KUALA LUMPUR: Selangor should leverage on national policy push and enablers to reach its RM500 billion gross domestic product (GDP) in two to three years target, Investment, Trade and Industry (MITI) minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said.
Highlighting the various national level plans, like the recently announced Green Investment Strategy (GIS), he said, all these policy push and enablers will be able to help Selangor achieve its objectives, including that of developing its green manufacturing industry.
"In fact, Selangor's approved investments in the first quarter of 2024 (Q1 2024) of RM12.4 billion makes it one of the biggest investment contributors to Malaysia's first quarter," he said in his keynote address at the 8th Selangor Asean Business Conference (SABC 2024).
Tengku Zafrul said with strong coordination and collaboration between MITI, Invest Selangor and Malaysian Investment Development Authority, he is confident more investments can be attracted into Selangor, and realise these approved investments quickly, and possibly at a realisation rate higher than the national rate.
He said Selangor can leverage on Malaysia's chairmanship of Asean and Asean's position as "darling destination" for investments in manufacturing for the world to attract more investments.
He said Asean has a collective GDP of almost US$3.7 trillion (2022) and ranks as the third largest regional economy in Asia and the fifth largest in the world.
Despite global challenges, foreign direct investment (FDI) inflow into Asean was US$155 billion in 2023.
"Thanks to Asean's neutral stance – FDI flows looks set to remain steady in the coming years, particularly amidst the continued geopolitical conflict between US and China, as well as Ukraine and Russia," Tengku Zafrul said.
He added that Asean also has many other things going for it to attract more FDI into this region, such as its combined population of over 670 million people, out of which 213 million, or 31 per cent, are youths aged 15 – 34 years old, which make up for a young talent pool.
"This demographic dividend is also seen in Selangor, whose working people make up 67 per cent of its population, partly due to its popularity as a 'land of opportunities' for workers from other states," said the minister.
On Malaysia's Asean chairmanship next year,Tengku Zafrul said it was a crucial opportunity to align Asean's direction with our national and state economic policies.
"MITI will lead Malaysia's Chairmanship in the economic pillar, guided by the overarching objectives of the Asean Economic Community (AEC) Council. MITI is in the process of crafting Malaysia's Priority Economic Deliverables or PEDs," he said.
PEDs will be framed around four key strategic thrusts namely enhancing trade and investment between Asean member states, integrating and connecting economies, forging inclusive and sustainable future and transforming the digital future.
"Given Selangor's location within the Klang Valley, its businesses stand a strong chance of leveraging on key events to be held in Kuala Lumpur to elevate themselves and build their regional profile, particularly as MITI and its agencies have been working hard towards making Malaysia a manufacturing and services hub for the region," said Tengku Zafrul. -
Selangor's gross domestic product (GDP) growth at 5.4 per cent in 2023, surpassed national GDP growth of 3.6 per cent.