By Yasmin Ramlan
SHAH ALAM, June 6 — In its two-decade journey, Invest Selangor Bhd has become an important facilitator, serving as a comprehensive one-stop centre to draw investors to the state.
Since its establishment in 1999, Invest Selangor, formerly known as the Selangor State Investment Centre and later rebranded in 2015, has achieved significant milestones, with approved projects exceeding RM200 billion, predominantly in the manufacturing sector.
From its humble beginnings as a modest state agency, Invest Selangor’s relentless commitment has elevated Selangor to “The Golden State of Malaysia”.
“In the past 20 years, we have witnessed the approval of over RM200 billion worth of projects in Selangor, mainly in the manufacturing sector, encompassing approximately 6,000 manufacturing projects. These ventures not only contribute to the economy but also generate employment opportunities,” said Invest Selangor chief executive officer Dato’ Hasan Azhari in an interview with Selangor Journal at his firm's headquarters here.
“In the past 25 years, over 400,000 job opportunities have been created through approved investment.”
Hasan elaborated that by generating job opportunities, the state would indirectly cultivate an ecosystem capable of influencing Selangor’s economic cycle. This, in turn, would drive demand for essential services, housing, education institutions, commercial centres, and a variety of other amenities.
He cited a notable example of the state’s success from last year, highlighting a significant increase in investment within the manufacturing sector. Investments surged to RM19.3 billion, compared with the RM12.2 billion recorded in 2022.
“God willing, we hope it will increase this year. We will see our first-quarter (performance)... (and) this year, our target is to attract RM50 billion worth of investment for our manufacturing and services, whereby RM15 billion is targeted for manufacturing, and RM35 billion for services,” he said.
Earlier this year, Menteri Besar Dato’ Seri Amirudin Shari announced Selangor’s aim to attract RM50 billion worth of investments in 2024, up from last year’s RM45 billion. The target was set given the state’s improving economic development and its goal to contribute 26 per cent of the national gross domestic product this year.
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Menteri Besar Dato’ Amirudin Shari (centre) officiates the Selangor International Business Summit 2023 at the Kuala Lumpur Convention Centre on October 19, 2023. — Picture by FIKRI YUSOF/SELANGORKINI[/caption]
In with the new
Despite capitalising on its strategic location to establish economic hubs that appeal to foreign and domestic investors, Hasan highlighted several challenges currently faced by the agency. He emphasised the impact of the post-Covid-19 era, which has prompted significant shifts in business dynamics.
“(During) Covid-19, many businesses faced disruptions and attempted to reduce costs. Consequently, numerous businesses ceased operations over the past year or two, but retained certain activities.
“For instance, Western Digital closed its business operations in Selangor but continued its research and development activities in the region, and relocated its manufacturing operations to other states,” he said.
Hasan also cited Goodyear, one of the world’s largest tyre makers, as an example, as it will shut its manufacturing plant in Shah Alam on June 30. This decision was part of the company’s corporate restructuring programme, to achieve a US$1 billion (RM4.69 billion) cost reduction by 2025.
He said the situation is also affecting other states, highlighting Austrian-German company AMS-Osram AG, which cancelled its investment in Malaysia despite recently completing its micro-LED plant in Kedah’s Kulim Hi-tech Park.
“It’s not just Selangor that is affected.
“Another contributing factor is the increasing cost of doing business. This is evident in the rising labour costs compared with before,” he said.
However, he noted there are pros and cons to the situation.
Recognising the importance of safeguarding employee welfare, Hasan emphasised the need to address the talent mismatch in the country.
“This indicates supply and demand are concentrated in specific areas, creating mismatches in crucial areas. We must bridge the gap between talent supply and demand,” he said.
He emphasised challenges in industries that need people with data analytics and artificial intelligence skills, yet the available talent pool fails to meet expectations.
“Hence, the need for retraining. The state government is emphasising the importance of training,” he said, highlighting the recent agreement between Selangor and Germany to enhance the marketability of the state’s workforce.
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State executive councillor for investment, trade, and mobility Ng Sze Han (second from left) and Invest Selangor Bhd chief executive officer Dato' Hasan Azhari (centre) during the official launch of the Selangor International Business Summit 2023 at the Kuala Lumpur Convention Centre on September 21, 2023. — Picture by HAFIZ OTHMAN/SELANGORKINI[/caption]
Expanding opportunities
Touching on Selangor’s role in positioning itself as the “Gateway to Asean” to strengthen its brand regionally, Hasan shared that one of its main events, the Selangor International Business Summit (SIBS), aims to provide opportunities for Malaysian states and Asean members to position themselves as attractive investment destinations.
“One of our strategies involves disseminating our mission via various channels, including virtual campaigns, media outreach, social media engagement, publications, and events such as SIBS.”
Hasan clarified that extending opportunities to other states and countries would position Selangor as a door to the Asean market, citing the Selangor Industrial Park (SPARK) as an example.
He shared some positive developments from participating Asean countries, such as the Philippines, which highlighted over five special economic zones to the event.
He said the zones were showcased to attract investors, resulting in interested parties travelling to Manila to explore the sites after the event.
“Many asked why we bring our competitors to promote alongside us. (It is because) we aim to understand their strategies,” he quipped.
Hasan added that Selangor has secured several projects that originated from discussions initiated at SPARK.
SIBS will be held twice this year, with an estimated investment transaction value of RM7 billion.
Due to many requests from its participants, the summit will be held from July 25 to 27 and from October 17 to 19 to maximise the event’s investment potential.
Last year, the global event recorded an investment transaction value of RM6.12 billion, a four-fold increase from the anticipated RM1.5 billion.
SIBS was introduced in 2016 and has attracted the participation of many government agencies and businesses from countries such as China, Indonesia, Uganda, Kazakhstan, South Korea, Turkey, Kenya, and Australia.
This eighth edition will feature the 10th Selangor International Expo Food & Beverage, the 4th Selangor Life Sciences Convention, the 4th Selangor Investment & Industrial Park Expo, the 8th Asean Business Conference, and the 9th Selangor Smart City & Digital Economy Convention.
