MALAYSIA IS STILL FAVOURED BY INVESTORS
Country ranks second in Southeast Asia for opportunities to establish or expand op
MUCH has been said about Malaysia losing out to its peers such as Thailand, Vietnam and Indonesia in attracting foreign investments.
But a survey by Standard Chartered Bank (StanChart) has revealed otherwise.
StanChart said European and US companies ranked Malaysia as the second most favourable Southeast Asian country for opportunities to establish or expand their sourcing, selling or operations over the next six to 12 months.
Conducted in November and December last year, the study involved more than 1,000 chief financial officers (CFOs) and senior treasury professionals of companies with a turnover exceeding US$500 million in the US, the UK, Germany and France. Each country was equally represented with 25 per cent of the respondents.
StanChart said the CFOs and treasurers had indicated that despite the uncertainty caused by the Covid-19 pandemic and its associated
economic repercussions, overseas markets remained key to growth.
Economists said the findings could boost Malaysia’s foreign direct investment (FDI) this year from last year’s RM64.2 billion.
Putra Business School associate professor Dr Ahmed Razman Abdul Latiff said the government and its agencies must not be complacent.
“The study focused on the US and European countries, and the government needs to ensure that other important regions such as Asia Pacific will also be encouraged to bring in FDI.”
He said there is a need to strategise in attracting the right kind of investments that will be supported by government initiatives.
“In addition, it is important to ensure that future FDI emphasises knowledge and technology transfer as well as higher reinvestment of earnings in the country,” he told the New Straits Times yesterday.
The study also revealed incremental emphasis on investing in digital technology, unlocking trapped cash and increased focus on environmental, social and governance issues in relation to trade and supply chains.
“With regulations noted as the No. 1 concern among respondents looking to expand overseas, it could suggest an opportunity for Malaysia to potentially increase foreign investment through greater awareness of the ease of doing business locally,”
StanChart said.
It said the newly launched Malaysia Digital Economy Blueprint is poised to accelerate the country’s ambition to become a technologically advanced economy.
This will bolster the support for high-profile foreign investment projects, including Fortune 500 companies in the manufacturing and services sector.
It said these would account for a combined potential investment value of RM81.9 billion.
Meanwhile, StanChart Malaysia managing director and chief executive officer Abrar A. Anwar said it is deeply committed to facilitating the economic growth of the nation and will continue to invest in technology.