Perak boasts a business-friendly investment environment, and the state is upping its competitive edge to lure investors in the face of emerging competitors.
Invest Perak Management Center chief executive officer Datuk Mohammad Hafni Ibrahim is the man behind the state’s successful bids in getting investors to come to the “Silver State.”
The Invest Perak Management Center he leads offers a one-stop support center with the principal objective of promoting and coordinating the state’s industrial development while making arrangements for business and investment services for potential investors from within and without the country to ensure speedy and effective government deliverance.
Hafni has over the years visited a large number of countries in a bid to bring investors to Perak, and has helped Perak seal its position as one of the country’s top five trade exporting states.
Based on projections, the manufacturing industry in Perak will contribute RM1,273 billion or 25% to the state’s total GDP output of RM508.8 billion by 2020. The state of Perak is expected to register an average of 5% economic growth over the next few years.
In view of this, InvestPerak has identified specific industrial sectors and will lure the potential high-impact investors to set up their operating bases in the state.
Hafni says Invest Perak will continue to provide assistance to the existing investors in the state while encouraging them to expand and diversify their business scopes.
Like many other states in Malaysia, Perak boasts a business-friendly environment for investors. As for the increasingly stiff competition from rival areas, Hafni says Perak will have to enhance its competitiveness in order to attract local and oversea investors to set up their manufacturing plants in the state.
Industrial parks a hit among foreign investors
Hafni goes on to say that the Perak Industrial Development Masterplan has proposed some solutions to revitalize the state’s economy and to turn the state into a developed and industrialized state through concerted effort of various state government agencies.
“Every country in this world is working hard to lure foreign investments, and to some extent this will pose some challenges to us.”
InvestPerak will be making proposal to the state government to adopt some compromise solutions, including optimizing the state’s investment policies while providing financial and non-financial incentives to get past the difficult times now.
He cites the example of Vale S.A. of Brazil which has set up a mammoth regional iron ore distribution hub in Perak, and has helped expand the state’s untapped industrial and economic potentials. As we all know, iron and steel industry was to catalyst in the massive industrial development of the United States, Europe, Japan, China and South Korea.
Hafni says Perak is fully dedicated to the exploitation of iron ore brought about by Vale S.A.. The increasing demand for local natural resources such as limestone as well as the state’s strategic location along the Straits of Malacca, will give Perak a forceful push in exploring iron-based manufacturing and other fringe industries.
As such, InvestPerak has successfully roped in a significant iron manufacturer to set up operating base in Perak just next to the proposed Perak Eco Center project.
Although Perak is located on the rapidly developing west coast of Malaysia, it still has plenty of untapped land resources for the private sector to take part in the state’s industrial development projects. The state’s many industrial parks have become favorite destinations among local and foreign investors. Owing to rising demand, the state government has decided to give local multinational corporations and private developers a free hand to involve in the construction of modern industrial park projects in order to attract more investors to the state.
These developers will also be allowed to manage their own industrial parks or even request the state government to provide them with incentives such as more competitive land conversion fees in a bid to reduce their business cost.
12 areas identified under the Perak Industrial Development Masterplan:
- Iron and steel-related industries
- Natural iron ore
- Oil and gas-related engineering and maritime engineering
- Mechanical molding
- Transportation equipment and parts
- Electrical and electronic industry
- Manufacturing-related services and supporting industries
- Renewable energy-related industries
- Medical and research equipment
- Halal-certified industries
- 12. Petrochemical industry and distribution centers.