Beyond Cost 2024

The Partnership for Global Investment and Infrastructure (PGI) is a collaborative initiative between Group of Seven (G7) nations, led by the US, to help fund the infrastructure needs of low- and middle-income countries worldwide.PUBLIC SECTOR INTERVENTION 1 Partnership for Global Investment and Infrastructure, United States of America The strategy is a comprehensive initiative designed to develop and expand the country’s semiconductor system, focusing on infrastructure, talent and industry partnerships.PUBLIC SECTOR INTERVENTION 2 National Semiconductor Strategy (NSS), MalaysiaPUBLIC-PRIVATE PARTNERSHIP 1 Port expansion, DP World and Dominican Republic The Dominican Republic partnered with DP World in 2003 to harness its strategic position in Caribbean trade, creating DP World Dominicana – a $700 million project responsible for building the island’s most modern port. Since President Abinader inaugurated its expansion in 2020, the port has managed 68% of DR’s maritime cargo, created over 2,000 jobs and led to a projected 5-6% growth in GDP , outpacing the region’s 2-3%. With an investment exceeding $100 million, DP World has developed 112,000 square metres (m2) of warehouses and 3 million m2 on the Caucedo peninsula, doubling its footprint to attract nearshoring for the US. Through innovations like CARGOES TOS+ and electric vehicles, DP World supports sustainable, paperless customs and single-window port processes, boosting security, efficiency and customs revenue. This public-private partnership enhances DR’s competitiveness and trade resilience, aligning with its 2030 Agenda for a sustainable, prosperous future. Source: DP World Source: The White House. (2024). FACT SHEET: Partnership for Global Infrastructure and Investment at the G7 Summit.Impact Financial Regulatory Operational Strategic Over the past three years, the US and its partners have mobilized over $60 billion in investments through federal and private funding, and are on course to hit the G7’s target of $600 billion by 2027.Ease of doing business through memorandums of understanding, like that of the ports of Rotterdam and Antwerp with Namibian Port Authority, aim to increase trade and investment to support renewable energy and hydrogen infrastructure.PGI has aimed to empower women in sustainable sectors, promoting the Women in the Sustainable Economy Initiative (WISE) to advance women in the green and blue workforces of the future.PGI’s key strategic initiative, the Lobito Economic Corridor, focuses on critical transport infrastructure across Angola, Zambia and the Democratic Republic of the Congo, with the first transcontinental open-access rail network across the continent. Source: Ministry of International Trade and Industry, Malaysia.Impact Financial Regulatory Operational Strategic Over MYR 25 billion (Malaysian ringgit) has been allocated to the semiconductor sector through the NSS over the next decade. The strategy has attracted MYR 33 billion in FDI thus far, boosting GDP and creating high-value jobs.The strategy supports business growth with fiscal incentives, streamlined regulations and advanced facilities. Semiconductor firms can now deduct up to 60% of machinery and upgrade costs over five years, while incentivized organizations must fund training programmes to help upskill 60,000 engineers under NSS goals.The strategy bolsters domestic expertise in semiconductor design, which attracts investors and local enterprises. It plans to train 60,000 engineers, establish 10 design firms and a dedicated research and development (R&D) hub, and spur the creation of over 100 high-revenue semiconductor- related businesses.The NSS aims to position Malaysia as a global leader in semiconductor production, covering integrated circuit design, wafer fabrication, outsourced semiconductor assembly and testing, advanced packaging, and high-technology manufacturing. Industrial parks like Batu Kawan and Kerian Integrated Green Industrial Parks will play vital roles in R&D, training and deployment. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 11