MIDA committed in reaching out to potential investors

KOTA KINABALU: The Malaysian Investment Development Authority (MIDA) is committed to reach out to potential investors by providing updates on the latest initiatives that have been put in place by the government.

Azman answering questions from the media during the press conference.

Its Deputy Chief Executive Officer I, Dato’ Azman Mahmud said this in his speech yesterday on the ‘Seminar On Investment Opportunities In High Growth Sectors In Sabah’ at The Pacific Sutera, which was attended by 200 participants from various companies all over the state.

He added that the seminar also has the objective of promoting and creating new investments in the state of Sabah.

“The need to push for more domestic investments has now become a very important agenda of the government, especially when the current global economy is going through a lot of uncertainties.

“The government will continue to support and to spur the growth of domestic investments and to that effect, some of the initiatives undertaken by the government to drive the expansion of domestic investment,” said Azman.

The expansion of the domestic investments, he said, also includes identifying specific sectors and new growth areas for support; reducing the cost of doing business by removing regulatory obstacles; simplifying rules and procedures while also promoting transparency and accountability in the government’s delivery system.

“Providing a wide range of fiscal and non-fiscal incentives, promoting SME development, and improving security and safety in the country were also listed in the expansion,” he said.

According to Azman, the state government has identified several high-growth sectors namely Furniture, Tourism, Oleo-Chemicals and Renewable Energy.

In a press conference, he urged Sabahans to take the opportunity to really engage and study the details of all the funds’ incentives which has been introduced by the government.

“Holistic allocations and incentives has been introduced by the government to encourage Sabah companies to challenge themselves with all this new and additional programmes so that it can benefits from the initiatives by the government,” he added.

When asked if there will be any quota on all the allocations or funds for Sabah, he said, the fund is intended to be given to all the early birds and eligible companies.

“Once we applied, we don’t have the specific allocation in a state. For example, if more companies in Sabah that is eligible apply for it, then Sabah will get more,” he said.

Azman added that the Prime Minister recently has announced a number of incentives for the Sabah Development Corridor have been allocated to seven areas all over the state.

“I was informed that another seven potential areas in Sabah had been chosen to the incentives. Some of it are the integrated life-stock in Keningau, Sabah oil and gas in Sipitang, Sandakan education hub and others,” he added.

Meanwhile, Azman said the current focus of the Malaysian government is towards attracting quality investments.

He said the government is encouraging investments in new growth areas and emerging technologies, capital intensive, high valued-added and high technology, knowledge-based and skill-intensive industries, in line with the government’s effort to transform Malaysia into a high income nation by 2020.

He said for the period of January to September this year, the total approved investments at the national level in the manufacturing sector amounted to RM31.9 billion in 582 projects; out of this total, RM15.8 billion or 49.5 per cent were from domestic sources, while RM16.1 billion or 50.5 per cent were from foreign direct investments (FDIs).

“Approved investments were mainly in the chemical and chemical products, transport equipment, electronic and electrical products, food manufacturing and basic metal products.

“Approvals in the manufacturing sector are expected to create 56,426 employment opportunities, including skilled personnel,” he said.

For Sabah, he added, the approved investments in the manufacturing sector from January – September 2012 were valued at RM4.8 billion.

“Of this amount, RM4.63 billion or 95.6 per cent were from domestic sources while 3.3 per cent or RM208 million were from FDIs,” he said.

Therefore, he said, investors, particularly in Sabah, are encouraged to explore investment opportunities in these areas, either on their own or in the form of joint ventures with foreign investors.