DHL Express and the Malaysian Investment Development Authority (MIDA) have entered into a Memorandum of Understanding (MOU) to strengthen the country's position as a foreign direct investment (FDI) destination.

The partnership aims to consolidate further the contribution of the supply chain industry toward national economic growth.

In a statement, DHL noted that the agreement builds on a longstanding partnership, leveraging DHL Express' global network and local expertise to attract multinational companies to enter and expand in Malaysia.

Both parties are set to intensify joint efforts to drive overseas inflows of capital, infrastructure, and knowledge to develop key priority sectors.

These include electrical and electronics, pharmaceutical, digital economy, aerospace, and chemicals.

In 2022, Malaysia recorded approved investments totalling RM264.6 billion (US$59.9 billion) from 4,454 projects. The services sector represented the largest chunk of total approved investments, with RM154 billion (US$34.8 billion), followed by RM84.3 billion (US$19.1 billion) in the manufacturing sector.

Notably, FDI was the major contributor to the total approved investments at 61.7% or RM163.3 billion (US$36.9 billion), while Domestic Direct Investment contributed 38.3% or RM101.3 billion (US$23 billion), proving that Malaysia continues to inspire confidence and remains a preferred destination for global investors seeking stable, long-term opportunities.

"Despite the unexpected challenges that our initial formalised MoU in 2019 encountered with the advent of the COVID-19 pandemic, today's 2 signing ceremony reaffirms our commitment to strengthening the robust partnership between MIDA and DHL Express Malaysia," said YBhg. Tan Sri Dato' Seri Dr Sulaiman Mahbob, chairman of MIDA.

With this new agreement, we are confident that Malaysia will continue to shine brightly as the preferred investment destination for global investors."

"We are hopeful that this strong private and public partnership will help solidify our investors' confidence and broaden business opportunities. Essentially, ensuring that there is a continuous sustainable stream of quality investment activities in the country in line with our nation's New Investment Policy," he added.

DHL noted that Malaysia is well ahead of its peers in terms of the depth of its globalisation.

Citing its latest DHL Global Connectedness Index 2022 — a study on the flow of trade, people, capital, and information worldwide — Malaysia ranks second in Trade Connectivity in Southeast Asia and 14th out of 171 economies globally.

Malaysia is also among the top ten with the largest connectedness improvements over the data period of 2001 to 2021.

Julian Neo, managing director of DHL Express Malaysia and Brunei, noted that DHL is "well equipped" to support companies looking to diversify their supply chains in Malaysia.

DHL Express Malaysia operates a robust aviation and ground network encompassing six gateways, 21 service centres, 185 retail points of sale, more than 300 vehicles, over 60 weekly flights, and four dedicated aircraft.