InvestKL has successfully attracted 73 MNCs with approved and committed investments of RM11.07 billion, as well as the creation of more than 10,971 regional high-skilled jobs since 2011.
These 73 MNCs comprise 73% of InvestKL’s 2020 mandate of 100 MNCs and sets the corporation firmly on track to achieve its target in three years’ time.
In the seven years from 2011-2017, RM4.5 billion or 41% of the RM11.07 billion investments have been realised. In addition, 5,831 or 53% of the 10,971 high-skilled regional jobs are already on the payroll. Of these, 80% employed are Malaysians with an average annual income of RM114,676 or US$29,705 based on the exchange rate on 28th March 2018.
Big names, big businesses, big opportunities
For 2018, InvestKL’s target is to attract 10 MNCs, Chief Executive Officer, Datuk Zainal Amanshah told the media during the annual briefing on the corporation’s performance.
“We remained focus on attracting high value and high skilled investments. This year, we aim to attract more MNCs who have access to the digital space and advanced technologies, Internet of Things or Industry 4.0 technologies, such as artificial intelligence, big data analytics and cyber security,” he said.
He also said, “Last year, we successfully attracted investments from 12 of the world’s most valuable companies, bringing our tally to 73 MNCs in seven years. These are what we call the 3Bs - big names, with big businesses providing big opportunities.
“These industry leaders have established principal hubs, global business services, regional headquarters and regional centre of excellence in KL. The opportunities they offer are transformative and empowering, from regional jobs, upskilling our small and medium-sized
enterprises (SMEs), multiplier effect on the local economy and collaboration with local universities to develop an industry-ready talent pool.”
“With key executives who make investment and regional expansion decisions based in KL, our people also have the added advantage of learning from the best, and accelerating their professional development,” he added.
In addition, the MNC environment is conducive to developing talents who are open-minded, innovative and savvy about the global business environment as these MNCs will continue to be the global leaders, pushing boundaries and bringing about breakthroughs.
Significantly in 2017, investments by Fortune 500 MNCs such as the world leader in gases, technologies and services for industry and health, Air Liquide; global insurer, AXA; and global leader in flavours and fragrances, Givaudan, illustrated the abilities of Malaysian talent to be at the forefront of innovation and digitalisation.
“Air Liquide’s Smart Innovative Operations Centre, AXA’s Business Services and IT Hub in Asia and Givaudan Business Solutions Asia Pacific are strong endorsements of the Malaysian ecosystem and a testament that our talent are of high-quality and global standards. These will help boost Malaysia’s efforts to become a regional business, innovation and talent hub,” he added.
The other MNCs which have established regional hubs in KL in 2017 include Fortune 500 companies, PPG Industries (U.S.); SK Mobility (Korea); and Allianz (Germany), Forbes Global 2000 corporations, Givaudan (Switzerland) and Veolia (France); as well as hidden champions, Haskell (U.S.); Felio Sylvania (China); Dimension Data (South Africa); and Peri (Germany).
Beneficial ripple effect for local businesses
“The MNCs’ investments have created a ripple effect on our local economy. The real estate, hospitality, education, medical, tourism, and entertainment industries have all benefitted with the real estate sector having enjoyed an estimated RM49.4 million in new office space rentals since 2011,” Zainal said.
He also said local companies and SMEs are reaping the benefits of having global MNCs in town. “Revenues, number of employees, and the scale of businesses have grown. At the same time, partnerships with MNCs have enabled some of our SMEs to compete on a global field as they benefit from working on a breadth of international projects,” he added.
MNCs are also assisting local companies to catalyse the development of their digital business, and mobilise digital technologies to build capabilities as well as boost productivity.
All these were showcased at InvestKL’s Innovation Showcase 2018 themed ‘Impacting Malaysian Lives’ which was graced by Prime Minister Y.A.B Dato’ Sri Mohd Najib Tun Razak.
Kuala Lumpur: an ideal city for regional expansion
Zainal also reiterated that Malaysia remained a key investment destination. “Our country has been stable with excellent infrastructure and talent pool as well as clear policies. These are the essential factors investors look at which differentiates us from other cities,” he said.
In addition, Malaysia is at the forefront of building a digital economy in ASEAN as the govenment rolls out digital blueprints, online e-commerce and the world’s first Digital Free-Trade Zone.
“Kuala Lumpur is strategically located in Asean and the government’s national digital economy initiative gives us an added edge, on top of the city’s compelling propositions. We have become more business friendly, thanks to the collective efforts of our key stakeholders. More initiatives are underway as we strive to ensure KL becomes one of the easiest cities globally to do business.
“The city is also becoming more people friendly. The Federal Territorries (FT) Ministry and the KL City Hall (DBKL) have made substantial allocations this year to ensure a cleaner, greener city with ample parks and recreational facilities; more bicycle and pedestrian friendly walkways and paths, and even easier access to the integrated public transport system. Our city has great potential and we are getting there,” he also said.
In the Expat City Ranking 2017, Malaysia was ranked 15th as the best country to stay and work, moving up 23 places from the 38th spot in 2016. This was also echoed by Mercer’s 2017 Cost of Living Survey where Malaysia was ranked 165th, one of the world’s least expensive cities for expatriates.
InvestKL’s stakeholders include Federal Territory Ministry, Ministry of International Trade and Industry, DBKL, Malaysian Investment Development Authority, Malaysia Digital Economy Corporation, Immigration, Customs departments and other investment promotion agencies.
About InvestKL: An Investment Promotion Agency (IPA) mandated by the Malaysian government to attract large Multinationals (MNCs) to invest in Greater Kuala Lumpur (GKL) to set up their regional hub or HQ. GKL is among the top 10 prospective global investment destination for MNCs; 5th most cost-competitive global city for businesses; and 2nd in Southeast Asia for competitiveness and ease of doing business.