GEORGE TOWN – Malaysia should leverage on its status as a founding member of Organisation of Islamic Cooperation (OIC) to attract Middle Eastern investors to Penang, said the tourism and creative economy exco Yeoh Soon Hin.
He said that foreign investors in Penang are from the American and European continents, as well as Asian countries such as China, Japan and South Korea.
“However, it should be noted that the Middle East and North African (Mena) market has an arsenal of capitalists, all of which are foreign investors packed with enormous potential,” he said in a statement today.
Yeoh said Malaysia has the upper hand in this regard, mainly due to the nation’s large Muslim population.
Southeast Asian countries with a strong Muslim presence will be favoured by Middle Eastern companies that are scouting for investment opportunities because many Western countries are wary of and have imposed strict policies towards Muslim counterparts.
“In fact, Indonesia has eyed this golden opportunity to attract Middle Eastern investments, in which its capital relocation plan that entails liberal and open policies has drawn in promising investments in industrial economy and construction,” he added.
Earlier last week, Yeoh was part of the Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak’s delegation to Expo Dubai 2020, which opened a broad scope of discussion with local businesses from the United Arab Emirates.
While speaking about the exposition, Yeoh highlighted that he had promoted Penang’s vibrant manufacturing hub to the officials, and in return learned that many Middle Eastern companies are considering investment and expansion in the areas of agriculture, industry, education, healthcare, logistics, multimedia, tourism, and telecommunication.
Data from The Sovereign Wealth Fund Institute shows that the Middle Eastern region is a major player globally by occupying four seats in the Top 10 Largest Sovereign Wealth Fund Rankings by Total Assets.
In the list, Kuwait Investment Authority is ranked highest amongst the Middle Eastern counterparts, and in the top three internationally with a whopping US$737.9 billion (RM3,091.9 trillion) in total assets; Abu Dhabi Investment Authority (number four with US$697.8 billion), Public Investment Fund (number eight with US$480 billion), Qatar Investment Authority (number 10 with US$366.7 billion), Investment Corporation of Dubai (number 11), Turkey Wealth Fund (number 12), and Mubadala Investment Company (number 13).
The Middle East sovereign investment funds mentioned above have significant assets and investments in finance, real estate, technology, telecommunications, media, natural resources, and consumer goods industries worldwide, all of which would yield handsome returns while benefiting the development of other countries.
On this note, Yeoh commented that Malaysia and Penang must recognise and explore the Middle East’s robust investment capability.
Yeoh added that Penang is armed with an airport and seaport to facilitate imports and exports, making the state an ideal logistical hub backed by strong infrastructure and a vibrant manufacturing scene, which he believes will be a pulling factor for Middle Eastern investors. – The Vibes, January 28, 2022
