Malaysia has been hit hard by the Covid-19 pandemic. The economy is facing new and oppressive challenges that threaten to ruin its business ecosystem. Despite this, the Malaysian Investment Development Authority (MIDA) is confident that Malaysia continues to be a preferred investment destination by the international business community.
Deputy chief executive officer Ahmad Khairuddin Abdul Rahim said as at December 2019, there were 4,764 manufacturing projects implemented in Johor with investments totalling RM166 billion.
“More than half of these investments worth RM88.4 billion were from foreign sources. These projects have been instrumental in creating over 502,700 jobs, mainly in the fields of petroleum products, including petrochemicals, electrical and electronics (E&E) products, food manufacturing, basic metal products, as well as chemical and chemical products,” said Khairuddin in a webinar titled: “Invest Series: Unfolding States’ Business Potential, A Briefing By Johor State Government”.
He also stated that within the first half of 2020, Johor remained among the top states in regards to manufacturing projects with the highest approved total investments.
Khairuddin also mentioned that the challenges brought forth by the Covid-19 pandemic has compelled businesses of all sizes to rethink and re-evaluate their business models.
However, he also said that the new normal has also presented businesses with new opportunities to find innovative ways to optimise operational efficiency and build resilience by leveraging new digital technologies. In this respect, one could say the the Fourth Industrial Revolution is still going strong.
He said MIDA has introduced the Lighthouse initiative, a concept of modelling global MNCs that have embraced digital manufacturing and globalisation 4.0 in their business model and entire supply chain.
“We hope that more local companies will be integrated into similar lighthouse operations and become trusted suppliers of MNCs’ supply chain networks,” he said.
Khairuddin also states that Malaysia is more than capable of being a prominent global supply chain hub thanks to a mix of prominent competitive advantages, a strategic location, efficient trade infrastructure, a well-connected business ecosystem, as well as a skilled workforce for companies to leverage.