INVEST Selangor Bhd, the investment arm of the Selangor state government, remains cautiously optimistic on the state’s economic outlook for 2022 as COVID-19 has brought many new challenges, particularly to the supply chain of many industries.
Chief executive officer Datuk Hasan Azhari Idris said the limited supply of raw materials, parts and components – especially in the electrical and electronics industries – has stalled the delivery of new orders in many electronic items globally.
“However, we remain positive but cautious in projecting the state’s economic growth for 2022,” he told Bernama on Wednesday (Dec 1).
Hasan Azhari said Selangor is the biggest contributor to Malaysia’s gross domestic product (GDP), contributing an average of 24% per annum, therefore the state’s economic growth has a direct impact on the nation’s overall economic growth.
Last year, the state recorded a slower economic growth of 2.09% amidst the overall national GDP contraction of 5.6% due to the pandemic and the movement control order.
He said despite the pandemic situation that started in early 2020, Selangor managed to secure the top spot as Malaysia’s best investment destination for the manufacturing sector, with a total of RM18.4 bil worth of investments last year.
“For 2021, our initial target for approved investments in the manufacturing sector is RM12 bil, however, we are re-evaluating this as the unpredictability of the pandemic, the spread of the new variants and prolonged restrictions of economic and travel activities affected a lot of our plans for 2021.
“Our hope is that things will ease up in 2022, and we would be able to plan our engagement and promotional activities better,” said Hasan Azhari.
Recently, Menteri Besar Datuk Seri Amirudin Shari said according to the Malaysian Investment Development Authority, Selangor recorded a higher investment value of RM4.64 bil from January to June 2021 (1H2021), compared with RM3.39 bil in 1H2020, while the number of manufacturing projects approved was 122, similar to last year.
He said 9,179 jobs were created during the period, while local and foreign investments rose to RM4.06 bil and RM576.98 mil, respectively, compared with 5,001 jobs created, RM1.82 bil local investments and RM1.55 bil foreign investments in 1H2020. – Dec 1, 2021
Photo credit: SelangorJournal
