Anwar: Malaysia continues to diversify export destination to non-traditional markets

KUALA LUMPUR: Malaysia will continue efforts diversify its export destination especially to non-traditional markets such as the Middle East and Latin America.

Prime Minister Datuk Seri Anwar Ibrahim said these markets showed tremendous potential whereby during the first nine months of 2023, exports to these markets recorded positive growth of 24.7 per cent and 2.3 per cent, respectively.

“Among the programmes that are being carried out include International Sourcing Programme,” he said during Minister’s Question Time at the Dewan Rakyat sitting today.

Anwar said this was among the government’s efforts to mitigate the decline in export value following the uncertain global environment.

“The government is also implementing the Trade and Investment Promotion Mission overseas, aimed at promoting Malaysia as a choice destination for foreign direct investment as well as Malaysian products and services to increase export, and encourage bilateral trade and investment cooperation between governments, which would subsequently contribute to the country’s economic development,” he said.

Meanwhile, he said his working visit to New York recently had attracted three US companies with a potential investment commitment of RM4.74 billion in medical devices, electrical & electronics (E&E) and machinery & equipment sectors.

“Two projects in E&E and machinery & equipment sectors with potential investments worth RM2.74 billion are expected to be completed by end-2024.

“Another project involving medical devices valued at RM2.0 billion is targeted to be secured by stages until 2031, whereby the first phase worth RM545 million as initial investment has been approved by the Malaysian Investment Development Authority (MIDA),” he said.

Through his working visit to the United Arab Emirates (UAE), Anwar said the government succeeded in securing investment commitment from the UAE amounting to RM40.6 billion involving the renewable energy (RE) sector (Masdar; RM38.1 billion) and aerospace (maintenance, repair and overhaul for business jet worth RM710.25 million).

“Masdar has made a due diligence visit to identify several partners among local companies to carry out RE projects in stages over 10 years.

“Masdar has also signed a memorandum of understanding with CitaGlobal Sdn Bhd to forge a cooperation in RE projects such as solar and wind turbine.

“Going forward, Masdar and MIDA will establish a steering committee to facilitate the projects between Masdar and local companies to ensure these projects can be realised in Malaysia,” he said.

He said Masdar’s chief executive officer and delegation will be in Malaysia this week to meet their potential partners that have been arranged by the Ministry of Investment, Trade and Industry (MITI) and MIDA.

The UAE is currently the biggest investor in Malaysia from West Asia and the second-biggest among the Organisation of Islamic Cooperation countries.

To-date, UAE investments in various manufacturing projects that had been implemented in Malaysia totalled US$388.8 million (RM1.48 billion).

Anwar said he had also met renowned companies in Saudi Arabia such as Public Investment Fund and Saudi Arabian Oil. Co (Aramco) during his working visit to the kingdom; Aramco had shown interest to increase investments in Malaysia in the manufacturing sector (downstream) and retail in the petrochemical industry.

“To-date, Aramco is Petronas’s partner in refining and petrochemical projects in the Pengerang Integrated Petroleum Complex in southern Johor.

“However, at present, Aramco is fine-tuning its investment plan. The government is committed to providing complete facilitation (end to end) to realise this investment,” he said.

The investment commitment signed through these working visits are in line with the existing policies as outlined in the Mid-Term Review of the 12th Malaysia Plan and the New Industrial Master Plan 2030 such as RE, medical devices, E&E and other priority sectors.

In ensuring the potential strategic investments from the Trade and Investment Mission and the Prime Minister’s official working visits sessions can be implemented, the government has taken an approach to set up the Investment and Trade Action Coordination Committee under MITI. — Bernama

Source: New Straits Times