New Industrial Master Plan (NIMP) 2030 of Malaysia

August 2023

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Strategies and Action Plans

The New Industrial Master Plan (NIMP) 2030 is a strategic blueprint designed by Malaysia to enhance the nation’s industrial sector, with a specific focus on the Digital and Information and Communication Technology (ICT) industry. The plan aims to transform Malaysia’s industry by leveraging emerging global trends, supply chain disruptions, geopolitical landscapes, digitalisation, and environmental, social, and governance (ESG) considerations.

Key Objectives and Missions

The NIMP 2030 is guided by several missions and strategic objectives:

  1. Increase Economic Complexity:
    • This mission aims to expand Malaysia’s industrial activities into higher value-added segments of the value chain.
    • Specific strategies include creating global integrated circuit (IC) design champions in Malaysia, attracting global leaders to establish wafer fabrication, and developing strong local SMEs to support industry champions.
  2. Tech Up for a Digitally Vibrant Nation:
    • The focus here is on accelerating technology adoption across the nation, enhancing digital infrastructure, and fostering technological innovation.
    • Malaysia aims to establish itself as a generative AI hub and transform 3,000 smart factories by 2030.
  3. Develop New and Existing Clusters:
    • This mission focuses on the development of resilient and inclusive industrial clusters, with an emphasis on sustainability and net-zero carbon emissions.
    • Strategies include fostering sectoral decarbonization pathways, enhancing ESG practices, and developing circular economy frameworks.
  4. Safeguard Economic Security and Inclusivity:
    • The aim is to ensure balanced and inclusive participation across different segments of the population, with a particular focus on Bumiputera participation and women’s involvement in high-skilled jobs.
    • The plan also includes strategies to strengthen supply chain resilience and regional industrial clusters.

Enablers

To support the successful implementation of the NIMP 2030, several enablers have been identified:

  • Talent Development and Attraction:
    • The plan emphasises the need to upskill and reskill the current workforce to meet the demands of Industry 4.0.
    • Strategies include expanding Technical and Vocational Education and Training (TVET) programs and improving the policy framework to attract high-skilled foreign talents.
  • Mobilisation of Financing Ecosystem:
    • Financial incentives and funding mechanisms, such as the NIMP Industrial Development Fund and the NIMP Strategic Co-Investment Fund, are introduced to support industrial digitalisation and decarbonisation efforts.
    • Green financing instruments like green sukuk are also promoted to facilitate the transition towards sustainable practices.

Digital and ICT Sector Focus

The NIMP 2030 Sectoral Plan for the Digital and ICT industry outlines specific strategies and action plans aligned with the broader missions of the NIMP 2030. Key focus areas include:

  • Digital Economy Growth:
    • Malaysia aims to increase the contribution of the Digital Economy to the national GDP, with a target of reaching 25.5% by 2025.
    • The MyDIGITAL initiative plays a crucial role in driving this transformation by fostering digital literacy, creating high-income jobs, and promoting digital technology adoption across sectors.
  • Fourth Industrial Revolution (4IR):
    • The plan seeks to propel Malaysia’s manufacturing sector into Industry 4.0 by driving the adoption of advanced technologies like Big Data Analytics, IoT, and AI.
    • Standards for smart manufacturing and Industry 4.0 technologies will be established to ensure seamless integration across industries.
  • Artificial Intelligence (AI):
    • AI is identified as a key driver of innovation and productivity across industries. The AI-RMAP, launched in 2021, aims to create a thriving AI innovation ecosystem in Malaysia.
    • Generative AI, in particular, is highlighted for its potential to revolutionise industries such as pharmaceuticals, materials science, and agriculture.
  • Cyber Security:
    • As Malaysia embraces digitalisation, cybersecurity becomes increasingly important. The plan outlines strategies to enhance cyber resilience across the public and private sectors, ensuring the security of information systems and manufacturing lines.

Challenges and Opportunities

The NIMP 2030 also identifies several challenges that could impede the growth of the Digital and ICT industry, including:

  • Digital Accessibility:
    • The digital divide remains a significant challenge, particularly among lower-income groups and in rural areas. Strategies to improve broadband access and digital literacy are critical to addressing this issue.
  • Digital Talent and Skills:
    • There is a shortage of high-skilled digital talent in Malaysia, particularly in emerging technologies like AI and IoT. The plan emphasises the need for talent development and the attraction of foreign expertise to bridge this gap.
  • Research and Development (R&D):
    • The decline in Gross Domestic Expenditure on R&D (GERD) poses a challenge to technological advancement in the ICT sector. The plan calls for greater collaboration between the public and private sectors to foster innovation.