Malaysia Digitally Equipped To Be Regional Services Hub For Global Companies - Tengku Zafrul

KUALA LUMPUR, Sept 26 (Bernama) -- The Ministry of Trade, Investment and Industry (MITI) will continue to nurture talent, deepen trade relationships and ensure Malaysia remains a leading manufacturing and services hub, contributing to a prosperous and inclusive Asean.

In giving the commitment, its minister Tengku Datuk Seri Zafrul Aziz said the path towards that would be supported by strong policies, world class infrastructure and a resilient economy.

“Through the New Industrial Masterplan 2030 (NIMP 2030), for example, we hope to create 3,000 smart factories by 2030, by integrating advanced technology, utilising data for strategic insights and delivering personalised services,” he said in his keynote address at a dinner organised by InvestKL Corporation today.

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Tengku Zafrul said balancing and integrating both the manufacturing industry and modern services will certainly elevate the manufacturing industry.

In terms of modern services,  he highlighted the three sectors mentioned in the NIMP 2030, namely digital and ICT, global services and professional services, and manufacturing-related Services (MRS).

“On digital and ICT services, for example, we have been enabling activities such as digital infrastructure, which includes data centres and cloud computing,” he added. “We are thrilled that companies such as Google and Amazon Web Services (AWS) have chosen Malaysia to establish their cloud network.”

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Malaysia’s total approved investments in the first half of 2024 stood at RM160 billion, an 18 per cent year-on-year increase, of which the services sector, particularly in technology and digital services, made up RM97.2 billion, or 60.7 per cent of total approved investments.

“The establishment of the AWS world class cloud infrastructure in Malaysia, for example, will digitally enable developers, startups, and enterprises, as well as government, educators, and even non-governmental organisations (NGOs) to have greater choice for running their applications and serving end users from AWS data centres located in Malaysia,” he explained.

The key to the success of the country’s modern services sector is talent, so MITI is also taking steps to ensure that its people will have the skills to match the demands of a rapidly evolving services sector. “We are fully committed to developing the skilled workforce necessary to support Malaysia’s continued rise as a global player in high-tech industries,” he said.

Through “sub-policies” such as the National Industry Framework for ESG (i-ESG), National Semiconductor Strategy (NSS), the Green Investment Strategy (GIS) and the Circular Economy Policy Framework for Manufacturing, the path towards reindustrialisation is geared towards not just growth, but also sustainable and inclusive growth, he said.

Plans for an inclusive Asean

As the Chair of Asean next year, Tengku Zafrul said the government is currently putting together a solid to-do list to build a more prosperous, sustainable and inclusive Asean.

It includes working towards the substantial conclusion of the Digital Economy Framework Agreement (DEFA), “which is most relevant in the context of our modern services discussion today,” he said. “I would also like to highlight that in a world where supply chain re-configuration has become a high stakes venture, many global companies and multinational companies also need a neutral, peace-loving partner. That partner is Asean.”

During the chairmanship of Asean next year, Putrajaya will not only ensure that the commitment to Asean Centrality is renewed, “but we will strive to defend Asean Neutrality; we have seen the dividends pay off handsomely for us in these challenging geopolitical times,” he noted.

The minister said he is highly optimistic about Asean’s growing role in the global supply chain, and consequently, its growing significance in the global order. “Asean’s proposition as the premier supply chain point and gateway to numerous key markets is still at its nascent stage. Malaysia, in particular, will always remain open to all our friends from within and outside the region.”

-- BERNAMA

SM SM TKB