The American Malaysian Chamber of Commerce (AMCHAM) released the results of its biennial Economic Impact Survey (EIS), which reaffirms the significant impact US companies have on the Malaysian economy. For over 50 years, US investments in Malaysia have been instrumental in driving economic growth and promoting human capital development. Moreover, US companies have announced a slate of new investments across the country that will considerably expand these efforts.
AMCHAM’s Economic Impact Survey demonstrates the success of the policies and initiatives that drive economic activity. The 81 member companies that responded reported employing 148,778 individuals, of which 89 percent are Malaysians, and paying RM 11.7 billion in salaries. In addition to these salaries, AMCHAM members contributed to the future and security of their employees, paying RM1.3 billion towards the country’s EPF and SOCSO.
US companies continually seek to develop local talent and source from local companies, keeping supply chains shorter and deepening their resilience. As such, they actively nurture Malaysians to ensure they are equipped with not only technical and knowledge-based skills but also managerial and service-oriented skills, enabling them to be part of US global value chains. These efforts contribute directly to the goals of the Malaysian government, which are to move up the value chain and create high-paying jobs for Malaysians.
Overcoming barriers of cost and infrastructure limitations, 76 percent of respondents have established internal skills and training programs in Malaysia. Additionally, 65 percent offer fully funded training initiatives, with 23 percent supporting co-funded programs. American companies play a pivotal role in shaping Malaysia’s human capital landscape.
AMCHAM member companies have been highly resilient during these years of recovery. Around 57 percent have experienced increased revenue, and 63 percent anticipate growth in the coming year.
The Economic Impact Survey demonstrates how deeply integrated operations are with the local ecosystem. Manufacturers report a host of local suppliers supporting their operations in Malaysia, with 7291 relationships in contracts over RM100,000, valued at RM22.97 billion.
Additionally, the EIS shows Malaysia as an important hub for manufacturing, with 57 percent of manufacturing members being operationally linked to other ASEAN nations. Singapore, Thailand, and the Philippines see the most activity.
There is also a deepening commitment to Research and Development (R&D). 29 percent of manufacturers have this function within their local footprint and have invested over RM1.9 billion.
Source: https://www.khmertimeskh.com/501455561/amchams-impact-of-us-commitment-to-malaysias-economic-growth/