RM7b manufacturing sector investments goal

> Selangor optimistic of hitting target for this year, with RM1.8b projects already in the bag

KUALA LUMPUR: Invest Selangor Bhd is targeting RM7 billion worth of investments in the manufacturing sector this year, higher than the RM5.59 billion raked in last year.

The agency’s CEO Datuk Hasan Azhari Idris said it is optimistic of achieving the target and has already secured RM1.8 billion worth of investments during a business trip to Japan in January.

Speaking to reporters at the launch of the Selangor International Business Summit 2018 (SIBS 2018) yesterday, Hasan said the investments secured in Japan are from companies involved in logistics, packaging, machineries, chemicals and aerospace components.

Last year, the state attracted 202 approved manufacturing projects translating into total direct investments worth RM5.59 billion, slightly lower than the RM6.5 billion target.

“It is slightly below the target but we are quite satisfied with the figures because of the slow movement in the investment market. This year we are targeting RM7 billion,” said Selangor senior executive councillor Datuk Teng Chang Khim ( pix) who officiated at the summit yesterday.

“This year we believe that the market is better than last year but of course, this year we will have elections so there will be slight disruptions for about a month or two but we are still confident that we can do better than last year,” he added.

Of the RM5.59 billion achieved in 2017, 60% of investments in the manufacturing sector were from domestic direct investments worth RM3.43 billion while 40% were from foreign direct investments worth RM2.16 billion.

According to Teng, foreign direct investments in the manufacturing sector were mainly from Japan, Singapore, China, the Netherlands and Germany.

The state secured 13 projects worth RM533 million from Japan, 18 projects worth RM439 million from Singapore, five projects worth RM282 million from China, three projects worth RM162 million from Netherlands and three projects worth RM147 million from Germany.

“The RM5.59 billion is only for the manufacturing sector. We have another RM4 billion from the services sector. That is very encouraging. Out of the RM4 billion, part of it comes from Ikea, where they have set up in Port Klang a warehouse for their distributions in the Asia Pacific region,” he said, adding that the state aims to secure RM5 billion worth of investments in the services sector this year.

According to Teng, the manufacturing and services sectors contributed 29.5% and 59.5% to Selangor’s gross domestic product (GDP) last year.

“Our location is strategic, our infrastructure is world class... We’re fortunate to have Port Klang, the 12th largest seaport in the world and we also have KL International Airport. We also have the longest history in industrialisation. We are the first industrialised state in Malaysia. These are our strengths,” he added.

For SIBS 2018, Invest Selangor aims to generate RM250 million in transaction value and RM10 million in publicity value from the 10-day event which will be held from Sept 6 till 16.

SIBS 2018 will focus on food and beverage, food technology, food science, food services and the halal industry. It expects to attract 25,000 visitors with over 1,000 booths this year.

Last year, SIBS 2017 saw a total of 22,000 visitors and generated RM204.2 million in transaction value.