Melaka targets RM30b in investments over next 5 years - Ab Rauf

MELAKA: Melaka is targeting RM30 billion in investments over the next five years, averaging RM6 billion annually, with a focus on the electrical and electronics (E&E), semiconductor and high-technology sectors.

Caretaker Chief Minister Datuk Seri Ab Rauf Yusoh said Melaka had an active semiconductor and microelectronics industry, with several prominent global manufacturers operating in the state.

"This provides opportunities to further develop the industry's ecosystem, particularly in the microchip sector," he told Bernama.

Rauf said one of the developments planned to support the E&E industry was the German Technology Park (GTP) in Ayer Keroh, covering 302ha and to be developed through a partnership between the private sector and the state government.

He said the technology park would draw inspiration from Germany's more systematic and structured approach to industrial park management to attract international companies.

The presence of major companies such as Infineon, Texas Instruments and Koa Denko in Melaka also demonstrated the state's potential as a destination for high-technology investments, he added.

Their expansion in the state could further attract new investments, particularly in the semiconductor industry and its supporting sectors.

Rauf said the state government was coordinating efforts among its agencies to create a business-friendly environment, reduce bureaucracy and attract more investors.

"Investment creates jobs, and when people have jobs, the economy will grow," he said.

He said Melaka's strategic location, coupled with more competitive land prices and operating costs compared with some other states, gave it an advantage in attracting foreign and domestic investments.

The state government would also continue its international promotional efforts to showcase Melaka's potential as an investment destination, highlighting its industrial ecosystem, workforce and supporting facilities.