:
Simplification of Business Processes: The Industrial Development Bill will simplify procedures for manufacturers, making it easier for them to obtain manufacturing licenses and official status. This will be achieved by integrating digital technologies and streamlining existing processes.
Supply Chain Resilience: Drawing lessons from the COVID-19 pandemic, the bill will enhance Malaysia’s supply chain resilience. During the pandemic, the government faced challenges in tracking which industries were essential, revealing gaps in the nation's supply chain resilience.
As global businesses shift from a “just-in-time” model to a “just-in-case” approach, ensuring that Malaysia’s supply chains are robust and self-reliant has become a key priority.
“The bill also aims to promote the localisation of foreign supply chains, encouraging international companies to move their production closer to home. As part of this initiative, the bill will introduce measures to track local manufacturing activities and ensure that Malaysia can become a key player in the global supply chain” Liew said.
Building a Stronger Malaysian Industrial Base
The Industrial Development Bill 2025 is not just about improving business operations—it’s about setting the stage for the future.
Malaysia, which once relied heavily on foreign manufacturing, is now looking to transition to a model where local businesses and technologies take centre stage. By encouraging the development of "middle-tech" solutions for emerging markets, Malaysia is positioning itself as a hub for innovation and technology development in the coming decades, he said.
And, with the updated Countervailing and Anti-Dumping Duties Act, Malaysia will be better equipped to protect its industries from unfair competition, particularly in the face of growing global trade tensions and potential disruptions, he said.
The Anti-Dumping Amendment Bill is already nearing completion, while other bills are still open for consultation. MITI has expressed its eagerness to incorporate feedback from stakeholders to ensure that the new laws will be as effective as possible in driving Malaysia’s industrial future, Liew said.
“The proposed legislative changes represent a bold step toward positioning Malaysia as a more resilient and competitive industrial economy, prepared for the challenges and opportunities of the 21st century.” – February 14, 2024
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