Georgetown: The Malaysian Investment Development Authority (Mida) said Malaysia is an attractive investment destination for multinationals due to its outstanding advantages in the global manufacturing supply chain.
Multinationals looking to expand in Asia, in particular, can leverage Malaysia’s strong infrastructure, efficient transport network and logistics capabilities to optimize supply chains and tap into diverse markets, said Tan Sri, chairman of Mida. Dr. Sulaiman Mahabob told Bernama.
“Multinational companies should take advantage of Malaysia’s strategic location, which offers excellent connectivity to regional and global markets. should be established as a hub for
“By actively engaging with a wealth of local suppliers, manufacturers and service providers, multinationals have the opportunity to build a robust ecosystem to support their efforts,” he said.
Mr. Sulaiman highlighted the industry partnership program as one such effort to promote partnerships between large companies and SMEs.
Held in Penang last month, the one-day program connected 11 multinationals and 52 SMEs through more than 150 business-to-business sessions.
“Working with local partners enables multinationals and SMEs to navigate the local business environment, gain market insights and access local expertise.
“We are seeing some small and medium-sized enterprises take on a larger role in the global supply chain. We are differentiating ourselves by getting our products to market faster,” he said.
Sulaiman explained that by setting up a supply hub in Malaysia and working with local SMEs, multinationals can take advantage of the country’s extensive trade ties and reduce costs in the business environment.
He referred to Meida Xinyi Supply Chain Program as a successful partnership between local companies and multinational companies.
Xinyi, China’s leading comprehensive glass manufacturer, manufactures high-quality float glass, automotive glass and energy-saving architectural glass, and has a sales network in more than 130 countries and regions around the world.
Mr Sulaiman said Xinyi Malaysia, which operates in Jasin, Malacca as its first overseas unit outside of China, is currently looking to expand its supplier base as part of its localization plans.
“Under the Free Trade Agreement (FTA) between Malaysia and ASEAN, up to 98% of products have zero import duties, leading to lower business costs.
“This will give companies operating in Malaysia priority access to capture growth opportunities and immediate markets within one of the world’s largest trading blocs,” he said.
Malaysia has established a strong network of trade links through multiple FTAs with Japan, Pakistan, India, New Zealand, Chile, Australia, Turkiye and others.
At the Southeast Asian level, Malaysia is part of the ASEAN Free Trade Agreement, which includes regional FTAs with China, South Korea, Japan, Australia, New Zealand and India.
“Malaysia will continue to strengthen its logistics and transportation networks, enhance connectivity with global markets, facilitate the seamless flow of goods, services and information, and position the country as an ideal supply hub in Asia. We will ensure that,” Sulaiman said.
