Malaysia can attract more investors as more supply chains shift in Asia – Tengku Zafrul

Supply chain shift in Asia

Malaysia has significant potential to attract more investors by capitalising on the shift in Asian supply chains, as multinationals diversify their regional production hubs, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has said.

He noted that multinationals are increasingly shortening their value chains and diversifying production sources to build supply-chain resilience, citing a United Nations Industrial Development Organization (UNIDO) study showing that post-pandemic re-shoring of manufacturing hubs within Asia appears to be a long-term trend.

Halal industry master plans

Tengku Zafrul, speaking at the Global Halal Summit 2023 opening ceremony alongside the Malaysia International Halal Showcase (MIHAS) 2023, said MITI will keep driving the halal industry under two complementary blueprints aligned with the 12th Malaysia Plan: the Halal Industry Master Plan 2030 (HIMP 2030) and the New Industrial Master Plan 2030 (NIMP 2030). Beyond building local company competitiveness, HIMP 2030 aims to build talent, strengthen standards and certification services, narrow gaps in Islamic financial support access, and ensure supply chain integrity through robust logistics.

"Coupled with China's structural transformation towards a knowledge-driven, high-income economy, all these will significantly restructure key trade flows and global value chains (GVCs)," — Tengku Zafrul

Under NIMP 2030, MITI will push greater adoption of technology and ESG/sustainability principles to strengthen the halal industry's economic complexity and competitiveness — changes Tengku Zafrul said matter for lifting worker productivity and wages, and for making Malaysia's export sector more resilient to global demand and supply shocks. On the talent side, Halal Development Corporation Bhd (HDC) regularly updates its training programmes to match industry and market demand, helping ensure the workforce has the knowledge needed to grow the sector.

"To that end, this year's GHaS features a halal professional seminar in line with the HIMP 2030 agenda, which aims to create 700,000 job opportunities," — Tengku Zafrul

Halal export growth

Malaysia's halal exports reached almost RM60 billion (RM59.46 billion) in 2022, up 64% from 2021, with food and beverage products the largest contributor at 58% growth. Tengku Zafrul said the figures underline the halal industry's resilience in supporting the country's economic growth despite global headwinds.

Source: The Star (Bernama)