Malaysia sees 60% investment surge, targets 4-5% GDP growth in 2023
The Malaysian Ministry of Investment, Trade and Industry (Miti) is working towards its 2023 Gross Domestic Product (GDP) growth target of 4.0 to 5.0% by focusing on investments and exports. In the first quarter of 2023, Malaysia recorded approved investments valued at US$17.1 billion, a nearly 60% increase year-on-year, with 1,265 projects expected to generate 23,977 new job opportunities across various sectors.
Tengku Datuk Seri Zafrul Abdul Aziz, the minister of Miti, said that the strong economic fundamentals and the implementation of Budget 2023 measures through Miti’s agencies would support the GDP growth forecast. The ministry is also crafting strong policies to help industries build resilience under the upcoming New Industrial Master Plan 2030 (NIMP2030).
Miti is working closely with key institutions such as Bank Negara Malaysia and the World Bank to overhaul the industrial framework through several strategies. The first strategy aims to help industries and small and medium enterprises (SMEs) tech up, build resilience, and improve investment, trade, and industrial processes. The second strategy focuses on safeguarding economic resilience and inclusivity by developing a more strategic supply chain, strengthening industrial clusters, and empowering halal agro-processing. SMEs will feature strongly in all projects in this pillar.
The third strategy involves nurturing SMEs for resilience by pushing for Malaysia’s net-zero targets by 2050. Sustainable development goals and related ‘green’ goals are the underlying consideration for new industrial frameworks and policies to decarbonise the economy. Miti will ensure SMEs are part of projects on renewable energy, low carbon transition, the circular economy, and carbon capture, utilisation, and storage.
“The recently launched Greening Value Chain Programme, with the support of Bank Negara Malaysia and strategic partners, is one good example of how the government ecosystem is incentivising carbon emission management among our SMEs,” Tengku Zafrul said.
The EXIM Go-Export Financing programme, developed by EXIM Bank Malaysia, supports SMEs and corporate clients in obtaining funding for their business in areas such as export development, green technology, and supply chain ecosystem.
