Nimp 20303

MINISTRY OF INVESTMENT,
TRADE AND INDUSTRY
NEW
INDUSTRIAL
MASTER
PLAN
2030
1 2 3
Design Rationale
The design of the New Industrial Master Plan 2030 (NIMP 2030)
reflects the aspiration of the plan to propel Malaysia’s industrial
development in the new norms.
Pattern (1) represents direction and efforts in strengthening

industries in Malaysia. Moving from left to right, pattern (2)
becomes more complex and inter-connected to signify the
integration and collaboration between industry players and
Government, towards greater resilience. Pattern (3) conveys a
futuristic element and highlights the importance of technology
in steering Malaysian industries in the Fourth Industrial
Revolution.
The different patterns signify Malaysia’s clear direction for the

industry, and the two implementation phases of the NIMP
2030 which are ‘Strengthen Foundation’ and ‘Sustain Growth &
Resilience’.
The colour blue was selected to express the Government’s

commitment in ensuring that industrial development
encompasses inclusivity and embraces environmental, social
and governance criteria.
e ISBN No. : 978-967-0020-04-4
PUBLISHED BY:
MINISTRY OF INVESTMENT,
TRADE AND INDUSTRY
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© MINISTRY OF INVESTMENT, TRADE AND INDUSTRY
MITI, 2023
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Trade and Industry (MITI). The information in this document has been updated as accurately as possible until the date of
publication.
NEW
INDUSTRIAL
MASTER PLAN
2030
New Industrial
2 Master Plan 2030
TABLE OF CONTENTS
Foreword by Prime Minister 8
Foreword by Minister of Investment, Trade and 10

Industry
Foreword by Secretary General of Ministry of 12

Investment, Trade and Industry
1 Introduction 15
Overview of the NIMP 2030 16

Purpose of the NIMP 2030 16
Scope and Coverage 17
2 Malaysia’s Industrialisation Today 19
Past Performance and Key Challenges 20

Emerging Mega Trends 34
Opportunities for Malaysia 36

3 Vision, Goals and Missions 37
Vision 38
Goals and Targets 38
Mission-based Approach 42
Missions 43

4 Mission 1: Advance Economic Complexity 47
5 Mission 2: Tech Up for a Digitally Vibrant Nation 75
6 Mission 3: Push for Net Zero 95
7 Mission 4: Safeguard Economic Security and 115

Inclusivity
8 Enablers: Addressing Systemic and Institutional 131

Challenges
MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

New Industrial
Master Plan 2030 3
Small and Medium Enterprises (SME) 161

9 Industrialisation
Overview 162
Role of SME in the NIMP 2030 162
Key Success Factors 163
10 Implementation – Whole-Of-Nation 165
Governance and Monitoring Mechanism 167

Communication 169
Phased Approach 170
11 Conclusion 173
Appendix I: List of Policies and Roadmaps 175
Appendix II: Glossary 176
Appendix III: Acknowledgements 180
Appendix IV: Footnotes and References 185

New Industrial
4 Master Plan 2030
LIST OF TABLES
No. Title
1.1 Sectors Covered in NIMP 2030
2.1 Key Macro Targets for IMP3
2.2 Contribution of MSMEs to the Overall GDP and Overall Exports
3.1 NIMP 2030 Targets
4.1 Game Changing Advanced Materials
5.1 Ten Highest Ranking Countries in APAC Region
5.2 Government AI Readiness Index, Ranking by ASEAN Region
6.1 Summary of Renewable Energy Resources Potential
7.1 Logistics Hubs in Malaysia
7.2 Industrial Parks in Malaysia
8.1 Issues in Government Funding
LIST OF FIGURES
No. Title
2.1 Economic Complexity Index of Malaysia and Selected Countries, 2006-2020
2.2 Labour Productivity Growth of Malaysia and ASEAN Peers, 1975-2018 (%)
2.3 R&D Expenditure in Malaysia, 2008-2018
2.4 Skill-related Underemployment, 2017-2023
2.5 Exports USD billion and % of GDP
2.6 Share of Domestic Exports to Total Exports (%), 2011-2022
2.7 FTA Utilisation by Number of Companies, 2016-2022
2.8 Export Concentration Index in Malaysia, 2006-2021
2.9 Implemented Domestic and Foreign Investments, 2006-2022 (RM bil)
2.10 Inflows of FDI into ASEAN-5, USD million
2.11 Manufacturing Value-added, by State (RM bil)
2.12 World Competitiveness Ranking, 2019-2023
3.1 NIMP 2030 Value-added, Employment, Labour Productivity and Median Salary Targets
3.2 Overall NIMP 2030 Framework
4.1 Mission 1 – Advance Economic Complexity
4.2 Semiconductor Value Chain
4.3 Chemical Sector Value Chain
4.4 Key Growth Segments of Aerospace, Pharmaceutical and Medical Devices Sectors
4.5 Industry Champion Value Chain
4.6 Integration between Value Chains
4.7 Malaysia as Gateway to ASEAN
4.8 IndustryConnect Conference
4.9 Top-centric R&D for Industrial Application
4.10 Areas to Strengthen in IP Regime

New Industrial
Master Plan 2030 5
4.11 National Trade Advocacy Campaign

4.12 “Made in Malaysia” Brand
4.13 Pathway to Ease NTMs Process
4.14 Key Focus of Modern FTAs
5.1 Mission 2 – Tech Up for a Digitally Vibrant Nation
5.2 Industrialisation Evolution
5.3 Malaysian Manufacturers to Tech Up
5.4 Multi-tiered Levy Mechanism
5.5 Technology Adoption Programme
5.6 Generative AI Use Cases
5.7 Needs of AI Solution Leaders and SI
5.8 National Digital Platform for Analytics
5.9 Government Touchpoints Across the Business Lifecycle
6.1 Mission 3 – Push for Net Zero
6.2 ESG Framework for the Manufacturing Sector
6.3 The EV Ecosystem
6.4 Circular Economy Principles
6.5 Types of Industrial Parks
6.6 Processes in CCUS
7.1 Mission 4 – Safeguard Economic Security and Inclusivity
7.2 Strategic Minerals
7.3 Minerals Value Chain
7.4 Physical Risks Associated with Climate Conditions
7.5 Economic Clusters in Malaysia
7.6 Transit-oriented Development for ECRL
7.7 NIMP 2030 Incorporated Bumiputera Programme
8.1 Enablers
8.2 Green, Sustainability and Sustainability-linked Sukuk to Tie to Decarbonisation Targets by SMEs
8.3 Supply Chain Financing for SMEs
8.4 Funding Stages of Companies and Capital Market Solutions
8.5 CGC imSME Platform
8.6 Progressive Wage System
8.7 Green Lane Process for Specific Critical Jobs
8.8 Parameters under NIA
8.9 Entities Identified as Carrying Investment Promotion Mandates
8.10 Incentive Mechanism
8.11 Investors’ Journey in the Manufacturing and Selected Services Sectors
8.12 Industry Development
8.13 NIMP 2030 Delivery Management Unit Structure
8.14 NIMP 2030 Dashboard
10.1 Governance Structure of the NIMP 2030
10.2 Phases of the NIMP 2030

New Industrial
6 Master Plan 2030
LIST OF BOX ARTICLES
No. Title
2.1 Success stories of FTAs attracting FDIs
2.2 High quality investments in Malaysia
4.1 Specialty chemicals and their uses
4.2 Applications of advanced materials
4.3 Why are IC design and fabrication critical to Malaysia’s economy?
5.1 What is Smart Manufacturing?
5.2 What is Generative AI?
6.1 The Hydrogen Economy – Hydrogen as a renewable source
6.2 The Electric Vehicle (EV) Value Chain
6.3 What is an Eco-Industrial Park?
8.1 Funding for Malaysian companies including SMEs to Support MBPs and for Their Own Tech Up
and Supply Chain Resilience
8.2 Funding Options for MBPs Requiring Large Investments
8.3 The European Green Deal
8.4 Market-based financing avenues in Malaysia
8.5 Digital Platform for SME Financing (imSME)

New Industrial
8 Master Plan 2030
FOREWORD Prime Minister of Malaysia
“ Malaysia’s focus
remains on creating a
high-income and skilled
workforce, where the
Rakyat prosper and
industries flourish.
“
ANWAR IBRAHIM
Prime Minister, Malaysia

New Industrial
Master Plan 2030 9
Malaysia has progressed remarkably since the Third Industrial Master Plan
(IMP3) between 2006 and 2020. During this period, the manufacturing
sector had contributed approximately 24 per cent to Malaysia’s Gross
Domestic Product (GDP), demonstrating its significant role in shaping
the nation’s economy.
The Government’s commitment to foster As we embark on this journey, Malaysia’s focus

innovation and technology adoption, promote remains on creating a high-income and skilled
entrepreneurship and invest in human capital workforce, where the Rakyat prosper and
during the IMP3 period has solidified Malaysia’s industries flourish. Technology plays a crucial
position as a leader in various sectors such as role as a catalyst for growth and to increase
electrical and electronics (E&E), petrochemicals, labour productivity. As such, the advancement
palm oil, and the halal industry. of technologies will empower the Malaysian
workforce to enhance efficiency and accelerate
The New Industrial Master Plan 2030 (The NIMP innovative capability.
2030) is developed with the intent for Malaysia
to emerge as a global leader in industrial The NIMP 2030 also calls for a balanced
development, extend the domestic linkages regional development as this is a key driver
to create wealth across the nation from towards safeguarding economic security and
manufacturing activities as well as strengthen promoting inclusivity. In line with the Ekonomi
its position in the global value chain. MADANI, the Government acknowledges that
economic prosperity must be accompanied by
The NIMP 2030 places clear emphasis on social progress and therefore, the plan includes
reinvigorating economic growth and ensuring strategies to address income inequality and
resiliency amidst growing challenges and promote balanced regional growth.
megatrends, inspired by the core principles
of Malaysia MADANI. The NIMP 2030 will The journey to transform the industry requires
be implemented through a whole-of- swift action by all. It is imperative for both the
nation approach that not only involves the public and private sector to strengthen our
Government machinery but also the private collaboration and implement the necessary
sector by working together to achieve a measures to uplift Malaysia’s competitiveness
common goal to position Malaysia as a high- and build greater resilience.
income economy with a greater degree of
economic complexity. “I am confident that the NIMP 2030 will provide
the necessary guidance and clear direction for
Malaysia recognises the importance of the development of the manufacturing sector
environmental preservation in our pursuit to strengthen its position as a key driver to
of industrial progress. Malaysia affirms our national economic growth and prosperity. The
commitment to international agreements and Government will ensure the plan is carried
conventions related to sustainability, including out diligently and benefit not only the private
our aspiration towards achieving the Net Zero sector through better investment and trade
carbon emission target as early as 2050. This prospects, but also the people through high-
commitment requires all economic sectors, skilled and high-income job opportunities.”
including manufacturing, to reconfigure their
strategies and policies as they perform the Let us embrace the NIMP 2030 and work
obligatory role to ensure Malaysia is on track to together to build a vibrant economy for the
achieve the goal. future of our next generation.

New Industrial
10 Master Plan 2030
FOREWORD Minister of Investment, Trade and Industry
“ We believe that the strategic

curation of the New Industrial
Master Plan 2030 (NIMP 2030)
– based on four key missions
rather than sectors i.e. by
nurturing higher economic
complexity and aggressively
embracing technology,
underscored by sustainability
and inclusivity principles –
“
is set to reform Malaysia’s
industries.
TENGKU ZAFRUL AZIZ

Minister of Investment,
Trade and Industry

New Industrial
Master Plan 2030 11
Malaysia’s manufacturing sector is a key contributor to the nation’s

economic growth, as well as its position in global trade. In 2022, it
contributed 24 per cent to our GDP and 84 per cent to total exports,
while providing employment opportunities to approximately 2.7 million
of the Rakyat. In short, it is a fundamental factor for Malaysia’s economic
growth and resilience, as well as international competitiveness.
While the development of Malaysia’s beneficiaries that include multinationals, SMEs

industrial policies had always been sector- and the Rakyat. A good case in point is when we
driven – underscored by sustainable growth nurture our manufacturing industry to produce
principles, and capacity-building for Malaysian more sophisticated and complex products
companies to integrate better into supply or adopt higher production technology, this
chains globally – MITI recognised that a slightly would also elevate our workforce in terms
different approach was required to transform of skills and knowledge, which will, in turn,
our manufacturing industry and for Malaysia translate into higher wages for the people.
to achieve high-income status in the years to
come. Further, as we attract more hi-tech and
innovation-driven investments, including in
This is where we believe that the strategic green manufacturing and renewable sectors,
curation of the New Industrial Master Plan 2030 we will not only enhance labour productivity
(NIMP 2030) – based on four key missions rather and support our ESG goals, but also ensure
than sectors i.e. by nurturing higher economic that our exports enjoy continued access to
complexity and aggressively embracing ESG-sensitive markets.
technology, underscored by sustainability and
inclusivity principles – is set to reform Malaysia’s I would like to thank everyone who has
industries. It also focuses on achieving broad- contributed to the development of the NIMP
based growth, by ensuring that small and 2030. Your invaluable insights, expertise and
medium enterprises (SMEs) are well-integrated unwavering dedication have helped shape a
into value chains, both domestic and global, comprehensive master plan that is set to create
as well as by ensuring that the benefit of a manufacturing powerhouse towards making
manufacturing development and activities is Malaysia a more prosperous and sustainable
fairly spread across all States in Malaysia. economy.
Apart from a robust stakeholder engagement The NIMP 2030 is an ambitious plan. I am,
session, the NIMP 2030 is also well-aligned with however, confident that with an effective
32 related policies and roadmaps to ensure implementation mechanism and support
comprehensiveness and consistency in public of all stakeholders, its objectives are highly
policy. This alignment and stakeholder support achievable within the target time frame. Time
are key to the effective implementation of the is of the essence if we wish to realise a more
NIMP 2030 Strategies and Action Plans across inclusive, holistic and sustainable Ekonomi
Ministries, Agencies, Government-linked MADANI development for the greater good of
Companies and the private sector entities the nation, and our future generations. MITI
based on clear goals and objectives, as well as looks forward to the whole-of-nation effort to
well-defined enablers. ensure the success of the NIMP 2030.
NIMP 2030’s horizontal four-mission policy and

set of strong enablers are aimed at addressing
domestic and global challenges premised on
a whole-of-nation approach. As articulated by
the Government’s Ekonomi MADANI, NIMP
2030 also ensures clear across-the-board

New Industrial
12 Master Plan 2030
Secretary General of The Ministry of

FOREWORD Investment, Trade and Industry
“Malaysia has distinctive value

propositions to leverage,
such as benefitting from
being at the heart of the
world’s busiest trade route,
an educated workforce
providing a skilled labour
pool for businesses and a
robust rule of law which
provides certainty and
predictability for the
business community.
“
ISHAM ISHAK
Secretary General of the
Ministry of Investment,
Trade and Industry

New Industrial
Master Plan 2030 13
Malaysia’s manufacturing sector remains a key driver of the country’s

economic growth, accounting for 24 per cent of GDP and 84 per cent of
total exports. The sector continues to play an important role in domestic
job creation, employing 2.7 million individuals or around 17 per cent of
total employment in the country. Manufacturing has generated over
RM35 billion in implemented capital investment as of 2022 and nearly
RM853 billion in total from 2006 to 2022.
While Malaysia’s industrial development has NIMP 2030 will be implemented in two phases.
indeed come a long way, the Government is During the first phase in 2023, the focus is to
now setting its sights on the future through strengthen existing industrial foundation to
the NIMP 2030. MITI expects to accelerate position Malaysia for the second take off. In
industry transformation to achieve Malaysia’s the second phase, 2027 onwards to 2030, the
aspirations by 2030. NIMP 2030 will focus on sustaining the growth
and resilience of the Malaysian economy, truly
Malaysia has distinctive value propositions to capitalising opportunities towards developing
leverage, such as benefitting from being at an advanced economy, while moving ahead in
the heart of the world’s busiest trade route, an sustainability agenda.
educated workforce providing a skilled labour
pool for businesses and a robust rule of law I would like to express my gratitude to all
which provides certainty and predictability stakeholders for the collaboration and support
for the business community. Malaysia is also with MITI throughout the development of
blessed with an abundance as well as diverse the NIMP 2030. MITI will continue to provide
natural resources offering opportunities for our leadership in spearheading industrial
downstream processing and notable high- development in Malaysia and I look forward to
quality infrastructures, enabling improved achieving the targets together.
connectivity for efficient operations.
NIMP 2030 has outlined 21 Strategies and

62 Action Plans across the four Missions,
supported by four key Enablers to build the
ecosystem around its implementation. Nine
Mission-based Projects (MBPs) have been
identified to catalyse the Missions and MITI will
work closely with the industry to identify more
MBPs through the course of the NIMP 2030.

1
INTRODUCTION
New Industrial
16 Master Plan 2030 INTRODUCTION
OVERVIEW OF THE NIMP 2030
Malaysia’s strength in the manufacturing the global value chain (GVC), development
sector has been significantly driven by the of indigenous capabilities in a knowledge
implementation of robust and forward-thinking economy, evolution of environmental, social
Industrial Master Plans, first launched in 1986. and governance (ESG) criteria and disruptions
from the new industrial revolution. The question
The success of the IMP3 (2006-2020) was is not about the necessity of such policies, but
anchored on innovation, research and rather what new policies are required and how
development (R&D) and human capital to proceed.
development to drive high value-added
industries to transform Malaysia into a Given the current challenging environment,
knowledge-based economy. benchmarking and learning from other
country’s experiences are no longer sufficient.
The journey towards formulating the NIMP Malaysia needs to embark on its own path
2030 is underscored by the need to build into unchartered territory, to steer the nation
a robust industrial sector as an important into the challenging future. The combined
prerequisite to achieve socioeconomic impact of the new imperatives and the recent
prosperity. Three previous iterations of the pandemic has compelled the Government to
Industrial Master Plans have driven industrial rethink Malaysia’s industrial strategy.
development in Malaysia, with the Government
adopting industrial development strategies With the NIMP 2030, Malaysia intends
relevant to the period to transform the to transform the industry into greater
economy. Malaysia flourished from a low- heights, capitalising on emerging global
productivity agrarian-based economy and is trends, supply chain disruptions, current
heading towards achieving developed nation geopolitical landscape, digitalisation and ESG
status, underpinned by robust manufacturing considerations. These trends are moving at an
and services sectors. The strategy has unprecedented pace and Malaysia has to act
successfully raised the living standards of the fast.
Rakyat and propelled remarkable growth
in Gross National Income (GNI) per capita, Therefore, the NIMP 2030 is designed to
increasing 34 times between 1967 to 2019, achieve the aspirations in a span of seven
making Malaysia one of the fastest growing years and takes on a Mission-based approach
economies in modern history. for industrial development. This approach
unites Malaysia by encouraging collaboration
Industrial policies have since become more between the Government and the private
diverse and complex, incorporating new sector to rally the industries.
imperatives including the integration into
PURPOSE OF THE NIMP 2030
The NIMP 2030 sets forth Malaysia’s future The NIMP 2030 serves to:
direction in industrial transformation. It
provides a national integrated plan for resilient • Provide national strategic direction to lead
industrial development until 2030 – setting the the industrial development policies;
fundamentals for future policy development • Be a conversation piece for investors and
and enabling the industry at all levels. It other economies on Malaysia’s position and
articulates Malaysia’s position and participation direction; and
in the global economic environment. • Feature the role of the Malaysian
Government in shaping the economy.

New Industrial
INTRODUCTION Master Plan 2030 17
SCOPE AND COVERAGE
The manufacturing and services sectors are The NIMP 2030 focuses on a whole-of-nation
the two largest sectors in Malaysia’s economy. approach, aligned to the plans of other
The manufacturing sector is a vital component Ministries and ensures participation across
of the economy, focusing on large-scale all sectors for successful implementation. As
production of tangible goods, covering a the NIMP 2030 is an overarching policy that
diverse range of activities including the strategises and provides the guiding direction
conversion of raw materials and components for Malaysia’s industrial development, it takes
into finished products using machinery, labour into consideration the interconnectedness of
and advanced technology. all industrial-related policies and the various
authorities involved. This fosters a common
The sector is supported by an array of services to understanding and alignment among multiple
assist in various aspects of the manufacturing stakeholders in the industrial ecosystem
process, providing essential support and and ensure smooth implementation and
expertise to enhance the efficiency, innovation coordination across Government machineries.
and global competitiveness of Malaysia’s
manufacturing sector. The NIMP 2030 represents a collaborative effort
between the Government and the private
To ensure continuous growth of the sector, jointly owned to leverage the collective
manufacturing sector and related services, the expertise and resources. It is a document to
NIMP 2030 outlines clear Missions to achieve foster industrial growth and was developed
the desired Goals, with consideration of: through various industry consultations:
• Ekonomi MADANI as the true north for • Over 70 focus sessions and 313 stakeholders
Malaysia’s economic development: engaged with Ministries, Agencies,
• Positioning Malaysia as Asia’s economic Regulators, Industry Associations and
leader by building knowledge and industry players;
innovation-based economy; and • The NIMP 2030 consultation open day,
• Improving the quality of life for the which gathered industry feedback,
Rakyat by prioritising the well-being of attended by more than 650 attendees; and
the people through high income jobs, • Strategic engagements with industry
equal opportunities and comprehensive players as champions to drive the Mission-
social welfare. based Projects (MBPs). MBPs are key
• NIA, launched on 6 October 2022, where the projects encompassing a wide range of
NIMP 2030 Goals are aligned to the five key areas critical to achieving the industrial
pillars with ESG as the overarching theme; development objectives.
• The challenges for the nation to achieve the
Goals – relevant to all sectors; and The NIMP 2030 has enclosures of 21 Sectoral
• 32 existing and upcoming policies across Plans included as supplementary references.
the Government to ensure alignment These plans provide a view of the respective
(Appendix I). sectoral perspectives in the context of the NIMP
2030 document. The 21 sectors covered are:

New Industrial
18 Master Plan 2030 INTRODUCTION
Table 1.1: Sectors Covered in NIMP 2030

Sectors Industry Relevant Sector-specific Policies
Priority Sectors 1. Aerospace 1. Aerospace Industry Blueprint 2010
2. Chemical 2. Chemical Industry Roadmap 2030
3. Electrical and Electronics (E&E) 3. Malaysia Plastics Sustainability Roadmap
4. Pharmaceutical 2021-2030
5. Medical Devices 4. E&E Roadmap 2021-2030
5. Malaysian National Medicines Policy
Sectors 6. Digital and Information and 6. Industry4WRD: National Policy on Industry

Communication Technology 4.0
(ICT) 7. Malaysia Digital Economy Blueprint
7. Automotive 8. Malaysia National Artificial Intelligence
8. Food Processing Roadmap
9. Global Services and 9. National Automotive Policy 2020
Professional Services 10. National Agrofood Policy 2.0 2021-2030
10. Halal 11. Halal Industry Master Plan 2030
11. Machinery and Equipment 12. Foresight Study on the Iron and Steel
(M&E) Industry
12. Manufacturing-Related 13. National Mineral Policy
Services (MRS) 14. National Mineral Industry Transformation
13. Metal Plan 2021-2030
14. Mineral 15. National Advanced Materials Technology
15. Palm Oil-based Products Roadmap
16. Petroleum Products and 16. National Agri-commodity Policy 2021-2030
Petrochemicals 17. Malaysian Rail Supporting Industry Roadmap
17. Rail 2030
18. Rubber-based Products 18. National Timber Industry Strategic Plan 2021-
19. Shipbuilding and Ship Repair 2025
(SBSR)
20. Textile, Apparel and Footwear
21. Wood, Paper and Furniture
Additionally, there are four new growth areas identified in the NIMP 2030:
• Advanced Materials;
• Electric Vehicles;
• Renewable Energy; and
• Carbon Capture, Utilisation and Storage (CCUS).
Other Services (Scope not covered in the NIMP 2030)
The following services areas are not covered under the NIMP 2030, but their growth will continue
to contribute significantly to the Malaysian economy, guided by the relevant ministries and
policies:
• Banking and insurance;

• Construction services, guided by the National Construction Policy 2030;
• Utilities;
• Tourism, guided by the National Tourism Policy 2020-2030;
• Private healthcare, guided by the Malaysia Healthcare Travel Industry Blueprint 2021-2025;
• Private education, guided by the Higher Education Blueprint 2015-2025 and the Way Forward
for Private Higher Education Institutions: Education as an Industry (2020-2025);
• Transport and logistics, guided by the National Transport Policy 2019-2030;
• Food and beverages; and
• Other unregulated services.

2
MALAYSIA’S INDUSTRIALISATION
TODAY
New Industrial
20 Master Plan 2030 MALAYSIA’S INDUSTRIALISATION TODAY
Malaysia’s industrialisation landscape is shaped by the evolution of the manufacturing sector over
the last few decades. The sector has been playing a pivotal role in driving economic growth by
contributing approximately 24 per cent to the country’s GDP and accounting for 84 per cent of
Malaysia’s total exports. Both GDP and exports of the sector have been growing at 6 per cent since
2000 and 2006 respectively. In parallel, the sector supports the livelihoods of 2.7 million individuals,
representing approximately 17 per cent of total employment in Malaysia. Manufacturing therefore
serves as a cornerstone for the nation’s international competitiveness, economic resilience and
human capital development.
In terms of the services sector, the rapid growth in services contributed to Malaysia’s
industrialisation development as it has a positive relationship to manufacturing performance1.
Access to services such as telecommunications, logistics and financing will impact the
competitiveness of manufacturing firms.
PAST PERFORMANCE AND KEY CHALLENGES
The performance of the manufacturing and services sectors against IMP3’s macro targets are
tabulated below (Table 2.1)2 .
Table 2.1: Key Macro Targets for IMP3

Targets Baseline (2005) Target (2020) Realised 2020 Realised 2022
GDP Value of RM149.7 billion RM187.6 billion RM307.8 billion RM364.5 billion
manufacturing (based on constant (based on 1987 real (based on constant (based on constant
sector3 2005 prices) prices) 2015 prices) 2015 prices)
Share of 31.4% 28.5% 22.3% 24.2%

manufacturing
sector (% of GDP)
Share of non- 50.5% 59.7 % 48.5% 49.1%
Government
services (% of GDP)
Share of 7.6% 6.8% 9.2% 9.1%
Government
services (% of GDP)
Implemented Total: Manufacturing: Manufacturing: Manufacturing:
private RM464.5 billion RM412.2 billion RM652.4 billion RM862.8 billion
Investments Services: Services5: Services6:
(cumulative)4 RM687.7 billion RM139.9 billion RM211.2 billion
External Trade Exports: RM533.8 Exports: Exports: Exports:
billion RM1.4 trillion RM980.99 billion RM1.55 trillion
Total trade: Total trade: Total trade: Total trade:
RM967.8 billion RM2.8 trillion RM1.77 trillion RM2.48 trillion
Source: DOSM (Sectoral GDP); MIDA (Investments); MATRADE (Trade)

New Industrial
MALAYSIA’S INDUSTRIALISATION TODAY Master Plan 2030 21
Although the share of manufacturing sector’s contribution to GDP in 2020 was 6.2 percentage
points lower than its IMP3 target, it has showed recovery post-pandemic and closed the gap
further in 2022 to 4.3 per cent. In terms of value, manufacturing’s GDP broadly doubled and
exceeded its IMP3 targets. In 2020, Government services exceeded its target by 2.4 percentage
points. However, non-Government services fell short of its IMP3 target by 11.2 percentage points.
In terms of the implemented private investments, the manufacturing sector performed above
expectations and doubled the target set in IMP3 as of 2022. However, services fell short – its
investment in 2022 stood at 30.7 per cent of the IMP3’s target7. This may be explained partly by
Malaysia’s higher Services Trade Restrictiveness Index in most services compared to its peers8.
Malaysia’s trade performance in 2022 was RM2.48 trillion. Although it was RM32 billion less than
the IMP3 target, it grew by 2.5 times relative to its baseline value. Zooming in to exports specifically,
Malaysia exceeded its target by RM569 billion. The growth is driven by the outstanding trade
performance of E&E products, petroleum products, liquified natural gas, palm oil and palm oil-
based agriculture products, machinery, equipment and parts – each recorded its highest export
value ever, increasing by more than RM10 billion and registering double-digit growth.
Although the manufacturing and services sectors have made some progress over the years, it is
crucial to acknowledge that there are key challenges in industrialisation development in Malaysia:
Marginal improvement in economic complexity:
Malaysia’s degree of economic complexity as measured by the Economic Complexity Index

(ECI)9 peaked in 2013, dipped in 2014 and stagnated till 2020. Other Association of Southeast
Asian Nations (ASEAN) countries, like the Philippines and Thailand, continued to grow in their
respective economic complexities, closing in towards Malaysia’s position. Overall, throughout the
IMP3 period, Malaysia remained behind its aspirational target countries in East Asia such as South
Korea, Japan and Singapore.
Higher levels of economic complexity are associated with higher levels of development and
growth10. Crucially, a country’s structural transformation is determined by its capacity to
accumulate the capabilities that are necessary to produce a greater variety and more complex
goods.
Figure 2.1: Economic Complexity Index of Malaysia and Selected Countries,
2006-2020
2.2
2.1
1.9
1.8
1.4
1.3
1.0
0.9
0.7
0.6
0.3
-0.1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Japan South Korea Singapore Malaysia Thailand Philippines
Source: The Observatory of Economic Complexity

New Industrial
Servicification11 has a positive relationship on the manufacturing performance. For example,

access to telecommunications, transport, distribution services and financial intermediation can
affect the competitiveness of manufacturing firms. Malaysia’s direct contribution of services to
manufacturing value-added is much lower than the OECD average and neighbouring countries.
Improving the use of MRS in Malaysia can help to facilitate better manufacturing performance by
boosting the competitiveness of manufactured goods.
Stagnated labour productivity:
Labour productivity growth in Malaysia has significantly slowed down in the past three decades,
particularly from 2011 to 2018. Malaysia’s labour productivity growth has been lower than Singapore,
Thailand and the Philippines since 2000, and even lower than Viet Nam since 2005 (Figure 2.2).
Figure 2.2: Labour Productivity Growth of Malaysia and ASEAN Peers, 1975-2018 (%)
Source: ASEAN Secretariat
This decline in labour productivity is explained by:
• Prolonged use of low-skilled foreign workers in the manufacturing sector:
Malaysia had early mover advantage as it opened up to FDI liberalisation with the establishment
of the Bayan Lepas Free Trade Zone in 1971 and attracted FDI to establish export-oriented,
labour-intensive manufacturing with the help of its relatively low labour costs at that time.
Subsequently, other developing countries, like China, has opened up to FDI and attracted low
labour-cost manufacturing, posing stiff competition for Malaysia. Malaysia prolonged its use
of low-skilled foreign workers to stay on in labour-intensive manufacturing instead of moving
on to more technology-intensive activities, which then delayed the upgrading of the Malaysian
manufacturing sector.
• Relatively low innovation performance:
The country’s investment in R&D12 as a percentage of GDP has fallen since 2016 (Figure 2.3) and its
Global Innovation Index13 fell from a peak of 46.9 in 2013 to a low of 38.7 in 2022. This has constrained
the development of high value-added manufacturing activities.

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Figure 2.3: R&D Expenditure in Malaysia, 2008-2018
20000 2
15000 1.5
10000 1
5000 0.5
0 0
2008 2010 2012 2014 2016 2018
Expenditure (RM Million) GERD/GDP
Source: National Survey of Research and Development (R&D) in Malaysia 2019 (MOSTI)14
This decline may be attributed to a possible factor where researchers in higher learning institutions
(HLIs), which were the main driver for R&D activities in Malaysia, did not pursue research areas
related to manufacturing or to meet industrial needs. According to Malaysia’s National Survey
of R&D in 2019, a bigger proportion of the Basic Research R&D expenditure came from the HLIs
(65 per cent) whereas the Business Enterprises focused on Applied Research and Experimental
Development, indicating a mismatch.
World Bank found that the main source of mismatch between suppliers of research from HLIs
and industry demand, lie in the emphasis on scientific publications for promotions in HLIs15. The
researchers in the HLIs are not incentivised to engage in technology transfer and entrepreneurial
activities such as commercialising their R&D activities as these were deemed less important for
career advancements in the HLIs.
Skills mismatch and talent shortage:
Skill-related underemployment16 in Malaysia continues to rise by 6.9 per cent annually since 2017
(Figure 2.4). This indicates the labour market’s inability to absorb all higher education graduates –
more than a third of employed persons with tertiary education were in the semi- and low-skilled
occupations. Semi-skilled wage growth is lower compared to skilled jobs. This underscores the
need for high-skilled jobs, to improve workers’ welfare and expand middle-class society.

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Figure 2.4: Skill-related Underemployment, 2017-2023
Skill-related underemployment GERD/GDP
Source: DOSM; Note: Rate of skill-related underemployment for 2017 to 2018 is unavailable as employed persons with
tertiary education data was not available publicly.
The number of graduates in science, technology, engineering and mathematics (STEM) is still
below its aspirational target of 60 per cent17. Malaysia is facing a talent shortage, especially as the
World Economic Forum expects nine out of the Top 10 emerging jobs in 2025 to be STEM-related18.
The talent shortage is further exacerbated by local talents preferring overseas jobs due to the
promise of higher pay and the difficulty in hiring skilled foreign workers.
Increased reliance on re-exports as export growth driver:
Exports as a share of GDP fell steadily throughout the IMP3 period as growing exports was
facilitated by growing imports (Figure 2.5).
Figure 2.5: Exports USD billion and % of GDP
Exports (USD Billion) % of GDP
Source: World Bank

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In terms of exports composition, the share of domestic exports to total exports declined
continuously since 2011, driven by a higher proportion of re-exports19 (Figure 2.6).
Figure 2.6: Share of Domestic Exports to Total Exports (%), 2011-2022
93%
65%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: DOSM
Malaysia’s top exports have remained largely in integrated circuits, refined petroleum, palm oil,
rubber apparel and petroleum products, and the main export destinations continue to be China,
ASEAN and the US. E&E garnered the largest share in manufactured exports for Malaysia, but its
share of the global exports has stagnated and fallen due to loss of competitiveness vis-a-vis China.
Low utilisation of free trade agreements (FTAs) by local companies:
Effectively utilised FTAs help stimulate inward Foreign Direct Investment (FDI) by enhancing the
predictability of the member countries’ investment climate20. Malaysia has signed 16 FTAs to date
̶ seven bilateral trade agreements and nine regional trade agreements21.
Total FTA utilisation has declined since COVID-19 pandemic and yet to recover (Figure 2.7). ATIGA,
ACFTA and AANZFTA are amongst the oldest FTAs and have had higher utilisation compared to
other FTAs. More recent agreements such as the AHKFTA and RCEP are less utilised as firms are
only beginning to use it. Despite being the largest FTA by total GDP, RCEP was used by fewer than
900 firms in 2022, the year it entered into force.

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Figure 2.7: FTA Utilisation by Number of Companies, 2016-2022
Source: MITI
Modern FTAs go beyond tariff liberalisation and include among others, trade and investment
facilitation, services liberalisation, and other features such as competition policy, government
procurement and intellectual property protection. FTAs can improve the location-specific factors
of its signatories by enhancing the predictability of the investment climate of member countries
through the provisions in the agreement.
Empirically, a study on the impact of ASEAN FTAs with six countries, namely China, India, Japan,
Korea, Australia and New Zealand from 2002-2012, concluded that ASEAN and ASEAN Plus
Agreements tend to stimulate inward FDI besides other traditional variables such as strong
institutions, good physical infrastructure, and low costs of doing business22. For Malaysian
manufacturing, it was found that the ASEAN Free Trade Area (AFTA) and bilateral trade agreements
have a significant positive impact on Malaysia’s non-resource-based exports that are associated
with production sharing23.

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Box Article 2.1:

Success Stories of FTAs Attracting FDIs
Expansion of the Malaysia- What are the benefits of the

Turkiye Free Trade MTFTA expansion?
Agreement (MTFTA) to
include trade-in services, Transparent & predictable
investment and e-commerce operating conditions
Removing key barriers to trade

17 Apr 2014 MTFTA signed between in services
Malaysia & Turkiye
Enhancing accessibility of
13 Jul 2021 Joint Declaration on the investments
Expansion of the FTA signed
Improving mobility for
28 Sep 2022 First Protocal to amend the professionals between Malaysia
MTFTA signed & Turkiye
Examples: Turkiye companies that have invested in Malaysia
TUSAS Malaysia Sdn. Bhd.

