Tag Archives: Foreign direct investments
The National Green Technology Policy was announced by YAB Datuk Seri Najib Tun Abdul Razak Prime Minister of Malaysia on 24 July 2009 encompasing economic, environment and social policies. Among the goals of the National Green Technology Policy are to increase the production of local Green Technology products and the expansion of SMEs and SMIs businesses exports of Green Technology to the global market.
Developed countries are now keen to engage with companies/organisations which are more environmentally responsible to its stakeholders. Malaysian industries are encouraged to adapt a green environment approach in their businesses, by moving towards low carbon technology.
Potential benefits for businesses from adoption of the green policy include:
• enhanced local industry’s competitiveness in the global market; and
• increased ability to attract foreign investors and growth of exports through enhanced consumer confidence.
Consumers have become increasingly conscious not... Read More
H.E. Kiat Sittheeamorn, President of the Thailand Trade Representative (TTR) led a 130-member delegation for a visit to Malaysia from 28-29 March 2010. Aimed to further strengthen the bilateral economic relations between the two countries, the visit also sought to explore potential business opportunities for both countries.
The visit reinforces the commitments made by leaders of both Malaysia and Thailand when Y.A.B. Dato’ Sri Mohd Najib Tun Razak visited his Thailand counterpart, H.E. Abhisit Vejjajiva last year to bring existing bilateral relation to a higher level. A series of activities were held in conjunction with the visit, including a Seminar on Malaysia -Thailand Trade and Investment Cooperation, bilateral meetings with Minister of International Trade and Industry, Minister of Plantation Industries and Commodities, as well as the signing of a Memorandum of Understanding between British Dispensary (L.P.) Co. Ltd. and CCM Co. Ltd. Malaysia.
During the bilateral... Read More
The 6th Invest Malaysia 2010 Conference co-hosted by MIDA and Bursa Malaysia was held on 30 and 31 March 2010 at the Shangri-La Hotel, Kuala Lumpur. Organised annually and this time, with MIDA’s participation, the event provided a more comprehensive coverage of Malaysia’s investment environment with the inclusion of the manufacturing and services sectors.
With the theme “Powering Global Excellence”, Invest Malaysia 2010 provided the latest updates in Government policies that benefit businesses and investors, including:
the implementation of the Government Transformation Programme;
how Malaysia plans to attract private investments towards achieving the goal of a high income economy; and
growth areas for further development such as the services sector, aerospace and renewable energy.
The highlight of the event was the keynote address by YAB Dato’ Sri Mohd Najib Tun Abdul Razak, the Prime Minister of Malaysia who announced the first part of the New Economic Model... Read More
The other company, S.E.H (Shah Alam) Sdn. Bhd., a Japanese company with local participation, manufactures silicon polished wafers – one of the only four major producers of the product in the world. Since its inception in 1973, the company has invested RM2.8 billion in this business.
Going down to the ground to get first-hand feedback is imperative in the formulation of policies and creation of conducive environment for industries to expand. The issue of natural gas supply, foreign labour policy and shortage of talents in the middle management level were some of the concerns highlighted during my visit. It is my priority now to review the current policies pertaining to investment to ensure Malaysia remains on investors’ radar.
I led a delegation to Malaysian Steel Works (KL) Berhad, MASTEEL, in Bukit Raja, Klang on 14 April 2010. Also in the delegation to the steel plant was the Secretary General of MITI, Y.Bhg.Tan Sri Abdul Rahman Mamat. On hand to receive us at the factory, was the Managing Director cum Chief Executive officer of MASTEEL, Y.Bhg. Dato’ Seri Tai Hean Leng.
The company which produces billets and steel bars at an annual capacity of 450,000mt, exports its products to ASEAN, Bangladesh and Australia. Currently occupying 20 acres out of 200 acres of land acquired from Perbadanan Kemajuan Negeri Selangor (PKNS), MASTEEL is planning to diversify its production and invest RM300 million in wire rod and wire mesh manufacturing.
While exchanging views on the outlook of the iron and steel industry, I was delighted to note that the conducive domestic business environment has encouraged the company to expand its operations domestically.
