Malaysia attracts 91 MNCs with nearly RM14bil investments

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Kuala Lumpur, 18 May 2020 – Malaysia, through InvestKL Corporation Sdn Bhd, has attracted 91 global multinationals (MNCs) with approved and committed investments of RM13.95 billion since 2011.

InvestKL said the 91 MNCs had created 12,584 regional high-skilled jobs since 2011.

“This comprised 91 per cent of InvestKL’s 2020 mandate and the corporation is cautiously optimistic of achieving its target of 100 MNCs by year-end,” it said.

Senior Minister and Minister of International Trade and Industry Datuk Seri Azmin Ali said this achievement was a testament of foreign investors’ confidence in the country’s business and governance environment.

Azmin, however, cautioned that with the Covid-19 pandemic and the generally negative impact on foreign direct investments globally, InvestKL would need to recalibrate and add greater value propositions to its investment strategies.

InvestKL chief executive officer Muhammad Azmi Zulkifli said in 2019, it had attracted 12 high-tech and high value MNCs, contributing to the services sector which continues to be the cornerstone of the nation’s economic growth.

Of the 13 MNCs, 70 per cent were from the US, the UK and Europe.

In the eight years from 2011-2019, RM8.1 billion or 58 per cent of the RM13.95 billion investments had been realised.

In addition, 8,858 or 70 per cent of the 12,584 high skilled regional jobs were already on the payroll with an average annual income of RM141.622.

Azmi said with approved and committed investments of RM2.2 billion, a total of 1,308 regional jobs were created.

“In addition to offering regional jobs and upskilling Malaysians, the 91 MNCs have significantly value-added to local businesses. The real estate, hospitality, education, medical, tourism, and entertainment sectors have all benefited.

“The real estate sector enjoyed an estimated RM156.8 million of annual rental income for office space in 2019, or equivalent to these MNCs occupying some 50 floors on each of the Petronas Twin Towers,” he added.

Meanwhile, Azmi said Malaysia’s fundamentals remained strong and attractive to investors despite Covid-19.

He said InvestKL was maintaining its 2020 target to attract 13 high-value, high-tech and high-impact MNCs to invest in Kuala Lumpur.

“The agency is targeting investments in sectors such as technology, consumer and industrial products, medical devices, medical technology, smart technology and renewable energy.

“We remain in active discussions with potential investors from the US and Europe despite Covid-19. Although some investors are taking a wait-and-see approach, others remain committed to their investments as they hold a long-term view.

“In addition, China is open for business, and this is good news for us. We are in talks with Chinese companies and global MNCs from the technology, logistics and manufacturing sectors who are interested to expand their capacity or set up regional headquarters here,” he said.

Apart from that, he said German MNC, Bertling, had stationed a 40-feet refrigerated container at the KL City Centre Enforcement Unit, the centre for the city’s frontliners.

“Our frontliners can just help themselves anytime to the food, drinks, dairy products, fruits and other nourishment in the mobile cold storage.

The food is replenished regularly, thanks to our MNCs who are responding generously to our call for donations,” Azmi said.

He also said MNCs had donated personal protective equipment, face masks, disinfectant hand gels, and thermometers to the various government ministries.

These MNCs included German corporation, Linde which contributed RM100,000 to the #COVID19 funded by the Ministry of Health, on top of donating face masks.

China companies such as Vanke and China Pacific Construction Group contributed personal protective equipment and face masks.

Meanwhile, Belgian MNC, Oleon donated disinfectant hand gel.

-New Straits Times