Despite the economic uncertainties caused by the United States-China trade war, Malaysia continued to attract foreign investments, with foreign direct investments (FDIs) in the first quarter of 2019 reaching RM21.7 billion, compared with RM11.2 billion during the same period in 2018. These figures presented Malaysian’s capability to boost the economy and especially domestic direct investments.
High Technology - Domestic Direct Investment
RM (Billions)
25
Chemicals & Chemical Products Rubber Products Plastic Products Machinery Manufacturing Electronics & Electrical Products Scientific & Measuring Equipment
20
15
10
5
0
2010
2011
2012 2013
2014
2015
2016
2017
2018
Source: MIDA
Funding New funding and outcome-based incentives including Industry 4wrd Readiness Assessment and SIRIM-Fraunhofer Programme have been established to encourage industry players to adopt new technologies and invest in research and development, with particular focus on electronics, machinery and equipment, aerospace and medical devices for the purposes of boosting the high technology sector. The RM3 billion Industry Digitalisation Transformation Fund announced during the Budget 2019 is part of the initiative to push Malaysia towards Industry 4.0 by accelerating the adoption of new technology including robotics, big data and artificial intelligence. This serves to transform Malaysia’s industrial capabilities by supporting the right ecosystem for the country to emerge as a preferred location for high technology manufacturing.
THE SURVEY
Among those planning to seek additional capital this year, fundraising through investment by strategic partner remains the most popular choice particularly in area such as system integration and innovative IoT products. High technology companies are optimistic that their efforts will pay off with 66% of respondents expect an increase in total revenue this year while 17% saying that it will remain unchanged. However, Government support in identifying and connecting local companies with strategic partners is sought to ensure sustainability. 66% 17% Increase in total revenue Unchanged
15
Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology
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