KUALA LUMPUR, Oct 16 — Selangor must strengthen its local small and medium enterprises (SMEs) as part of its strategy to attract investment and ensure sustainable economic growth.
Menteri Besar Dato' Seri Amirudin Shari said these efforts must be supported by improvements in local workforce skills and the ability to add value in relevant sectors.
He said multinational corporations (MNCs) typically choose locations that offer advantages in operating costs and a competitive business environment.
As such, Selangor must introduce support programmes that enable local SMEs to grow and participate in the supply chains of major corporations.
"Our strength lies in providing support programmes for SMEs to ensure these companies can grow.
"For example, we have introduced a 30 per cent local content requirement for data centre companies planning to establish operations in Selangor," he said, during the ‘In Conversation with MB’ session at the Selangor Investment and Industrial Park Expo (SPARK) here yesterday.
Amirudin said the approach was not intended to be coercive, with companies given three to five years to meet the local content requirement.
He also cited Chinese automotive manufacturer Chery as an example, saying the company had achieved 60 per cent local participation.
"This is a good example of how introducing a policy can demonstrate the potential for local participation, with domestic companies rising to the challenge of supporting these MNCs," he said.
Meanwhile, Amirudin acknowledged that developing an industrial ecosystem requires sustained efforts, particularly in strengthening human capital capabilities to meet investors' needs.
"Developing our SMEs is not just a question of capital, but also involves the capabilities of our human resources," he said.
