Invest Selangor upbeat on more investment from China in 2019

Last update: 07/08/2019

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Aug 7 (Bernama) – Invest Selangor Bhd is optimistic of heightened investment interest from China in Malaysia this year, particularly Selangor, following the escalating trade conflict between China and the United States, says Invest Selangor Bhd chief executive officer (CEO) Datuk Hasan Azhari Idris.

“China was Selangor’s top investor with RM3.93 billion of investment value in 2018, mainly in the manufacturing industry such as basic metal products and paper, followed by Japan with RM435.6 million in the semiconductor, factory automation, automotive and food industries.

“And it is still possible for China to maintain its position as the top investor (in Selangor) for this year, and relocating their operations amid the country currently having a trade dispute with the US,” he told Bernama.

He was speaking on the sidelines of the Malaysian Investment Development Authority (MIDA) Invest Series: Unfolding States’ Business Potential: a briefing by Selangor state government agencies.

For this year, the Selangor state government targets to achieve overall investment of  RM10 billion. 

“We are on the right track to achieve the target set by the state government. As for now, we only get data that was released by MIDA for the first quarter of 2019 (January-March), and based on that figure, yes, we have a long way to go.

“But, usually, we can see the pick-up trend during the second half, so I believe that we can reach the target,” he said, adding that the state is focusing on the five high technology clusters, namely machinery and equipment, transportation and equipment, life sciences, food and beverages, and electrical and electronics.

Meanwhile, Hasan Azhari said Invest Selangor has allocated another RM10 million to carry out investment-related programmes in Selangor for the second half from July to December 2019.

“The allocation may be slightly more because there are certain programmes that are high in cost.

“While the portion of RM7.11 million for the period of January-June 2019, all has been spent on various activities, not only oversees trade investment missions but also all related programmes such as business seminars, dialogues and exhibitions that we were participating in, and also publications,” he said.

Earlier in the opening speech, MIDA deputy CEO Arham Abdul Rahman said the federal government, through the Ministry of International Trade and Industry and MIDA, is continuously intensifying its efforts to attract more high-level and quality investments to all states including Selangor, through the provision of fiscal and non-fiscal incentives for both foreign and domestic investors.

“For Selangor, as of March 2019, a total of 9,097 projects with investments of RM218.4 billion were approved by MIDA in the manufacturing sector, creating more than 802,000 employment opportunities.

“Selangor is indeed one of the most preferred investment locations for manufacturing activities. Continued interest by investors had enabled Selangor to register a remarkable level of re-investments which constituted 40.3 per cent of total investments in the sector for the state,” he said.

He noted that from 2010 to March 2019, 902 or 39.6 per cent of manufacturing projects were approved in expansion or diversification activities, while reinvestment by existing manufacturers contributed RM37.6 billion or 41.9 per cent of the total investment approved in the manufacturing sector.

“This achievement comes in as no surprise as Selangor houses the country’s largest and most sophisticated airport, seaport, highways and other facilities.

“Apart from its infrastructure and connectivity advantages, Selangor can also attract the right and diversified workforce that is skilled, talented and multilingual,” he added.