28 May 2016

Malaysia welcomes investment from companies eyeing AEC

Malaysia is ready to provide support for companies to capitalise on the ASEAN Economic Community (AEC) as it is already the preferred hub for many global companies planning to expand into Southeast Asia, said Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed.

“As Southeast Asia's economic growth flourishes, attention on ASEAN as a competitive and lucrative marketplace, providing access to over 630 million consumers, is rising. We have recently introduced the Principal Hub Scheme to facilitate and incentivise international companies who want a business-friendly launchpad to expand into ASEAN. In addition, our advanced integration levels in the AEC are an important bridge to strengthen trade links and economic ties with our ASEAN neighbours so that we can leverage on the rising demand for seamless interconnectivity that is vital for doing business successfully today,” he said.

"Malaysia adopts an ecosystem approach whereby concerted efforts have been put in place to promote the entire value chain of industry clusters and enhance delivery enablers to support the value chain. A strong and comprehensive ecosystem improves production and logistical efficiency; reduces the cost of doing business and supports greater flow of trade and investment. The importance of the ecosystem approach is further entrenched in the 11th Malaysia Plan (11MP). Under the 11MP, we will continue to ensure that there is a significant leap in investment activities. This ultimately contributes to enhancing the competitiveness of the country and improving the country’s attractiveness for FDI.”

The minister noted that ASEAN has a part to play. “As the region seeks to deepen a nd widen trade ties under the AEC to capture a greater share of global trade, it is essential for ASEAN to work on strengthening and aligning structural reforms related to ease and certainty of doing business, regulatory and legal frameworks, as well as financing and investment facilitation measures across the region,” he added.

“The private sector will continue to be a key driver for the AEC’s realisation and we must now look to implementing long-term strategies, plans and projects, with the due consideration and involvement of industry, government and civil society in the planning and decision-making process," commented Dato' Sri Abdul Wahid Omar, Minister in the Prime Minister's Department.