Malaysia Can Emerge As Regional Focal Point For Multinational Firms In ASEAN - Economist
By Mikhail Raj Abdullah
KUALA LUMPUR, Dec 5 (Bernama) -- Malaysia can leverage its mature digital infrastructure and skilled workforce to become the focal point for regional headquarters of multinational companies (MNCs) and high-skilled services and manufacturing.
Strategic advisory firm, Bower Group Asia, associate director, Darryl Tan, said that Malaysia -- as chairman of ASEAN in 2025 -- and each Southeast Asian country, has a niche in the global value chain that they can leverage.
He cited how Singapore serves as the regional headquarters for many MNCs, while Malaysia serves as a high-skilled service and manufacturing hub for these companies, and Indonesia and Vietnam focus more on the manufacturing side of the value chain.
As chair of ASEAN in 2025, Tan emphasised that many of the strategies outlined by Prime Minister Datuk Seri Anwar Ibrahim support the vision of leveraging each member country’s advantages.
“Together, they can make ASEAN a competitive hub,” he said in response to questions raised during the Bernama Global news programme on Wednesday (Dec 4), by host Jessy Chahal, regarding the topic “Southeast Asia’s markets: Navigating Challenges and Opportunities in 2025”.
This includes fostering digital adoption at every level of the supply chain, increasing regulatory cooperation as well as increasing logistical linkages to enable smoother transactions of goods and expertise across borders.
Tan said Putrajaya should also leverage its significant investments in renewable energy to attract companies that want to set up environmentally sustainable manufacturing plants in the region.
He highlighted that Malaysia should take advantage of its regulatory and policymaking experience -- for example, in the digital and energy sectors -- and share this knowledge to foster stronger regulatory cohesiveness across the region.
“Deeper economic integration within the region will allow ASEAN to position itself as a hub for businesses at every level of the supply chain,” he said.
Asked about Malaysia’s economic outlook, Tan said the country would benefit from the overall tech boost, as “we are a major exporter of semiconductors and electrical and electronics (E&E) products”.
There will be stable growth next year, with the economy expanding by 4.5-5.5 per cent supported by the continued demand for E&E goods, as multinational companies invest heavily in new technologies, particularly artificial intelligence (AI).
Contributing to Malaysia’s stability will also be the sustained domestic demand.
Despite the government’s plans to further rationalise petrol subsidies next year, he said any spillover effects from the increase in the cost of living would be offset by government initiatives, including the increase in the minimum wage and the rise in civil servant salaries.
-- BERNAMA