CENTRAL REGION PROGRAMME SHOWCASES MALAYSIA’S COLLABORATIVE PUSH FOR INDUSTRIAL GROWTH AND SUPPLY CHAIN ECOSYSTEM

^{Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, MIDA CEO}


• The Central Region initiative is projected to drive long term growth.
• Two-day programme convenes over 800 industry leaders, policymakers, business communities and investors to address supply chain integration gaps.
• Contributing an estimated RM24.5 billion to GDP annually.
• MOU signed between MIDA and MRCB signals infrastructure commitment.
• Programme features international benchmarking with Netherlands' Brainport Industries model.

KUALA LUMPUR, 11 Nov (Bernama) --  The Malaysian Investment Development Authority (MIDA), together with the Department of Federal Territories and State Governments of Selangor, Negeri Sembilan and Melaka through their respective investment promotion agencies, today launched a two-day Central Region Programme that signals a maturing approach to industrial development—one that prioritises ecosystem integration.

The programme arrives at an opportune moment. Global supply chains are reconfiguring, and Malaysia's Central Region—already home to established capabilities in financial and global services hubs, electrical and electronics, aerospace, pharmaceuticals, and food manufacturing—is positioned to capture a larger share of high-value production networks. The initiative projects RM24.5 billion in annual GDP contribution, RM12.5 billion in approved investments yearly, and 5,000 high-value jobs over five years.

At the Royale Chulan Kuala Lumpur, over 800 industry leaders, policymakers, business communities and investors convened under the theme "Innovating Industries, Connecting Markets" to align on what distinguishes this effort: its focus on strengthening supply chain linkages and enabling local enterprises to scale alongside multinational partners.

Building on Proven Strengths

YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), positioned the initiative as the natural evolution of Malaysia's industrial strategy, stating, “The Central Region Industrial Cluster Initiative strengthens Malaysia’s industrial backbone by connecting suppliers, talent, and innovation hubs—turning strong foundations into faster investment, smarter tech adoption, and real opportunities for local enterprises to scale. Aside from policy clarity, Malaysia’s revamped fiscal tools also reward real industrial outcomes: if you invest in capability, we will match it with facilitation and targeted incentives. And the Central Region cluster is where the strategy engine soars to translate pure potential into actual production, exports and jobs.”

The Minister's emphasis on building rather than starting afresh reflects a strategic reality, the Central Region already possesses substantial industrial infrastructure, skilled workforce pools, and established manufacturing ecosystems. The programme aims to connect these assets more deliberately.

Regional Synergy in Action

YB Datuk Seri Dr. Zaliha Mustafa, Minister in the Prime Minister’s Department (Federal Territories), remarked, “The Federal Territories serve as the strategic heart of the Central Region by providing the intellectual infrastructure, global services ecosystem, innovation capacity and governance efficiency that, through strong regional synergy, enable manufacturers in neighbouring states to grow with confidence. Kuala Lumpur and Putrajaya anchor corporate functions, research and development support, advanced testing facilities, smart city readiness and a deep talent pool, which together strengthen regional competitiveness by giving investors reliable access to high-value services and seamless connectivity. Working alongside MIDA and our regional partners, the Federal Territories are committed to shape a cohesive and future-ready industrial cluster that drives sustainable and high-tech economic growth for the entire Central Region.”

The commitment from state leadership underscores the programme's collaborative foundation. YAB Dato' Seri Amirudin Shari, Menteri Besar of Selangor, articulated the rationale for regional cooperation: "Selangor has substantial industrial capacity—the factories, the workforce, the infrastructure are all in place. What this programme addresses is the need to strengthen connections between our manufacturers and help them integrate with the right partners. When the four states work together, we present investors with a far more comprehensive proposition. This is fundamentally about creating shared value across the region."

YAB Datuk Seri Utama Ab Rauf Yusoh, Chief Minister of Melaka, drew on Melaka’s proud legacy as a historic global gateway: “From the glory days of the Melaka Sultanate, our state has always been a bridge connecting regions and driving trade. Today, we are reviving that legacy not just through modern trade routes, but by strengthening advanced manufacturing networks and new growth industries. With strong halal food hub capabilities and major developments such as the Melaka Hi-Tech Park, German Technology Park and Elkay 2.0, Melaka is positioned as a key engine of Malaysia’s industrial future.”

“Melaka fully supports the Central Region development. Our strategic location and readiness enable us to contribute meaningfully to this regional ecosystem, allowing companies to tap into shared capabilities and elevate competitiveness across the nation.”, he added.