• Wholly owned subsidiary of Turkish Aerospace Industries Inc, one of
the leading companies in the global aviation industry
• Established in 2021 in Cyberview, Cyberjaya
Key Achievements
First Aerospace OEM Design Center in Malaysia
First engineering & design office in Southeast Asia
MOU signed with UniKL and UM ̶ 10 students completed their

internship program at The Turkish Aerospace HQ at Ankara, Tukiye
Evyap Sabun Malaysia Sdn. Bhd.
• Wholly owned subsidiary of Turkiye-based Evyap Group, a longstanding

and well-established personal care product manufacturer
• Established in 2011 in Pasir Gudang, Johor
Key Achievements
Doubled total capacity from 200,000 to 400,000 tonnes per year
Invested in a full-scale oleochemical plant to sell specialty chemicals for

personal care, food and industrial applications, besides soap
Offers tailor-made, specialty oleochemical solutions backed up by strong R&D

capabilities
Source: MIDA, MIDA Investment Performance Report, Evyap Oleo, Bernama MREM

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Marginal improvement in product and market diversification:
Malaysia’s export concentration index increased since 2006 but tapered down slightly in 2021. This
indicates increased vulnerability to external shocks as a decline in demand for a few key products
could significantly impact Malaysia’s export earnings. Continued products diversification,
especially to include new and more complex products, is paramount to expand exports.
Figure 2.8: Export Concentration Index in Malaysia, 2006-2021
Source: United Nations Conference on Trade and Development (UNCTAD)
Increasing use of non-tariff measures (NTM):
NTMs include a diverse range of policies that countries apply to imported and exported goods
that may affect trade by changing quantities traded, prices, or both. However, NTMs often
serve a legitimate purpose as they are put in place for valid concerns such as food safety and
environmental protection.
Malaysia issues up to 713 NTMs for over 5,000 products24. The majority of NTMs comprises Sanitary
and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) totalling 82.9 per cent of
the NTMs in the country with SPS at 36.3 per cent and TBT at 46.6 per cent.
NTMs can create unnecessary and burdensome regulations that impede trade and raise trade
costs, though this may be unintentional. The review of Malaysia’s NTMs must consider the need
to achieve the least possible trade restrictions and distortions while meeting legitimate policy
objectives.

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Competition in FDIs hampering Malaysia’s participation in GVC25 and

downward Domestic Direct Investment (DDI) trend:
FDI rebounded sharply in 2021 following the drop in 2020 due to the pandemic. Although FDI in
2022 was lower compared to the previous year, the amount still outperformed the peak achieved
during the IMP3 period of 2006 to 2020 (Figure 2.9).
Figure 2.9: Implemented Domestic and Foreign Investments, 2006-202226
Domestic Investment (RM bil) Foreign Investment (RM bil)

Total Investment (RM bil)
Source: MIDA

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Box Article 2.2:

High Quality Investments in Malaysia
Samsung SDI Energy Malaysia Sdn. Cell Tissue Technology Sdn. Bhd
Bhd. (SDIEM)
Started operations in Negeri Sembilan’s
industrial area in 1991 through Samsung
Eletron Devices. Malaysia (SEDM)
Approved domestic investment of
RM11.2 million in 2021 from Cell Tissue
1999 Technology Sdn. Bhd.
#1st
Cathode LED LCD Tissue engineering firm in Malaysia
Ray Tubes and the commercial arm of Univeristy
Kebangsaan Malaysia.
A total investment of RM2.8 billion invested

from September 2011 to May 2022 created:
Focus area in tissue engineeting & stem
cell technology:
2,500 3D Bioprinting- production of
jobs 1 artificial organs, which is the
next frontier in medicine
RM2.5 billion
2 3 4
annual exports
SDIEM invested cumulatively RM7 billion, to Medical Aesthetic R&D

build a state-of-the-art facility to manufacture
batteries for EV creating.
EV
Alligned with Malaysia’s emphasis on using

800 million 1,702 jobs industry 4.0 technologies capabilities,
battery cells Intergrating Environmental Monitoring
annually System (EMS) with Building Monitoring
System (BMS), which can enhance
#1st production while ensuring quality.
EV manufacturer for electric

pasenger vehicles to boost
Malaysia towards Net Zero
greenhouse gas (GHG)
emission by 2050
Source: MIDA, SDIEM, Cell Tissue Technology

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Despite the overall increase in implemented FDI into Malaysia, other countries in the region
received more inward FDI in recent years. Indonesia, the Philippines, Thailand and Viet Nam
outperformed Malaysia in terms of FDI inflows in 2021 (Figure 2.10).
Figure 2.10: Inflows of FDI into ASEAN-5, USD million
Source: ASEAN Secretariat
FDI has been an important driver to the growth of domestic value-added (DVA) because the
activities of the subsidiaries and affiliates of multinationals are part of the domestic economy and
thus contribute to the DVA. Even if multinationals do not have direct investments in the economy,
their contractual relationships with local suppliers would likewise stimulate domestic economic
activities.
Malaysia joined the GVCs27 by liberalising FDI through the Free Trade Zone Act 1971. FDI was
brought into Penang through FTZ leading to the development of the E&E cluster in the state.
Malaysia participates in GVCs mainly through backward linkage, measured by share of foreign
value-added (FVA), rather than forward linkage (measured by indirect domestic value-added
exports, or DVX). In 2019, the DVX share accounted for 29 per cent, up from 18 per cent in 1995. The
share of FVA remained higher than the DVX, at 36 per cent in 2019.
Another challenge in investments is that DDI has been on a general downward trend since 2017,
indicating the need for strategic measures to facilitate domestic investments.

Disparities in manufacturing activities across States hamper inclusive growth:
Manufacturing development is unevenly distributed throughout the different States in Malaysia.

The three main States contributing to manufacturing value-added in the west coast of Peninsular
Malaysia are Selangor, Johor and Penang, along with Sarawak in East Malaysia. Kelantan, Perlis
and Sabah contributed the least to manufacturing value-added (Figure 2.11).

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Figure 2.11: Manufacturing Value-added by State, 2021 (RM bil)
Source: DOSM
Limited GVC participation and financing in micro, small and medium enterprises
(MSMEs) development:
The number of MSMEs in Malaysia almost doubled from 2010 to 2021, with micro enterprises
forming the largest share. The services sector consistently accounted for around 80 per cent of
MSMEs, while manufacturing made up around 5 to 6 per cent.
Malaysia’s MSMEs did not achieve the export target set out in the SME Masterplan by SME
Corporation Malaysia (SME Corp) (Table 2.2). Contribution of MSME to overall exports dropped
by 5.1 percentage points due to COVID-19. However, non-MSMEs were less affected due to their
strong GVC linkages.
The value-added per employment for MSMEs was consistently at approximately 20 per cent lower
than the national labour productivity.
Table 2.2: Contribution of MSMEs to the Overall GDP and Overall Exports
Measure Actual Targets in 2020, under

SME Masterplan
2016 2020
MSMEs’ Contribution to Overall 37.3 38.1 41.0
GDP (%)
MSME’s Contribution to Overall 18.6 13.5 23.0
Exports %)
MSME’s contribution to total 47.0 48.0 62.0
employment (%)
Source: SME Corp

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MSME development is further hampered by various challenges including financing, insufficient

cash flow, high costs of doing business, digitalisation and e-commerce adoption and insufficient
financing for exports28.
Although there has been an increase in financing provided by financial institutions to MSMEs,
accessing finance remains difficult due to insufficient collateral for securing bank loans. Many
MSMEs, particularly unincorporated firms, cannot use movable or intangible assets as collateral,
leading to frequent loan rejections. Improvements are needed to enable small and medium
enterprises (SMEs) to access loans more easily in the future.
Insufficient financing for new growth ventures:
Malaysia is heavily reliant on traditional debt-based financing from banks for its industrial
development. However, this financing method may not adequately meet the diverse needs of
innovation and firms that seek new growth ventures.
This is because these firms often operate in emerging industries with unpredictable revenue
streams and limited tangible assets for collaterals. Therefore, it is crucial to have greater access to
a more diverse range of funding and financing instruments to complement the traditional bank-
led debt financing and support growth of innovative firms.
Need to improve ease of doing business:
Although Malaysia’s position in the International Institute for Management Development (IMD)
World Competitiveness Ranking improved from 32nd place in 2022 to 27th place in 2023, making it
second in Southeast Asia, Thailand and Indonesia are closing the gap.
According to IMD, regulatory reforms for ease of doing business at the national and sub-national
levels are among the key challenges for Malaysia in becoming a more competitive economy.
Malaysia has 31 investment promotion agencies (IPAs), which has led to duplicating roles and
lengthy bureaucratic processes.

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EMERGING MEGA TRENDS
Simply observing the current state of Malaysia’s appetite for nearshoring and friendshoring in
manufacturing industry is not enough to the region among global investors, especially
future-proof Malaysia. Instead, it is essential to export to the US and European Union (EU).
to prepare for the desired future economy. The ASEAN economies stand to benefit from
This requires a keen awareness of significant these developments. Moving forward, Malaysia
global trends that will influence Malaysia’s and its ASEAN neighbours should push for
development in the coming decade. Three greater vertical integration across value chains,
mega trends will affect the future of trade and particularly in semiconductors, clean energy,
investment globally, including Malaysia. critical minerals and other sectors of strategic
importance. This implies a focus on working
Geopolitical shifts – focus on economic together to build regional strength and
security complement one another rather than being a
zero-sum game.
The world of today is marked by ‘polycrisis’.
Industrial development faces multiple threats The Government understands the importance
across various dimensions. These range from of advancing in tandem with the ASEAN
the uneven recovery following the COVID-19 economies. By integrating with the ASEAN
pandemic to climate change catastrophes, as economies, Malaysia stands to be an
well as rising geopolitical tensions between indispensable part of the GVC. The way forward
countries. should involve further push for an international,
rules-based order, while maintaining ASEAN
Building resilience has become an important centrality29.
policy and strategic tool for managing this
increasingly complex web of global risks. In Digitalisation
the face of growing supply chain disruptions,
countries have had to shift their focus from As the world and Malaysia move towards
economic efficiency to economic security. embracing a digital economy, the internet
has become an indispensable utility for
Industry players these days prefer a shorter accelerating digitalisation. The pandemic has
and more secure supply chain to provide added fuel to the surge in digitalisation as
goods and services more seamlessly. In this companies were forced to adapt to working
regard, there are several key trends in supply from home and opting for online operations
chain management and geopolitics that during the lockdown periods.
countries need to incorporate in their industrial
policy planning. These include nearshoring Embracing digitalisation bolsters companies’
(preferring to invest closer to the investors’ resilience to shocks by safeguarding labour
country or origin) and friendshoring (preferring productivity and employment during
to set up manufacturing facilities in countries challenging times. This can contribute towards
that are geopolitical allies). longer term labour productivity, based on
historical evidence from the US and more
Malaysia stands to gain from these advanced European economies30.
developments. This recent trend is illustrated
by the move of notable global players to turn Apart from raising productivity, digital
to Southeast Asia as the “Plus One” to ensure transformation can help companies create
economic security and supply chain resilience. value and spur innovation. Specifically, digital
Apart from that, ASEAN is becoming the transformation enables manufacturing
alternative choice due to its strategic location, companies to improve their operations and
track record on industrial development and inventory management, as well as employee
investment management as well as its relative and customer management. Smart technology
macroeconomic and political stability. can ensure a safe working environment,
improve productivity rate and product quality.
Malaysia and the ASEAN economies are
intertwined in trade and investment with both Malaysia’s digital economy grew faster, at 8
warring economies. This unlocks opportunities per cent per annum than the GDP growth at 5
to integrate in the GVC as there is considerable per cent per annum, between 2015 and 201831.

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Malaysia’s internet economy was worth USD11.4 Physical risks from climate change can be
billion in 2020 and has the potential to create disruptive to businesses, from physical asset
an annual economic value of RM257.2 billion damages due to flood and supply-side shocks
(USD61.3 billion) by 2030. For this to happen, which would result in higher commodity
Malaysia has to facilitate digitalisation in the prices and migration of people33. Transition
public and private sectors, foster digital talent risks can result in stranded assets, requiring
and promote digital trade opportunities. reinvestment and replacement. These risks
raise the management costs for companies.
Climate Change and Environmental,
Social and Governance (ESG) Apart from that, an earlier report indicated that
labour productivity in Malaysia could fall by 25
Requirements per cent by 2045. This is due to the negative
impact of increased global warming on the
Climate change has increased two types of number of unsafe ‘heat stress’ days per year
risks for companies globally and they are: and its impact on vulnerable workers34.
• Physical risk associated with the physical ESG compliance has become increasingly
impact of climate change. By 2050, over 90 important in the face of increasing climate
per cent of the world’s largest companies risks as it deals with a company’s impact on
will have at least one of their assets highly the environment and society. Investors are
exposed to the physical impact of climate progressively taking ESG considerations into
change32, such as rising sea levels affecting account in their selection of locations to invest,
port operations and increased droughts apart from other traditional variables such as
harming hydroelectric power generation. market size, infrastructure, macro-economic
• Transition risk as countries shift toward a condition and political stability. Thus, proactive
low-carbon economy and are exposed to measures to meet ESG compliance should be
regulatory changes and new economic used to drive future investments.
requirements. For instance, the use of less
carbon-intensive fuels, which may drive up
the costs of production in the short-term.

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OPPORTUNITIES FOR MALAYSIA
All three mega trends imply the reconfiguration of GVCs for risk diversification, leading to a shift
in strategy from economic efficiency (‘just-in-time’ model) to economic security (‘just-in-case’
model).
In the new model where proximity is valued, there will be an increasing regional focus, where
manufacturing will be less fragmented and more concentrated in terms of value-added. It will be
platform-driven, more asset-light, with a growing share of services35.
Malaysia is well positioned amidst these changes to become a key destination for investors
looking to diversify out of China and the US as part of the evolving GVC transformation based
on Malaysia’s competitiveness ranking (Figure 2.12). Throughout this period, Malaysia is ranked
second among the selected ASEAN member countries, but Malaysia has to act fast to improve its
ranking aggressively to be among the top 20 nations.
Figure 2.12: World Competitiveness Ranking, 2019-2023
Source: IMD

3
VISION, GOALS AND MISSIONS
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38 Master Plan 2030 VISION, GOALS AND MISSIONS
With Malaysia’s strategic position to capitalise on the opportunities, it is pivotal for the nation
to set forth an ambitious and holistic vision to propel Malaysia’s industrialisation for the next
breakthrough. The vision provides a compelling purpose to galvanise the entire nation – both the
Government and the industries.
VISION
Aligned with the NIA Goals, the NIMP 2030 Vision is for Malaysia to have:
Well-developed new and existing industry

Competitive industry with high economic
clusters
complexity
– strengthen the existing industrial clusters by
– foster industries that embrace innovation,
upgrading capabilities, whilst supporting the
produce sophisticated products and cutting-
emergence of new high-growth industries from
edge technologies to compete with global
trends such as green economy and digitalisation
frontier technologies in a vibrant ecosystem
High income and skilled workforce

– create innovation-driven, knowledge-based Balanced and inclusive participation
job opportunities and help businesses create – foster balanced growth across all States
high and better paying jobs that raise the in Malaysia and across different profiles by
standard of living and expand the middle-class developing manufacturing opportunities
society
Strong domestic linkages Sustainable development

– enhance participation of the local players, – embrace a balanced industrial growth
including SMEs to strengthen domestic supply model that includes social, economic and
chains and become more connected within sustainability practices by embracing ESG
the global value chain practices
To achieve this, Malaysia must ensure that every part of the nation achieves its full potential.
The NIMP 2030 is focused on strengthening public and private investment partnerships in
high growth opportunities, nurturing an innovative and entrepreneurial culture, driving R&D
priorities for industries, improving connections across regional industrial clusters and catalysing
transformation in investment and labour productivity across the economy.
GOALS AND TARGETS

The NIMP 2030 is expected to achieve high-impact growth for Malaysia. It is driven with the aim
to contribute to the national manufacturing top-line targets (Figure 3.1).
Value-added (GDP) Employment Median salary
Manufacturing’s value-added Employment is expected Through the NIMP 2030’s

(GDP) is expected to grow to grow at 2.3 per cent interventions, median salary
by 6.5 per cent from 2022, from 2022, consistent with for manufacturing sector is
reaching RM587.5 billion historical growth rate, expected to grow by 9.6 per
by 2030. This indicates an providing livelihood for 3.3 cent, using median average
increase of 61 per cent from million Rakyat by 2030. pre-pandemic level, to reach
today’s GDP, derived by NIMP The industry’s growing RM4,510. This is an increase
2030 interventions for high- employment trajectory is due of approximately 128 percent
impact and emerging growth to the creation of high-skilled from 2021, driven by the
sectors including chemical, jobs as the country advances shift of the industry towards
E&E, electric vehicle (EV), towards higher value- higher value-added activities
aerospace, pharmaceutical added activities coupled and high-skilled jobs
and advanced materials. with greater use of labour- opportunities created.
enhancing automation and
technological advancements.

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VISION, GOALS AND MISSIONS Master Plan 2030 39
The national manufacturing top-line targets of NIMP 2030 are as illustrated below:
Figure 3.1: NIMP 2030 Value-added, Employment and Median Salary Targets
Macroeconomic Targets for Manufacturing Sector (impact-based)
Value added
(GDP) Employment Median salary
(RM billion) (million persons) (RM)
587.5(CAGR 6.5%)
3.3
(CAGR 2.3%)
4,510
(CAGR 9.6%)
364.1 2.7 1,976

61% 20% 128%
Legend: Baseline (2021) Baseline (2022) Target (2030) Value increase
Achieving the manufacturing top-line targets This goal can be achieved by strategies such
will drive more sophisticated production, as building industrial capabilities to move
technologies and expertise, leading to the up the value chain and fostering research,
creation of high-skilled jobs. This will contribute development, commercialisation and
to improving the overall manufacturing innovation (RDCI) ecosystem. Through a
industry productivity level. robust and dynamic ecosystem, businesses,
academia and civil societies can work together
These manufacturing top-line targets will to innovate and develop new technologies for
require the NIMP 2030 to deliver a set of goals industries in the areas of strategic importance,
aligned to the Vision. The NIMP 2030 identified integrate value chains across sectors and
six key Goals, guided by the NIA’s 5 key pillars support the internationalisation of Malaysian
and ESG as an overarching theme, which are companies through access to more in-market
as follows: opportunities, robust trade facilitation for
intellectual properties (IPs) and strategic
Increase economic complexity collaboration with international partners under
existing FTAs.
Malaysia’s journey towards accelerating
economic development towards a high- Create high-value job opportunities
income nation hinges upon the acquisition
and utilisation of productive knowledge, The creation of high-value job opportunities is
particularly in increasingly sophisticated crucial to uplift the society. To remain resilient,
industries and products. Malaysia’s economy it is imperative for Malaysia to shift away from
must effectively diversify into products that creating low-skilled, traditionally labour-
require rich and deep know-how which only a intensive occupations towards knowledge-
few other countries master, from innovation- intensive jobs. Global mega trends such as the
intensive sectors such as E&E, aerospace, ICT, rising role of Industry 4.0 technologies, climate
pharmaceutical, medical devices to the diverse change and environmental sustainability,
high-tech engineering products. By increasing demographic shifts and globalisation of value
complexity, Malaysia aims to enhance the chains are changing the nature of jobs. Skills
strategic competitive positioning in industries transformation to develop future competencies
in a wider range of products and services. remains at the forefront of the industrial
strategy. It is imperative to support upward

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mobility of the bottom 20 to 30 per cent of the development within clusters, Malaysia can
workforce, which could see jobs displaced and stimulate innovation, attract investments
threatened by automation. and promote the growth of high-potential
industries.
The NIMP 2030 aims to create high-paying jobs
and improve living standards for Malaysians Apart from that, clusters facilitate the sharing
to build a sustainable middle-class society of resources, access to specialised services and
with high purchasing power. This is important the creation of economies of scale.
to address present challenges such as skill-
related underemployment affecting over Improve inclusivity
894,000 individuals in 2022 and issues of
limited increase in average real income for the Malaysia recognises the importance of
bottom 50 per cent of the workforce. ensuring that the benefits of economic growth
are shared equitably among all segments
Among the strategies set include attracting of society. Improving inclusivity contributes
high-quality investments from emerging to social cohesion, stability and long-term
industries, building a good education base to sustainable development.
enhance future workforce readiness, upskilling
and reskilling the workforce through market- By promoting policies and programmes
responsive STEM and Technical and Vocational that address social and economic disparities,
Education and Training (TVET) education Malaysia aims to provide equal opportunities for
streams, implementing progressive wage participation and advancement. This includes
and inclusive workforce policies, as well as initiatives such as promoting gender equality,
strengthening entrepreneurship opportunities. supporting marginalised communities and
empowering Bumiputera participation.
Extend domestic linkages
Enhance ESG practices
Developing strong domestic linkages
is essential for sustainable industrial ESG practices have gained significant
development. This goal emphasises the importance in today’s world. This involves
importance of developing the breadth and adopting environmentally friendly production
depth of Malaysia’s value chains for domestic processes, ensuring responsible resource
industries, suppliers and service providers to management, promoting fair labour practices
foster collaboration, knowledge-sharing and and strengthening corporate governance.
innovation.
Malaysia aims to enhance ESG practices
By strengthening local value chains, Malaysia within its industries to promote sustainable
can enhance competitiveness in providing development. By embedding sustainability
holistic solutions and stimulate investments principles in industrial operations, Malaysia
in industries with the greatest backward or can mitigate environmental impacts, promote
forward linkages. This also supports domestic social well-being and enhance the long-term
industries to achieve greater integration resilience and reputation of its industries.
with global value chain and deepen local
entrepreneurship. Extending domestic With the above Goals, the NIMP 2030 has
linkages can lead to technology transfer, skill formulated the following targets:
development and the development of a robust
support ecosystem for businesses.
Develop new and existing cluster
Malaysia aims to develop new clusters in

emerging sectors and strengthen existing
clusters to enhance specialisation and
competitiveness. By fostering collaboration,
knowledge exchange and infrastructure

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Table 3.1: NIMP 2030 Targets
The NIMP Outcomes Measures Baseline Targets

2030 Goals (2021) (2030)
Sophistication in economic value- High-tech 8.1% of GDP 15% of GDP
added manufacturing Consistent with the
achievement of
• Intensifying efforts in higher and services countries like Korea
value-added activities value-added (15.6% of GDP)
share of GDP
Increase Malaysia as a regional innovation GERD to GDP 1.0% 3.5%
economic hub In line with top 10 OECD
complexity • Driving R&D-intensive
economies
(between 2.8-5.6% of
companies and academia GDP as at 2021)
to accelerate breakthrough
technologies and transform
industries, develop new
products and core technologies
High-skilled jobs in the Number of jobs N/A 700,000 total in
manufacturing sector created 7 years
• Generating high-income job
opportunities in manufacturing
and related services which
Create high- would support a sustainable
value job base of middle-income earners
opportunities
Fair income in the manufacturing Median salary RM1,976 RM4,510
sector From the previous
increase of RM64 per
• Raising income levels and annum, between 2011
providing fair employment to 2021 to RM 282 per
opportunities annum between 2021
to 2030.
Internationally competitive SMEs Share of export- 11.7% 25%

• Integrating domestic SMEs into oriented SMEs Doubling share of SMEs
involved in vendor
the Global Value Chain development.
Deepened local supply chain Domestic 49% 65%

Extend integration value-added in (2018)
domestic • Fostering more interconnected manufacturing
linkages and robust domestic economy,
greater contribution from
local companies to production
of domestic output and
supporting cross-linkages
across sectors
Accelerated growth in existing core Global market 3.0% 6.0%
clusters by diversifying into new share in
products high-tech
• Deepening existing core manufacturing
Develop new clusters for greater economic exports
and existing contribution
clusters
Accelerated growth in emerging Global market 2.0% 4.0%
markets such as 4IR and digital share in green
• Expanding to new higher-value and digital
clusters exports

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The NIMP Outcomes Measures Baseline Targets

2030 Goals (2021) (2030)
Catalysed sectoral and regional Realised FDI Average 25%
development through investments and DDI share 13%
• Encouraging distribution of of contribution Based on
investment
investments for more equitable to State GDP approvals
regional development across figures
the States provided by
MIDA
Improve High manufacturing value-added Manufacturing 22% of State 30% - 35% of State
Inclusivity participation by less developed value-added in GDP GDP
States less developed In line with advanced
States’ GDP (between
• Encouraging value-added and States
35% to 37%)
higher income generating
activities for balanced growth
distribution across the States
• Support greater regional
industrial linkages across
activities between the States
Derisked economy against ESG Sustainalytics 56.5 75-100
factors ESG Index (Grade C) (Grade A)
• Increasing Malaysia’s
attractiveness as an investment
destination by meeting global
ESG standards and investors’
Enhance ESG needs
practices
Drive towards Net Zero aspirations Reduction 33% 45%
• Achieving commitments in carbon Based on
percentage
in reducing GHG emissions emission changes in
intensity under NDC by 2030 intensity based GHG levels
on NDC goals between 2005
and 2019
MISSION-BASED APPROACH
The NIMP 2030 takes on a Mission-based approach in industrial policy development. This rallies
the nation to work together collectively towards achieving the NIMP 2030 Vision and shared set
of Goals. This approach will also serve as a lever to enhance capabilities in line with the strategic
investment and industrial goals under the NIA.
To effectively drive Malaysian industrial development requires “moon-shot thinking” – setting

ambitious goals and pursuing them with bold solutions to achieve transformative outcomes.
This approach unites the nation, fostering collaboration to transform industries collectively. It
galvanises the whole-of-government and the whole-of-nation, with the participation of both
public and private sectors to realise the Missions.
It is a shift from the sectoral-based approach of previous IMPs, which primarily focuses on the
vertical action plans of individual sectors. The Mission-based approach unlocks the cross-cutting
nature of the sectors with horizontal strategies. It outlines targeted and focused action plans in
ensuring successful implementation to transform Malaysia’s industry.
The NIMP 2030 recognises the importance of focusing on across-the-board shared challenges
and common Missions that can generate broad-based effects and impacts.

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MISSIONS
To meet the Goals and targets, four Missions were formulated (Figure 3.2):
MISSION 1 - Advance economic complexity:

This is to encourage high-growth industries to innovate and produce more sophisticated
products. This will enhance the competitiveness of Malaysia in the global market
MISSION 2 - Tech up for a digitally vibrant nation:

By embracing a whole-of-nation digital transformation, Malaysia can drive digital adoption,
spur innovation, enhance labour productivity, and unlock opportunities in digital frontier
technologies
MISSION 3 - Push for Net Zero:

This emphasises Malaysia’s commitment to addressing climate change by striving for a Net
Zero future. Through sustainable practices and green initiatives, Malaysia aims to reduce
carbon emissions and build a resilient and environmentally friendly economy
MISSION 4 - Safeguard economic security and inclusivity:

Malaysia aims to build resilience and enhance trade security against global shocks and
geopolitical tension. Apart from that, Malaysia is creating an enabling environment that fosters
entrepreneurship, supporting SMEs, and promoting equitable participation in economic
activities to narrow all forms of disparities between the States
The Missions are interlinked and requires all to be advanced simultaneously towards achieving
the Goals and targets. However, there are multiple systemic and institutional issues that the
Malaysian industries are facing – which will be addressed through four Enablers:
Enabler 1 Enabler 2
Mobilise financing ecosystem Foster talent development and
attraction
Enabler 3 Enabler 4
Establish best-in-class investor journey Introduce whole-of-nation governance
for ease of doing business framework
The Missions and Enablers identified will be executed through 21 Strategies and 62 Actions Plans
to unlock the needed enabling ecosystems. Several catalytic Mission-based Projects (MBPs)
have been identified to catapult the mission-based implementation. There will be continuous
engagements across industries and stakeholders through ‘industry deals’. These deals provide an
avenue for industry players to foster collaborative partnerships and submit strategic proposals for
MBPs that can be executed in delivering the Missions. Those will drive tangible actions towards
achieving the Missions’ intended outcomes.
The overall NIMP 2030 framework is illustrated below:

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Figure 3.2: Overall NIMP 2030 Framework
GOALS

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Mission-based Projects:
MBP 3.1 Create decarbonisation
pathway role models
MBP 3.2 Launch locally-
manufactured EV
MBP 3.3 Deploy large-scale CCUS
solutions

4
MISSION 1 :
ADVANCE ECONOMIC COMPLEXITY
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48 Master Plan 2030 MISSION 1 : ADVANCE ECONOMIC COMPLEXITY
Increase Create high- Extend domestic Develop new & Improve Enhance ESG
economic value job linkages existing clusters inclusivity practices
complexity opportunities
Malaysia is currently positioned 24th in the Economic Complexity Index ranking. While
neighbouring countries have been catching up and moving up the rank e.g. Thailand (37th to
29th) and the Philippines (45th to 37th), Malaysia’s position has remained stagnant in the last 10
years. Malaysia aspires to emulate the economic complexity of Japan, South Korea and Singapore.
Malaysia’s established manufacturing ecosystem has given the country the opportunity to expand
into more advanced and high value-added manufacturing activities. For the most part, Malaysia
has been involved in medium to low value-added segments of the manufacturing value chain.
This calls for the industries to innovate, produce and export more sophisticated products and
diversify production capabilities.
In pursuit of this Mission, Malaysia aims to facilitate industries to move up the value chain, develop
a comprehensive ecosystem, reduce dependency on external supply chains and perform targeted
R&D focusing on key sectors.
The successful implementation of Strategies and Action Plans under Mission 1 will result in
impactful outcomes as follows:
• Diversification of the economy:
While Malaysia has a relatively diversified export basket mix, the country ranks 51st out of 133
countries in terms of export diversity. The Mission is envisioned to improve this performance
by expanding our know-how to tap adjacent products with higher value-added activities,
integrate into new high-growth opportunities, unlock new invention and reduce dependency
on importation of critical products;
• Improved global competitiveness through complex product exports:

Malaysia will be able to produce a wider range of sophisticated and value-added products
and services across the various sectors. This will enhance Malaysia’s participation in the global
value chain; and
• Higher income and wages:
Malaysia will be able to create more high-skilled STEM jobs, as well as attract and retain a
world-class talent ecosystem that drives innovation.
There are five Strategies, 15 Action Plans and four Mission-based Projects to be carried out to
achieve Mission 1, as illustrated below:

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MISSION 1 : ADVANCE ECONOMIC COMPLEXITY Master Plan 2030 49
Figure 4.1: Mission 1 – Advance Economic Complexity
MISSION 1
Advance economic complexity
1.1 Expand to high value-added activities of 1.3 Establish cooperative ‘vertical integration’
the value chain for global value chain
1.1.1 Create global IC design champions from 1.3.1 Leverage alliance with ASEAN countries
Malaysia to integrate the semiconductor, advanced
1.1.2 Attract global leader to establish wafer materials and clean energy value chain
fabrication in Malaysia 1.3.2 Develop vertical integration programmes
1.1.3 Shift from basic to specialty chemical through IndustryConnect conferences
1.1.4 Build Malaysian champions for game
changing advanced materials 1.4 Foster Research, Development,
1.1.5 Identify high value-added opportunities Commercialisation and Innovation (RDCI)
in the aerospace, pharmaceutical and ecosystem
medical devices sectors 1.4.1 Assign specific topics and KPIs to
universities for industrial-linked R&D
1.4.2 Digitalise IP application and launch
enhanced National IP Policy
1.2 Develop entire ecosystem to support the
high value-added activities 1.5 Increase manufacturing exports
1.2.1 Build strong local SMEs in manufacturing 1.5.1 Implement national trade advocacy
and related services to support the campaign to increase industry utilisation
industry champions of FTAs
1.2.2 Integrate value chains between: 1.5.2 Rejuvenate “Made in Malaysia” branding
• M&E and Medical Devices 1.5.3 Address trade restrictive non-tariff
• Semiconductor and EV measures (NTMs) and compliance of
• Chemical and Pharmaceutical standards
1.5.4 Update FTA based on geopolitical
conditions
MBP 1.1 MBP 1.2 MBP 1.3 MBP 1.4
Create global IC Attract new advanced Deepen to specialty Groom champions

design champions in wafer fabrication in chemical vertical in 4 game changing
EV, RE and AI Malaysia advanced materials

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Expand to high value-added activities of the value

STRATEGY 1.1 chain
Malaysia is well-positioned to transform its economy through high value-added activities along
the manufacturing value chain, given the current accumulated production experience. Of
significance, the industrial upgrading of capabilities especially through horizontal and vertical
integration are becoming important features within a modern and competitive production
structure, especially with more flexible processes driven by automation and digitalisation.
All manufacturing and MRS sectors have the opportunities to expand to high value-added
activities, for instance:
• E&E – Adopt higher level of technology in advanced packaging, such as Fan-Out Wafer-Level
Packaging and Chiplet die-to-die packaging;
• M&E – Expand into refurbishing services (e.g. industrial turbines and generators) and energy
efficient solutions (e.g. water and wind turbines, and photovoltaic power generating systems);
• Metal – Develop flat products, such as hot-rolled sheets and strips, plates, galvanised sheets
and other metallic coated sheets;
• Food processing – Expand into ready-to-eat meals and alternative proteins; and
• Textile – Leverage smart and advanced textiles for defence, automotive interior furnishings,
medical, geo-textile and sportswear.
In this strategy, Malaysia emphasises on expansion to higher value-added activities from design
and development, product development, supply chain management to integrated services
solution delivery. Among the high-tech manufacturing industries identified for this strategy
include E&E, chemical, advanced materials, aerospace, pharmaceutical and medical devices,
which can generate high economic and innovation knowledge spillovers. Going forward, Malaysia
strives to shift away from traditional manufacturing models (e.g. contract manufacturing) and
methods towards becoming an innovation-led manufacturing hub.
To achieve this, five Action Plans have been formulated:
ACTION PLAN
Create global IC design champions from Malaysia
1.1.1
The E&E sector forms about 40 per cent of Malaysia’s manufacturing exports (twelfth largest
exporter of E&E products and sixth largest exporter of semiconductor in the world36). With
semiconductors making about 60 per cent of the total E&E exports, Malaysia is currently among
the leading hub for assembly, including outsourced, testing and packaging activities. Building
on these capabilities and trends such as the digital revolution which require more advanced
chips with greater computational power and memory capacity, Malaysia aims to develop a more
integrated involvement across the front-end and back-end semiconductor ecosystem. This will
be crucial even as the future semiconductor manufacturing moves towards advanced packaging
models, where multiple chip dies are integrated within a single package to minimise fabrication
cost and yield higher performance.
On the front-end of activities, Malaysia aims to deepen involvement in the Integrated Circuit
(IC) design which confers higher profit margins and greater specialisation within the global
semiconductor value chain. IC design - which includes design of both physical integrated circuits
and associated software - accounts for roughly half of global semiconductor industry R&D
investment and value-added. Furthermore, the design of ICs has a sustainable and competitive
advantage if close collaboration can be promoted with OEMs in high-technology industries such
as mobile communication, defence, medical devices and automotive that requires ICs embedded
within their systems.

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The involvement in leading-edge chip design and manufacturing will require nurturing strong
capabilities in research, supply chain management, talent, and intellectual property (IP) protection,
as well as navigating through government policies.
The NIMP 2030 plans to support the development of IC design capabilities to capitalise on fast-
growing end-market applications such as:
Electric Vehicle
Proliferation of EV and green mobility presents opportunities for local E&E players to the tune of
RM961 billion in electronics and sensors for the global market as well as RM141.2 million in terms
of potential annual consumption. Electric drives and energy control system will utilise power
inverters, while autonomous driving systems and other on-board control will require purpose-
built AI-chips and a wide range of sensors across radar, Light Detection and Ranging (LiDAR)
and vision. Custom-designed chips also play an integral role in critical safety features such as
redundant power systems to ensure that chips operate safely and reliably in the most challenging
environments.
Renewable Energy
Renewable energy (solar power generation) and energy storage will require greater power
management. In this regard, new materials such as Gallium Nitride (GaN) and Silicon Carbide
(SiC) are paving the way for higher efficiency and longer lifetime power conversion devices. The
use of GaN and SiC transistors in solar inverters can boost system efficiency. At present, more
than 90 per cent of the balance of system electronics are imported. Going forward, domestic
development of power electronic modules can be synergised to support present value chains for
solar in Malaysia, especially in Electronic Manufacturing Service and Advanced Test Packaging,
as well as downstream deployment of solar projects domestically through Large Scale Solar (LSS
capacity) and globally.
Artificial intelligence (AI)

AI applications require parallel computation, higher CPU-memory throughput, and an increase
in need for edge-based computation for use cases. AI-based chips (e.g. Application Specific
Integrated Circuits (ASIC) and Field-Programmable Gate Array (FPGA)) for low-to-medium-based
complexity is up to 1,000 times more efficient as a general-purpose CPU for AI tasks. This opens
the opportunity to utilise higher node sizes of up to 28nm - 40nm and tune the AI chip to AI
application’s complexity rather than using the brute force of smaller node size for general CPUs.
Beyond popular consumer applications such as smart phones and PCs, these AI chips are also
applied for drones, autonomous robots and manufacturing control and quality monitoring. As
these latter applications are still emerging, Malaysia has an opportunity to build indigenous
technology supply for industries by way of AI chips, control modules and sensors for local and
regional industries to build inertial momentum.
MITI will lead the action plan, with support from Malaysian Investment Development Authority
(MIDA), Malaysia Productivity Corporation (MPC), Standard and Industrial Research Institute of
Malaysia (SIRIM), Collaborative Research in Engineering, Science and Technology (CREST), MIMOS,
Malaysia Semiconductor Industry Association (MSIA) and key industry players. The following are
key steps to be undertaken:
• Create a supportive ecosystem to accelerate the growth of local IC design champions;

• Facilitate the collaboration of industry, academia and the Government to create a robust
ecosystem to address business demands; and
• Provide support to the IC design champions i.e. talent development, funding and incentives.

