Malaysia Aims For RM40 Billion Investment This Year, Says Mustapa

31 May 2010 , By Bernama

Malaysia is targeting at least RM40 billion worth of investments this year from the RM32.6 billion approved in 2009, says Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

"The focus this year is quality investments as the country is moving up the economy from middle-income to high-income model," he told reporters after the ministry's monthly gathering hosted by the Malaysian Investment Development Authority (MIDA).

Retaining the well-known acronym, MIDA, was previously known as Malaysian Industrial Development Authority. The new name symbolises the corporatisation efforts recently announced by the Prime Minister Datuk Seri Najib Tun Razak.

To ensure the target is achieved, Mustapa said his ministry is leading a trade mission to Japan from June 4-7, as the country remains the top investor in Malaysia.

"I will meet up with Japanese investors to encourage them to re-invest in Malaysia to expand their existing operations as well as attract new investments," he added.

Mustapa said the objective of the mission is also to ensure the interest of Japanese companies to invest in the country still remain strong.

He said Malaysia had received more than US$50 billion worth of investments from Japan in the past 30 years, with the bulk of them in the electrical and electronics, chemical, machinery and equipment sectors.

Mustapa said MIDA, as Malaysia's investment promotion arm, was encouraging private sector investments both domestic and foreign to meet the objective under the New Economic Model.

He said MIDA would set up an office in Singapore to assist investors from the republic following Najib's recent visit to strengthen cooperation between both countries on the political front, trade and investments.

Pointing out that Iskandar Malaysia in Johor has the potential to attract Singapore-based companies and investors, Mustapa said interest had picked up from Singaporean investors after Najib's visit.

"Johor is one natural choice for them (Singaporeans). Singapore is a high- income economy with successful multinational companies and home-grown investors. I believe this synergy will further consolidate," he said.

Mustapa also said the 10th Malaysia Plan would emphasise on greater efforts to attract more private investments as they would be a major engine to drive the country's economic growth.

"The key role of private investments in the 10th Malaysia Plan and private investments means MIDA," he said, adding that private investments are also crucial to the success of the New Economic Model.

On MIDA corporatisation, Mustapa said it was an important change to MIDA to make it more effective as an investment promotion agency and to continue playing a pivotal role in attracting investors to the country.

"The empowerment will also give MIDA the authority to negotiate directly with investors for targeted projects in the manufacturing and services sectors. This will enable us to approve incentives in real time and act swiftly to engage investors more effectively," he said.

A new logo and name of MIDA will be unveiled by the end of next month.

Mustapa said the National Committee on Investment has been set up following plans to corporatise MIDA to consider and approve applications for investments.

The committee was chaired by MIDA chairman and director-general and its members comprising Ministry of Finance, Ministry of International Trade and Industry, Bank Negara Malaysia and the Economic Planning Unit in the Prime Minister's Department.