Dr M: Don’t expect much FDI this time
Monday August 2, 2010
KUALA LUMPUR: Malaysia cannot expect much foreign direct investment (FDI) unlike before, said former Prime Minister Tun Dr Mahathir Mohamad.
He said this was because currently, many countries and foreign businessmen did not have the funds to invest in other countries,
Dr Mahathir said at the same time, these countries and foreign businessmen also wanted to invest in their own countries due to the high level of unemployment there.
“So, we cannot expect much foreign direct investment today,” he told reporters when asked to comment on the World Investment Report 2010 by the United Nations Conference on Trade and Develop-ment.
According to the report, the FDI inflow to Malaysia had dropped 81% from RM23.47bil (US$7.381bil) in 2008, to RM4.43bil (US$1.381bil) last year, trailing behind countries like the Philippines, Vietnam, Thailand, Indonesia and Singapore.
In May, International Trade and Industry Minister Datuk Mustapa Mohamed had announ-ced that investments in the country for the first quarter of this year amounted to only RM5.2bil, mainly from Singapore, Taiwan and Japan.
Dr Mahathir was speaking to reporters after marking the fourth anniversary celebrations of his bakery The Loaf at its fourth outlet at the IOI Boulevard in Puchong near here yesterday.
Earlier in his speech, Dr Mahathir, who is also chairman of The Loaf, said the company intended to set up franchises at the right time and would be opening its fifth outlet in Bangsar by the end of the year. — Bernama
Showing posts with label FDI. Show all posts
Showing posts with label FDI. Show all posts
Monday, August 2, 2010
Wednesday, July 28, 2010
More measures needed to attract FDI
More measures needed to attract FDI
TEE LIN SAY
Wednesday July 28, 2010
KUALA LUMPUR: Foreign direct investment (FDI) into Malaysia for the first quarter of 2010 amounted to RM5.06bil, nearly the same amount captured for the whole of 2009, said the Ministry of International Trade and Industry in a statement recently.
It is be worth noting that the United Nations Conference on Trade and Development (UNCTAD) - in its World Investment Report 2010 - last week said that Malaysia’s FDI had fallen by 81% in 2009, trailing behind the Philippines, Vietnam, Thailand, Indonesia and Singapore.
This is in comparison to FDI inflow into South-East Asia in 1980, when more than 35% came to Malaysia. Vietnam had less than 1% of the total. But this changed in 2008, with Malaysia and Vietnam attracting almost same amount (US$8bil).
Over the last three decades some structural weaknesses have appeared. The main culprit has been dwindling private sector participation, which fell to below 10% of GDP last year, compared to a high of 30% of GDP in the 1980s plus an outflow of capital amounting to RM117bil for 2008 and RM54bil for 1H 2009.
AmResearch Sdn Bhd senior economist Manokaran Mottain said that changes can be seen in the Government’s approach towards FDI - under Prime Minister Datuk Seri Najib Tun Razak’s administration.
“Several key initiatives having been undertaken, including liberalization in key sectors of the economy, like 100% ownership in 27 sub-sectors of services sector; the Economic and Government Transformation Programmes; New Economic Model and 10th Malaysia Plan to spur the economy,” he said.
Manokaran said that in order to achieve average growth of 6% as targeted in the 10th Malaysia Plan for Vision 2020, and to attract more foreign investors, the Government will introduce public-private sector partnerships, as it re-defines its role in business.
For example, Government-Linked-Company’s (GLC) and the private sector are expected to joint venture to re-develop Government land into commercial and residential projects.
“If the Government needs to boost the rate of private investment growth to 12.8% over the 10MP period, we need more affirmative policy measures as follows,” “After achieving the 10th most competitive nation status this year, we expect the Government to further revamp corporate tax policies, to further increase competitiveness with our neighbouring countries,” said Manokaran.
He added that Malaysia eeded a revamp in personal income taxes to promote incentives to work and relocation of talents/ entrepreneurial and technical skills to Malaysia.
Manokaran said that the Government can also consider other forms of incentives such as rebates, tax preferences to encourage relocation of businesses to Malaysia and provide a more competitive business environment, from manufacturing to financial Increase in job opportunities.
Other forms of incentives include further liberalising caps on foreign ownership, and providing grants and incentives to encourage Malaysians to undertake world-class research.
He added that Malaysia needs to review immigration policies to facilitate the entry of “best of brains” in fields of knowledge economy.
TEE LIN SAY
Wednesday July 28, 2010
KUALA LUMPUR: Foreign direct investment (FDI) into Malaysia for the first quarter of 2010 amounted to RM5.06bil, nearly the same amount captured for the whole of 2009, said the Ministry of International Trade and Industry in a statement recently.
It is be worth noting that the United Nations Conference on Trade and Development (UNCTAD) - in its World Investment Report 2010 - last week said that Malaysia’s FDI had fallen by 81% in 2009, trailing behind the Philippines, Vietnam, Thailand, Indonesia and Singapore.
This is in comparison to FDI inflow into South-East Asia in 1980, when more than 35% came to Malaysia. Vietnam had less than 1% of the total. But this changed in 2008, with Malaysia and Vietnam attracting almost same amount (US$8bil).
Over the last three decades some structural weaknesses have appeared. The main culprit has been dwindling private sector participation, which fell to below 10% of GDP last year, compared to a high of 30% of GDP in the 1980s plus an outflow of capital amounting to RM117bil for 2008 and RM54bil for 1H 2009.
