Standard Chartered Malaysia has inked a Memorandum of Understanding (MoU) with the Malaysian Investment Development Authority (MIDA) to bring in high-value, high-technology and high-impact investments into Malaysia.
This covers the electrical and electronics (E&E), machinery and equipment, medical devices, aerospace, renewable energy and consumer technology sectors. Foreign investors in these areas can gain access to the banking services and foreign direct investment advisory of Standard Chartered Malaysia, according to its press release.
The banking and advisory services offered will complement MIDA’s marketing and trade exchange initiatives, such as trade and investment missions, conferences and roundtable meetings, as well as a series of webinars to globally connect investors.
“Public and private sector collaborations are more important now than ever to achieve our objectives and bring ourselves forward in this new normal. Despite the multiple challenges faced, Malaysia remains resilient. Our diversified economy structure and the sound track record of macroeconomic management continues to be conducive in supporting the country’s economic fundamentals going forward,” said MIDA CEO Datuk Azman Mahmud.
“The sustainable and progressive development of industries in Malaysia has also strengthened the nation’s position as the best place to invest. MIDA looks forward to a successful collaboration with Standard Chartered to attract more companies to choose Malaysia and expand their business here.”
The E&E industry in Malaysia accounts for 10% of the global backend semiconductor output. According to the Department of Statistics Malaysia, E&E products account for the biggest share of exports of major products (39.9%) currently.
Already, MIDA has a pipeline of investment projects worth around RM37.8 billion, consisting of many foreign E&E firms which want to relocate their businesses to Malaysia, it says. For instance, global supplier of technology and services Bosch announced it will set up a manufacturing facility in Penang that focuses on semiconductor components and sensor testing earlier this month.
The government is also offering a zero tax rate for up to 15 years under its recently announced short-term economic recovery plan to encourage foreign investors to set up their businesses in Malaysia.
“Having operated in Malaysia for 145 years, we remain as committed as ever to facilitate the economic growth of the country. Our strong presence in Asia, Africa and the Middle East is an important enabler for foreign investments and will go a long way in supporting companies to venture into Malaysia,” said Standard Chartered Malaysia managing director and CEO Abrar A Anwar.
“We are able to leverage our extensive network, strong product capability, service innovation, as well as access to capital markets and funding, to help clients succeed in establishing businesses in Malaysia.”