Selangor readies for four-day International Business Summit in bid to attract investors
- The Malaysian state aims to become the gateway for entrepreneurs and businesses looking to expand into Southeast Asia
- This year’s summit, in October, will include a two-day conference with panellists from key industries discussing the region’s potential for growth
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Malaysia’s state of Selangor will continue to play a key role in the country’s trade with other members of the Association of Southeast Asian Nations (Asean), because of its well-developed logistics infrastructure, established investment economy and central location in Southeast Asia. That is according to Invest Selangor, a government body that oversees business and investment opportunities in the state, and organiser of the Selangor International Business Summit (SIBS) which will take place later this year.
“Invest Selangor can assist entrepreneurs expand their market through SIBS,” says Dato’ Hasan Azhari Bin Haji Idris, CEO of Invest Selangor. “Beyond being a mere trade show, SIBS is a platform that brings together hundreds of local and international industry players looking to explore the huge potential of investing in Selangor and Asean markets.”
Selangor is one of Malaysia’s biggest economies, accounting for 24.8 per cent, or RM343.5 billion (US$76 billion) of the nation’s gross domestic product (GDP) in 2021, up by half a percentage point on the previous year, signalling economic activity is improving following the removal of pandemic restrictions. Foreign direct investment (FDI) in Selangor reached RM3.3 billion (US$727 million) in the same year, with the manufacturing sector accounting for over 90 per cent of those FDIs, followed by the services sector.
Meanwhile, Asia was the world’s largest recipient of investments in 2021, accounting for 40 per cent of FDIs globally, suggesting the region is well positioned for further growth.
There are a number of factors that favour Selangor as an attractive investment destination for companies looking to expand their presence in Asean. The central west coast state, which encircles Malaysia’s capital Kuala Lumpur, has a population of 6.57 million and a talent pool of 3.6 million skilled workers. It has a highly developed logistics infrastructure, with one of the largest container ports in Asia and access to two major airports that put Selangor within eight hours of two-thirds of the world’s population.
Selangor is the national information and communication technology (ICT) capital of Malaysia, with ambitious plans to become Asean’s most liveable smart state by 2025. It enjoys near full coverage by 4G and 5G networks, and is pressing ahead with a blueprint to expand its technological infrastructure that will create a business environment using technology as a key enabler to fuel sustainable growth.
This includes expanding digital technologies for industries, in a bid to continue to attract more investment in sectors that are already performing well, such as high-tech manufacturing of parts for the aerospace industry, automated port management, biotechnology, fintech and artificial intelligence.
The annual SIBS event, which takes place at the Kuala Lumpur Convention Centre, is poised to showcase the state’s potential to shape economic growth in Southeast Asia. Now in its seventh year, the summit will take place over four days from October 19 to 22, bringing together six concurrent events including international expos for the medical, industrial, and food and beverage sectors.
Following its success last year, a Supermarket Buyers programme will give exhibitors access to prominent retail brands and suppliers actively seeking new products for their outlets. Last year, the summit’s food and beverage expo realised more than RM171 million (US$38 million) in transactional value. The programme is being expanded this year to include more supermarkets to help entrepreneurs extend their reach through retail outlets in Selangor’s rapidly growing and diversified food and beverage industry.
A key event at this year’s summit is the two-day Selangor Asean Business Conference (SABC), which will see business leaders, policymakers and academics discuss various factors important to Asean’s economic development. Keynote speakers invited to attend include Malaysia’s Minister of International Trade and Industry Tengku Zafrul Aziz, as well as industry representatives from Indonesia, Loas, Brunei, Thailand and the Asean Business Advisory Council.
The first day of the conference will include a panel discussion on how Asean can leverage its diverse economies and industries to drive innovation and create new opportunities for growth. Dr Juita Mohamad, director of the Economics and Business Unit at Malaysia’s Institute for Democracy and Economic Affairs, has been invited to attend as a moderator.
On the second day of the conference, trade representatives from around the region will discuss Asean’s future development, with a focus on its economic trajectory. Also in the spotlight will be the political landscape and its security issues, and their impact on regional economic development.
Panellists representing Vietnam, the Philippines, Thailand, Indonesia and Malaysia will discuss the investment landscape in Asean, and share country-specific investment insights into their respective nations. Panellists will also discuss the trends that have the potential to shape the region’s economy, as well as explore strategies to help Asean nations mitigate risk and maximise opportunities for growth.
Another panel discussion will focus on the digital potential of Asean through investments in areas such as e-commerce, artificial intelligence and digital infrastructure. Southeast Asia is the world’s fifth biggest economy, with more than 660 million consumers and projected economic gains of US$333 billion by 2030 from regional trade agreements.
“Asean’s digital economy grew to US$200 billion from gross merchandise value, three years earlier than anticipated,” Dato’ Hasan Azhari says, adding that Southeast Asia is home to more than 40 start-up unicorns, with the investment landscape going from strength to strength.
“Selangor will play a pivotal role in shaping Asean’s economic landscape,” Dato’ Hasan Azhari says. “As one of the pillars of SIBS, SABC serves as a platform for key economic players, stakeholders and thought leaders to engage in crucial discussions on market access, regional economic integration and entrepreneurship.”
More than 50,000 visitors are expected to attend SIBS 2023, drawing industry players, stakeholders and trade visitors from across the globe.
