KUALA LUMPUR: The government is confident that 2024 will be a stronger year for Malaysia in terms of foreign direct investment (FDI).
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said in the first six months of this year, a total of RM132.6 billion investments had been approved.
Nearly half of that amount is domestic direct investment (DDI). This highlights the importance of the local ecosystem to support DDI.
"FDI is also crucial for creating jobs, spurring growth in various industries, and enhancing economic complexity since we are a trading nation," he said.
The government is optimistic about a stronger year ahead and believes in a positive correlation between FDI and DDI, leading to spillover effects.
"We hope this momentum can continue and I'm more confident that next year will be stronger because we see the stronger influx of FDI into the country," Tengku Zafrul told reporters after the Malaysian Industrial Development Finance Bhd's Roundtable here today on "NIMP 2030: Curating Malaysia's Sustainable Investments and Growth".
He said the increase in the service tax by 2.0 percentage points from 6.0 per cent to 8.0 per cent is not expected to have an impact on the industrial sector.
"We, as policy makers, have balanced the pros and cons of any tax increase to achieve a good balance. We have fiscal responsibility and responsibility to Parliament and the people to achieve sustainable growth," he said.
Therefore, the increase in the service tax will not affect the industrial sector.
Any impact that exists has been exempted because the tax increase does not include services like food and beverages and telecommunications.
"For other sectors, we will monitor the outcomes resulting from this decision," Tengku Zafrul added.
The dialogue, organised by MIDF Group, is part of the initiatives to update and offer valuable insights to its stakeholders regarding the ongoing economic developments within the nation.
In light of the recent introduction of NIMP 2030, the group believes that it will be advantageous for its stakeholders to explore in greater detail the implications of the plan and its envisioned role in the transformation of the country's economy.