- 4 weeks ago
Selangor has long been Malaysia’s economic engine, but as global competition intensifies, what will it take to stay ahead over the next decade? In the Season 3 premiere of Investment Insider, YB Tuan Ng Sze Han and Dato Hasan Azhari Idris unpack the state’s investment strategy and its push towards the high-value industries of tomorrow.
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00:14Welcome to Season 3 of Investment Insider, brought to you by Invest Selangor.
00:19I'm Faye Kwan, your host for this series.
00:21For the past decade, Selangor has played a leading role in Malaysia's investment landscape.
00:26But what comes next for the state?
00:27This season, we will be diving deeper into how Selangor is building an ecosystem for its next phase of growth,
00:34alongside highly specialised industries.
00:37We will also be exploring how platforms such as SPARC, the Selangor Industrial and Investment Park Expo,
00:44as well as SIPs, the Selangor International Business Summit, now in its 10th edition, is positioning Selangor as a gateway
00:51to ASEAN.
00:52From the firms powering this shift to the strategies enabling it, this is Investment Insider.
01:07For decades, Selangor has been Malaysia's economic engine, driving industry, drawing investment and linking businesses to markets across the region.
01:16But as global competition intensifies, staying ahead takes more than momentum.
01:21It takes policymakers, investors, industry leaders and talent all building toward the same role, the industries of tomorrow.
01:29At the heart of this push is SIPs, which has evolved over the past decade from a trade event into
01:35a powerhouse of regional commerce.
01:37Since its launch in 2015, SIPs has grown from 4,300 visitors in its first year to nearly 57,000
01:45participants from 89 countries in 2025.
01:48And now with SPARC as a key component of the platform, Selangor is setting its sights on the next generation
01:55of high-value industries.
01:56So as the state charts what comes next, this episode looks at the big picture, the policy vision, strategy and
02:04support systems behind it.
02:16Hello, you're watching Investment Insider with me, Fei Kuan.
02:19Here with me to kick off our first episode of this season is YB Tuan Ng Zihan.
02:25He is the Selangor State Exco for Investment, Trade and Mobility.
02:30YB, thank you for joining me.
02:31Thank you, Fei, for having me.
02:32Now, firstly, I'd like to kick off our talk with looking a little bit at the bigger picture.
02:38How would you say SIPs 2026 fits into Selangor's broader economic roadmap for the next decade?
02:45And why is this being described as a sort of defining moment for the state?
02:50To understand why it is a defining moment for Selangor,
02:55we must first look at how incredible the momentum of Selangor is carrying right now.
03:03For example, last year when we set the investment target internally,
03:08the target that we set was RM65 billion.
03:11But at the end, when Minda made an official announcement,
03:16we managed to secure RM83.9 billion approved investment.
03:21So I think this is another good signal to show that how vibrant the environment,
03:31the business environment, the investment environment in Selangor is.
03:35And what I love about the figure of RM83.9 billion is the balance.
03:43Because the direct domestic investment was about RM49 billion,
03:49and the direct DDI.
03:51DDI was about RM49 billion.
03:53And FDI was RM35 billion.
03:57So it is almost 55, 58% versus 42%, DDI and FDI.
04:05So it shows that it is very balanced.
04:08And it also shows that Selangor is the preferred investment destination for FDI
04:14and also the preferred investment destination for reinvestment of the DDI.
04:21So this is what I like about the situation in Selangor.
04:24So again, this is a very good achievement that we had last year.
04:30And we are hoping that in the coming years, in year 2026,
04:35we will continue to have this good result.
04:39And how does SIPs sort of fit into that?
04:43SIP is one of the very important annual events organized by Selangor government
04:49through Invest Selangor.
04:51One of the very important components that we have in SIPs is SPARK.
04:55SPARK is the industrial park expo for all the industrial park,
05:01not only in Selangor, but in Malaysia and also the whole ASEAN.
05:05So we are inviting all the industrial park to participate in this expo.
05:08Why is it very important?
05:10Because this is the only industrial park expo in this region.
05:14And we are trying to make Selangor or make this a SPARK expo
05:21to become the one-stop, the one-stop center for the investor
05:28to look for the suitable industrial park for them.
05:33And just for example, last year, the potential investment,
05:38the potential transaction that we achieved in SIPs 2025 was 8 billion ringgit.
05:47And out of this 8 billion ringgit, 7 billion ringgit contributed from SPARK.
05:51So it shows that how important this component is.
05:55And on top of that, I think we also got to look at the job opportunities
06:00that created through all this investment.
06:03Last year alone, in Selangor, we managed to create 63,000 job opportunities
06:09for the young Malaysians.
06:11And the job opportunities that we are talking about here
06:13is not the ordinary job opportunities.
06:16It is a high value, high impact, high income job opportunities.
