GEORGE TOWN – Investors may seek alternative locations to generate profits from their investments if Malaysia fails to reverse its gloomy economic outlook by next year, said international auditing firm KPMG Malaysia.
Its northern branch head, Datuk Ooi Kok Seng, said the global Covid-19 pandemic has served as a buffer that prevents the political issues in the country from becoming a major negative point to both foreign and domestic investors.
“Investors usually take up to two years before deciding on the best country to invest in. This includes site visits and internal findings on the viability of the destinations,” he told The Vibes recently.
“At present, our struggles will probably be around for 18 months, but our main concern is that they persist into next year. The faster the country gets back to normality, the better it is (for the investors’ market).”
He said at present, foreign investors may be limited from traveling to Malaysia to find suitable locations for investment, forcing them to adopt a wait-and-see approach.
“Within the short- to mid-term, the country should be able to a degree mitigate the ill effects of the pandemic, political instability and sluggish economy.
“However, in the long-term, it is a genuine cause for concern. Our reputation might take a beating.”
Despite this, Ooi reiterated that the outlook is not totally gloomy – despite the struggle for a stable political front and progressive economy, while containing Covid-19.
The global electrical and electronics market has grown by 20% this year compared with the same period last year, despite the ongoing pandemic, he added.
“As the global economy comes to embrace digitalisation and advent of the tech-driven information age, there will be an increasing demand for electronic components – of which Penang is a major player in the global supply chain.
“This, too, can compensate for the losses in other areas,” he said, adding that while traditional sectors such as tourism are losing jobs, other sectors continue to increase their demand for skilled workers. – The Vibes, August 23, 2021
