KUALA LUMPUR – Progress made by Malaysia’s new government in critical areas of economic and political reform may signal a shift in the country’s economic fortunes, an international magazine for corporate leaders, bankers and investors has reported.
Global Finance, a monthly publication with headquarters in New York, reported that the administration of Prime Minister Datuk Seri Anwar Ibrahim is sending a clear signal to investors looking away from China.
According to the publication, with Singapore recording new heights in cost of living, Malaysians also see a chance of building a new regional centre on their side of the causeway.
It reported Cassandra Thomazios, a Kuala Lumpur-based partner who heads the corporate and investment team at MahWengKwai & Associates, as commenting that the government has provided abundant tax and other initiatives to attract foreign direct investment (FDI).
“For the past 12 months, we have seen significant inward investment activity in three main sectors: renewable energy, manufacturing and technology,” she was quoted as saying
“Right now, there is a deliberate policy to encourage foreign investors to set up regional hubs here,” she added.
“We see early signs of increased FDI, and expect things will get better as we see greater political stability over 2023.”
Thomazios pointed out as an example that Malaysian property companies are providing land and infrastructure and outsourcing solar investment to Chinese companies.
“We are also seeing Malaysian coal plants retrofitting to other natural feedstock using imported technology,” she was quoted as saying.
Global Finance’s reports are meant to help entities chart the course of global business and finance. It provides a valuable source of data on 192 countries and offers analysis, articles and awards that are the heritage of over 30 years of experience in international financial markets.
In a recent statement, the Prime Minister’s Office (PMO) had noted the stand of the Fiscal Policy Committee (FPC), which recently met for for the first time this year, that the revised Budget 2023, expected to be tabled this month, will include measures to encourage investments in private sectors and reformation in public sectors.
According to banker Thean L. Soo, managing director and head of relationship management (South Asia Pacific) for Germany's HypoVereinsbank, platforms for inbound investments are in place, with highly structured processes, in Malaysia.
“After four prime ministers over five turbulent years, the investment climate in Malaysia is improving; and the new government should help,” Global Finance reported him as saying.
He noted that although there was a hiatus under the former administration of Tun Dr Mahathir Mohamad, when he was prime minister, and his successors, the investment scene will pick up again.
“Anybody who wants to invest will get support and guidance from the Ministry of International Trade and Industry under the finance ministry,” Soo was quoted as saying. – The Vibes, February 10, 2023
