The Malaysian Government has implemented a series of measures to enhance the benefits for local micro, small, and medium enterprises (MSMEs) from foreign direct investment (FDI). In a written reply to Senator Tan Sri Dato’ Low Kian Chuan during a session of the upper house, the Ministry of Investment, Trade, and Industry said that in 2023, the country approved investments totalling RM329.5 billion across 5,101 projects, which are anticipated to create 127,332 new jobs. FDI accounts for 57.2% of this total, with domestic investments (DDI) making up the remainder.
The ministry also highlighted the synergy between FDI and DDI, describing how strong domestic demand leads to increased DDI, which in turn attracts more FDI. This dynamic will provide more opportunities for local businesses, particularly MSMEs, throughout the supply chain.
Several initiatives have also been introduced to support local investors and MSMEs. The "localisation" programme encourages foreign investors to partner with local vendors to produce high-quality domestic products. Efforts to develop the local supply chain ecosystem include Supply Chain Seminars designed to connect local firms with multinational and large domestic companies. Engagement with investors is enhanced through MIDA Invest Series Conferences, roundtable meetings, site visits, and networking sessions. Additional measures include the establishment of the Invest Malaysia Facilitation Centre (IMFC), the introduction of the i-ESG Framework, and the organisation of Local Investment Seminars and the ‘SME Investment Desk’.
MITI is also transitioning from the Industry4WRD Policy to the Tech Up Initiative to support the technological transformation of MSMEs. This new initiative is set to establish 3,000 smart factories by 2030, in line with the New Industrial Master Plan (NIMP 2030).
Senator Tan Sri Dato’ Low had raised questions regarding these efforts, on how the Government plans to ensure that local MSMEs benefit from foreign investments.
On a separate matter, the Ministry of Investment, Trade, and Industry (MITI) launched a new initiative to enhance the capacity and capabilities of women in the industrial and export sectors. Known as "Women in Trade and Industry" (WITI), this initiative is a collaboration between MITI and the Malaysian Women and Family Affairs Organisation (HAWA Malaysia).
The implementation of this programme aligns with the Malaysia Madani Policy and the National Women’s Policy, creating equal opportunities and capacity for Malaysian women to advance in the global economy.
MITI said that the WITI program will be rolled out nationwide in collaboration with HAWA Malaysia, which was established in March 2023.
“Through various programs and initiatives, HAWA Malaysia will address the barriers and challenges faced by women in the economic field,” said MITI in a statement on 23 July.
MITI said that this partnership between MITI and HAWA Malaysia will provide a platform for female entrepreneurs to engage in trade and industrial sectors. “It will also enhance their knowledge and capacity, as well as that of their families, to support the country's economic development,” said the statement.
MITI further announced that the WITI programme will be implemented by MITI officials across the country, offering training and support to women interested in entering the trade and industrial fields. Women from various backgrounds, including entrepreneurs, start-up founders, small and medium-sized enterprise operators, youth, and those from the B40 and M40 groups are expected to benefit from this programme.
Besides training and capacity building, focus will be given towards access to undertakings and grants, financial management, business strategies and cultivating organisational cultures, MITI said in its Facebook post.
The Minister of MITI, Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, said empowering women is crucial for achieving dynamic and inclusive economic growth.
"One of the missions under the New Industrial Master Plan (NIMP) 2030 is to ensure economic security and inclusivity. This principle of inclusivity also includes the empowerment of women. Therefore, developing the capacity of women in the trade and industrial sectors through the WITI Program not only helps women reach their potential but also drives the national economy to higher levels," he said.
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