SPEECH BY

YAB DATO’ SERI ANWAR IBRAHIM

PRIME MINISTER

FOR THE LAUNCH OF THE

NEW INDUSTRIAL MASTER PLAN 2030 (NIMP 2030)

1 SEPTEMBER 2023 | 11.00 AM

PERDANA HALL, MITI TOWER

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Assalamualaikum Warahmatullahi Wabarakatuh, Good morning,
and Salam Malaysia Madani.

ْ ُ ‫ق ِﻟﯾ‬
ِ ‫ظِﮭَره ُ َﻋﻠَﻰ اﻟ ِد ّﯾِن ﻛُ ِﻠِّﮫ ۚ َوَﻛﻔَٰﻰ ِﺑﺎ ﱠ‬
* ِ ّ ‫ﺳَل َرﺳُوﻟَﮫ ُ ِﺑﺎْﻟُﮭدَٰى َوِدﯾِن اْﻟَﺣ‬
َ ‫* اﻟﱠِذي أَْر‬ِ ‫اْﻟَﺣْﻣد ُ ِ ﱠ‬
‫ﺷِﮭﯾدًا‬َ
◌َ‫ﺻْﺣِﺑِﮫ أَْﺟَﻣِﻌﯾن‬ َ ‫ﺳ ِﻠُّم َﻋﻠَﻰ َرﺳُوِﻟِﮫ اﻟََﻛِرﯾِم َوَﻋﻠَﻰ َءاِﻟِﮫ َو‬ َ ُ ‫ﺻ ِﻠّﻲ َوأ‬ َ ُ ‫َوأ‬

Salutations

YAB Dato’ Seri Dr. Ahmad Zahid Hamidi

Deputy Prime Minister

YAB Dato’ Sri Haji Fadillah Haji Yusof

Deputy Prime Minister

YB Tuan Anthony Loke Siew Fook

Minister of Transport

YB Datuk Seri Haji Mohamad Sabu

Minister of Agriculture and Food Security

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YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul
Aziz
Minister of Investment, Trade and Industry

YB Dr Zaliha Mustafa

Minister of Health

YB Liew Chin Tong

Deputy Minister of Investment, Trade and Industry

YBhg. Dato’ Dr. Zulkapli Mohamed

Director-General of Public Service

YBhg. Datuk Seri Isham Ishak

Secretary General, Ministry of Investment, Trade and Industry

Members of the media

Representatives from the industry

Distinguished guests
Ladies and Gentlemen

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1. In July, I announced the Ekonomi MADANI framework designed
to elevate the dignity and status of our nation. Premised on
restructuring the economy to make Malaysia a regional
economic powerhouse, the framework hinges on the goal of
ensuring a just and equitable distribution of economic
wealth to the Rakyat. Ekonomi MADANI therefore incorporates
strategies to enhance economic growth, promote investment
and strengthen the local industries to become more innovative,
competitive and capable of expanding into the global market.

2. The New Industrial Master Plan 2030 (or NIMP 2030) is a key
component of Ekonomi MADANI as it will support the realisation
of economic reforms. It will revitalise the manufacturing sector to
ensure Malaysia remains resilient amidst growing challenges
and megatrends. The NIMP is designed to drive Malaysia’s
trajectory as a global leader in industrial development, extend
the domestic linkages to create wealth across the nation as well
as strengthen its position in the global value chain. This Plan is
timely to expedite the transformation of industries in Malaysia,
aligning them with the country's vision.

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The NIMP 2030’s Role In Making Malaysia a Leader in Asian
Economy

3. The manufacturing sector stands as a pivotal force to propel

Malaysia’s economic growth and development, being a
significant contributor to the nation’s GDP, providing
employment for 2.7 million individuals.

4. We must seize the opportunity to expand our base as Malaysia

is now well-positioned to capitalise on three key global trends:

i. Firstly, the global geopolitical situation has driven

companies to turn to SouthEast Asia as the “Plus One”
destination to ensure economic security and supply chain
resilience. This unlocks opportunities for Malaysia to further
integrate into the Global Value Chain. We can leverage on
our mature industrial infrastructure with good connectivity,
strategic location and reputation as one of the top
destinations for innovation and doing business.

ii. Secondly, we need to accelerate our digitalisation efforts to

stay ahead in the post-pandemic era as well as step up
efforts to develop high-skilled talent and enhance TVET

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 programmes. These initiatives will empower the Malaysian
workforce to enhance efficiency and accelerate innovative
capability, thereby creating a larger pool of skilled human
capital for the nation.

iii. Thirdly, in facing the challenges of climate change, we need

to adopt sustainable practices especially in ESG-sensitive
markets to create new growth opportunities in green
manufacturing, electric vehicles, and carbon capture,
utilisation and storage (CCUS).

