KUALA LUMPUR – Former finance minister II Datuk Seri Johari Abdul Ghani has called for clearer economic directions to attract and sustain foreign direct investments (FDI) into Malaysia.
He urged the government to speed up the formulation of the 12th Malaysia Plan (12MP) to provide strategic medium to long-term blueprints and, hence, attracting more foreign investments into the country.
“The 11MP (2016-2020) is over. We have come out with the budget (for 2021) but have yet to formulate the 12MP.
“By right, we must formulate the 12MP. We should strategise for the next five years or more so potential investors can look at our document and know our strategies. Only then will they be interested to invest,” he said at the annual Umno general assembly at the World Trade Centre here today.
Johari noted that Malaysia has recorded a decline in FDI for three consecutive years, saying that investors are instead choosing neighbouring countries as investment destinations, thus stunting the growth of the nation’s economy and job opportunities.
In 2017, Malaysia attracted FDI inflow of US$13.5 billion (RM55.9 billion), higher than Indonesia (US$4.5 billion), Vietnam (US$12.6 billion) and the Philippines (US$8.7 billion).
Based on a United Nations Conference on Trade and Development report, Malaysia’s FDI fell to US$2.5 billion last year, while Indonesia’s rose to US$18 billion.
Johari also questioned the stance that the country will be “more selective” in attracting quality foreign investments.
“What happened with Indonesia? It recorded FDI of US$18 billion in 2020 compared with US$4.5 billion in 2017. While our neighbouring country faces a worse Covid-19 situation, its FDI had risen to US$18 billion.”
He said Malaysia must always encourage entrepreneurship by facilitating incentives to all layers of society. – Bernama, March 28, 2021
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