FOREIGN direct investment (FDI) in Selangor is expected to be halved this year to RM8.5 bil compared with RM17 bil last year due to weak global economic sentiment.
The FDI target is a downward revision from the state’s earlier forecast of RM12 bil in five main sectors, including electrical and electronics, food and beverages, and machinery.
Selangor senior executive councillor and chairman of the Standing Committees for Investment, Industry and Commerce, and Small and Medium Enterprise Teng Chang Khim said the revised target was in line with global sentiment due to the Covid-19 pandemic, during which countries globally witnessed the same trend.
“As of June 30, the Malaysian Investment Development Authority (MIDA) has approved a total of RM3.3 bil worth of investment in Selangor.
We hope to have an approved investment of RM8.5 bil by year-end,” he said at the launch of Virtual SIBS 2020.
Teng added that even though the target was lower than expected, it was relatively well due to the existing market conditions.
“With three months of Movement Control Order (MCO) in place previously, and the current conditional MCO (CMCO) for the whole state of Selangor, we do not know what lies beyond us for now,” he noted.
Teng went on to say the state government was unable to forecast the outlook for 2021, as uncertainty continued to linger.
“The CMCO will surely leave some impact. Our gross domestic product (GDP) forecast will be adjusted by another contraction of 4.4%, which is a negative growth.
“Despite the challenges and less encouraging economic outlook, Selangor continues to take on the role of a regional economic powerhouse as it contributes 24% to Malaysia’s GDP annually,” stated Teng.
However, he remarked that the CMCO restricted activities rather than movement.
“All businesses and economic activities are still allowed to be carried out. I hope this will minimise the impact on economic development,” he said.
Meanwhile, Selangor Menteri Besar Amirudin Shari today launched the Virtual SIBS 2020, which runs from Oct 14 to Oct 17.
Offering borderless opportunities, the Virtual SIBS brings together global brands and industry players from around the world to help business players reset and reboot while providing valuable knowledge-sharing, networking and business matching for all trade visitors.
It is divided into three categories, namely the Selangor International Expo (SIE), Selangor ASEAN Business Conference, and Smart City and Digital Economy Convention.
Amirudin said: “Over the years, this administration has braved strong winds, and risen to challenges to make Selangor the preferred destination to invest and do business in the region. Hence, the Covid-19 pandemic is just another challenge that we have to go through along the way.
“Insya Allah, we will be able to make it, with the strong support from everyone.”
“Offering a bigger and longer access up to Oct 2021, Virtual SIBS will enable participants to tap into various opportunities that were originally developed for an onsite experience, in a more convenient way, where everyone can access from the comfort of their own home,” he added.
The Virtual SIBS 2020 will continue until 2021, hence allowing entrepreneurs to continue to utilise the platform after the four days of the physical event.
Next year, the event is scheduled to return on Oct 7-10 2021 at Kuala Lumpur Convention Centre, Kuala Lumpur. – Oct 14, 2020, Bernama
