KUCHING: Malaysia must enhance value creation and concentrate on downstream industries by adjusting its trajectory, direction and specific policies to attract foreign investors.
Communications Minister Fahmi Fadzil emphasised that the nation’s economy can no longer depend on traditional industries, though he noted that economic performance is currently on the right track, with the ringgit valued at RM4.478 against the USD.
He said Second Finance Minister Datuk Seri Amir Hamzah Azizan recently travelled to Singapore to engage with investors, and there is significant interest in the current state of Malaysia’s economy.
“On average, the findings he reported show that the perception of our country, particularly among foreign investors, is very positive. This is reflected in increased investment, trade and, InsyaAllah, rising salaries.
“In short, the Madani economy aims to raise both the ceiling and the floor, boosting the country’s income while also increasing the income of the people.
“This can only happen if we shift perceptions about our economy in several ways. First, we can no longer rely on upstream industries,” he said.
Fahmi said this during the Ministry of Communications (Sarawak Zone) Excellent Service Awards 2023 at the P. Ramlee Auditorium, RTM Kuching today (Aug 8).
He pointed out that Malaysia is becoming a focal point for foreign companies looking to expand their investments and is rapidly developing in the Artificial intelligence (AI) sector.
In addition to the semiconductor industry, he highlighted the importance of data centres that store application data through cloud storage, which are crucial for positioning Malaysia as a premier investment destination.
He added that Sarawak offers an attractive proposition because it can generate energy at significantly lower costs compared to other regions.
“To make this AI sector a success, especially generative AI, we need a lot of calculations, which semiconductors can help with.
“Secondly, we see that in addition to semiconductors, the issue of data centres is important. TikTok, Facebook, Google, and so on require cloud storage and cloud computing. This can be achieved with the presence of data centres.
“Singapore’s land value is expensive and the cost of energy is very high. So many countries, many companies see Malaysia as an excellent investment destination.
“Renewable energy is very important. Therefore, the federal government has seen that we need to shift the track, we need to change our trajectory, the direction, certain policies to ensure that foreign investors and companies understand that this government cares, is concerned, knows what they need and we change some matter,” he said.
Additionally, Fahmi asserted that Malaysia should prioritise the production of unique products.
He asserted that in the commodity sector, palm oil prices are currently very high, and rubber prices are also elevated.
“In Peninsular Malaysia, rice prices have also increased. In Sarawak, Barrio Rice is a specialty heirloom. It is a very valuable commodity,” he said.
