KUALA LUMPUR (May 18): InvestKL has successfully attracted 91 global multinationals (MNCs) with approved and committed investments of RM13.95 billion, as well as the creation of 12,584 regional high-skilled jobs since 2011.
This comprised 91% of InvestKL’s 2020 mandate and the corporation is cautiously optimistic of achieving its target of 100 MNCs by year-end.
In a statement, Senior Minister and Minister of International Trade and Industry Datuk Seri Azmin Ali said this was testament of foreign investors' confidence in the country's business and governance environment.
Azmin, however, cautioned that with the Covid-19 pandemic and the generally negative impact on foreign direct investments globally, InvestKL will need to recalibrate and add greater value propositions to its investment strategies.
InvestKL chief executive officer Muhammad Azmi Zulkifli said, “In 2019, InvestKL attracted 13 high-tech and high value MNCs, contributing to the services sector in Malaysia which continues to be the cornerstone of the nation’s economic growth. With approved and committed investments of RM2.2 billion, a total of 1,308 regional jobs were created.”
Of the 13 MNCs, 70% are from the US, UK and Europe. These Fortune 500 and Forbes 2000 companies are Edwards Lifesciences Corp (US), Splunk (US), General Electric (US), Astra Zeneca (UK), ABB (Swiss-Swedish); Schindler (Swiss), CMA CGM (France), TUI (Germany), and SCM (Italy). The remaining 30% comprised Asian corporations such as Daifuku (Japan), Vanke (China), CRRC Corp (China), and SRKay Consulting (India).
In the eight years from 2011-2019, RM8.1 billion or 58% of the RM13.95 billion investments have been realised. In addition, 8,858 or 70% of the 12,584 high skilled regional jobs are already on the payroll with an average annual income of RM141,622.
Year 2011 to 2019:
| Investments | Total: RM13.95b | Realised: 58% or RM8.1b |
| High skilled regional jobs | Created: 12,584 | Regional jobs on payroll: 70% or 8,858 with average annual income of RM141,622 |
The real estate, hospitality, education, medical, tourism, and entertainment sectors have all benefitted from the MNCs’ investments, value-adding to local businesses.
“The real estate sector enjoyed an estimated RM156.8 million of annual rental income for office space in 2019, or equivalent to these MNCs occupying some 50 floors on each of the Petronas Twin Towers,” Muhammad Azmi said.
Malaysia’s fundamentals remain strong and attractive to investors
Despite Covid-19, InvestKL is maintaining its 2020 target to attract 12 high-value, high-tech and high-impact MNCs to invest in Kuala Lumpur. The agency is targeting investments in sectors such as technology, consumer and industrial products, medical devices, medical technology, smart technology and renewable energy.
Muhammad Azmi said Malaysia’s fundamentals remain strong and attractive to investors, and InvestKL remains in active discussion with potential investors from the US and Europe despite the pandemic. Although some investors are taking a wait-and-see approach, others remain committed to their investments as they view the situation long term.
“In addition, China is open for business, and this is good news for us. We are in talks with Chinese companies and global MNCs from the technology, logistics and manufacturing sectors [which] are interested to expand their capacity or set up regional headquarters here,” he added.
Covid-19: MNCs’ aid to Malaysia
MNCs are also doing their part to aid the Covid-19 fight in Malaysia. Bertling, a German MNC, has stationed a 40-feet refrigerated container at the KL City Centre Enforcement Unit, the centre for the city’s frontliners.
“Our frontliners can just help themselves anytime to the food, drinks, dairy products, fruits and other nourishment in the mobile cold storage. The food is replenished regularly, thanks to our MNCs [which] are responding generously to our call for donations,” Muhammad Azmi said.
He also said MNCs have donated personal protective equipment, face masks, disinfectant hand gels, and thermometers to the various government ministries.
These MNCs include German corporation Linde, which contributed RM100,000 to the #COVID19 fund by the Ministry of Health, on top of donating face masks. China companies such as Vanke and China Pacific Construction Group contributed personal protective equipment and face masks. Meanwhile, Oleon, a Belgian MNC, donated disinfectant hand gel.