Selangor: Gateway to Asean and beyond

The future looks bright in Southeast Asia. And the state of Selangor, a key pillar of the Malaysian economy, is well poised for inclusive growth and prosperity. In 2023 it accounted for 25.9 per cent of the country’s GDP and achieved a robust annual growth rate of 5.4 per cent, a figure well ahead of the national average of 3.6 per cent.

Not surprisingly, Selangor is also a driver of inbound investment, building on its existing strengths to attract multinationals, manufacturers, hi-tech enterprises and domestic start-ups. All are keen to take advantage of its strategic location, excellent connectivity and potential benefits as a gateway to the fast-expanding markets of Southeast Asia.

Since its establishment in 1999, Invest Selangor has played a key role in achieving Selangor’s status as “The Golden State of Malaysia”. A government body responsible for advising and supporting new business ventures, the organisation offers practical guidance on everything from licence applications, property contracts and possible partnerships to staff recruitment, local regulations and tax regimes. In its role as facilitator, it clears obstacles, making the whole planning and set-up process as smooth as possible.

“To facilitate project implementation, one of our main functions is to help coordinate the various approvals that need to be obtained from different government agencies,” says Dato’ Hasan Azhari Bin Haji Idris, CEO of Invest Selangor. “We hold monthly meetings to discuss the progress of applications, issues and challenges at the federal, state or local level, and we have both pre-investment and post-investment teams. We don’t make it compulsory for investors to engage or meet with us; it’s an option. But sometimes it can be tricky to navigate land matters or infrastructure requirements. It’s usually better if companies make us their first stop.”

Invest Selangor’s strong emphasis on regional collaboration and economic growth has yielded some impressive results. In 2023, it outperformed forecasts by recording an overall investment of RM55.3 billion (US$13.2 billion) of which just over RM17.3 billion was attributable to foreign direct investment.

The surge in economic activity resulted in 1,319 new investment projects and the creation of more than 33,000 jobs. Building on that success, Malaysia hopes to help make the Association of Southeast Asian Nations (Asean) the world’s fourth-largest economy by 2030, behind only the United States, China, Japan and Germany. Achieving that ambition means capitalising on the talents of a young, tech-savvy workforce and the demand generated by vibrant domestic markets and strong international trade ties. It also depends on revitalising established industries and seizing opportunities linked to rapidly advancing sectors such as renewable energy, the digital economy and biotechnology.