SHAH ALAM, Dec 1 — The aerospace sector will continue to be one of the state’s strongest investment drivers next year, supported by growing global demand and the state’s expanding high-skill ecosystem, said Invest Selangor Bhd.
Its chief executive officer Dato’ Hasan Azhari Idris, aerospace activities including maintenance, repair and overhaul (MRO), component manufacturing and specialised engineering services remain a major contributor to the state’s investment pipeline.
“The aerospace sector remains a key growth contributor as global demand for aerospace products and services continues to rise,” he told Media Selangor in a recent interview.
Apart from aerospace, Hasan said the state expects future investments to be driven by advanced manufacturing, especially in electrical and electronics (E&E), machinery, transport equipment, and smart manufacturing technologies.
These sectors are expected to benefit from Industry 4.0-focused incentives, such as the exemptions for automation, robotics, and technology (ART).
“These high-value industries align with Selangor’s focus on attracting quality, technology-driven, and knowledge-intensive investments that support long-term economic growth,” he said.
Hasan added that the incentives will accelerate the shift towards Industry 4.0 capabilities.
During the tabling of the 2026 Selangor Budget on November 14, Dato’ Seri Amirudin Shari said the state government had several efforts outlined to attract investments, strengthen investor confidence, stimulate regional development, and widen global market access for local businesses.
The RM15 million allocation will support key investment initiatives, including the Selangor International Business Summit (SIBS), the Selangor Soft Landing Programme, the Selangor Lab Partnership, and the newly introduced SME-Investors Linkages.
Driving stronger returns
With rising competition from neighbouring states and regional markets, Hasan said Selangor plans to strengthen its global visibility through more targeted investment missions, strategic collaborations, and participation in high-impact trade and business events.
The state government is also deepening cooperation with neighbouring states and Federal agencies through joint promotional initiatives.
“These include coordinated missions, shared promotional campaigns, and unified investor engagement efforts that position the broader region as an integrated and attractive investment corridor,” he said.
Hasan noted that Selangor is also enhancing facilitation through the Speed Selangor Initiative, which aims to significantly shorten business application and approval processes from three months to as few as 14 days, emphasising that faster facilitation is critical to maintaining investor confidence.
Launched on October 8, Speed Selangor was introduced to expedite and streamline the development and business approval processes. Currently, it prioritises projects like factories, warehouses, logistics facilities, private hospitals, universities, and standalone commercial buildings.
Securing the top spot
The state is focused on strengthening its industrial clusters, upgrading infrastructure, and expanding talent programmes as part of its long-term investment strategy.
He said these include support for high-tech sectors, improved connectivity and initiatives to boost workforce readiness for automation, artificial intelligence (AI), and advanced manufacturing.
The combination of a strong industrial base, incentives for digital and automated technologies, and the development of high-skill sectors positions Selangor to remain Malaysia’s leading investment destination.
“Selangor plans to retain its position as Malaysia’s top investment destination by strengthening both its global visibility and the competitiveness of its business ecosystem,” Hasan said.
The RM3.23 billion 2026 Selangor Budget for the upcoming year was themed ‘Selangor Champions, People Prosper’ (Selangor Juara, Rakyat Sejahtera).
Approximately 57.6 per cent of the allocations, or RM1.86 billion, has been set aside for operating expenditures, with 42.4 per cent, or RM1.37 billion, for development expenditures.
Taking into account the state government’s expected revenue of RM2.8 billion for 2026 and an estimated expenditure of RM3.23 billion, Amirudin said the budget projects a deficit of RM430 million.
