Mida: Projects worth RM7b approved in Q1

THE Malaysian Industrial Development Authority (Mida) approved 244 projects valued at RM7.1 billion in the first quarter of this year, said its chairman Tan Sri Dr Sulaiman Mahbob.

Foreign direct investments (FDIs) accounted for RM3.8 billion of the approved investments.

The projects were mostly in electronics and electrical with investments worth RM2.1 billion, metal-based (RM1.1 billion) and metal fabrication (RM777 million).

"These three industries contributed RM4 billion or 56.2 per cent of the total approved investments," Sulaiman said at the opening of a seminar on food processing industries in Kota Baru, Kelantan, yesterday.

He said the country is still an attractive investment location for thefood processing sector.

"We approved 72 projects with investments totalling RM2.36 billion for the industry last year. From the figure, RM1.25 billion or 53 per cent were FDIs.

"In the January-April 2010 period, the investment in the food industry (including drinks) accounted for RM812.31 million or about 10 per cent of the total projects approved," Sulaiman added.

Three states accounted for the highest investment in the food industry during the period under review. They were Selangor with RM459.94 million, Malacca (RM75.33 million) and Johor (RM72.29 million).

Sulaiman said the food processing industry is one of the sectors that was relatively untouched by the global economic crisis and world demand for processed foods is expected to grow.

"At present, the food processing industry contributes 10 per cent of the total local manufacturing products. This sector is dominated by small- and medium-sized industries, which are mostly owned by locals.

"Besides the frozen food and cocoa products sector, the industry is focused on the local market and there are a lot of opportunities for both local and foreign investors to expand the market," he added.