M'sia still attractive to foreign investors

The Star (23/6/08): Malaysia remains competitive in pulling in foreign direct investments (FDI) with RM23.9bil already received in the first quarter of this year.

International Trade and Industries Minister Tan Sri Muhyiddin Yassin said although it appeared as if investors had shifted to countries like China, India, Vietnam and Thailand, Malaysia was still very competitive in pulling in FDI.

"For example, last year the investment received was RM59.9bil and in the first quarter of this year, we have hit RM23.9bil. We are projecting to do better than 2007,” he said.

Muhyiddin was responding to a supplementary question by Dr Dzulkefly Ahmad (PAS-Kuala Selangor), who said that the country was losing its competitiveness because the Government preferred a domestically driven national gross domestic product (GDP).

Muhyddin said the outflow of FDI last year amounted to RM307mil and that four companies had moved to Thailand, Vietnam and China.

"They shifted because of certain attractions such as cheaper labour in China but I can also prove that some companies which moved there had decided to come back here.

On another supplementary question by Dr Mohd Puad Zarkashi (BN-Batu Pahat), Muhyiddin said the Government had taken measures to compete with neighbouring countries.

“We do not have to announce openly our strategies and initiatives, including those which are deemed customised incentives,” he said.

He said a special committee chaired by the Deputy Prime Minister had been set up to look into cases considered as strategic investment projects which involve large investments but increase the investment rate of the country.

Muhyiddin: Malaysia still the destination of choice for FDIs

Bernama(23/6/08): Malaysia is the still the destination of choice for foreign direct investments (FDIs) despite competition from neighbouring countries.

Minister of International Trade and Industry, Tan Sri Muhyiddin Yassin, said currently the government has initiated measures to reduce the cost of doing business here.

He said last year Malaysia attracted RM59.9 billion in FDIs and for January-April this year, the amount has reached RM23.9 billion.

"We expect the FDIs this year to be higher than in 2007," he said in reply to a question by Dr Dzulkifli Ahmad (PAS-Kuala Selangor) at the Dewan Rakyat here, Monday.

On the FDI outflow, Muhyiddin said in 2007 it involved about RM307 million from four foreign companies which decided to shift their operations to Thailand, Vietnam and China.

"Among the factors they cited were the decline in demand for their products and to take advantage of the lower labour costs in the countries concerned," he said.

Nevertheless, he said, many companies who had migrated overseas had also decided to invest here when they compared the tangible and intangible costs which were lower here.

He said the Malaysian Industrial Development Authority has identified about 300 South Korean companies, which had invested in China, decided to change their minds and move them to Vietnam, Malaysia and other countries.

Miti incentives are for all states, says Muhyiddin

The Edge Daily (6/5/08): The Ministry of International Trade and Industry (Miti) has given an assurance that all its existing initiatives and new ones will continue to be channelled to the five non-Barisan Nasional-governed states.

Its minister Tan Sri Muhyiddin Yassin said the government encouraged the inflow of foreign direct investments (FDI) to all states.

“FDI is an important factor that contributes to the country’s development. The federal government will not discriminate against any state government.

“Hence the five states are encouraged to continue with their existing pro-business policies. They should continue the good track record that they have inherited in attracting FDI,” said Muhyddin in a reply to a question from Teresa Kok (Seputeh-DAP) in the Dewan Rakyat yesterday. Kok asked if the ministry would cooperate with the five states in their effort to attract FDI and also provide the necessary incentives.

Muhyiddin said he hoped the five states would not introduce new policies that are not proactive and against federal legislation.

Kok also said she had not been able to secure an appointment with the Malaysian Industrial Development Authority (Mida), to which Muhyiddin said he had directed the various agencies to give briefings to the states in an effort to increase FDI.

“We will continue to cooperate,” said Muhyiddin.

On Kelantan’s lack of FDI, he said that location and infrastructure were a problem. “The state should also take the initiative to go on foreign business trips. It should also have clearer policies in attracting investments,” Muhyiddin said.

Penang Chief Minister Lim Guan Eng, when met at the parliament lobby, welcomed the minister’s assurance but said that the federal government should provide the necessary infrastructure.

“One of the critical areas is gas. We have all the gas pipelines (in Penang), and yet there is no gas supply.

“We were told there was about RM6 billion of investment lost in the country because there was no gas supply. We are the largest gas exporter but we don’t have sufficient gas for own consumption,” said Lim, who is also MP for Bagan.

He said Penang would continue with its business-friendly policies and work with the federal government to boost investment.

“The federal government also realises that for any investment that comes to these states, they (federal) would be the biggest beneficiary as taxes are not paid to the state or local authorities but to federal (government).

“Whether foreign investments come to the BN state or the opposition state, it is in everyone’s interest. Let’s go for triple win solution. The investor wins, the state wins and the federal (government) wins. Once all three parties win, the people of Malaysia win,” said Lim.

Lim also said that a notable investment would be coming to Penang as a result of close cooperation with Mida and Miti. He, however, refused to name the investor or sector.

“Our policies have been very pro-investors but at the same time we must look into the infrastructure that we can provide. Supply of gas is one of the important inputs required in some industries. We have to discuss with Petronas,” said Muhyiddin in response to Lim’s complaint on gas supply.

Meanwhile, Nasharuddin Mat Isa (Bachok-PAS) refuted Muhyiddin’s statement on Kelantan.

“Trips have been made by our state government (Kelantan) to places like China to attract investments. The problem that we always had was the rules and regulations and restrictions from Miti that do not help to ease the way for the FDI to come straight to Kelantan,” he said, adding that location was not a problem.

He also said that the state government had asked for a port to be built in Kelantan to facilitate the flow of goods from Vietnam and southern China, but the request had been rejected.

However, Nasharuddin said he was now optimistic that the problem could be resolved with a new minister at the helm of Miti.