Malaysia to allocate RM8.2 billion to fund national industrial master plan
Tan Ai Leng
[KUALA LUMPUR] The Malaysian government will allocate RM8.2 billion (S$2.4 billion) to a national industrial master plan aimed at enhancing manufacturers’ competitiveness, Prime Minister Anwar Ibrahim said on Friday (Sep 1).
The New Industrial Master Plan (NIMP) 2030 is expected to help attract more domestic and foreign direct investment.
Anwar said the implementation of the master plan will require an estimated investment of RM95 billion over seven years, with funding predominantly from the private sector. The government’s seed funding is intended to “catalyse and incentivise these investments”.
The money will be channelled into two new funds: the NIMP Industrial Development Fund, and the NIMP Strategic Co-Investment Fund.
Other incentives for NIMP 2030 will be announced at the tabling of Malaysia’s 2024 Budget, said Anwar at the launch event. The Malaysian government is expected to table the Budget in Parliament on Oct 13.
NIMP 2030 is the government’s fourth national industrial master plan. It has four key missions: to advance economic complexity; to “tech up” for a digitally vibrant nation; to push for net zero; and to safeguard economic security and inclusivity.
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“Nine mission-based projects have been identified as catalytic projects to create the initial momentum of the master plan’s implementation,” said Malaysia’s Minister of Investment, Trade & Industry Tengku Zafrul Abdul Aziz.
Among these projects are: building a global centre for integrated circuit design for electric vehicles (EVs), renewable energy and artificial intelligence (AI); establishing a generative AI hub; attracting new advanced wafer fabrication to Malaysia; and launching locally manufactured EVs.
“The NIMP’s action plans are crafted to be more targeted for greater impact. Our emphasis is on effective execution, supported by clear enablers,” Zafrul said.
NIMP 2030 is also expected to help small and medium-sized enterprises develop their capacity to participate in higher value-added opportunities, as well as adopt technology to increase productivity and reduce reliance on low-skilled labour.
“The manufacturing sector continues to be a cornerstone of Malaysia’s economy and will serve as a key engine of growth to drive the nation’s next phase of economic expansion,” the minister said.
In the second quarter of 2023, the manufacturing sector accounted for nearly 24 per cent of Malaysia’s GDP. It contributed 80 per cent of total exports and employed around 17 per cent of Malaysia’s total workforce, said the Ministry of Investment, Trade and Industry.
With the implementation of NIMP 2030, Anwar estimated the value of the country’s manufacturing sector could increase 6.5 per cent to RM587.5 billion by 2030.
“This indicates an increase of 61 per cent derived from NIMP 2030 interventions in high-impact sectors: electrical and electronic, chemicals, EV, aerospace, pharmaceuticals, and advanced materials such as minerals and metals,” he added.
He also projected that the median salary for the manufacturing sector would grow by 9.6 per cent, to reach RM4,510 per month by 2030, from the current level of RM1,976.
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