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ACTION PLAN Attract global leader to establish wafer fabrication

1.1.2 in Malaysia
Wafer fabrication is a manufacturing process of creating semiconductor wafers that are used to
produce ICs. Design and wafer fabrication are closely interlinked. Fabrication provides vital input
on the design’s manufacturability by providing the test silicon to validate the electronic model.
Such close collaboration is especially critical to support scaling new processes which are faced
with inherent uncertainties in modelling and achieving a target manufacturing yield.
Thus, the need to establish a wafer fabrication outfit grows greater even as Malaysia moves up the
semiconductor value chain. Malaysia’s focus will be primarily in the mid-range wafer fabrication
as this configuration typically provides the best cost-to-performance balance. Apart from that,
the establishment of a wafer fabrication facility will also provide a diversification strategy even
within East Asia which has the highest concentration for wafer fabrication.
Figure 4.2: Semiconductor Value Chain
R&D and IC Design Wafer Fabrication ATP EMS
Assembly, Testing Electronics

High value added and Packaging manufacturing
services
Malaysia has a rich Platform for IC Malaysia has a strong

pool of engineers to design R&D presence - to build on
support IC design existing strenghts to
extend market position
Local companies High investment cost

in IC design space - Large spillover
Focus: IC design Focus: 28-40nm

• Electric Vehicle (EV) • Attract 1 global
• Renewable Energy leader to establish
(RE) fabrication in
• Artificial Malaysia
Intelligence (AI)
This action plan will be led by MITI and supported by MIDA, MSIA, SIRIM, CREST, MIMOS and
several key industry players. Key activities will be to:
• Create a supportive ecosystem to attract global wafer fabrication leaders and integrate
opportunities with end applications;
• Facilitate the collaboration between industry, academia and the Government to create a
robust ecosystem to address business demands; and
• Provide support to the wafer fabrication companies i.e. talent development, funding and
incentives.

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ACTION PLAN
Shift from basic to specialty chemicals
1.1.3
The specialty chemical industry plays a pivotal role in driving innovation and the production of
high-value specialty chemical products. Known for their complexity, specialty chemicals hold
substantial potential for exports, thus contributing to the economic complexity of the country.
The specialty chemical market has a huge potential because of its diverse usage:
• Electronic chemicals (semiconductor use for etching, bonding, testing);

• Construction chemicals (concrete construction, metal construction);
• Nutrition chemicals (flavouring, extend shelf life);
• Care chemicals (textile manufacturing, personal care products); and
• Agro-chemicals (pest control, fertilise soil, promote plant growth).
Figure 4.3: Chemical Sector Value Chain
End-use/
Feedstock High Value Added
Building Specialty
Feedstock Intermediates Polymers
blocks Chemicals
5 Focus areas
Agrochemical Care Chemicals Agrochemical Electronic Construction

• Pest control • Textile • Food Chemicals Chemicals
• Fertilise soil manufacturing processing • Semiconductor • Concrete
• Promote plant • Personal care • Extend shelf etching, construction
growth products life, enhance bonding, • Metal
taste & colour testing construction
Current Under NIMP

Export
Other countries Feedstock Base
Export of
Chemical Production of specialty
Process to Specialty specialty
chemical in Malaysia
Chemical chemical
End use
Import
Malaysia
Malaysia currently produces and exports • Complement the development and

feedstock and intermediate products and growth of other key prioritised sectors
imports the value-added intermediates in and create opportunities for export (e.g.
the form of specialty chemicals. To remain pharmaceutical, E&E, etc.).
competitive and enhance domestic linkages,
Malaysia has to advance into producing higher MITI will lead this action plan, supported by
value-added intermediates and specialty MIDA and key industrial players. Key activities
chemicals. will include:
Specialty chemicals produced locally will: • Understanding and providing the necessary
support required by other local players
• Strengthen the domestic value chain, thus (funding, attracting investment);
reducing the need to import; • Strategising the upskilling of local
• Boost the local development of niche capabilities; and
expertise in specialty chemical technologies; • Facilitating the ecosystem to support the
and specialty chemical industry.

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Box Article 4.1:

Specialty Chemicals and Their Uses
What are specialty chemicals?

Commodity Lower Higher Specialty
chemicals value add value add chemicals
§ Produced in large § Typically manufactured in
quantities smaller batches
§ Primarily used as raw § Offers unique characteristics
materials for products and performance properties
Quick Facts
§ In 2019, Specialty Chemicals accounted for 11.7% of investments in Malaysia’s
manufacturing sector (RM 4.8 billion)
§ From 2019 to 2026, the global market for Specialty chemicals is expected to
grow at a compounded annual growth rate of 5.2%
Agrochemical
Used to enhance crop yield - typically
through protection of plants from pests
and diseases e.g. pesticides, herbicides
Construction chemicals Care chemicals

Used to enable/ease NIMP Specialty Used in formulation of
manufacturing or Chemicals personal care products
improve performance of personal care products such
construction materials Focus Area as cosmetics or toiletries
e.g., concrete admixtures, e.g.; emollients, surfactants
protective coatings
Electronics chemicals Nutrition chemicals

Used in production of Used on food products to
electronic components enhance qualities such as
such as semiconductors taste, texture, appearance
and PCBs e,g., silicon or preservation e.g. flavour
enhancers
Source: S&P Global, MIDA

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ACTION PLAN Build Malaysian champions for game changing advanced

1.1.4 materials
Malaysia possesses abundant natural resources that are instrumental in the production of
advanced materials. These materials hold great significance in global manufacturing industries
and are highly sought after by multinational corporations (MNCs) worldwide. Apart from that,
advanced materials play a crucial role in key industries within Malaysia such as EV, healthcare
and aerospace. Leveraging its resource advantage, Malaysia is well-positioned to contribute
significantly to the production and utilisation of advanced materials.
The National Advanced Materials Technology Roadmap 2021-2030 identified four game changing
advanced materials that have the potential to revolutionise the manufacturing industry:
Table 4.1: Game Changing Advanced Materials
Advanced Materials Characteristics Application (Potential usage)

Graphene Thinnest, strongest and most Electronics, medical devices, batteries
conductive material
Nitinol Shape memory effect (returns to its Medical devices, aerospace
original shape when heated up), super
elastic, pseudo-elastic
Rare Earth Strong, lightweight, high magnetic Ideal for battery production, EV
properties batteries
Microcrystalline Environmentally friendly and Ingredient for food, cosmetics,
Cellulose (MCC) sustainable polymer pharmaceutical, structural composites
Polymer
To produce local champions and spearhead the growth and usage of advanced materials, it is
imperative that the Government facilitates the following:
• Promote and proliferate downstream application of advanced materials (awareness of

benefits to industry players across sectors) and strengthen partnerships to obtain greater
market access;
• Provide better access to funding, talent and infrastructure for R&D, and provide support to
commercialise R&D; and
• Protect IP rights and provide incentives (e.g. for R&D activities).
This action plan will be led by MITI and supported by Ministry of Science, Technology and
Innovation (MOSTI), Ministry of Natural Resources, Environment and Climate Change (NRECC),
MIDA, Malaysian Industry-Government Group for High Technology (MIGHT), SIRIM and key
industry players.

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Box Article 4.2:

Applications of Advanced Materials
What is advanced materials?
“ Novel or improved materials

engineered for targeted and improved properties, that provide
New or better materials
Designed to have clear

advantages to
a distinct advantage in (physical or functional) performance
common materials
and application when compared to conventional materials,
which enable and provide innovative technological solutions “ To provide solutions that
benefit the economy,
and sustainability to the economy, environment and society
environment and society
MALAYSIAN DEFINITION FOR ADVANCED MATERIALS
Surfaces
• Coatings and emerging adhesives/ sealants
• Improve the properties of materials
• E.g. protective coatings can increase the lifetime of a product while also reducing
maintenance costs by slowing down degradation
Structures
• Metals, composites, polymers, high performance structural ceramics, process
technologies and geopolymer
• Improve on the limits of typical engineering materials
• E.g. metals can be developed for extreme features, such as high thermal resistance or
electrical conductivity
Future Material Platforms

• Nanomaterials, reticular materials, smart coatings, shape memory and metamaterials
• Tackles problems in the status-quo: sustainability and materials security, materials for
energy and high value markets
• E.g. metamaterials developed to achieve electromagnetic properties have applications
in many industries such as cloaking devices in defense, energy harvesting and solar
cells and acoustic and vibration control
Importance
Essential for innovation and Offer functional solutions and Fuel economic growth, value
growth in various industries drive market development creation and competitiveness
worldwide, including Malaysia in sectors like healthcare, in the manufacturing sector
aerospace and automotive
Source: National Advanced Materials Technology Roadmap 2021-2030

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ACTION PLAN Identify high value-added opportunities in the aerospace,

1.1.5 pharmaceutical and medical devices sectors
The aerospace, pharmaceutical and medical devices are important industries in Malaysia.
The aerospace sector in Malaysia is home to several major international companies. These
companies manufacture a wide range of aircraft components and systems in Malaysia, including
parts of the wing, engine components, avionics and drones. Apart from that, there are opportunities
present in astronautics upstream segment, in particular space-related manufacturing of satellites
and other spacecraft parts and components. On healthcare manufacturing, Malaysia has a strong
pharmaceutical and medical devices base which can be enhanced for future growth in a higher
range of product segments.
Figure 4.4: Key Growth Segments of Aerospace, Pharmaceutical

and Medical Devices Sectors
Aerospace Pharmaceutical
MRO
Aerospace Manufacturing
Including aeronautics,
composite materials Manufacture of API Halal
biologics manufacturing medicines
System Integration of niche
Including capabilities in UAV botanicals
or drone
Engineering & Design Medical Devices

Services
Education & Training
Astronautics
Design, manufacturing, Minimally Point of care Medical
and assembly of space invasive device products devices from
equipment, satellites, convergence of
spacecraft, gound technologies
equipment
The Government recognises huge potentials in these sectors where the aerospace sector revenue
in Malaysia is estimated to skyrocket to RM55 billion by 203037 while the pharmaceutical sector’s
GDP value is estimated to reach RM2.5 billion by 2030. It is important that MITI and the Ministry
of Health (MOH) along with MIDA, National Aerospace Industry Corporation (NAICO) and Medical
Device Authority (MDA) work together to:
• Create a supportive ecosystem to cater to the industry’s needs (including collaboration and
partnerships between businesses, universities and Government Agencies);
• Foster collaboration and knowledge sharing among industry players to adopt the industry’s
best practices; and
• Facilitate the industry’s product development including R&D, testing and standards
compliance.

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Develop entire ecosystem to support the high value-

STRATEGY 1.2 added activities
Developing an ecosystem to support high value-added activities in Malaysia involves creating a

conducive environment that stimulates and sustains the growth of industries engaged in activities
of high economic value. This ecosystem focuses on providing the necessary infrastructure,
resources, policies and support systems to enable manufacturing industries to thrive in activities
that add significant value to products and services. Such an ecosystem encompasses various
elements, including R&D capabilities, access to funding and grants, availability of skilled talents,
robust IP protection, strong industry-academia collaborations, supportive government policies
and incentives and a well-developed supply chain through the participation of SMEs.
This approach helps create a favourable environment for innovation and the development of high
value-added sectors, positioning Malaysia as a dynamic and attractive destination for high-value
economic activities which can result in:
• Job creation – generating medium and high-skilled workforce demand; and

• Enhance the country’s competitiveness for innovation.
To achieve this, two Action Plans have been formulated:
ACTION PLAN Build strong local SMEs in manufacturing and related

1.2.1 services to support the industry champions
To meet the demand along the value chain, it is crucial to enhance the capabilities of small and
medium enterprises (SMEs) and involve them in higher value-added activities. The ambition is
to increase the contribution of SMEs to the country’s GDP currently at 38 per cent38, to reach the
levels seen in developed countries, ranging from 50 to 60 per cent.
Manufacturing sector SMEs play a pivotal role to support large local companies (LLCs) and MNCs
as local suppliers with the required skillsets. This reduces the overall cost for these LLCs and MNCs
to operate in Malaysia and helps create a more sustainable and robust supply chain.
Figure 4.5: Industry Champion Value Chain
High Value High Value
R&D Design Assembly Logistics Marketing Services
SMEs and Mid-Tier Companies
Assist SMEs/ Compliance to standards Supplier to

MTCs to uplift and regulations with MNCs and
capabilities emphasis on LLCs
• Quality
• Digitalisation
• ESG
Notes
SME - Small and Medium-sized Enterprise MNC - Multinational Company
MTC - Mid-Tier Company LLC - Large Local Company

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One approach to help SMEs scale up towards becoming mid-tier companies is by leveraging key
SME programmes like PRESTIGE by SME Corp. These programmes provide support and resources
to assist SMEs in expanding their operations and reaching higher levels of labour productivity.
The SME Roadmap is currently under development by the Ministry of Entrepreneur and
Cooperatives Development (KUSKOP). This roadmap will outline the strategic direction and
initiatives to further support and empower SMEs in their growth and participation in higher
value-added activities.
The execution of this action plan will be led by KUSKOP and SME Corp in consultation with MITI,
MIDA, MPC, industry players in the prioritised sectors and industry experts. Key actions to be
taken include:
• Engage industry players in the prioritised sectors to identify strong manufacturing sector
SMEs in Malaysia;
• Identify gaps in the value chain of LLCs and MNCs with no or few local SMEs participation;
• Identify and engage potential SMEs that have the potential to be groomed to meet the
standards required by LLCs and MNCs; and
• Provide support required to scale up interested SMEs.
ACTION PLAN Integrate value chains between: M&E and Medical Device,
1.2.2 Semiconductor and EV, and Chemical and Pharmaceutical
Integrating value chains between sectors, involves linking the various stages and processes involved
in the manufacturing of products in both the sectors. By integrating the value chains between
these sectors, Malaysia will have a better-connected economic ecosystem. This integration leads
to increased efficiency in resource utilisation, reduced costs, improved innovation and enhanced
product complexity.
To achieve this, it is essential to nurture local companies and further develop core competencies
that are applicable across different sectors. This approach recognises that certain sectors may
have specific capabilities, knowledge or resources that can be leveraged to stimulate cross
sectoral innovation and unlock new opportunities.
These are some examples of how different sectors complement each other to produce more
complex products:
• M&E (e.g. electronic manufacturing services (EMS) and engineering supporting services
(ESS)) and medical devices sectors: Advanced inspection solution in manufacturing adopted
in medical devices (imaging, endoscopy);
• E&E and automotive sectors – EV components; and
• Chemical and pharmaceutical sectors – improved active pharmaceutical ingredient (API) for
better quality generic drugs.

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Figure 4.6: Integration between Value Chains
• Advanced inspection
Machinery & solution
Medical
equipment Devices
• Implantable devices
• Minimally invasive surgical
tool
Electrical & • EV chip

Automotive
Electronics • Super chargers
• Smart sensors
• Active pharmaceutical
Chemical ingredient (API) Pharmaceutical
• Biologics – insulin, vaccines
• Solvents, preservatives,
excipients in generic drugs
This action plan will be led by MITI in collaboration with MIDA, MPC and industry players in the
prioritised sectors. Key actions to be taken include:
• Identify core competencies that have potential for high value-added activities;
• Identify synergies between sectors across the value chain based on complementary strengths;
• Prioritise opportunities for collaborations across sectors and discuss potential business case;
and
• Connect with foreign investors or MNCs, if needed, for greater investment and market access.
Establish cooperative ‘vertical integration’ for global

STRATEGY 1.3 value chain
ASEAN countries, including Malaysia, can bolster their participation in the global value chain
by prioritising collaboration as a cohesive trading bloc. A key aspect of this strategy is pursuing
vertical integration, where different stages of the value chain for selected industries are
integrated across ASEAN countries. This approach enables efficient resource utilisation, promotes
specialisation and enhances the region’s overall competitiveness. By working together, Malaysia
and its neighbouring nations have the opportunity to achieve collective success through mutual
trade cooperation.
By leveraging each other’s strengths and collaborating on value chain integration, ASEAN
countries can create a win-win situation, fostering economic growth and strengthening their
collective position in the global marketplace.

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ACTION PLAN Leverage alliance with ASEAN countries to integrate the

1.3.1 semiconductor, advanced materials and clean energy
value chain
Malaysia aims to take proactive steps to establish an alliance with ASEAN countries to increase
its participation in higher value-added activities within the GVC. By collaborating closely with
ASEAN partners, Malaysia seeks to leverage the collective strengths and resources of the region
to complement each other’s strengths and promote regional cooperation that will collectively
capture more value in the GVC.
Figure 4.7: Malaysia as Gateway to ASEAN
Collaborate with ASEAN countries
Leveraging strengths
Vertical integration Complement
for greater export to
within region not compete
outside ASEAN
Malaysia needs to first upgrade its capabilities and strengths to participate in segments within
the GVC of the prioritised sectors. For example:
• Semiconductor: IC design and wafer fabrication;

• Advanced material: production of advanced materials e.g. graphene, rare earth; and
• Clean energy: production of EV batteries and renewable energy.
MITI will lead this action plan, supported by MIDA, MATRADE and key industry players. Some of
the actions to be taken are:
• Identify areas where Malaysia is strong in and have potential global demand;
• Engage large global players in prioritised sectors to understand opportunities within the GVC
and interest to invest;
• Identify and upscale Malaysian local companies with the required capabilities and capacity to
participate in GVC; and
• Strengthen economic cooperation with countries regionally and globally for opportunities in
GVC.

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ACTION PLAN Develop vertical integration programmes through

1.3.2 IndustryConnect conferences
Malaysia will create greater integration with the GVC, supporting SMEs to connect with the supply
chains of MNCs and LLCs. Malaysia will facilitate IndustryConnect conferences which provide
opportunities for industry players, investors and financiers to interact, share experiences and
explore potential partnerships. This conference will involve key industry players from MNCs, LLCs,
Mid-tier companies (MTCs), SMEs and other companies within the vendor ecosystem along with
financial institutions. This opportunity will provide an avenue where investment deals could be
initiated and pursued whereby:
• Industry players can support potential suppliers to meet requirement, such as standards,
digitalisation and ESG;
• SMEs can showcase their innovation, products or capabilities to support in the MNC or LLC
value chain; and
• Investors and financiers can identify promising funding or investment opportunities.
Figure 4.8: IndustryConnect Conference
This action plan will be led by MITI and supported by MIDA, Federation of Malaysian Manufacturers
(FMM), SME Corp, BNM, SC and key industry players. Some of the actions to be taken are:
• Engage MNCs and LLCs to be anchor companies in IndustryConnect conferences; and

• Organise IndustryConnect conference, inviting anchor companies, potential vendor ecosystem
and financiers.

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Foster Research, Development, Commercialisation

STRATEGY 1.4 and Innovation (RDCI) ecosystem
RDCI plays a crucial role in increasing economic complexity and high-skilled talent development.
This seamless connection between research, commercialisation and innovation processes
promotes the introduction of new products and services that drive job creation and economic
expansion.
However, Malaysia faces challenges in achieving high value-added manufacturing due to its
relatively low innovation performance.
The RDCI ecosystem is a network of organisations and individuals that work together to promote
research, development, commercialisation and innovation. The ecosystem includes universities,
research institutes, businesses, Government Agencies and financial institutions.
ACTION PLAN Assign specific topics and Key Performance Indicators

1.4.1 (KPIs) to universities for industrial-linked R&D
Malaysia will gradually shift towards a topic-centric R&D model where efforts are organised
and prioritised based on specific topics or areas of focus. Specific topics are identified based on
alignment to the NIMP 2030 Goals, strategic importance and industry-specific needs for Malaysia’s
advancement.
The R&D topics will focus on both horizontal and vertical capabilities within specific areas. They
encompass various fields, such as emerging technologies. Some examples include:
• Horizontal capabilities – critical in driving innovation across multiple sectors e.g. AI,
Blockchain and Cybersecurity; and
• Vertical capabilities – targeted focus area in specific sectors e.g. E&E (IC design), aerospace
(drone technology, avionics system), and specialty chemicals (electronic chemicals, eco-
friendly fertiliser).
Figure 4.9: Top-centric R&D for Industrial Application

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To achieve this, Malaysia aims to enhance topic-specific R&D ecosystems by facilitating

collaboration among research institutions, industry players and funding bodies (e.g. Malaysia
Science Endowment) to achieve greater efficiency and impactful R&D. There needs to be a balance
between publication, application and commercialisation of R&Ds. These efforts will be aligned to
the direction and guidance of the Research, Development, Innovation, Commercialisation and
Economy (RDICE) roadmap by MOSTI.
Malaysia aims to strengthen existing centres of excellence (CoE) in targeted sectors to develop
expertise in high value-added areas. These CoEs will serve as shared facilities to cultivate complex
innovation, foster collaboration and accelerate knowledge dissemination.
This action plan will be led by Ministry of Higher Education (MOHE) and MOSTI, supported by
the National Science Council, Research Management Unit under the Ministry of Economy (KE),
Malaysian Research Accelerator for Technology and Innovation (MRANTI), MIMOS, CREST, MITI,
SIRIM and other national research institutions (NRI). The key steps to be taken include:
• Identify relevant topics for R&D through organising sessions and forums;
• Identify potential industry players to collaborate based on R&D topics (e.g. launch academia-
industry partnership programmes);
• Identify existing CoEs to be scaled up in high value-added areas of prioritised sectors;
• Scale up support to topic-specific ecosystem through NRI collaboration; and
• Introduce targeted and time-bound incentives on R&D investments.
ACTION PLAN Digitalise IP application and launch enhanced National

1.4.2 IP Policy
Intellectual property (IP) rights are essential for manufacturing industries in Malaysia as it can
help to protect their inventions and designs from unauthorised use. A new national IP policy to
enhance the principles and guidelines that govern how IP is created, used and protected is being
developed by the Ministry of Domestic Trade and Costs of Living (KPDN) and the Intellectual
Property Corporation of Malaysia (MyIPO). Currently, the IP application process, particularly for
patents, is time-consuming. To address this, Malaysia aims to digitalise the IP application process,
making it more efficient, accessible and user-friendly.
Malaysia is focused on enhancing IP protection by ensuring fair assessments of patents and

providing comprehensive coverage for patent owners during disputes. To strengthen the overall
IP regime, Malaysia has identified three key areas for improvement:
• Strengthen IP Regime – strengthened Malaysia’s IP protection to ensure fair examination

of patent applications;
• IP Application process – improved patent assessment capability through partnerships
with industry and academia; and
• IP Commercialisation support – improved IP application process (application, arbitration
and dispute centre) and commercialisation support for R&D outcomes to attract investors.

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Figure 4.10: Areas to Strengthen in IP Regime
This action plan will be led by KPDN and MyIPO supported by MITI, SIRIM and Standards Malaysia.
The key related activities are to:
• Identify levers to improve current IP protection regime:

• Arbitration and dispute measures;
• Enforcement mechanism;
• Leveraging other countries’ IP systems and IP application process; and
• Review relevant agencies current capabilities for better IP support.
• Implement key measures to accelerate IP application process:
• Digitalise key patent application functions to accelerate application process; and
• Increase number of certified IP underwriters to draft patents to reduce lead time and
ensure quality IP.
• Consider provision of IP bundle to make it attractive for R&D in Malaysia; and
• Launch enhanced National IP Policy.

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STRATEGY 1.5 Increase manufacturing exports
Increasing manufacturing exports is one of the most critical objectives for Malaysia seeking to boost
its economic growth and international competitiveness. By expanding manufacturing exports,
Malaysia can capitalise on its industrial capabilities and leverage global market opportunities.
There are several steps that Malaysia can do to increase their manufacturing exports. These ranges
from improving the quality of products produced to expanding into new markets or improving
the overall trade ecosystem.
To achieve this, four Action Plans have been formulated:
ACTION PLAN Implement national trade advocacy campaign to

1.5.1 increase industry utilisation of FTAs
The utilisation of FTAs in Malaysia is of significant importance as it enables wide market access
to participating countries and supports diversification of exports by fully leveraging on the
preferential tariffs offered. However, the utilisation of the FTAs especially amongst SMEs is low,
and this is largely due to the limited awareness and knowledge to navigate through the complex
processes. A national trade advocacy campaign needs to be enhanced to deepen understanding
of FTA benefits. It will act as a guide for companies to fulfil requirements of the FTAs among
others:
• Rules of Origin (ROO);

• Certificate of Origin (COO); and
• Technical barrier to trade.
Malaysia will support in aggregating the competencies of local companies, bringing them together
via export consortia to increase their bidding competitiveness for international contracts. The
local companies will need to upgrade their capabilities to meet the standards and requirements
by the international market.
The trade advocacy campaign aims to support SMEs and Bumiputera companies to meet the
FTA eligibility criteria and therefore increase exports.
Figure 4.11: National Trade Advocacy Campaign

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This action plan will be led by MITI and supported by MATRADE, Malaysia Design Council (MRM),
TERAJU, SMECorp and industry players. Key actions are to:
• Conduct promotional activities through online and offline model:

• Online: interactive webpage, sector specific webinar, online FTA consulting services; and
• Offline: live seminars targeted at SMEs, site visits by experts to assist with ROO
determination and documentation.
• Address issues based on feedback from companies regarding FTA requirements; and
• Provide access to experts to address ROO, FTA eligibility and other related issues.
ACTION PLAN
Rejuvenate “Made in Malaysia” branding
1.5.2
The Made in Malaysia tagline can be a powerful marketing tool to portray Malaysian-made
products. A good branding image to Malaysia can result in:
• Built brand trust – a tagline that highlights quality and innovation from Malaysia-made
products can help build brand trust and loyalty;
• Differentiating factor – sets the standard to differentiate Malaysian-made products from
those made in other countries; and
• Raised awareness – good publicity to attract new national and international partners
towards Malaysian-made products.
To further enhance Malaysia’s international presence and marketability, it is imperative to develop

a national branding theme that fosters a more consistent approach in promoting Malaysian-
made products globally. It is essential to tailor a unique value proposition for each export sector,
emphasising the distinct strengths and advantages of Malaysian products within their respective
industries.
Figure 4.12: “Made in Malaysia” Brand
This action plan will be led by MATRADE and supported by MITI, MRM and selected industry
champions. Key activities are to:
• Provide national branding guidelines for public and private sectors, including SMEs;
• Work with strategic partners and key influencers in target markets to promote Malaysian
brands; and
• Facilitate access to funding to cover support for international branding efforts, digital
marketing and certification.

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ACTION PLAN Address trade restrictive non-tariff measures (NTMs) and

1.5.3 compliance of standards
The imposition of many Non-tariff Measures (NTMs) by multiple Ministries in Malaysia has resulted
in increased costs and complex procedures for local companies seeking to export their products.
A number of these NTMs could have overlapping requirements and companies need to spend
time and effort to comply with each individual NTMs that are relevant to them. Some of the key
requirements to export include:
• “Technical barriers to trade” (TBT) and “Sanitary and phytosanitary” (SPS) measures (convention
or standards);
• Complying with technical specifications and quality requirement, related processes and
production methods; and
• Labelling and packaging for environmental protection, consumer safety and national security.
To address this issue, it is crucial to have a consolidated review on legislation and standard
requirements associated with NTMs, and streamline the process to make it more efficient and
business-friendly. Consolidating NTMs based on their similarities will simplify procedures and help
local companies avoid unnecessary efforts and costs. Apart from that, expanding the product
coverage of Mutual Recognition Agreements (MRA) with trading countries would effectively
reduce duplicated compliance processes for both importing and exporting countries.
Figure 4.13: Pathway to Ease NTMs Process
This action plan will be led by MPC and supported by MITI, SIRIM, MATRADE and relevant Ministries
with NTMs. Key actions to be taken:
• Categorise NTMs based on TBT or SPS classifications;

• Engage relevant Ministries to discuss consolidation of NTMs issued;
• Engage industry players to understand challenges faced to comply with NTMs; and
• Provide guidance and support to local companies through future-developed consolidation
platforms to stay updated with the latest requirements.

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ACTION PLAN
Update FTA based on geopolitical conditions
1.5.4
Free Trade Agreements (FTAs) hold significant importance in Malaysia’s trade and economic
strategies. These agreements aim to reduce tariffs and non-tariff barriers, between Malaysia and
its trading partners to facilitate the flow of goods, services and investments.
However, new modern FTAs have now gone beyond the traditional parameters, evolving to
encompass major trends such as ESG considerations, reflecting a broader focus on sustainable
and responsible trade practices.
Malaysia recognises that the current FTAs approach has not been able to adequately address the
evolving geopolitical dynamics and key developments in the global trade landscape. To adapt to
these shifts, Malaysia aims to reassess its trade position and capitalise on key areas that should be
included in modern FTAs. The five key focus areas encompass supply chain, security, digital trade,
ESG considerations, as well as standards.
To navigate new trade deals effectively, Malaysia aims to engage in discussions with its FTA
partners to refresh and update the agreements accordingly. This approach allows Malaysia to
adapt to evolving trade dynamics and ensure that its trade agreements remain relevant and
mutually beneficial for all parties involved.
Figure 4.14: Key Focus of Modern FTAs
This action plan will be led by MITI and supported by MIDA and MATRADE. Key activities include:
• Engage key industry champions to understand potential challenges faced to better define
FTAs;
• Strengthen investment, trade and industrial position for the FTAs; and
• Identify the potential FTAs that would require an update on the strategic position.

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Mission-based Project 1.1 and 1.2 Mission-based Project 1.1
IC design and wafer fabrication Create global IC design champions

in EV, RE and AI
The Government aims to further strengthen
Malaysia as a leading E&E hub, focusing on This MBP aims to establish Malaysia as a hub for
developing a robust ecosystem that nurtures advanced IC design technologies and solutions
and supports local IC design and wafer by developing five globally competitive local
fabrication companies, strengthen embedded IC design companies. This MBP will focus
systems and build capabilities in advanced on IC design for EV, RE and AI segments,
packaging. This will enable them to compete leveraging the strong growth potential on
globally and contribute significantly to these technologies and its dependencies on
Malaysia’s economic growth. semiconductors.
Rationale Actions
The rationale behind these MBPs arise from First step towards this would be engaging IC
several factors: Design companies with strong export potential
to explore possible collaborations, partnerships,
• The E&E sector plays a vital role in Malaysia’s investments, or support required for them
economy, with over RM595 billion in exports to scale up their operations. Incentives must
– contributing approximately 40 per cent to be considered to encourage the scaling up of
the nation’s overall exports and 45 per cent local IC design companies and enable them to
to Malaysia manufacturing sector’s exports; compete on a global scale.
• The semiconductor industry is referred as
the “new oil of the future” by many, with an
Enablers
AT Kearney study projecting the industry
to reach USD1.2 trillion by 2030. The study
The following are key Enablers to be
predicts that the Asia Pacific region will
implemented for this MBP:
account for the largest share of the market
in 2030 at 52 per cent;
• Collaboration with industry stakeholders,
• Introduction of the Creating Helpful
(e.g. automotive companies, RE firms
Incentives to Produce Semiconductors
and AI-driven technology developers)
Act in America (CHIPS Act), provides
to understand their specific IC design
Malaysia with an opportunity to become
requirements. Cross-industry collaborations
a neutral country of choice to expand on
can foster expertise and knowledge sharing
semiconductor manufacturing activities,
from various sectors, enhancing IC design
capitalising on the US+1, China+1 and
capabilities and product offerings;
Taiwan+1 trends; and
• Deepen capabilities in research, technology
• IC design and wafer fabrication represents
and industry collaboration; and
the high value-added activities in the
• Talent development support such as
semiconductor value chain.
training of IC design engineers and on-the-
job training.
Specifically, the following MBPs are focused to:
1.1. Create global IC design champions in EV, Funding

RE and AI; and
1.2. Attract new advanced wafer fabrication in Funding for this MBP will be driven by
Malaysia. private sector investments and Government
funding through the NIMP 2030 Strategic Co-
Investment Fund.

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Mission-based Project 1.2
Attract new advanced wafer fabrication in Malaysia
The wafer fabrication capability needs to be developed in parallel to complement the development
of the IC Design ecosystem in Malaysia. As such, the Government is looking to set up local
production of mid-tier (28-40nm) wafer fabrication by attracting globally competitive wafer
fabrication companies and expand capabilities of local companies.
Actions
In this MBP, Malaysia aims to attract FDI from global wafer fabrication leaders. This requires
developing a targeted offensive investment strategy that includes an attractive incentives
package. For example, through the CHIPS Act, the US Government provides 25 per cent investment
tax credit for capital expenses incurred by both domestic and foreign companies that invest in
semiconductor manufacturing in the US.
To further support the realisation of this, the Government looks to assess and collaborate with
existing local companies in Malaysia’s semiconductor industry. By identifying companies with
existing capabilities, the Government can work with them to expand their operations and establish
mid-tier wafer fabrication facilities locally.
Companies in other parts of the value chain have the opportunity to explore and venture into
wafer fabrication, thus advancing into higher value-added activities.

Enablers
The following are key Enablers to be implemented for this MBP:
• Strategic level engagement with global advance wafer fabrication companies to promote
Malaysia as preferred investment destination;
• Competitive incentives to attract investments from global wafer fabrication companies to
Malaysia; and
• E&E ecosystem supported by local SMEs in the value chain for the global wafer fabrication
companies.
Funding
Funding for this MBP will be driven by private sector investments and Government funding
through the NIMP 2030 Strategic Co-Investment Fund.

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Box Article 4.3:

Why are IC design and fabrication critical to
Malaysia’s economy?
Main uses...
What are IC Design and Fabrication?
PCs, laptops
Integrated circuit (IC) design and fabrication
involve the creation of electronic circuits on a Wearables, smartphones, tablets
wafer made of pure semiconductor material
IC design is a process of creating a blueprint Autonomous vehicles, drones
or layout for an integrated circuit. It involves
designing the functionality and placement of Medical devices
various components on the semiconductor
material Robotics, industrial productions
IC fabrication, or wafer fabrication, is the
Data centres, IoTs
process of building the integrated circuit on a
semiconductor wafer
Communication system
DID YOU KNOW?

IC design is a critical front-end manufacturing related services activity
that needs to be groomed to link to the global semiconductor value chain
Within semiconductor value chain, IC design has the highest value-added

component
Malaysia is a major global manufacturing hub for the E&E industry which
produces semiconductors. This industry has been known as the largest
contributor to export of Malaysia, 36.4 per cent (RM405.83 billion) of total
export in 2021 (source MATRADE)
Hence, IC design and fabrication are critical to Malaysia’s economy as this

will pave the way for Malaysia to become a high value-added
semiconductor producing country
Initiatives for Growth in IC Design and Fabrication…

National Policy on Science, E&E Roadmap 2021-2030 Semiconductor Design
Technology, and Innovation outlines strategic direction Cluster to attract
(NPSTI) to promote and priorities for the semiconductor design
research, development, and semiconductor industry in companies to establish their
commercialisation of high- Malaysia, including IC design presence in Malaysia
value technologies, including and fabrication
microelectronics and
semiconductor industries
Source: MIDA, The Malaysian Reserve, Malay Mail, NAP 2020

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Deepen to specialty chemicals vertical
The Government is committed to deepening To support the growth and expansion of the
the specialty chemicals vertically, with a vision specialty chemical industry, the Government
to achieve multiple strategic objectives. These aims to provide bilateral support required by
objectives include spearheading technology the local chemical leader. A comprehensive
and innovation development and transitioning support will be extended to other local players
from being a specialty chemicals importer to to strengthen their capabilities and capacity,
becoming a net exporter. attract investments and cultivate talent within
the sector.
Rationale
Enablers
The rationale behind this MBP arises from
several factors: The following are key Enablers to be
implemented for this MBP:
• Malaysia currently produces and exports
feedstock and commodities but relies on • Government-to-Government (G2G) support
imports for specialty chemicals. There is to facilitate requirements within the
an opportunity for Malaysia to bridge the specialty chemicals industry;
gap by producing specialty chemicals • Attracting and developing talent, including
domestically, capturing both domestic building a talent pipeline for chemists and
market demand and export opportunities. polymer scientists, supporting training
The specialty chemicals market is programmes for chemical engineers and
substantial, with a market size exceeding promoting industry-led research and
USD40 billion; development;
• The specialty chemicals industry acts • Strengthening IP protection to safeguard
as a catalyst for innovation, driving the innovations and encourage further R&D
development of higher value-added within the specialty chemicals sector;
specialty chemicals products which • Special government incentives to
translates into the creation of more high- incentivise investments and foster growth
skilled job opportunities; within the specialty chemicals industry.
• It offers significant opportunities for Specific details of these incentives to be
R&D, leading to product innovation, determined;
competencies expansion and in turn drives • Cluster-based linkages within the
economic complexity; and existing chemical industry cluster will be
• It drives the establishment of forward and strengthened, leveraging geographical
backward linkages. Backward linkages proximity to raw materials and facilitating
involve developing industries that support collaboration among stakeholders; and
specialty chemicals production, while • Capabilities and capacity of players along
forward linkages encompass industries the value chain of the chemical industry,
that benefit from the innovation multiplier supporting the specialty chemicals sector,
effect generated by the specialty chemicals will be enhanced to ensure a robust and
sector. sustainable ecosystem.
Actions Funding
A local chemical leader will lead the investments This MBP will be private led, potentially financed
in key specialty chemicals areas, including from the financing ecosystem catalysed under
agrochemicals, care chemicals, nutrition the NIMP 2030.
chemicals and construction chemicals. Efforts
will be made to identify other local players in
the specialty chemicals sector with growth
potential.

