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The Malaysian Investment Development Authority (MIDA) has introduced a suite of funding facilitation programs with a strong emphasis on technology, aimed at driving Malaysia’s industrial growth and economic development. These initiatives, namely the Domestic Investment Accelerator Fund (DIAF), the MADANI Smart Automation Grant (SAG MADANI), and the Foreign Investment Accelerator Fund (FIAF) are poised to play a pivotal role in advancing Malaysia’s technological landscape and fostering economic prosperity.
DIAF and SAG MADANI have been strategically crafted to provide a diverse range of tailored solutions, primarily focusing on the development of high-value economic activities within the local technology manufacturing and service provider sectors. These initiatives are designed to encourage local businesses to upgrade their capabilities and expand their operations, aligning closely with Malaysia’s commitment to fostering innovation, automation, digitalisation, and the adoption of sustainable Environmental, Social, and Governance (ESG) practices.
MIDA’s commitment extends to prioritising selective investments that yield substantial impact from foreign sources. In this vein, FIAF is a tailored program designed to support multinational companies (MNCs) operating in Malaysia. Its primary objective is to facilitate the seamless transfer of cutting-edge technological know-how within the high-technology sector through research and development (R&D) initiatives and comprehensive training activities. This strategic approach aims to cultivate a highly skilled and high-income domestic workforce while preserving Malaysia’s competitiveness in a continually evolving global industrial landscape.
The Minister of Investment, Trade, and Industry (MITI) underscored the significance of these funding initiatives in realising the vision set forth in the New Industrial Master Plan 2030. This vision entails transforming Malaysia’s industrial landscape to be characterised by innovation, technology, and economic complexity, and it necessitates strong enablers, including funding support.
The launch of MIDA’s funding programs represents a concrete step toward supporting industries in enhancing their capacity for higher-value economic activities and facilitating knowledge transfer from foreign investors to domestic companies.
By nurturing local talent, fostering partnerships, and promoting technological advancement, these initiatives not only catalyse sustainable economic growth but also position Malaysia to lead the global industrial landscape by 2030 and beyond, while ensuring the prosperity of its businesses and people.
The CEO of MIDA emphasised that DIAF, FIAF, and SAG MADANI are more than just financial programs; they serve as powerful catalysts propelling Malaysia towards the vision of a sustainable and dynamic tech-centric industrial ecosystem. The shared mission is to cultivate a thriving economic landscape, and with these initiatives, businesses, especially local Small and Medium-sized Enterprises (SMEs) and Mid-Tier Companies, are empowered to innovate, expand, integrate into the technologically evolving global supply chain, and actively contribute to the nation’s technological progress. The support of MIDA through these funds has the potential to create a brighter future for Malaysia.
The Domestic Investment Accelerator Fund (DIAF) is a crucial component of MIDA’s funding facilitation initiatives. It has been strategically designed to provide tailored financial solutions to promote high-value economic activities within the domestic technology manufacturing and service provider sectors.
This program encourages local businesses to invest in upgrading their capabilities, expand their operations, and align with Malaysia’s commitment to fostering innovation, automation, digitalisation, and the adoption of sustainable ESG practices. With DIAF, local manufacturers and service providers will have access to the financial support they need to thrive in the fast-evolving tech landscape.
SAG MADANI, another significant initiative by MIDA, aims to further enhance the technological landscape in Malaysia. This program offers grants and incentives for smart automation projects that can drive efficiency, productivity, and innovation in various industries. By encouraging the adoption of smart automation technologies, MIDA seeks to position Malaysia as a hub for cutting-edge technological advancements, supporting businesses in their journey towards greater competitiveness and sustainability.
The third component, the Foreign Investment Accelerator Fund (FIAF), is tailored for multinational companies (MNCs) operating in Malaysia. FIAF plays a pivotal role in facilitating the transfer of advanced technological knowledge within the high-technology sector through research and development (R&D) initiatives and comprehensive training activities. This strategic approach aims to not only attract high-tech investments but also nurture a highly skilled and high-income local workforce. By fostering partnerships between foreign and domestic entities, FIAF contributes to Malaysia’s ability to remain competitive and innovative in an ever-changing global industrial landscape.
OpenGov Asia reported that a U.S.-based player in the realm of advanced technology and innovation is embarking on a significant expansion venture into Malaysia. The CEO of the enterprise unveiled an ambitious strategy during a meeting with Malaysia’s Minister of Investment, Trade, and Industry in New York City, aiming to invest a substantial sum exceeding RM2 billion over the span of seven years.
The construction of a cutting-edge manufacturing facility is already underway, which will serve a dual purpose as a global research and development hub, focusing on pioneering technology platforms. By the year 2024, this organisation foresees a pivotal role in augmenting production capacity and accommodating the ever-evolving demands of its expansive worldwide clientele.
