More International MNCs Choosing Malaysia for Regional Expansion
Kuala Lumpur wows many with its world-class facilities, charming investors and visitors alike with its unique cultural mix and warm welcome. With the birth of Greater Kuala Lumpur, more foreign investors are looking to invest in Malaysia. Greater Kuala Lumpur continues to attract with the help of Invest KL Malaysia.
Malaysia has seen an influx of ever-increasing investment since 2011 as more and more global multinationals corporations (MNCs) are committing to investing in Malaysia. To date, 91 MNCs have set up an office in the country with approved investments of up to RM14 billion. The country’s investment promotion agency, Invest KL actively highlights Malaysia’s offering to global MNCs. Foreign direct investments have helped create almost 13,000 high skilled jobs benefit Malaysians. With more locals acquiring specific skillsets to certain industries, it makes the local workforce more desirable to large corporations operating in the country. The higher the skillsets of the labour force, the better their wages. This, in turn, leads to better overall living standards.
InvestKL has a mandate of achieving 100 MNCs by the end of the year 2020, and it is on target to achieve that milestone. The number of global MNCs choosing Malaysia proves that foreign investors are confident with the country’s business and governance environment. However, due to the global effects of pandemic Covid-19, the agency revising to improve value propositions for the investment strategies. In 2019 alone, InvestKL drew the attention of 13 high technology and high-value MNCs, which contributes to the services sector in the country. For the year 2020, the target is to reach 13 MNCs in top impact sectors. The segments are smart technology, medical technology and devices, consumer and industrial products and renewable energy.
Whenever there are foreign direct investments, Malaysians secure better jobs with significant skillsets. Apart from that, local businesses in real estate, tourism, medical, hospitality, education and entertainment sectors are enjoying the spillover benefits as well. For example, the real estate sector enjoys an estimated RM156 million of annual rental income for office space in 2019 as these MNCs occupy up to 50 floors on each of the Petronas Twin Towers.
Despite All Odds
Despite Covid-19, Malaysia continues to engage in discussions with potential investors from Europe, the US and China. Although some investors are adopting the wait and see approach, many others remain committed. Malaysia’s economic foundation continues to be robust and attractive for attracting the right MNCs to help grow the economy.