MATA takes great pride in its role within the Panel and dedicated to achieving its objectives diligently.

High Tech Facility – National Investment Aspirations (HTF-NIA)

The RM800 million Facility is aimed at supporting high-tech and innovation-driven SMEs affected by COVID-19 to recover and revitalise the nation’s innovation capacity. Financing rate of up to 3.5% per annum is offered for financing without guarantee or up to 5% per annum inclusive of guarantee fee (with guarantee coverage by Credit Guarantee Corporation Malaysia Berhad (CGC).

The Facility is available now until 30 June 2022 or full utilisation (whichever is earlier).

SME Automation and Digitalisation Facility (ADF)

The RM1 billion Facility is aimed at incentivising SMEs to automate processes and digitalise operations to improve productivity and efficiency. The financing rate is up to 4% per annum, inclusive of guarantee fee. Guarantee coverage is provided by Syarikat Jaminan Pembiayaan Perniagaan (SJPP).

The Facility will be available until 30 June 2022 or full utilisation, whichever is earlier.

Targeted Relief and Recovery Facility (TRRF)

The RM6 billion Facility is upsized by RM2 billion to RM8 billion for affected SMEs in the services sector. Under the enhanced TRRF, SMEs can now utilise up to 30% of the financing approved to repay existing business financing (i.e. refinance).

Offered at a rate of up to 3.5% p.a., TRRF will be available through participating financial institutions, with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).

The Facility is available until 30 June 2022 or full utilisation (whichever is earlier).

Source: Bank Negara Malaysia

The objectives of the Seminar are :

• To provide better understanding of Government Guarantee Schemes an alternative solution to the collateral requirement.
• To exchange success story and share knowledge to meet challenges for growth
• To encourage Malaysian manufacturers, especially SMEs, to adopt new technologies
• To help manufacturers move towards Industry 4.0; and
• To provide a platform for SMEs to network and exchange views with speakers, who are experts in their respective subject matter.

Please click  here for more Details

Google Registration

Contact us at 03-62867353 (Liana) / email : hasliana@fmm.org.my / sharina@fmm.org.my

Objectives of this Fund are to:

• Improve productivity of the company;
• Accelerate business growth through adoption of Industry 4.0 technologies and processes; and
• Improve the current level of scoring based on the Industry4WRD RA undertaken.

ELIGIBILITY
This Fund is eligible for all SMEs in the manufacturing and related services sectors which have completed the government-funded Industry4WRD Readiness Assessment (RA) programme.

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Source: MIDA

MIDF is offering the SME Revitalisation Financing (SMERF) to SMEs constrained by financial difficulties and the underserved sectors to sustain and continue to strive through enhancement of their products’ marketability, business sustainability as well as adoption of technology and modernization. Below are the details of SMERF for your reference: SFDT-A

Note: Businesses that would like to apply for this SMERF shall have no similar new banking facility for the past 1 year. The SMERF is also open for start-up companies that are more than 6 months in operation.

The pandemic had also forced many businesses to adopt technology into their operations. In view of this, MIDF had established the Soft Financing Scheme for Digital & Technology (SFDT), primarily to encourage and increase utilisation of digital technologies among local SMEs as means to escalate competitiveness and efficiency and marketability. The details of SFDT are stated below:

Members who are keen to explore the SMERF and/ or SFDT or wish to grow your businesses further with financing from MIDF, please email to GrowYourBusiness@midf.com.my or speak to our Business Advisory Consultant at 1-300-88-6433.

As provided under Article 20.6 of the RCEP Agreement which stipulates that the Agreement will enter into force after 60 days of the IOR submission, the RCEP Agreement will enter into force for Malaysia on 18 March 2022. With this latest submission of IOR to the ASEAN Secretariat as the Depositary of RCEP, Malaysia will join the eleven other signatory countries, namely, Singapore, China, Japan, Brunei Darussalam, Cambodia, Lao PDR, Thailand, Viet Nam, Australia, New Zealand and South Korea that have completed the ratification process.

Currently, RCEP is the largest Free Trade Agreement (FTA) in the world, covering 15 countries with 2.2 billion or nearly a third (29.5%) of the world’s population, representing US$25.8 trillion or 29.4% of the world’s GDP based on World Bank’s 2019 data. It bears stressing that RCEP is a testament to efforts to strengthen not only the multilateral trading system but advancing regional economic integration and upholding the development agenda of the World Trade Organisation (WTO)

Within ASEAN, Malaysia is expected to be the largest beneficiary of the RCEP agreement in terms of gains in exports, with a projected US$200 million increase. According to a report by UNCTAD published on 15 December 2021, these gains will result from tariff elimination and reduction for merchandise goods, including the facilitation of export and import of goods among the RCEP countries. Furthermore, service providers including e-commerce will be able to enjoy greater market access in terms of cross border supply and establishing commercial presence in the RCEP markets.

