Over 40 foreign companies ceased operations in Malaysia

By P PREM KUMAR & D DANYAKUMARI / Pic By AFIF ABD HALIM

However, Mustapa says Malaysia has continued to receive high-value foreign investments

Some 40 foreign companies have ceased operations in Malaysia and shifted to other countries since 2013.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the companies that have moved out of Malaysia are mainly labour-intensive firms.

In a parliamentary written reply, Mustapa said the drop in sales and demand, as well as the weak market environment is among the factors for companies to transfer their operations elsewhere.

Other push factors include the emergence of new innovations that have replaced exist- ing technologies and products, as well as the rise in manufacturing cost.

“Apart from that, limited raw materials supply, take-overs by other companies, as well as business restructuring are also among the major factors,” he said, responding to a query by Bukit Bintang MP Fong Kui Lun.

Fong had asked the government to state foreign investments inflow in the last four years, as well as companies which have ceased operations locally.

Mustapa said even though 40 companies have left, Malaysia has continued to receive high-value foreign investments — which are in line with the government’s aim in providing high-paying jobs for Malaysians.

Some of the prominent foreign investors include Lotte Chemical Titan (M) Sdn Bhd, Biocon Sdn Bhd, Robert Bosch (M) Sdn Bhd and B Braun Medical Industries Sdn Bhd.

Mustapa stated that between 2013 and 2016, some 1,598 foreign investments in the manufacturing sector were approved, with a total value of RM119.5 billion.

“From the total, 705 projects were new projects worth RM64.3 billion, while the other 893 projects valued at RM55.2 billion involve expansion and diversification,” he added.

Mustapa said despite the challenging global economic situation, the government is optimistic to enhance and introduce various strategies that would ensure Malaysia’s competitiveness to attract high quality foreign investments.

“This commitment was evident in Budget 2018, which emphasised on high quality investment promotional activities, including allocation for high-impact strategic funds,” he said.