Image credit: Business Time
KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) has approved business grants amounting to RM138.5 million to 238 companies for domestic direct investments in the first six months of 2022.
CEO Arham Abdul Rahman said the recipients included small- and medium-sized enterprises (SMEs) from labour-intensive industries such as plastics, wood, furniture and textile, while the rest were from the services-related industries.
“New companies should leverage on the growing opportunities in the country and establish their presence in Malaysia,” he said in his welcoming remarks at Mida’s Domestic Investment Seminar Series I (Central Region) today.
Arham said that as Malaysia’s principal investment promotion agency, Mida would continue to work closely with the companies to provide a more conducive environment for business to grow.
He said that this year, Mida would continue its initiative through domestic investment virtual seminars, engagement with national associations and chambers of commerce, industry linkage or supply chain programmes, and domestic coordination platform commitments.
He added that Mida would coordinate business-matching sessions between anchor companies and potential local suppliers or providers within specific industries.
There would also be networking arrangements for companies with potential funders and technology providers.
“Mida has also launched a dedicated SME investment desk in all its state offices to facilitate and coordinate its support services for Malaysian businesses.
“Our digital portal is constantly updated to help decision-makers and potential investors obtain guidance and advice regarding business set-ups and expansion plans in Malaysia,” he added.
Low Kian Chuan, who is president of both the National Chamber of Commerce and Industry Malaysia and Associated Chinese Chambers of Commerce and Industry of Malaysia, said domestic direct investment is an important driver of private investment to complement foreign direct investment.
He said that with SMEs making up 98.5% of total establishments in Malaysia, this has reaffirmed their role as the backbone of the Malaysian economy and industrial development.
“Reviving domestic investment is crucial in raising the economy’s productive capacity, accelerating technological progress, creating employment opportunities and expanding exports with the implementation of the Regional Comprehensive Economic Partnership,” he said.
“Malaysian businesses and industries are here to stay for the more familiar local business conditions, but will also diversify their investments outside Malaysia,” he added.
Low said that while a favourable tax regime and investment incentives help to boost domestic direct investments, the effect is stronger if augmented with a good investment climate and better investment facilitation.
“Also essential is a predictable regulatory environment, backed by stable economic and political conditions,” he added.
Source: https://www.freemalaysiatoday.com/category/business/local-business/2022/07/26/mida-gives-out-rm138-mil-for-domestic-direct-investment/