06:20So it's really making a big impact on this state and Malaysia as a whole.
06:25Exactly.
06:25A unique industrial park expo that over 10 years has transformed
06:29not just as a trade show, but it's now sort of an ecosystem platform.
06:33It's a very compelling shift there.
06:35But as you know, global investors now aren't just looking simply for empty land.
06:39What they want is they want talent.
06:41They want sustainability, policy, certainty.
06:45How is Selangor locking those fundamentals down?
06:49And how crucial is alignment between your office with agencies such as InvestSelangor?
06:53Exactly.
06:53I think you have pointed out one very important concern of all the investors,
06:57including the local or the foreign investors.
07:01because they are not investing.
07:02Nowadays, they are not investing in the real estate anymore.
07:06They are not coming here to buy the industrial land
07:09and hoping for the industrial land to appreciate.
07:12So this is not the game anymore.
07:14So they are here because of our ecosystem.
07:17They are here because the ready-to-go ecosystem that we have in Selangor.
07:22So that is something that we are hoping to build.
07:26Because in Selangor, we are very selective as well.
07:29We do not want any kind of investment to come to Selangor
07:32if it doesn't suit our directions.
07:35So we want the investment to be here, to be together with Selangor government
07:42to build a more complete ecosystem for all type of industries that we are promoting in Selangor.
07:47For example, automotive, aerospace, semiconductors, and so on.
07:52We want them to be together to build the ecosystem.
07:55And we have the ecosystem.
07:56We are hoping to make it a better ecosystem for these industries.
08:00So we are working together with them.
08:05And another major concern that most of the investors are facing now is a talent shortage.
08:12In almost all the industries that I mentioned earlier on,
08:15semiconductor, aerospace.
08:16For aerospace, the immediate vacancies now is 1,600.
08:20For the aircraft technician, aircraft engineer,
08:22the immediate vacancies available in Malaysia market is 1,600.
08:26And most of all these companies are in Selangor.
08:30So talent development is another big challenge for us.
08:35So through Inverse Selangor, we have a program called SCOUT,
08:40Selangor Career Outreach Program.
08:43So SCOUT will be working together with PECSO in the coming 6, 2026
08:47to have the job recruitment program.
08:50And we also have the constant engagement with the university students
08:55in order for them to understand the current market demand
08:58and also to connect them, to bridge them, to bridge the gap
09:01between the industry and also economy.
09:05I think this is very important that before they graduate from their universities,
09:09they have to know what is the market demand.
09:12And for the industrial players, they also need to let the economy know about their demand.
09:19So what are the skills that they need for their industry?
09:24So we are doing this kind of exercise to bridge the gap between the economy and also industries.
09:33So I think this is another part of the important jobs that we are doing
09:38to tackle the talent shortage problem in the industries.
09:43Bridging that gap between skills, expectations and demand is really a very crucial point here.
09:49But now, YB, bringing in your role then as State Exco,
09:54in terms of mobility especially,
09:56how is Selangor's transport and logistics master plan being woven into these industrial hubs?
10:02And how are we ensuring that we're building a highly connected economic corridor
10:08instead of just a sort of isolated pocket of factories?
10:11For the mobility and the industry, they cannot operate in silos.
10:16And if your logistic networks don't talk to each other, the industry cannot move.
10:22So we need to make sure that besides the connectivity in the industry,
10:27we also need to make sure that the connectivity for the people who need to go to work is provided.
10:35So now we need to look at two different aspects.
10:39The moving of goods and the moving of people.
10:43For moving of goods, yes, we need to provide a good high-waves, good route connectivity,
10:49good rail networks connectivity with the completion of ECRL,
10:53which is scheduled to complete in year 2027,
10:58first quarter of 2027,
11:00you'll be arrived until Gombak.
11:03And then one year later, another year in 2028,
11:07from Gombak to Poclang will be completed.
11:10So with the completion of ECRL,
11:12we'll have a better rail networks for their logistic.
11:15So I believe that will give another strength to the logistic industries in Selangor.
11:25And on top of that, we as a government,
11:27we must also think about the mobility of the people.
11:30How are we going to move people effectively from their home to their workplace?
11:36Yes.
11:36So with that, we also try to tackle the first month and last month of connectivity
11:42by having the new initiative called Demand Responsive Transit, or DRT.
11:47And now we are working to get Prasarana Rapid on Demand
11:50to encourage more people to take this DRT service.
11:56So a few months ago, we have launched a new initiative
11:59to give the RM30 subsidy to the DRT user in Selangor.
12:04So every month, we are top up to RM30 for them to use this DRT service.
12:10Besides creating the awareness,
12:12we also would like to encourage more Selangorians
12:14to take this service to go to work.
12:17Let's fast forward a little bit before we wrap up.
