By Amar Shah Mohsen
KUALA LUMPUR, July 25 — The Federal government is depending on Selangor to boost Malaysia’s gross domestic product (GDP), Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said today, noting the state’s remarkable contribution to the national economy.
Addressing investors and trade visitors at the 8th Selangor Asean Business Conference (SABC), Tengku Zafrul said major investments in the manufacturing and services sectors had positioned Selangor as Malaysia’s leading hub for innovation and economic growth.
He then noted Menteri Besar Dato’ Seri Amirudin Shari’s previous statement about Selangor aiming to contribute a whopping RM500 billion to the national economy within the next three years through expansion in key manufacturing sectors such as semiconductors and green technology.
“We are monitoring this very closely. I hope you (Menteri Besar) and your team can achieve this. We are relying on you,” he said in his keynote address here today.
Also in attendance were Amirudin, state executive councillor for investment, trade and mobility Ng Sze Han, Selangor State Secretary Dato’ Haris Kassim and Invest Selangor Bhd chief executive officer Dato’ Hasan Azhari Idris.
The SABC, held from today until Saturday, is part of the First Series of the Selangor International Business Summit (SIBS) 2024.
On July 2, the Statistics Department revealed Selangor had contributed 25.9 per cent (RM406.1 billion) of the national GDP in 2023, the highest on record, and was also the state with the largest economic growth at 5.4 per cent, far outpacing the national rate of 3.6 per cent.
Following this, Amirudin said the state would aim to achieve RM500 billion in annual economic activities within three years.
[caption id="attachment_358491" align="aligncenter" width="1200"]
Semiconductor chips seen on the circuit board of a computer on February 25, 2022. — Picture by REUTERS[/caption]
Tengku Zafrul noted that Selangor was one of the biggest investment contributors to Malaysia in the first quarter of this year, logging RM12.4 billion, with only Kedah and Kuala Lumpur performing better by contributing RM31.3 billion and RM21.5 billion, respectively.
On how Selangor can achieve its economic targets, Tengku Zafrul said this will be aided by initiatives rolled out by the federal government like the National Energy Transition Roadmap, the New Industrial Master Plan 2030, and supporting plans such as the National Semiconductor Strategy.
“This will get Selangor to where it wants to be in semiconductors, among others. In fact, I had the pleasure of visiting one of (Selangor’s semiconductor) initiatives, and we want to see this industry play a key role when it comes to economic growth for Selangor.”
The minister said Selangor can leverage Asean’s position as the world’s “darling destination” for investments in manufacturing, as well as its huge potential as the global engine of growth.
He pointed out that Asean’s collective GDP of almost US$3.7 trillion in 2022 made it the third-largest regional economy in Asia and fifth in the world.
A total of US$155 billion in foreign direct investment inflow into Asean was also recorded last year, thanks to its neutral stance.
This positive trajectory, according to Tengku Zafrul, is largely owed to its combined population of 670 million people, of which 213 million (31 per cent) are youth aged 15 to 34, making up a young talent pool.
“This growth and demographic dividend is also seen in Selangor, where working people make up 67 per cent of the state’s population, partly due to its popularity as a land of opportunities for workers from other states,” he said.
Given Selangor’s location in the Klang Valley, Tengku Zafrul said businesses in the state stand a strong chance of leveraging key events held in Kuala Lumpur to elevate themselves and build their regional profiles.
He also expressed confidence that Selangor will be able to attract more investments into the state and realise approved investments quickly — at a rate possibly higher than the national level — through strong coordination and collaboration with the Investment, Trade and Industry Ministry and Malaysian Investment Development Authority.
