Malaysia is now riding on an ecosystem approach to attract investments. The country is also leveraging on the ecosystem not just within Malaysia but also the competitive advantages of other ASEAN member states to create more vibrant and accessible investment opportunities to investors.
ASEAN provides an effective platform for investors to utilise and maximise its value chain. The varying levels of economic development in ASEAN coupled with each country’s industry specialisation allow greater complementation among local and multinational companies (MNCs) and locational complementation between member countries.
Market-seeking and efficiency-seeking foreign direct investments (FDIs) may leverage on these complementation and increase their involvement in the regional supply chain.
The practice of finding another ASEAN country to complement current operations has led ASEAN-based investors to deepen their engagements with the region.
Increasingly, MNCs in ASEAN are adopting production strategies that involve horizontal and vertical multi-plant operations in two or more ASEAN countries for strategic and economic reasons.
The ASEAN production network is used as part of the companies' regional value chain that is within integrated business arrangements and linked with different functions and operations such as marketing, research and development, manufacturing.
Global players in various industries are present in ASEAN. Many of them are expanding and seeing the emerging opportunities and potential from the ASEAN integration. A fine example of the complementarity among the ASEAN member countries is Intel’s operations in Malaysia, Singapore and Vietnam. Intel’s presence in the ASEAN region started with its establishment in Malaysia in 1972.
Its three entities in Malaysia namely Intel Microelectronics, Intel Technology and Intel Products are mainly involved in upstream E&E manufacturing and R&D activities. In Singapore, Intel focuses on providing sales and support at the OEM, developer and end-user levels. Meanwhile in Vietnam, Intel established business support services and undertakes test and assembly activities.
Taking advantage of this on-going trend, the Malaysian Investment Development Authority (MIDA) together with the Ministry of International Trade and Industry (MITI) and the Malaysia External Trade Development Corporation (MATRADE) organised an Intra-ASEAN Investment Forum yesterday at the MITI Tower.
The Forum, held in conjunction with ASEAN 50th Anniversary, was graced by YB Datuk Seri Mustapa Mohamed, Minister of MITI. It was also well participated by over 400 delegates from the business communities of various sectors.
The event featured discussions on ‘Opportunities and Challenges of Investing in ASEAN’, that was moderated by Tan Sri Dr. Mohd Munir Majid, Chairman of ASEAN-Business Advisory Council. The panelists present were Mr Juergen Keitel, Group Chief Global Affairs & Development Officer of Air Asia, Mr. Cheong Ho Kuan, Chairman of Gamuda Land Vietnam, Mr. Pratan Jongpun, President & CEO of Charoen Pokphand Malaysia, and Briand Greer, President of Honeywell ASEAN.All four representatives are from exemplary companies that have made Malaysia their base to reap the benefits of the ASEAN ecosystem.