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Groom champions in 4 game changing advanced materials
Malaysia is poised to become a frontrunner • Enhance access to funding: Measures will be

in game changing advanced materials implemented to facilitate improved access
by catalysing downstream activities, to funding for research, development and
strengthening industrial clusters and commercialisation of advanced materials
harnessing its rich natural resources. With a projects. Public-private partnerships
focus on four key materials – graphene, nitinol, and investment attraction efforts will be
rare earth and MCC polymers. Malaysia aims encouraged.
to meet global demand and drive exports • Incentivise research and development:
to manufacturers worldwide. This strategic Special incentives will be introduced
endeavour aligns with the National Advanced to promote research and development
Materials Technology Roadmap (2021-2030) activities in advanced materials. These
and holds immense potential for key sectors incentives will promote increased industry
such as electric vehicles and aerospace. participation and attract local and foreign
researchers to contribute to the sector’s
Rationale growth.
• Safeguard IP rights: Robust measures will
The rationale behind this MBP arises from be put in place to strengthen the protection
several factors: of IP rights, ensuring that innovators and
companies in advanced materials are
• Abundance of natural resources: Malaysia’s duly recognised and rewarded for their
wealth of natural resources positions itself contributions.
advantageously to produce advanced
materials of high value, making it a potential Enablers
key player in the global market.
• Growing demand for advanced materials: The following are key Enablers to be
The increasing demand for advanced implemented for this MBP:
materials across various industries presents
significant opportunities for Malaysia to • Talent development: Efforts will be made
meet market needs. to nurture and develop a skilled workforce
• Critical importance to key sectors: The in advanced materials. Specialised training
identified game changing materials play a programmes, scholarship opportunities
vital role in crucial sectors such as electric and collaborations between academia and
vehicles and aerospace. Developing industry will be encouraged.
expertise and capabilities in these materials • Strengthened IP protection: Stringent
will fuel advancements and strengthen measures will be implemented to enhance
Malaysia’s position in these sectors. IP protection, safeguarding the innovations
• National Advanced Materials Technology and creations in the field of advanced
Roadmap: This MBP aligns with the materials.
National Advanced Materials roadmap, • Special Government incentives: Tailored
which provides direction for the growth of Government incentives will be introduced
Malaysia in the field of advanced materials. to provide additional support for the
development and commercialisation of
Actions advanced materials. These incentives will
attract investments, stimulate growth and
To realise this MBP, the following key actions drive competitiveness in the sector.
will be pursued:
Funding
• Strengthen partnerships: Collaboration
among industry players, research This MBP will be private-led, potentially
institutions and Government Agencies will financed from the financing ecosystem
be fostered to promote knowledge sharing, catalysed under the NIMP 2030.
technology transfer and innovation in
advanced materials.

5
MISSION 2 :
TECH UP FOR A DIGITALLY VIBRANT
NATION
New Industrial
76 Master Plan 2030 MISSION 2 : TECH UP FOR A DIGITALLY VIBRANT NATION
In the recent Technology and Innovation Collectively, both the Government and industry
Report 2023, by UNCTAD39, which assessed will spur technology innovation and create
the global readiness for frontier technologies, more local technology solutions. By supporting
Malaysia is ranked 32nd among 166 countries homegrown talent and encouraging disruptive
and fifth in Asia. This is contributed by the ideas, Malaysia can transition from being a
industry’s adoption and adaptation of frontier technology provider to a technology creator.
technologies and access to finance the
technologies. The urgency of the digital transformation
cannot be understated. It is essential to act
The Industry4WRD policy was introduced in swiftly and proactively seize the opportunities
2018 to accelerate Malaysia’s manufacturing that digitalisation offers to remain competitive
sector’s digitalisation journey. The aim was to in the rapidly evolving global landscape.
transform the manufacturing sector and MRS
to adopt Industry 4.0 technologies in order The successful implementation of Strategies
to increase the level of labour productivity, and Action Plans under Mission 2 will result in
elevate contribution of manufacturing to the impactful outcomes as follow:
economy, strengthen innovation capacity and
capability and increase the number of high- • Enable economic complexity:
skilled workers in the manufacturing sector.
The use of technology enhances labour
Despite the efforts undertaken, the productivity and efficiency, enabling businesses
performance of the manufacturing sector to allocate resources to more complex activities.
has not shown significant improvement. The Advanced technology enables R&D activities,
growth rate of Malaysia’s labour productivity which will drive innovation to develop high
has slowed down in the last three decades value-added products;
and this decline was further exacerbated by
the COVID-19 pandemic. This is attributed to • Emergence of high-skilled jobs:
prolonged use of low-skilled labours, relatively
low innovation and low technology adoption in Technology and digital adoption creates the
the manufacturing industry. demand for more high-skilled jobs such as
data scientists, data engineers, data analysts,
It is imperative for companies to adopt artificial intelligence engineers and specialists,
digitalisation and shift away from low-skilled system integrators, cybersecurity engineers
labour. This is to increase labour productivity and other tech-related services professionals;
and create more high-skilled jobs for the and
industry. With the changing global landscape,
it is no longer sufficient to merely go digital;
the future growth of Malaysia hinges on the • Creation of new clusters:
organisations’ ability to embrace a digital
mindset and fully embody digital capabilities Technology acts as a catalyst for disruptive
across all aspects of the manufacturing ideas, enables knowledge exchange and
processes. collaboration, and attracts talented individuals.
This fosters innovation and spurs economic
Similarly, the Government will accelerate activity, contributing to the formation of new
digitalisation and integration to support the clusters. The development of these clusters
industry. By streamlining and digitalising can be supported through strengthening the
processes, it will improve the delivery of public ecosystem infrastructure and capitalising on
services and ease the process of doing business emerging market opportunities.
in Malaysia.

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MISSION 2 : TECH UP FOR A DIGITALLY VIBRANT NATION Master Plan 2030 77
There are four Strategies, eight Action Plans and two Mission-based Projects to be carried out to
achieve Mission 2, as illustrated below:
Figure 5.1: Mission 2 – Tech Up for a Digitally Vibrant Nation
MISSION 2
Tech up for a digitally vibrant nation
2.1 Expand to high value-added activities of 2.3 Spur technology innovation

Accelerate technology adoption 2.3.1 Nurture local technology solution
2.1.1 Enhance Industry4WRD programmes to providers to support Technology Adoption
increase technology adoption Programme
2.1.2 Accelerate digital infrastructure rollout 2.3.2 Develop generative and industrial AI
(JENDELA) solution leaders and system integrators
2.3.3 Drive data analytics through a national
digital platform for manufacturing
2.2 Shift away from low-skilled labour model
2.2.1 Introduce multi-tiered levy mechanism
2.4 Accelerate government digitalisation and
for low-skilled labour to accelerate
integration
automation
2.4.1 Digitalise end-to-end government touch
2.2.2 Introduce automation condition in new
points across business life cycle
Manufacturing Licence
MBP 2.1 MBP 2.2 MBP 1.4
Transform 3,000 smart Establish Malaysia as

factories Generative AI Hub

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STRATEGY 2.1 Accelerate technology adoption
This strategy aims to accelerate technology adoption by extending from front-end to back-end
digitalisation. This will improve efficiency, data accuracy and decision-making by integrating
various functions and providing real-time insights.
The NIMP 2030 will further enhance the Industry4WRD programmes to accelerate the technology
shift towards Industry 4.0. By leveraging Industry 4.0 technologies, Malaysia will continue to
maintain its competitiveness amidst the rapidly changing global landscape.
The Government is committed to ensuring the readiness of digital infrastructure to support

industry development. In the face of rapidly advancing technology, Malaysia must act promptly
to establish a robust and adaptable digital infrastructure.
Figure 5.2: Industrialisation Evolution
Industrialisation Evolution
Majority of
Manufactures in
Malaysia today
INDUSTRY 4.0
INDUSTRY 3.0
INDUSTRY 2.0 Cyber Physical
INDUSTRY 1.0 Automation, Systems, internet
Mass production, computers and of things,
Mechanisation, assembly line, electronics networks
steam power, electrical energy
weaving loom

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Box Article 5.1:

What is Smart Manufacturing?
Smart manufacturing40 involves the seamless integration and connectivity of physical and digital
processes across factories and the supply chain to optimise manufacturing operations and processes.
By transforming and improving the ways in which people, processes and technologies operate, smart
manufacturing facilitates the delivery of critical information for quality decision-making, enhanced
efficiency, cost reduction and increased agility.
The element of smart manufacturing includes:
• Internet of Things (IoT) to connect devices, machines and sensors to collect and exchange data
in real time. This creates a networked ecosystem, where machines and systems communicate
seamlessly.
• Data analytics and big data tools to analyse vast amounts of data collected from various
sources within the manufacturing process. This unlocks insights for decision-making, predictive
maintenance and optimisation of production processes.
• Artificial intelligence and machine learning to automate tasks and continuously improve
manufacturing processes. AI-driven systems are capable to identify patterns, adjust to dynamic
conditions and optimise operations in real-time.
• Robotics and automation enable the efficient and precise execution of repetitive and labour-
intensive tasks. These technologies encompass robotic arms, automated guided vehicles (AGVs)
and autonomous systems, which streamline production processes and minimize the need for
human intervention.
• Cloud computing to store, process and analyse manufacturing data. Cloud infrastructure
provides scalable and cost-effective resources for data storage, computing power and
collaborative applications.
• Cybersecurity to protect digital systems, networks and data from cyber threats. Secure networks
and protocols are essential to safeguard sensitive information and maintain the integrity of
manufacturing processes.
Advanced automation Additive

and robotics Artificial intelligence manufacturing
Predictive analytics for:

• Automate tasks such as
• continuous self-
welding, assembling, • Rapid prototyping
optimisation
inspecting defects and of new products
• product design and
packaging
development
Cloud computing
Large data storage and analytics to:

• track production output
• identify improvements
Source: The Global Smart Industry Readiness Index Initiative: Manufacturing Transformation
Insights Report 2022, World Economic Forum

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ACTION PLAN Enhance Industry4WRD programmes to increase

2.1.1 technology adoption
The Government has introduced programmes to encourage manufacturers to move towards

Industry 4.0 technology adoption. In 2019, the Industry4WRD Readiness Assessment (RA) and
Intervention Fund (IF) Programmes were launched as flagship initiatives under the Industry4WRD
policy. The programmes were aimed to support the adoption of Industry 4.0 technologies by
assessing the company’s readiness, identifying priority areas to transform the company and
providing funding support for the intervention.
Despite having these technology adoption programmes, the industry has not shown significant
transformation, especially among the SMEs. The take-up rate was dampened due to limited
awareness to tech up and digitalise, high cost of investment and shortage of skilled talent for
technology intervention projects.
The Government will enhance the Industry4WRD by:
• Equipping the industry with the fundamentals to embrace digitalisation and shift towards
Industry 4.0;
• Enhancing the scope of the RA and IF programmes to include a follow-through in the
technology implementation and post-implementation review. This will ensure the long-term
sustainability of technology intervention; and
• Collaborating with capital market and financial institutions to fund the technology intervention
projects.
The newly improved Industry4WRD programme is expected to create 3,000 smart factories by
2030.
Figure 5.3: Malaysian Manufacturers to Tech Up
Malaysian Manufacturers to Tech Up
Industry4WRD
Launched Technology 3,000 smart
Adoption factories by 2030
Oct-18 by MITI Programme
Enhanced Readiness
Assessment – scale for
nationwide take-up
To execute this action plan, MITI will lead with the support of MIDA, MPC, SIRIM, MOSTI, Ministry
of Communications and Digital (KKD), Malaysia Digital Economy Malaysia (MDEC) and industry
associations (e.g. FMM) to conduct the following activities:
• Review Industry4WRD programmes, specifically on the readiness assessment and intervention

fund;
• Introduce the enhanced end-to-end programme to enable the creation of 3,000 smart
factories; and
• Conduct proactive awareness including seminars, outreach programmes and portals to
increase participation in the enhanced programme.

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ACTION PLAN
Accelerate digital infrastructure rollout (JENDELA)
2.1.2
Digital infrastructure is critical in today’s digital age as it enables smooth operation and
connectivity of digital systems. Strong digital infrastructure further lowers the costs associated
with innovation for enterprises of all sizes, with the most noteworthy benefits going to SMEs,
thereby bolstering overall competitiveness.
Since the launch of JENDELA in August 2020, there has been significant improvement in Malaysia’s
national connectivity41:
• Nationwide access to an average mobile broadband speed of 116.03 mbps higher than the
goal set by end of 2022, which is 35 mbps;
• Rise in 4G population coverage of 96.92% compared to 91.8% during the early commencement
of JENDELA Phase 1;
• Access to fibre connectivity across a total of 7.74 million premises; and
• Roll out of 5G plans as the next wave.
In parallel to JENDELA for the national digital network development, the development of
other digital infrastructure is equally important to cohesively support the industry in advanced
technology adoption. Examples include cloud computing infrastructure, cybersecurity
infrastructure and AI networks. These are critical as they enable the following:
• Rapid data transfer that enables businesses to quickly exchange data, access resources and
make faster decisions based on real-time information;
• Access to cloud-based application, databases and shared resources with minimal latency;
• Seamless connectivity for industrial automation and Internet of Things (IoT); and
• Protect critical infrastructure from cyberattacks.
Continuous effort must be undertaken to ensure Malaysia’s digital infrastructure is continuously

upgraded to meet the industry’s needs. KKD, MITI and industry players will work together to:
• Facilitate the industry’s digital infrastructure needs;

• Foster collaboration and knowledge sharing among industry players to adopt the industry’s
best practices for digital infrastructure development; and
• Establish clear monitoring and evaluation mechanisms to track progress and ensure the
timely completion of the upgrade activities.

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STRATEGY 2.2 Shift away from low-skilled labour model
This strategy aims to incentivise the industry to adopt automation and advanced technology.
By embracing automation and technology, it will encourage the industry to shift away from
low-skilled labour, thus creating the demand for high-skilled workers. This will increase labour
productivity to contribute to economic growth.
ACTION PLAN Introduce multi-tiered levy mechanism for low-skilled

2.2.1 labour to accelerate automation
In an effort to create job opportunities for local employees in the workforce, the 80:20 workforce
policy was introduced in 2016. However, businesses are facing difficulties to meet the ratio, which
resulted in the extension of the policy up to 31 December 2024.
Moving forward, the Government will consider a multi-tiered levy mechanism to gradually phase
out the reliance on foreign low-skilled workforce and accelerate the adoption of automation.
The multi-tiered levy mechanism will include the following features:
• Higher levy charges will be imposed on companies that employ more foreign low-skilled
labour;
• Tailored levy rates based on sector. Sectors with high foreign low-skilled labours will be
imposed with higher levy; and
• Gradual implementation to allow industry players to adjust and adapt to the new policy.
Figure 5.4: Multi-tiered Levy Mechanism

The execution of this action plan will be led by
MOHR, supported by MITI, MIDA, Ministry of
Finance (MOF) and key industry players. The
following activities will be conducted:
• Define baseline to determine the levy

rates and structure, with considerations of
sectors that are heavily reliant on foreign
workers and face labour shortages, skill
requirements, wage levels, unemployment
rates and future job demand projections to
ensure the industry can adapt to the multi-
tiered levy mechanism;
• Develop the transition plan with a gradual
timeline for the industry to adopt the multi-
tiered levy. This is to allow adjustments
to the new policy while minimising
disruptions; and
• Establish a monitoring mechanism to
track the effectiveness and impact of the
levy mechanism. This is to ensure the levy
mechanism is continuously reviewed and
refined based on market conditions.

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ACTION PLAN Introduce automation condition in new Manufacturing

2.2.2 Licence
In effort to accelerate industry automation, the Government will explore a more impactful
approach by introducing automation condition in the issuance of new Manufacturing Licence
(ML).
However, the journey to automation involves major transformation for many companies. Therefore,
a phased approach will be in place to allow companies to transition, based on their maturity and
capabilities:
• SME companies – a phased approach with a grace period to allow SMEs to adopt relevant
automation and technology solutions. This is to ensure foundational automation, technology
and capabilities are in place before gradually upgrading into more advanced technologies.
• MNCs and LLCs – immediate effect for the MNCs and LLCs as they are equipped with the
resources and capabilities to adopt digitalisation. This is to push established companies to
adopt Industry 4.0 technologies and beyond.
This action plan will be led by MITI and supported by MIDA. The following activities will be
conducted:
• Identify suitable phased approaches to implement automation condition in ML;

• Update policy for inclusion of automation condition in ML and create awareness to industry
players of the requirements; and
• Develop mechanisms to monitor compliance with automation condition. Governance will be
in place to ensure companies regularly perform audit checks and report automation progress,
technology adoption achievements and investments in technology.
STRATEGY 2.3 Spur technology innovation
The strategy aims to foster technology innovation and develop indigenous solutions in Malaysia.
This includes stimulating the market for local technology solutions by creating the demand
for local providers and encouraging industry-wide adoption. By supporting local talent and
innovation, Malaysia aims to shift from being a technology provider to becoming a technology
creator.
Additionally, this strategy aims to unlock further opportunities for Malaysia through data analytics
and artificial intelligence (AI). By harnessing the power of data and AI technologies, businesses can
gain valuable insights, make informed decisions and expand into new markets. This enables the
industry to venture into untapped potential and explore growth possibilities both domestically
and internationally.
To achieve this, three Action Plans have been formulated:

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ACTION PLAN Nurture local technology solution providers to support

2.3.1 Technology Adoption Programme
At present, the digital and technology solution is largely provided by foreign technology companies,
which is a challenge for SMEs to adopt due to high costs and proprietary limitation. As SMEs make
up for the majority of Malaysia’s business landscape, their participation in adopting digitalisation
is vital in driving economic growth and competitiveness.
To cater to the needs of businesses in Malaysia, it is essential to foster and promote local indigenous
digital solutions to achieve the following:
• Provide affordable and tailored solutions to the local needs

• Provide inclusive technology and digital solutions
• Foster a vibrant and dynamic technology industry
• Enhance competitiveness of local technology users and technology creators
• Cultivate innovation culture in Malaysia
To realise this, the industry needs to transition from being technology providers to technology
creators. This will be accomplished through the promotion of technology solution providers on
the enhanced Industry4WRD:
• Support local technology start-ups to supply large scale technologies and innovations for the
industry;
• Connect SMEs, MNCs and LLCs with local solution providers to address their technology and
innovation needs; and
• Strategic partnership with higher learning institutions to support local solution providers in
R&D.
Figure 5.5: Technology Adoption Programme

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MDEC will be the main driver, supported by KKD, MITI, MIDA, MOSTI, SIRIM, MRANTI, Malaysian
Technology Development Corporation (MTDC) and solution providers. The following activities will
be conducted:
• Identify and qualify local technology solution companies (e.g. industry start-ups and SMEs)
and onboard them as part of the technology solution developer programme;
• Develop new and enhanced programmes together with technology centres (e.g. SIRIM and
MTDC), academia (e.g. MOHE) and private companies (e.g. MNCs) to support local technology
companies in developing innovative solutions and accelerate technology adoption;
• Facilitate in providing financial assistance to support the solution providers in scaling up their
products and services; and
• Package local solution providers with the enhanced Industry4WRD programme to encourage
the usage of local technology solutions.
ACTION PLAN Develop generative and industrial AI solution leaders

2.3.2 and system integrators
The emergence of generative AI revolutionises the manufacturing industry by enabling new

levels of automation, customisation and optimisation. Although generative AI is still a nascent
industry, it is rapidly evolving and has shown promising results.
Figure 5.6: Generative AI Use Cases
Generative AI Use Cases (Selected Examples)
TSMC
• Design new chip designs
• Existing chip – design improve performance
and power efficiency
• Detect defects in chip designs
Toyota Research Institution

• Increase speed of vehicle design
• Incorporates precise engineering constraints
into the design process
Siemens Gamesa Renewable Energy

• Generate 3D models of wind turbines
• Optimise wind farm layouts – increase
production, reduce loads and operating costs
The use of AI can unlock vast opportunities for the industry. Malaysia has the potential to adopt AI
and be an AI solution leader. Based on the Oxford Insights Government AI Readiness Index 202242,
Malaysia is ranked 29th out of 181 countries. Amongst the ASEAN countries, Malaysia ranked the
second highest, while amongst the APAC countries, Malaysia is ranked the sixth highest.

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Table 5.1: Ten Highest Ranking Countries in APAC Region
No. Rank Country Score

1 2 Singapore 84.12
2 6 Republic of Korea 76.76
3 8 Australia 75.29
4 9 Japan 75.25
5 17 China 70.84
6 29 Malaysia 67.37
7 31 Thailand 64.63
8 32 India 63.67
9 43 Indonesia 60.89
10 54 Philippines 55.42
Table 5.2: Government AI Readiness Index, Ranking by ASEAN Region
No. Rank Country Score

1 2 Singapore 84.12
2 29 Malaysia 67.37
3 31 Thailand 64.63
4 43 Indonesia 60.89
5 54 Philippines 55.42
6 55 Viet Nam 53.96
7 67 Brunei Darussalam 48.06
8 126 Myanmar 32.45
9 132 Cambodia 31.17
Source: Oxford Insights Government AI Readiness Index 2022
According to the assessment, Malaysia’s ranking is attributed to strong foundation in digital

capacity and infrastructure to support AI. While this is the case, the Government must provide
support in growing the AI market in Malaysia by ensuring the following are in place:
• Sufficient quality AI solution providers – spur the growth of AI solution providers,

especially local providers to scale and grow the AI market in Malaysia;
• Strong demand for AI adoption – create the demand for AI to attract solution providers.
The Government to create the demand by applying generative AI in public service delivery;
and
• Availability of quality talent to develop and use AI – build capabilities of the public and
private sectors to develop and adopt AI.

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Figure 5.7: Needs of AI Solution Leaders and SI
To implement this, MDEC will lead with the support of KKD, MOSTI, MITI, MIDA, Ministry of
Human Resources (MOHR), MOHE and industry players. Together, the following activities will be
conducted:
• Engage MOHR, MOHE, MOSTI and universities to develop expertise in generative AI by building
a strong foundation in AI concepts, algorithms, programmes and system integration;
• Attract foreign investments with AI capabilities to build the generative AI market in Malaysia
by developing generative AI R&D centres; and
• Develop programmes to facilitate and foster partnerships with industry players and generative
AI leaders to grow the national AI ecosystem. This is to encourage participation in joint
initiatives and knowledge sharing.

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Box Article 5.2:

What is Generative AI?
What is Generative AI? What can it be used for?
Generative AI is a type of artificial Generative AI is still a relatively new field, but

intelligence that can create new content, it has the potential to revolutionise the way
such as text, images, audio and video. It content is created.
does this by learning from a large dataset
It can be used to create new forms of art, to
of existing content, and then using that
generate new product designs, or even to
knowledge to generate new content that create synthetic data that can be used to train
is similar to the data it was trained on. other AI models.
EXAMPLES OF GENERATIVE AI
ChatGPT Bard DALL-E2

Generates text, translate languages, write Generates images based
different kinds of creative content and answer on text prompts
your questions in an informative way
SPECIAL CASE
Using Generative AI to automate repetitive tasks
One example of Generative AI application is to automate repetitive tasks. This can

be done by asking the AI to code certain programmes, using prompts designed to
elicit the desired code, such as “help me write a programme to automatically
format tables”.
With AI-generated code, anyone can automate repetitive processes without prior
coding experience. This has the potential to increase workplace productivity, by
making it accessible to a wider range of individuals by eliminating certain
knowledge barriers.
Source: OpenAI

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ACTION PLAN Drive data analytics through a national digital platform

2.3.3 for manufacturing
With advanced technology and growing data availability, data has become a valuable asset
that can unlock opportunities. Businesses and individuals can leverage data to gain insights,
make informed decisions and drive innovation. With a national digital platform, it will aggregate
manufacturing industry data, which will encourage data analytics.
A national digital platform for manufacturing can contribute to better national level planning
for supply chain security. The digital platform will be based on an open-source data concept,
allowing businesses to access and contribute data, which will enrich the data bank.
Figure 5.8: National Digital Platform for Analytics
Capacity Requirement
MITI will lead the action plan, with support from KKD, MAMPU, MOSTI, MIDA, technology vendors
and industry players. The following activities will be conducted:
• Develop the architecture for the manufacturing digital platform. Assess leading countries
with national digital platform using open-source data to develop use cases;
• Engage the manufacturing industry players to understand expectations and obtain buy-ins
on data usage and data sharing requirements; and
• Launch the national digital platform and promote its use among the industry players.

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STRATEGY 2.4 Accelerate government digitalisation and integration
This strategy aims to accelerate government digitalisation to ensure processes are integrated,
providing a seamless experience for businesses in Malaysia. By embracing digital transformation,
the Government can modernise its operations, enhance efficiency and improve its public service
delivery. The Government will be able to harness data-driven insights, enhance decision-making
and deliver more personalised services to businesses.
To achieve this, the following Action Plan has been formulated:
ACTION PLAN Digitalise end-to-end government touch points across

2.4.1 business life cycle
The Government aims to develop a single digital channel for a seamless experience across the
end-to-end business lifecycle. The single digital platform aims to provide the following:
• Ease access to relevant information, guidelines and resources to guide through the business
registration process;
• Offer integrated services such as online application capabilities with real-time status updates
on application progress; and
• Speed up the application and approval processes to support businesses in Malaysia.
In order to do this, the Government will include the following:
• Streamline and remove redundant processes within and between the Ministries and Agencies;
• Digitalise the front-end and back-end processes for straight-through processing;
• Integrate all systems into a single interface for ease of access based on end-to-end business
lifecycle;
• Customise the business lifecycle based on the nature and priority of FDIs, LLCs and SMEs; and
• Institutionalise the single company ID system for better visibility of each company’s lifecycle.

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Figure 5.9: Government Touchpoints Across the Business Lifecycle
1 2 3 4
Promotion & Deal Investment Implementation Aftercare
Marketing Negotiation
• Awareness of country & state • Deal and incentive • Business registration • Establish industry premise • Market growth advisory
• Gather industry information package assessment • Obtain licenses • Filing & payment of taxes,
• Incentives & regulatory
• Discuss opportunities for selected industry • Access incentives duties, etc.
update / tracking
• Clarify process involved • Commit funding • Payment of wages
• Recruit personnel • Financial reporting
State
Authorities
Company
Government Applications: • Align industrial Approval for Approval for Health & Project
registration
principal • Manu- placement with site/ infra- utility safety monitoring
investment facturing Structure Plan, Local structure installation approval and
promotion Licence (ML) Plan and build (May provision of
agency • Tax incentives 'Environmental require end-to-end
for the Essentials for Siting of approvals facilitation
development • Grants Industries in Malaysia from other to all
of the • Import duty, (2017)' agencies, projects
manufacturing sales tax • Obtain approval for depending approved by
and exemption, Environmental Impact on nature the National
services MIDA's Assessment Report if of Committee
sectors in confirmation Registration business) on
required by
Malaysia letter for Of tax Investment
Environmental Quality
exemption account (Prescribed Activity) (NCI)
• Expatriate Order 2015
Post • Seek approval prior to
• Monitoring & installation of pollution
Compliance control equipment
subject to
Environmental Quality
Act 1974
Intellectual
Human Financing Importation
Property
Resources (if required)
(if required)
(if required)
NON-EXHAUSTIVE
Sourcing of
employees
Searching and filing
of IPs (e.g. patents,
Financial Institutions trademarks,
copyright, industrial
design &
geographical
indication)
Payment of wages Incentives
The execution of this action requires a whole-of-government approach. The action plan will be
led by MITI, KKD, MAMPU and MIDA, and supported by MATRADE, MPC, MOF, KPKT, Companies
Commission of Malaysia (SSM), Employees Provident Fund (EPF), Social Security Organisation
(SOCSO), Customs, Inland Revenue Board of Malaysia (LHDN), MyIPO, InvestMalaysia, Malaysian
Industrial Development Finance (MIDF), Banks, and State Authorities and other relevant agencies
across the business lifecycle.
The following activities will be conducted:
• Identify and map all relevant processes from the Ministries and Agencies across the business
lifecycle;
• Improve internal processes within the Ministries and Agencies by removing duplication and
redundancy to make processes more efficient; and
• Digitalise processes for straight-through processing and integrate systems with single sign-
on capabilities.

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Transform 3,000 smart factories
This project aims to drive the adoption of recognised the benefits of technology and
Industry 4.0 technologies by transforming automation, Malaysia is faced with high
3,000 smart factories in Malaysia by 2030. competition. Together with FMM, MDEC and
A smart factory is a type of manufacturing SIRIM, concerted efforts with other Ministries,
facility that enhances its performance by Agencies and industry players are required to
incorporating intelligent and integrated support this transformation.
processes and resources across cyber,
physical and human domains. It leverages Actions
on technology and automation to create and
deliver products and services more efficiently. The following activities will be conducted for
Apart from that, a smart factory collaborates this MBP:
with other areas within a company’s value
chains to optimise operations and enhance • Leverage the enhanced Industry4WRD RA
overall labour productivity. and IF to prepare the industry to transform
into smart factories. The Ministries,
Rationale Agencies, associations and industry
players must work together to increase the
The rationale for this MBP is based on the readiness assessment participation and
following factors: encourage national level adoption;
• MNC and LLC champions will be identified
• Transforming into smart factories will lead to guide the industry towards Malaysia’s
to an increase in labour productivity; national direction:
• It will shift the manufacturing industry from • The large companies will provide
low-skilled labour to high-skilled workers. mentorship, guidance and knowledge
This will increase wages and improve the to help other industry players grow,
livelihood of the nation, thus expanding the adopt advanced technologies and
middle-class society; transform into smart factories; and
• It can build supply chain resilience as the • The MNC and LLC will integrate the
use of automated machineries can reduce SMEs and mid-tier companies (MTC)
production downtime. Apart from that, the as part of their value chain. This will
use of predictive analytics is able to identify encourage SMEs and MTCs to tech up
and mitigate supply chain shortages; and and meet the digital requirements of
• It can catalyse other industries in Malaysia larger companies.
to support the transformation of smart • Another critical aspect is to ensure Malaysia
factories. For instance: has sufficient and qualified solution
• Machineries and equipment sector to providers to support the industry through
produce system integration, robotics, Government assistance.
3D printing and imaging technology
and other Industry 4.0 technologies; Enablers
• E&E sector to produce advanced chips
and IoT sensors for fully automated The following are key Enablers for this MBP:
machinery; and
• ICT sector to supply software • Capacity and competency building in
development, AI, 5G, cloud computing higher learning institutions and research
and cybersecurity that enables institutions to develop technology creators’
automation with less human capabilities;
interaction. • Incentives to support industry players
in the readiness assessment and local
The shift towards smart factories is crucial for solution providers to scale their products
Malaysia to remain at the forefront of global and services;
manufacturing trends. In the past, Malaysia • Training development to ensure the industry
had a competitive advantage due to relatively players are skilled and knowledgeable
low labour cost. Now, as other countries for sustainable adoption of Industry 4.0

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technologies and smart factories; and Funding

• Digital infrastructure to support Industry
4.0 technologies, such as connectivity and Funding for this MBP will be driven by private
data centres readily available to support sector investments and Government funding
cloud computing, AI, etc. through the NIMP 2030 Industrial Development
Fund.
With this MBP, Malaysia aims to embrace
a digital mindset and fully embody digital
capabilities across all the manufacturing
industry supply chains. It is essential to act
swiftly and proactively to seize the opportunities
that digitalisation offers to remain competitive
in the rapidly evolving global landscape.
Establish Malaysia as Generative AI Hub
Malaysia aims to position itself as the market leveraging on generative AI to design new
leader in generative AI and strengthen presence products, detect defects, etc. This unlocks
in the regional and global marketplace by opportunities to create new industries and
developing local AI companies with system high-skilled jobs that are AI-powered.
integrator capabilities.
Generative AI has the potential to increase
Rationale efficiency, labour productivity and economic
growth. Under the World Bank’s GovTech
The rationale behind this MBP arises from Programme that aims to promote a whole-
multiple factors: of-government approach to modernise the
public sector, Malaysia has outlined clear goals
• Firstly, the global AI market is expected to to achieve 80 per cent of end-to-end online
grow at a compound annual growth rate government services. With this goal in mind,
(CAGR) of 37 per cent with an estimated there is an opportunity to leverage generative
value of USD1.3 trillion by 2030, from AI in the public service delivery as it not only
USD150.2 billion in 2023. The study forecasts improves the government’s efficiency, but
that the Asia Pacific region will account for also creates the demand required for local AI
the second largest share of the market in companies to expand their offerings to the
2030; government.
• Secondly, Malaysia has embraced the
trend and established ambitions through Actions
the National Fourth Industrial Revolution
(4IR) Policy and the Malaysia National AI The following activities will be conducted for
Roadmap (AI-RMAP). MOSTI forecasts that this MBP:
AI will boost labour productivity in Malaysia
by 30 per cent across all sectors by 2030 • Identify local AI companies that offer
and generative AI has been identified as a generative AI solutions and system
key enabler; integration to explore potential
• Thirdly, Malaysia has strong foundations collaborations, partnerships or support
in digital capabilities and infrastructure. required to scale operations and offerings
According to the Oxford Insights AI at a large scale;
Readiness Index 2022, Malaysia is ranked • Through the GovTech initiatives, the
29th globally (out of 181 countries) for the Government will create the demand for the
readiness to implement AI in the delivery of application of AI by identifying opportunities
public services; and for generative AI application in the public
• Generative AI is rapidly evolving, creating service delivery. This is to encourage the
new ways of working. Companies in scaling up of local AI solutions and system
the manufacturing industry have been integration providers;

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• MOHR and MOHE with the collaboration of key industry players will provide the necessary
education and training programmes for both public and private sectors. The training
programmes will cover three stages for AI adoption; basic knowledge, application and
development; and
• There will be incentives to encourage generative AI adoption and generative AI solution
providers, which will drive the AI market.
Enablers
The following Enablers are key to executing the MBP:
• Training development for public and private sector to adopt AI;

• Incentives to accelerate AI adoption in the manufacturing sector. This will create demand for
local AI companies to grow;
• R&D activities to develop use cases for the manufacturing sector to adopt AI at a national level;
• Infrastructure readiness to support the growth of data;
• Availability of sufficient and quality data to create a reliable knowledge base; and
• Legal and regulatory framework to ensure ethical use of Generative AI and considerations on
the limitations of Personal Data Protection Act (PDPA).
Funding
Funding for this MBP will be driven by private sector investments and Government funding
through the NIMP 2030 Industrial Development Fund.

6
MISSION 3 :
PUSH FOR NET ZERO
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96 Master Plan 2030 MISSION 3: PUSH FOR NET ZERO
The manufacturing industry plays a pivotal role in the global economy, but its extensive reliance
on fossil fuels and energy-intensive processes have led to significant greenhouse gas (GHG)
emissions, contributing to the acceleration of environmental deterioration. Malaysia is committed
to the global effort to tackle climate change and has pledged to reduce GHG emissions intensity
to achieve Net Zero emissions as early as 2050. To ensure this target can be met, it is pertinent
that Malaysia actively pursues the transition to a greener manufacturing industry.
The Industrial Processes and Product Use (IPPU) sector is the second largest emitting sector in
2019, contributing approximately 10 per cent of Malaysia’s total emissions. Industrial energy use
contributes a further 10 per cent of total emissions43.
The Push for Net Zero mission aims to decarbonise Malaysia’s industries to achieve its Net Zero
emission goal through implementation of energy efficiency and waste management measures,
rapid RE and technology adoption and robust regulatory frameworks. The decarbonisation
push will further present new economic opportunities for Malaysia to capitalise, particularly in
positioning itself as a leader in new green growth areas.
• Enhanced industry readiness towards ESG compliance:
Climate change causes disruptions to weather patterns and physical risk to infrastructure and
ecosystems. In view of this, Governments, investors, businesses and consumers worldwide
increasingly prioritise sustainable practices and low-carbon operations to reduce the
contribution to climate change. By actively working towards Net Zero emissions, Malaysia will
enhance its industry’s ESG compliance and align itself to the global sustainability agenda; and
• Development of new growth sectors:
The transition to Net Zero emissions presents significant opportunities for the development
of new growth sectors that will position Malaysia as a leader in green solutions in the region.
Four Strategies, 10 Action Plans and three Mission-based Projects have been developed to achieve
Mission 3, as illustrated below:

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MISSION 3: PUSH FOR NET ZERO Master Plan 2030 97
Figure 6.1: Mission 3 – Push for Net Zero
MISSION 3
Push for Net Zero
3.1 Accelerate transition towards sustainable 3.3 Catalyse new green growth areas
practices 3.3.1 Catalyse EV as a key growth driver
3.1.1 Develop sectoral decarbonisation pathways 3.3.2 Grow carbon capture, utilisation and
to guide transition storage (CCUS) as a new sector
3.1.2 Decarbonise “hard-to-abate” sectors 3.3.3 Develop circular economy framework for
3.1.3 Introduce carbon policy, accounting and tax the industry
3.1.4 Launch iESG framework and transition
programmes
3.2 Transition to renewable and clean energy 3.4 Shift towards green infrastructure
3.2.1 Enhance adoption scheme for energy 3.4.1 Accelerate transformation of industrial
efficiency or renewable energy estates into eco-industrial parks
3.2.2 Accelerate availability and accessibility of
renewable energy source for the industry
MBP 3.1 MBP 3.2 MBP 3.3
Create Launch locally- Deploy large-scale

decarbonisation manufactured EV CCUS solutions
pathway role models

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STRATEGY 3.1 Accelerate transition towards sustainable practices
Sustainable practices in the context of industrial practices refer to processes that minimise
environmental impact via reduced waste generation, emissions and pollutants. Examples of
sustainable practices include improving energy and resource efficiency in industrial processes,
using RE sources for energy production and implementing waste recycling and management
systems.
The road to decarbonise Malaysia’s manufacturing industry is dependent upon the adoption of
sustainable practices and technologies, particularly for hard-to-abate sectors. This adoption must
be accelerated to support Malaysia’s vision to achieve Net Zero emissions as early as 2050.
ACTION PLAN Develop sectoral decarbonisation pathways to guide

3.1.1 transition
Different sectors have varying emission levels and industry readiness to adopt decarbonisation
practices. As such, businesses need to adopt the appropriate decarbonisation pathways that best
suit the nature of their sectors without negatively impacting their overall operations.
The Government will co-develop decarbonisation pathways with the industry to guide the
transition towards low-carbon operations. Among the actions that can be adopted in these
pathways include the adoption of energy-efficient equipment and machinery, transition to RE
and electrification of industrial processes.
MITI will work with NRECC with the support of selected industry associations and industry players
to execute this plan and conduct the following activities:
• Identify anchor companies and co-develop sector-specific decarbonisation pathways;

• Socialise the pathway recommendations to industry players and provide incentives to
encourage adoption of decarbonisation initiatives; and
• Introduce policy measures to accelerate implementation of decarbonisation plans.
ACTION PLAN Decarbonise “hard-to-abate” sectors

3.1.2
Hard-to-abate sectors are typically capital-intensive and involved in upstream activities such
as metal, cement, chemical and petroleum. These sectors have inherent difficulty in lowering
emissions due to their reliance on fossil fuels for energy and as feedstock, energy-intensive
processes and expensive decarbonisation technologies.
The need to decarbonise hard-to-abate sectors has become more critical and urgent to protect
the environment and Malaysia’s export market. As an example, decarbonising hard-to-abate
sectors will address the EU’s Carbon Border Adjustment Mechanism (CBAM)44 tariffs, which will
affect Malaysia’s key export sectors as well as other ESG-sensitive markets.
Among the actions that can be executed include the adoption of low-carbon technologies in
processes and production activities, deploying carbon capture and storage mechanism, recycling
and reusing wastes as secondary sources of feedstock.

