logo
Malaysia's IMFC expansion aligns with investor trends

Malaysia's IMFC expansion aligns with investor trends

KUALA LUMPUR: Malaysia's decision to expand its Invest Malaysia Facilitation Centre (IMFCs) to Penang and Sarawak is timely and apt, with investor interest shifting towards strategic regional markets, economists said.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan described the IMFC expansion as a strategically sound move to promote regional investment inclusivity.
"With existing IMFCs already in Johor and Kuala Lumpur, adding the centres in Penang - the northern economic gateway - and Sarawak - Malaysia's bridge to the Borneo and wider Asean corridor - demonstrates a commitment to regional investment inclusivity," he told Business Times.
Mohd Sedek said Sarawak's untapped potential in renewable energy, resource-based manufacturing and logistics, with its proximity to the Philippines, Vietnam and Indonesia further enhancing its strategic appeal.
Meanwhile, Penang, a mature hub for the electrical and electronics (E&E) sector, stands to benefit from better facilitation services to expedite high-value project approvals.
"The success of the Johor-Singapore Special Economic Zone (JS-SEZ), partly attributed to proactive investment facilitation, shows how targeted institutional support through IMFCs can directly contribute to investor confidence and project realisation," he added.
Mohd Sedek pointed to successful global benchmarks like Ireland, where IDA Ireland operates over 10 regional and international investment offices, helping attract over €24 billion in foreign direct investment in 2023.
This, he said, demonstrates how a decentralised, regionally tuned facilitation structure can yield measurable economic returns.
However, he stressed that to be truly effective, the IMFCs must adopt a data-driven approach, aligning facilitation services with sectoral roadmaps and local strengths to ensure these centres are not just symbolic, but catalytic in unlocking regional competitiveness.
Prime Minister Datuk Seri Anwar Ibrahim, in a special parliamentary session yesterday, said the government will establish new IMFCs in Penang and Sarawak to facilitate investor's needs and monitor approved projects' progress.
This is a part of the government's strategic plan to safeguard economic stability and protect national over the short and medium term, aiming to accelerate the implementation of development projects and government approvals for investment.
Meanwhile, the Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the IMFC is a comprehensive one-stop centre aimed at expediting investor onboarding and minimising bureaucratic hurdles.
Besides offering incentives, he said the centres need to ensure investors can navigate regulations smoothly, find suitable land to build factory and get the necessary approvals without delays.
"When investors want to invest in one country, it is not just about the incentives. They also look at the regulation and administrative processes.
"In Malaysia, multiple layers of departmental approvals are often required, which can slow things down. What investors are hoping for is that the one-stop centre will help cut through these layers and speed up the entire process," he added.
DRIVING DOMESTIC INVESTMENT MOMENTUM
As of April this year, RM8.5 billion had been allocated, including into venture capital funds as well as in semiconductor projects.
Under the GEAR-uP program, government-linked investment companies (GLICs) have made a commitment to make direct domestic investments (DDIs) worth RM120 billion within five years, with RM25 billion for 2025.
Mohd Sedek said the investments under NIMP 2030 is essential to reduce Malaysia's dependence on foreign capital, especially amid rising global trade tensions and protectionist policies.
"As we've seen this year, trade wars and tariffs can disrupt foreign investment flows. Strengthening DDIs allows Malaysia to gradually build a more self-reliant economy by deepening value-added activities in key sectors like E&E and reinforcing domestic supply chains," he said.
While full self-sufficiency may be ambitious, Mohd Sedek said increasing the investments in stages can serve as an economic buffer, enhancing national resilience - similar to China's drive toward greater economic autonomy.
He noted that Malaysia's medium-term strategy of relying on domestic investment, particularly through GLICs, is broadly sustainable amid global uncertainties and volatile capital flows.
He said it provides a pragmatic buffer by mobilising local capital into infrastructure, digital and green sectors.
However, Mohd Sedek said sustainability depends on disciplined execution - avoiding overdependence on GLICs, ensuring capital efficiency and crowding in private investment.
"Crucially, strong governance is needed to uphold transparency, depoliticise investment decisions and ensure public institutions remain aligned with long-term national and fiduciary objectives.
"Without this, risks of misallocation, market distortion and systemic overexposure may undermine its effectiveness," he added.
Lee highlighted the importance of GLICs not just in driving large-scale projects but also in uplifting local startups and SMEs, enabling them to integrate into regional and global supply chains.
"The real value of foreign investments is when they generate jobs and help raise the capabilities of our domestic industries," he noted.
He also advocated for consistent progress tracking, ensuring that investments translate into tangible economic benefits.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

DayOne secures RM15b multi-currency financing for data centre in Johor
DayOne secures RM15b multi-currency financing for data centre in Johor

