Mustapa: EAC to consider policy promoting Malaysia’s DDIs 

by ANIS HAZIM / pic by MUHD AMIN NAHARUL

THE Economic Action Council (EAC) will be following up on the recommendations of a policy to promote Malaysia’s domestic direct investments (DDIs).

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed (picture) said Malaysia must be equally aggressive in promoting DDI just like it does with foreign direct investment (FDI) as both are driving the country’s economic growth.

“DDI is just as important as FDI. Striking the right balance between the two is essential as they are complementary to one another,” Mustapa said in his keynote speech at the National Chamber of Commerce and Industry of Malaysia (NCCIM) Forum on “How to Revive DDI”, today.

According to him, the NCCIM’s recent survey has shed some light on issues and challenges surrounding DDI in Malaysia.

“This includes a weak investment climate, the uncertain global environment and high operating costs,” he said.

He noted that the survey also highlighted key policy recommendations to combat the issues which have been raised in EAC.

“The recommendations have been escalated to the EAC more than a month ago, and the council will follow up on some of them,” he assured.

Moving forward, he said the government will continue to collaborate closely with the private sector to create a more welcoming and efficient business environment for both domestic and foreign investors. 

“In doing so, the government continues its engagement with the business community,” he added.

Before the pandemic, Malaysia’s private investments grew 4.8% per annum from 2016 to 2019, but tumbled to 11.9% in 2020.

Last year, it was rebounding moderately to 2.6% which accounted for 15.6% of the nation’s total GDP.

“The goal is for private investments to increase by 3.8% per annum under the 12th Malaysia Plan (12MP) compared to the 1.2% per annum in the 11MP,” he further said.