The pandemic has underscored the paramount importance of international trade and cooperation as well as the inter-linkages of regional supply chains. In this regard, RCEP would be a key enabler for Malaysia in revitalising the domestic and international business activities, post pandemic. Business communities, from large to small scale entrepreneurs are encouraged to take advantage of the vast investment opportunities and greater participation in regional and global value chains presented by this mega trade agreement. As a trading nation, Malaysia will continue to be an open economy, with business-friendly and pragmatic policies that foster a conducive investment climate in the country.

Source: https://www.miti.gov.my/miti/resources/Media%20Release/MEDIA_RELEASE_RATIFICATION_OF_THE_REGIONAL_COMPREHENSIVE_ECONOMIC_PARTNERSHIP_(RCEP)_AGREEMENT_FINAL_21_JANUARY_2022.pdf

The main objectives of the Smart Automation Grant are:
i. To assist as well as incentivise Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) to automise and digitalise operations, production and trade channels
ii. To improve efficiency in the manufacturing and services sector
iii. To reduce reliance on low-skilled foreign workers
iv. To provide job opportunities in high value-added sectors
v. To enhance SME competitiveness on an international level
vi. To be aligned with the National Policy on Industry 4.0
vii. To boost domestic investment

CLICK HERE for Details   Smart Automation Grant-Guideline   &  Smart Automation Grant process flow .

“While the COVID-19 pandemic has changed the global industrial system, MITI is committed to ensuring that Malaysia continues to be positioned as an investor-friendly location for long term growth of both foreign and domestic businesses. Foreign direct investment (FDI) is a long term capital flow. We trust that the existing foreign companies will continue to weather the storm and retain their investment in the country,” said YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), today.

Against the backdrop of a challenging external environment and declining global FDI inflows, Malaysia remains resilient and attracted a total of RM207.9 billion of approved investments in the manufacturing, services and primary sectors in 2019, a 1.7 per cent increase, compared to 2018. With a contribution of 60.4 per cent (RM125.5 billion), domestic direct investment (DDI) accounted for the bulk of the total approved investments. Although FDI made up for 39.6 per cent (RM82.4 billion) of the total, the value of FDI in 2019 had increased by 2.9 per cent from the previous year.

The services sector led the way for total investments approved in 2019. Approved investments for the sector also increased by 11.3 per cent from 2018.

The USA (RM26.8 billion), People’s Republic of China (RM15.7 billion) and Japan (RM12.1 billion) accounted for 66.3 per cent of total FDI approved in the manufacturing, services and primary sectors.

Selangor (RM47.8 billion) recorded the highest investments approved last year, followed by Pulau Pinang (RM33.7 billion), Johor (RM24.4 billion) and Wilayah Persekutuan Kuala Lumpur (RM21.6 billion). These four states alone contributed more than 60 per cent of the total approved investments for 2019.

Manufacturing Sector

Malaysia’s manufacturing sector recorded approved investments of RM82.7 billion for 2019. The number of manufacturing projects approved increased by 37 per cent from 721 projects in 2018 to 988 projects in 2019. FDI accounted for 65.2 per cent (RM53.9 billion) of total approved investments in the manufacturing sector, while domestic investments constituted the remaining 34.8 per cent (RM28.8 billion). “The Malaysian Investment Development Authority (MIDA) has put in place a fast track mechanism to expedite the approval of projects. It is noteworthy that 86.9 per cent of the manufacturing projects approved last year were through this mechanism,” said YB Dato’ Seri Azmin.

In line with Malaysia’s move towards sophisticated technology industries, capital intensive projects which involve advanced technology and skilled workforce dominated the manufacturing landscape. This is represented by the 108 projects approved with investments of RM100 million and above, which is 33.3 per cent higher than in 2018.

YB Dato’ Seri Azmin added that as the manufacturing sector has the most significant multiplier effect on the nation’s activities and growth, it will continue to be the mainstay of the economy. This includes forward and backward linkages, the development of cluster industries, the transfer of new technologies, and skills development, to name a few. In 2019, the manufacturing sector was the second-highest contributor to the Malaysian Gross Domestic Product (GDP) with 22.3 per cent share or RM316 billion.

The approved manufacturing projects last year will create new jobs for more than 78,000 people. Of these, 35.4 per cent are in the managerial, technical and supervisory (MTS) positions. Job opportunities in MTS roles increased by 24 per cent in 2019.

Overall, new projects made up 54.1 per cent of the total manufacturing projects approved. Foreign investments were evenly balanced between new and expansion or diversification projects in 2019. Meanwhile, domestic investments were mostly concentrated on new projects.

In terms of top-performing industries in 2019, the electrical and electronics (RM25.7 billion), paper, printing and publishing (RM10.8 billion), transport technology (RM8.0 billion), non-metallic mineral products (RM6.9 billion), and chemicals and chemical products (RM4.8 billion) contributed more than 68 per cent of the total approved investments in the manufacturing sector last year. It is noteworthy that investments in the three catalytic sub-sectors namely electrical and electronics, machinery and equipment and chemical, and two high growth areas – aerospace and medical device, recorded an increase of 90.2 per cent from RM21.5 billion in 2018 to RM40.9 billion in 2019.

