It is no secret that since the Covid-19 outbreak began, FDI into ASEAN countries has plummeted. According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) inflows into ASEAN in 2020 fell 25 per cent to $137 billion compared to the previous year.
Malaysia was among the most affected where FDI fell by 55 per cent to $3.5 billion. However, things are beginning to look up again, despite the ongoing pandemic.
Selangor, still a preferred investment destination
Selangor is the primary state in Malaysia. Its contribution of over 22 per cent to the nation’s GDP has been consistent over the years, showcasing its credibility as the economic powerhouse not only within the country but also in the region.
FDI has continued to be a major contributor to the state’s economic growth over the years. It is home to many MNCs such as IKEA, Airbus, Nestle, Siemens and Schneider Electric. In 2020, FDI made up 62.5 per cent of Selangor’s total approved investment of RM 18.4 billion (approximately $4.39 billion), the highest in Malaysia compared to other states.
According to Invest Selangor’s Chief Executive Officer, Dato' Hasan Azhari, “the healthy inflow of investment projects into the state affirms Selangor’s status as a preferred destination among investors, despite the various challenges posed by the Covid-19 pandemic. This is because of the already matured ecosystems within the state for industries to set up their operations in.”
Key factors to Selangor’s continued success
On top of its world rankings, and economic and investment achievements, the growing interest of MNCs in setting up regional operations in Selangor is largely due to the continuous efforts of Invest Selangor - as a one-stop agency that provides information, advisory services, start-up and expansion support to potential and existing investors - to promote the state as a promising investment destination.
Establishing itself as a Global Trading Hub, Selangor offers a matured business ecosystem with complete infrastructure for industries to set up their operations in the state. Additionally, Selangor's strategic location with two major international airports and the world's 12th largest container port (Port Klang), as well as several advanced domestic rail, road and air links to economic centres within the country, makes the state one of the most attractive business hubs to connect investors to ASEAN and global markets.
Another advantage that Selangor offers is the availability of about 3.6 million multilingual and skilled talents in the state.
Selangor is also laying the digital foundation to empower the population, via its Smart Selangor Action Plan 2025, which aims to make Selangor as the most liveable state within the region.
Invest Selangor Berhad is leading the Selangor Week at the Malaysia Pavilion in Expo 2020 Dubai, which started yesterday on March 6 and continues till March 12. The Selangor Week is promoting the five clusters of industries for investment, namely, electrical and electronics, life sciences (biotechnology), transport and equipment (aerospace), machinery and equipment, and food and beverage (halal industry).
To learn more about investing in Selangor please visit www.investselangor.my