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MITI will work with NRECC, Department of Environment (DOE), MIDA, Malaysian Green
Technology and Climate Change Corporation (MGTC) and MTDC to execute this plan and conduct
the following activities:
• Prioritise the development of decarbonisation pathways for hard-to-abate sectors;

• Explore the introduction of sectoral emissions levy, specific for companies in hard-to-abate
sectors that produce emissions above a pre-set baseline;
• Develop programmes to ease access to financing for companies from hard-to-abate sectors
to acquire relevant technologies and implement transition programmes; and
• Facilitate industry conference programmes to allow decarbonisation technology providers to
showcase products to industry players from hard-to-abate sectors.
ACTION PLAN
Introduce carbon policy, accounting and tax
3.1.3
Carbon policy will set mandates and guidelines for a carbon accounting model to guide industry
players to measure and report Scope 1, 2 and 3 carbon emissions and for the implementation
of a carbon pricing mechanism e.g. carbon tax. A robust carbon tax system introduces a cost
component that is proportional to emissions produced. This will encourage industry players to
adopt sustainable practices to reduce carbon emissions.
This action plan is aligned to RMKe-12, which emphasises the need for a carbon pricing mechanism
such as a carbon tax system and a GHG emission accounting model to improve monitoring
emission levels.
MOF, with the support of NRECC and MITI will execute this action plan and conduct the following
activities:
• Develop a carbon accounting model that provides guidelines to identify emission sources and
measure, verify and report carbon emissions;
• Study the impact of carbon tax on Malaysia’s emissions in the long term; and
• Develop a carbon tax system with an appropriate initial tax rate and a pathway for a gradual
increase in tax rate over a set number of years.
ACTION PLAN
Launch iESG framework and transition programmes
3.1.4
Compliance with ESG is now a critical requirement for the global market, particularly in ESG-
sensitive markets. The iESG framework will serve as a comprehensive guideline for the
manufacturing sector to adopt ESG practices. The framework has three objectives:
• Support manufacturing firms to learn, be agile and adopt ESG practices;

• Transform challenges into opportunities; and
• Foster symbiotic public-private partnership for value creation.
The iESG framework will focus on four central components: Standards, capacity building, financing
and market mechanism, each with its own transition programmes.

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Figure 6.2: ESG Framework for the Manufacturing Sector
Financing Standards
Financial solutions and Financing Standards Implementation,
Support to adopt measuring and
sustainable practice reporting standards
Capacity building Market

mechanism
Market mechanism Capacity building
Carbon pricing, RE Workforce training to
certificates, Emission socialise ESG
Trading Mechanisms practices
TRANSITION PROGRAMMES (SELECTED EXAMPLES)
i-ESGStart – KNOWESG – raise Promote Green Set Carbon Pricing

sustainability reporting awareness on benefit Financing Options Instrument
guideline/ starter kit and opportunities
The iESG framework must be aligned with ongoing global reporting standards such as those
issued by the International Sustainability Standards Board (ISSB) as well as national frameworks
on sustainability.
It will be aided by upcoming domestic guides and tools such as the Simplified ESG Disclosure
Guide (SEDG) for SMEs by the Securities Commission Malaysia (SC) and Capital Markets Malaysia
(CMM). The Guide, which will be released in 2023, offers practical, structured guidance on
disclosures expected of SMEs in relation to ESG matters. It will provide SMEs with a simplified
and standardised set of ESG disclosures that will enable them to adopt sustainability to remain
competitive and relevant and to respond to disclosure requests from stakeholders, including
customers, investors, banks and regulators.
The SEDG is aligned with the main global frameworks and reporting standards including the ISSB
standards and the Global Reporting Initiative (GRI). It will reference local reporting requirements
including those under the Bursa Malaysia (Bursa) Listing Requirements, Bursa’s Sustainability
Reporting Guide as well as the Malaysian Code on Corporate Governance (MCCG).
MITI will execute this action plan and conduct the following activities:
• Align the iESG framework with the Simplified ESG Disclosure Guide (SEDG) for SMEs by the
Securities Commission Malaysia (SC) and Capital Markets Malaysia (CMM);
• Launch iESG framework and socialise recommendations to industry players;
• Roll out programmes in each of the four central components of the framework; and
• Set up monitoring mechanisms to track take-up of programmes.

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STRATEGY 3.2 Transition to renewable and clean energy
The manufacturing industry is largely dependent on the combustion of fossil fuel for power
generation, producing harmful GHG emissions. A Net Zero manufacturing industry requires
transition to renewable and clean energy as its main energy sources.
This strategy is aligned to the Malaysia Renewable Energy Roadmap (MyRER), which provides the
policy framework for RE development in Malaysia. MyRER specifies a target of 35 per cent by 2025
and 40 per cent by 203545. The National Energy Transition Roadmap (NETR) further pushes this
target to 70 per cent by 205046.
ACTION PLAN Enhance adoption scheme for energy efficiency or

3.2.1 renewable energy
Implementing energy efficiency measures and adopting RE will reduce carbon emissions and
provide long-term cost savings. Examples of energy efficiency measures include decommissioning
old equipment in favour of new, less power-intensive equipment and implementing energy
management systems. RE includes solar photovoltaic cells, hydropower and bioenergy sources
such as agriculture waste and biofuel derived from palm oil.
A significant barrier for industry players to make this transition is the associated high
implementation cost and limited knowledge on RE transition. The Government will address these
challenges by developing financial and advisory schemes, to facilitate the adoption of energy
efficient measures and RE.
MITI, with the support of MIDA, NRECC and Sustainable Energy Development Authority Malaysia
(SEDA) will execute this action plan and conduct the following activities:
• Engage industry players to understand challenges in adopting energy efficiency measures

and RE;
• Review and strengthen incentive schemes to ease industry in adopting energy efficiency
measures and RE; and
• Introduce governance mechanisms to monitor take-up rate of schemes.
ACTION PLAN Accelerate availability and accessibility of renewable

3.2.2 energy source for the industry
RE is a key component in the decarbonisation of industries. Due to its geographical location,

climate and rich agricultural activity, Malaysia has high potential for RE generation such as solar,
hydro, bioenergy, geothermal and hydrogen fuel cell. However, the availability and accessibility of
RE is a key challenge to facilitate the transition to RE.
The types of RE and their potential can be summarised as below:

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Table 6.1: Summary of Renewable Energy Resources Potential
No. Type of RE Viability Potential (GW)

1 Solar Photovoltaic All year-round solar irradiation 269.0
Cells
2 Hydropower Presence of numerous river basins:
• Large hydro 13.6
• Small hydro 2.5
3 Bioenergy Availability of large quantities of 3.6
agriculture, domestic and industrial
waste
4 Geothermal Presence of geothermal fields with 0.6
high activity
5 Hydrogen Growing focus on hydrogen as a source New potential
of energy
Source: Malaysia Renewable Energy Roadmap
However, the supply of RE is currently limited due to various challenges, unique to each type
of RE source. The Government will address these challenges to accelerate the availability and
accessibility of RE for the industry via the Strategies and Action Plans identified under the MyRER.
This includes strategic focus on accelerating large scale solar deployment, new business models
to explore bioenergy resources, hydro potential and new energy technology exploration e.g.
hydrogen fuel cell47.
NRECC and SEDA, with the support of MITI, MGTC, MIDA, SIRIM, the Energy Commission and
power utility providers such as Tenaga Nasional Berhad (TNB), Sabah Electricity Sdn. Bhd. (SESB)
and Sarawak Energy Berhad (SEB) will execute this action plan through the governance of MyRER.

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Box Article 6.1:

The Hydrogen Economy – Hydrogen as a
renewable source
What is Hydrogen Economy?

A conceptual framework has been
Energy system where hydrogen is used as a established to accomplish Hydrogen
clean and sustainable energy carrier to replace Economy in Malaysia…
traditional fossil fuels in achieving low-carbon
future Feedstock for chemical industries
1
The use of hydrogen aims to reduce the
impact on climate change which 2 Internal combustion engines fuel
predominantly caused by the usage of carbon-
intensive energy sources such as coal, oil and 3 Automobiles fuel and energy storage
natural gas
Hydrogen
fuel cells
can power
vehicles to
Energy reduce air
storage to pollution Decarbonising
increase industrial
reliability on processes by
renewable using H2 as
energy feedstock
Provide clean
Clean energy
electricity
carrier as it and heat for
emits zero
greenhouse Roles in Hydrogen residential &
commercial
gas
Economy use
Contributions of Hydrogen Economy
Boosting global economic Improvement in public health and

through $240 billion direct mitigate climate change as a result
investments in 680 large-scale of zero carbon emission
hydrogen projects announced from hydrogen fuel cells
Excess power from solar and wind Enhance energy security

can produce hydrogen through by diversifying energy sources and
electrolysis which can be used to shifting reliance on finite fossil fuel
generate electricity resulting in reserves
reduced energy cost
Source: MIDA

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STRATEGY 3.3 Catalyse new green growth areas
The global demand for green technologies and processes is increasing at a rapid pace as Net Zero
targets become a central feature in the climate policy of many countries around the world and
industries race to decarbonise their production. This presents new economic opportunities for
Malaysia to capitalise, to position itself as a leader in new green growth areas.
ACTION PLAN
Catalyse EV as a key growth driver
3.3.1
The transport sector is consistently the second largest emission contributor in the energy segment
in Malaysia. The emissions are largely attributed to fossil-fuel powered road transportation.
Catalysing the growth and adoption of EV will accelerate the decarbonisation of Malaysia’s
transport sector.
The catalytic effect of EV will further boost growth of related sectors in equipment supply,
charging infrastructure and software development for an EV ecosystem. These would harness
cross-sectoral collaboration across industries including metal, E&E, digital and ICT and chemical.
An EV ecosystem comprises the following key components:
• Raw material: Steel, aluminium, plastic composites, etc.

• EV components: EV battery, chassis, motors, power electronics and embedded system
platform, etc.
• Charging Infrastructure: Charging stations
• EV services: Maintenance and repairs, EV conversion services, battery testing and safety,
battery recycling
Figure 6.3: The EV Ecosystem

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The National Automotive Policy 2020 and the Low Carbon Mobility Blueprint 2021-2030 detail
aspirations for Malaysia to develop an electric mobility ecosystem. Malaysia has set a target of 15
per cent xEV48 share of the Total Industry Volume (TIV) by 2030.
The Low Carbon Nation Aspiration 2040 pushes this target further to 38 per cent xEV share by
204049. To achieve these targets, a National Level Inter-Ministry EV Taskforce was set up. This task
force oversees the growth of EV in Malaysia.
The National Level Inter-Ministry EV Taskforce under MITI, with the support of Ministry of Transport
(MOT), NRECC, MOSTI, MGTC, SIRIM, Malaysia Automotive Robotics and IoT Institute (MARii) and
MIDA will execute this action plan and conduct the following activities:
• Formulate a comprehensive policy to attract global EV manufacturers into Malaysia, increase

SME participation in the local EV value chain and facilitate the set-up of more charging
infrastructure;
• Facilitate collaboration of industry players with global players for knowledge and technology
transfer;
• Collaborate with selected industry players to deploy charging infrastructure; and
• Improve demand for EV by lowering cost of EV.

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Box Article 6.2:

The Electric Vehicle (EV) Value Chain
1 Research & Development

Collaborations between Government Agencies, academic institutions,
and industry players to develop advanced technologies, improve
battery efficiency and enhance the overall performance of electric
vehicles
2 Battery Production
The production of lithium-ion batteries is a core components of electric
vehicles. Battery manufacturers focus on improving energy density,
durability and charging capabilities while reducing costs
3 Manufacturing
EV manufacturers assemble various components, including the battery
pack, electric motor, power electronics and other subsystems, to create
the final EV. It involves the integration of software and hardware
systems, as well as compliance with safety and regulatory standards
4 Charging Infrastructure
The deployment of a robust charging infrastructure is essential for the
widespread adoption of EV. This stage involves the installation of public
charging stations, home charging units and fast-charging networks to
support convenient and efficient charging of EV
5 Technology Solution
Digitalisation allows for over-the-air updates on EV software and
battery management system. This would support the anti-theft
protections, vehicle support and built in navigation enhance customers
experience and provide solutions
6 End of Life
Managing end-of-life phase of EVs considers battery recycling and
second life applications. Secondary application could be viable for non-
transportation related. Recycling can help attach a residual value to the
battery at its end of life
Source: MIDA

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ACTION PLAN Grow carbon capture, utilisation and storage (CCUS) as a

3.3.2 new sector
Carbon capture, utilisation and storage (CCUS) is a new potential solution for carbon management,
particularly for hard-to-abate sectors. CCUS comprises two possible pathways; Carbon capture and
storage (CCS), where emissions are captured and stored in depleted oil fields or other geological
formations and Carbon capture and utilisation (CCU), where emissions are captured and utilised
to manufacture products.
Malaysia is primed to capitalise on opportunities in CCUS as it has a sizeable number of depleted

oil fields that are geologically stable, which is suitable for carbon storage. Products manufactured
from captured carbon, such as carbon composites and chemical feedstock align to waste-to-
wealth principles and help contribute to the growth of priority sectors such as aerospace and
chemical.
The CCUS sector comprises businesses that offer Carbon Capture-as-a-Service (CCaaS), logistic
companies that transport captured carbon to storage sites, technology solution providers that
deploy carbon capture infrastructure in industrial plants and technology companies that convert
captured carbon into useable feedstock.
KE, with the support of NRECC, MITI, MOT, Ministry of Foreign Affairs (MoFA) and MOF will execute
this action plan and conduct the following activities:
• Develop a CCUS framework and the governance mechanisms for industry development,
through Cluster-based approach;
• Roll out first CCUS cluster in East Coast Malaysia. targeting hard-to-abate sectors;
• Strengthen current carbon management regulation and introduce a carbon tax, to encourage
the use of CCUS; and
• Explore Government-to-Government (G2G) bilateral agreements to facilitate collaboration
between countries.
ACTION PLAN
Develop circular economy framework for the industry
3.3.3
The traditional linear economy model follows a ‘take-make-dispose’ scheme and exhausts raw
materials and energy. This results in overuse of resources and production of large quantities of
wastes, pollutants and carbon emissions.
A circular economy model promotes an industrial economy that is restorative or regenerative

by design, using a closed loop material flow in the economic system. Examples of this include
designing products that require less raw materials and can be recycled and reusing wastes as
secondary sources of feedstock.
A circular economy framework will provide guidelines for industry players to transition to a circular
economy model, set targets and ensure the development of enablers such as R&D capability and
infrastructure.

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Figure 6.4: Circular Economy Principles
This action plan complements Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018-2030
and the National Solid Waste Management Policy.
MITI with the support of NRECC, KPKT, MIDA, MRM, SIRIM and selected industry players will
execute this action plan and conduct the following activities:
• Assess the challenges and economic opportunities in transitioning to a circular economy;

• Develop guidelines for industry players and targets for Malaysia to achieve;
• Develop programmes to support the transition of industry players to adopt a circular economy
model; and
• Develop training programmes to facilitate capacity building.
STRATEGY 3.4 Shift towards green infrastructure
Green infrastructure is a network of natural systems and man-made infrastructure that provide
economic value while preserving environmental quality. Green infrastructure in industrial
complexes is typically powered by RE and operated sustainably via waste-to-wealth activities that
are aligned to circular economy principles and the utilisation of energy efficient equipment.
Shifting towards green infrastructure is key to achieve Malaysia’s Net Zero target.
To achieve this, one Action Plan has been formulated:

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ACTION PLAN Accelerate transformation of industrial estates into eco-

3.4.1 industrial parks
Industrial estates typically have a high concentration of companies, which make them GHG
emission hotspots. Transforming brownfield industrial estates into eco-industrial parks that have
green and resilient infrastructure and sustainable processes reduces greenhouse gas emissions,
the amount of wastes produced and natural resources used. The principles of circular economy
are a central component of eco-industrial parks.
Key components of eco-industrial parks include collective park management activities for
resource-efficiency, resilient infrastructure, circularity of waste, advanced wastewater treatment
and RE solutions50.
Eco-industrial parks have reduced operation costs in the long term and will attract high quality
green FDI.
Figure 6.5: Types of Industrial Parks
MITI with the support of NRECC, DOE, SIRIM and MIDA will execute this action plan and conduct
the following activities:
• Obtain buy-in of relevant stakeholders to transform industrial estates to eco-industrial parks;

• Enhance industrial estates’ development and management; and
• Implement green practices in industrial estates.

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Box Article 6.3 :

What is an Eco-Industrial Park
What is an Eco-Industrial Park?

An eco-industrial park, also known as an eco-park, aims to integrate industrial
activities with sustainable and environmentally friendly practices. It is designed to
minimise the environmental impact of industries and promote resource
efficiency, waste reduction and the use of renewable energy sources.
EcoWorld Case Study
EcoWorld has four strategically-located business parks –

Eco Business Parks I, II, III, and V:
• Eco Business Park I: 612-acres, in Iskandar Malaysia, Johor, with 500+ SMEs
from various industries.
• Eco Business Park II: 383-acres, in fast-growing Flagship E of Iskandar

Malaysia, close to Johor Bahru and Singapore.
• Eco Business Park III: 248-acres, in Pasir Gudang, a growing business hub
in Iskandar Malaysia.
• Eco Business Park V: 117-acres, in Klang Valley, connected to major

expressways, seaports, and airports.
Benefits to businesses:
• Convenient logistics: • Sustainable features: Green
Strategically located near initiatives like rainwater
major land and sea routes, harvesting, LED lighting and
ideal for a range of industries. ample green spaces to reduce
carbon footprint and keep
energy usage low.
Source: EcoWorld

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Create decarbonisation pathway role models
To reduce carbon emissions from industrial Actions

activities, it is critical to adopt decarbonisation
initiatives. However, without pathways to The following activities will be conducted for
emulate, it may be difficult for industry players this MBP:
to identify effective initiatives.
• Select decarbonisation pathway role
This project aims to create decarbonisation models for each hard-to-abate sector,
pathway role models, to guide other companies beginning with petrochemical;
in the same sector to decarbonise. • Record the MBP champion’s
decarbonisation pathways, for other
For this MBP, a champion has been identified companies to emulate;
to provide a showcase decarbonisation • Socialise the decarbonisation pathways to
pathway for the petrochemical sector. The other potential companies; and
decarbonisation pathway developed will • Strengthen carbon management
guide other petrochemical companies to regulations e.g. sectoral emission levy and
decarbonise. Following this, other companies carbon tax system, to encourage adoption
in hard-to-abate sectors such as Metal, Cement of decarbonisation pathway.
and Chemical will be able to develop their own
decarbonisation pathways. Enablers
Rationale The following are key Enablers for this MBP:
The rationale for this MBP is based on the • Establishing collaboration in technical
following factor: assistance to support firms in undertaking
their sectoral decarbonisation;
• Hard-to-abate sectors have inherent • Mobilising financing to support the
difficulty in lowering emissions and greening of value chains and undertake
require showcase references to adopt demonstration projects;
successful initiatives that utilise effective • Incentives to support industry players to
decarbonisation technologies and adopt low-carbon technologies; and
methodologies, such as: • Talent development to ensure there is
• Implementation of energy efficiency sufficient talent in high value R&D jobs to
measures; development new low-carbon technologies.
• Electrification of machinery;
• Transition to RE; Funding
• CCUS;
• Sustainable sourcing of raw material This MBP will be private led, potentially financed
and feedstock; from the financing ecosystem catalysed under
• Adoption of Circular Economy the NIMP 2030.
principles: sustainable consumption
and management of resources
and waste reduction, reuse and
management; and
• Transition to green infrastructure.

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Launch locally-manufactured EV
This MBP is focused on launching a locally-manufactured EV. The aim is to facilitate industry
players in the EV ecosystem to develop end-to-end capabilities in EV manufacturing by attracting
and developing the relevant value chains in Malaysia. Private sector companies, including SMEs,
will be upscaled to participate in the EV value chain, as component manufacturers, charging
infrastructure manufacturers and providers and EV service providers.
Charging infrastructure is a key component in the EV ecosystem. The unavailability of a network of

charging infrastructure induces ‘range anxiety’ amongst EV owners and causes low EV demand
and adoption. In tandem with the launching of a locally manufactured EV, it is key to deploy a
network of charging stations in strategic locations. Common standards should be established to
ensure compatibility of connectors.
Rationale
The rationale behind this Mission-based Project arises from multiple factors:
• Firstly, this MBP is aligned to a national agenda to develop an electric mobility ecosystem
in Malaysia. This is evident through the aspirations detailed in the National Automotive
Policy 2020 and the Low Carbon Mobility Blueprint 2021-2030, and the set-up of a National
EV Steering Committee under the National Level Inter-Ministry EV Task Force to oversee the
growth of EV in Malaysia; and
• Secondly, this MBP will catalyse the growth of sectors such as R&D, M&E, E&E, Materials,
Minerals, Digital and ICT and Energy to supply equipment, parts, infrastructure and capability
to enable a local EV ecosystem, that comprises:
• Raw materials: Steel, aluminium, plastic composites, etc.;
• EV components: EV battery, chassis, motors, power electronics, etc.;
• Charging Infrastructure: Charging stations; and
• EV services: Maintenance and repairs, EV conversion services, battery testing and safety,
battery recycling.
Actions
The following activities will be conducted for this MBP:
• Government-private sector collaboration to set standards for charging infrastructure, ensure

compatibility of connectors and establish robust charging infrastructure;
• Incentivise the participation of SMEs in the local value chain to support this MBP;
• Facilitate the development of a locally-manufactured EV; and
• Drive EV-adoption programmes to increase demand.
Enablers
The following Enablers are key to execute the MBP:
• Industry adoption of Industry 4.0 technologies; and

• Incentives to lower the cost of EV ownership, to drive demand.
Funding
This MBP will be private led, potentially financed from the financing ecosystem catalysed under
the NIMP 2030.

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Deploy large-scale CCUS solutions
This MBP is focused on the deployment of CCUS infrastructure to decarbonise hard-to-abate

sectors such as Metal, Cement, Chemical and Petroleum. Deploying CCUS comprises four key
components:
• Carbon capture: Capture CO2 from industrial processes;

• Transportation: By ship, pipeline and land transport;
• Carbon storage: CO2 storage in depleted oil fields; and
• Carbon utilisation: Development of products from captured CO2 and aligned to circular
economy principles.
The champion for this MBP will invest in R&D to develop CCUS technologies, including for the
utilisation of captured carbon and facilitate the transfer of CCUS technologies into Malaysia via
partnerships with global companies. Initial focus will be on utilising CCUS to decarbonise selected
oil and gas plants.
The storage capacity in the identified storage fields will be earmarked for both domestic use as
well as for global players. The allowance for global players to store carbon emissions in Malaysian
carbon storage fields is beneficial to facilitate technology transfer into the country to accelerate
the growth of CCUS as a sector.
Figure 6.6: Processes in CCUS
Liquid CO2 carriers

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Rationale
The rationale for this MBP is based on the following factors:
• CCUS is a nascent sector with no dominant player in the Asia Pacific. Malaysia can lead the
growth of the sector in the region due to several advantages, particularly its vast carbon
storage capacity across its depleted oil fields. Malaysia is geographically suitable as it does not
have seismic activities and its potential carbon storage sites are 2,000 metres below sea level
• The growth of CCUS as a sector will facilitate technology transfer into the country, advance the
local R&D ecosystem, create a new pool of skilled workers and a new export service segment
e.g. Carbon Capture-as-a-Service (CCaaS).
The risks associated with leakages during transportation and at the storage sites will be mitigated
through careful selection of storage sites and by reinforcing storage sites and deploying monitoring
systems.
Actions
The following activities will be conducted for this MBP:
• Develop a CCUS framework and the governance mechanisms for industry development,
through Cluster-based approach;
• Roll out first CCUS cluster in East Coast Malaysia, targeting hard-to-abate sectors; and
• Explore Government-to-government (G2G) bilateral agreements to facilitate collaboration
between countries.
Enablers
The following Enablers are key to execute the MBP:
• Regulation for the growth of CCUS as a sector; and

• Carbon management regulations e.g. sectoral emission levy and carbon tax system to
encourage the adoption of CCUS.
Funding
This MBP will be private led, potentially financed from the financing ecosystem catalysed under
the NIMP 2030.

7
MISSION 4 :
SAFEGUARD ECONOMIC SECURITY
AND INCLUSIVITY
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116 Master Plan 2030 MISSION 4: SAFEGUARD ECONOMIC SECURITY AND INCLUSIVITY
The world is undergoing a major geopolitical shift, as observed in the US-China trade tension
and Russia-Ukraine conflict. In response, MNCs especially from the United States and Europe are
actively seeking ways to de-risk their operations by adopting a “Plus One” strategy. Additional
challenges posed by the COVID-19 pandemic have resulted in a notable shift in the global supply
chain from economic efficiency to economic security. The Government via the NIMP 2030 will
navigate the new paradigm, working towards building a resilient and robust economy.
There is a good opportunity for Malaysia to embark on a second take-off and expand the middle-
class society. In pursuit of this Mission, Malaysia aims to develop a resilient supply chain, foster
climate resilient development, strengthen industrial clusters and encourage a more balanced
participation by States in socioeconomic activities.
• Ensure shorter and more secure supply chain:
Malaysia is well-positioned as a strategic destination for nearshoring. This involves bolstering

the capacity of domestic industries to be part of the global supply chain.
• Enhance resilience of manufacturing base:
The Government will work towards strengthening manufacturing sector’s ability to withstand
and recover from potential disruptions and calamities.
• Strengthen domestic and ASEAN vertical integration:
The NIMP 2030 will drive collaborative efforts in industrial development among States. It will
generate growth in manufacturing sector nationwide and create spill over to other sectors
such as tourism, distributive trade and other services sectors. With the strong domestic
linkages, Malaysia will be able to position itself strategically within ASEAN to build regional
resilience and connectivity.
• Promote inclusivity:
Malaysia will harness the collective expertise and resources of the nation to drive the NIMP
2030 forward. By involving all stakeholders and fostering inclusivity, Malaysia aims to ensure
that the benefits are shared by all members of society.
Four Strategies and 10 Action Plans will be carried out to achieve Mission 4, as illustrated below:

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MISSION 4: SAFEGUARD ECONOMIC SECURITY AND INCLUSIVITY Master Plan 2030 117
Figure 7.1: Mission 4 – Safeguard Economic Security and Inclusivity
MISSION 4
Safeguard economic security and inclusivity
4.1 Develop resilient supply chain 4.3 Strengthen industrial clusters for regional
4.1.1 Identify specific supply chain resilience development
strategies for critical sectors 4.3.1 Expand clusters for spillover regional
4.1.2 Establish supply chain cooperation and impact
collaboration through G2G and G2B 4.3.2 Align industrial development plan between
programme Federal and States
4.1.3 Introduce National Mineral Policy for
downstream processing of critical minerals
4.4 Empower Bumiputera participation and

4.2 Foster climate resilient development create inclusive workforce
4.2.1 Develop sectoral adaptation pathways to 4.4.1 Uplift capabilities of Bumiputera
guide transition companies in manufacturing via Tindakan
4.2.2 Foster an adaptation industry to provide Pembangunan Bumiputera 2030
adaptation products and services 4.4.2 Develop programme to increase women
(including exports) participation in high-skilled manufacturing
4.2.3 Instil climate resilience measures for employment
critical economic infrastructure
STRATEGY 4.1 Develop resilient supply chain
According to the World Economic Forum, the collapse of a systemically important supply chain
is rated as one of the highest risks to the global economy, as it may lead to an abrupt shock to
the supply and demand of critical goods and services globally51. It is critical for Malaysia to ensure
smooth trade, access to essential goods and business continuity by growing and innovating the
local industries to become more self-sufficient.
Malaysia possesses significant reserves of critical minerals, which are valuable for high value-added
manufacturing activities. Therefore, the Government and industries need to ensure sustainable
development of critical minerals to meet current and future needs.

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ACTION PLAN Identify specific supply chain resilience strategies for

4.1.1 critical sectors
National supply chain resilience is crucial for materials, critical components for industries
the industries to navigate disruptive forces and and products vital for public health, defence
swiftly respond to volatile supply and demand. A and infrastructure. Given that, Malaysia needs
significant example is the COVID-19 pandemic, to innovate and grow local industries and
which had caused disruptions in the global and attract investments for domestic production.
local supply chains, as countries implemented
lockdown measures, travel restrictions and The action plan will be led by MITI in
trade disruptions. The adverse impact was collaboration with key stakeholders
particularly felt in the manufacturing sector. including relevant MITI agencies and industry
associations. The following activities will be
In view of this, it is crucial for Malaysia to conducted:
develop a robust model that can identify
vulnerabilities and potential disruptions such • Develop supply chain resilience model to
as geopolitical shift, overreliance on single identify vulnerabilities, develop scenario
sourcing, natural disasters and public health planning and potential response and
challenges. This will help Malaysia to determine execute simulation of crisis scenarios;
critical products and components that should • Develop business continuity plan in
be produced domestically and which can be response to disruptions; and
outsourced from other countries. These critical • Conduct regular review to ensure relevance
products encompass essential goods, key raw in addressing future disruptions.
ACTION PLAN Establish supply chain cooperation and collaboration

4.1.2 through G2G and G2B programme
Moving beyond the national level, a broader Malaysia can take advantage of the trade
perspective is global supply chain resilience. agreements that have been signed with other
The pandemic has revealed the vulnerability of countries to strengthen its supply chain. To
global supply chains. As a result, many countries date, Malaysia has implemented 16 FTAs,
have made structural changes to their supply comprising seven bilateral and nine regional
chain framework by implementing dual or FTAs. G2G and government-to-business (G2B)
multiple sourcing strategies. This serves as a cooperation is paramount to ensure that these
signal for Malaysia to re-evaluate and fortify its trade agreements comprehensively secure the
current supply chain, ensuring preparedness identified critical products and components.
for any future disruptions.
The action plan will be led by MITI in
A significant step towards achieving this collaboration with key stakeholders including
resilience is through the adoption of the “Plus MATRADE and MIDA to conduct the following
One” strategy, which has gained prominence activities below:
in recent years due to escalating labour costs,
geopolitical risks, supply chain disruptions and • Identify potential alternative trade partners
evolving trade dynamics. or countries to support sourcing of critical
products, components or resources;
Malaysia is well-positioned as a neutral • Review the current trade agreements to
country with existing strengths including map with identified critical products; and
in semiconductor, clean energy and critical • Foster new trade agreements aligned with
minerals to support the supply chain resilience national interests, where necessary.
of the region and the world. Malaysia will form
complementary cooperative relationship
within the ASEAN framework to build a strong
vertical supply chain integration.

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ACTION PLAN Introduce National Mineral Policy for downstream

4.1.3 processing of critical minerals
Malaysia is set to become an important hub for the development of the mineral industry,
leveraging on its abundant mineral resources. The responsible and sustainable use of these
mineral resources are essential to ensure the country’s economic security. The rapid development
of clean energy technologies is set to supercharge demand for critical minerals.
The global critical mineral supply chain is increasingly vulnerable as demand surges for the
manufacturing of electric vehicle batteries, satellites and wind turbines. Malaysia should
maximise its valuable critical mineral reserves by encouraging domestic downstream industries
development.
In line with National Mineral Industry Transformation Plan 2020-2030 launched in 2021, NRECC
has identified five critical minerals: NR-REE (non-radioactive rare earth elements), bauxite, tin
ore, silica sand and kaolin. The estimated value is worth up to RM971.3 billion and Malaysia is well-
positioned to capitalise on these economic opportunities. The strategic minerals are essential to
produce high-tech products and act as a strong pillar to support other sectors’ continuity and
secure national security.
Figure 7.2: Strategic Minerals
5 Strategic Minerals
NR-REE Bauxite Tin Ore Silica Sand Kaolin

(non-radioactive rare
earth elements)
Strategic minerals value worth up to RM970 billion
Permanent Aluminium Pewter Electronic Pharmaceuticals

magnets production components (capsules and
tablets)
Hybrid and Metal alloys Canning Solar cells Cosmetics

electric vehicle

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A new National Mineral Policy will be rolled out to manage the extraction of minerals and ensure
a balance between potential economic benefits and environmental sustainability. It will set a
new SOP for all mining operations across the country, with the aim to strengthen enforcement
against illegal mining while promoting environmentally friendly mining activities. Another focus
is to propel downstreaming of the critical minerals. Malaysia shall take this opportunity to move
up the value chain to further add value of the valuable minerals prior to exporting.
Figure 7.3: Minerals Value Chain
The policy will be led by NRECC in collaboration with key stakeholders such as MITI, MOSTI,
State Governments, Local Governments and Jabatan Mineral dan Geosains (JMG). The following
activities will be conducted:
• Determine and formulate the objective, scope and mechanism of the policy;
• Gather and incorporate feedback from States and Local Governments to drive synergy; and
• Enforcement of National Mineral Policy nationwide.
STRATEGY 4.2 Foster climate resilient development
Climate resilient development is a process of implementing both GHG mitigation and climate
adaptation options to support Malaysia’s pursuit of sustainable development. In this strategy, the
focus will be on climate adaptation to build climate resilience of the manufacturing industry.
Based on a study by Khazanah Research Institution (KRI) in the Task Force on Climate Related
Financial Disclosures (TCFD) framework, Malaysia’s manufacturing industry is exposed to a range
of physical risks associated with climate conditions. These risks can have significant implications
for the operations of manufacturing companies and the overall economy.

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Figure 7.4: Physical Risks Associated with Climate Conditions
Source: KRI’s Compilation
Companies face not only short-run losses resulting from climate shocks but potential long-term
challenges stemming from chronic climate risks. These chronic risks can have a lasting impact on
a company’s financial stability.
As a result, there is a need to support the industry in adaptation practices by fostering climate
resilience development. By doing this, it reduces risks, adapts to changing conditions, promotes
sustainable development, enhances economic stability and fulfils Malaysia’s global responsibility
in addressing climate change.
ACTION PLAN Develop sectoral adaptation pathways

4.2.1
As climate change worsens, the impact of it poses significant risks to Malaysia’s industries:
• Physical risks:
Extreme weather events such as rising sea-level and changes in precipitation patterns can
damage critical industrial infrastructure, especially in coastal areas;
• Supply chain risks:

Climate change can disrupt supply chains by affecting the availability, quality and reliability of
key inputs, commodities and raw materials; and
• Operational risks:
Climate change can impact day-to-day operations by increasing operational costs, reducing
labour productivity and disrupting business continuity.