Both People’s Republic of China (RM15.3 billion) and the USA (RM14.2 billion) were the two top investor countries in the manufacturing sector in Malaysia and contributed 54.7 per cent of the total foreign investments approved in the sector. The People’s Republic of China was also the largest source of foreign investments in the manufacturing sector for four consecutive years. It is impressive to note that the investments in the manufacturing sector from Taiwan, the USA and Singapore for 2019 have increased seven, four and three folds, respectively.

To date, MIDA has facilitated 85 companies from China as well as from different parts of the world for relocation or redeployment of activities to Malaysia due to the US-China Trade War. Of the total, MIDA has successfully captured 32 projects with investments amounting to RM14.0 billion and seven projects are currently under evaluation with investments valued at RM6.22 billion.

Selangor (RM17 billion) was the largest recipient of investments in the manufacturing sector for 2019, followed by Pulau Pinang (RM16.9 billion), Kedah (RM11.5 billion) and Johor (RM11.5 billion). These four states constituted nearly 70 per cent of total approved investments in the sector last year.

The addition of the 988 manufacturing projects approved in 2019 brings the total number of manufacturing projects approved between 2015 – 2019 to 3,809 projects. Approximately 73.4 per cent of these projects with investments worth RM208.5 billion have been implemented.

Notable projects that were approved last year include a project by Intel that will invest RM10 billion to bring the latest Advanced Assembly and Test technology to Malaysia, as well as an investment by a British-based company, Smith+Nephew that will establish its orthopaedics manufacturing facility in Pulau Pinang. The products manufactured by Smith+Nephew will include knee and hip implants.

Another example of a quality project is the investment from AAC Technologies, the world’s leading solutions provider for smart devices. The company will be producing front end moulds and related components in Johor. This high-value project will create new outsourcing opportunities for local businesses and vendors as well as high-value jobs for Malaysians.

Services Sector

“The services sector continues to be the cornerstone of the nation’s economic growth. Malaysia’s virtues as a hub for business and investment helped draw 4,087 approved projects in the services sector in 2019 with investments of RM118.1 billion. It is noteworthy that although domestic sources dominated approved investments in the services sector, foreign investments have increased by a significant 53.4 per cent, from RM16.1 billion in 2018 to RM24.7 billion in 2019,” said YB Senior Minister and Minister of MITI.

Collectively, the top five contributors of approved investments in the services sector namely the real estate (RM40.9 billion), utilities (RM32.6 billion), global establishments (RM11.8 billion), distributive trade (RM11.7 billion) and support services (RM5.7 billion) represent 87.0 per cent or RM102.7 billion of approved investments in the services sector.

The approved investments for global establishments saw an increase of 57.3 per cent. A total of 169 projects proposing to make Malaysia their regional or global operations hubs were approved last year. These activities, which are expected to create new jobs for 884 knowledge-based or highly technical skilled workers, will also position Malaysia on course for greater integration into the global supply chain.

“Last year, notable services projects approved included two green technology projects by Telekosang Hydro in Sabah, a healthcare project by Daehan Rehabilitation Services in Putrajaya and a hospitality project by Interland Development in Sabah,” said YB Senior Minister and Minister of MITI.

Primary Sector

The primary sector registered approved investments of RM7 billion in 2019, compared to RM10.9 billion in 2018. Mining sub-sector led the bulk of investments in the primary sector, 94.3 per cent of total investments approved in this sector. The rest of the investments in the primary sector comprise the plantation and commodities subsector, and the agriculture subsector, which registered sustainable investments of RM291.4 million and RM135.1 million, respectively.

Bracing for the Future

Malaysia kick-started this year with five approved manufacturing and services projects worth RM4.6 billion. “The priority now is not about the number of investors or absolute value of investments but to bring in high value-added investments that can help to revive the economy. As business as usual approach will no longer work in this challenging environment, a fundamental solution for the country to revitalise the economy is through adopting bold initiatives to ensure impactful accomplishments. Closer partnerships between federal, states and local authorities will be of the essence in facilitating our investors and ensuring the implementation of approved projects. All stakeholders need to make the necessary changes and reengineer processes to deliver more efficient and effective services. Digitalisation and automation is indeed the way forward,” said YB Senior Minister and Minister of MITI.

SOURCE : MIDA

Media Release Investment Performance 2019_FINAL

Media Release Investment Performance 2019_BM_Final

Final Slides AMC 2020

View Investment Data

The objectives of the Lighthouse initiative by MIDA are :
1) To reposition Malaysia to be among the top Global Manufacturing nation with latest technology adoption and innovation
2) MIDA’s continuous effort in driving the Industry 4WRD initiatives towards reality
3) To assist existing Industry sector to become a Lighthouse

This Google Survey Form will collect and register interest from potential Lighthouse companies in Malaysia. You may refer to the guidelines attached.

MIDA LIGHTHOUSE GUIDELINE

MIDA LIGHTHOUSE SLIDE

Source: MIDA