Mida Frankfurt optimistic of 2017 investment prospects

FRANKFURT: The Frankfurt of f ice of the Malaysian Investment Development Authority ( MIDA) is optimistic about its prospects in attracting foreign direct investment ( FDI) to Malaysia from the four countries under its jurisdiction this year.

Director, S Siva said the confidence stemmed from MIDA Frankfurt’s performance in 2016 which he described as a “fairly good year”.

Besides Germany, MIDA Frankfurt has jurisdiction over Belgium, Luxembourg and the Netherlands.

MIDA Frank fur t has surpassed the target parameters or key performance index for 2016 as set by its headquarters in Kuala Lumpur.

Mal ays i a dr ew tot a l investments worth RM3.884 billion in manufacturing and RM570 mi l l ion in services from Germany during the January-November 2016 period, according to MIDA figures.

“I’m sat isf ied with the progress made last year.

Netherlands has emerged as the largest single investing nat ion in Malaysia with investments worth RM3.031 billion in the first nine months of last year,” Siva told Bernama in an interview at his office here.

The total investment from the Netherlands amounted to RM977 million in 2015.

Dutch companie s ar e involved in various projects in Malaysia.

They include the Pengerang Terminal, Oryx Stainless, Press Metal Bintulu, Benchmark El e c t r on i c , Volvo Ca r Manufacturing, and Teleplan Technology.

Germany’s FDI inf low into Malaysia during the JanuarySeptember 2016 period was worth RM1.541 billion and RM1.161 billion for the whole of 2015.

Maj or inve s t ors f rom Germany include Osram Opto Semiconductors, Inf ineon Technologies, Sew Eurodrive, and HUBNER Malaysia.

MIDA Munich also played its part in attracting investments from Germany.

The FDI from Belgium amounted to RM585 million during the January- September 2016 period, whi le that of the small landlocked nation of Luxembourg was RM539 million.

Belgian companies that made their presence in Malaysia include X- FAB Sarawak, Melexis and GOI Chemicals, while the sole investor from Luxembourg was St Jude Medical Operations.

Siva sa id Lu f t h a n s a Technik was keen to set up a maintenance, repair and overhaul faci lity in Kuala Lumpur, while Volkswagen Group was relocating its AsiaPacific after- sales centre from Singapore to Malaysia, but he declined to give details of the big- ticket investment decisions.

“Many potential investors and corporate execut ives are attracted to Malaysia’s strategic location, coupled with the availability of raw material and access to the huge hinterland market of the Asean Economic Community,” he said.

MIDA Frankfurt also plans a host of investment-promotion activities in 2017, including a visit by International Trade and Industry Minister Datuk Seri Mustapa Mohamed to Hamburg in March this year.

Buoyed by the success of the inaugural Asean Investment Forum (AIF) here last year, Siva said MIDF Frankfurt planned to hold the second AIF this year with the participation of the investment- promotion offices of the Philippines, Thailand and Vietnam in Germany.

It will be held in partnership with the Singapore- based EU-Asean Business Council, the World Trade Institute, the Frankfurt Chamber of Commerce and Industry, and the German Business Council on Asia Pacific.

“I hope the AIF wi l l be institutionalised as a yearly event,” he said.

Siva said MIDA Frankfurt would also hold an investment seminar for German small and medium enterprises in collaboration with the German SME Association and several banks.

Other events in the pipeline include a job fair to connect German companies operating in Malaysia with potential candidates from the growing pool of Malaysian students studying engineering at German institutions of higher learning.

Some 900 Malaysian students are pursuing higher studies at various German technical universities and institutes.

MIDA Frankfurt also plans to hold a seminar on hightech industry in collaboration with the European School of Management and Technology, and Malaysia’s Ministry of Human Resources and K-Pintar, a Malaysia human resources company. — Bernama