Ladies and Gentlemen,

Mission-based Approach of the NIMP 2030

5. Unlike the previous industrial transformations and three

industrial master plans since 1986, the NIMP 2030 adopts a
mission-based approach. It is a horizontal policy with well-
defined Missions that will galvanise not only the entire
manufacturing ecosystem but also the whole of nation to drive
industrial transformation and realise our vision.

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6. With a short window of seven years, the NIMP 2030 must take
a transformative and expeditious approach to achieve the
goals. Based on rigorous assessments and extensive
consultations, four Missions have been formulated to drive
industry transformation at a large scale:

i. Mission 1 is to advance economic complexity, where

industries will be encouraged to innovate and produce
more sophisticated products. This will enhance the
competitiveness of our nation in the global market.

ii. Mission 2 is to tech up for a digitally vibrant nation. By

embracing technology and digital transformation, we
can drive innovation, enhance productivity, and create new
opportunities for economic growth.

iii. Mission 3 is to push for Net Zero. This mission

emphasises our commitment to address climate change by
striving for a net-zero future. Through sustainable
practices and green initiatives, we aim to reduce carbon
emissions and build a resilient and environmentally friendly
economy. This Mission is aligned with the initiatives under

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 the National Energy Transition Roadmap (NETR) which I
recently launched.

iv. Mission 4 is to safeguard economic security and

inclusivity. This Mission aims to create an enabling
environment that ensures supply chain security, supports
SMEs and promotes equitable participation in economic
activities in all states.

7. These Missions will be supported by four key enablers to

overcome systemic and institutional challenges. These
enablers include addressing financing challenges,
nurturing talent development and acquisition, improving
the investor journey, and enhancing governance
mechanisms. To provide the impetus for immediate roll-out of
NIMP implementation, several mission-based projects (MBPs)
have been identified. These ground-running projects are
expected to accelerate the development of an inclusive
ecosystem that integrates SMEs into the value chain and rally
the entire industry. The NIMP will see more MBPs in the near
future as we expect the industry to embrace this new approach
and realise the benefits it brings to the company and the spill
overs it creates to the economy.

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Ladies and Gentlemen,

8. To establish greater economic integration with our

neighbouring countries, the NIMP 2030 plans to establish
stronger cooperation with our neighbours for a more
resilient supply chain, with the pursuit for vertical integration of
selected industries across the ASEAN countries.
9. It bears stressing the importance of FDIs as they indirectly
increase the Domestic Direct Investments (or DDIs) as
multinational companies based in Malaysia will source
products and services from local companies. Strategic DDIs
also have the potential to attract more FDIs as investors
consider DDIs as a benchmark for domestic investors’
confidence and commitment towards strengthening the
nation’s investment and business landscape.

10. Recognising the importance of ESG considerations and its role

in reforming the economic landscape, the NIMP has dedicated
an entire chapter - “Push for Net Zero” - as part of its Missions.
This aims to decarbonise Malaysia’s industries to achieve
Net Zero emission goals through proactive measures such as
implementation of energy efficiency and waste management

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 initiatives, rapid renewable energy and technology adoption,
supported by a robust regulatory framework.

Ladies and Gentlemen,

NIMP 2030’s Role in SMEs’ Enablement & Capacity-Building in

the Manufacturing Sector

11. To ensure inclusivity, the NIMP 2030 will also create

opportunities for Malaysian SMEs to grow in
manufacturing. Our SMEs in manufacturing currently
contribute only 8% to GDP and 9% to exports. There is a lot
of potential to grow our SMEs in manufacturing, in line with
our Ekonomi MADANI aspiration to strengthen firms of all
sizes.

12. The NIMP 2030 has, for example, specific action plans to build
SMEs’ capacities to enable them to be positioned higher in
global value chains. This, in turn, will help them scale up into
mid-tier companies that could help Malaysia earn more
foreign exchange earnings.

