Interview with Dato' Jalilah Baba, MIDA's new Director General

MIDA or Malaysian Industrial Development Authority which had its 40th anniversary last year plays a vital role as the country’s foremost promotion agency in the international arena.

The Industrial base in Malaysia has been steadily growing over the last three decades with an ever expanding role for manufacturing. Malaysia often acts as a springboard into the ASEAN ( Association of South East Asian Nations) markets. Free Trade Agreements with nations like Japan are also likely to further boost the countries international reach, while China and India continue to act as magnets.

That said Malaysia’s top political and business leaders are keenly aware of the necessity to keep Malaysia’s trading edge sharp with major plans afoot to raise its industrial sector higher up the value chain- a process with wide ranging implications all the way from educational policy to municipal planning.

MIDA recently celebrated its 40 year anniversary along with ASEAN and Malaysia, marking 50 years of nationhood- all in 2007.

On this occasion and on the eve of Mida’s next Trade and Investment Seminar to be held in New York and Detroit on May 19th, I recently sat down with Dato’ Jalilah Baba, MIDA's new Director general who accorded an interview to The Washington Times, outling MIDA’s increasingly important and strategic role in the industrialization of Malaysia.

1. I have noted that your new Minister of Trade and Industry, Tan Sri Muhyiddin Yassin, wants to have a more "targeted" approach to "tapping" global markets. Will these approach mean a change in the way MIDA does business in the US Market? If so will you adapt to this approach in your next seminar in New York?

Definitely not, its business as usual, as we have maintained a targeted approach all along.

Through our global offices we strive to identify the companies and corporations that are the global players and succestible to invest or re locate to Malaysia.

For example in the case of our upcoming seminar in Detroit we targeted automotive companies and their related industries prior to the seminar. These are the ones that have been targeted. In other words once we identify the city, we target the industries around that city.

In the case of New York we are targeting the financial services, real estate, global operation headquarters etc.

2.Do you see an increase in foreign direct investment in Malaysia despite the global economic downturn?

We are positive. A Large extent of our exports go to the USA, but you must also remember our source of investment doesn’t come from the USA alone, although the US ranks in the top ten, other countries such as Japan, Korea ,Taiwan are important sources of foreign investment and we are also targeting investments from the Middle East. This will offset any drop in Investments from the USA if there is one . Outsourcing from the USA could also increase during the present economic downturn in the USA as the country seeks to lower costs and seek more economic alternatives. Malaysia ranks as number three in the world as an outsourcing center for the USA.

3. Are you optimistic for a Free Trade Agreement this year?

I think its general knowledge already that there have been seven rounds and although the term has expired the interest is there and discussions continue.

4. Despite the fact that a Free Trade Agreement has not been reached yet trade between Malaysia and the USA trade seems to be doing very well. What would you tell to a future US investor that Malaysia is the place to be?

Why Malaysia? Well definitely they should look at Malaysia as their profit center. As you know, even before signing any FTA the trade between Malaysia is very great and we would welcome any opportunity.

5. The economic corridors, i.e Iskandar etc. seem to be promoting themselves to the outside world on their own. Is this true? What is your medium and long term view on the economic potential of these"cooridors"? Does Mida team up with them to provide assistance to potential investors from abroad?

Mida has been their extension. They had to work with us as the first, as future investors look at the country as a whole before selecting any specific region. Once they recognize Malaysia’s potential ,then they look at specific regions. Up to that point the regions work very closely with us.

Having said that the regions do go out on their own targeting specific industries that could be of interest to them.

The regions have great potential. Each corridors have their specific strong points. For example Iskandar's asset would be the real estate market and services given their proximity to Singapore. The Northern Economic corridor would be more related to the modernization of agriculture turning the traditional into higher tech, bio tech and research..The Eastern region would be wood based and natural resource oriented.