Global Companies Fuelling Knowledge Transfer and SME Ecosystem Growth in Greater KL
Muhammad Azmi Zulkifli
Chief Executive Officer at InvestKL | Board Member | Cyclist at ??
When multinational corporations (MNCs) choose locations for their regional hubs, they weigh several critical factors, such as access to diverse markets, availability of skilled talent, and a conducive business environment. MNCs are increasingly recognising the role of a vibrant SME ecosystem, one Greater Kuala Lumpur (Greater KL) offers in driving their regional growth. The knowledge transfer facilitated by MNCs to local SMEs not only strengthens these smaller enterprises but also enhances their ability to innovate and compete. This dynamic interplay contributes to a robust economic foundation, making Greater KL an attractive destination for foreign direct investment (FDI).
We regularly engage in discussions with MNCs to showcase the advantages of establishing regional hubs in Greater KL. Through our promotional activities and the government's favourable policies, we secured RM3.3 billion in FDI in the first half of 2024 leading to the creation of 3,389 high-skilled jobs. However,?our focus goes beyond job creation.?We strive to create an environment where local businesses can thrive alongside global players through collaboration with the government, SMEs, universities, and MNCs.?True success lies in ensuring that foreign investment benefits the entire ecosystem,?driving knowledge transfer, empowering the local workforce, and strengthening the SME sector. This will ultimately play a contributive role in enhancing Greater KL's economic vitality and appeal.?
Job Creation and Upskilling Talents
One of the most significant ways MNCs contribute to knowledge transfer is by creating high-value jobs.?These positions not only offer attractive salaries and benefits but also expose our local talent to global best practices,?cutting-edge technologies,?and innovative business models.?
McDermott,?a leading engineering and construction firm,?exemplifies this by establishing its global business services hub in Greater KL,?creating over 870 positions,?with over 70% held by Malaysians.?The skills and knowledge acquired at McDermott then disseminate throughout the industry ecosystem as employees move on to other companies,?further enriching the local talent pool.
MNCs also recognise the importance of nurturing future talent.?Companies such as Leonardo Malaysia,?which specialises in aerospace,?defence?and security,?have established long-standing collaborations with universities and research institutions in Malaysia. Its current complex in Sultan Abdul Aziz Shah Subang Airport, which provides repair and maintenance services and functions as its training hub, employs 250 skilled Malaysians, including over 100 engineers, specialised technicians, logistics specialists, and training instructors. The Leonardo Training Academy, a provider of advanced helicopter piloting and maintenance training, has trained more than 4,000 local experts in various helicopter-related fields. These partnerships create a pipeline of skilled professionals,?ensuring a steady stream of innovation and growth for the industry.
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Collaborating with Universities to Equip Future Ready Talents
MNCs are also playing a crucial role in preparing Malaysia's workforce for the digital age by partnering with local universities to offer specialised training and development programmes, closing the gap between academia and industries.?Indra,?a global technology engineering company, invests in training and development programmes for Malaysians. They have developed three centres of excellence at Universiti Tun Hussein Onn Malaysia in Pagoh and two at the University of Kuala Lumpur,?focusing on automatic fare collection (AFC),?railway infrastructure simulation,?and cybersecurity.
These centres of excellence go beyond providing students with hands-on experience.?They also develop local capabilities in AFC technology, engineering and management, and enable our universities to earn regional revenue and contribute to international research.
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Indra's initiative is just one example of the widespread collaboration between MNCs and Malaysian universities. Numerous joint programmes between MNCs and universities continue to equip local graduates with the skills and knowledge needed to thrive in a globalised,?digital economy.
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Empowering Local SMEs and Strengthening the Ecosystem
Empowering local SMEs is also a core part of our mission at InvestKL.?We believe fostering partnerships between MNCs and local businesses is a win-win situation.
Take Signify,?a global leader in connected LED lighting,?for example.?They collaborate with Malaysian SMEs, leveraging their specialised skills and knowledge while providing them access to new markets and technologies. These partnerships allow Signify to tap into established networks,?gain valuable local market knowledge,?develop new products, and reach new market segments.?In return,?local SMEs benefit from Signify's resources and expertise,?fostering mutual growth and innovation. This collaborative approach strengthens the entire business ecosystem,?making it more resilient and adaptable.
PPG,?an American leader in paints,?coatings,?and speciality materials,?also sees the value in partnering with local SMEs. One of their Malaysian partners,?an engineering company,?helps design and fabricate plant equipment,?shortening lead times and providing local support for customers.?In return,?PPG shares world-class business processes and practices with this local SME partner,?enriching their knowledge in the coatings value chain.
These collaborations not only benefit MNCs but also create pathways for local SMEs to expand their reach and capabilities.?By partnering with global players,?these SMEs gain access to new markets,?technologies,?and expertise, propelling their growth and fostering innovation within their businesses.?InvestKL's data shows that over 2,300 SMEs has benefitted from our MNC investments, highlighting the significant opportunities available for local businesses to thrive in this interconnected ecosystem.
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The Future Beyond FDI
Our commitment to building a robust knowledge-based economy is key to Malaysia's development.?MNCs play a crucial role in this growth,?going beyond job creation and upskilling to partner with local businesses,?drive innovation,?and invest significantly in our country.?This influx of FDI not only strengthens our businesses and enhances productivity but also solidifies Malaysia's position as a competitive player on the global stage,?ultimately contributing to our vision of becoming a developed nation.
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6 个月I really appreciate the depth of your analysis, En Azmi. Especially on how MNCs and local SMEs are working together. I have seen this dynamic in action in Greater KL. Companies like Intel are not just creating jobs but also mentoring local firms like Globetronics. That partnership shows what is possible when there is genuine knowledge transfer. It helped Globetronics become a significant player in the semiconductor industry. However, I guess the real challenge is making sure these successes are not just isolated cases. It might be worth thinking about how we can build industry-specific clusters. MNCs and SMEs need regular interaction to sustain success. For example, initiatives like the Klang Valley’s Digital Free Trade Zone could be a model. It provides a space where continuous engagement and resource sharing help our SMEs consistently meet global standards. It is about ensuring these collaborations have long-term impact, not just short-term gains.