Source: PGF Capital hopes for strategic funds to boost local direct investment (nst.com.my)

KUALA LUMPUR: PGF Capital Bhd has urged the government to encourage more investment in Malaysia in the upcoming Budget 2023 to enhance the performance of domestic businesses.

Executive chairman Fong Wern Sheng said the earlier introduced Domestic Investment Strategic Fund’s (DISF) objective was to harness and leverage outsourcing opportunities created by multinational corporations operating in Malaysia, intensify technology acquisition of domestic companies, and enable them to obtain international standards and certifications in strategic industries.

“The introduction of DISF has allowed Malaysian-owned companies to upgrade machinery equipment, increase research and development activities, upskill talent through training initiatives and achieve international certification of their products,” he said.

The company is hoping for similar strategic funds to encourage local companies to invest in the country to spur local direct investment instead of just focusing on foreign direct investment.

Fong also highlighted the need for upskilling programmes to improve employee engagement and retention, attract new talent, increase collaboration between departments and accelerate the adoption of new trends within the company.

“The manufacturing industry employs and advances many local talents, and having talents that are agile and adaptable to the shifting industry needs provides an opportunity to maximise employee potential and allows for career progression,” he said.

Fong suggests the government provide export incentives to encourage international trade, as he noted that Malaysian companies need to sell beyond their shores to remain relevant in the industry.

As overseas business trips have become more costly since the pandemic, the company hoped for tax incentives for a triple deduction on expenditures related to business trips to promote exports.

“The government can also look into how to provide grants and incentives for online advertisements or marketing campaigns of local companies to increase their overseas sales,” said Fong.

Fong also urged the government to provide grants to promote automation in agriculture as the industry adopts the use of modern technology for the sector.

“However, not all farmers can afford to invest in new technologies.

“We hope the government can provide matching grants to farmers that adopt proven automation technologies that can reduce their reliance on manual labours,” he added.