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13. Further, I understand that MITI also has a framework that will
be launched in a few weeks’ time to build SMEs’ ESG
capacity. This is important to ensure SMEs’ continued
participation in ESG-compliant MNC vendor ecosystems, and
continued access to ESG-sensitive export markets.

Ladies and Gentlemen,

The NIMP 2030’s Role in Elevating Quality of Life for the

Rakyat

14. The Ekonomi MADANI and NIMP 2030 are both aligned in their
focus to improve the lives of the Rakyat with the expected
higher returns from the country’s economic targets. This
includes employment with meaningful wages and wealth-
sharing to build a more equitable and prosperous society.

15. This creation of high-value job opportunities is crucial to uplift

and expand the middle-class society. Global megatrends such
as the rising role of Industry 4.0 technologies, climate change
and sustainability practices, demographic shifts and
globalisation of value chains are changing the nature of jobs.

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 Skills transformation is key to develop future competencies and
this has been set as a focus of our industrial strategy.

16. To meet industry’s demands, we will implement a progressive

wage system that promotes skill development and career
advancement. Public-private collaborations will be enhanced in
TVET and STEM programmes, ensuring the acquisition of
skills required by the industry.

17. The Government is confident that the strategies in the NIMP

2030 will yield meaningful outcomes and produce big impact to
the national economy. Specifically, the NIMP 2030 aims to
increase the Manufacturing's value-added to RM587.5 billion
by 2030, growing by 6.5% from what it is today. This indicates
an increase of 61%, derived by NIMP 2030 interventions for
high-impact sectors – E&E, Chemical, EV, Aerospace,
Pharmaceutical and Advanced Materials, such as Minerals and
Metal.

18. In terms of employment, a projected growth at 2.3% from 2023

is expected, providing livelihood for 3.3 million persons by
2030. The industry's growing employment trajectory is due to
the creation of high-skilled jobs as the country advances

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 towards higher value-added activities and improvement in
automation and technological advancements.

19. What is most important is the projection that through NIMP's

interventions, the median salary for the Manufacturing sector
is expected to grow by 9.6%, to reach RM4,510 from RM1,976,
which is below the national average despite the sector’s
dominant role in the national GDP. This 128% increase from
2021 is driven by the shift of the industry towards higher value-
added activities and high-skilled jobs opportunities created.

Ladies and Gentlemen,

A Whole-of-Nation Implementation Approach for NIMP 2030

20. The journey to transform the industry requires swift action by

all. Implementation is crucial to convert the NIMP 2030 into
tangible actions and measurable outcomes. Hence, the NIMP
will be implemented through a whole-of-nation approach that
not only involves the Government machinery but also the
private sector by working collaboratively to achieve the Vision
and Goals. We will form a dedicated National NIMP 2030

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 Council, with the participation of the relevant Ministries and
industry representatives.

21. Public-private governance will be established to ensure timely

and effective implementation. A Delivery Management Unit
(DMU) under the Ministry of Investment, Trade and Industry
(MITI) will be set up to coordinate all efforts and drive cohesive
implementation across stakeholders.

22. The Government is fully committed to support the

implementation of the NIMP 2030. It will require an estimated
total investment of RM95 billion through its seven years,
predominantly from the private sector mobilised from private
equity, capital and financial markets. Close to 10% will be
allocated by the Government to help catalyse and incentivise
these investments via the NIMP Industrial Development Fund
and the NIMP Strategic Co-investment Fund.

Ladies and Gentlemen,

Closing

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23. Yesterday, we celebrated Hari Kebangsaan with the theme of
Malaysia Madani: Tekad Perpaduan, Penuhi Harapan. I
strongly believe that there is hope for a better, more dignified
Malaysia.

24. I am also confident that the NIMP 2030 will help us fulfil that
hope, by providing the necessary guidance and clear direction
for the development of the manufacturing sector to strengthen
its position as a key driver to national economic growth and
prosperity. The Government will ensure that the plan is carried
out diligently and benefit not only the private sector through
better investment and trade prospects, but also the people
through high-skill and high-income job opportunities.

25. I need to stress that the vision of NIMP 2030 can only be
successfully realised if we work together in unity, towards
achieving the Missions. It is only with the commitment for unity
that we can fulfil our hopes for the country.

26. With that, dengan lafaz Bismillahirrahmanirrahim, I am pleased

to launch the New Industrial Master Plan 2030.

Thank you.

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