KUALA LUMPUR: Malaysia needs to strategically acquire and develop its own technology to be counted among develop nations. Deputy Investment, Trade and Industry Minister Liew Chin Tong said that while the foreign direct investment (FDI) is necessary, it’s not an end in itself and Malaysia needs to be strategic in its approach.
“Malaysia thinks that FDI is almost everything and I think that mindset has to change,” he said.
According to the deputy minister, the MADANI Economic Framework, Prime Minister Datuk Seri Anwar Ibrahim highlighted that for over 20 years, investment has constituted only about 20% of the gross domestic product (GDP).
“In contrast, during the early days of economic growth, it constituted around 40% of GDP. At one point in 1997, it rose to about 45%.
“While there were instances of overheating, the key takeaway is that investment is crucial and foreign investment is necessary, but we need to be strategic in our approach,” he added.
Liew stressed that industrialisation cannot just be about exports but also has to have some form of mission to solve societal problems.
“The New Industrial Master Plan (NIMP) 2030 lists 4 missions namely advance economic complexity, tech up for a digitally vibrant nation, push for Net Zero, safeguard economic security and inclusivity, which are all key to transforming Malaysia’s industry into one that is of high productivity, high skill, and most importantly. High wage,” he said.
Liew also highlighted a comparison made by Seoul National University Professor of Economics, Prof Keun Lee on the semiconductor sectors in Taiwan, Shenzhen and Penang, where the sector is still mainly driven my foreign firms.
“In comparison, the sectors in Taiwan and Shenzhen have acquired many more technologies and innovations,” he added.
Meanwhile, Liew said he is glad to see government-linked investment companies (GLICs) paying more attention to the semiconductor industry in Malaysia.
“The semiconductor industry used to be treated as a private-driven investment. Now, the industry has been thrust into the spotlight amid the current geopolitical fight between China and the US due to the growing necessity of having access to advanced chips to power everything from smartphones to electric vehicles (EVs).
“Clearly, the ability to think critically about the way to position and accelerate advancements in semiconductors will have significant implications for trade, investment and geopolitics in the years to come,” he continued.
It is also crucial, Liew said, to develop horizontal industrial linkages with Malaysia.
“For example, the mature semiconductor industry in Malaysia should form a basis for developing the automotive industry, including EVs and agritech,” he said, adding that Malaysia is at the brink of a second economic takeoff built upon the development of a high productivity, high skills and high wage model.
— BERNAMA