Well done, MASTEEL !
Tags: business... Read More
“Kudos to all of you for rightfully choosing Malaysia as your preferred investment destination!”
Having said that, we would like to highlight a few key points on why Malaysia remains an ideal destination for Foreign Direct Investment(FDI).
Among the things that have helped put Malaysia on the international investors radar includes:
- World-class physical infrastructure
- Strong base of highly educated English-speaking workers
- Conducive business and policy environment – the “Soft Infrastructure”
- Strong legal system that safeguards business transactions while promoting corporate governance
- Setting up of a high-powered public-private sector taskforce, PEMUDAH, to address bureaucracy in business-government dealings
- Rapid advancement in Information Technology
- Adoption of global best practices in business
After all the hard work, it is heartening to note that Malaysia has made it to thetop 10 most competitive nations list in a recent report by the acclaimed... Read More
MITI through its agency, MIDA, has successfully drawn potential investments worth more than RM 10 billion in Q1 of 2010.
MIDA’s investment missions have succeeded in procuring and negotiating for investments from countries across continents and new investments are currently in the process of negotiation. Major areas of interest are in the:
MIDA and US and China-based solar specialist companies negotiate for potential investments valued at an estimated RM 5 billion.
Manufacturing & Engineering Support (MES) Industry
Potential investments are targeted for the oil well completion equipments and umbillicals (diversification projects).
Interest to invest in projects on MRO composite repair, MRO for aircraft components, seats for aerospace industry and aircraft machine parts.
The strong interest is attributed to MIDA’s:
- new strategies for investment projects
- on-going Specific Project Missions (SPM) overseas
- current corporatisation...
The recent UNCTAD report showed that world FDI flows in 2009 fell by 37% affecting many countries, including Malaysia. Having seen the early signs of the decline, the government instituted wide-ranging reforms as early as April 2009.
“At the time that the global financial crisis was eroding investor confidence worldwide, the government recognized the need to transform the Malaysian economy to increase its attractiveness,” said YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry.
“Whilst acknowledging the dampening FDI inflows into Malaysia, it must be highlighted that Malaysia was also named in the same report as one of the top 15 host countries for FDI for 2010-12 by a survey of transnational corporations,” Mustapa said.
The government has introduced several key initiatives, such as economic liberalisation, the Government Transformation Programme, the New Economic Model, and the 10 th Malaysia Plan to spur the economy.
These efforts will... Read More
What is the World Investment Report (WIR)?
The World Investment Report is an annual report published by the United Nations Conference on Trade and Development (UNCTAD), since 1991.
The UNCTAD WIR 2010 was released on 22 July with the theme “Investing in a Low Carbon Economy”. The Report discusses global and regional tren ds in FDI, recent policy developments and opportunities and threats in developing countries in the transition to a low carbon economy.
What are the reasons for the drop in the Foreign Direct Investments (FDIs) in Malaysia in 2009?
The decline in FDI inflows into Malaysia to US$1.38 billion in 2009 is mainly due to:
the global economic crisis which started in 2008 and continued in 2009, causing global FDI to decline by 37% as investors worldwide were more careful in making investment decisions involving large funds;
Malaysia is in a transition from capital intensive to knowledge-based industry;
Rising competition for FDI, from both new emerging market... Read More
FTAs create a conducive environment for investments by providing protection to investment and enhancing Malaysia’s standing as an attractive investment destination. This will strengthen investor confidence and translate into potential employment opportunities and provide more choices at competitive prices for the consumer.
Contrary to arguments put forth by some critics, FTAs prompt local companies to work harder and become more efficient to stay competitive. The concessions accorded under FTAs are normally granted in stages over a period of time; long enough for the domestic producers to adapt their production processes to meet the increased competition in the domestic market.
Learn more about FTAs by reading “FTAs – Creating An Environment For Fair Trade ”. Also featured is the Malaysia-New Zealand FTA which helped increase the confidence of a New Zealand based company to invest in Malaysia and how the Malaysia-Japan Comprehensive Economic Partnership Agreement... Read More