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| Mida expects 5% increase in FDI following FIC deregulation |
| Written by Melody Song | |||
| Wednesday, 01 July 2009 21:40 | |||
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Mida director-general Datuk Jalilah Baba said that there would be an influx of FDI, especially in the services sector due to the liberalisation policy. "The reorganisation of the FIC will facilitate Mida's efforts in promoting investments," said Jalilah after the launch of The Report: Malaysia 2009 published by Oxford Business Group (OBG) here yesterday. "The restriction on equity requirements was hampering our efforts in attracting more foreign investors," she said. Prime Minister Datuk Seri Najib Razak announced on Tuesday the repealing of a compulsory 30% bumiputera equity requirement for listed companies. Jalilah said that with the second round of liberalisation policies of the services sub-sector, Malaysian companies would have more opportunities for collaboration with foreign companies that would bring in their technology and contacts. "We are very pleased this has taken place," said Jalilah of the policy change, adding that there were no risks involved with the deregulation of the FIC guidelines. "It is just a perception by Malaysian companies that they will have fewer opportunities, but in actual fact, it will open up further opportunities for collaboration," she said. "We hope to have Malaysia seen as a core location for supply-chain management, on top of having businesses set up operations headquarters, regional distribution centres and regional offices," she said. "This is the new way forward in advertising Malaysia to offer more value to MNCs. From 2004 to April 2009, we have seen over 1,000 regional operational centres being set up here." Jalilah said from 2004 to date, some RM2.8 billion had been invested by MNCs operating in the country. On when the effect of the policy changes would be seen, she said it would occur in stages over the next 18 to 24 months in the wake of a global economic recovery. She also said that Mida was still in negotiations over the two multi-billion ringgit projects proposed by a European and a Southeast Asian company that it revealed earlier.
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