MIDA: Manufacturing sector still growth driver for Malaysia
The manufacturing sector is expected to remain a "significant" contributor" to the growth of the country’s economy, according to the Malaysian Investment Development Authority (MIDA).
In its report on Malaysia’s investment performance for 2011 released yesterday, MIDA said a total of 846 manufacturing projects, valued at RM56.1 billion, were approved, showing an increase of 19% from RM47.2 in 2010.
"Foreign and domestic investors continue to respond positively to the government’s initiatives to invest in new growth areas and emerging technologies, high value-added industries, high technology and capital intensive industries and research and development activities," Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said at a media conference in Kuala Lumpur yesterday.
The approved amount accounted for almost 38% of the total RM148.6 billion in approved projects. It exceeded by RM28.6 billion, or 104%, of the average annual investment target of RM27.5 billion set in the Third Industrial Master Plan, 2006-2020.
Foreign investments in projects approved in 2011 amounted to RM34.2 billion (61%) compared to RM29.1 billion (39%) in 2010.
The majority of the projects approved in 2011 were new projects (511 projects) with investments of RM33.1 billion (59%).
In 2011, the electrical and electronic (E&E) industry remained the leading industry in terms of the number of new projects approved (34%), followed by basic metal products, and chemicals and chemical products. Projects approved in 2011 are expected to generate a total of 100,533 employment opportunities, with 42,688 of those jobs in the E&E industry.
Japan, South Korea, the US, Singapore and Saudi Arabia were the five leading sources of foreign investment in manufacturing.
Japan invested RM10.1 million in 77 projects, mainly in the E&E industry.
Meanwhile, Mustapa said the solar panel manufacturing sector was experiencing sluggishness due to the drop in solar photovoltaic panel prices in the global market and access capacity.
"Some companies have approached MIDA and have asked to put their projects on hold," he said.
Germany’s Robert Bosch has postponed its plans to build a solar plant in Malaysia due to pressure on costs in the sector.
Although the company has delayed its project, Mustapa said the company has "remained committed" to setting up its plant.
In line with a call from the government for domestic investors to step up to the plate under the Economic Transformation Programme, domestic investments approved in the manufacturing sector increased by 21% to RM21.9 billion, from RM18.1 billion in 2010.
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