KUALA LUMPUR: Deputy Prime Minister Datuk Seri Fadillah Yusof has encouraged multinational companies investing in Malaysia to collaborate with local small and medium enterprises (SMEs).
Fadillah who is also the Energy Transition and Water Transformation Minister, clarified that while the national procurement policy for government projects prioritises local content and products, this requirement does not extend to foreign investments.
"We encourage them (to use local products). Although it's not obligatory, it is economically easier and more competitive for companies to source locally," he said.
Fadillah added that the Ministry of Investment, Trade and Industry (MITI) is actively facilitating partnerships between foreign investors and local industry players across various sectors, including services.
"In government procurement, it is mandatory to source local content. However, in investment, imposing such conditions as obligations could deter investors who may perceive it as a restriction," he told reporters after attending the Malaysian Pan Pacific Economic Forum.
The government is engaging with investors to ensure they understand the benefits of working with local partners, and Fadillah is confident they will find reliable local collaborators.
In the Budget 2025 debate speech in the Dewan Rakyat yesterday, former finance minister Lim Guan Eng (PH-Bagan) called on the government to mandate that foreign investors and contractors, particularly those awarded government and private tenders, source supplies or raw materials from local SMEs.
Lim highlighted Indonesia's policy of requiring foreign investors and contractors to source 70 per cent of their supplies locally, and suggested a lower threshold of 50 per cent for Malaysia, with exceptions only when goods are unavailable locally. – BERNAMA