NIMP 2030: Transforming Malaysia’s Industry for a Stronger Future

intraxco
Mar 11
3 min read

Malaysia's New Industrial Master Plan 2030 (NIMP 2030) is a comprehensive strategy aimed at transforming the nation's manufacturing and related services sectors over a seven-year period, concluding in 2030. This plan is integral to the Ekonomi MADANI framework, which aspires to elevate Malaysia's economic status through equitable wealth distribution and sustainable development.

Strategic Objectives and Targets

NIMP 2030 sets ambitious macroeconomic targets to bolster Malaysia's industrial landscape:

Manufacturing Value-Added Growth: The plan aims to increase the manufacturing sector's value-added contribution by 61%, reaching RM587.5 billion by 2030. This reflects a targeted compound annual growth rate (CAGR) of 6.5%.
Employment Expansion: A projected 20% growth in employment is anticipated, adding approximately 550,000 jobs to achieve a total of 3.3 million positions in the manufacturing sector by 2030, corresponding to a 2.3% CAGR.
Wage Enhancement: The plan aspires to elevate the median salary in the manufacturing sector by 128%, reaching RM4,510 by 2030, which translates to a 9.6% CAGR.

Mission-Based Approach

NIMP 2030 adopts a mission-based approach, delineated into four key missions:

Advance Economic Complexity: This mission encourages industries to innovate and produce more sophisticated products, enhancing Malaysia's competitiveness in the global market.
Tech Up for a Digitally Vibrant Nation: Emphasizing technology adoption and digital transformation, this mission aims to drive innovation, boost productivity, and create new economic growth opportunities.
Push for Net Zero: Demonstrating a commitment to environmental sustainability, this mission focuses on adopting sustainable practices and green initiatives to reduce carbon emissions and build a resilient, eco-friendly economy.
Safeguard Economic Security and Inclusivity: Aiming to ensure supply chain security, support small and medium-sized enterprises (SMEs), and promote equitable participation in economic activities across all states, this mission seeks to create an inclusive economic environment.

Key Enablers

To support these missions, NIMP 2030 identifies four critical enablers:

Mobilize Financing Ecosystem: Developing a robust financing ecosystem to support industrial growth and transformation.
Foster Talent Development and Attraction: Enhancing talent development programs to build a skilled workforce aligned with industry needs.
Establish Best-in-Class Investor Journey for Ease of Doing Business: Improving the investment climate to attract and retain investors by streamlining processes and regulations.
Introduce Whole-of-Nation Governance Framework: Implementing a cohesive governance framework that fosters collaboration among stakeholders to ensure effective execution of the plan.

Mission-Based Projects (MBPs)

NIMP 2030 outlines nine mission-based projects to drive industrial transformation:

MBP 1.1: Create global integrated circuit (IC) design champions in electric vehicles (EV), renewable energy (RE), and artificial intelligence (AI).
MBP 1.2: Attract new advanced wafer fabrication facilities to Malaysia.
MBP 1.3: Deepen the specialty chemical vertical to enhance value-added activities.
MBP 1.4: Groom champions in four game-changing advanced materials to position Malaysia at the forefront of material innovation.
MBP 2.1: Transform 3,000 factories into smart manufacturing facilities to boost productivity and competitiveness.
MBP 2.2: Establish Malaysia as a hub for generative AI, fostering innovation and technological advancement.
MBP 3.1: Create decarbonization pathway role models to lead sustainable industrial practices.
MBP 3.2: Launch locally manufactured EVs to promote green transportation solutions.
MBP 3.3: Deploy large-scale carbon capture, utilization, and storage (CCUS) solutions to mitigate carbon emissions.

Implementation and Investment

The successful execution of NIMP 2030 requires a whole-of-nation approach, involving both public and private sectors. The plan estimates a total investment of RM95 billion over seven years, predominantly sourced from the private sector through private equity, capital, and financial markets. Approximately 10% of this investment will be allocated by the government to catalyze and incentivize these investments via the NIMP Industrial Development Fund and the NIMP Strategic Co-investment Fund.

Governance and Monitoring

To ensure effective implementation, a dedicated National NIMP 2030 Council will be established.

Is Malaysia on the Brink of a Manufacturing Powerhouse Revival?

Yes
Not Yet