A wide scope of Indian expansion in Malaysia
The Malaysian Investment Development Authority (MIDA) runs through ways Indian investors can capitalise on business opportunities in Malaysia.
Malaysia is no stranger to the Indian business community. The relationship has been dynamic, evolving in the rapidly changing international environment. The Malaysian Investment Development Authority (MIDA), the principal investment promotion agency for the country, set up its overseas office in Mumbai in April 2008.
This office is responsible for the promotion of quality Indian investments into Malaysia, to provide potential investors with the latest information on policies and opportunities in the manufacturing and services sectors, as well as providing the necessary assistance to potential Indian investors interested in seeking joint venture partners or technology collaborations in Malaysia.
MIDA Mumbai office works closely with all other chambers and business associations in major industrial regions. Areas of collaboration include providing feedback to the government on issues or challenges faced by Indian investors, informing the Indian business community on existing investment opportunities and continuously participating in trade and investment missions to India.
India is an important source of foreign direct investments (FDI) in the manufacturing sector in Malaysia. The involvement of Indian investors is strong in the textiles & textile products, chemical & chemical products, petroleum products (inc. petrochemicals), pharmaceutical products, non-metallic mineral products and food manufacturing. Malaysia is proud to host notable Indian companies such as Reliance Group, Biocon, Ranbaxy, JG Containers, Forte International and Tamco Switchgear.
The presence of Indian investors is also evident in the services sector in Malaysia. These include ICICI Bank Limited, Wipro, Infosys, Tata Consultancy, and Manipal International. The sustained inflows of Indian investments into Malaysia are a reflection of the country’s continued competitiveness for businesses.
Given the speed of change today, clearly there is much scope for expansion for Indian investments in Malaysia. With the rise of the industrial revolution or better known as industry 4.0, business opportunities are widely available in various sectors in Malaysia. The country has also been developing its capabilities to adapt quickly and embrace smart technologies and processes.
Malaysia’s industrial ecosystems are fully integrated into the global supply chain. With the launched of the Digital Free Trade Zone (DFTZ), the country is moving full speed into the knowledge and digital economy. The Zone will benefit entrepreneurs by offering a conducive environment for digital companies to carry out businesses.
The ongoing economic transformations, which are well-supported by Malaysia’s long term comprehensive plans have increasingly made the country a more profitable place for businesses. Indian investors can tap into the country’s deep understanding of the region, multi-lingual talent pool and extensive network of free trade agreements with ASEAN. With Malaysia’s unmatched connectivity and its business friendly policies, Indian companies have much to gain in terms of capturing growth opportunities and immediate market access. More investments from India are certainly welcomed particularly in the areas of electrical and electronics, chemical, pharmaceutical, textiles, ICT, e-commerce and other emerging growth areas.
Malaysia has been recognised as an attractive investment destination by a multitude of independent international institutes and organisations. Malaysia was ranked 2nd in terms of Global Competitiveness among ASEAN countries. Bloomberg’s 2018 Emerging Market Scorecard ranked Malaysia as the most attractive emerging market in Asia and the 5th most attractive in the world. The country was also ranked 2nd in Ease of Doing Business within ASEAN in the World Bank’s 2018 Doing Business Report.
History has proven that Malaysia is a resilient nation, despite multiple challenges faced by the global economy. The country has a well-diversified economy resting on the back of its solid economic fundamentals. With its pro-business, prudent and pragmatic policies, Malaysia is the profit center in Asia.
MIDA looks forward to continuously working together with Indian investors to capitalise on the opportunities that are present in the ASEAN region.
Tata Consultancy Services (TCS) has been operating in Malaysia since 2003 with a workforce of 1,200 employees, armed with a proven track record of executing large scale transformational initiatives around Cloud, Big Data and Automation with the most prominent Malaysian brands within the Aviation, Telecom, Oil & Gas, Utility and Banking sectors. The presence of world class infrastructure enabled by skilled manpower with multi-lingual capabilities makes Malaysia a key choice that offers competitive cost effectiveness catering to our customer needs.
Roswaidin Mohd Zain is Consul (Investment) at the Consulate General of Malaysia, Mumbai, cum Director, Malaysian Investment Development Authority (MIDA) in Mumbai since July 2017.