As the principal investment promotion and industry development authority of Malaysia, the Malaysian Investment Development Authority (MIDA) has been leading efforts to secure sustainable investments for both foreign and domestic that will strengthen the country’s business ecosystem. This effort is driven on the back of the nation’s investment agenda to transform Malaysia’s economic activities towards higher-technology and greater added-value pursuits, including producing complex products, high local R&D and innovation, expanding the breadth and depth of domestic supply chain, nurturing technology adoption as well as creating Malaysian conglomerates.
Recognising the prospects of local businesses in driving the economic growth of the country, local companies are urged to build their capabilities by engaging themselves into global supply chains. MIDA believes that by encouraging local players to step up and fill the gaps within the business ecosystems, Malaysia will be better primed to be the choice investment destination within the region for multinational corporations (MNCs).
To achieve this, one of the initiatives undertaken by MIDA is through the formation of a dedicated team, namely the Domestic Investment Coordination Platform or well known as DICP to assist local companies, particularly the small and medium enterprises (SMEs), by bridging potential financial and technology gaps. This team works closely with local regulators, technology providers, financial institutions as well as equity and corporate advisory firms to facilitate local companies to grow their businesses; subsequently, driving more domestic direct investments (DDI) in the country.
The DICP team has successfully engaged various stakeholders across industries through strategic engagement sessions such as business matchmaking, joint venture and mergers and acquisitions (M&A) discussions, capital raising for new projects as well as initial public offering information sessions.
To date, over 160 companies and 50 strategic technology and funding partners have benefited from the DICP team’s facilitation. Notably, the team’s commendable track record include assisting a local steel company in meeting the requirements for listing on the ACE Market of Bursa Malaysia; facilitating the implementation of a large scale solar project by a local company; as well as the successful commercialisation of bio-based products between a research institution and a local SME.
Additionally, the DICP team was instrumental in facilitating the collaboration between a local financial institution and a local fintech/digital technology provider in promoting and supporting the adoption of digital technology by local SMEs.
The team has also facilitated the business expansion for a leading local food exporter through equity funding. Upon reviewing the company’s products and the need for a strategic alliance, the team identified and initiated engagement sessions with a prospective partner. This led to the eventual signing of a non-disclosure agreement (NDA) between both parties.
These examples represent a handful of the engagements undertaken by the DICP team. This pursuit of supporting local companies to enhance their competitiveness and capacity is a necessary endeavour to chart Malaysia’s long term growth into becoming an inclusive and balanced growth nation.
Considering the post-COVID-19, the team anticipates that more SMEs would require assistance from DICP to rationalise and reposition their businesses. This restructuring may take different forms, namely equity financing, joint ventures or M&A undertakings; however, they share the same goal of ensuring these SMEs remain relevant and competitive in an increasingly demanding global marketplace.
Local companies and SMEs are therefore encouraged to leverage this DICP facility by visiting MIDA Sentral or the nearest MIDA State office. More information can also be obtained on the MIDA Official Website at www.mida.gov.my or e-mailing email@example.com.
MIDA is confident that the DICP team will continue with its tenacity to support local companies by spearheading initiatives to develop resilient and sustainable local players.