Amidst calls for better support to Malaysian businesses, specifically small- and medium-sized enterprises (SMEs), and streamlining mechanismes that boost export trading, the Malaysian Investment Development Authority (MIDA) introduced three new funding faciliations.
The three — Domestic Investment Accelerator Fund (DIAF), MADANI Smart Automation Grant (SAG MADANI), and the Foreign Investment Accelerator Fund (FIAF) — are designed to drive forward Malaysia’s economic landscape.
With DIAG and SAG MADANI, MIDA wants to provide much-needed support that manufacturers and service providers have been clamouring for.
“(These two initiatives) have been strategically designed to offer a variety of tailored solutions that assist in the development of high-value economic activities for (both growth sectors). They will specifically encourage (SMEs) to upgrade their capabilities and expand their scope of operations,” MIDA shared in its press release.
DIAF will also specifically address the growing interest that domestic direct investments (DDIs) have received recently.
For the investment arm of the government, these two initiatives are aligned with its commitment to foster innovation, accelerate digitalisation, and enable SMEs to adopt ESG-focused best practices.
“The realisation of the New Industrial Master Plan 2030 (NIMP 2030) vision, which characterises Malaysia’s economic transformation with innovation, technology, and economic complexity, will require strong enablers. One such aspect is funding. MIDA’s newly launched funds are the first concrete steps to support our industries’ efforts to upgrade their capacities for higher value economic activities and facilitating knowledge transfer,” said Tengku Zafrul Abdul Aziz, Malaysia Minister of Finance.
For him, as efforts are in place to continue the nurturing of local talent, fostering partnerships, and promoting technological advancements, it will not just catalyse sustainable economic growth, but also set the stage for Malaysia to be at the forefront of the global industrial landscape.
The FIAF, meanwhile, will prioritise targeted and selective investments that yield high quality and generate positive impact from foreign sources. It can achieve this as it is specifically tailored around encouraging multi-natinal companies that are operating in Malaysia to faciliate seamless knowledge transfer and develop comprehensive training activities for Malaysian talents.
MIDA believed that such an approach will nurture a highly-slilled workforce that will not only gain a high income, but also preserve Malaysia’s industrial competitiveness at regional and global stages.
Arham Abdul Rahman, CEO, MIDA also noted how these initiatives will also propel Malaysia towards being a sustainable and dynamic growth economy.
“Our shared mission is to cultivate a thriving economic landscape and we will be nurturing a brighter future for Malaysia with these initiatives. (Adding on the full) support of MIDA, we will empower businesses, especially SMEs and mid-tier corporations, to innovate, expand, and integrate themselves into the technologically evolving global supply chain,” he added.
Details of each financial support initiative will be made available on the MIDA webportal soon. Those keen on applying for the grant and funding support should check here regularly for the digital application forms.