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With the view of the climate change risks, the Government will take a proactive approach to
develop adaptation pathway to build resilience. Different sectors require different mechanisms to
adapt to the climate change-induced risks. There are sector-specific challenges and vulnerabilities
for which solutions must be catered to. The sectoral adaptation pathways will include measures
to address:
• Changes to infrastructure to adapt to physical risks;

• Diversification of sources for critical resources such as energy and feedstock to minimise
supply chain risk; and
• Adoption of technology.
MITI will collaborate with NRECC to execute this action plan and the following activities will be
conducted:
• Develop sectoral adaptation pathway with the consideration of the current and future climate
risks, potential vulnerabilities and climate change impact;
• Promote awareness of the pathways and provide incentive to encourage adaption; and
• Introduce policy measure to accelerate the implementation.
ACTION PLAN Foster an adaptation industry to provide adaptation

4.2.2 products and services (including exports)
Malaysia’s GDP loss by 2048 could be as high as 46 per cent due to physical climate impacts52.
While this is alarming, the adaptation process can serve as an opportunity to grow local climate
adaptation-related industries and service providers.
The existence of an adaptation industry can help the Government and other industries manage
the impact of sea level rise, coastal erosion, floods, heat stress, agricultural adaptation and other
forms of infrastructural effects. For example, according to a report by the National Hydraulic
Research Institute of Malaysia (2018), Port Klang is expected to be submerged towards the end
of the century with over 1m of sea level rise, based on sea level rise studies that it referred to. The
Government shall collaborate with key stakeholders such as port operators, logistics providers,
engineers and scientists to implement major infrastructural measures for climate risk mitigation.
To execute this action plan, MITI will collaborate with KKR, KE, NRECC and MOSTI. The following
activities will be conducted:
• Identify risks of physical climate hazards that could cause disruption to industrial structures,
supply chain continuity and daily operations.
• Determine product and service providers for the provision of climate adaptation advice and
subsequent implementation of climate adaptation measures.
• Identify opportunities to grow climate adaptation product and service providers for the export
market.

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ACTION PLAN Instil climate resilience measures for critical economic

4.2.3 infrastructure
Economic infrastructure is important to maintain national security, economic vitality, public

health and safety to facilitate continuous economic growth. The economic infrastructure in
the manufacturing industry must be able to withstand, respond to and recover rapidly from
disruptions caused by climate conditions. These climate conditions include floods, rising sea-
level, heatwaves, forest fire and haze. The Government will plan, design and build climate resilient
infrastructure in anticipation of the changing climate conditions.
Based on Organisation for Economic Co-operation and Development (OECD) Environment Policy
Paper on Climate-Resilient Infrastructure, the climate resilience measures can be grouped into
two categories53:
• Structural adaptation measures

• Modify physical infrastructure to withstand climate conditions. For example, provide
guideline in changing road surfaces to prevent deformation from high temperatures or
building seawalls to manage excessive runoff during heavy rainfall.
• Utilise natural infrastructure to design adaptation measures. For example, manufacturing
facilities can incorporate green infrastructure elements such as rain gardens, bioswales
and constructed wetlands to manage stormwater runoff.
• Management (non-structural) adaptation measures

• Adjust timing of maintenance activities to align with shifting patterns of energy demand
and supply. This can optimise operational efficiency and minimise disruptions.
• Invest in early warning system and insurance to address financial consequences of climate
conditions.
• Enhance monitoring of existing assets to identify potential vulnerabilities and reduce the
risk of failure as climate conditions change.
• Incorporate adaptive management approaches to monitor and adjust to changing
circumstances over the asset’s lifetime.
To execute this action plan, MITI, KKR, KE and NRECC will lead with support from the industry
players. The following activities will be conducted:
• Assess vulnerability of critical economic infrastructure in the manufacturing industry. Identify

infrastructure such as buildings, transportation systems, power grids and water supply
systems that are at risk from climate conditions;
• Evaluate the risk associated with climate change impacts on the critical infrastructure.
Consider factors such as change in temperature, precipitation, storm and sea-level;
• Develop adaptation strategies to instil climate resilience for the critical infrastructure. This
should include both structural and management adaptation measures; and
• Integrate climate considerations into policies and planning to ensure coordinated efforts.
Raise awareness and capacity building to educate the industry. Conduct periodic review and
update climate resilience measures to account for changing climate patterns and emerging
technologies.

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Strengthen industrial clusters for regional

STRATEGY 4.3 development
The NIMP 2030 will continue the effort to bridge the development gap among States to ensure
balanced regional development. The overarching goal is to unlock the untapped potential of
each State and Region, thereby stimulating and accelerating equitable economic growth on a
nationwide scale. Priority will be given to industrialisation, leveraging the strengths of States to
spur greater economic activities. The Government will strengthen existing industrial clusters and
unlock potential new clusters.
ACTION PLAN
Expand clusters for spillover regional impact
4.3.1
Malaysia has developed strong economic clusters in some States. In line with RMKe-12, the NIMP
2030 targets to address the disparity in industrial development between States. To achieve
balanced regional development, the State Governments will work collaboratively based on
respective complementary strengths. This allows the States in geographical proximity to gain
spill over effects from existing clusters.
For example, the northern corridor of Kedah and Perak benefit from the rapidly expanding E&E
cluster in Bayan Lepas and Batu Kawan in Penang. Integrated high-tech park in Kulim, Kedah
which focuses on high technology manufacturing, advanced technologies and R&D activities
can potentially support the E&E cluster. This expansion accelerates the growth of the economic
clusters, drives local innovation and enables Malaysia to stay competitive in the global market by
expanding the base. There are other examples of clusters that have the potential to create spill
over impact, such as:
• M&E cluster: Batu Kawan, Penang

• Automotive cluster: Gurun, Kedah; Tanjong Malim, Perak
• Petrochemical cluster: Pengerang, Johor; Gebeng, Pahang; Kerteh, Terengganu

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Figure 7.5: Economic Clusters in Malaysia
Another existing example is the East Coast Rail Link (ECRL), a strategic infrastructure project
connecting the East and West Coasts of Peninsular Malaysia spanning across Kelantan,
Terengganu and Pahang towards Port Klang. To unlock the transit-oriented development for
ECRL, MIDA and China Communications Construction Company Ltd (CCCC) have signed an MOU
for the development of the Economic Accelerator Projects (EAPs) along the ECRL alignment.
To date, MIDA has identified three logistic hubs and 11 industrial parks, and is expecting more
development to be established to grow regional economy. The details are as shown below:

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Figure 7.6: Transit-oriented Development for ECRL
Table 7.1: Logistics Hubs in Malaysia
No. Logistics Hubs Location

1 Malaysia China Kuantan International Logistic Kuantan Port City Station, Pahang
Park (MCKILP)
2 ITT Gombak Transit Gateway ITT Gombak Station, Selangor
3 Serendah Cargo Hub Bandar Serendah Station, Selangor
4 *Potential Pasir Puteh Logistic Hub Pasir Puteh Station, Kelantan
5 *Potential Dungun or Terengganu Silica Valley Dungun Station, Terengganu
Logistic Hub
6 *Potential Maran Logistic Hub Maran Station, Pahang
7 *Potential Bentong Logistic Hub Bentong Station, Pahang
(Warehouse and storage, collection and
aggregation center, distribution and packaging
center)
8 *Potential Jalan Kastam Logistic Hub Jalan Kastam Station, Selangor

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Table 7.2: Industrial Parks in Malaysia
No. Logistics Hubs Location

1 Tok Bali Industrial Park (TBIP) Pasir Puteh Station, Kelantan
2 Santong & Batu 7 Industrial Park
Dungun Station, Terengganu
3 Kertih Terengganu Industrial Park
4 Kertih Biopolymer Park Kemasik Station Spurline, Terengganu
5 Kemaman Heavy Industrial Park (KHIP) Chukai Station, Terengganu
6 MCKIP3
7 Malaysia China Kuantan International Logistic Park Kuantan Port City Station, Pahang
(MCKILP)
8 Pahang Technology Park (PTP)
Paya Besar Station, Pahang
9 Gambang Halal Park (GHP)
10 Bentong Industrial Area Bentong Station, Pahang
11 UMW High Value Industrial Park Serendah Baru Station, Selangor
12 *Potential Puncak Alam Industrial Park Puncak Alam Station, Selangor
13 *Potential Kapar Industrial Park
14 *Potential Klang Industrial Park Jalan Kastam Station, Selangor
15 *Potential Pulau Indah Industrial Park
Source: MIDA
The action plan will be led by MITI in in States, to encourage vertical integration
collaboration with key stakeholders such as KE, that complements each other;
State Government, economic corridor, MIDA • Engage State Governments to ensure
and sub-national IPAs. The following activities synergy between State’s growth plan with
will be conducted: national plan; and
• Integrate potential investments to the
• Develop recalibration plan of existing existing clusters.
clusters to identify untapped opportunities
ACTION PLAN Align industrial development plan between Federal and

4.3.2 States
The Government underscores the importance insufficiency can be addressed by exploring RE

to enhance industrialisation development in options.
States and consistently engages with State
Governments to ensure that the strategies Sarawak is aiming to become a leader in
are aligned. This action plan will leverage local hydrogen economy in Malaysia, with plans
strengths and capabilities to unlock potential to begin large-scale commercial production
economic growth. With that, the Government and export of hydrogen by 2027. The
intends to improve the investment ecosystem Government will work closely with Sarawak
and attract new investors directed at to upscale the production capacity to address
improving industrial distribution for balanced domestic demands and improve access to the
development. international market.
The rich natural resources in Sabah including As outlined in the Perlis Strategic Development
oil and gas, timber, minerals and palm oil Plan 2012-2030, agriculture (food processing),
provide opportunities to drive growth in biotechnology, RE and mining sectors are
downstream manufacturing. Opportunities the key focus areas of Perlis’ manufacturing
lie in downstream activities of these valuable industry. The Government will coordinate
resources instead of exporting them in raw with the state to further develop these areas,
form. On top of that, Sabah’s current energy especially for the RE sector, which have the

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potential to benefit from the solar technology • Identify potential growth areas in the
companies in neighbouring Kedah. States through regular engagement with
the State Governments and sub-national
The action plan will be led by MITI in IPAs; and
collaboration with key stakeholders such as • Provide support to State Governments
MIDA, State Government, sub-national IPAs in the regional growth, among others, in
and developers. The following activities will be the areas of infrastructure, investment
conducted: opportunities and talent development.
Empower Bumiputera participation and create

STRATEGY 4.4 inclusive workforce
Empowering Bumiputera participation and creating an inclusive workforce lie in the objective
of reducing disparities, embracing diversity, overcoming systemic barriers and promoting equal
opportunities. The NIMP 2030 requires collaborative efforts to create a supportive and empowering
ecosystem for workforce participation.
ACTION PLAN Uplift capabilities of Bumiputera companies in

4.4.1 manufacturing via Tindakan Pembangunan
Bumiputera 2030
Bumiputera development agenda continues to be one of the national priorities with the NIMP 2030
encouraging balanced and inclusive participation, including Bumiputera companies. TERAJU
has launched their Tindakan Pembangunan Bumiputera (TPB) 2030 in 2021, which outlines key
priority focus for Bumiputera manufacturers. The NIMP 2030 is aligned to the TPB 2030 and aims
to empower Bumiputera companies in advancing economic complexity, increasing digitalisation,
pushing for decarbonisation and ensuring economic security. There are 10 programmes outlined
under TPB 2030 to support Bumiputera companies:
Figure 7.7: NIMP 2030 Incorporated Bumiputera Programme

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Apart from that, the Government is committed to empower Bumiputera women in employment
and leadership position. As of 2022, Bumiputera women workforce participation rate is recorded
at 52.6 per cent54. MITI will be working closely with TERAJU and Bumiputera communities to
support women to return to workforce and uplift their well-being.
• Identify Bumiputera programme that require intervention to enhance the growth of

Bumiputera communities;
• Create linkage between Bumiputera communities, including women and youths, to existing
programmes under the NIMP 2030, which are:
• Talent development programme; and
• Market access.
• Create linkage between Bumiputera communities to economic opportunities e.g. halal
industry.
ACTION PLAN Develop programme to increase women participation in

4.4.2 high-skilled manufacturing employment
Malaysia is experiencing low female labour force participation despite the dominating education
enrolment. This can be attributed to various factors including family responsibilities and workplace
inequalities. Occupational concentration in certain sectors further misallocates human capital
resources especially in the manufacturing industry.
To address the challenges, the Government will focus on these areas:
• Strategic collaboration with the private sector to empower women through nationwide
programmes, providing resources, training and career advancement opportunities;
• Implementing flexible working arrangements to support women in balancing family and
professional commitments, including flexible working hours and hybrid work models; and
• Creating a conducive working environment by incentivising childcare and elderly care
support, ensuring safety protocols and providing resources for mental health support.
The action plan will be led by MOHR in collaboration with MITI, Ministry of Women, Family and
Community Development (KPWKM) and TalentCorp. The following activities will be conducted:
• Strengthen existing policy to close the gender gap including protection and benefits for
women in the workforce;
• Provide access to affordable and easily available childcare support and care centres; and
• Provide upskilling or reskilling programmes for women who have taken a break and returning
to the workforce.

8
ENABLERS:
ADDRESSING SYSTEMIC AND
INSTITUTIONAL CHALLENGES
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132 Master Plan 2030 ENABLERS: ADDRESSING SYSTEMIC AND INSTITUTIONAL CHALLENGES
Malaysia has the strength and potential to capture the opportunities from emerging trends;
geopolitical shifts towards economy security, digitalisation and compliance with ESG requirements.
However, there are several challenges that remain inherent and have limited the potential of the
manufacturing sector in the past, as highlighted in Section 2.
The Enablers aim to drive systemic and institutional reforms through:
• Mobilising a comprehensive financing ecosystem to support industry development;

• Fostering and attracting the right talent to support high value-added activities;
• Establishing best-in-class investor journey to provide seamless investor experience in Malaysia;
and
• Introducing a whole-of-nation governance to rally the industry and implement the NIMP 2030.
By addressing the Enablers, the expected outcomes are:
• Cohesive ecosystem
The Enablers will create a supportive, synergistic and collaborative environment, where the
industry as a whole can collectively address challenges, seize opportunities and achieve the
shared outcomes of the NIMP 2030; and
• Resource optimisation
By leveraging synergies, sharing resources and pooling efforts, it ensures efficient resource
allocation and maximises the collective impact of the ecosystem.
There are four Strategies and 19 Action Plans to be carried out to achieve the Enablers, as depicted
below.
Figure 8.1: Enablers
ENABLERS
E.1 Mobilise financing ecosystem E.3 Establish best-in-class investor journey for
E.1.1 Introduce NIMP Industrial Development ease of doing business
Fund and NIMP Strategic Co-Investment E.3.1 Establish a unified investment strategy
Fund and align investment evaluation to new
E.1.2 Boost financing for digitalisation and parameters under NIA
decarbonisation transition E.3.2 Harmonise and streamline functions and
E.1.3 Establish green sukuk to facilitate transition KPIs across IPA landscape
E.1.4 Establish supply chain financing for SMEs E.3.3 Review and design competitive, agile and
E.1.5 Increase utilisation of the capital market relevant incentives
E.1.6 Expand the imSME platform to show E.3.4 Improve One-Stop Portal for seamless
all available funding options including investor experience
government funding and capital market
E.1.7 Review government funding for
consolidation
E.2 Foster talent development and attraction

E.2.1 Leverage mynext and MYFutureJobs for
strategic workforce planning to address E.4 Introduce whole-of-nation governance
long-term demand-supply requirement framework
E.2.2 Introduce progressive wage system policy E.4.1 Establish public-private collaborative
E.2.3 Improve policy to enable fast and hassle- councils
free access to high-skilled foreign talents E.4.2 Set up NIMP 2030 Delivery Management
E.2.4 Expand TVET programmes for high-skilled Unit
jobs in critical sectors E.4.3 Develop NIMP 2030 dashboard system
E.2.5 Raise profile of high-tech manufacturing
career to attract interest in STEM subjects

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ENABLERS: ADDRESSING SYSTEMIC AND INSTITUTIONAL CHALLENGES Master Plan 2030 133
ENABLER 1 Mobilise financing ecosystem
The Missions and Enablers require significant Mission 2:

investments to support the industrial
development through the following areas: • Digital adoption for 3,000 smart factories;
• Solution providers development;
• Ensure coordination of large funding for • Training for digital adoption (including civil
the industry to expand into high value- servants); and
added activities; • National digital platform for manufacturing
• Increase accessibility to funds for Malaysian sector.
companies, including SMEs (e.g. R&D,
product and services development, Mission 3:
training, technology and sustainability
adoption); and • Adoption of sustainable practices to achieve
• Expand financing options to support Malaysia’s national commitment;
national plans and initiatives. • iESG transition programme;
• New growth opportunities for sustainability,
The NIMP 2030 will mobilise various types of e.g.:
financing, from the financial institutions to • Locally-manufactured EV;
the capital market, supported by government • CCUS sites; and
funding in strategic areas. • Renewable Energy.
• Transformation towards eco-industrial
The funding will be required based on the parks.
following components:
Mission 4:
Mission 1:
• Supply chain resilience, especially among
• Supporting the industrial upgrading to SMEs and trade facilitation programmes;
near-by adjacencies to increase economic • State industrial development programmes;
complexity through IC design, wafer • Women workforce participation
fabrication, E&E embedded system, programmes; and
specialty chemicals, advanced materials, • Bumiputera development programmes
aerospace, and pharmaceutical and (under TERAJU’s funding).
medical devices manufacturing;
• SME development (including capacity or
capability development and value chain
Enablers:
integration);
• Talent development;
• Supporting the financing of public-private
• Streamline of IPA landscape;
partnership in undertaking research,
• Investor One-Stop Portal; and
development, commercialisation and
• The NIMP 2030 dashboard.
innovation by identifying the right financial
modalities and risk-reward sharing
To achieve this, seven Action Plans have been
mechanisms; and
formulated:
• Export programmes.

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ACTION PLAN Introduce NIMP Industrial Development Fund and NIMP

E.1.1 Strategic Co-Investment Fund
The NIMP 2030 will introduce two funds to support the Strategies, Action Plans and MBPs across
the four Missions and Enablers:
The NIMP 2030 Industrial Development Fund (“NIDF”)
The NIDF will be funded by the Government to enhance the capability of Malaysian companies,
including SMEs, and assist them to participate in the global value chain. This matching fund focuses
on the overall industrial development for the manufacturing and related services, covering:
• Research, development, commercialisation and innovation;

• Technology adoption;
• Licensing or purchase of new or high technology;
• Talent development or capacity building;
• International standards or certification;
• Infrastructure development and upgrading – eco-industrial estates or parks; and
• Industrial cluster development for regional development.
The NIDF will be utilised for:
• Direct funding for the industrial development programmes;

• Provision of matching grants for Malaysian companies including SMEs; and
• Providing partial support to reduce the cost of financing.
Box Article 8.1: Funding for Malaysian companies including SMEs to Support MBPs
and for Their Own Tech Up and Supply Chain Resilience

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The NIMP 2030 Strategic Co-Investment Fund (“NIMP 2030 CoSIF”)
The NIMP 2030 CoSIF will be a co-investment fund, that supports strategic and high-impact MBPs
to spur Malaysia’s economic growth, by crowding private sector financing. This public and private
funding models will contribute to the following:
• Increase the pool of capital to support the MBPs; and

• Reduce the risk profile for investors and increase attractiveness of projects to raise capital in
the equity and bond markets, as well as leverage alternative financing.
While nine MBPs have currently been identified under the NIMP 2030, other strategic projects
which align to the Missions of the NIMP 2030 in achieving Malaysia’s industrial objectives may
subsequently be identified as MBPs.
Box Article 8.2: Funding Options for MBPs Requiring Large Investments
This action plan will be led by MITI and supported by MOF and KE. The following activities will be
conducted:
• The funds will be launched from 2024 onwards, with an overarching structured governance
together with MOF and KE, on the fronts of:
• Funding mechanism for the co-investment funds, including considering the structure of
co-investment funds like the Malaysia Co-Investment Fund (MyCIF);
• Allocation of the strategic funds;
• Design structures to support the evaluation of eligible high impact projects; and
• Monitoring of performance and evaluation of outcomes.
• The Government will engage the public and private players to explore investment opportunities
and participation in the co-investment fund. This includes the GLICs, other international and
institutional investors and state governments.

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ACTION PLAN Boost financing for digitalisation and decarbonisation

E.1.2 transition
There are various financing options available for SMEs to support their digitalisation and
sustainable transition towards a low-carbon economy. These include:
• BNM High Tech and Green Facility, RM1.1 billion allocation (available until full utilisation);
• BNM SME Automation and Digitalisation Facility, RM1.5 billion allocation (available until full
utilisation);
• BNM Low Carbon Transition Facility, RM1 billion allocation on matching basis (available from
February 2022 until full utilisation); and
• Funds from financing institutions which have been allocated for transition financing in their
sustainability agenda.
To increase the take-up rate of financing by SMEs, the Government will encourage the banks to
provide financing in technology and sustainability areas by:
• Coordinating funding between the manufacturing players, such as MNCs, LLCs, SMEs and
financial institution through programmes such as supply chain and vendor development
programmes led by MIDA;
• Working closely with the banks to identify and finance bankable projects and initiatives in
digitalisation and decarbonisation transition;
• Facilitating to strengthen the banks’ capabilities in evaluating and assessing technological
and innovative projects. The Government will explore the potential to leverage the Readiness
Assessment from the Technology Adoption Programme and BNM’s TechUP and GreenUP
initiatives for preliminary view of applicants’ risk level;
• Collaborating with international financial institutions or multilateral development banks for
blended financing and expertise on appropriate financial structures and risk sharing and risk
mitigation mechanisms; and
• Collaborating with other countries with experience and expertise to develop innovative
financial instruments and risk sharing or risk mitigation mechanisms suited to the needs of
the green transition in Malaysia.

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Box Article 8.3:

The European Green Deal
Source: The European Commission

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ACTION PLAN
Establish green sukuk to facilitate transition
E.1.3
For further support of the decarbonisation transition, Malaysia will be exploring the issuance of a
Sustainable Development Goal (SDG) Bond, which can be in the form of a Green, Sustainability or
Sustainability-Linked bond or sukuk.
These bonds and sukuk are key transition finance instruments as they channel financing to green
or sustainable activities or link sustainability targets to financing. Such green bond issuance will
serve as reference for the corporate green bond market, deepen market liquidity for green bonds
and attract green issuers, capital and investors. This avenue will create greater availability of funds
to support the SMEs involved in high emission intensity industries to decarbonise their operations.
This approach involves the issuance of Sustainable Malaysian Government Securities (MGS) or
Government Investment Issue (GII) through BNM as part of the annual auction calendar. It will be
backed by the Green Assets under the existing Government of Malaysia’s SDG Sukuk framework.
Foreign and domestic investors can subscribe to the Sustainable MGS or GII. The Government will
manage the invested funds and channel through the local banks to provide transition financing
to the SMEs. A KPI-linked model for the transition financing can be considered, where SMEs will
be given preferential rates as they meet the decarbonisation criteria such as reduced carbon
emissions, increased RE utilisation or deployment of green tech or solutions.
Figure 8.2: Green, Sustainability and Sustainability-linked Sukuk to Tie to

Decarbonisation Targets by SMEs
This deepening of capital market to support Malaysia’s ESG transition can be instrumental in:
• Accelerating the greening of value chain;

• Supporting business with ESG principles to thrive and create high-value jobs;
• Attract diversified FDI investments; and
• Enhance Malaysia’s reputation as a pre-eminent ESG market.

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ACTION PLAN
Establish supply chain financing for SMEs
E.1.4
As part of the efforts to support the SMEs ecosystem, Malaysia is encouraging more supply chain
financing facilities to be made available. Supply chain financing is a financial arrangement where
the banks will provide a facility to anchor buyers, especially MNCs or LLCs, to provide financing
to their SME suppliers in their supply chain. It facilitates the smooth flow of funds within a supply
chain network and allows SMEs to have healthy cash flow. Sustainable supply chain financing
can also be considered to help accelerate decarbonisation efforts at the supply chain level and
support disclosure initiative.
The Banks offer early payment to the SMEs and their vendors or suppliers on behalf of the anchor
buyer and the anchor buyer repays the banks on a later agreed-upon date. Supply chain financing
benefits the entire supply chain ecosystem where:
• SMEs and their vendors or suppliers have access to funds faster, improving cash flow;
• Buyers can optimise their working capital by extending the payment terms while still
supporting their suppliers; and
• Banks will earn a fee in providing the supply chain financing service.
Figure 8.3: Supply Chain Financing for SMEs
RM
Agreement
Early settlement
Settlement SMEs and

Anchor Buyer Banks
their vendors
This action plan will be led by BNM and the banks. The following activities will be conducted:
• Engage banks to encourage them to offer supply chain financing facilities;

• Encourage efforts by corporates to collaborate with the financial sector to promote the design
and offering of supply chain finance solutions to their vendors; and
• Educate industry players on the availability and benefits of the supply chain financing facilities.
Apart from that, supply chain financing facilities can be offered by P2P platforms to assist SME
suppliers optimise their working capital and cash flows.

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ACTION PLAN
Increase utilisation of the capital market
E.1.5
The capital market provides a multi-layered market ecosystem with multi-product solutions for
efficient capital allocation and fund intermediation. Malaysia has a well-established capital market
with proven financing options, including digital platforms, to cater for the different financing
needs of companies across their growth cycles.
Figure 8.4: Funding Stages of Companies and Capital Market Solutions
Pre-
Early Stage Growth Stage Late Stage Matured
commercialisation
LEAP Market ACE Market Main Market
Private Placement Bonds/ Sukuk
Angel Investment Venture Capital Private Equity
Equity Crowdfunding (ECF)
Initial Exchange Offerings (IEO)
Peer-to-peer (P2P) Financing
Source: Securities Commission Malaysia
The range of capital market financing options to support businesses at various stages of growth
are as follows:
• Bonds and Sukuk – for businesses or projects that have large financing requirements;
• Equity Market (Main Market, ACE Market and LEAP Market) – for mature, late-stage and even
growth companies;
• Equity Crowdfunding (ECF) digital platforms – for smaller companies and start-ups;
• P2P Financing digital platforms – for growth to late-stage companies to raise funds for
business or working capital purposes; and
• Venture Capital and Private Equity (VC and PE) – for companies and start-ups at early to
growth stages, as well as late-stage companies (involving PE investment).

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The industry can gain several benefits from leveraging the capital market:
• Ability to access wider range of capital and funding sources, including investors with specific
mandates to invest in listed stocks with better liquidity;
• Enhanced profiling, branding and increased visibility will enhance attractiveness to domestic
and international investors;
• Better access to both equity and bond markets will enable companies to optimise their capital
structure and valuation. It enhances merger and acquisition opportunities;
• With transparent reporting requirements as a listed entity, companies are in a better position
to obtain bank borrowings. Listed entities can utilise shares for acquisitions and share
transactions will not be subject to capital gains tax;
• Flexible terms and structure – flexible repayment structures, collateral requirements and
equity ownership. This can be beneficial depending on the growth stages of the company;
and
• Advisory from specialised experts – often involves partnerships with private investors such as
VC or PE that have industry knowledge and expertise. Companies can gain insights, guidance
and mentorship to grow their business.
There is much more opportunity for companies, particularly SMEs, to increase their utilisation of
capital market financing in Malaysia. Currently, SME fundraising from the capital market accounts
for less than 5 per cent.
The Securities Commission Malaysia (SC), capital market intermediaries and MITI will collaborate
to increase the utilisation of the capital market by:
• Guiding industry players on how to access and utilise the capital market. This will be done
by increasing awareness of the capital market funding channels available, ranging from the
equity market, bond market, Recognised Market Operators (e.g. ECF, P2P) to the private
market (VC or PE);
• Providing transparent frameworks, processes and a supportive market-based financing
ecosystem to build industry players’ confidence to utilise the capital market;
• Facilitating the provision and accessibility of lower cost financing options for issuers from the
industry;
• Enhancing the efficiency of the fund intermediation process to facilitate sizeable funds at
scale to finance the industry;
• Promoting the capital market as an attractive investment option for foreign investors, as well
as domestic institutional and individual investors;
• Uplifting market capabilities and services, including debt and equity analysis, to enhance the
flow of information to investors; and
• Improving Malaysia’s attractiveness through easing of tax rules and a facilitative regulatory
process, including for the VC and PE ecosystem, in consultation with MOF and LHDN.

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Box Article 8.4:

Market-based financing avenues in Malaysia
Capital market presents financing avenues (including VC and PE) for firms that
require capital for digitalisation and decarbonisation
Bonds and Sukuk Main Market

• Average amount raised: • Average amount raised:
RM300 million RM400 – 500 million
• Highest amount raised: • Highest amount raised:
RM30.6 billion RM12.8 billion
ACE Market LEAP Market

RM50 – 60 million RM3 – 5 million
RM275 million RM12.5 million
ECF P2P Financing

RM1.7 million RM70,700
RM20 million RM19.2 million
Source: Securities Commission Malaysia

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ACTION PLAN Expand the imSME platform to show all available funding
E.1.6 options including Government funding and capital market
There are multiple funding options for industry players, which include government funding and
private sector funding from banks and capital market. However, information on available funding
options is disparate causing challenges, such as:
• Low awareness of available funding options; and

• Difficulty in tracking government grant disbursements by different agencies.
In 2018, a single financing platform was launched by CGC, called the imSME which aggregates
financing information from financial institutions, agencies and alternative financiers. Expanding
the imSME platform to include Government funding will provide a comprehensive coverage of
the funding options available. The platform will provide the Government an avenue to better:
• Trace interest in the funding options;

• Coordinate campaigns to increase awareness on the funding options with low take up; and
• Track Government fund application to enable fairer access to Government funding.
Figure 8.5: CGC imSME Platform
Source: CGC

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This action plan will be led by CGC in collaboration with MOF, KE, MITI, BNM, SC and Bursa. This is
a timely national initiative for CGC because it had, in July 2022, established a wholly owned data
and fintech subsidiary, namely, CGC Digital, to:
• Develop the imSME platform with embedded finance that provides MSMEs in Malaysia with
a one-stop digital marketplace for financing and assistance to accelerate their business. CGC
Digital is taking a Mission-based, MSME-centric approach to all its development and offerings,
prioritising outcomes over outputs;
• Develop innovative digital credit guarantee and other digital credit supplementation products
and services that are essential to facilitate MSMEs in obtaining the financing that they need;
• Increase the chances of MSMEs, especially the thinner-file ones, in obtaining financing with
embedded digital credit guarantee. CGC Digital is developing algorithms and its proprietary
credit model using traditional and alternative data to advance financial inclusion among
MSMEs in Malaysia; and
• Identify and collaborate with partners to:
• Increase synergistic effects on imSME’s digital ecosystem; and
• Improve efficiency in the areas of funding and facilitating online buyer-seller marketplace
for ease of doing business along the supply chain.
The imSME platform will partner with relevant companies to provide MSMEs with better access
to the local supply chain, which can be integrated to foreign supply chain, to increase Malaysian
MSMEs’ competitiveness locally and internationally.

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Box Article 8.5:

Digital platform for SME financing (imSME)
Many Many
SMEs FIs
Benefits
+ One stop portal makes it easy for SMEs to browse and apply for
compatible financial products
+ Acts as a hub for FIs to manage financing applications

+ One stop portal can act in advisory capability to help SMEs capability
build and close gaps in financing applications
Case Study: imSME partners with 30+ organisations to help SMEs secure financing
27 financial institutions
3 capacity offering 65 unsecured SME financing/ loan
building
9 Peer-to-Peer (P2P) Platform
agencies
to help SMEs Operators offering 17 unsecured SME
secure financing/ financing/ loan
loans
3 financiers and
3 equity crowdfunding organisations
4 TO APPLY FOR A
EASY LOAN / FINANCING
STEPS Total Visitors
2.5 million
Total Registered MSMEs

72,700
Total Approved Financing
5,700 approvals
RM 589 million
Source: imSME, CGC

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ACTION PLAN
Review Government funding for consolidation
E.1.7
Multiple Government Agencies have been allocating government funding to facilitate industrial
development, aligned to their respective objectives. They include MIDA, SMECorp, SME Bank,
MIDF, MDEC, MTDC, Cradle, MAVCAP, MDV and TERAJU.
Several challenges have been identified with this current model, among others:
Table 8.1: Issues in Government Funding
No. Issues Location

1 Confusion regarding the types of funding assistance available,
documentation required, requirements, approval process, etc.
2 Multiple constraints that limit the types of companies that may
Applicants
apply for funding
3 Insufficient fund allocation that limits the number of companies
that can be assisted with government funding
4 Fragmented and duplicated funding programmes that cause
administrative burden (multiple funding programmes require
independent assessments by multiple agencies) The Government
5 The distribution of Government funding is not optimised
To address the challenges, MOF and KE together with MITI and MIDA will review government
funding for consolidation. The following activities will be conducted:
• Identify available Government funding offered by various Ministries and Agencies;

• Review the Government funding and consolidate funds for similar focus areas, where
necessary. Consolidating the funding options will allow the Government to create larger fund
size, reduce its administrative duties and monitor the use of public funds more effectively;
• Establish the governance to oversee the Government funding and conduct periodic reviews
to monitor the take-up and effectiveness of the funding; and
• Create database of industry players and their financial information to improve matchmaking
opportunities for funding and corporate deals.

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ENABLER 2 Foster talent development and attraction
In the pursuit of the Missions involving higher value-added activities, innovation and new growth
opportunities, Malaysia will require a large pool of high-skilled talent. Malaysia’s workforce boasts
high education attainment levels and proficiency in the English language. It is critical for Malaysia
to capitalise on these strengths and continue to foster the development of local talent apart from
attracting the right foreign talent to cater to the industry’s requirements.
It is important to upskill and reskill current talent and develop and guide new talent into high value
job pathways. The ambition is to elevate the skill level of all Malaysians, providing the opportunity
to command high wages. This helps strengthen Malaysia’s middle-class society.
Talent mismatch is a key challenge in Malaysia, where trainings provided are not aligned with
the industry’s requirements. Malaysia aims to close the gap, creating more relevant higher-skilled
talent.
The Government emphasises on public-private partnership model for talent development.

To achieve this, five Action Plans have been formulated:
ACTION PLAN Leverage mynext and MYFutureJobs for strategic

E.2.1 workforce planning to address long-term demand-supply
requirement
Recognising the challenge on talent mismatch, establishing a strategic workforce planning will
address the long-term talent demand-supply requirement. The strategic workforce planning
forecasts the talent-supply based on current education and training and the talent-demand
based on the industry’s requirements. This forecast model requires significant data as input.
The mynext and MYFutureJobs platforms can be leveraged to serve as the platform for the data
gathering. The data that will be gathered covers:
• Demand: skills and number of talents required from the industry players; and
• Supply: education, internships and training programmes provided by the higher learning and
TVET institutes.
The mynext and MYFutureJobs platforms will be the holistic employment platform for the nation
that serves the purpose for national workforce planning, targeting different segments of the
workforce.
MOHR and MOHE, will lead this action plan with the support of TalentCorp, PERKESO, Human
Resource Development Corporation (HRD Corp), National Employment Council (NEC), and MITI.
• Assess the talent supply from the workforce and learning institutions such as government
and private universities and colleges and TVET institutions;
• Assess the demand for talent from the industry by engaging anchor companies and
developing estimates for talent needs of the future; and
• Align courses to meet the demands of key sectors, where necessary.

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ACTION PLAN
Introduce progressive wage system policy
E.2.2
Wages play a key role in building the livelihood of the society. Malaysia has seen a shrinking
middle-class society as wages have remained stagnant over the years. It has become increasingly
difficult for Malaysia to attract and retain high-skilled talent as they move to countries that offer
more attractive wages.

Currently, Malaysia has enforced the minimum wage system, which imposes the same levels of
minimum wages for workers from all sectors. While this offers social protection, there is great
opportunity to introduce an intervention to support the wage increase in strengthening Malaysia’s
middle-class society.
The Government, with the leadership of KE, is exploring the potential to introduce a progressive
wage system (PWS) policy to increase the wages in Malaysia. With the PWS, employees are
classified into different skill level, each with a baseline wage level.
Figure 8.6: Progressive Wage System
The PWS maps out a career pathway for employees to improve skills, earn fair wages and enhance
career prospects. It incentivises employees to upskill and acquire more experience to progress to
higher levels and wages. In turn, that will lead to higher productivity for employers.
KE and MOHR will lead this action plan with the support of MITI, MOF, MPC and MIDA. The
following activities will be undertaken:
• Conduct a study on PWS by assessing its impact in benchmark countries and potential
challenges in adoption;
• Engage selected industry players to receive feedback in the short-term impact of PWS on
businesses and support required to facilitate adoption; and
• Develop a plan to implement PWS in Malaysia, including measures to facilitate adoption.

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ACTION PLAN Improve policy to enable fast and hassle-free access to

E.2.3 high-skilled foreign talents
As Malaysia moves towards higher value-added activities and build an innovation-led economy,
the industry needs highly specialised talents with niche capabilities that Malaysia may not
currently have. The Government is committed to ensure the availability of sufficient high-skilled
talent to propel the local industry. Malaysia aims to attract high-skilled foreign talent to support
the demand for talent in certain critical jobs, where the supply of local skilled talent is limited.
In line with this, TalentCorp currently provides a special visa called the Residence Pass-Talent for
eligible foreign talent, where successful applicants are given a 10-year work permit.
Malaysia will further facilitate access to high-skilled foreign talent by introducing a green lane
process for specific critical jobs to support Malaysia’s strategic industrial objectives. The Malaysia
Critical Occupation List (MyCOL) developed by MOHR and TalentCorp will be the key reference
for the critical jobs eligible for the green lane. This list will be reviewed and updated on a more
frequent basis.
Figure 8.7: Green Lane Process for Specific Critical Jobs
Assessed by
Applications with Eligibility assessed regulator/ approving Application sent to
Documentations against updated COL MYXPats Centre
agency
Green Lane
The green lane will be applicable for the highest tier of Employment Pass (EP) applications and
will include additional benefits such as shortened application process and accelerated approvals
for dependents. The introduction of this green lane will ease access to foreign high-skilled talent
and enable Malaysia to quickly attract top global talents.
MOHR and TalentCorp, will lead this action plan, with the support of Ministry of Home Affairs
(KDN), Immigration Department and MITI. The following activities will be conducted:
• Identify critical occupations for which the green lane applies;

• Enhance the current national single window for foreign talent to incorporate the green lane
application flow; and
• Implement the green lane and develop programmes to socialise the enhanced single window
for foreign talent.

