RM11.8b capital outflow since PH came to power

> Figure is small and nothing to worry about, says Ong

KUALA LUMPUR: Malaysia has lost about RM11.8 billion in foreign capital outflow since Pakatan Harapan (PH) took over as the federal government.

Deputy International Trade and Industry Minister Ong Kian Ming ( pix) said a further RM16.4 million was lost through the withdrawal of three foreign direct investment projects from the country.

In making this revelation, the Bangi MP, however, said the figure was nothing to be worried about as it only makes up a small amount of the overall Kuala Lumpur Stock Exchange (KLSE).

“In terms of capital outflow, on the aspect of equity, we have lost about RM11.8 billion in foreign funds from the equity market from May up to July 14 this year.

“But this figure, in terms of market capitalisation, is not that huge. It only makes up 0.7% of the RM1.8 trillion of the KLSE market capitalisation.

“The market share in general for foreign investors remains stable with RM418 billion of the overall market value,” he said in the Dewan Rakyat yesterday.

Ong was responding to a question by Datuk Seri Hamzah Zainudin (BN-Larut) on the amount of foreign investments that have been pulled out of the country since May.

On the three investments withdrawn from Malaysia worth RM16.4 million, Ong said all the three companies are “small scale companies” involved in the manufacturing sector.

“These companies have either been shut down or their operations moved elsewhere, and they are all small-scale based on their investment value,” he said.

Ong said among the factors that led to the withdrawal of the companies’ investment include the global market uncertainty and economic downturn in recent years.

“Two other factors are Malaysia’s move to a digital era and Industry 4.0 causing some investors to fail to adapt, and the country’s move to only focus on investments of high quality and technology.

“However, despite facing an uncertain global economy, the government continues its efforts to attract investors, especially high quality ones,” he said.