Government Eyes ‘Scorecard’ for High-Quality Investments and Incentives
Collaboration with Government Agencies
The government is exploring the possibility of introducing a clear scorecard focused on high-quality investments and incentives to align with the New Industrial Master Plan 2030 (NIMP 2030), said Deputy Investment, Trade and Industry Minister Liew Chin Tong. He emphasized that this initiative is being carried out in collaboration with Bank Negara Malaysia, the Securities Commission, the Ministry of Investment, Trade, and Industry (Miti), and the Ministry of Finance (MoF).
Objective of the Scorecard Initiative
The aim of this initiative is to ensure that incentivized companies do not need to constantly justify their contributions to Malaysian innovation, technology development, and R&D efforts. "We must focus on building Malaysia’s R&D capabilities, advancing our technological expertise, and funding the potential for innovation in the country," Liew said.
Challenges in the Malaysian Economy
Liew pointed out that over the years, different segments of the Malaysian economy have acted almost in different spheres. "Malaysia Investment Development Authority (Mida) focuses on growing manufacturing, often via foreign direct investment." He also noted that government-linked investment corporations and government-linked corporations mostly shy away from manufacturing. The capital markets have not been at the forefront of manufacturing either.
Growing Malaysian Technology Companies
The third challenge, according to Liew, is to grow Malaysian technology companies, and more importantly, globally relevant Malaysian technology companies. "We must admit that despite having a head start in the semiconductor industry, Taiwan and Shenzhen, Penang and Malaysia have not built their TSMC, Samsung, Huawei, or BYD," he said.
Opportunities for Growth
For Malaysia to reach the next level and to have high yet sustainable growth, the capital market and everyone else will have to collaborate to seize the once-in-a-generation opportunity of the second takeoff to make Malaysia a regional economic powerhouse. The conference explores synergies within the capital market and Islamic capital market to bridge funding gaps for micro, small, and medium entrepreneurs and mid-tier companies.
ESG Disclosure Assessment of Malaysia’s Listed Companies
At the event, the Securities Commission and the World Bank launched a joint report titled "ESG Disclosure Assessment of Malaysia’s Listed Companies and Recommendations for Policy Development," which provides a baseline on environmental, social, and governance reporting practice in Malaysia, offering key insights for companies and investors to enhance sustainability reporting to align with international best practices and remain competitive.
Conclusion
The government’s scorecard initiative aims to ensure that incentivized companies can focus on building Malaysia’s R&D capabilities, advancing its technological expertise, and funding innovation. By addressing current challenges and seizing opportunities for growth, Malaysia can become a regional economic powerhouse.
FAQs
- What is the purpose of the scorecard initiative?
The scorecard initiative aims to ensure that incentivized companies do not need to constantly justify their contributions to Malaysian innovation, technology development, and R&D efforts. - What agencies are involved in the scorecard initiative?
The initiative involves collaboration with Bank Negara Malaysia, the Securities Commission, the Ministry of Investment, Trade, and Industry (Miti), and the Ministry of Finance (MoF). - What are the challenges in the Malaysian economy?
Liew Chin Tong highlighted three challenges: growing manufacturing, growing technology companies, and transforming the capital market to support sustainable growth.