In a statement, it said the New Industrial Master Plan 2030 (NIMP 2030) is expected to attract more foreign investments, and attaining net benefits from external collaborations towards higher value-added exports should be prioritised.

MARC noted that the materialisation of foreign investments over time will raise Malaysia’s net foreign direct investment (FDI) inflows-to-GDP ratio, which, at 3.6% as of 2022, is ahead of most of its peers in the region.

“Facilitating technological diffusion requires absorptive capacity supported by well-designed investment policies, high-quality infrastructure, and continuous human capital investment.

“This is required to facilitate the timely implementation of approximately RM188 billion worth of approved foreign investments in 2023, a 15.3% increase over those recorded in 2022,” it said.

MARC said Malaysia’s medium and high-tech exports as a share of total manufacturing exports declined from 76.4% in 2000 to 62% in 2021, due to regional competition.

Additionally, it said there has been a decline in the attractiveness of Malaysia’s exports, alongside receding interest in the country as a base for outsourcing.

“In response to these challenges, the NIMP 2030 outlines medium-term strategies to progress towards producing high-value and competitive goods, building upon past industrial master plans that have developed a mature yet recently plateaued electronic industry.

“While the goal includes increased employment, higher wages, and greater value-added manufacturing sector, successful execution remains a key challenge,” it said.