Wawasan Kemakmuran Bersama 2030 – daripada Dasar kepada Pelaksanaan

Forum Ekonomi Shah Alam (FESA) Wadah Selangor, 14 November 2019

Yang Berbahagia, Pengerusi WADAH,

Hj. Nik Mohd Yusoff Nik Ismail

Yang Berusaha, Pengarah Forum Ekonomi Shah Alam (FESA)

Prof. Dr. Saadian Mohammad

Ahli-ahli parlimen, ahli-ahli dewan negeri Selangor, pengarah-pengarah dan para pegawai agensi kerajaan, Persekutuan dan Negeri Selangor, Pimpinan-pimpinan parti politik dan NGO serta hadirin hadirat yang dikasihi sekalian.

1. Pertamanya, saya ingin mengucapkan terima kasih kepada WADAH Selangor kerana menjemput saya ke forum hari ini yang bertajuk “Ekonomi Manusiawi: Langkah Ke Arah Status Harimau Asia”. Ini adalah satu penghormatan kepada saya kerana dapat berucap di forum yang membincangkan satu topik yang penting. Saya juga ingin mengambil kesempatan ini untuk mengucapkan tahniah kepada WADAH Selangor kerana menganjurkan forum hari ini supaya kita dapat mengadakan perbincangan yang terbuka dan telus mengenai cabaran ekonomi yang sedang dihadapi negara kita pada hari ini.

2. Saya mahu mengambil kesempatan hari ini untuk mengaitkan tajuk forum hari ini dengan satu dasar yang diumumkan baru-baru ini oleh Perdana Menteri iaitu “Wawasan Kemakmuran Bersama 2030”. Wawasan Kemakmuran Bersama 2030 perlu difahami dengan sebaiknya supaya langkah-langkah yang tepat dapat diambil untuk memastikan PELAKSANAAN dasar yang baik. Hanya dengan pelaksanaan dasar yang baik dapat memastikan wawasan ini dapat dicapai. Dan apabila wawasan ini berjaya direalisasikan, kita juga akan sekali lagi dapat melihat Malaysia diiktiraf sebagai ‘economic tiger’ yang dinamik di Asia.

3. Tidak dapat dinafikan bahawa ekonomi Malaysia telah mengalami transformasi yang dramatik sejak 40 tahun yang lalu terutamanya semasa tempoh pertama Dr. Mahathir sebagai Perdana Menteri dari 1981 hingga 2003. Pada masa yang sama, terdapat persepsi bahawa ekonomi Malaysia tidak banyak berubah atau ‘stagnating’ sejak 10 tahun yang lalu. Walaupun secara perlahan, kita dilihat hampir pasti akan kalah kepada negara-negara jiran kita di Asia termasuk Korea Selatan dan China. Di Asia Tenggara, Vietnam dan Indonesia sedang pantas mengejar kita daripada segi pembangunan ekonomi dan daya saing. Malaysia terperangkap dalam “middle income trap”

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Turning Point for the Electrical and Electronics (E&E) Industry in Malaysia? Part 2

Media Statement by Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI) on the 30th of July, 2019

In part 1 of my media statement, I explained the importance of the E&E industry to the larger Malaysian economy and how this sector has evolved over time.[1] In Part 2 of my statement, I will highlight some of the key challenges and opportunities for this sector in Malaysia in the context of global trade and economic uncertainties.

  • Capturing new and higher value-added investments from existing players

An investment by a new company worth RM100m, especially if it is a well-known global brand, can generate more publicity in Malaysia compared to a re-investment by an existing player worth RM1 billion. In some ways, this is understandable given our larger fascination with new, bright shiny objects compared to older and duller toys, so to speak. But as the saying goes, “a bird in hand is (sometimes) worth two in the bush” meaning to say that we should not forget the importance of existing players while we aggressively pursue new investments.

Many of the existing players in the E&E industry in Malaysia are well-known multinational companies (MNCs) with operations in many countries. And these companies can choose between various locations, including Malaysia, for their future expansion plans. The attractiveness of tax and other related incentives would be one the factors influencing global HQ investment location decisions. The challenge here is for the respective management teams in Malaysia to make a pitch to their global HQs for these new investments in competition with their colleagues from other countries. The pushback from the Malaysian authorities which the local teams are facing is to show that their investments involve higher value-added products and processes deserving of new incentives.

Continue reading “Turning Point for the Electrical and Electronics (E&E) Industry in Malaysia? Part 2”

Turning Point for the Electrical and Electronics (E&E) Industry in Malaysia? Part 1

Media Statement by Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI) on the 30th of July, 2019

The report in June 2019 that Apple was mulling a 15-30% supply chain shift out of China and that Southeast Asia was a potential relocation destination created a lot of media interest in Malaysia.[1] What could the Malaysian government do in order to pull some of these investments onto our shores? How ready is our local E&E industry to capture part of Apple’s value chain? Which companies could be potential beneficiaries? These questions are part and parcel of a larger debate regarding the E&E sector in Malaysia. The industry is facing a turning point in its development, and the US-China trade war has created a unique window of opportunity which can catalyse the development of the entire industry in Malaysia for decades to come.

Contribution to the Economy

Before we delve into the future prospects of the E&E industry, it is important to contextualise the current role which this sector plays in the Malaysian economy. The E&E sector’s contribution to the overall health of the country’s economy goes far beyond its 5.4% share of GDP in 2018 (RM78b out of a RM1.4 trillion economy). It is BY FAR, the largest driver of exports in Malaysia. 38.1% of the almost RM1 trillion in exports in 2018 came from the E&E sector. Manufactured petroleum products comes in at a distant 2nd with 7.7% of total exports in 2018.

It is also a DISPROPORTIONATE contributor to the nation’s trade surplus. Out of the RM120.5b trade surplus enjoyed by Malaysia in 2018, 99% or RM119.2b was generated by the E&E sector. Without the contribution of the E&E sector, Malaysia would have experienced the ‘twin deficit’ phenomenon – a budget as well as a trade deficit and this would likely have had an effect on foreign investor confidence. Many would be surprised to learn that Malaysia’s largest export to China is not palm oil or agriculture or petroleum products but products from the E&E sector. This is also one of the few sectors where Malaysia enjoys with trade surplus vis-à-vis China.

Continue reading “Turning Point for the Electrical and Electronics (E&E) Industry in Malaysia? Part 1”