AmResearch Sdn Bhd senior economist Manokaran Mottain said that changes can be seen in the Government’s approach towards FDI - under Prime Minister Datuk Seri Najib Tun Razak’s administration.
“Several key initiatives having been undertaken, including liberalization in key sectors of the economy, like 100% ownership in 27 sub-sectors of services sector; the Economic and Government Transformation Programmes; New Economic Model and 10th Malaysia Plan to spur the economy,” he said.
Manokaran said that in order to achieve average growth of 6% as targeted in the 10th Malaysia Plan for Vision 2020, and to attract more foreign investors, the Government will introduce public-private sector partnerships, as it re-defines its role in business.
For example, Government-Linked-Company’s (GLC) and the private sector are expected to joint venture to re-develop Government land into commercial and residential projects.
“If the Government needs to boost the rate of private investment growth to 12.8% over the 10MP period, we need more affirmative policy measures as follows,” “After achieving the 10th most competitive nation status this year, we expect the Government to further revamp corporate tax policies, to further increase competitiveness with our neighbouring countries,” said Manokaran.
He added that Malaysia eeded a revamp in personal income taxes to promote incentives to work and relocation of talents/ entrepreneurial and technical skills to Malaysia.
Manokaran said that the Government can also consider other forms of incentives such as rebates, tax preferences to encourage relocation of businesses to Malaysia and provide a more competitive business environment, from manufacturing to financial Increase in job opportunities.
Other forms of incentives include further liberalising caps on foreign ownership, and providing grants and incentives to encourage Malaysians to undertake world-class research.
He added that Malaysia needs to review immigration policies to facilitate the entry of “best of brains” in fields of knowledge economy.
Monday, July 26, 2010
Mahfuz: Najib should quit over FDI plunge
Mahfuz: Najib should quit over FDI plunge
Jul 26, 10 6:50pm
PAS has blamed Prime Minister Najib Abdul Razak's performance as finance minister over the drastic 81 percent drop in foreign direct investments (FDI) in 2009.
NONE Commenting on the United Nations Conference on Trade and Development (UNCTAD) report released on Friday, PAS vice-president Mahfuz Omar (left) said foreign investors are now avoiding Malaysia because of rampant graft and a questionable legal system.
"Foreign investors will invest elsewhere because they see a chronic bureaucracy, where they are forced to pay cabinet lobbyists, cabinet ministers' wives and their families," said Mahfuz in a statement.
He adds that foreign investors are also wary of the flawed legal system, citing the unresolved case of the VK Lingam video controversy, the BN takeover of Perak and the second sodomy trial of Anwar Ibrahim.
azlan"These examples gives the impression of 'law of the (jungle)' and not 'rule of law'," he said.
A CEO would have resigned
Mahfuz said that if Najib's role was to be compared to that of a chief executive officer, the premier would certainly have to resign.
"The prime minister is the CEO of a country and is responsible for bringing returns to the country... The 81 percent drop in FDI has stripped Najib of his qualifications to be premier and finance minister.
"Najib should step down gracefully to save 1Malaysia and his 'people first, performance now' slogan," he said.
Mahfuz also cites questionable management of government assets such as conglomerate Sime Darby Bhd, Federal Land Development Authority, and banking giant Maybank Bhd.
azlan"They (foreign investors) don't see the culture of accountability and responsibility," he said.
The UNCTAD report showed that Malaysia continued its downward trend in attracting FDI since 2007 and the drop in 2009 was massive compared to neighbouring countries such as the Philippines, Indonesia and Thailand.
Critics said the report had spawned red flags for the economy which needs immediate attention, while the premier and the Finance Ministry have yet to officially respond to the matter.
Jul 26, 10 6:50pm
PAS has blamed Prime Minister Najib Abdul Razak's performance as finance minister over the drastic 81 percent drop in foreign direct investments (FDI) in 2009.
NONE Commenting on the United Nations Conference on Trade and Development (UNCTAD) report released on Friday, PAS vice-president Mahfuz Omar (left) said foreign investors are now avoiding Malaysia because of rampant graft and a questionable legal system."Foreign investors will invest elsewhere because they see a chronic bureaucracy, where they are forced to pay cabinet lobbyists, cabinet ministers' wives and their families," said Mahfuz in a statement.
He adds that foreign investors are also wary of the flawed legal system, citing the unresolved case of the VK Lingam video controversy, the BN takeover of Perak and the second sodomy trial of Anwar Ibrahim.
azlan"These examples gives the impression of 'law of the (jungle)' and not 'rule of law'," he said.
A CEO would have resigned
Mahfuz said that if Najib's role was to be compared to that of a chief executive officer, the premier would certainly have to resign.
"The prime minister is the CEO of a country and is responsible for bringing returns to the country... The 81 percent drop in FDI has stripped Najib of his qualifications to be premier and finance minister.
"Najib should step down gracefully to save 1Malaysia and his 'people first, performance now' slogan," he said.
Mahfuz also cites questionable management of government assets such as conglomerate Sime Darby Bhd, Federal Land Development Authority, and banking giant Maybank Bhd.
azlan"They (foreign investors) don't see the culture of accountability and responsibility," he said.
The UNCTAD report showed that Malaysia continued its downward trend in attracting FDI since 2007 and the drop in 2009 was massive compared to neighbouring countries such as the Philippines, Indonesia and Thailand.
Critics said the report had spawned red flags for the economy which needs immediate attention, while the premier and the Finance Ministry have yet to officially respond to the matter.
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