Future Greater KL

A Home for Future-Forward Companies

The economic and social transformation of Malaysia has been nothing short of fascinating. With a population of just 32.7 million in 2020, Malaysia may be a relatively small country but its open, diverse and resilient economy make it a favourable long-term investment prospect for foreign companies choosing to establish their presence in Southeast Asia.

Over the years, Malaysia has successfully diversified its economy from agriculture and commodity-based to manufacturing and services and now, towards a knowledge-based economy. Growth has been driven by a series of structural and market-driven reforms since the 1970s, leveraging its favourable geographical location for export-oriented global trade routes and its relatively open policy to trade and investment.

International trade is an important contributor to Malaysia’s economic growth and development. Malaysia’s resilient record of political and economic stability, coupled with its developed infrastructure and quality workforce, have always made Malaysia an attractive location for foreign investors and global multinational companies.

Cognisant of this, the Government of Malaysia has put in place strong and forward-looking frameworks, policies and roadmaps to ensure both Malaysia and Greater KL progresses towards becoming high-value knowledge and digital economies.

Key Policies that set the Stage
for the Future Greater KL

1. The Shared Prosperity Vision 2030 (SPV2030)

The Shared Prosperity Vision 2030 (SPV2030) aims to provide a decent standard of living to all Malaysians by 2030. This goal is outlined across SPV2030’s seven strategic thrusts: Business & Industry Ecosystem, Key Economic Growth Activities, Human Capital, Labour Market & Compensation of Employees, Social Wellbeing, Regional Inclusion and Social Capital.

2. The Twelfth Malaysia Plan (12MP)

Together with the SPV2030, the Twelfth Malaysia Plan (12MP) guides all of Malaysia’s policies. The 12MP runs concurrently with the first half of the SPV2030 and is slated to be announced in 2021. It will encompass three dimensions: economic empowerment, environmental sustainability and social re-engineering.

3. The National 4IR Policy

The National 4IR Policy is a broad, overarching national policy that drives coherence in transforming the socioeconomic development of the country through ethical use of 4IR technologies, in particular the five foundational 4IR technologies: Artificial Intelligence; Internet of Things; Blockchain; Cloud Computing and Big Data Analytics; Advanced Materials and Technologies.

4. The Malaysia Digital Economy Blueprint (MyDIGITAL)

The Malaysia Digital Economy Blueprint (MyDIGITAL) recognises that 4IR adoption and the growth of the digital economy goes hand-in-hand, and thus works in tandem with the National 4IR Policy to expedite national connectivity and technology adoption to be a technologically-advanced economy. Through MyDIGITAL, the Government of Malaysia aims to transform Malaysia into a digitally-driven, high income nation and a regional leader in the digital economy.

5. The National Investment Aspirations (NIA)

The National Investment Aspirations (NIA) is a forward-looking growth framework that will form the basis for comprehensive reforms of Malaysia’s investment policies. The five NIAs will be integral to enhance the nation’s competitiveness and ensure that Malaysia remains a preferred investment destination.

These aspirations will bear the foundation for Malaysia to become a regional investment hub, which will:

  • increase economic diversity and complexity through the development of sophisticated products and services, with high local R&D and innovation;
  • create high skill jobs to provide better income for Malaysians;
  • expand and integrate domestic linkages into regional and global supply chains, by improving their resiliency;
  • develop new and existing clusters focusing on high productivity sectors, including local products and services; and
  • improve inclusivity to contribute towards the socio-economic developmental agenda.

These national policies will provide Malaysia with clear guidance in the right direction in transforming itself towards being a progressive economy and a prosperous nation, creating a stronger and more resilient Future Greater KL. The country’s strong fundamentals remain intact, including its pro-business philosophies that are key in providing certainty in the business community, making Malaysia an attractive destination for FDI in the long run.

With an eye on future sustainability, Malaysia and Greater KL has started integrating digital technologies into key areas of its economy to support the country’s aims to attract high-tech, high-value and high-impact investments. These include investments in high technology and research and development, focusing on artificial intelligence, Internet of Things (IoT), device design and manufacturing, smart cities, electric vehicles, automation of the manufacturing industry, telecommunications infrastructure, and other catalytic sub-sectors such as aerospace.

Moving forward, Malaysia’s resolve towards being a thriving economy is set to transform the nation further and set a positive momentum for its future growth.