MIDA: Catalysing Malaysia's Economic Resilience, Future Growth In A Dynamic Global Landscape

By Abdul Hamid A Rahman

KUALA LUMPUR, Jan 12 (Bernama) -- Malaysia’s investment landscape in 2024 has once again showcased its resilience and adaptability, with the Malaysian Investment Development Authority (MIDA) at the forefront of driving economic growth through strategic investments, human capital development, digital and green economy initiatives.

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Promoting Investments and Driving Economic Growth

MIDA’s role in catalysing Malaysia’s economic development is underscored by its success in attracting investments worth RM254.7 billion in the first nine months of 2024, a 10.7 per cent year-on-year (y-o-y) increase. 

These investments span the services, manufacturing, and primary sectors, resulting in 4,753 new projects and generating 159,347 jobs, reflecting y-o-y growth of 75.9 per cent in job creation.

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Domestic investments (DI) contributed RM148.0 billion (58.1 per cent), reflecting strong confidence in the government’s clear policies and the resilience of local businesses.  

Meanwhile, foreign investments (FIs) accounted for RM106.7 billion (41.9 per cent), with key contributors including Germany, China, and the United States. 

MIDA chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid expressed his enthusiasm about the achievement.

“These investment figures reflect Malaysia's strengthening position as a premier investment destination.

“Our success in attracting both domestic and foreign investments underscores the effectiveness of our strategic initiatives in fostering an innovation-driven economy,” he told Bernama.

Accelerating the Digital Economy

In alignment with Malaysia’s National Investment Aspirations (NIA), MIDA has been at the forefront of driving the growth of the digital economy. 

From January to September 2024, the Digital Investment Office, a strategic collaborative platform between MIDA and MDEC, approved RM64.8 billion in digital investments, focusing on advancing technology adoption such as artificial intelligence (AI), data analytics, and automation to propel Malaysia’s digital transformation. 

“Malaysia is well-positioned to leverage 5G Advanced, AI, and cloud computing to accelerate economic growth. 

These advancements, underpinned by the MyDIGITAL Blueprint and National 4IR Policy, are fostering a vibrant digital ecosystem and establishing Malaysia as a regional innovation hub,” noted Sikh Shamsul.

Data Centre Boom: A Cornerstone of the Digital Economy

One of the standout sectors in 2024 has been the rapid growth of data centres, which attracted US$10.7 billion (RM46.9 billion) in investment commitments from the major data centre and cloud players. 

These facilities are indispensable pillars of modern infrastructure, enabling seamless interconnectivity across industries and regions.

Malaysia’s robust infrastructure, competitive energy costs, sustainability initiatives, rapid digitalisation adoption and strategic location have cemented its position as a regional hub for global technology giants and cloud service providers.

The growth of data centres and cloud activities not only drives a more digitally inclusive society, ensuring every user can benefit from the digital economy, but also develops the local supply chains, increased demand for renewable energy and technology solutions as well as upskilling of talent to meet industry needs. 

Key projects include investments by Google, Oracle and Microsoft creating thousands of high-value direct and indirect jobs, fostering knowledge transfer and promoting technological innovation.

“MIDA is committed to streamlining the development process for data centres and proactively addressing challenges to ensure Malaysia remains attractive to investors.

"A key initiative in this effort is the Data Centre Investment Coordination Task Force (DCICTF), which assumes a pivotal role in facilitating and expediting data centre-related matters,” stated the MIDA CEO.

Sikh Shamsul also stated that the Malaysian government’s guidelines for the sustainable development of data centres provide a comprehensive framework to ensure these facilities operate efficiently, sustainably, and in an environmentally friendly manner.

“This initiative aligns Malaysia’s ambitions with its long-term goal of achieving net-zero emissions by 2050,” he said.

Developing Human Capital for Economic Competitiveness

Human capital remains a critical pillar of Malaysia’s economic strategy. Initiatives including upskilling programmes and partnerships with academic institutions are designed to align the workforce with the demands of high-tech industries.

"To drive progress across all sectors, we are focused on developing a highly skilled and adaptable workforce. 

"Our partnerships with the Ministry of Higher Education and the Malaysian Technical Universities Network are essential to equipping Malaysians with the skills needed for the jobs of the future,” said Sikh Shamsul.

Addressing Challenges and Unlocking Opportunities

While Malaysia’s investment narrative is largely optimistic, challenges persist. Global economic headwinds and supply chain disruptions require deft policy responses. 

“MIDA has stepped up with measures such as the Invest Malaysia Facilitation Centre (IMFC) and the Project Implementation and Facilitation Office (TRACK), which aim to streamline investment processes and fortify Malaysia’s infrastructure,” he said.

Between 2021 and September 2024, Malaysia achieved an 84.3 per cent success rate in implementing approved manufacturing projects, demonstrating the effectiveness of initiatives such as TRACK.

Sikh Shamsul said that TRACK plays a pivotal role in ensuring that approved projects move seamlessly toward completion, whether they are already operational, under construction, or in the planning phase.

This highlights Malaysia’s robust mechanisms for turning approvals into tangible outcomes, minimising delays and maximising investor confidence.

A Vision for a Sustainable and Diversified Future

MIDA is actively working to diversify Malaysia's economic base by focusing on new growth areas such as renewable energy, e-mobility, biofuels, and rare-earth elements (REE).

These efforts align with Malaysia's strategic plans to achieve net-zero greenhouse gas emissions by 2050 and foster a green economy.

Malaysia has set ambitious targets to increase the share of renewable energy in its power mix, aiming for 70 per cent by 2050 as part of its commitment to achieving net-zero emissions.

MIDA's initiatives are integral to this transition, positioning Malaysia as a prime green investment hub by 2030, aligned with the Green Investment Strategy (GIS) target. 

Additionally, the government's National Energy Transition Roadmap (NETR) outlines key projects and initiatives to support this energy transition. 

“We are not just building a resilient economy for today, but a thriving and inclusive one for generations to come. 

“Our commitment to attracting investments in the new growth areas, coupled with our unwavering focus on human capital development, will ensure Malaysia remains a competitive force in the global landscape,” Sikh Shamsul said. 

The pivot to sustainability is also integral to Malaysia’s broader strategy to diversify its economic base.

“As the country assumes chairmanship of ASEAN in 2025, MIDA is expected to further amplify its efforts to position the nation as a leader in regional economic integration.

“With its robust initiatives and forward-looking strategies, MIDA remains an indispensable force in shaping Malaysia’s economic narrative, ensuring growth, innovation, and resilience in an ever-changing global landscape,” he added.

-- BERNAMA