PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has announced that the government is committed to realizing the Madani Economic narrative, which aims to establish Malaysia as a globally competitive investment destination. To achieve this, the Investment, Trade and Industry Ministry (Miti) will lead efforts in reducing duplication among investment promotion agencies (IPAs) by the end of 2023. The focus will be on hand-holding investors, both domestic and foreign, and streamlining the IPAs to translate approved investments into realized foreign and domestic direct investment. Additionally, the government will actively issue Strategic Investor Pass (SIP) to grant investors multiple-entry access into Malaysia. Anwar stated that strategic investors identified by the Malaysian Investment Development Authority will be able to stay in the country for a minimum of five years, with a possible extension for another five years.
In addressing critical skill shortages, the government plans to extend the scope of the Digital Nomad Professional Visit Pass to cover manufacturing-related skill sets. This pass will allow eligible professionals, such as electrical and electronic integrated circuit designers, to freelance in Malaysia for up to two years. Anwar made these announcements during the Budget 2024 engagement session.
Anwar highlighted the government’s success in economic management, citing positive ratings from international credit rating agencies such as Fitch, Moody’s, and S&P Global Ratings. These agencies have maintained Malaysia’s rating at A- with a “stable” outlook. Furthermore, Malaysia’s economy experienced a 5.6% growth in the first quarter of 2023, outperforming regional countries like Indonesia, China, and Vietnam. Anwar also emphasized the government’s efforts to control prices and maintain consumer subsidies, resulting in a downward trend in the inflation rate.
The government’s main focus is on rebuilding investor confidence to stimulate economic growth and create better job opportunities with higher salaries for the people. Anwar noted that investment approvals in the first quarter of 2023 reached RM71.4 billion, a 60% increase compared to the same period last year. He also mentioned significant investment commitments from countries like Singapore (RM13 billion), South Korea (RM24 billion), China (RM170 billion), and Japan (RM23 billion) as a result of trade and investment missions.
Regarding budget expenditure, Anwar revealed that as of June 2023, RM188 billion or 49% of Budget 2023 had been spent. This marks an improvement compared to the RM170 billion spent during the same period in Budget 2022. However, Anwar expressed the need for further improvement to meet the target of reaching 60% of the budget by August. To achieve this, the government has implemented measures such as decentralization of power, additional allocations, and flexibility in procurement procedures to expedite project implementation.
Some of the specific measures include delegating RM50 million projects to the Sabah and Sarawak technical departments, providing RM100,000 to district engineers for minor repairs at the district level, and allocating RM200 million for the Malaysian Armed Forces Engineering Corps. Anwar also announced that there will be additional allocations for the General Operations Force, the police housing programs, small projects under local authorities (amounting to RM100 million), and maintaining and repairing schools (increased by RM600 million, bringing the total to RM1.5 billion for the year).
Credit: The Star : Business Feed
