by BERNAMA/ pic by RAZAK GHAZALI
ALTHOUGH it is unlikely that Malaysia will be able to achieve the same amount of total approved investments recorded in 2019 due to the Covid-19 pandemic this year, it is expected to recover next year in line with the revival of the global economy.
Malaysian Investment Development Authority CEO Datuk Azman Mahmud said the agency forecasted that the government would announce more long-term policies on investments and the economy such as the 12th Malaysia Plan, which would outline the way forward for the country’s economy.
“We do not expect to reach the same level of investments achieved in 2019.
“However, the short-term National Economic Recovery Plan would be the driver for the Malaysian economy to go back to normal, and we believe the investment numbers will go up after that,” he told reporters after the signing of a memorandum of understanding (MoU) with Standard Chartered Malaysia yesterday.
Under the MoU, both parties would collaborate to attract targeted global investments within several sectors, including high-value, high technology and high-impact investments such as electrical and electronics, machinery and equipment, aerospace renewable energy and consumer technology.
On the ongoing US-China trade war, Azman said many businesses would look at alternatives to protect their operations.
“There will be some rationalisation on the supply chain network.
“I do not think the multinational companies would close their operations in China or the US, but they will look for some alternative ways, and Malaysia is well-positioned to welcome these investors if it is competitive for them to do business,” he added.
Azman said despite competitions from the neighbouring countries, Malaysia has its own strength, as demonstrated by the continuous inflow of investments and existing investors that keep expanding their operations in Malaysia.
“About 50%-60% of our investments are business expansions or diversifications, indicating that the investment and business environment in Malaysia is very conducive,” he added.