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Thursday, 2 March 2017

(The Star) InvestKL expects to attract at least 10 MNCs

PUTRAJAYA: InvestKL expects to attract at least 10 multinational corporations (MNCs) to set up their regional establishments in greater Kuala Lumpur this year, amid an anticipated challenging global economy.

InvestKL chief executive officer Datuk Zainal Amanshah said the target, albeit lower than the target set last year, is in line with the looming uncertainties in the prospects of global markets.

InvestKL, which has been mandated by the government to attract and facilitate large foreign multinational investments into greater Kuala Lumpur/Klang Valley, targets to attract a total of 100 MNCs by 2020.

In 2016, InvestKL aimed to attract at least 13 MNCs to establish their regional presence in greater Kuala Lumpur.

“Over the past 18 months, there were many unprecedented uncertainties that arose within the global markets. We also noticed that the decision cycle of MNCs was even longer in recent times.

“Thus, we have finalised a more realistic and conservative target of 10 MNCs in 2017, considering the global uncertainties and a more cautionary-type approach by the MNCs,” said Zainal, adding that the reduction in target is not related to Malaysia’s economic conditions.

Zainal was speaking to reporters after a briefing on InvestKL’s performance and outlook.

Last year, InvestKL successfully attracted 13 MNCs with approved and committed investments of RM3bil as well as creation of 1,863 regional jobs. Five of the MNCs were from the continent of Europe, five from Asia-Pacific and Gulf regions and the rest from the US.

Since its inception in July 2011 till last year, InvestKL has attracted 64 MNCs with approved and committed investments of about RM8.9bil, as well as creation of 9,335 regional high-skilled jobs.

Of the approved and committed investments, 36% or RM3.16bil has been realised thus far. As at end-2016, 56% of the 9,335 high-skilled regional jobs created by the investments have been on payroll.

As of the fourth quarter of 2016, 83% of the hired individuals were locals, with close to 60% of them serving in senior executive positions and above.

“Today, Kuala Lumpur is home to global corporations such as US-headquartered Oracle and Honeywell, top French e-payment services company Worldline, Germany’s hidden champion and industrial technology provider Voith, as well as Japan’s leading creative content publisher and distributor Kadokawa.

“These MNCs are actively collaborating with local companies, developing value-added services for domestic and export markets, creating high-paying regional jobs and transferring skills to Malaysians,” Zainal said.

To date, 44% of the 64 MNCs originate from the continent of Europe, 31% from the Americas while 25% from the Asia-Pacific region.

“Since 2011, European companies have predominantly shown interest to invest in greater Kuala Lumpur,” said Zainal.