Mida sets modest targets

KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) which foresees 2015 to be a challenging year, has toned down its approved investment targets for this year, as it aims to attract investments worth RM56 billion in the manufacturing sector, compared with the RM71.9 billion it achieved last year.
"As for 2015 target, we are being very modest as this year is a challenging year. I do not like to be too bullish, as when it comes to forecasts we have to be realistic. Hopefully in February 2016, we will be able to surpass the forecasts," Minister of International Trade and Industry Datuk Seri Mustapa Mohamed told press conference after revealing the Malaysia's Investment Performance Report 2014 yesterday.
However, he said the government is optimistic of attracting at least RM56 billion and RM64.5 billion approved investments in manufacturing and services (excluding real estates) sector respectively this year, given that currently it has RM65.1 billion projects in the pipeline, comprising RM51.4 billion in manufacturing sector and RM13.7 billion in services sector.
"As far as Mida is concerned, we have more than RM65 billion worth of projects (in total) in the pipeline, and when all of the projects in the pipeline are materialised, then we will be able to exceed our forecast," he said.
Mustapa revealed that the country's approved investments hit another record high of RM235.9 billion last year, up 7.52% from RM219.4 billion in 2013, fuelled by the services, manufacturing and primary sectors.
Approved investments in the services sector registered RM149.6 billion last year, up from RM144.7 billion in 2013, while investments in the manufacturing sector rose 38% to RM71.9 billion from RM52.1 billion in 2013.
Meanwhile, investments in the primary sector, which include agriculture, mining, plantation and commodities declined to RM14.4 billion from RM19.7 billion in 2013.
A total of 5,942 investment projects were approved last year, and are expected to create some 178,360 jobs, offering more job opportunities in high technology and high value added industries, the Minister said.
"The services sector accounted for the largest share of total potential employment with 98,540 job opportunities (55.3%), manufacturing with 78,340 jobs (43.9%) and primary sector with 1,480 jobs (0.8%)," he said, noting about RM171.3 billion (72.6%) of last year's investments were local projects, while the rest were foreign direct investments.
"The ratio of foreign and domestic investments is in line with the government's drive to actively promote domestic investments, as outlined in the Economic Transformation Programme (ETP) and the 10th Malaysia Plan," he added.
Commenting on the impact of the ringgit's depreciation against the dollar to the investments' performance this year, he said it will have no impact on the investment prospects for this year, as the ringgit is still stable and the country's economic fundamentals are still strong.
Going forward, Mida's CEO Datuk Azman Mahmud said the government will continue to introduce measures to enhance the country's competitiveness to face domestic and external challenges and opportunities.