NIMP 2030 A CATALYST FOR MALAYSIA'S SHIFT TOWARDS HIGH-VALUE MANUFACTURING -- INDUSTRY PLAYERS

By Siti Noor Afera Abu

KUALA LUMPUR, Feb 12 (Bernama) -- The New Industrial Master Plan 2030 (NIMP 2030) is emerging as a key driver of Malaysia’s transition from volume-based manufacturing to a more innovation-led, high-value economy, according to industry players.

NIMP 2030 is anchored in four missions, namely advancing economic complexity, accelerating digital and green adoption, pushing towards net-zero manufacturing, and ensuring equitable, broad-based growth.

Its implementation framework includes 21 strategies, 62 action plans, and seven catalytic sectors -- electrical and electronics (E&E), machinery and equipment, chemicals, aerospace, medical devices, advanced materials and electric vehicles.

The plan aims to raise manufacturing value-added to RM587.5 billion and double median manufacturing wages by 2030.

Manufacturing value-added target is achievable

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the manufacturing value-added target is achievable, provided productivity and economic complexity improve meaningfully.

He said that based on current trends, manufacturing value-added must grow by roughly six per cent per year to increase to RM587.5 billion by 2030 from RM364.1 billion in 2022.

Citing statistical data, he noted that manufacturing activity has recovered since 2023, supported by stronger momentum in E&E, machinery and metal-related industries.

“At the same time, rising imports of capital goods indicate firm-level investment in automation and advanced machinery, directly aligned with NIMP Mission 2 (Tech Up). These developments are encouraging,” he told Bernama.

Moreover, Mohd Sedek stated that the credibility of the target is strengthened by alignment with broader policy frameworks such as the MADANI Economy, Industry 4.0 incentives under recent budgets, small and medium enterprise (SME) upgrading programmes and sector-specific initiatives such as the National Semiconductor Strategy.

NIMP 2030 is a clear shift for the manufacturing sector

From an industry perspective, Malaysian Semiconductor Industry Association president Datuk Seri Wong Siew Hai said NIMP 2030 provides a clear shift in direction for the manufacturing sector.

He said NIMP 2030 signals that Malaysia intends to compete on value rather than volume.

He said that in semiconductors, the focus on advanced packaging, design, equipment, and the creation of intellectual property is particularly important for moving up the value chain.

Wong noted that investment momentum in the E&E sector has been strong, with approved investments totalling RM341 billion from 2021 to September 2025, surpassing the RM298 billion recorded over the 40-year period from 1980 to 2020.

“We are seeing real expansion on the ground, including new fabs (semiconductor fabrication plants) and advanced facilities. But ultimately, success will depend on execution speed and precision,” he said.

On talent development, Wong said universities and technical and vocational education and training (TVET) institutions play a crucial role in supporting industrial upgrading, particularly in high-tech (technology) sectors.

“NIMP 2030 is a comprehensive and well-structured strategy. Its success, however, will depend on prioritisation and consistent execution," he said.

Echoing this view, Mohd Sedek said the plan’s long-term impact will be judged not by policy design but by outcomes.

“If productivity rises, SMEs upgrade, wages improve as jobs are better, and talent stays in Malaysia, then NIMP 2030 will mark a genuine structural transformation,” he said.

Additionally, he said NIMP 2030 is one of the most coherent industrial strategies Malaysia has produced as it correctly diagnoses the core problem facing the economy.

He said Malaysia is no longer constrained by capital or basic infrastructure, but by productivity, economic complexity, job quality and talent retention.

“In that sense, NIMP is not just an industrial plan. It is effectively Malaysia’s exit strategy from the middle-income trap, aimed at creating higher-value firms, better jobs and more resilient growth,” he added.

-- BERNAMA