Driving Malaysia Towards Excellence

MITI and its agencies seek to protect the livelihood and health of the Rakyat while going all out to resuscitate the economy

MITI’s roles in accelerating the growth of the Malaysian economy for the past six decades have contributed greatly to the well-being of the people by way of job creations as well as developing a business ecosystem that is conducive for knowledge transfer and upskilling among local talents. These, over the years, have transformed the landscape of the Malaysian economy – from agriculture and commodity-driven economy in the 1960’s to the manufacturing, technology and services-driven economy that it is today. 

Being located in the Asia Pacific rim and at the centre of many ASEAN countries, Malaysia has many competitive advantages to remain an attractive investment and trade destination, particularly with the favourable business environment, including the availability of excellent infrastructure, telecommunication services, financial and banking services, supporting industries as well as a big pool of talents with skills and trainable workforce. 

This is reflected in Malaysia’s ability to maintain its strong position globally, ranking the second-highest in Southeast Asia and twelve (12th) out of 169 countries for trade connectivity in the DHL Global Connectedness Index (GCI) report in 2019.

A recent joint study by KPMG and The Manufacturing Institute in the US entitled “Cost of Manufacturing Operations around the Globe” ranked Malaysia fourth among 17 economies in an assessment comparing the economy’s competitiveness as a manufacturing hub, which is ahead of countries in Asia such as China, Japan, Vietnam and India. This study evaluated a total of 23 cost factors that impact the cost of operations (Cost of Doing Business or CoDB) of a business conducting manufacturing operations in the United States relative to sixteen other countries that are leading manufacturing exporters to the US. 

Today, the task to position Malaysia as an economic powerhouse and a force to be reckoned with in the region has become more arduous. The unprecedented COVID-19 pandemic has challenged the Ministry to multiply its efforts in facilitating the resiliency of this nation through industrial developments, international trade and investments – within a context that’s complicated, for not just Malaysia but for countries around the world. 

MITI and its agencies continue to play a key role in the revitalisation of the country’s economy following the impact of the pandemic, particularly in the negotiations of Free Trade Agreements between Malaysia and several key economies. Thus far, Malaysia has signed 16 FTAs and implemented 14 FTAs (7 bilateral FTAs and 7 regional FTAs). The most recent is the Regional Comprehensive Economic Partnership (RCEP) that was signed on 15 November 2020 which is pending ratification and entry into force.  

As MITI and its agencies help the Malaysian industry players mitigate the impact of the pandemic, it is working ever more closely with the other ministries and agencies such as the Ministry of Health, National Security Council, Ministry of Finance, Ministry of Domestic Trade and Consumer Affairs, among others, to lead the economic agenda during this difficult period. It is important to highlight that all economic decisions made during the pandemic are a collective effort and are of the best interest of the people towards achieving a balance between protecting the rakyat’s health and livelihoods.