Malaysia still a preferred destination for FDI in the region — DHL Express
KUALA LUMPUR: Malaysia remains a preferred destination for foreign direct investment in the region and has attracted increasing interest from multinational corporations (MNCs) aiming to diversify their footprint strategically, says DHL Express Malaysia and Brunei managing director Julian Neo.
Due to the recent geopolitical developments, omni-sourcing has been a key focus for companies across industries as it strengthens supply chain resiliency, he said.
“Contract manufacturers continue to move into the country and we have observed similar expansion by those already here,” he replied to a Bernama question via email.
Citing news report, Neo said Penang alone has attracted over RM60 billion in foreign direct investment (FDI) last year, more than the total received for 2013 to 2020 combined.
He said Malaysia’s key strengths include easy access to key Asian markets, robust consumer demand for international goods and services, institutional support, well-developed infrastructure, sound legal framework, Englishspeaking and digitally native talent, as well as liberal trade agreements.
“Therefore, it is no surprise that the country is rated among the best for globalisation,” he added.
According to DHL Group’s latest Global Connectedness
Report launched on March 13, 2024, Malaysia ranks 26th out of 181 economies, attributable to the growth of its trade flows (imports and exports, across both goods and services) and increases in FDI flows (inward and outward).
Asked if the six per cent service tax on logistics services which came into effect on March 1, 2024 would affect the company’s business in the country, Neo shrugged off the concern, saying that the service tax only applies to domestic shipments and excludes international ones, which is the main remit of DHL Express Malaysia. — Bernama