While the campaign is slanted towards the manufacturing sector, the latter needs a conducive ecosystem to flourish including infrastructure, in which Malaysia is a strong player.
“We are not strong in the manufacturing sector, but we can participate in infrastructure development,” Minister of International Trade and Industry Datuk Seri Mustapa Mohamed, who recently concluded a trade and investment mission to India, said.
Malaysia is no stranger in India’s infrastructure development.
According to the Construction Industry Development Board (CIDB), Malaysian firms have completed infrastructure projects worth US$5.1 billion (RM18.17 billion) in India.
Malaysian construction and infrastructure companies have vast opportunities opened up in India’s effort to enhance its infrastructure and connectivity towards a better manufacturing ecosystem, he said.
The services industry supporting the manufacturing ecosystem would also have opportunities to latch on the boom in the manufacturing sector in India.
The launch of such a mega investment promotion campaign is an excellent initiative as the increase of activities in the region would invigorate the supply and value chain in the area.
“Malaysian firms have good appetite in the their ventures abroad and with the campaigns and initiatives in India.
“We hope more Malaysian companies can be active in India and likewise Indian companies in Malaysia,” he said.
Malaysian intermediate export items have already been part of the Indian manufacturing chain as items such as chemicals, palm oil derivatives, parts and components as well as electrical & electronic products have been used by manufacturing companies in India to produce end-products, said Mustapa.
“We hope this trend would increase as investments flow into India to “Make in India,” said the minister.
Out of the 25 identified sectors, Malaysian companies have a presence in five sectors — auto parts, construction, mining, road and highways, and aviation.
Hence, there are many more underserved areas with opportunities for Malaysian businesses, such as food processing, tourism, oil and gas, media and entertainment.
Indeed, Malaysian investment in India has been on an increasing trend.
In 2013, Malaysian investments in India recorded a significant increase of 43.89 per cent to reach RM6.04 billion (US$1.92 billion) from RM3.39 billion (US$1.09 billion) in 2012.
Malaysia-India total trade from January to November 2014 touched RM40.91 billion (US$12.59 billion), while in 2013 it was RM42.12 billion (US$13.38 billion).