U.S. FIRMS UPBEAT ON MALAYSIA PROSPECTS
Digital economy agenda set to lift economy to new heights
RUPA DAMODARAN
KUALA LUMPUR rupabanerji@nst.com.my
AMERICAN corporates are upbeat about their future investments in Malaysia, especially with the digital economy agenda, which they believe will lift the Malaysian economy to new heights.
The current investment environment looked good, backed by a solid economy, said the USAsean Business Council.
“The digital economy will accelerate the growth of investments further as investors target an energetic and stable Asia, compared with the uncertainties elsewhere,” said the council’s regional managing director Michael Michalak, who led a 21member delegation of United States companies on a three-day annual business mission from Monday.
“From our discussion, we found many of the policies put forward were excellent and inclusive. They are keen to work with our companies on areas like the spectrum for 5G and emergency communication,” he said, commenting on the meeting with the Communications and Multimedia Ministry officials.
Malaysia announced its digital economy as a new source of growth and the capacity to generate RM286 billion in trade by 2025.
Last week, Malaysia announced the launch of the Digital Free Trade Zone.
“Investors are high on Malaysia, especially when it embraced digital technology and now regulatory regime.”
Internet companies are also drawn to countries like Malaysia, where there is free data flow and reasonable regulations pertaining to privacy and security. Michalak disclosed two American companies were currently scouting around Asia for the expansion of their operations and Malaysia was one of the greenfield locations identified.
Malaysia is ranked in the top three US investment destinations for the Asean region and estimated US$267 billion (RM1.18 trillion) is parked in terms of investment stock, making it larger than US investments in China, Japan and South Korea put together.
“Malaysia has a lot going (for it) and its attractiveness is changing for the better due to the Internet policies.”
Even if the US government now
Investors are high on Malaysia, especially when it embraced digital technology and now regulatory regime.”
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“In fact, we are targeting to increase 400,000 more NJOI customers is not for the Trans-Pacific Partnership, Michalak argued that the US corporates still supported trade liberalisation be it in the Regional Comprehensive Economic Partnership or World Trade Organisation.
“Corporates say in terms of choice of foreign investments, they look at the economic conditions. In the case of Coca Cola, it wanted to be close to its customers than contend with Atlanta.”
Coca Cola Malaysia, which has invested RM1 billion since 2010, announced a fortnight ago that it would invest another RM500 million to expand the capacity of its plant at Bandar Enstek near Nilai.
Location competitiveness remained a key for investors, he said.
“Although the US investment this year,” she said.
For this year, Astro is targeting an average revenue per user of RM103, from the current RM101.40, which will be achieved environment may improve and attract US companies to invest, but if Malaysia continues to provide tax advantages and streamline the regulatory system, the investors will choose the best place, no matter what the flag is.”
For some American companies, which have interests in the region like the automobile industry in Thailand, they are not dependent on the US investment environment or the tax reforms, which are expected to take a longer time to implement.
One of the areas that investors were looking at was the financial sector liberalisation, particularly in the insurance sector, he added.
The investors were concerned about the foreign exchange measures announced by Bank Negara Malaysia in December last year. through the introduction of new products and innovating content, as well as growth in subscriber numbers. Lidiana Rosli