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ACTION PLAN Expand TVET programmes for high-skilled jobs in critical

E.2.4 sectors
Malaysia is committed to strengthen the quality of local talent to support the industry. TVET is a
crucial pathway to provide technical education and elevate the skills level of Malaysia’s local talent
pool. TVET programmes in Malaysia are offered at certificate, diploma and degree levels. However,
the TVET take up rate has reduced by 11.6 per cent CAGR between 2018 and 2020.
The Government will work closely with the private sector to enhance the quality of the TVET
programmes. The Penang Skills Development Centre (PSDC) Model will be a benchmark, which
includes:
• Reducing skills mismatch by working closely with industry partners to identify the skill needs
of the workforce;
• Offering flexibility via a variety of class options (full-time, part-time and online courses); and
• Offering career support for job search, job placement opportunities, resume writing and
interview skills.
The National TVET Council (MTVET) will lead this action plan with the support of MOHR, MOHE,
MITI, TalentCorp and Department of Skills Development (JPK). Selected industry players will be
engaged for input to develop TVET programmes for the critical sectors and offer job placement
opportunities. The following activities will be conducted:
• Identify critical high-skilled jobs at risk of insufficient talent;

• Co-develop TVET syllabus with industry players from critical sectors; and
• Build an attractive brand for the TVET programmes by socialising the benefits in terms of
high-skilled job opportunities, wages and role in the industrial development.
ACTION PLAN Raise profile of high-tech manufacturing career to attract

E.2.5 interest in STEM subjects
Similarly, STEM education plays a critical role to advance growth in technology and innovation.
Driving economic complexity, tech up and digital innovation and decarbonisation transition are
enabled by STEM.
Malaysia targets 60 per cent STEM enrolment by 2025. However, STEM enrolment has been on
a negative trend, with a reduction of 5.5 per cent CAGR between 2018 and 2020. This can be
attributed to several negative perception of STEM:
• Difficult course and subjects;

• Adverse job prospects; and
• Low wages.
Raising the profile of high-tech manufacturing career can attract students’ interest in STEM
subjects, improving take-up. MOHE and MOE will lead this action plan, in collaboration with MITI,
TalentCorp, JPK and selected industry players. The following activities will be conducted:
• Highlight potential for high wages depending on sector, skills and qualification;
• Socialise success stories of STEM professionals;
• Socialise the role of STEM in the making of exciting everyday products e.g. drones, smartphones,
Virtual Reality and Augmented Reality headsets; and
• Boost the reputation and brand strength of local manufacturing companies as desirable
workplaces.

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Establish best-in-class investor journey for ease of

ENABLER 3 doing business
It is imperative for Malaysia to improve the ease of doing business to strengthen its position as a
competitive investment destination. Improving the ease of doing business enables Malaysia to
attract new FDIs and encourage long-term reinvestments. This strategic approach can potentially
reverse the net capital outflow from the country.
FDIs indirectly increase DDIs as MNCs based in Malaysia source products and services from
local companies. This uplifts the capacity and capabilities of local companies and contributes to
Malaysia’s strengthened participation in the global value chain.
It is crucial for Malaysia to improve the ease of doing business to ensure that the investment
projects are attracted and expeditiously implemented, leading to the realisation of benefits which
can be reaped by Malaysia’s economy such as creation of high-value jobs for Malaysians.
Among the areas which need to be addressed to improve the ease of doing business are:
• Strengthening Government synergy to simplify and speed up business processes;

• Enhancing communication of information to investors; and
• Providing improved fiscal and non-fiscal incentives.
To achieve this, four Action Plans have been formulated:
ACTION PLAN Establish a unified investment strategy and align

E.3.1 investment evaluation to new parameters under NIA
Investments have contributed significantly to Malaysia’s economic and industrial development,

particularly by spurring the creation of robust ecosystems for entrepreneurship, technology
and innovation. Over the years, Malaysia has implemented initiatives to facilitate the transfer
of knowledge and technology from foreign investments to local companies, thus building the
capabilities of the local industries.
Malaysia continues to pursue the development of its local industries in line with the shifting global
trends and evolution of technology.
The global geopolitical situation which has driven companies to adopt a “Plus One” strategy and
consider Southeast Asia as a preferred investment destination, provides Malaysia with the prime
opportunity to attract high-quality investments.
Malaysia’s industrial direction towards becoming knowledge-intensive and innovation-driven

serves as the guiding position for the Government’s investment policy decisions and initiatives.
Moving forward, the Government will strengthen its synergy across Ministries and Agencies in
driving towards the National Investment Aspirations (NIA) as the country’s unified development
goals.
Firstly, the unified investment strategy will require a legislative refresh of the Promotion of
Investment Act (PIA). The current PIA’s promoted areas are sector-centric, overlapping and limiting
for reinvestments. The PIA will shift from sector-centric approach to Mission-based approach in
line with national priorities such as RE and digital economy. Apart from that, the reinvestment
scope is targeted to expand to include more thematic opportunities, encouraging investors to
intensify reinvestments. The refresh of the PIA will be undertaken in line with the tax incentive
review undertaken by MOF.

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Secondly, the Government will review the investment evaluation criteria leveraging the cost-
benefit analysis (CBA) to align to the NIMP 2030 Goals (aligned to the National Investment
Aspiration’s pillars). This will ensure that the investments attracted into Malaysia contribute
towards achieving the desired end outcomes. Another key driver is the Government synergy
across various Ministries and Agencies in the investment process. It is important to form a holistic
view across all stakeholders to align on the national priorities. This will require for a review of the
KPIs to strengthen alignment across the Ministries and Agencies.
Figure 8.8: Parameters under NIA
The action plan will be led by MITI in collaboration with key stakeholders such as MIDA, MOF,
LHDN and KE.
ACTION PLAN Harmonise and streamline functions and KPIs across

E.3.2 IPA landscape
Malaysia has recognised the challenge in its investment promotion landscape, which comprises
over 30 IPAs, each with their own direction and potential overlapping responsibilities. Malaysia
aims to streamline the roles and responsibilities of all IPAs.
Through this:
• MIDA is mandated as the national body to centralise investment promotion and marketing;
• Project Implementation and Facilitation Office (TRACK), formerly known as Project Acceleration
and Coordination Unit (PACU), a unit under MIDA, will be empowered to accelerate investment
implementation; and
• The functions of subnational IPAs will be streamlined to support the investment ecosystem.
Apart from that, there is a need to streamline KPI across IPAs to drive synergistic value creation in
the investor journey. The National Committee on Investment (NCI) is tasked to redesign a new set
of KPIs to encourage collaboration amongst IPAs.

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Figure 8.9: Entities Identified as Carrying Investment Promotion Mandates
The action plan will be led by MITI in collaboration with key stakeholders such as MIDA and
subnational IPAs.

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ACTION PLAN Review and design competitive, agile and relevant

E.3.3 incentives
The incentive mechanism of the Government will be improved to ensure that the incentives
offered remain attractive for investors and approvals are accelerated to speed up investment
implementation. This initiative will be undertaken in line with the tax incentive review led by MOF
and entails the review of incentives to:
• Strengthen the competitiveness of the existing incentives; and

• Ensure the incentive outcomes are better aligned with national targets (NIAs).
Figure 8.10: Incentive Mechanism
Three actions will be undertaken:
• Review and design competitive, agile and relevant incentives

• Investors seek broader value propositions when making investment decisions, with non-
fiscal factors such as the business regulatory environment as well access to talent becoming
increasingly important considerations. Therefore, the Government will focus on incorporating
non-fiscal incentives, such as easing access to talent and creating simplified and expedited
business processes to facilitate project implementation. This is especially important due to
impending introduction of the Global Minimum Tax (GMT).

• Establish tiered incentive system
• A tiered incentive system acts as a funnel to prioritise national resources based on investor
contribution to the national agenda. Each tier has incremental access to more generous
benefits e.g. exemptions on import duties and income taxes, talent visa, etc.
• Establish dual incentive application pathway
• Conventional investments – Introduce self-assessment mechanism to allow incentives below

a certain value to be disbursed without requiring further approval from relevant authorities.
• Strategic investments – National Committee on Investment (NCI) to tailor the right set of
incentives that are aligned to CBA tools.

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To review incentives, four actions are required:
• Formalise feedback channels between investors and NCI;

• Review incentive monitoring to align incentives in delivering national targets;
• Establish dedicated unit to ensure the accountability of the incentive governance process;
and
• Establish regular incentive review to assess the incentive ecosystem.
The action plan will be led by MITI in collaboration with key stakeholders such as MOF, MIDA and
KE.
ACTION PLAN
Improve One-Stop Portal for seamless investor experience
E.3.4
Malaysia is committed to creating a seamless and efficient journey in doing business for investors.
Currently, throughout the investor’s journey, there are multiple touchpoints requiring the investors
to access different systems, affecting their experience.
A One-Stop Portal (OSP) will be established as a central platform for investors across the investor
journey by:
• Integrating different systems into a single interface;

• Covering end-to-end investment processes which includes, among others, set-up, taxation,
legal advisory, talent recruitment, financing, exporting and IP registration;
• Customising to the respective investors’ journey; and
• Acting as a reliable source for information and for problem resolution.
Figure 8.11: Investors’ Journey in the Manufacturing and Selected Services Sectors

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The action plan will be led by MIDA in collaboration with key stakeholders, which include but are
not limited to, MITI, MPC, SOCSO, Royal Malaysian Customs Department (RMCD), MATRADE, SSM,
LHDN, KPKT, EPF, MIDF, other financial institutions, MyIPO, State Authorities and MOF.
ENABLER 4 Introduce whole-of-nation governance framework
The success of the NIMP 2030 hinges upon an integrated whole-of-nation approach, where
Government Ministries and Agencies synergise and align towards establishing a robust ecosystem
that covers:
• High-skilled talent;
• Robust infrastructure, including industrial facilities;
• Investment facilitation;
• Financing;
• Digital connectivity;
• Balanced regional development; and
• Vibrant RDCI ecosystem.
ACTION PLAN
Establish public-private collaborative councils
E.4.1
Collaborative councils comprising stakeholders from the Federal Government, State Government
and public and private sectors will be established to ensure the timely and effective implementation
of the NIMP 2030.
The objectives of establishing the public-private collaborative council are to:
• Promote collaboration
– leverage strengths and expertise to ensure the success of the NIMP 2030;
• Foster co-ownership in the implementation of the NIMP 2030

– drive accountability and transparency; and
• Spur proactive and continuous flow of two-way feedback

– ensure alignment to Goals, effective communication and swift decision-making.

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Figure 8.12: Industry Development
This initiative will be undertaken through the collaboration of MITI along with the Federal
Government, State Governments and public or private sector players and involve the following
activities:
• Define the terms of reference (TOR) that outline the scope, objectives and guidelines for the
NIMP 2030 governance;
• Identify the stakeholders and representatives from the Federal Government, State Government
and public or private sector players to be part of the committee;
• Design the governance structure with clearly defined roles and responsibilities; and
• Determine the meeting and reporting cadence with clear agendas outlined.
ACTION PLAN
Set up NIMP 2030 Delivery Management Unit
E.4.2
MITI will establish a NIMP 2030 Delivery Management Unit (DMU) to coordinate all efforts across
stakeholders and ensure the timely implementation of the NIMP 2030.
The roles of the DMU will be to:
• Track and monitor progress of the NIMP 2030 in meeting the Goals and targets;
• Mitigate risks and resolve issues effectively and efficiently;
• Facilitate cross-collaborations between Ministries, Agencies, State Government and industry
players;
• Ensure alignment to other national policy plans;
• Develop and execute an effective communication plan; and
• Develop a digital dashboard for effective tracking and monitoring.

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Figure 8.13: NIMP 2030 Delivery Management Unit Structure
Public-Private
Governance
Outcomes
Reporting
Progress
Delivery Management Unit
(under MITI)
Implementation
Implementation Ministries
and Agencies
The setup of the NIMP 2030 DMU is critical and requires strategic planning. The following activities
will be conducted:
• Define the purpose and objectives of the DMU to ensure alignment to the NIMP 2030 Goals
and targets;
• Establish the DMU structure and role, with the right resource expertise to drive the NIMP
2030; and
• Ensure tools and platforms are available for effective project management and communication.
ACTION PLAN
Develop NIMP 2030 dashboard system
E.4.3
A single interface digital dashboard will be developed to track and monitor the progress of the
NIMP 2030. The digital dashboard will contribute to:
• Real-time visibility
– Provide real-time information allowing for proactive decision-making and timely intervention;
• Effective performance tracking

– Track and measure performance against pre-defined targets and objectives with visual
presentation to assess progress;
• Data-driven decision making

– Provide access to data that facilitates data analysis, contributing to making informed
decisions based on real-time insights; and
• Transparency and accountability

– Enhance visibility on progress and performance of the NIMP 2030 to create a sense of
ownership in ensuring the projects are executed successfully.

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Figure 8.14: NIMP 2030 Dashboard
Illustrative
This action plan will be led by MITI and supported by the relevant stakeholders including the
Federal Government, State Government and industry players. The following activities will be
conducted:
• Clearly define the metrics and parameters to measure the targets and progress of the NIMP
2030;
• Identify data sources from the relevant Ministries and Agencies, State Government, as well as
industry players to track the implementation;
• Develop the dashboard considering the following:
• User-friendly interface and visualisation for ease of data analysis;
• Back-end infrastructure to collect data from various sources, process and store data from
various Ministries and Agencies; and
• Security and privacy measures to safeguard data and information from the dashboard.
• Deploy and maintain the dashboard – the deployment will include communication with all
relevant stakeholders on how to leverage the dashboard.

9
SMALL AND MEDIUM ENTERPRISES (SME)
INDUSTRIALISATION
New Industrial
162 Master Plan 2030 SMALL AND MEDIUM ENTERPRISES (SME) INDUSTRIALISATION
OVERVIEW
Malaysia’s SMEs including micro enterprises contributor towards achieving the NIMP 2030
as seen in the past, have always played an Goals and Missions.
important role in promoting economic growth,
employment and income. SMEs in Malaysia are The economic contribution by the SMEs is,
diverse, ranging from traditional businesses however, not without challenges. There are
to growing sectors such as manufacturing, several key areas that must be addressed, such
services and technological industries. as technical skills shortage, low technology
adoption, access to financing and regulatory
SMEs form the backbone of the Malaysian compliance.
economy, creating roughly 97 per cent of
total business establishments in the country. SMEs contribute to about 38 per cent of the
They account for a substantial portion of total GDP in Malaysia and 8.5 per cent of SMEs
employment (circa 48 per cent) in Malaysia55. participate in the manufacturing industry.
Labour productivity rate of SMEs is 20 per cent
In the NIMP 2030, SMEs have a significant lower than the national average and this is
role, acting as key suppliers of local content, largely due to the size of SMEs (78 per cent of
providing value chain and export support and total Malaysian MSMEs are classified as micro
contributing to overall regional development. enterprises)56.
These position them as crucial economic
ROLE OF SME IN THE NIMP 2030
Malaysian SMEs will play an integral role in Tech up for a digitally vibrant nation
fulfilling the Missions and Goals set in the NIMP
2030. SMEs in Malaysia are poised to adopt
digitalisation to improve labour productivity.
Advance economic complexity There will be opportunities to develop
innovative digital solutions that are scalable
SMEs form a crucial part in the value chain and agile to support the NIMP 2030’s mission
of larger industries. They support the larger to transform Malaysia into a digitally-driven
corporations by acting as suppliers and nation.
subcontractors, providing components, raw
materials and specialised services. The NIMP 2030 will enhance technology
adoption programmes for manufacturing SMEs
SMEs are a source to innovation in the economy. to increase labour productivity and reduce
As the country moves towards climbing the reliance on foreign low-skilled labour. There
value chain by providing higher value-added will be programmes to develop technology
activities, SMEs are deemed to be more agile solution providers for start-ups and SMEs
and flexible to introduce new products and to complement the need for local solution
specialised services. This will springboard providers under the Technology Adoption
Malaysia towards economic growth and Programme.
diversification.
Push for Net Zero
The NIMP 2030 will provide access for SMEs to
support activities in new higher value-added Following the nation’s pledge to achieve
opportunities in manufacturing and MRS. Net Zero carbon emissions as early as 2050,
Efforts will be put in place to encourage SMEs Malaysian SMEs are given the opportunity to
to collaborate with LLCs and MNCs to deliver contribute towards the country’s sustainability
solutions at scale, addressing any resource goals and in adopting ESG principles. The
limitations faced and bridging any technical opportunity will allow SMEs to become early
gaps that may arise. adopters in areas such as RE, energy efficient
solutions, eco-friendly manufacturing and
green technologies.

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SMALL AND MEDIUM ENTERPRISES (SME) INDUSTRIALISATION Master Plan 2030 163
To support this adoption, the NIMP 2030 can play a crucial role by providing policy frameworks,
incentives as well as funding avenues specifically tailored for SMEs.
Safeguard economic security and inclusivity
SMEs play a critical role to ensure economic security and inclusivity. SMEs contribute to job
creation, thus providing employment opportunities. Their close connection to surrounding
communities fosters localised economic development. SMEs that are involved in higher value
manufacturing and services draw higher demand in salary.
Businesses that are established in rural or less developed areas stimulate economic growth in
those areas. The NIMP 2030 provides access to more opportunities for local production from the
expansion to higher value-added activities to the integration into the larger supply chain.
The NIMP 2030 looks to ensure Malaysian businesses, particularly SMEs, are resilient to supply
chain disruptions and external economic shocks to ensure long-term sustainability.
KEY SUCCESS FACTORS
The success of Malaysian SMEs in the manufacturing and MRS sectors rely on several key factors:
Skilled workforce and nurturing talent
SMEs attract, nurture and retain talents to be equipped with required technical expertise for
the businesses. Continuous training and development programmes are vital to enhance the
capabilities of employees and ensure they stay relevant to the industry’s advancements.
Technological adoption and digitalisation
Embracing technology and digital tools can significantly enhance SMEs’ competitiveness. This
includes implementing productivity-enhancing software, exploring automation opportunities
and embracing Industry 4.0 technologies, to improve operational efficiency, support innovation
and enable SMEs to stay ahead in a digital-driven economy.
Networking and collaboration
By building strategic partnerships with suppliers, distributors and industry associations, SMEs
can access new markets, share resources and leverage each other’s strengths. Collaborative
initiatives and knowledge sharing can foster innovation, enhance market presence and open
doors to business opportunities.
Access to financing
Adequate financial support is essential to invest in equipment, technology upgrades and working
capital. Access to various funding options, from capital market investments, financial institutions
and government support programmes tailored to SMEs will enable SMEs to seize growth
opportunities, expand their operations and stay competitive in the manufacturing and services
sector.
By focusing on these key success factors, the Malaysian manufacturing and MRS SMEs can position
themselves for growth, innovation and long-term success. These factors, when combined with
effective management, enable SMEs to thrive and contribute to the overall economic landscape
of Malaysia.

10
IMPLEMENTATION – WHOLE-OF-NATION
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166 Master Plan 2030 IMPLEMENTATION – WHOLE-OF-NATION
Implementation is crucial to convert the NIMP 2030 into tangible actions and measurable
outcomes. The NIMP 2030 adopts a whole-of-nation approach that involves both public and
private to work collaboratively to achieve the Vision and Goals. This inclusive approach promotes
visibility and transparency throughout the implementation of the NIMP 2030. All stakeholders
will have shared accountability to ensure the success of the NIMP 2030 implementation.
The whole-of-nation implementation approach has the following success factors:
Accountability and responsibilities:

Both public-private stakeholders will be directly involved in the implementation and governance
of the NIMP 2030. It is important to define the respective accountability to ensure collective
efforts are put in for the success of the NIMP 2030.
Transparency:
Periodic reporting of the NIMP 2030 progress will provide transparency in the implementation of
Strategies and Action Plans.
Linkages with multiple stakeholders:

Consistent and effective communication for sharing of information is key to ensure stakeholders
are always informed, made aware and aligned. Engagement with relevant stakeholders is crucial
to nurture collaboration across sectors and help leverage diverse expertise, perspectives and
resources, which can then lead to effective solutions.
Execution with discipline:

It is imperative for the implementation of the NIMP 2030 Action Plans to be undertaken with
strict discipline to meet the milestones set. This is to ensure timeliness of the implementation to
meet the overall Vision and Goals.
This chapter focuses on the approach of implementation, governance structure, monitoring

mechanism, communications with stakeholders and implementation phases.

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IMPLEMENTATION – WHOLE-OF-NATION Master Plan 2030 167
GOVERNANCE AND MONITORING MECHANISM
GOVERNANCE
The structure below outlines the governance for the implementation of the NIMP 2030:
Figure 10.1: Governance Structure of the NIMP 2030
• YAB Prime Minister (Chair)

1 National NIMP 2030 - YB Minister MITI - YB Minister NRECC
Council - YB Minister MOF - YB Minister KKD
- YB Minister KE - YB Minister MOHR
(Annually) - YB Minister MOSTI - YB Minister KUSKOP
• YB Minister MITI (Chair)

2 NIMP 2030 Steering • YB Minister KE
• KSP
Committee • KSU MITI
(Quarterly) • Representatives of:
- MOSTI - MOHE - BNM
- NRECC - MOE - SC
- KE - KUSKOP - Bursa
- MOF - KPDN - Selected industry reps
- KPK - KKD - MBP champions
- MOHR - State
3 Delivery • KSU MITI (Lead)

• Representatives of:
Management Unit - Mission and Enabler working groups
(DMU)
M1: Advance M2: Tech Up M3: Push M4: Enablers Working Group
Economic for A Digitally for Net Zero Safeguard (Report progress quarterly)
Complexity Vibrant Working Economic
E1: Mobilise Financing
Working Nation Group Security and Ecosystem Working
Group Working (Report Inclusivity Group
(Report Group progress Working
progress (Report quarterly) Group E2: Talent Development
quarterly) progress (Report Working Group
quarterly) progress
quarterly) E3: Investor Journey
Working Group
• MITI (Champion) • MITI (Champion) • MITI (Champion) • MITI (Champion) • MOF • MIDA • Selected
• MOSTI • KKD • NRECC • KE • KE • BNM industry
• MOH • MOHR • KE • NRECC • MITI • SC reps
• KUSKOP • MOSTI • Energy • MOHR • MOHR • Bursa
• KPDN • MDEC Commission • KPWKM • MOHE • Talent Corp
• MIDA • Talent Corp • SIRIM • State government • MOE • HRD COrp
• MATRADE • Cyber Security • Selected industry • MIDA • KDN • IPA
• NAICO Malaysia reps • MATRADE • SIRIM
• Nano Malaysia • SIRIM • MBP champions • TERAJU • MPC
• MARii • MPC • HRD Corp
• MyIPO • Selected industry • Selected industry
• SME Corp reps reps
• SIRIM • MBP champions • MBP champions
• MPC
• Selected industry
reps
• MBP champions Legends:
Ministry Association
*List is non-exhaustive, the Ministries, Government Agencies, Associations and Industry
champions are identified based on Missions and Enablers Agency Industry

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National NIMP 2030 Council
A dedicated National NIMP 2030 Council, chaired by YAB Prime Minister, will be responsible for
the successful achievement of the NIMP 2030. The council will be responsible for offering strategic
oversight throughout the implementation period of the NIMP 2030.
The council will review industrial strategies undertaken for a whole-of-Government policy
coherence, undertake tactical decisions and endorse the annual reports on implementation
progress approved by the NIMP 2030 Steering Committee prior to disclosure to the public. This
includes a mid-term review report will be prepared by the NIMP 2030 Steering Committee by the
end of Phase 1 (2026).
NIMP 2030 Steering Committee
Participation of private sectors in the governance structure is essential to ensure close collaboration
between the industry players and the Government. As such, the NIMP 2030 Steering Committee,
chaired by YB Minister of MITI, will be established with permanent members of KE, MOSTI, Ketua
Setiausaha Perbendaharaan (KSP), KSU MITI and two selected industry representatives. There
will be other representatives on invitation basis.
The key responsibilities of the Steering Committee include the following:
• Provide advice and strategic direction on the industrial strategy and potential corrective
actions;
• Make decisions and endorse recommendations from DMU on policies relating to the NIMP
2030;
• Resolve strategic issues on ecosystem and funding related matters;
• Assess relevance of ‘industry deal’ proposals in delivering Missions, with the support of
technical experts;
• Approve the NIMP 2030 funding requests;
• Review NIMP 2030 progress, annual and mid-term review reports;
• Facilitate independent, expert evaluation of economic outcomes by the industrial strategies
and policies and MBP deliverables – including by independent advisory groups for timely
reviews of success metrics; and
• Facilitate collaboration across Ministries, States, Agencies and private industry players.
Delivery Management Unit (DMU)
The DMU will drive the implementation of the NIMP 2030 via the five Working Groups. As the
Secretariat to the NIMP 2030 Steering Committee led by KSU MITI, the DMU will be monitoring all
the progress of the NIMP 2030 delivery.
Key responsibilities of DMU are as follows:
• Track and monitor progress of Mission-based Strategies, Action Plans and Projects in delivering
the NIMP 2030 Goals and targets;
• Facilitate to resolve and formulate recommendations for strategic and operational issues;
• Manage the NIMP 2030 funding related matters;
• Manage the Working Groups to ensure implementation timeliness;
• Manage the communication plan and implementation;
• Manage, track and report on utilisation of NIMP 2030 funds; and
• Prepare the annual report for the NIMP 2030.
Working Groups
The Working Groups will be responsible to implement the respective Strategies and Action Plans.
Each Working Groups will be chaired by identified champions.

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The Working Group’s key responsibilities are as follows:
• Manage the implementation of the Strategies and Action Plans to achieve required milestones
and deliverables;
• Resolve operational issues;
• Assess and evaluate the NIMP 2030 fund request; and
• Support DMU in preparing the progress report of the NIMP 2030.
MONITORING MECHANISM
The DMU will measure the performance in terms of timeliness and effectiveness of implementation.
It will establish a dashboard to monitor achievements of the Targets as well as the progress of
implementation. The dashboard will provide visibility on insights to assist in decision making. The
Targets will require more granular data to evaluate the achievements. The DMU will work closely
with DOSM to obtain the NIMP 2030 requirements to track along with collaboration with the
different Ministries, Agencies and industry players.
Annual reports will be published periodically on the progress thus far to ensure the implementation
is in line with the Vision and Goals and timeliness of the implementation against the planned
timeline.
Mid-term review will be conducted and report will be generated and published on the challenges
identified throughout the implementation in the first phase along with proposed potential
mediation. Alignment will be made to ensure the implementation is on track.
COMMUNICATION
As the governance shifts towards a more inclusive approach, communication has played a vital
role to ensure strategic objectives and Goals are aligned among the stakeholders. Cadence will
be set for communication among the NIMP 2030 committees upon the launch of the NIMP 2030
by the Government. This can lead to a more efficient communication and thus expedite the
implementation process.
The key components of the strategic communication plan include:
• Establish open feedback channel: Feedback channel will be set up to promote two-way
communication via receipt of feedback from public and for DMU to respond to any suggestion,
recommendation and clarification relating to the NIMP 2030. This will improve collaboration
between the Government and public via active participation from the stakeholders;
• Facilitate ‘industry deals’: Industry will be provided opportunity to submit inputs and
proposals on ‘industry deals’. There will be a governance mechanism to assess the proposals
and subsequently the Government will facilitate financing for the champions;
• Increase transparency of the NIMP 2030’s progress: Periodic reporting and disclosure on
progress of the NIMP 2030 will increase transparency of the NIMP 2030 in achieving the Goals
and targets. Such can be achieved with the publication of progress via dashboard reporting;
• Constant alignment on the policies relating to the NIMP 2030: Policies and master
plans developed by other Ministries will be aligned to ensure the implementation is in line
with the Vision and Goals of the NIMP 2030 for the benefit of the Rakyat; and
• Promote Malaysia as the preferred investment destination: Awareness will be raised
continuously to gain traction of the industry and public to support the implementation of the
NIMP 2030.
Continuous engagement with the industry players will be undertaken to obtain time-to-time
update and input from the industry. The recommendations gathered via any of the communication
channels will be considered and fit in the Action Plans, where necessary.

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PHASED APPROACH
The NIMP 2030 will be executed in two phases over the period of seven years to achieve the Vision
and Goals.
Figure 10.2: Phases of the NIMP 2030
Phase 1 – Strengthen Foundation (2023 to 2026)
The immediate priority for the next three years until the end of 2026 is to strengthen the
collaboration between the public and private sector and set the foundation for the implementation
of the NIMP 2030. The focus of Phase 1 will be to:
• Set up and institutionalise the governance: The governance structure will be formalised
and implementation processes will be defined (e.g. funding, industry collaboration and deals,
etc.);
• The NIMP 2030 Steering Committee will focus on unblocking systematic challenges
related to talent, funding and ease of doing businesses.
• The 5 Working Groups will be responsible for respective Action Plans and delivering the
respective milestones.
• Establish foundation stones for SMEs

• Manufacturing sector SMEs will be identified, qualified and onboarded to related
programmes under the NIMP 2030; and
• As nurturing the growth of SMEs requires time, it is imperative to commence involvement
of SMEs at this stage to achieve full potential by 2030.
• Set MBPs to take off: MBPs are catalysed projects that will spur the economy and provide
high impact to escalate Malaysia to high value-added activities and venture into green growth
economy. It is crucial to ensure the required ecosystem are in place for the MBPs to achieve
its success.
By the end of Phase 1, key foundation will be established. Most programmes will be deployed and
continue its implementation. Ecosystems have started taking shape and regulatory reforms have
been iterated with the industry and taken place. Most MBPs have begun implementation, while
new MBPs will be explored. Malaysia’s industries will be positioned to take the leap into Phase 2.
Mid-term review (end of 2026)
A mid-term review will be conducted by end of 2026 to review the targets and implementation
progress of the NIMP 2030. It will provide the opportunity to assess any further global trends and
recalibrate any gaps to achieve the NIMP 2030 Goals.

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Phase 2 – Sustain Growth and Resilience (2027 to 2030)
The foundation set during the first phase will create the growth momentum of the nation’s
manufacturing industry. This phase of the NIMP 2030 will focus on:
• Driving implementation at scale: Both the public-private sectors will take necessary
measures to intensify implementation to capture the growth opportunities apart from
addressing any gaps from the mid-term review findings; and
• Creating resilience: Diversify the economic base, create stronger local linkages and
strengthen global cooperation for greater economic resilience that enable sustained growth
given any economic conditions.
By the end of Phase 2, Malaysia will be home to competitive industries with high economic
complexity that create high income and skilled workforce with strong domestic ecosystem.
Malaysia will be in the forefront of new industry clusters while existing clusters will be strengthened.
This will contribute to a balanced and inclusive participation across the nation, doing so in a
sustainable manner.

11
CONCLUSION
New Industrial
174 Master Plan 2030 CONCLUSION
CONCLUSION
The NIMP 2030 is a comprehensive industrial master plan that sets a clear direction for Malaysia
over seven years from 2023 to 2030. Its successful implementation is crucial to maintain the global
competitiveness of the manufacturing industry and its related services in the country, with overall
aim to bolster the country’s GDP, create better job opportunities and increase the salary.
The NIMP 2030 underscores the significance of the whole-of-nation approach, where collaboration
and unity are emphasised, breaking down silos that may impede progress. By rallying together,
Malaysia can harness the collective strength of its public and private sectors as well as academia,
propelling Malaysia towards achieving its Goals.
The NIMP 2030 Missions prioritise inclusive growth, recognising that no single entity can single-
handedly drive this forward. Empowering local communities and supporting SMEs are essential
to ensure economic success.
By investing in human capital and promoting research and innovation, Malaysia fosters a
knowledge-driven economy that fuels sustainable growth and competitiveness on the global
stage. The implementation of the NIMP 2030 emphasises transparency, open communication
and collaborative governance.
As Malaysia rallies together, united in purpose, the NIMP 2030 Missions will pave the way for a
vibrant future that benefit the Rakyat of Malaysia, particularly by expanding Malaysia’s middle-
class society. The NIMP 2030 Missions will catalyse economic success and social well-being,
improving the quality of life of the people and ensuring a prosperous future for generations to
come.

