Extracted from Malaysia's Daily Express,
19 November 2009
'Take advantage of outsourcing opportunities'
Kuala Lumpur: Local players should take advantage of outsourcing opportunities in the solar photovoltaic, front-end electronics, medical devices, aerospace, machinery and equipment as well as oil and gas industries, said Malaysian Industrial Development Authority (Mida) deputy director-general Datuk Afifuddin Abdul Kadir.
"We have many small and medium enterprises and medium-sized companies in Malaysia who can become sub-contractors to supply materials like silicon, glass, chemicals, plastic, medical grade resins and compounds," he told reporters at the seminar on "Outsourcing Opportunities in Malaysia", organised by Mida here.
Afifuddin said the outsourcing sector was growing steadily and with the recent opening up of 27 sub-sectors in the services industry, it will provide more opportunities for local players.
He said about 5,000 multinationals, including Intel and Jabil, which are operating in Malaysia will outsource 30 per cent of their activities to local players.
"They are moving towards reducing supply chain management costs and the sourcing of integrated solutions for supply of components and services. "Therefore, local players are encouraged to further add value to their production capabilities and services, to secure a bigger share of the global outsourcing market," he explained.
Earlier in his welcome remarks, Afifuddin said Malaysia has continued to attract significant amounts of investments into the manufacturing sector, despite the global economic slowdown in 2008.
He said the approved investments from January to September this year amounted to RM20.2 billion. Of this amount, foreign investments totalled RM12.6 billion or 63 per cent of total investments approved, while domestic investment was RM7.4 billion or 37 per cent.
He said the investments approved are in line with the government's objectives of moving into high-technology, high value-added, knowledge-based and skills intensive industries, incorporating activities such as design development along with research and development (R&D).
He said the influence of foreign direct investments (FDIs) on the manufacturing sector over the last four decades, has resulted in the growth and development of many Malaysian supporting industries.
Some of these companies have now accumulated a wealth of experience and technology and are currently global players in their own right.
"These companies have not only become reliable suppliers to foreign companies operating in the country but have also carved a niche for themselves globally," Afifuddin added.
The one-day seminar was attended by 108 local and 22 anchor companies as well as representatives from universities. - Bernama