How does Selangor ensure domestic suppliers benefit from investments?

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Selangor to Mandate Local Content Requirements for Foreign Investors

Selangor plans to ensure domestic suppliers benefit directly from incoming investments by requiring foreign investors to incorporate local content requirements. This measure will be implemented under the draft Selangor Plan 2 (RS-2), reinforcing the state's commitment to strengthening its investment ecosystem and fostering value creation.
Local Content Mandate Under Draft Selangor Plan 2

The state executive councillor for investment, trade and mobility, Ng Sze Han, announced that the draft Selangor Plan 2 (RS-2) will include provisions for mandatory local content requirements. This policy aims to create a direct link between foreign investment and the growth of domestic businesses, ensuring that local suppliers are integrated into the supply chains of incoming companies.
Strengthening the Investment Ecosystem

These local content requirements are part of a broader strategy to enhance Selangor's investment ecosystem. The state has consistently focused on attracting high-quality investments, particularly in technology-intensive sectors such as semiconductor chip design, electric vehicles (EVs), the digital economy, and aerospace. By ensuring domestic participation, Selangor aims to maximise the value generated from these investments for its local economy.
Direct Benefit for Domestic Suppliers

The explicit goal of these new requirements is to guarantee that domestic suppliers receive tangible benefits from foreign investments flowing into Selangor. This approach moves beyond simply attracting large investment figures and focuses on creating value chains that actively support and develop local businesses, thereby contributing to the state's economic resilience and growth.

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How does Selangor ensure domestic suppliers benefit from investments?

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