Malay Mail

time2 hours ago

  • Malay Mail

DayOne secures RM15b multi-currency financing for data centre in Johor

KUALA LUMPUR, June 11 — DayOne Data Centres has completed its RM15 billion equivalent multicurrency financing, comprising a RM7.5 billion Murabahah Term Financing facility and a US$1.7 billion Offshore Term Loan facility. The signing ceremony for the landmark syndication was witnessed by Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz, OCBC Bank Bhd said in a statement. OCBC Bank and its parent, Singapore-based Oversea-Chinese Banking Corporation Ltd, acted as joint coordinator and mandated lead arranger and bookrunner (MLAB) and green financing coordinator, and OCBC Bank also acted as Joint Shariah Adviser. Structured under the Green Loan Principles, part of the dual-tranche financing will be used to refinance and fund capital expenditure for DayOne's data centres in Johor that meet, or are expected to meet, LEED 'Gold' or higher certification by the United States Green Building Council — setting a new benchmark for green digital infrastructure. Backed by leading institutional investors, DayOne leverages its proprietary technology, global supply chain, deep customer engagement and collaboration as well as strong management expertise to deliver scalable digital infrastructure. OCBC Bank chief executive officer Tan Chor Sen said that as one of the largest integrated financial services groups in the region, OCBC's regional strength enables the bank to support both the onshore and offshore tranches of this landmark Syndication. 'As a key MLAB, we supported DayOne with one of the highest underwriting commitments, reflecting our commitment to fostering a sustainable future that aligns with our leadership in responsible finance,' he said. — Bernama

Johor tops Q1 investment charts with RM30.1b in approved investments
Johor tops Q1 investment charts with RM30.1b in approved investments

New Straits Times

time2 hours ago

  • New Straits Times

Johor tops Q1 investment charts with RM30.1b in approved investments

JOHOR BARU: Johor recorded the highest investment performance in Malaysia for the first quarter of this year, securing RM30.1 billion in approved investments, reinforcing its position as the nation's leading investment destination. The strong showing reflected Johor's economic journey, bolstered by strategic federal and state policies aimed at high-value, future-proof sectors. State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said most of the investment inflow was channelled into high-impact service sectors, such as logistics, data centres and modern business facilities, which aligned with Johor's ambition to become a leading digital and advanced industrial hub. He attributed the success to several ongoing strategic efforts, including the establishment of the Invest Malaysia Facilitation Centre, which has streamlined investor engagement and approvals. Close coordination with key agencies such as the Malaysian Investment Development Authority, Iskandar Regional Development Authority and local authorities has played a critical role in accelerating investment flows, he said today. The Johor-Singapore Special Economic Zone, which continues to attract strong international interest, was singled out as a growth catalyst. Enhanced infrastructure, such as upgraded road networks, ports and reliable energy supply, has further strengthened Johor's investment appeal. "Johor's consistent policy direction and business facilitation efforts are paying off, with greater investor confidence translating into real capital commitments and job creation. "Stable and pro-industry policy frameworks, including the Johor Fast Lane initiative and skilled workforce development through the Johor Talent Development Council, are also major factors," Lee said. The state pledged to maintain its momentum by strengthening its investment ecosystem, ensuring balanced regional development and unlocking inclusive growth opportunities for Johoreans.

Johor tops Malaysia's investment charts with RM30.1b in Q1 2025
Johor tops Malaysia's investment charts with RM30.1b in Q1 2025

Malay Mail

time3 hours ago

  • Malay Mail

Johor tops Malaysia's investment charts with RM30.1b in Q1 2025

JOHOR BARU, June 11 — Johor recorded the highest investment performance in Malaysia for the first quarter (1Q) of 2025, with approved investments amounting to RM30.1 billion, positioning the state as the national leader in investments. State investment, trade, consumer affairs, and human resources committee chairman Lee Ting Han said the achievement was the result of an inclusive and forward-looking investment strategy driven jointly by the federal and state governments. 'A large portion of these investments focused on high-impact service sectors such as logistics, data centres, and modern business facilities, in line with Johor's aspiration to become a hub for the digital economy and high value-added industries. 'This success was also supported by various strategic initiatives, including the establishment of the Invest Malaysia Facilitation Centre as a key facilitator for investors, as well as close collaboration with the Malaysian Investment Development Authority (MIDA), Iskandar Regional Development Authority (IRDA), federal agencies, and local authorities,' he said in a statement uploaded to his Facebook page today. He further added that strategic developments such as the Johor-Singapore Special Economic Zone (JS-SEZ), which has gained attention from international investors, and ongoing improvements to the state's infrastructure such as roads, ports, and energy systems, have also been key catalysts for the increased investments. He noted that consistent and stable policies for investors, including industry-friendly initiatives through the Johor Fast Lane, and the availability of skilled labour through the Johor Talent Development Council, have also played a crucial role in attracting high-quality investments. 'Our highest appreciation goes to all parties who contributed to this achievement, including civil servants, industry players, investment promotion agencies such as IRDA, MIDA, Invest Johor, utility providers like Tenaga Nasional Bhd, Ranhill SAJ, and the business community. 'The Johor state government remains committed to strengthening the investment ecosystem, attract more high-quality investments, creating job opportunities for the people, and ensuring balanced and inclusive developments. 'Johor continues to advance as a new economic powerhouse in the region with sustainable policies and long-term planning,' he said. — Bernama

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store