Malaysia slips four places to 6th in Asean FDI ranking??? YAU MOU GAU...CHOR!!!
Malaysia slipped four notches to rank only sixth, out of the 10 Southeast Asia countries, in attracting foreign direct investments (FDIs) last year from second a few years earlier due to the loss of its competitive edge.
The United Nations Conference on Trade and Development's World Investment Report (WIR) 2006 revealed that Malaysia’s FDI inflow contracted by 14.21% to only US$3.97 billion (RM14.63 billion) last year from US$4.62 billion (RM17.02 billion) in 2004.
This was a sharp contrast to the overall FDI inflows into Southeast Asia, which jumped 44.7% to US$37.14 billion (RM136.83 billion) last year, mainly driven by mergers and acquisition activities.
The Prime Minister’s department’s National Economic Action Council (NEAC) working group member Datuk Zainal Aznam Yusof said significantly, Malaysia's FDI fell behind Indonesia's for the first time.
Last year, Indonesia's FDI surged nearly fivefold to US$5.26 billion (RM19.38 billion) from US$1.89 billion (RM6.96 billion) in 2004.
Zainal said Malaysia had lost its competitive edge and would look to the third industrial master plan (IMP3) for a solution.
“It is no secret that over the last 10 years, we have been losing out and the WIR report documents that,” he told reporters after presenting the WIR 2006 report in Kuala Lumpur yesterday.
Zainal was earlier presented with a copy of WIR 2006 by United Nations Development Programme resident representative, Dr Richard Leete, who gave the presentation of the report.
Zainal said the loss in competitiveness were due to Malaysia’s labour sector facing a shortage of human capital and losing out to other countries with cheaper manpower.
He said Malaysia must further liberalise its services and manufacturing sectors to make the country more attractive to investors.
“Services are heavily protected in many areas; there is a lot of room to liberalise. The IMP3 details the various ways that you can do this and make it more competitive,” he said.
Asked if the current government administration's policies were one of the factors causing the decline in FDIs, he said: “My personal view is that the change in the administration is for the better in attracting FDIs, more transparency, and different way of governance would enhance the economy to grow.”
“But if you look at the numbers from 2004 to 2005 you would get the wrong conclusion, I think,” Zainal said. He also denied that the 30% Bumiputera equity rule was a big issue deterring foreign investors.
The United Nations Conference on Trade and Development's World Investment Report (WIR) 2006 revealed that Malaysia’s FDI inflow contracted by 14.21% to only US$3.97 billion (RM14.63 billion) last year from US$4.62 billion (RM17.02 billion) in 2004.
This was a sharp contrast to the overall FDI inflows into Southeast Asia, which jumped 44.7% to US$37.14 billion (RM136.83 billion) last year, mainly driven by mergers and acquisition activities.
The Prime Minister’s department’s National Economic Action Council (NEAC) working group member Datuk Zainal Aznam Yusof said significantly, Malaysia's FDI fell behind Indonesia's for the first time.
Last year, Indonesia's FDI surged nearly fivefold to US$5.26 billion (RM19.38 billion) from US$1.89 billion (RM6.96 billion) in 2004.
Zainal said Malaysia had lost its competitive edge and would look to the third industrial master plan (IMP3) for a solution.
“It is no secret that over the last 10 years, we have been losing out and the WIR report documents that,” he told reporters after presenting the WIR 2006 report in Kuala Lumpur yesterday.
Zainal was earlier presented with a copy of WIR 2006 by United Nations Development Programme resident representative, Dr Richard Leete, who gave the presentation of the report.
Zainal said the loss in competitiveness were due to Malaysia’s labour sector facing a shortage of human capital and losing out to other countries with cheaper manpower.
He said Malaysia must further liberalise its services and manufacturing sectors to make the country more attractive to investors.
“Services are heavily protected in many areas; there is a lot of room to liberalise. The IMP3 details the various ways that you can do this and make it more competitive,” he said.
Asked if the current government administration's policies were one of the factors causing the decline in FDIs, he said: “My personal view is that the change in the administration is for the better in attracting FDIs, more transparency, and different way of governance would enhance the economy to grow.”
“But if you look at the numbers from 2004 to 2005 you would get the wrong conclusion, I think,” Zainal said. He also denied that the 30% Bumiputera equity rule was a big issue deterring foreign investors.
posted by SEE FU at 7:42 AM
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