A leading global logistics company and the Malaysian Investment Development Authority (Mida) have signed a memorandum of understanding (MoU), enhancing the country’s position as a prime location for high-quality foreign direct investment.
According to Mida’s deputy CEO of investment promotion and facilitation, the agreement intends to strengthen Malaysia’s position as an alternative supply chain center in this region.
“This collaboration is important to Mida because we need to position Malaysia as a global production house as well as a regional and global distribution hub,” he added.
Through the partnership, both parties will be ready to step up their collaborative efforts to drive overseas inflows of capital, infrastructure, and knowledge to boost key priority industries, including electrical and electronics, pharmaceuticals, the digital economy, aerospace, and chemicals.
According to Mida’s chairman, the agreement symbolised the fortification of the strong collaboration between Mida and the global logistics company despite the unforeseen difficulty of Covid-19.
“We are optimistic that this dynamic public-private cooperation will strengthen investor confidence and increase business opportunities.
In accordance with our country’s New Investment Policy, he hoped that the agreement would contribute to the development of a “continuous sustainable stream of quality investment activities in the country.”
Malaysia ranks second in trade connectivity in Southeast Asia and 14th out of 171 economies worldwide, according to the latest global logistic company assessment on trade flow, people, capital, and information globally.
A representative from the global logistics company said, “With a presence spanning 220 countries and territories, the global logistics company is well equipped to support companies looking to diversify their supply chains in Malaysia.”
Malaysia had RM264.6 billion in approved investments in 2022 from 4,454 projects, with the services sector accounting for the majority of these investments with RM154 billion.