Malaysia’s NIMP2030 to boost economic complexity, targeting key sectors

The Ministry of Investment, Trade and Industry in Malaysia is working on the New Industrial Master Plan 2030 (NIMP2030) to drive industrial development and increase the nation’s economic complexity. Set to launch in August, NIMP2030 aims to align with the New Investment Policy (NIP), which has identified five key sectors for enhancing future exports of complex products. These sectors include aerospace, chemicals/petrochemicals, digital economy, electrical and electronics (E&E including medical devices), and pharmaceuticals.

According to Datuk Seri Tengku Zafrul Abdul Aziz, the Minister of Investment, Trade and Industry, among the top five exported products, only E&E and chemicals are considered to have higher complexity. He emphasised that a lower ranking on the complexity scale indicates less manufacturing required to produce the product. To ensure future exports consist of more products with higher complexity, the NIMP2030 Task Force is focusing on making Malaysia a digitally vibrant nation by accelerating tech adoption, fostering the next generation of tech innovation companies, and developing business opportunities using new data sources, particularly for small and medium-sized enterprises (SMEs) and medium-sized companies.

In 2022, Malaysia’s top five exports in terms of value were E&E products (RM593.5 billion; 38.3%), petroleum products (RM163 billion; 10.5%), palm oil (RM96.5 billion; 6.2%), chemicals (RM80.6 billion; 5.2%), and liquefied natural gas (RM67.99 billion; 4.4%). The country’s total trade value in 2022 reached RM2.85 trillion, with a trade surplus of RM255.48 billion.

Datuk Seri Tengku Zafrul Abdul Aziz said, “Our total trade surpassed the RM2 trillion mark for the second year running. In March/April this year, Malaysia attracted RM170 billion of potential foreign direct investment from China and identified RM2.44 billion in potential exports to China. Recently, we also attracted RM24 billion from Japanese investors and a further RM2.1 billion of potential exports to Japan.”

The NIMP2030 initiative aims to boost Malaysia’s economic growth and competitiveness in the global market by focusing on key sectors and embracing digital transformation. With the launch of the plan in August, the country hopes to create a strong foundation for future industrial development and establish itself as a leader in the production of complex products.