60% of Selangor’s economy is made up of the service sector and manufacturing sector represents 23%
By SHAHEERA AZNAM SHAH / Pic By BERNAMA
The Selangor government aims to rake in RM7 billion in investments from the manufacturing sector this year.
Selangor Mentri Besar (MB) Amirudin Shari said the manufacturing division is one of the core businesses in the state apart from healthcare, transportation and machinery.
“In 2017, we achieved RM5.58 billion of investment from the manufacturing sector as Selangor hosted numerous thriving business activities in the sector.
“For example, the distribution centre for a multinational company that has been extended to 37 countries,” he said at the Selangor International Business Summit (SIBS) 2018 in Kuala Lumpur yesterday.
Amirudin said the state recorded RM800 million investments for the first half of 2018.
He added that 60% of Selangor’s economy is made up of the service sector, while the manufacturing sector represents 23%.
Amirudin said Selangor is expecting a lower revenue of RM2.25 billion this year from RM2.8 billion in 2017.
The state’s revenue stood at RM1.6 billion as of July 31, 2018. Meanwhile, the MB said the Selangor government is reviewing its free water policy to extend more benefits to the B40 (bottom 40%) income group.
“We spend around RM180 million on the water subsidy for the people of Selangor each year and it has reached up to RM200 million.
“Our primary focus after this will be the B40 group and formulating policies that will benefit them the most,” he said.
Amirudin added that the policy is needed to be reviewed in order to accommodate the rising numbers of houses and premises in Selangor.
“When we started in 2008, it cost us RM79 million. However, the cost has hit RM200 million a year with more residential establishments and office premises in the state,” he said.
“As the gateway to Asean and an aspiring global trading hub, Selangor is a significant centrepoint for domestic and internat ional businesses which would like to build or strengthen their presence in Asean and SIBS is the perfect platform to do just that,” said Selangor executive councillor Datuk Teng Chang Khim at the official opening ceremony yesterday.
He said the summit allows local and foreign multinational corporat ions, smal l and medium enterprises and entrepreneurs operating in the food and beverage industry to showcase their products and services.
It also acts as a strategic avenue for marketing, collaborations and partnerships, and provides exposure and information on the latest technological developments globally.
Following its astounding success in 2017, which saw a total of 22,000 visitors with RM204.2 million in transaction value, SIBS has received support from MBI Selangor as a co-organiser and Malaysia External Trade Development Corp as an endorsing partner.
Also at the event, Deputy International Trade and Industry Minister Dr Ong Kian Ming said Malaysia needs to take advantage of its open e conomy s t at us a nd strengthen the investment within the Asean-member countries amid the global trade tension.
“I don’t think the trade tension between the US and China will come to an easy solution. Even with the negotiations that are being taken by both parties, the tension is still running high and affects the predictability of the US government.
“In a short run, Malaysia will definitely be affected even though we are the second most open economy in the Asean as our trade-to-GDP ratio is more than 100%,” he said.
Ong added that the non-tariff barriers remained the major hurdle in solidifying the linkages between countries in Asean.
“Many of the trade investors to Asean countries are experiencing the non-tariff barriers, which is what we are trying to address with our Asean counterparts.
“Businesses are urged to step forward and work with the government to address this issue in order to accelerate the efforts to reduce and eliminate the non-tariff barriers,” he said.