12:20If we were to sit right here in this office again in 2036,
12:24which is a decade for now,
12:26what benchmarks would you use to define success
12:31for Selangor's economy and its people?
12:33So if we are here again 10 years later,
12:37which is 2036,
12:41I think what we are focusing here now is,
12:44of course the figures are important.
12:46We love to see the big figures, nice figures,
12:49but it does not mean everything
12:51and it is not the only KPI for us.
12:53What we are hoping to see is
12:55we want to see for all the investment
12:58that we are attracting into Selangor today,
13:02we want to see what are the spillover effect
13:05that it can generate to the local SMEs.
13:08And also what are the job impacts
13:10that it can create for the young Malaysian.
13:14So I think these two aspects are very important
13:18for us to determine whether those are the good investment
13:21for Selangor or not.
13:22We want to increase the size of the economy
13:25in order for more people to enjoy.
13:27So it means nothing.
13:30If we bring in another labor intensive industry to Selangor,
13:34it may not be benefited to the local industry.
13:38We want to see the spillover effect.
13:40We want to help the local SMEs to become the tech giant,
13:46to become another unicorn or to become another big company
13:51or to become the local champion.
13:54So this is what we are hoping to see
13:56to generate more spillover effect for the local SMEs.
13:59So that will be our main KPI.
14:01All right.
14:02Thank you, YB, very much for sharing your insights.
14:06We'll go for a quick break now,
14:07but when we come back,
14:08we'll be exploring how Selangor is turning strategy
14:11into action in high-tech industries.
14:13Stay with us.
14:29Welcome back to Investment Insider.
14:32Joining me now is Dato' Hassan Azhari Idris.
14:35He's the CEO of Invest Selangor Berhad.
14:38Dato', it's a pleasure to speak to you today.
14:40Now, firstly, this season on Investment Insider,
14:44we'll be looking at Selangor's push
14:45into some highly specialised industries.
14:49Why would you say it's vital for Invest Selangor
14:51to position SIPs as something that's central
14:55to these broader industry conversations
14:59and, you know, if we were to be frank,
15:01from an investor's perspective,
15:03how much does a world-class ecosystem matter
15:07as compared to, let's say,
15:10traditional financial incentives such as tax breaks?
15:13Thank you, Faye.
15:14Let's be perfectly candid.
15:16Tax holidays and financial grants are easily copied.
15:21Any country can offer them,
15:23but what you cannot replicate overnight
15:25is a mature, reliable,
15:28world-class industrial ecosystem.
15:31Financial incentives might get an investor
15:35to look at you,
15:36but it is the strength of the ecosystem
15:39that makes them stay,
15:41reinvest and anchor their business here
15:45for the next 30 years.
15:47That is why SIPs is our foundation,
15:51specialized sectors like aerospace or biotech
15:55require an incredibly sophisticated operational environment.
16:01They can't afford power fluctuations.
16:04They need advanced waste water management,
16:08ultra fast digital infrastructure
16:11and a robust local supply chain.
16:15And through SIPs,
16:16we bring in a serpak developers,
16:19utility giants,
16:21tech providers,
16:23innovators and regulators
16:24into a single hall.
16:28When a global firm comes to SIPs,
16:31they are not just reading a brochure.
16:34They can physically sit down
16:37with developers in SIPs,
16:39look at the master plan
16:41of our managed industrial parks
16:43and see exactly how their facility
16:46will connect to the grid.
16:49They can also visit
16:51Selangor Taxes Summit
16:53to look at the latest industrial technology
16:57and consider adapting their operations.
17:01They can visit ISEM also
17:03to discover new tech companies
17:05which may become their partner
17:08in their operations in the region.
17:12And we are also leveraging
17:13public private partnerships
17:15to build out this highly specialized infrastructure.
17:20At the end of the day,
17:21investors value operational resilience
17:25and speed of executions above all else.
17:29And Selangor has the maturity
17:32to deliver both.
17:33Speaking about those global firms
17:36that you've just mentioned,
17:37you deal with them every day.
17:39So, from your direct boardroom engagements,
17:43what would you say are some of the top three features
17:46that modern companies now demand
17:48from an industrial park?
17:50And how does your team at Invest Langor
17:52support them in asking for these features?
17:55Yes.
17:56I think the modern corporate checklist
17:58has become incredibly precise.
18:02And when we talk to global executives,
18:06they demand three non-negotiables.
18:10First, plug and play infrastructure.
18:13Time to market is everything today.
18:16And companies want sites that are fully serviced
18:20with water, power supply, gas, fiber optic connectivity
18:26ready to go on day one.
18:29Second one is the ESG and sustainability integrations
18:33because of the global climate mandate.
18:37These firms need green industrial environment
18:40and they want renewable energy readiness,
18:44centralized water treatment plant
18:46and smart eco-efficiency built into the power.
