Malaysia invites Indian auto component manufacturers to set up plants

A seminar, titled: ‘Business Opportunities in Malaysia’, organised by the Malaysian Investment Development Autority (India) was held in Bangalore in the south Indian state of Karnataka on January 27, 2014.
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While delivering the keynote address, Minister of International Trade and Industry, Government of Malaysia, Mustapa Mohamed emphasised the need for the Indian auto component manufacturers to look at Malaysia as a manufacturing destination, as the local government is offering incentives to industries, who would want to establish plants in South East Asian Country. The Minister said that the share of auto parts exports by Indian automotive manufacturers, who had set up shops in Malaysia now has only a mere $ 1.5 billion a year. What is more, increasing this share would be the target for the Malaysian government. Mohamed was all praise for Bangalore and said the city was a key entrepreneurial and business hub of South Asia. The delegation led by Mohamed had a lengthy talks with the Government of Karnataka and the potential auto component players eyeing to make inroads in Malaysia.
The Minister said that with a GDP of $ 2.31 trillion, Malaysia was the apt gateway for the Indian auto component manufacturers to foray into destinations such as Thailand, Cambodia, South Korea as well as Japan. In 2013, Malaysia received foreign direct investment up to the tune of $ 13 billion. “Today, manufacturing forms an estimated 27 percent of our GDP. Furthermore, this has resulted in achieving the trade volume of $ 423.9 billion in 2012”, Mohamed said. Besides having Penang as a hub for electrical and electronics, other locations including Iskander, Johor and the Regional Corridor will pave the way for establishing new industries, the Minister pointed out.
Mohamed said that he was satisfied with the progress of Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), inked back in 2011 between the two nations, which had increased the share of Indian investments into Malaysia and vice versa.

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