“Cikgu Zafrul” Gives Lesson On Investments, Attempt Gets Mixed Reactions
It’s actually not easy to apply for a business investment. The approval from MIDA is even harder to obtain.
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Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz shared a video on X (formerly Twitter) recently to explain the requirements needed for an investment to be approved by the Malaysian Investment Development Authority (MIDA).
The video, presented in the style of a short skit (with mild comedic elements), shows Zafrul acting as a teacher (complete with a rotan) who is educating four individuals pretending to be his students about investment approvals in a classroom.
Zafrul said that a Memorandum of Understanding (MOU) between two companies is not considered an approval of investment by MIDA.
“The application of a company to run business activities is approved under the Industrial Coordination Act 1975. If the company has shareholder funds of at least RM2.5 million or a minimum of 75 full-time employees, it is required to submit an application for a manufacturer’s licence to MIDA first,” Zafrul explained.
Some of the details the company are required to submit are:
- Company details
- Industry details
- Location of the project
- Products that are manufactured
- Project implementation period
- Poject’s annual costs
- Shareholder details
- Equity and other details
Additionally, Zafrul also highlighted a list of requirements for approval:
- Number of jobs created from the business
- Percentage that make up management, technical, and highly skilled workers
- Source of raw materials
- Components used in manufacturing
“We want to create high-income jobs for the people. If all of them want unskilled workers, in the long run, how will the country advance?” he said.
Furthermore, Zafrul explained that the need to declare source of materials in the application is to ensure new factories or businesses will use locally-sourced materials, which in turn will help local suppliers generate better income
“Because of this, new businesses will also be established to meet the demands of the industry, and that’s how the country’s ecosystem will grow,” he added.
Two more important components that are required to be submitted to MIDA are the company’s revenue projections, as well as research and development (R&D).
According to Zafrul, companies that come to Malaysia must have elements of R&D for the development of local technology.
“So now we can see, that it’s not so easy to get an investment approved. We must fulfil all the aspects that were specified earlier and only then we can acquire a manufacturer’s licence.
“If it’s just an MOU submission, the application is confirmed to be declined,” Zafrul said.
He added that since 2021 to March 2024, only 1.6% of of projects have not been implemented, and the remaining 98.4% have either been completed, currently being implemented, or is in the planning phase.
This means that once the investment is approved, it is “as good as done” and it’s just waiting to be implemented.
Mixed reviews by netizens
Many users on X applauded the video, saying it is both entertaining and informative.
However, there were some who criticised the video, questioning the number of MOUs and some projects that never took off.
A few also found the video cringey, and that Zafrul should not be starring in his own content.
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