Malaysia loses ‘pull factors’ to attract foreign investments: Rafidah

by ANIS HAZIM / pic TMR FILE

POLICYMAKERS need to study the country’s direction of policy on investments and businesses to attract foreign investment, said former Minister of International Trade and Industry (MITI) Tan Sri Rafidah Aziz (picture).

The veteran politician said that Malaysia should step ahead of neighbouring countries, especially in this competitive market.

“We seem to be lacking the ‘pull factors’ and elements that could attract foreign investment to our country,” Rafidah told reporters after speaking at the Malaysia Global Business Forum (MGBF) Roundtable Series on the Evolving Threat Matrix in the Digital Economy on Tuesday.

She said that Malaysia’s investment outlook for this year seems promising, however, she questioned if the investment will actually be able to realise or take place in the country

“Because eventually if there’s a problem in our country — they (investors) will run away since they have not done anything yet,” she said.

In order to beat the competitive market, Malaysia needs to have an attractive environment for investment with an accessible policy.

“Due to our unreasonable conditions, it has become the ‘push factor’ for investors to not operate in Malaysia,” she noted.

In October last year, Miti said that nine foreign manufacturing companies shut down their operations in Malaysia due to the stagnant global economy caused by the Covid-19 pandemic.

Meanwhile, Rafidah opined that Malaysia’s policy is not welcoming to foreign investors or dubbed investors friendly.

She is concerned that some policies were made with a political motive that has no relevance and brings unhealthy competition in the market which needs to be changed.