IPOH, Jan 28 (Bernama) -- The government will offer several incentives to local companies to encourage them to invest domestically as part of efforts to balance the rate of Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) in the country, said Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir.

He said the government was aiming for a ratio of 50:50 in FDI and DDI compared with the present 70:30.

"We will encourage them to invest in their own country...we will offer them several incentives and space to see what they have here," he told reporters after officiating the Perak level "Hari Bersama Industri dan Usahawan MITI" here Thursday.

Mukhriz, who did not disclose what the potential incentives would be, said local companies were keen to invest overseas due to many factors among them being the easily available supply of raw materials.

He said the government would also at the same time increase efforts to promote Malaysia to foreign investors as the destination for high technology investment with high value addition.

Investments in some areas that had come into Malaysia in the past have now gone into neighbouring countries like Indonesia and Vietnam, especially those that are labour-intensive.

As part of measures, the government is focusing on capital oriented investments rather than assembly line or labour oriented investments, he said.

-- BERNAMA