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Master Plan 2030 175
APPENDIX I: LIST OF POLICIES AND ROADMAPS

32 current and to-be-launched policies and roadmaps were assessed to the NIMP 2030 and are
aligned across the government, which is essential for successful implementation.
No. Policy/ Roadmap Name

1 Malaysia MADANI
2 Twelfth Malaysia Plan (RMKe-12)
3 New Investment Policy 2022-2027
4 National Trade Blueprint 2021-2025
5 Industrial Master Plan 3 2006-2020
6 Industry4WRD 2025
7 MyDIGITAL Blueprint
8 Malaysia Productivity Blueprint 2020
9 E&E Roadmap 2021-2030
10 Aerospace Industry Blueprint 2030
11 National Advanced Materials Technology Roadmap 2021-2030
12 National Science, Technology and Innovation Policy 2021-2030
13 MySTIE 10-10
14 National Automotive Policy 2020
15 Jalinan Digital Negara
16 National AI Roadmap 2021-2025
17 National Energy Policy 2022-2040
18 Malaysia Renewable Energy Roadmap
19 National Mineral Industry Transformation Plan 2021-2030
20 Tindakan Pembangunan Bumiputera 2030
21 Chemical Industry Roadmap
22 National Energy Transition Roadmap
23 RMKe-12 Mid-Term Review*
24 Research, Development, Innovation & Commercialisation Ecosystem Plan*
25 National IP Policy*
26 SME Development Roadmap*
27 SME Digitalisation Roadmap*
28 Long Term Low Emission Development Strategy*
29 Nationally Determined Contributions*
30 iESG Framework*
31 Hydrogen Economy and Technology Roadmap*
32 National Mineral Policy*
*Indicates policies and roadmaps yet to be launched

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176 Master Plan 2030
APPENDIX II: GLOSSARY
Acronym Definition Acronym Definition

4IR Fourth Industrial Revolution CREST Collaborative Research in
Engineering, Science and
AANZFTA ASEAN-Australia-New Zealand Free
Technology
Trade Area
ACE Access, Certainty, Efficiency DDI Domestic Direct Investments
ACFTA ASEAN-China Free Trade Area DMU Delivery Management Unit
ADB Asian Development Bank DOE Department of Environment
AHKFTA ASEAN-Hong Kong, China Free DOSM Department of Statistics Malaysia

Trade Area DVX Indirect Value-Added
AI Artificial Intelligence E&E Electrical and Electronics
AIFTA ASEAN-India Free Trade Area EAP Economic Accelerator Projects
AJCEP ASEAN-Japan Comprehensive ECF External Crowdfunding
Economic Partnership
ECI Economic Complexity Index
AKFTA ASEAN-Korea Free Trade Area
ECRL East Coast Rail Link
ASEAN Association of Southeast Asian
Nations EMS Electronic Manufacturing Services
ATIGA ASEAN Trade in Goods Agreement EP Employment Pass
BMS Building Monitoring System EPF Employees Provident Fund
BNM Bank Negara Malaysia ESG Environment, Social and Governance
Bursa Bursa Malaysia ETS Emissions Trading System
CAGR Compound Annual Growth Rate EU European Union
CBA Cost-Benefit Analysis EV Electric Vehicle
CBAM Carbon Border Adjustment FDI Foreign Direct Investments
Mechanism
FMM Federation of Malaysian
CCaaS Carbon Capture-as-a-Service Manufacturers
CCCC China Communications FTA Free Trade Agreement
Construction Company Ltd.
FVA Foreign Value-Added
CCS Carbon Capture and Storage
G2B Government-to-Business
CCU Carbon Apture and Utilisation
G2G Government-to-Government
CCUS Carbon Capture, Utilisation and
GDP Gross Domestic Product
Storage
GERD Gross Expenditure on Research and
CGC Credit Guarantee Corporation
Development
CHIPS Act Creating Helpful Incentives to
GHG Greenhouse Gas
Produce Semiconductors Act
GHP Gambang Halal Park
CIS Commonwealth of Independent
States GII Government Investment Issue
CMM Capital Markets Malaysia GLIC Government-linked Investment
Company
CO2 Carbon Dioxide
GMT Global Minimum Tax
CoE Centre of Excellence
GNI Gross National Income
COO Certificate of Origin
GRI Global Reporting Initiative
CPTPP Comprehensive and Progressive
Agreement for Trans-Pacific GVC Global Value Chain
Partnership
HLI Higher Learning Institution

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HRD Corp Human Resource Development LEAP Leading Entrepreneur Accelerator
Corporation Platform
IC Integrated Circuit LED Light Emitting Diode
ICT Information and Communication LLC Large Local Company
Technology
M&E Machinery and Equipment
IEO Initial Exchange Offerings
MAMPU Malaysian Administrative
IF Intervention Fund Modernisation and Management
Planning Unit
IMD Institute for Management
Development MARii Malaysia Automotive, Robotics & IoT
Institute
IMF International Monetary Fund
MATRADE Malaysia External Trade
IMP3 Third Industrial Master Plan
Development Corporation
Industry4WRD National Policy on Industry 4.0
MAVCAP Malaysia Venture Capital
IOT Internet-of-Things Management Berhad
IP Intellectual Property MBP Mission-based Project
IPAs Investment Promotion Agencies MCC Microcrystalline Cellulose
IPPU Industrial Processes and Product MCCG Malaysian Code on Corporate
Use Governance
ISSB International Sustainability MCKILP Malaysia-China Kuantan
Standards Board International Logistic Park
JENDELA Jalinan Digital Negara MCKIP3 Malaysia-China Kuantan Industrial
Park
JMG Jabatan Mineral dan Geosains
MDA Medical Device Authority
JPK Department of Skills Development
MDEC Malaysia Digital Economy Malaysia
KDN Ministry of Home Affairs
MDV Malaysia Debt Ventures Berhad
KE Ministry of Economy
MGS Malaysian Government Securities
KHIP Kemaman Heavy Industrial Park
MGTC Malaysian Green Technology and
KKD Ministry of Communications and Climate Change Corporation
Digital
MIDA Malaysian Investment Development
KKR Ministry of Works Authority
KPDN Ministry of Domestic Trade and MIDF Malaysian Industrial Development
Costs of Living Finance
KPI Key Performance Indicator MIGHT Malaysian Industry-Government
KPKT Ministry of Local Government Group for High Technology
Development
MITI Ministry of Investment, Trade and
KPWKM Ministry of Women, Family and Industry
Community Development
ML Manufacturing Licence
KRI Khazanah Research Institute
MNC Multinational Corporations
KSP Ketua Setiausaha Perbendaharaan
MOF Ministry of Finance
KSU Secretary General
MoFA Ministry of Foreign Affairs
KUSKOP Ministry of Entrepreneur and
Cooperatives Development MOH Ministry of Health
LCD Liquid Crystal Display MOHE Ministry of Higher Education
LHDN Inland Revenue Board of Malaysia MOHR Ministry of Human Resources

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MOHR Ministry of Human Resources NR-REE Non-Radioactive Rare Earth
Elements
MOSTI Ministry of Science, Technology and
Innovation NTM Non-Tariff Measures
MOT Ministry of Transport OECD Organisation for Economic Co-
operation and Development
MOU Memorandum of Understanding
OSP One-Stop Portal
MPC Malaysia Productivity Corporation
P2P Peer-to-Peer
MRA Mutual Recognition Agreements
PACU Project Acceleration and
MRANTI Malaysian Research Accelerator for
Coordination Unit
Technology and Innovation
PDPA Personal Data Protection Act
MRM Malaysia Design Council
PE Private Equity
MRS Manufacturing-Related Services
PERKESO Pertubuhan Keselamatan Sosial
MSIA Malaysia Semiconductor Industry
Association PIA Promotion of Investment Act
MSME Micro, Small and Medium Enterprise PM Prime Minister
MTC Mid-Tier Company PSDC Penang Skills Development Centre
MTDC Malaysian Technology Development PTP Pahang Technology Park
Corporation
PWS Progressive Wage System
MTFTA Malaysia-Turkey Free Trade
R&D Research and Development
Agreement
RA Readiness Assessment
MTVET National TVET Council
RCEP Regional Comprehensive Economic
MyCIP Malaysia Co-Investment Fund
Partnership
MyCOL Malaysia Critical Occupation List
RDCI Research, Development,
MyIPO Intellectual Property Corporation of Commercialisation and Innovation
Malaysia
RDICE Research, Development, Innovation,
MyRER Malaysia Renewable Energy Commercialisation and Economy
Roadmap
RE Renewable Energy
NAICO National Aerospace Industry
RM Ringgit Malaysia
Corporation
RMCD Royal Malaysian Customs
NCI National Committee in Investment
Department
NDC Nationally Determined
RMKe-12 Twelfth Malaysia Plan
Contributions
ROO Rules of Origin
NEC National Employment Council
SBSR Shipbuilding and Ship Repair
NEP National Energy Policy
SC Securities Commission Malaysia
NETR National Energy Transition Roadmap
SCF Social Climate Fund
NIA National Investment Aspirations
SDG Sustainable Development Goal
NIDF NIMP 2030 Industrial Development
Fund SEB Sarawak Energy Berhad
NIMP 2030 The NIMP 2030 Strategic Co- SEDA Sustainable Energy Development
CoSIF Investment Fund Authority Malaysia
NIP New Investment Policy SEDG Simplified ESG Disclosure Guide
NRECC Ministry of Natural Resources, SESB Sabah Electricity Sdn Bhd
Environment and Climate Change
SIRIM Standard and Industrial Research
NRI National Research Institution Institute of Malaysia

New Industrial
Acronym Definition
SME Small and Medium Enterprise
SME Corp SME Corporation Malaysia
SOCSO Social Security Organisation
SOP Standard Operating Procedure
SPS Sanitary and Phytosanitary
SSM Companies Commission of Malaysia
STEM Science, Technology, Engineering
and Mathematics
TBIP Tok Bali Industrial Park
TBT Technical Barriers to Trade
TCFD Task Force on Climate Related
Financial Disclosures
The NIMP The New Industrial Master Plan 2030
2030
TIV Total Industry Volume
TNB Tenaga Nasional Berhad
TOR Terms of Reference
TPB Tindakan Pembangunan
Bumiputera
TRACK Project Implementation and
Facilitation Office
TUSAS Turkish Aerospace Industries
TVET Technical and Vocational Education
and Training
UN United Nations
UNCTAD United Nations Conference on Trade
and Development
UNFCC United Nations Framework
Convention on Climate Change
US United States
USD United States Dollar
VC Venture Capital
WIPO World Intellectual Property Right
Organisation
WWF Worldwide Fund for Nature
YAB Yang Amat Berhormat
YB Yang Berhormat
YBHG Yang Berbahagia
YBRS Yang Berusaha

New Industrial
APPENDIX III: ACKNOWLEDGEMENTS

The publication of the NIMP 2030 would not have been possible without contributions and inputs
from a range of individuals and organisations. The Ministry of Investment, Trade and Industry
would like to express its appreciation for their invaluable contribution in providing feedback and
insights.
1. YAB Dato’ Seri Anwar Ibrahim, Prime Minister of Malaysia

2. YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade
and Industry
3. YB Liew Chin Tong, Deputy Minister of Investment, Trade and Industry
4. YBhg. Datuk Seri Isham Ishak, Secretary General of Investment, Trade and Industry
5. YBhg. Datuk Hanafi Sakri, Deputy Secretary General (Industry) of Investment, Trade and
Industry
6. YBrs. Hairil Yahri Yaacob, Deputy Secretary General (Trade) of Investment, Trade and Industry
7. YBhg. Datuk Bahria Mohd Tamil, Deputy Secretary General (Investment) of Investment, Trade
and Industry
NIMP 2030 Taskforce members
1. Dr. Ong Kian Ming, former Deputy Minister of Investment, Trade and Industry
2. Dr. Yasuhiko Matsuda, Country Manager Malaysia, The World Bank
3. Fraziali Ismail, Assistant Governor, Bank Negara Malaysia (BNM)
4. YBhg. Datuk Muhamad Umar Swift, Chief Executive Officer, Bursa Malaysia
5. YBhg. Datuk Wira Arham Abdul Rahman, Chief Executive Officer, Malaysian Investment
Development Authority (MIDA)
6. YBhg. Datuk Charon Makhzani, Group Managing Director, Malaysian Industrial Development
Finance Berhad (MIDF)
7. Nicholas Khaw, Head of Research, Economist, Khazanah Nasional Berhad (KNB)
8. Yin Shao Loong, Senior Research Associate, Khazanah Research Institute (KRI)
9. Nurhisham Hussein, Chief Strategy Officer, Employees Provident Fund (EPF)
10. Professor Tan Sri Datuk Seri Noor Azlan Ghazali, Director, National University of Malaysia (UKM)
11. Professor Tham Siew Yean, Visiting Senior Fellow, ISEAS–Yusof Ishak Institute
12. Professor Dato’ Dr Rajah Rasiah, Executive Director, University of Malaya (UM)
13. Hamdan Majeed, Managing Director, Think City
Ministries
1. Ministry of Agriculture and Food Security (MAFS)

2. Ministry of Communications and Digital (KKD)
3. Ministry of Domestic Trade and Cost of Living (KPDN)
4. Ministry of Economy (KE)
5. Ministry of Entrepreneur Development and Cooperatives (KUSKOP)
6. Ministry of Finance (MOF)
7. Ministry of Health (MOH)
8. Ministry of Higher Education (MOHE)
9. Ministry of Human Resources (MOHR)
10. Ministry of Natural Resource, Environment and Climate Change (NRECC)
11. Ministry of Plantation and Commodity (KPK)
12. Ministry of Science, Technology and Innovation (MOSTI)
13. Ministry of Transport (MOT)
14. Prime Minister’s Office of Malaysia (PMO)

New Industrial
Government Agencies and Regulators Government-Linked Investment

Companies (GLICs) and Financial
1. Bank Negara Malaysia (BNM) Institutions
2. Bursa Malaysia
3. Collaborative Research in Intelligence, 1. Bank Pembangunan Malaysia Berhad
Science and Technology (CREST) (BPMB)
4. Department of Standards Malaysia (JSM) 2. Credit Guarantee Corporation (CGC)
5. Department of Statistics Malaysia (DOSM) 3. CIMB Group
6. East Coast Economic Region Development 4. Employees Provident Fund (EPF)
Council (ECERDC) 5. HSBC Malaysia
7. Export-Import Bank of Malaysia (EXIM 6. Khazanah Nasional Berhad (KNB)
Bank Malaysia) 7. Kumpulan Wang Persaraan (KWAP)
8. Halal Development Corporation (HDC) 8. Lembaga Tabung Angkatan Tentera
9. Intellectual Property Corporation of (LTAT)
Malaysia (MyIPO) 9. Lembaga Tabung Haji (LTH)
10. InvestKL 10. Malaysian Industrial Development
11. InvestPerak Finance Berhad (MIDF)
12. Jabatan Mineral dan Geosains (JMG) 11. Malayan Banking Berhad (Maybank)
13. Malaysia Automotive, Robotics, IoT (MARii) 12. Permodalan National Berhad (PNB)
14. Malaysia External Trade Development 13. Public Bank Berhad
Corporation (MATRADE) 14. RHB Group
15. Malaysia Digital Economy Corporation 15. Sumitomo Mitsui Banking Corporation
(MDEC) (SMBC)
16. Malaysia Productivity Corporation (MPC) 16. The World Bank Group
17. Malaysia Steel Institute (MSI)
18. Malaysian Communications And
Chambers and Industry Associations
Multimedia Commission (MCMC)
19. Malaysian Design Council (MRM)
1. ACCESS Blockchain Association Malaysia
20. Malaysian Foresight Institute
2. American Malaysian Chamber of
(MyForesight)
Commerce (AMCHAM)
21. Malaysian Industry-Government Group
3. Association of Accredited Advertising
for High Technology (MIGHT)
Agencies (4As Malaysia)
22. Malaysian Investment Development
4. Association of Malaysian Medical
Authority (MIDA)
Industries (AMMI)
23. Malaysian Meteorological Department
5. Association of Marine Industries of
(MMD)
Malaysia (AMIM)
24. Malaysian Railway Development
6. Board of Engineers Malaysia (BEM)
Corporation (MRDC)
7. British Malaysian Chamber of Commerce
25. Medical Device Authority (MDA)
(BMCC)
26. MIMOS Berhad
8. Chemical Industries Council Malaysia
27. Malaysia’s Digital Economy Blueprint
(CICM)
(MyDIGITAL)
9. China Enterprises Chamber of Commerce
28. NanoMalaysia Berhad
in Malaysia (CECCM)
29. National Aerospace Industry Corporation
10. Confederation of Malaysian Tobacco
(NAICO)
Manufacturers (CMTM)
30. National Chamber of Commerce and
11. Confederation of Master Brewers Berhad
Industry of Malaysia (NCCIM)
(CMBB)
31. National Measurement Council (MPK)
12. Danish Chamber of Commerce Malaysia
32. National Pharmaceutical Regulation
(DamCham Malaysia)
Agency (NPRA)
13. Dewan Perniagaan Melayu Malaysia
33. Securities Commission Malaysia (SC)
(DPMM)
34. SIRIM Berhad
14. Electric Vehicle Association Malaysia
35. SME Corporation Malaysia (SME Corp)
(EVAM)
36. Talent Corporation Malaysia Berhad
15. Environmental Management and
(TalentCorp)
Research Association of Malaysia
37. Unit Peneraju Agenda Bumiputera
(ENSEARCH)
(TERAJU)
16. Federation of Goldsmiths and Jewellers
Associations of Malaysia (FGJAM)

New Industrial
17. Federation of Malaysian Fashion, Textile 49. Malaysian Footwear Manufacturers’

and Apparel (FMFTA) Association (MFMA)
18. Federation of Malaysian Foundry and 50. Malaysian Furniture Council (MFC)
Engineering Industries Associations 51. Malaysian International Chamber of
(FOMFEIA) Commerce & Industry (MICCI)
19. Federation of Malaysian Manufacturers 52. Malaysian Institute of Accountants (MIA)
(FMM) 53. Malaysian Insulation Manufacturers
20. Federation of Malaysian Skills Group (MIMG)
Development Centre (FMSDC) 54. Malaysian Iron and Steel Industry
21. Federation of Sabah Industries (FSI) Federation (MISIF)
22. Japanese Chamber of Trade & Industry, 55. Malaysian Knitting Manufacturer’s
Malaysia (JACTIM) Association (MKMA)
23. Kuala Lumpur & Selangor Indian Chamber 56. Malaysian National Computer
of Commerce & Industry (KLSICCI) Confederation (MNCC)
24. Machinery and Engineering Industries 57. Malaysian Oil and Gas Services Council
Federation (MEIF) (MOGSC)
25. Malaysia Aerospace Industry Association 58. Malaysian Oleochemical Manufacturers
(MAIA) Group (MOMG)
26. Malaysia Association of Sustainable 59. Malaysian Organisation of Pharmaceutical
Supply Chain & Innovation (MASSCI) Industries (MOPI)
27. Malaysia Medical Device Association 60. Malaysian Palm Oil Board (MPOB)
(MMDA) 61. Malaysian Petrochemicals Association
28. Malaysia Paper Association (MaPA) (MPA)
29. Malaysia Printers Association (MPA) 62. Malaysian Photovoltaic Industry
30. Malaysia Quarries Association (MQA) Association (MPIA)
31. Malaysia Rail Industry Corporation 63. Malaysian Photovoltaic Manufacturers
(MARIC) Association (MPMA)
32. Malaysia Semiconductor Industry 64. Malaysian Plastics Manufacturers
Association (MSIA) Association (MPMA)
33. Malaysia Shipowners’ Association (MASA) 65. Malaysian Pulp and Paper Manufacturers
34. Malaysia Steel Association (MSA) Association (MPPMA)
35. Malaysian Air-Conditioning & Refrigeration 66. Malaysian Rubber Products
Association (MACRA) Manufacturers’ Association (MRPMA)
36. Malaysian American Electronics Industry 67. Malaysian Service Providers Confederation
(MAEI) (MSPC)
37. Malaysian Automotive Association (MAA) 68. Malaysian Spanish Chamber of Commerce
38. Malaysian Automotive Component Parts & Industry (MSCCI)
Association (MACPMA) 69. Malaysian Structural Steel Association
39. Malaysian Association of Convention (MSSA)
& Exhibition Organisers & Suppliers 70. Malaysian Textile and Apparel Center
(MACEOS) (MATAC)
40. Malaysian Association of Facility 71. Malaysian Timber Association (MTA)
Management (MAFM) 72. Malaysian Timber Council (MTC)
41. Malaysian Association of Pharmaceutical 73. Malaysian Wood Industries Association
Suppliers (MAPS) (MWIA)
42. Malaysian Cable Manufacturers 74. Malaysian Wood Moulding & Joinery
Association (MCMA) Council (MWMJC)
43. Malaysian Ceramic Industry Group (MCIG) 75. Malaysian-Finnish Business Council
44. Malaysian Consortium of MidTier (MFBC)
Companies (MCMTC) 76. Motorcycle & Scooter Assemblers and
45. Malaysian Corrugated Carton Distributors Association of Malaysia
Manufacturers’ Association (MACCMA) (MASAAM)
46. Malaysian Cosmetics and Toiletries 77. Muar Furniture Association (MFA)
Industry Group (MCTIG) 78. P.W. Gold & Silver Ornament Merchants
47. Malaysia Entrepreneurs’ Development Association (PWGS)
Association (PUMM) 79. Perak Footwear Industry Association
48. Malaysian Food Manufacturing Group (PFIA)
(MAFMAG) 80. Perodua Suppliers Associations (P2SA)

New Industrial
81. Persatuan Pengusaha Gaharu 8. Ann Joo Steel Berhad (AJSB)

Bumiputera Malaysia (PENGHARUM) 9. Arkitek Mustapha Kamal Sdn Bhd (AMK)
82. Pharmaceutical Association of Malaysia 10. Aspirational Breakthrough Consultancy
(PHAMA) (ABC)
83. Proton Vendors Association (PVA) 11. Asia Digital Engineering Sdn Bhd (ADE)
84. Sabah Timber Industries Association 12. Asia Food & Beverages Sdn Bhd
(STIA) 13. Associated First Rubber (M) Sdn Bhd
85. Safety Glass Processors Association of 14. Austria Technologie & Systemtechnik
Malaysia (SGPAM) Malaysia (AT&S)
86. Sarawak Manufacturers’ Association 15. Avago Technologies (Malaysia) Sdn. Bhd
(SMA) 16. AWS Technologies Sdn Bhd
87. Sarawak Timber Association (STA) 17. Bahru Stainless Sdn Bhd
88. Selangor and FT Chinese Printing 18. B.Braun Medical Supplies Sdn Bhd
Presses’ Association (SFTCPPA) 19. BrandMe Associate Sdn Bhd
89. Semiconductor Fabrication Association 20. BASF PETRONAS Chemicals Sdn Bhd
Malaysia (SFAM) 21. Boston Consulting Group (BCG)
90. Small and Medium Enterprise 22. Cochlear Malaysia Sdn Bhd
Association Malaysia (SAMENTA) 23. Composites Technology Research
91. Steel Wire Association of Malaysia Malaysia Sdn Bhd (CTRM)
(SWAM) 24. Continental Tyre Malaysia Sdn Bhd
92. Technological Association Malaysia 25. CSC Steel Sdn Bhd
(TAM) 26. Curge Advance Shd Bhd
93. The Associated Chinese Chambers of 27. Daiki Aluminium Industry (M) Sdn Bhd
Commerce (ACCCIM) 28. DASC International Sdn Bhd
94. The Association of Bumiputera 29. Deloitte Consulting Malaysia Sdn Bhd
Women in Business and Profession 30. Duopharma Biotech Berhad
(Peniagawati) 31. Duta Edge Sdn Bhd (DESB)
95. The Association of Malaysia Bumiputera 32. EB Frozen Food Sdn Bhd
Timber and Furniture Entrepreneurs 33. Ecava Sdn Bhd
(PEKA) 34. Ernst & Young Consulting Sdn Bhd (EY)
96. The Cement & Concrete Association of 35. Euto Capital Partners Ltd (HK)
Malaysia (C&CA) 36. Fraser & Neave Holdings Bhd (F&NHB)
97. The Electrical & Electronics Association 37. Falah Al Hadid (M) Sdn Bhd
of Malaysia (TEEAM) 38. Falcon Safe Marketing Sdn Bhd
98. The Federation Of Malaysia Hardware, 39. Fonterra Brands Malaysia Sdn Bhd
Machinery & Building Materials Dealers’ 40. Global Turbine Asia Sdn Bhd
Association (FMHMBA) 41. Goodyear Malaysia Berhad
99. The Malaysian Institute of Certified 42. Grid Vision T&D Sdn Bhd
Public Accountants (MICPA) 43. Haleon Malaysia
100. The Malaysian Panel-Products 44. Hartalega Holdings Berhad
Manufacturers’ Association (MPMA) 45. Hexcel Composites Sdn Bhd
101. The National Tech Association of 46. Honda Malaysia Sdn Bhd
Malaysia (PIKOM) 47. Hong Leong Yamaha Motor Sdn Bhd
102. Timber Association of Sabah (TAS) 48. Hovid Berhad
103. US-ASEAN Business Council Institute 49. Hyundai-Sime Darby Motors Sdn Bhd
(USABCI) 50. Ichia Rubber Industry (M) Sdn Bhd
51. Idaman Pharma Manufacturing Sdn Bhd
Industry Players 52. Infinecs Systems Sdn Bhd
53. Infineon Technologies (M) Sdn Bhd
1. Aerospace Composites Malaysia Sdn Bhd 54. Inmagine Group Sdn Bhd
(ACM) 55. Innotech Textile (M) Sdn Bhd
2. Aerospace Malaysia Innovation Centre 56. Intel Corporation
(AMIC) 57. Intermedex (M) Sdn Bhd
3. Ain Medicare Sdn Bhd 58. International Business Machines
4. Airlift Associates Sdn Bhd Corporation (IBM)
5. Alpine Pipe Manufacturing Sdn Bhd 59. Japan External Trade Organization
(APMSB) (JETRO)
6. AM Alloy Industries Sdn Bhd 60. Jin Huo Gold & Jewellery Industries (M)
7. AMTECH Chemical Sdn Bhd Sdn Bhd

New Industrial
61. Johnson & Johnson Sdn Bhd 114. Spirit Aerosystems Malaysia Sdn Bhd
62. Kamstrup Asia Pacific Sdn Bhd 115. Sri Majutex Sdn Bhd
63. KCK Pharmaceutical Industries Sdn 116. Sri Nona Food Industries Sdn Bhd
Bhd 117. Star Medik Sdn Bhd
64. Knight Frank Malaysia Sdn Bhd 118. Strand Aerospace Malaysia Sdn Bhd
65. Kotra Pharma (M) Sdn Bhd 119. StanleyCo Corporate Services Sdn Bhd
66. KRA Group 120. Sydney Cake House Sdn Bhd
67. Linaco Specialty Industries Sdn Bhd 121. Teksoft (SEA) Sdn Bhd
68. Linatex Rubber Products Sdn Bhd 122. Toyo Tyre Malaysia Sdn Bhd
69. Longcane Industries Sdn Bhd 123. Trinity Group
70. Maersk Malaysia 124. T7 Global Berhad
71. MAI Q Consult & Services 125. UMW Aerospace Sdn Bhd
72. Malayan Flour Mills Berhad (MFM) 126. Unex Industries Sdn Bhd
73. Malaysia Marine and Heavy Engineering 127. ViTrox Corporation Berhad (ViTrox)
Holdings Berhad (MHB) 128. WEG South East Asia Sdn Bhd
74. Malaysian Consortium of Rubber 129. Western Digital Tech and Regional
Products Sdn Bhd (MALCORP) Center (M) Sdn Bhd
75. Master Pack Group Berhad 130. ZALORA
76. Murni Allianze Consult Sdn Bhd
77. Micron Memory Malaysia Sdn Bhd Research Institutes and Higher
78. Mitsubishi Motors Malaysia Sdn Bhd Education Institutions
79. Motosikal dan Enjin Nasional Sdn Bhd
(Modenas) 1. Academy of Sciences Malaysia (ASM)
80. Monitor ERP System Sdn Bhd 2. Construction Research Institute of
81. Motorola Solutions Malaysia Malaysia (CREAM)
82. MyCreative Ventures Sdn Bhd 3. International Islamic University Malaysia
83. Mycron Steel CRC Sdn Bhd (IIUM)
84. My-Sutera Sdn Bhd 4. Khazanah Research Institute (KRI)
85. Nichias FGS Sdn Bhd 5. MARA University of Technology (UiTM)
86. Nicom Steel Centre Sdn Bhd 6. National University of Malaysia (UKM)
87. Northport (Malaysia) Bhd 7. PETRONAS University of Technology (UTP)
88. Nike Sales Malaysia Sdn Bhd 8. Putra University of Malaysia (UPM)
89. Nippon Paint (M) Sdn Bhd 9. Raffles College of Higher Education
90. OMRON Electronics Sdn Bhd 10. Sunway University
91. One Auto Worldwide (M) Sdn Bhd 11. The National Energy University (UNITEN)
92. Pahang Pharmacy Sdn Bhd 12. University of Kuala Lumpur (UniKL)
93. Petroliam Nasional Berhad (PETRONAS) 13. University of Malaya (UM)
94. PETRONAS Carbon Management 14. Universiti Malaysia Pahang (UMP)
Division
95. PETRONAS Chemicals Group Berhad
(PCG)
96. PETRONAS Chemicals Marketing
Labuan Ltd (PCML)
97. Pharmaniaga Berhad (Pharmaniaga)
98. Powerista Technologies Sdn Bhd
99. Proton Holdings Berhad
100. PS Food and Beverages Sdn Bhd
101. REDtone International Bhd
102. Ramly Food Industries Sdn Bhd
103. Rentokil Initial (M) Sdn Bhd
104. Respimedic Sdn Bhd
105. Ricky Tan & Co
106. Robolab Technology Sdn Bhd
107. Selasih Aman Sdn Bhd
108. Senior Aerospace UPECA Sdn Bhd
109. SERC Sdn Bhd
110. Shorubber (Malaysia) Sdn Bhd
111. Singularity Aerotech Asia Sdn Bhd
112. SME Aerospace Sdn Bhd
113. Southern Steel Berhad

New Industrial
APPENDIX IV: FOOTNOTES AND REFERENCES
No. Footnotes and References Page

1 Cassey Lee (2019). “Manufacturing Performance and Services Inputs: Evidence 20
from Malaysia”, ISEAS Economics Working Paper, No. 2019, No.2.
2 The most recent IMP, IMP3 spanned from 2006 to 2020. The industry’s 20
performance was measured until 2022 instead of 2020 due to the COVID-19
pandemic and associated supply chain disruptions.
3 Constant price GDP is a measure of all goods and services produced in a year, 20
adjusted for inflation and expressed in the prices of a base year. It allows for more
meaningful comparisons of GDP by considering both the quantity and value of
goods and services.
4 The implemented data is compiled based on the results from a survey 20
conducted by MIDA on the implementation status of projects. Projects that are
implemented are those that are in the production or machinery installation/
factory construction stages, which are used as a proxy measure for realised
investments. Projects can take one to two years to be implemented depending
on the project gestation period. The coverage for the survey is projects that were
approved under MIDA, which would be those under the manufacturing and
selected services sectors. Baseline 2005 figures are the total for 1996-2005 (IMP2
period) and breakdown for manufacturing and services across this period is
not available. Target 2020 figures are targets set for 2006 to 2020 (IMP3 period).
Realised 2020 figures refer to investments for IMP3 period.
5 Realised 2020 figures refers to investments for 2006 to 2020. Services realised 20
investment data is under the purview of MIDA only.
6 Realised 2022 figures refers to investments for 2006 to 2022. Services realised 20
investment data is under the purview of MIDA only.
7 The services sector’s share may be underestimated as the data only covers 21
services under the purview of MIDA.
8 World Bank (March 2022). “Strengthening Services Trade in the Malaysian 21
Economy”.
9 ECI covers two dimensions of exports, namely product diversity (number 21
of products a country can export competitively) and product complexity
(number of countries able to export each of these products competitively). See
“Complexity and Growth: Malaysia’s Position and Policy Implications” by BNM
(March 2018) for more information.
10 EPU (2014). “Complexity Analysis Study of Malaysia’s Manufacturing Industries”. 21
11 The servicification of manufacturing pertains to the increasing dependence 22
of manufacturing firms on services as intermediate inputs, and the number of
workers within manufacturing that are performing service-related activities.
Services are increasingly embedded in goods to create more value.
12 R&D investment measured in terms of Gross Expenditure on R&D (GERD) 22
increased from 2008 to 2016 but fell back to slightly less than the 2010 share in
2018.
13 World Intellectual Property Right Organisation (WIPO). 22
14 2018 is the most recent data available. 23
15 World Bank (2020). “Towards a Resilient Recovery”. Development Digest, Issue 9, 23
November 2020.
16 Defined as tertiary-educated workers in jobs that do not require tertiary 23
education (i.e. semi-skilled and low-skilled jobs).
17 According to the “STEM Education in Malaysia” report by MOHE: In 1967, Higher 24
Education Planning Committee reports recommended that the range of
students in Science or Technical stream compared to that in art stream is to be
at the proportion of 60:40, or what is called now 60:40 policy.

New Industrial
18 World Economic Forum (2020). “The Future of Jobs Report 2020”. 24

19 Domestic exports: Products manufactured in Malaysia, including imported 25
products from foreign countries that have been significantly changed or
enhanced in value domestically; Re-exports: Products of foreign origin that have
entered Malaysia but are "re-exported" in substantially the same condition as
when imported.
20 Masahiro Kawai and Kanda Naknoi (2015). “ASEAN Economic Integration through 25
Trade and Foreign Direct Investment: Long-Term Challenges”, ADBI Working
Paper Series, No. 545.
21 The bilateral agreements are with Australia, Chile, India, Japan, New Zealand, 25
Pakistan and Türkiye. The regional trade agreements are the ASEAN Trade in
Goods Agreement (ATIGA); ASEAN-China Free Trade Area (ACFTA), ASEAN-Japan
Comprehensive Economic Partnership (AJCEP), ASEAN-Korea Free Trade Area
(AKFTA), ASEAN-India Dree Trade Area (AIFTA), ASEAN-Australia-New Zealand
Free Trade Area (AANZFTA) and ASEAN-Hong Kong, China Free Trade Area
(AHKFTA); the Regional Comprehensive Economic Partnership (RCEP); and
the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP).
22 Masahiro Kawai and Kanda Naknoi (2015). “ASEAN Economic Integration through 26
Trade and Foreign Direct Investment: Long-Term Challenges”, ADBI Working
Paper Series, No. 545.
23 Choong, P W & Khalifah, N.A. & Nor, Abu & Ismail, Mohd. (2018). “Free Trade 26
Agreements and Production Sharing in Malaysian Manufacturing Industries”,
Jurnal Ekonomi Malaysia. 52. 97-111. 10.17576/JEM-2018-5203-7.
24 The Ministry of Health Malaysia is responsible for 70.4 per cent of the NTMs in 28
the country, followed by Ministry of Agriculture and Food Security (MAFS) at 12.1
per cent, Ministry of Natural Resources and Environment at 5.5 per cent, Ministry
of Plantation Industries and Commodities at 3.8 per cent, with the balance by 9
other institutions.
25 Malaysia participates in GVCs mainly through backward linkage, measured by 29
share of foreign value-added (FVA), rather than forward linkage (measured by
indirect value-added exports, or DVX). In 2019, the DVX share accounted for 29
per cent, up from 18 per cent in 1995. The share of FVA remained higher than the
DVX, at 36 per cent in 2019.
26 The statistics on this are not fully comprehensive and would not be comparable 29
to the total approved investments published in MIDA’s website which includes
investments or projects compiled from other Ministries and Agencies.
27 A country can participate in GVCs through either backward GVC participation 30
(backward linkage) as measured by the share of foreign value-added (FVA), or
forward GVC participation (forward linkage) as captured by the share of domestic
value-added incorporated in third countries’ exports (indirect value-added
exports, or DVX) in gross exports.
28 SME Corp. (2021). Economic Performance and Outlook 2021. World Bank (2022). 33
“Malaysian SME Program Efficiency Review, March 2022”.
29 ERIA (2023). “ASEAN’s Role in the Threat of Global Economic Decoupling: 34
Implications from Geographical Simulation Analysis”.
30 IMF (2023). “COVID-19 Crisis Implications for Productivity and Labour Markets in 34
Advanced Economies”. Staff Discussion Note.
31 AlphaBeta (2021). “Positioning Malaysia as a Regional Leader in the Digital 34
Economy: The Economic Opportunities of Digital Transformation and Google’s
Contribution”.
32 Reuters (2022). “Large companies' assets at growing risk of climate impact - S&P 35
Global”.
33 Bank Negara (2023). “Navigating Malaysia’s Economic Transition towards a 35
Decarbonised Future”. Economic and Monetary Review 2022.

New Industrial
34 Global Risk Insights (2015). “The Economic Impact of Climate Change in 35

Southeast Asia”.
35 Zhan, James. (2021). “GVC transformation and a new investment landscape in 36
the 2020s: Driving forces, directions, and a forward-looking research and policy
agenda”. Journal of International Business Policy. 4. 10.1057/s42214-020-00088-0
36 MATRADE (2023). “MATRADE Kicked-Off International Sourcing Programme 38
(INSP), Promoting Malaysia's Strengths & Capabilities in The Semiconductor
Industry”.
37 Malaysia Aerospace Industry Blueprint 2030 57
38 Department of Statistics Malaysia 58
39 UNCTAD (2023). “Technology Innovation Report 2023”, page 154 76
40 Gartner. “Smart Manufacturing” 79
41 Malaysian Communications and Multimedia Commission (March 2023). “Digital 81
Connectivity. Ensuring Everyone Gets Connected: A Glance at Malaysia’s Digital
Connectivity Journey”
42 Oxford Insights (2022). “Government AI Readiness Index 2022”. 85
43 United Nation Climate Change (2022). “Malaysia Fourth Biennial Update Report 96
Under the United Nations Framework Convention on Climate Change”.
44 World Economic Forum (2022). “CBAM: What you need to know about the new 98
EU decarbonization incentive”.
45 Sustainable Energy Development Authority (2021). “Malaysia Renewable Energy 101
Roadmap (MyRER)”.
46 Ministry of Economy (2023). “National Energy Transition Roadmap (NETR)”. 101
47 Sustainable Energy Development Authority (2021). “Malaysia Renewable Energy 102
Roadmap (MyRER)”.
48 xEV refers to all types of EVs (battery EV, plug-in hybrid EV, hybrid EV, fuel cell 105
EV).
49 Economic Planning Unit (2022). “National Energy Policy 2022-2040”. 105
50 SIRIM (2020). “Eco Industrial Parks (MyEIP)”. 109
51 World Economic Forum (2023), “The Global Risks Report 2023 18th Edition”. 117
52 Swiss Re (2021), “The Economics of Climate Change: Impacts for Asia”. 122
53 OECD (2018), “Climate-Resilient Infrastructure”. 123
54 Department of Statistics Malaysia (2022), “Bumiputera Statistics 2022”. 129
55 Department of Statistics Malaysia (2020). “Small and Medium Enterprises (SMEs) 162
Performance 2020”.
56 Department of Statistics Malaysia (2020). “Profile of MSMEs in 2016-2022”. 162

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KEMENTERIAN PELABURAN, PERDAGANGAN DAN INDUSTRI

Nimp 20303

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MINISTRY OF INVESTMENT,

TRADE AND INDUSTRY

Pattern (1) represents direction and efforts in strengthening

The different patterns signify Malaysia’s clear direction for the

The colour blue was selected to express the Government’s

Menara MITI, No. 7, Jalan Sultan Haji Ahmad Shah,

Tel : 603-8000 8000

© MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

All rights reserved

Foreword by Prime Minister 8

Foreword by Minister of Investment, Trade and 10

Foreword by Secretary General of Ministry of 12

Overview of the NIMP 2030 16

2 Malaysia’s Industrialisation Today 19

Past Performance and Key Challenges 20

5 Mission 2: Tech Up for a Digitally Vibrant Nation 75

6 Mission 3: Push for Net Zero 95

7 Mission 4: Safeguard Economic Security and 115

8 Enablers: Addressing Systemic and Institutional 131

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

Small and Medium Enterprises (SME) 161

10 Implementation – Whole-Of-Nation 165

Governance and Monitoring Mechanism 167

Appendix I: List of Policies and Roadmaps 175

Appendix II: Glossary 176

Appendix III: Acknowledgements 180

Appendix IV: Footnotes and References 185

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

4.11 National Trade Advocacy Campaign

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

LIST OF BOX ARTICLES

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

FOREWORD Prime Minister of Malaysia

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

The Government’s commitment to foster As we embark on this journey, Malaysia’s focus

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

FOREWORD Minister of Investment, Trade and Industry

“ We believe that the strategic

TENGKU ZAFRUL AZIZ

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

Malaysia’s manufacturing sector is a key contributor to the nation’s

While the development of Malaysia’s beneficiaries that include multinationals, SMEs

NIMP 2030’s horizontal four-mission policy and

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

Secretary General of The Ministry of

“Malaysia has distinctive value

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

Malaysia’s manufacturing sector remains a key driver of the country’s

NIMP 2030 has outlined 21 Strategies and

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

OVERVIEW OF THE NIMP 2030

PURPOSE OF THE NIMP 2030

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

SCOPE AND COVERAGE

MINISTRY OF INVESTMENT, TRADE AND INDUSTRY

Table 1.1: Sectors Covered in NIMP 2030

Sectors 6. Digital and Information and 6. Industry4WRD: National Policy on Industry