Govt To Review Import Needs, Formulate Policies To Strengthen Domestic Industries
KUALA LUMPUR, Aug 5 (Bernama) -- The government will assess the country's import needs, including capital goods, and formulate policies to reduce dependence on external ecosystems as Malaysia seeks to strengthen domestic industries and create greater value from trade and investment.
Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said it is important to create genuine value in Malaysia, develop home-grown technologies, and ensure that rising trade and investment translate into better outcomes for Malaysians.
"Last year also marked an important national milestone. For the first time in Malaysia's history, total trade surpassed RM3 trillion. Exports increased by 6.5 per cent to RM1.61 trillion, while imports rose by 6.2 per cent to RM1.45 trillion. Malaysia consequently recorded a trade surplus of RM151.8 billion," he told reporters in conjunction with RHB Bank Bhd's RHB Progress Series 2026 conference here today.
Johari said Malaysia has long aspired to become a high-income nation. "According to the World Bank, the current threshold for a high-income economy is a gross national income (GNI) per capita of US$14,375. Currently, Malaysia is roughly 16 per cent away from that target at US$12,380. As this threshold will continue to move over time, closing this gap will therefore require sustained improvements in productivity, innovation and economic complexity," he added.
He said a business-as-usual approach is no longer sufficient. "We must possess the strategic agility to adapt to changing circumstances, diversify partnerships and make decisions that best safeguard our long-term national interests," he added.
Johari said Malaysia should also review which products and capital goods to continue to be imported while expanding domestic production where local capabilities exist. He warned that relying solely on lower cost imports could weaken domestic industrial capacity over time, making it important to develop policies that encourage local manufacturing and technological capabilities.
As an example, Johari pointed to Malaysia's iron and steel industry, which was once self-sufficient but has since declined following the entry of larger foreign players producing similar products. "We welcome foreign investors, but they should complement our ecosystem by bringing products and technologies that do not yet exist in Malaysia. That way, we can reduce imports while allowing both foreign and local companies to grow," he said.
At the same event, RHB Bank launched RHB Pay, Malaysia's first bank-owned unified online payment gateway, providing businesses with a single platform to accept digital payments and receive funds directly into their RHB accounts. Built, owned and operated entirely within RHB, the platform offers bank-grade security, automated reconciliation, enhanced cash flow visibility and faster access to funds.
RHB PAY enables businesses to accept card payments, FPX and DuitNow Pay through a single integration. Additional payment capabilities, including e-wallets, QR payments, direct debit and auto debit, are expected to be introduced in Phase Two, targeted for rollout in the fourth quarter of 2026.
The platform is designed for mid-sized enterprises, commercial businesses, corporates and government-related institutions seeking a streamlined and scalable payment acceptance solution.
-- BERNAMA