5 mins read

Ever Heard of NIMP 2030? Here’s How It Will Impact M’sians & Help Local SMEs

December 15, 2023
World of Buzz
5 mins read

Attention fellow entrepreneurs! Whether you’re looking to start a new business or expand your startup, the New Industrial Master Plan 2030 (NIMP 2030) is all set to bring your business to new heights!

In case you haven’t heard, NIMP 2030 is an industrial policy for the manufacturing and manufacturing-related services sector. Launched by YAB Prime Minister and the Ministry of Investment, Trade and Industry (MITI), this policy is a holistic and multifaceted strategy that aims to drive Malaysia’s industrial demand in seven years.

Four interlinked missions have been outlined to meet the targets and goals of NIMP 2030. Let’s explore these missions in-depth and find out how Malaysians can benefit from the industrial policy!

Mission 1: Advance Economic Complexity

Moving beyond traditional models, NIMP 2030 aims to revolutionise manufacturing and drive innovation in this dynamic industry. This fosters the production of sophisticated goods, enhancing Malaysia’s competitiveness in the global market.

Here’s how this mission can be achieved:

  • Enhance high-value-added activities in high-growth and high-value sectors, such as electrical and electronic products (E&E), chemical, aerospace, pharmaceuticals, and medical devices.
  • Build a supportive ecosystem for these activities by strengthening local SMEs and fostering cross-sector connections (e.g. M&E and Medical Devices).
  • Encourage ASEAN collaboration to enhance supply chain integration.
  • Increase the visibility of SMEs through IndustryConnect conferences.
  • Boost the Research, Development, Commercialisation and Innovation (RDCI) ecosystem by assigning specific goals to universities and implementing an enhanced National IP Policy.
  • Amplify manufacturing exports through trade advocacy campaigns, a refreshed “Made in Malaysia” brand, and addressing trade barriers and standards compliance.
Source: 123RF

Mission 2: Tech Up for a Digitally Vibrant Nation

In line with the digital era, NIMP 2030 drives a nationwide digital transformation to boost innovation, productivity, and economic growth. Other than transforming 3,000 smart factories, the policy also aims to:

  • Boost technology adoption by enhancing Industry4WRD programmes and expanding digital infrastructure (JENDELA).
  • Shift away from low-skilled labour by introducing multi-tiered levies and automation requirements for new Manufacturing Licences.
  • Foster innovation by nurturing local solution providers, AI leaders, and system integrators, and promote data analytics using a national digital platform.
  • Streamline government digitisation through digitalising all government touch points in business cycles.
Source: Lifestylememory

Mission 3: Push for Net Zero

Besides propelling Malaysia’s economy, NIMP 2030 is also committed to sustainability and fighting climate change. Here are the proposed strategies to decarbonise the manufacturing sector:

  • Encourage sustainable practices by:
  • Creating decarbonisation plans for different sectors
  • Addressing challenging sectors for emission reduction
  • Implementing carbon policies and taxes
  • Launching transition programmes through the iESG framework
  • Promote renewable energy adoption by enhancing adoption schemes and improving accessibility.
  • Catalyze green growth in areas like circular economy frameworks, electric vehicles (EVs), and carbon capture, utilization, and storage (CCUS).
  • Embrace green infrastructure and transform industrial estates into eco-friendly hubs.
Source: freepik

Mission 4: Safeguard economic security and inclusivity

Apart from its sustainability endeavours, NIMP 2030  also aims to create a robust environment supporting supply chain resilience, entrepreneurship, SME growth, and fair access to opportunities.

This initiative champions inclusive growth by empowering local communities and SMEs to integrate seamlessly into Global Value Chains! Here’s the plan:

  • Strengthen supply chains by:
  • Strategizing resilience for critical sectors
  • Fostering collaboration through G2G and G2B programmes
  • Introducing National Mineral Policy for essential mineral processing
  • Promote climate-resilient development by:
  • Creating adaptation pathways for different sectors
  • Developing adaption industries
  • Strengthening climate resilience measures
  • Boost regional development by expanding and aligning industrial plans between Federal and State levels.
  • Empower Bumiputera participation to create an inclusive workforce through:
  • Tindakan Pembangunan Bumiputera 2030
  • Programmes promoting women’s involvement in high-skilled manufacturing roles
Source: 123RF

How would Malaysians benefit from NIMP 2030?

This industrial policy is expected to inspire new businesses and support the growth of local SMEs, all while championing sustainability and economic inclusivity. Even if you’re not an entrepreneur, this policy holds indirect benefits for you too:

Nation-wide economic growth

This policy sets its sights on boosting the Gross Domestic Product (GDP) of the manufacturing sector by 6.5% annually. If we hit this target by 2030, it could mean an impressive addition of RM587.5 billion to Malaysia’s overall GDP!

Source: 123RF

New employment opportunities

NIMP 2030 is expected to also drive employment up by 2.3% yearly, which creates an additional 600,000 jobs that are mostly high-skilled. This sums up to a total of 3.3 million new jobs by 2030!

This ambitious initiative not only aims to propel industrial growth but also seeks to significantly boost the nation’s workforce, offering an array of promising career prospects.

Source: partystock

Increased median salary

Since the policy aims to decrease the country’s overreliance on low-skill labour, the new positions arising are likely to be high-skilled. Consequently, this shift is anticipated to elevate industry pay by 9.6%, reaching RM4,510 by 2030!

Source: cookie_studio

As you can see, NIMP 2030 is not just about economic growth; it’s equally dedicated to empowering local entrepreneurs and business owners, fostering a shared success that belongs to every Malaysian!