KUALA LUMPUR – Following the conclusion of the second National Investment Council Meeting (NICM), the government has emphasized the pivotal role of Domestic Direct Investment (DDI) as a primary benchmark in determining the overall national investment strategy.
Prime Minister Datuk Seri Anwar Ibrahim highlighted the potential of strategic DDI to lure more Foreign Direct Investment (FDI), recognizing the significance of DDI as a metric of confidence and dedication of domestic investors in governmental policies. These policies aim to fortify Malaysia's investment and business infrastructure.
The Ministry of Investment, Trade and Industry (MITI) has pledged its commitment to ensuring a harmonious interplay between FDI and DDI, ensuring balanced and sustainable growth across Malaysia. The Prime Minister stressed the importance of fostering a robust domestic industrial framework to guarantee not only a steady GDP growth but also to empower the local economic framework in confronting global challenges, including climate change threats and various post-pandemic and geopolitical disruptions.
The government, as highlighted by the Prime Minister, has launched a plethora of initiatives to spur DDI growth. However, it believes that the pathway to enhanced DDI needs to be expansive. This vision can be realized with the strategic participation and collaboration of Government Linked Investment Companies (GLIC) and Government Linked Companies (GLC). These entities, particularly GLIC with assets exceeding RM1.7 trillion, are pivotal in advancing the development of critical infrastructures, stimulating the growth of diverse new economic sectors, and playing an instrumental role in making Malaysia an enticing destination for foreign investors.
"Recognizing the evident advantages of FDI to Malaysia, it's imperative to also amplify high-quality domestic investments. Such investments are cardinal in bolstering the national economy and fostering the structure of the industrial chain, particularly with a focus on the progression of micro, small and medium enterprises (MSMEs)," the Prime Minister commented.
In 2022, Malaysia saw an investment influx of RM267.7 billion from 4,517 endorsed projects spanning various economic domains. These projects are forecasted to usher in 140,440 job opportunities. Notably, DDI's contribution stands at a commendable RM104.4 billion, encapsulating 38.9% of the total investment. The first quarter of this year exhibited an FDI:DDI ratio of 52.5% and 47.5% respectively, with investment commitments touching RM71.4 billion, marking a 59.7% ascent on a year-on-year basis.
The Prime Minister further elucidated, "The ascendancy in the DDI ratio is indicative of the burgeoning confidence of domestic enterprises and businesses in the present governmental policies."
Concluding the NICM, discussions were held about optimizing the country's Investment Promotion Agency (IPA) landscape by January 1, 2024, and the decision to rejuvenate the Investment Coordination Committee in collaboration between MITI and all IPAs was reached.