PETALING JAYA: Selangor International Business Summit’s (SIBS) inaugural virtual edition is expected to see approximately RM60 million in transaction value this year, according to Selangor Investment, Industry, Commerce and Small and Medium Enterprises senior executive councilor Datuk Teng Chang Khim.
However, he outlined that this is not a hard target for the summit, given the uncertainties that have swamped the global economy due to the pandemic which resulted in a transition from a physical to a virtual exhibition.
In its previous iterations, SIBS has seen the transactional value gathering strength from RM82 million in its first edition in 2015 to RM247.3 million recorded in the previous year.
“Given that we only had three months to pivot to a virtual summit, which is uncharted territory, there are no hard targets for this year’s edition though it is estimated to achieve roughly RM60 million, a third of the amount raised last year given that there was only a third of the time to prepare,” Teng explained to the media at a virtual press conference.
This year, SIBS has attracted 284 exhibitors from 12 countries to its virtual summit compared to over 500 exhibitors it attracted in the previous year but it also sees a larger buyer turnout of 70 from 24 different countries.
He stated these numbers are an achievement with the change in format especially with the increase in the number of buyers.
“Our target is to promote this platform as a platform for international trade for Selangor, in which the state has targeted to be the global trading hub,” said the state exco member.
On the investment front, the state has felt a pinch due to the weaker global sentiment as foreign direct investment stood RM3.3 billion as of end-June 2020, a far cry from the RM17 billion reported last year.
For the full year, Teng estimates the figures to improve to RM8.5 billion, as there are an estimated RM5 billion investments into the state awaiting the approval from Malaysian Investment Development Authority.
For 2021, he stated that Selangor has not set any investments target due to the economic uncertainties.
Meanwhile, the state exco member acknowledged that the imposition of the conditional movement control order will certainly have an impact on the state’s economic performance.
He cited a report that estimated a 4.4% adjustment to Malaysia’s GDP attributed to the containment measures imposed today in Selangor, Kuala Lumpur and Sabah but remain a prediction at this juncture.
“Of course in terms of economic activity the measures have affected our business which is unavoidable but we have to think about the long term. Although, the economic activities are still allowed to be carried out which I hope will minimise the impact on the economic development.”
In regards to the state’s aerospace ambitions, Teng is confident that the sector will take off once again after the international borders are open.
“We have to be very patient as this is an important and strategic industry for the world and Selangor is giving a lot of focus on the industry.”
Towards this goal, he revealed that the state government is planning to organise an international aviation show next year to demonstrate its commitment and efforts towards the aerospace industry.
