DHL EXPRESS AND MIDA PARTNER TO PROMOTE FOREIGN DIRECT INVESTMENTS TO MALAYSIA

Both parties have signed an MOU that extends DHL Express’ role in attracting multinational companies to Malaysia

DHL Express, the world’s leading international express service provider, and the Malaysian Investment Development Authority (MIDA) have entered into a Memorandum of Understanding (MOU), to strengthen the country’s position as a preferred destination for foreign direct investment (FDI). The partnership also aims to consolidate the contribution of the supply chain industry toward national economic growth.

The agreement builds on a longstanding partnership, leveraging DHL Express’ global network and local expertise to attract multinational companies to enter and expand in Malaysia. Both parties are set to intensify joint efforts to drive overseas inflows of capital, infrastructure, and knowledge to develop key priority sectors. These include electrical and electronics, pharmaceutical, digital economy, aerospace, and chemicals.

The MOU was formalized today by Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer of Investment Promotion and Facilitation at MIDA, and Julian Neo, Managing Director of DHL Express Malaysia and Brunei. YBhg. Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman of MIDA, was also present as the witness of the ceremony.

“DHL Express’ growth is very much tied to Malaysia’s own since establishing our roots here 50 years ago,” said Julian Neo. “Through our shared history, we experienced a strong economy that has become the fifth largest in ASEAN¹. The MOU with MIDA reaffirms our collaborative relationship to facilitate the rising investment interest. With presence that spans 220 countries and territories, DHL Express is well equipped to support companies looking to diversify their supply chains in Malaysia.”

Indeed, Malaysia is well ahead of its peers in terms of the depth of its globalization. According to the latest DHL Global Connectedness Index 2022—a study on the flow of trade, people, capital, and information worldwide—the country ranks 14th out of 171 economies. Malaysia is also among the top ten with the largest connectedness improvements over the data period of 2001 to 2021.

In 2022, Malaysia recorded approved investments totalling MYR264.6 billion (EUR55.1 billion) from 4,454 projects, which in turn created 140,370 job opportunities. The services sector represented the largest chunk of total approved investments at MYR154 billion (EUR32.1 billion), followed by MYR84.3 billion (EUR17.5 billion) from the manufacturing sector. Notably, FDI was the major contributor to the total approved investments at 61.7 percent or MYR163.3 billion (EUR34 billion), while Domestic Direct Investment (DDI) contributed 38.3 percent or MYR101.3 billion (EUR21.1 billion).

Tan Sri Dr. Sulaiman noted the heightened investor confidence in Malaysia while welcoming MIDA and DHL Express’ renewed partnership.

“Despite the unexpected challenges that our initial formalised MOU in 2019 encountered with the advent of the COVID-19 pandemic, today's signing ceremony reaffirms our commitment to strengthening the robust partnership between MIDA and DHL Express Malaysia,” said Tan Sri Dr. Sulaiman. “With this new agreement, we are confident that Malaysia will continue to shine brightly as the preferred investment destination for global investors, further solidifying our nation's position as a beacon of stability, progress and prosperity in the region and beyond.”

“Our stakeholders can also look out for more focused, specific seminars on targeted industries, particularly in key sectors such as green technology, oil and energy, manufacturing, aerospace, ecommerce, as well as global and regional distribution centres. We are hopeful that this strong private and public partnership will help solidify our investors’ confidence and broaden business opportunities. Essentially, ensuring that there is a continuous sustainable stream of quality investment activities in the country in line with our nation’s New Investment Policy,” he added.

DHL Express Malaysia operates a robust aviation and ground network encompassing six gateways, 21 service centers, 185 retail points of sale, more than 300 vehicles, over 60 weekly flights, four dedicated aircrafts, and more than 1,500 employees to ensure comprehensive service coverage.

_{¹ The Star, 7 March 2023. ‘China+One strategy to fuel Malaysia’s growth’}