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BIZNET: Why are investors attracted to Selangor?
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SINON:
The State is strategically located and well endowed with natural resources. Its infrastructure is modern and sophisticated. Selangor is home to several mega projects including components (4.3 billion), non-metal industries (RM3.6 billion) and petroleum and coal industries (RM3.2 billion).
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BIZNET: What is offered in terms of services for new investors?
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SINON:
Apart from logistical, infrastructure and utility facilities, the State has established a one-stop centre under the Selangor State Investment Centre through which it undertakes to overcome any problems and bureaucratic delays that investors may face. The officers are empowered to seek the help of the highest authorities in the midst of re-organizing the industrial sites. We plan to have specific industries in "clusters" which will allow them better access to specific infrastructure or services which are readily available nearby. This cluster concept will ensure that industries with similar technologies can mushroom within the same area. At the same time we are opening new industrial parks with a view to ensuring that support industries will emerge within close range of the major projects. This comprehensive approach will ensure that as Malaysia moves into the new millennium, its industries which are currently spread out all over the State will be re-organised.
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BIZNET: Is the clustering concept limited only to high-tech industries?
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SINON:
The concept will be implemented for all types of industries. There are already industrial parks specifically devoted to small and medium industries and more will be developed to cater for specific types of businesses. This is to ensure an efficient system for the manufacture of parts, components and provision of services to the main industries.
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BIZNET: How does Selangor go about promoting the State's Investment opportunities?
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SINON:
The present economic situation has curtailed our promotional activities cutting down on the number of trade missions we sent abroad but we will soon be intensifying this. We have also begun a series of discussions with established investment promotional organisations abroad. With this, we hope to promote collaboration between SSIC and other similar overseas organisations. The networking can provide long term benefits apart from ensuring that we get first choice for new ventures.
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BIZNET: How far has this programme progressed?
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SINON:
We are currently holding talks with Japan, South Korea and some European countries and plan to sign some memoranda of understanding. This will allow better exposure of our facilities and services to a wider range of investors and allow us to embark on long term commitments.
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BIZNET: In what specific sectors is Selangor keen for investments?
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SINON:
We invite all types of investments with open arms but in view of Malaysia's Vision 2020, we are looking forward to high-tech and sophisticated industries. We are also looking for industries which will encourage technology transfer to allow us to embark on a clean and environmentally-friendly industrial sector. With this in mind certain industries such as waste treatment, recycling and industries which can help improve the environment are sought after.
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BIZNET: Why focus on waste treatment?
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SINON:
Most areas of Selangor are densely populated and it is important that we address the problem of disposing solid and liquid wastes in an environmental friendly manner. We also need to acquire the technology to efficiently clean up our rivers and ponds. We have established a Water Management Board which is the first in the country to be responsible for rivers, ponds and underground water sources to ensure the State's ecology is preserved.
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BIZNET: In what other sectors is the state keen to attract investment?
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SINON:
Also in the pipeline are industries to produce pharmaceuticals and herbal products with the establishment of a centre of excellence in Carey Islands. Investment in any new sectors which can further contribute to the growth of the economy are also welcome. There are also plans to expand the cosmetics industry which can help save much foreign exchange since a huge volume of these products is imported.
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BIZNET: What about the tourism sector?
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SINON:
It is the second most important sector after manufacturing. In the next few years the authorities will focus on improving the Meetings, Incentives, Conventions and Exhibitions (MICE) sector. We have the potential to become a premier MICE centre. We are working out a master plan so that we can designate certain months of the year to certain products so that there will be activities throughout the year. There will be emphasis on eco-tourism in view of the large tracts of wetlands, nature parks and other areas available in the State. Recreational activities including sporting activities will be encouraged and developed to bring in more tourists.
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BIZNET: In these lean times how does the State plan to reduce unemployment?
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SINON:
Since the focus is on high-tech and capital intensive investment, the state will depend on the expansion of Small and Medium Scale Industries and Enterprises to absorb any excess labour. We plan to create job opportunities by promoting independent service providers and contract manufacturers.
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BIZNET: In which sector would this be?
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SINON:
The State is looking at port related services, the aviation, IT and hospitality sectors. We are looking at several proposals including holding discussions with the Malaysia Industry Government Group for High Technology (MIGHT) to turn the Subang airport area into a hub for aviation industries.
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BIZNET: What new areas in Selangor are earmarked for industrial expansion?
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SINON:
Many new growth areas have been identified in the other parts of the State for development by 2005, offering cheaper industrial lots and labour as well as the facilities and services needed. They are in the southern coastal corridor, Sungai Buloh-Ulu Bernam zone, Rawang-Kuala Kubu Baru zone and northern coastal corridor of Sungai Besar-Ulu Bernam zone, Kuala Selangor-Kuala Kubu Baru zone and the Banting-Bagan Terap zone. These industrial areas will also be linked to Port Klang and the other areas of the State to ensure that companies are able to receive raw materials and deliver their products efficiently.
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BIZNET: What about human resource development?
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SINON:
The State plans to have at least one technical training institute in every district to produce workers with a higher technological know-how. The authorities are looking into re-training retrenched workers for other jobs so that their livelihood is not affected. The State already has the highest number of colleges and universities which are expected to contribute to increasing the number of highly-skilled and skilled workers in the State. Creating a pool of skilled and technology-literate workers through an integrated human resource development programme is one of the 10 priority areas identified by the State Government.
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BIZNET: What new initiatives are planned for this year?
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SINON:
The State Government will focus on the development of seven areas: investment and industry, tourism and recreation, small and medium scale industries, property development, especially low-cost housing, infrastructure, IT, human resource development and made-in-Malaysia products which are core projects identified by the State Economic Action Council as crucial for the State's economic development this year.
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BIZNET: What is the expected growth rate for the State?
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SINON:
The State Government had projected a positive growth of 3% in year 2000. Although this is a far cry from the time when the State had charted close to 10% growth in the last few years before the economy took a turn for the worse, it is still something to look forward to after the -1.54% growth in 1999. This positive development is the result of various proactive programmes introduced to tackle the economic problem.
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BIZNET: Which would be the major industries contributing to economic growth?
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SINON:
The manufacturing sector remains as the main contributor to the Selangor's Gross Domestic Product at 63.3% with a projected growth of 9.2% followed by the services sector which is expected to contribute 34%, construction (4.1%) and agriculture (2.7%).
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BIZNET: What steps are being taken to achieve balanced development?
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SINON:
Our new approach is to bring the agricultural sector and other districts in the coastal areas which were previously left behind like Kuala Selangor, Sabak Bernam, Kuala Langat and Sepang, into the mainstream of development. The State has approved a substantial allocation to boost the development of small-and medium-scale industries with special emphasis on food-based cottage industries. A development fund was set up in 1998 from which those involved in these activities can apply for a maximum grant of RM10,000. The concentration on the agricultural sector with emphasis on modern farming methods is another multi-pronged approach by the State aimed at minimising its dependence on imported food, to hasten the development of rural areas and to improve the living standard of those involved in the activities.
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BIZNET: How would you describe the future of investment in Selangor?
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SINON:
Very bright. Our goal to make the State the centre for rapid growth in the next millennium is successfully underway. With many major projects and support industries already in place, investors will find it very conducive to invest here. The State Government will leave no stone unturned to ensure speedy approvals are given and the investors needs are given top priority.
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