YAB Dato' Seri Utama Haji Aminuddin bin Harun, Menteri Besar of Negeri Sembilan, spoke to his state's strategic positioning, "Negeri Sembilan has developed strong capabilities in aerospace, pharmaceuticals and precision manufacturing, aligned with the development plan of Malaysia Vision Valley 2.0. However, we recognise that competing effectively requires this kind of regional collaboration. When companies evaluate Southeast Asia, they assess ecosystem strength—supplier availability, workforce quality, operational efficiency. This programme strengthens our collective ability to meet those requirements."

Ecosystem-Driven Approach

YBhg. Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, made it clear about what distinguishes this initiative, " We have long measured success by the quantum of investments announced. This programme represents a deliberate shift—we seek investments that integrate deeply into our economy, that enable our SMEs to participate in global supply chains, and that create genuine upward mobility for our workforce. MIDA's mandate has evolved significantly. The Central Region complements the equally significant regional economic corridors, namely ECER, NCER, Iskandar, RECODA, and SEDIA. This requires seamless collaboration between federal and state governments, meaningful partnerships between industry and academia, and a government that functions as an enabler rather than merely an authority. When we speak of transformation, this is what we mean.”

Industry Engagement and Knowledge Exchange

Day one brought together industry practitioners—including Greatech Technology, Besi Apac, Collins Aerospace, and representatives from PETRONAS—to share insights on supply chain development and digital transformation. The Malaysian Communications and Multimedia Commission led discussions on scaling 5G deployment from pilot projects to full industrial implementation, addressing both the opportunities and practical challenges of smart manufacturing adoption.

Day two's sector-specific breakouts addressed pharmaceutical ecosystem development with Rezk Ventures, aerospace and E&E supply chain optimisation with Texas Instruments and CTRM, halal food manufacturing positioning with Nestlé and Baba's, talent pipeline strengthening through industry-academia partnerships, and startup funding pathways from seed to Series A and beyond.

The participation of Brainport Industries from the Netherlands, a region that has successfully transformed itself into a high-tech manufacturing cluster provides valuable peer insights into collaborative industrial development models that transcend individual jurisdictions.

Timely Strategic Positioning

The initiative's timing aligns with broader shifts in global manufacturing. As companies seek to diversify production networks and build resilience, Malaysia's Central Region offers a compelling proposition: established industrial capability, strategic geographic position, political stability, and now, coordinated ecosystem support across state boundaries.

The exchange of a memorandum of understanding between MIDA and Malaysian Resources Corporation Berhad demonstrates infrastructure commitment beyond policy statements. The involvement of all four – Federal Territories’ Minister, Menteri Besar of Selangor and Negeri Sembilan and Chief Minister of Melaka, in substantive dialogue including a fireside chat moderated by the MITI Minister signals the depth of economical alignment behind the initiative.

APPENDIX:

STATEMENTS FROM CENTRAL REGION INVESTMENT PROMOTION AGENCIES

Invest Selangor Berhad
YBhg. Dato' Hasan Azhari Haji Idris, Chief Executive Officer, said: "In our engagement with investors, apart from acknowledging our advantages on connectivity, the question of supply chain depth consistently emerges as a critical factor. They need assurance on local supplier availability, talent accessibility, and infrastructure capacity. This Central Region programme significantly strengthens our value proposition. Rather than presenting only Selangor's strong appeal and capabilities, we can now demonstrate how the state functions within an integrated manufacturing network spanning four jurisdictions. This represents a substantially more compelling investment case."

Invest Negeri Sembilan Berhad
YBhg. Dato' Haji Najmuddin Sharif Sarimon, Chief Executive Officer, noted: "Negeri Sembilan has invested considerably in building our aerospace, pharmaceuticals and advanced manufacturing foundations. The challenge has been one of scale and ecosystem completeness. This initiative addresses that limitation directly. When we engage with aerospace investors, we are no longer constrained by state boundaries. We can present a regional cluster with complementary capabilities across the Central Region. This fundamentally alters the conversation and opens opportunities that were previously difficult to pursue."

Invest Melaka Berhad
YBhg. Datuk Ginie Lim Siew Lin, Chief Executive Officer, emphasised the practical impact: "Our manufacturers, particularly in food and halal sectors, have consistently sought stronger connections to supporting industries—packaging, logistics, quality assurance, and testing facilities. This programme directly addresses those needs. Rather than each state attempting comprehensive self-sufficiency, we are identifying comparative advantages and creating effective linkages. This is practical collaboration that addresses real industry requirements."
 
Source: Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Mr. Sukri Bin Abu Bakar
Director of Domestic Investment Division
Malaysian Investment Development Authority (MIDA)
Tel: +603-2267 3685
Email: sukri@mida.gov.my

--BERNAMA