PETALING JAYA: Government-linked investment companies (GLICs) should actively push for domestic direct investment (DDI) projects to boost the country’s economy, says MCA vice-president Datuk Lawrence Low (pic).

He said this is in line with the Finance Ministry’s efforts to leverage DDI to strengthen Malaysia’s resilience amid global uncertainties.

He said the Gear-Up programme, launched by the ministry to synergise efforts across government-linked entities to catalyse growth in key economic sectors, was timely since DDI was crucial for economic growth, innovation and job creation.

“More GLICs should participate in promoting DDI projects to stimulate the domestic economy, especially during the current economic downturn.

“Strong infrastructure development is crucial for implementing investment plans and attracting both domestic and international investors, while supporting overall economic recovery and growth,” said Low in a statement yesterday.

He also suggested the government focus on small and medium enterprises (SMEs) by providing the necessary financial support and developing refined policies like tax incentives to spur investment in innovation and high-value sectors.

“This will create quality jobs and improve the economic structure,” he added.

Low said while foreign direct investment (FDI) is important, DDI should also be emphasised as a key driver of economic advancement.

“By focusing on domestic investments, we can lower dependence on external factors, foster new economic models, and boost local business competitiveness,” he said.

It was recently announced that six major GLICs would jointly invest RM120bil in DDI over the next five years, focusing on high-growth and high-value (HGHV) industries such as the energy transition and advanced manufacturing sectors, especially in the semiconductor industry.

These investments would cover businesses at various stages including startups, as well as medium-sized enterprises and venture capital firms.

Low, who is also the party’s economic and SME affairs committee chairman, said the committee had held a dialogue with 12 chambers of commerce to discuss challenges faced by SMEs, then drafted recommendations to ensure these entities receive adequate support and financial aid.

“As the committee’s chairman, I see DDI as essential to expanding economic autonomy and supporting micro and small enterprises.

“We also hope the government will come out with more policies such as tax incentives and financing conveniences to encourage more businesses to invest in innovation and HGHV areas.

“This not only will create more high-quality job opportunities, it will also improve the overall economic structure and propel our economy to a higher level.

“The MCA economic and SME affairs committee will continue to offer recommendations to support Malaysia’s economic and business development,” he added.

https://www.thestar.com.my/news/nation/2024/08/11/mca-leader-ddi-also-key-for-economic-growth-jobs