MCA Leader: DDI is also key to economic growth and employment

PETALING JAYA: Government-linked investment companies (GLICs) should actively pursue domestic direct investment (DDI) projects to boost the country’s economy, according to MCA deputy chairman Datuk Lawrence Low (pic).

He added that this is in line with the Ministry of Finance’s efforts to leverage the DDI to strengthen Malaysia’s resilience in the face of global uncertainty.

He said the Gear-Up programme, launched by the ministry to synchronise efforts by government-linked entities to boost growth in key sectors of the economy, has come at the right time as DDI is crucial for economic growth, innovation and job creation.

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

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

He also suggested that the government focus on small and medium-sized enterprises (SMEs) by providing them with necessary financial support and developing improved policies, such as tax incentives, to stimulate investment in innovation and high-value sectors.

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

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

“By focusing on domestic investment, we can reduce dependence on external factors, support new economic models and increase the competitiveness of local businesses,” he said.

It was recently announced that six major GLIC firms will jointly invest RM120 billion in DDI over the next five years, focusing on high-growth and high-value (HGHV) industries such as energy transition and advanced manufacturing sectors, particularly the semiconductor industry.

These investments will cover companies at various stages of development, from start-ups to mid-sized enterprises and venture capital firms.

Low, who is also the chairman of the Economic Affairs and SMEs Committee, said the committee held a dialogue with 12 chambers of commerce to discuss the challenges faced by SMEs and then made recommendations to ensure they receive adequate support and financial assistance.

“As Chair of the Commission, I believe that the DDI is essential to increasing economic autonomy and supporting micro and small enterprises.

“We also hope that the government will introduce more solutions, such as tax incentives and financial facilities, to encourage more companies to invest in innovation and HGHV areas.

“This will not only create more high-quality jobs, but also improve the overall economic structure and take our economy to the next level.

“The MCA Economic and SME Affairs Committee will continue to make recommendations to support Malaysia’s economic and business development,” he added.