The Investment, Trade and Industry Ministry (MITI) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled 3 of the main indicators set.
Following the launch of NIMP 2030 on 1 September 2023, the manufacturing sector’s value added to the gross domestic product (GDP) rose by 4.7% (RM4.2 billion), as of the second quarter of 2024 (2Q24) against the same period in 2023 while the number of jobs increased 0.9% (200,000 jobs).
Meanwhile, the median salary for the sector improved by RM201 or 8.2% year-on-year (YoY) in the first quarter of 2024 compared with the same quarter last year.
Under the NIMP 2030, MITI targets to hit manufacturing sector value added of RM587.5 billion, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.
“Nearly all key performance indicators (KPIs) for 2024 have been mat. There’s still a lot of work to be done, and while we still have 5 years to go, time is becoming shorter and the economic situation is getting more challenging,” said MITI minister Tengku Datuk Seri Zafrul Abdul Aziz.
Under Mission 1 (Economic Complexity), Zafrul said that MITI has achieved commendable progress in efforts to strengthen the country’s position in the global semiconductor landscape through 2 key action plans that supports this mission, creating global integrated circuit (IC) champions from Malaysia and attracting global firms to establish wafer fabrication facilities.
He said that in 3Q, a total of 500 engineers and 557 technical workers have been trained to strengthen the nation’s technical expertise in IC design and semiconductor production.
“A total of 4,673 people have been hired, comprising 1,130 engineers or technical experts. Technical workers made up 9&% of the total hired, reflecting a rise in technical talent.
“This initiative has also attracted large investments totalling RM35.6 billion (in 3Q), comprising RM970 million in direct domestic investment, a major step towards building the nation’s capability in this critical sector.
Under the Chemical Industry Roadmap 2030, Malaysia’s chemical industry attracted investments worth RM3.1 billion in the January-June 2024, up more than 82% from RM1.7 billion in the previous year.
In addition, the chemical sector contributed RM55.3 billion to exports from January-September 2024, a growth of 4.3% YoY.
Meanwhile, on NIMP 2030’s Mission 2 that focuses on digital investments, Zafrul said there is an increasing trend, with more than 64,000 job opportunities created from the RM185 billion of investments approved from 2021 to 2Q24.
Youth will get access to jobs as well
According to the minister, the government is committed in ensuring that youths have access to jobs which commensurate with their training and that no region is underserved in terms of digital exposure.
However, Zafrul advised that graduates would need to acquire dynamic skill sets and adopt new job trends.
Likewise, he said the government will implement policies that attract businesses and investments, creating complex, high-value jobs, including the New Industrial Master Plan 2030 and the National Energy Transition Roadmap.
“Whether it is through innovation in artificial intelligence (AI) entrepreneurship in green technology, or leadership in advanced manufacturing, you (youth) are the ones who will shape the Malaysia of tomorrow.
“This is your time. You have the opportunities, the tools, the enablers and he drive to thrive in new economy,” Zafrul said, noting that while the government’s role is to help youths succeed, it is up to the youths themselves to step up and take ownership of Malaysia’s future.
“I want to remind you that the new economy we are building is not just for you – it is with you.
“We are laying the foundation for an economy that is resilient, competitive and inclusive, driven by technology, sustainability and innovation,” Zafrul added.
At the same time, the minister said the youth could make a difference in strengthening ASEAN’s future role in the new global order, as Malaysia will be ASEAN’s chair next year.
He further said that with nearly 50% of ASEAN’s 680 million-strong population below the age of 30, ASEAN’s demographic dividend is set to drive growth.
US-Malaysia economic ties to create 312,000 new jobs
Additionally, over the last decade, the economic relationship between the United States (US) and Malaysia has grown remarkably, resulting in the creation of more than 312,000 jobs, with the US being leading source of foreign direct investment (FDI) in Malaysia.
According to US Embassy economic counselor, Dave Williams, American companies have announced over RM200 billion in new investments since 2021 with 72% coming from Fortune 500 companies.
“Just this year, Google, Microsoft, Amazon and Oracle have announced more than US$16 billion worth of investments in Malaysia.
“These quality investments not only bolster the local economy but also create thousands of jobs for Malaysians,” he said, adding that recent announcements and groundbreaking of new major investments in Malaysia underscores the strong confidence that US companies have in Malaysia as a prime investment destination.
“US companies are attracted by Malaysia’s highly skilled workforce, widespread English proficiency, strategic location and robust network of suppliers and supply chain partners,” he continued.
I was reported that both countries also highlighted their interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, agriculture, SME development, capacity-building, healthcare cooperation and vaccine research cooperation.
