Fostering talent development & attraction a key enabler of Malaysia's New Industrial Master Plan 2030

Fostering talent development & attraction a key enabler of Malaysia's New Industrial Master Plan 2030

The NIMP 2030 takes on a "markedly different mission-based approach", MITI said, which includes pushing for Net Zero and safeguarding economic security and inclusivity.

Malaysia's New Industrial Master Plan 2030 (NIMP 2030) is set to transform the country's manufacturing sector by ensuring broad-based growth, in alignment with the MADANI Economy's vision and objectives, according to the Ministry of Investment, Trade and Industry (MITI).

Through strategies such as increasing economic complexity, strengthening domestic industrial linkages, and positioning Malaysian industries higher in the global value chain, NIMP 2030 targets to build Malaysia’s industrial capacity and resilience for long-term, sustainable growth, MITI added. The Government will allocate a total of RM8.2bn to fund the NIMP 2030 action plans throughout its implementation period. To that end, two new funds will be set up, namely the NIMP Industrial Development Fund and the NIMP Strategic Co-Investment Fund. 

Launched on Friday (1 September 2023) by Prime Minister Dato' Seri Anwar Ibrahim, the NIMP 2030 is the fourth edition of Malaysia's Industrial Master Plan (IMP), taking on a "markedly different mission-based approach" compared to the earlier IMPs.

The four key Missions of the NIMP 2030 are:

  • Mission 1: Advance economic complexity: Focuses on encouraging the industry to innovate and produce more sophisticated products to increase economic complexity.
  • Mission 2: Tech up for a digitally vibrant nation: Aims to embrace technology and digitalisation to drive innovation, enhance productivity and create new opportunities for economic growth.
  • Mission 3: Push for Net Zero: Aims to decarbonise Malaysia’s industries through implementation of energy efficiency and waste management measures, rapid RE and technology adoption and robust regulatory frameworks.
  • Mission 4: Safeguard economic security and inclusivity: Aims to create an enabling environment with supply chain resilience, fosters entrepreneurship, supports SMEs, and promotes equitable participation in economic activities.

These Missions will be supported by four Enablers to achieve the Plan's goals:

  • Enabler 1: Mobilise financing ecosystem:
    • The NIMP 2030 will mobilise various types of financing, from the financial institutions to the capital market, supported by government funding through the NIDF and CoSIF, in strategic areas.
    • The NIDF will be funded by the Government to enhance the capability of Malaysian companies, including SMEs, and assist them to participate in the global value chain.
    • The NIMP 2030 CoSIF will be a co-investment fund, that supports strategic and high-impact MBPs to spur Malaysia’s economic growth, by crowding private sector financing.

  • Enabler 2: Foster talent development and attraction:
    • In the pursuit of the Missions involving higher value-added activities, innovation and new growth opportunities, it is critical for Malaysia to foster the development of local talent apart from attracting the right foreign talent to cater to the industry’s requirements.
    • A progressive wage system (PWS) policy will be introduced to increase wages in Malaysia. The PWS maps out a career pathway for employees to improve skills, earn fair wages and enhance career prospects.

  • Enabler 3: Strengthen best-in-class investor journey for ease of doing business:
    • Firstly, the Government aims to strengthen its synergy across ministries and agencies in driving towards the National Investment Aspirations (NIA) as the country’s unified development goals. Secondly, Malaysia aims to streamline the roles and responsibilities of all IPAs. Through this:
      • MIDA is mandated as the national body to centralise investment promotion and marketing.
      • The functions of subnational IPAs will be streamlined to support the investment ecosystem.
    • Next, the incentive mechanism will be improved to ensure that the incentives offered remain attractive for investors and approvals are accelerated to speed up investment implementation.

  • Enabler 4: Introduce whole-of-nation governance framework:
    • The whole-of-nation governance framework is a comprehensive integrated approach where Government ministries and agencies synergise and align towards establishing a robust ecosystem. A dedicated Delivery Management Unit (DMU) will be established in MITI to monitor the progress of the masterplan.
      • PM Anwar will be chairing the National NIMP 2030 Council comprising representatives from other ministries, the industry, and other agencies – said to be the highest level of government oversight.
      • Whole-of-nation approach for successful industrial development
      • DMU – structured and close monitoring

There will be nine Mission-based projects (MBPs) that will act as catalysts to create the initial momentum of the masterplan's implementation:

  • MBP 1.1: Create global IC design champions in EV, RE, and AI
  • MBP 1.2: Attract new advanced wafer fabrication in Malaysia
  • MBP 1.3: Deepen to specialty chemical vertical
  • MBP 1.4: Groom champions in four game-changing advanced materials
  • MBP 2.1: Transform 3,000 smart factories
  • MBP 2.2: Establish Malaysia as a Generative AI Hub
  • MBP 3.1: Create decarbonisation pathway role models
  • MBP 3.2: Launch locally-manufactured EV
  • MBP 3.3: Deploy large-scale CCUS solutions

The Ministry said it will work closely with the industry to identify more MBPs throughout the implementation phase. 

"SMEs have a significant role, acting as key suppliers of local content, providing value in supply chains and contributing to overall industrial development. The NIMP 2030 will develop SMEs by, among others, building their capacity to participate in higher value-added opportunities, as well as technology adoption to increase productivity and reduce reliance on low-skilled labour," MITI explained. 

The NIMP 2030 will also build SMEs’ environmental, social & governance (ESG) capacity to help secure their continued participation in ESG-compliant MNC vendor ecosystems, and continued access to ESG-sensitive export markets, while also contributing towards the country’s sustainability goals.

Photo: PM Anwar's Facebook

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