Yang Berbahagia Datuk N. Rajendran
Deputy CEO of MIDA
Ms. Selvarany Rasiah
Chief Commercial Officer of Bursa Malaysia
Members of the Media
Ladies and Gentlemen,
Good morning and a warm welcome to everyone. Thank you for taking the time to join us today. I would like to commend MIDA and BURSA for successfully organising this forum.
Today’s event is undoubtedly in line with the Government’s on-going efforts to increase the competitiveness of our domestic players. We want more local companies to integrate into the international supply chain and become global champions.
As the world is being shaped by new and emerging technologies, domestic players need to align themselves by adopting new processes and different ways of doing business, such as automation, robotics and other smart technologies.
This will require businesses to invest in new technologies, upskilling of talents as well as research and development activities.
Recognising that funding is among the challenges involved in moving up the value chain, I am pleased to commend MIDA for working together with Bursa Malaysia to assist and facilitate companies here in making the transition, particularly by diversifying their financial assets, specifically by being publicly listed.
I trust that this forum will increase the financial literacy and understanding of investors present today towards taking their businesses to the next level.
For entrepreneurs with global ambitions, taking your company public is not just about selling stock but it is also a testament to the success and long term viability of your company.
The process of being listed may be time consuming and complex but the payoff is surely worth the effort. I hope that all of you will take advantage of this event to get your questions answered, and find opportunities to further grow your business.
Ladies and Gentlemen
Being a trading nation that adopts an open economy, high quality foreign direct investment (FDI) continues to be crucial to our economy.
FDI not only creates job opportunities and contributes to the transfer of technology, it also opens doors to our domestic players through the development of the local supply chain.
Looking back over the past five decades, Malaysia's economy has grown by leaps and bounds – transforming from an agriculture-based to a diversified, industrial and service-based economy.
MIDA, which is celebrating its 50th anniversary this year, has been a key contributor to this growth. For example, from 1980 to 2016, MIDA has approved a total of 28,907 manufacturing projects worth RM1.07 trillion. This has created over 3 million job opportunities for the nation.
Domestic companies including SMEs can leverage on this strong foundation built over the years to venture into new growth areas. Just like most countries in the world today, the development of SMEs is key to sustainable economic success. In Malaysia, 97 per cent of business establishments are SMEs.
To achieve growth that is inclusive and sustainable, the Government targets to raise the proportion of domestic investments to 73 per cent of the total. So far, we have been consistent in maintaining that 70-30 ratio. For example, total domestic investments approved in 2016 for the manufacturing, services and primary sectors were 71.6 per cent or RM148.9 billion while foreign investments contributed 28.4 per cent to the total.
While this reflects that our initiatives are working, there is still more to be done. In addition to providing platforms such as conferences, seminars and business meetings to encourage business collaborations between MNCs and SMEs, we continue to support local companies by providing facilities under MITI and its agencies.
MIDA for example, has the Domestic Investment Strategic Fund (DISF). This matching grant could be utilised by local companies to upgrade themselves via acquisition of foreign technology, meeting international standards and obtaining certifications to enable them to be more active in the global value chain.
At the same time, SMEs can also avail themselves to incentives provided by SME Corp, SME Bank as well as MIDF.
As much as we encourage local companies to leverage on these facilities, we are also looking at long term solutions. As such, this collaboration between MIDA and Bursa Malaysia is timely to encourage local companies to look beyond depending on Government facilities and grow your own resources towards sustainable growth.
Ladies and gentlemen,
Based on MIDA’s records, there are more than 300 private companies in Malaysia which meets the prerequisite for listing on Bursa Malaysia’s Main Board.
These companies which have registered uninterrupted profit after tax (PAT) of more than RM20 million for a period of three to five full financial years, have yet to take advantage of being publicly listed.
I am confident that this platform would be a
good opportunity for businesses with global ambitions to gain valuable insights on the benefits, requirements and processes involved in a listing exercise.
I want to once again urge companies to seize this opportunity to leverage on the secure and active trading markets to unlock your business potential.
MITI with MIDA and other agencies will continue to intensify our efforts in providing a more conducive business environment for businesses to thrive and sustain in the long-run.
On that note, I wish you all a productive session ahead. Thank you.