Kuala lumpur: The government will review the possibility of strengthening localisation requirements imposed on foreign investors to create a more resilient ecosystem in Malaysia, enabling local companies to benefit from spillover effects. Deputy Minister of Investment, Trade and Industry, Liew Chin Tong, stated that the move aims to ensure that micro, small, and medium enterprises (MSMEs) benefit not only from new domestic and foreign investments but also from efforts to grow Malaysian companies into multinational corporations (MNCs).
According to BERNAMA News Agency, Liew emphasized the need for a shift in mindset, as MSMEs and smaller firms have traditionally been seen only as support players to large foreign MNCs. The new approach focuses on the capabilities and potential of Malaysian companies to become technology-based MNCs that can play significant roles on the global stage.
Liew addressed a question from Datuk Seri Dr Wee Jeck Seng (BN-Tanjung Piai) during a question-and-answer session in the Dewan Rakyat. Wee inquired about the status and effectiveness of negotiations between the Malaysian Government and the United States regarding the implementation of reciprocal tariffs. He also sought assurance from the government that the ongoing period of uncertainty would not adversely affect trade, supply chains, and the SME sector in Malaysia.
Liew expressed confidence that the early measures already implemented, along with carefully planned mitigation strategies, will help minimise the negative impact of any reciprocal tariffs imposed by the US on Malaysia. He highlighted the efforts of the Ministry of Investment, Trade and Industry (MITI), through its agency, the Malaysia External Trade Development Corporation (MATRADE), in diversifying Malaysia’s export markets. This includes exploring new destinations in non-traditional markets and strengthening export networks for Malaysian products, particularly to fast-growing emerging markets in Central Asia, South Asia, the Middle East, Africa, and ASEAN.
To position Malaysia as a key hub within global supply chains, Liew stated the government’s commitment to enhancing national resilience by nurturing local technology companies in strategic sectors such as semiconductors. He noted the government’s aim to transform local firms from being outsourcing manufacturers under the ‘Made in Malaysia’ label to becoming creators of products ‘Made by Malaysia’, indicating Malaysian-developed technology.
Liew added that MITI, together with the Ministry of Finance, will introduce the New Industrial Investment Framework (NIIF) in the third quarter of this year to attract high-value investments and activities. This initiative seeks to ensure that all investments bring tangible benefits, such as quality employment for Malaysians, and contribute to the development of ecosystems and technology within Malaysian companies.