Malaysia is not in retreat despite the rising protectionist sentiments in a number of countries, said the Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed in Davos, Switzerland recently.
“We remain open for business. Foreign investments have played a major role in our economic development and we will continue to welcome high quality investments, especially in the catalytic subsectors namely chemicals, electrical & electronics (E&E), and machinery & equipment (M&E), as well as other high potential growth areas including aerospace, medical devices and digital economy,” he assured the international community during a business luncheon held in conjunction with the World Economic Forum (WEF)
The Malaysian delegation at the WEF had continued their annual tradition by hosting the Business Luncheon, one of the most iconic Malaysian events in Davos. The event was jointly hosted by Khazanah Nasional and MIDA.
Mustapa pointed out that Malaysia has been a major beneficiary of Foreign Direct Investment (FDI). No less than one million of its people are working with foreign companies. FDI also contributes to the country’s exports given that a large number of foreign companies operating in Malaysia are 100% export-oriented.
“The presence of foreign companies in our economy has also provided our local SMEs access to valuable technology transfer and exchange of know-how, which are crucial in developing their capabilities which will allow them to be part of the global supply chain,” he added.
Mustapa said that the digital economy is one the priority areas identified for future economic growth. In this area, Malaysia has recorded an improvement in new investments, from USD1.05 billion in 2015 to USD 1.5 billion in 2016.
The targeted areas for future growth as far as the digital economy is concerned will be on financial technology, growth of start-ups and the development of the world’s first cross border trade for SMEs namely the Digital Free Trade Zone as announced under the Budget 2017.
He also reiterated Malaysia’s commitment to pro-growth policies, despite the challenging economic conditions, “We have invested heavily in infrastructure as evidenced through recent key projects such as the MRT and Pan Borneo Highway and will continue to invest in major infrastructure such as the High Speed Rail which will further improve the business environment. This will also improve the connectivity within and beyond the borders of Malaysia hence enhancing our competitiveness in the region.”
During the luncheon, the Minister responded to several questions raised by the audience. The questions asked were mainly on the direction of the Malaysian economy, especially in the context of President Trump’s administration and the current status of the economic integration of ASEAN.
He urged the investors to take advantage of the numerous opportunities available in the dynamic region of ASEAN by using Malaysia as the gateway. A large number of foreign companies such as Novartis, Roche, GE and Standard Chartered have made Malaysia their regional hubs.