KUALA LUMPUR (Sept 1): The government's implementation of the New Industrial Masterplan 2030 (NIMP 2030), will require an estimated total investment of RM95 billion through its seven years, to propel the country's economic growth.
Prime Minister Datuk Seri Anwar Ibrahim said at the plan’s launch that the investment would be mainly from the private sector, mobilised from private equity, capital and financial markets.
Through strategies such as increasing economic complexity, strengthening domestic industrial linkages, and positioning Malaysian industries higher in the global value chain, the NIMP 2030 targets to build Malaysia's industrial capacity and resilience for long-term and sustainable growth, he added.
Anwar said close to 10% of the investments would be allocated by the government to help catalyse and incentivise these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund.
"The NIMP 2030 adopts a mission-based approach. It is a horizontal policy with well-defined missions that will galvanise not only the entire manufacturing ecosystem but also the whole nation to drive industrial transformation and realise our vision,” he said at the launch of NIMP 2030, an industrial policy for manufacturing and related services sector on Friday (Sept 1).
He added with a short window of seven years, the NIMP 2030 must take a transformative and expeditious approach to achieve the goals, adding based on rigorous assessments and extensive consultations, four missions have been formulated to drive industry transformation at a large scale.
Anwar said NIMP 2030's first mission is to advance economic complexity, where industries will be encouraged to innovate and produce more sophisticated products. This is followed by the second mission to embrace technology and digital transformation to dive into innovating and enhance productivity; third mission focuses on pushing to net zero through sustainable practices and green initiatives, and the last mission is to safeguard the economic security and inclusivity via enabling supply chain security.
“To provide the impetus for immediate roll-out of NIMP implementation, several mission-based projects (MBPs) have been identified. These ground-running projects are expected to accelerate the development of an inclusive ecosystem that integrates SMEs into the value chain and rally the entire industry.,” he added.
Anwar is confident that the strategies in the NIMP 2030 will yield meaningful outcomes and produce a big impact to the national economy. Specifically, the NIMP 2030 aims to increase the manufacturing's value-added to RM587.5 billion by 2030, growing by 6.5% from what it is today.
This indicates an increase of 61%, derived by NIMP 2030 interventions for high-impact sectors — E&E, Chemical, EV, Aerospace, Pharmaceutical and Advanced Materials, such as minerals and metal.
He added in terms of employment, a projected growth at 2.3% from 2023 is expected, providing a livelihood for 3.3 million persons by 2030.
“The industry's growing employment trajectory is due to the creation of high-skilled jobs as the country advances towards higher value-added activities and improvement in automation and technological advancements,” said PM.
Most importantly, he added, NIMP's interventions are expected to grow the median salary in the manufacturing sector by 9.6%, to reach RM4,510 from RM1,976, which is below the national average despite the sector’s dominant role in the national gross domestic product.
“This 128% increase from 2021 is driven by the shift of the industry towards higher value-added activities and high-skilled job opportunities created,” Anwar said.
Other incentives in relation to the NIMP 2030 will be announced during the tabling of Budget 2024.