KUALA LUMPUR, July 26 2017 (Bernama) - A list of domestic mega projects that are already in progress or to be started soon, have attracted an inflow of foreign direct investments (FDIs), which will create high value and ready jobs in future for youths , particularly in the capital intensive sector.
For instance, Malaysia's mega infrastructure projects are expected to boost the country's economy by more than 50 per cent to RM2 trillion in the next seven to eight years, which will drive job creation in high-value services and knowledge intensive industries.
MIDF Amanah Investment Bank Bhd's Chief Economist Dr Kamaruddin Mohd Nor said for the first quarter of 2017, Malaysia's FDI had ballooned to RM17 billion and was the largest value since December 2012.
Comparatively, Malaysia recorded FDI of RM13 billion in the 4Q16.
"Theoretically, FDIs have a direct and indirect impact on job creation. FDIs into a sector help generate jobs for it and also in the ancillary sectors. The spillover effect will in turn help boost employment and consumption," he told Bernama.
Major investments by foreign companies in Malaysia include China's Huawei which is investing RM2.2 billion for its global operations headquarters, data hosting and global training centres, while employing more than 2,370 people.
Saudi Aramco in turn is investing US$7 billion for a 50 per cent stake in the Petronas Refinery and Petrochemical Integrated Development in Johor, while London-based HSBC's future regional headquarters at the Tun Razak Exchange here will cost over RM1 billion to build.
Under the National Transformation Plan (NTP), the government has embarked on bold moves and tough decision making towards ensuring Malaysia stays on track to becoming a high-income advanced economy.
At the same time, the NTP has contributed towards making Malaysia an attractive destination for foreign investors, resulting in jobs creation for the people.
Under the NTP, the average growth rate of the gross domestic product (GDP) since its implementation has been maintained at above five per cent, with inflation and unemployment kept stable and low, the gross national income per capita having increased by more than 50 per cent, as private investments improved.
Business regulations have been upgraded as well, with Malaysia emerging as a country with a better pool of an educated workforce.
Prime Minster Datuk Seri Najib Tun Razak in his keynote address at Invest Malaysia 2017, noted that between 2009 and 2016, the Gross National Income (GNI) increased by nearly 50 per cent, and GNI per capita using the Atlas method, increased to US$9,850.
Based on the World Bank's latest high income threshold of US$12,235, Malaysia had narrowed the gap towards the high income target from 33 per cent to 19 per cent and at the same time, 2.26 million jobs had also been created.
That, represents 69 per cent of the 3.3 million target the government wants to reach by 2020.