Do err on the side of caution, think tank tells govt
PETALING JAYA: The federal government should be cautious when issuing policy statements, especially those involving massive projects to ensure continued investor confidence in the country, Centre for a Better Tomorrow (Cenbet) said.
The think tank president Datuk Simon Lim Seng Chai noted that of late, there had been an unsettling pattern in the way major government decisions were announced, the latest being the foreign ownership in the Forest City project in Johor.
“The earlier announcement to ban foreigners from owning property there even caught the Johor government by surprise.
“A day later, the Prime Minister’s Office clarified that foreigners are allowed to own property, subject to conditions. Such communication gaps can cause jitters among investors.
“It also raises questions about the federal government’s perceived encroachment into land matters, which rightfully should come under the state’s jurisdiction,” he said in a statement yesterday.
Lim said before this, the federal government was seen to be flip-flopping on the High Speed Rail and the East Coast Rail Link projects too.
“Initially, the government had announced that they would be shelved, only to clarify later that they were delayed or being reviewed.
“These do not augur well for investors’ confidence because these multi-billion-ringgit projects involve foreign governments and investors, any major developments would attract international media scrutiny,” he added.
He said that with a new government in Putrajaya, the country needed to allay investors’ concerns, “not add on to the uncertainty, especially when we need more foreign direct investments in an increasing- ly competitive economic landscape”.
“We fully support the new government in reviewing or cancelling any lopsided deals that are detrimental to the country.
“But in doing so, the government needs to be mindful of international investor sentiment and the longterm economic wellbeing of the country.
“Any announcements on major policy decisions ought to have gone through due processes, including seeking views from various stakeholders.
“This is part of good governance which we advocate,” he said, adding that this will also go a long way in enhancing investor confidence and make Malaysia a magnet for foreign capital.
MCA Youth Legal Bureau chair- man Ng Kian Nam said Tun Dr Mahathir Mohamad must clarify the legal basis for his statement that foreigners could not purchase property in Forest City.
He said Forest City should not be made the sole target of such a ruling as there were developments in other states in the country which were also built using foreign investments and which were also sold to foreigners.
“The announcement would give the international community a very negative impression that the Malaysian government is suspected of discriminating against or rejecting nationals from China or Singapore, ” he said, adding that the buying of property by a foreigner should not be confused with the issuance of permanent residency (PR) permits to foreigners.
These do not augur well for investors’ confidence because these multi-billion-ringgit projects involve foreign governments. Datuk Simon Lim Seng Chai