Malaysia

IBM centre closing ‘doesn’t matter’ to Perikatan, says Anwar

Tech giant’s departure part of worrying trend of multinational corps decreasing presence in M’sia

Updated 5 years ago · Published on 24 Mar 2021 11:48PM

IBM centre closing ‘doesn’t matter’ to Perikatan, says Anwar
IBM has announced that it will be closing its Cyberjaya Global Delivery Centre on May 31. – Inforakyat.net pic, March 24, 2021

KUALA LUMPUR – Opposition leader Datuk Seri Anwar Ibrahim has slammed the Perikatan Nasional government, accusing it of being nonchalant over the departure of major foreign direct investments (FDI) from the country.

The PKR president said the announcement yesterday by International Business Machines Corporation (IBM) that it will close its Cyberjaya Global Delivery Centre on May 31 adds to the worrying trend of marquee multinational corporations decreasing their presence in the country.

He said IBM’s announcement is similar to moves by others like Hyundai and Panasonic, which have withdrawn from Malaysia amid reports of other Asean countries “scoring big” investments from global Fortune 500 companies, including big technology brands.

“The PN government’s response to this trend seems to be that it doesn’t matter.”

The Port Dickson MP also chastised the senior minister overseeing foreign investment for saying that Malaysia has the luxury of being selective and is seeking high-value investors, while turning away low-value ones.

“As Malaysia continues to lose thousands of technology and manufacturing jobs to neighbouring Asean countries, we are deeply concerned for the livelihoods of Malaysian families who are affected by these lay-offs and question whether the PN government has the ability and concern to address this problem.”

Anwar said the minister’s “casual” attitude reflects the federal government’s “disconnect” from the reality Malaysia is facing.

He pointed to the United Nations Conference on Trade and Development report in January, which states that Malaysian FDI plunged by more than two-thirds to just US$2.5 billion (RM10.33 billion) last year, marking the worst drop in Southeast Asia.

“After one year in power, the PN government has failed to quell questions about its effectiveness as a weak government with no legislative mandate.

“The declaration of a state of emergency and prorogation of Parliament were interpreted by the private sector as a desperate attempt to cling to power.”

Anwar said the current emergency has eroded confidence in the PN coalition, its policy framework, as well as its commitment to good governance and the rule of law.

“Decisions made by the PN government show its preference for closed-door, backroom deal-making, which is antithetical to attracting investment and building confidence in our economy.

“The unorthodox manner in which it plans to roll out the 5G spectrum through a government-owned Special Purpose Vehicle is case in point.”

Moreover, he said, the RM15 billion project, which is part of the government’s national digital strategy, “has been subject to zero scrutiny, zero industry consultation, and represents one of the only countries in the world to adopt such an approach”.

“With no clarity offered on the terms of the 5G deal, we wonder how many more investors will be looking elsewhere for safer shores.” – The Vibes, March 24, 2021

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