The Prime Minister today (10 December 2009) met prominent investors and entrepreneurs in Malaysia to discuss strategies to enhance domestic investments.
The objective of the meeting was to stimulate domestic investments and to further generate GDP growth by another 2 per cent and also to seek private sector views on ways to boost investments. For 2010, the Government had focus a GDP growth of between 2 to 3 percent.
Malaysia approved a total of RM 19.9 billion investments in the manufacturing sector from January to September 2009. From this total, FDI amounted to RM12.5 billion (62.8%) and domestic investment (DDI) amounted to RM7.4 (37.2%). In 2008, approved investments totaled RM62.8 billion, comprising of RM46.1 billion (73.4%) FDI and RM16.7 billion (26.6%) DDI.
The Government’s policy to make Malaysia an attractive place for foreign and domestic investors through various measures such as introducing the 1Malaysia concept, new economic model, liberalisation of the services sector, repealing the FIC guidelines, introduction of two Stimulus Packages amounting to RM 67 billion, introduction of KRA’s, prudent financial management and provision of customised incentives and improving the business environment. The Government will continue to undertake new initiatives under the Tenth Malaysia Plan.
In undertaking new initiatives, the Government welcomed any ideas from the investors/business community to facilitate and promote investment and with the private sector as the engine of growth.
The private sector proposed various measures to attract investments into the country, including:
· More coordinated approach among Ministries in addressing concerns from the private sector;
· More attractive capital market;
· Greater broadband penetration and usage of ICT;
· Push towards energy efficiency and green technology;
· More transparent and competitive privatisation;
· Assisting SMEs to move up the value-chain;
· Reducing crime rate and corruption;
· More touch-points for domestic investors;
· Privatised projects that have been approved to be implemented immediately;
· Privatisation to be done in a transparent manner;
· Good governance by both Government and private sector.
MIDA will be the touch-point (one stop center) for manufacturing and services sector while EPU will be the touch-point for privatisation projects.
The Government takes cognizance of the various issues and proposals highlighted by the private sector. With the increasing role of the private sector as the engine of growth of the Malaysian economy, the Government will continue to assist the business community in ensuring an attractive investment climate and take measures to address the issues and concerns raised. With the various measures undertaken by the Government, it is hoped that the private sector will continue to support to Government and enhance domestic investments.