18:51There is two already.
18:53I think the third one would be the proximity
18:55to talent and supply chain.
18:57They need to know they can hire specialized engineers
19:01and access to tier one supplier
19:05within a tight geographical radius.
19:09Our job at Invest Langor is to act as their corporate navigator.
19:14We don't just hand over a plot of land
19:16and wish them luck.
19:18We assign dedicated project managers to handhold them
19:22through the entire life cycle,
19:25speeding up municipal council approvals,
19:28coordinating directly with utility providers
19:30to drop power lines
19:32and actively matching them with local vendors
19:36and as well as the universities.
19:39And we clear the red tips so they can focus
19:42on scaling their business.
19:44Now a bit of a teaser here,
19:47but in our upcoming episodes of Investment Insider,
19:50we will be spotlighting some highly technical fields
19:53including advanced tech and life sciences.
19:57Could you tell us how does the SIPs model
19:59help these specialized players scale up faster?
20:03And also, how do you keep up with the...
20:05How do you make sure that the framework is agile enough
20:10for the next generation of tech disruptors?
20:13I think high-tech and life sciences companies operate on lightning fast innovation cycles.
20:21Delays are fatal to them.
20:25SIPs act as the hyper connector to these investors
20:29instead of a foreign firm spending six months independently trying to book meetings
20:36with local regulators or suppliers or talent service providers or not.
20:41SIPs condense the entire ecosystem network into single cohesive framework.
20:50You will be able to meet everyone on the expo
20:55and the expo floors to discuss your investment project
20:58during the four days of the expo.
21:02And to me, to keep our age with tech disruptors,
21:06the framework itself has to be evolved.
21:10That's why for our landmark 10 anniversary of SIPs 2026,
21:15we are introducing three brand new, brand new, highly specialized pillars.
21:21The first one is the Selangor Tech Spheres Summit,
21:26organized by Selangor Technical Development Center,
21:31in or STDC,
21:32in partnership with Hannover Fest Asia Pacific,
21:37a subsidy of Germany's world famous Dodge Massey AG.
21:42This is our anchor for industrial innovations,
21:47automations as well as advanced technical skills.
21:51The second one is the Selangor AI and Semiconductor Summit 2026,
21:58driven by SIDEC,
22:00focusing squarely on the high value digital economy.
22:05And the third one is the Selangor International Care Expo,
22:09organized by Wanita Berdaya Selangor.
22:12This event is to address the rapidly expanding care economy
22:20and ensure our growth is socially inclusive.
22:25And by constantly refreshing these pillars,
22:29SIPs ensures it's never just answering yesterday's industrial questions,
22:35but actively building the infrastructure for tomorrow breakthroughs.
22:43It's very interesting being forward-looking and planning for the long term,
22:48but I'd like to focus more on that semiconductor space.
22:51With the launch of the AI and Semiconductor Summit at SIPs 2026,
22:56and as it celebrates its 10th anniversary this year,
23:00how is Invest Langor positioning the state to capture the global shift
23:04towards high-value chip design and advanced technology?
23:08Fee, there is a massive structural shift happening globally.
23:15Historically, Southeast Asia was the go-to destination for back-end semiconductor assembly,
23:21such as packaging and testing.
23:23But the high-margin growth today is in front-end integrated circuit
23:29or IC design, AI development and also advanced engineering.
23:37And in strict alignment with the new industrial master plan 2030,
23:42Selangor is aggressively shifting our strategy from investment quantity
23:47to investment quality.
23:50We want the absolute highest tier of the global tech value chain.
23:59Through SIPs and specifically ISERM,
24:03we are showing global firms that our readiness is already operational.
24:09Look at the Selangor IC design pub ecosystem,
24:12following the incredible success of our first phase in Pucco,
24:17our expansion into high-end digital and design activities,
24:23including positioning Cyberjaya as the rapidly growing hubs,
24:31actively housing top-tier global design firms,
24:35as well as for the premier engineering talent.
24:40And we are not just a state that manufacture products anymore.
24:45Backed by state funding and robust local supplier network,
24:52we are cementing Selangor as the definitive silicon hub of ASEAN.
24:57We want global tech disruptors to know that Selangor is the place
25:02where our intellectual property, your cheap architecture
25:07and your next generation's innovations are born.
25:10Thank you very much, Dato, for sharing your candid views.
25:14Lots to look forward to regarding Selangor's roadmap
25:17that you've just outlined there.
25:19This has been Investment Insider, brought to you by Invest Selangor.
25:23I'm Fei Kuan.
25:24Thank you for watching and see you in the next episode.
26:15Thank you for watching and see you in the next episode.
26:24Thank you for watching and see you in the next episode.
26:40Thank you for watching and see you in the next episode.