InvestKL attracted 91 MNCs, created 12,584 jobs since 2011

by NUR HANANI AZMAN/ graphic by MZUKRI

INVESTKL has attracted 91 global multinational companies (MNCs) with approved and committed RM13.95 billion of investments since 2011, as well as the creation of 12,584 regional high-skilled jobs.

This comprised 91% of InvestKL’s 2020 mandate, following which the investment promotion agency is cautiously optimistic of achieving its target of 100 MNCs by year-end.

From 2011 to 2019, RM8.1 billion or 58% of the RM13.95 billion investments have been realised, while 8,858 or 70% of the 12,584 jobs are already on the payroll with an average annual income of RM141,622.

In 2019, the agency attracted 13 high-tech and high-value MNCs, it said in a statement yesterday.

“With approved and committed investments of RM2.2 billion, a total of 1,308 regional jobs were created,” InvestKL CEO Muhammad Azmi Zulkifli said.

Of the 13 MNCs, 70% were from the US, UK and Europe. These Fortune 500 and Forbes 2000 companies included Edwards Lifesciences Corp (US), Splunk Inc (US), General Electric Co (US), AstraZeneca plc (UK), ABB (Swiss-Swedish); Schindler Group (Swiss); CMA CGM (France), TUI (Germany) and SCM (Italy).

The remaining 30% comprised Asian firms such as Daifuku Co Ltd (Japan), Vanke (China), China Railway Rolling Stock Corp (China), and SRKay Consulting (India).

Muhammad Azmi said the 91 MNCs attracted from 2011 through 2019 have significantly added values to local businesses, as the real estate, hospitality, education, medical, tourism and entertainment sectors have all benefitted.

“The real estate sector enjoyed an estimated RM156.8 million of annual rental income for office space in 2019, or equivalent to these MNCs occupying some 50 floors on each of the Petronas Twin Towers,” he said.

Despite the Covid-19 pandemic, the agency is maintaining its 2020 target to attract 12 high-value, high-tech and high-impact MNCs to invest in Kuala Lumpur (KL).

InvestKL is eyeing investments in sectors such as technology, consumer and industrial products, medical devices, medical technology, smart technology and renewable energy.

“Malaysia’s fundamentals remain strong and attractive to investors. Despite Covid-19, we remain in active discussions with potential investors from the US and Europe.

“Although some investors are taking a wait-and-see approach, others remain committed to their investments as they hold a long-term view,” Muhammad Azmi added.

Malaysia is also in talks with Chinese companies and global MNCs from the technology, logistics and manufacturing sectors interested to expand their capacity or set up regional headquarters here.

InvestKL is an investment promotion agency under the Ministry of International Trade and Industry (MITI), tasked to attract global MNCs to set up their regional headquarters or business services hubs in Greater KL.

MITI Minister Datuk Seri Mohamed Azmin Ali said InvestKL’s achievement over the past eight years is a testament to foreign investors’ confidence in the country’s business and governance environment.

However, he cautioned that with Covid-19 and the generally negative impact on foreign direct investments globally, InvestKL would need to recalibrate and add greater value propositions to its investment strategies.

Muhammad Azmi added that MNCs have been helping Malaysia to fight Covid-19 via donations of funds, personal protective equipment, face masks, disinfectant hand gels, thermometers, and a 40ft refrigerated container at the KL City Centre Enforcement Unit, the centre for the city’s frontliners.