Malaysia to attact more investment?

Malaysia is poised to attract more foreign direct investments (FDIs) when higher skills and productivity set in through the New Economic Model (NEM), two government leaders said in response to Prime Minister Datuk Seri Najib Tun Razak’s comments in Hong Kong on Wednesday.

Najib is scheduled to unveil a number of administrative reforms when he introduces the NEM next week to emphasise the execution of the model to transform Malaysia into a high-income economy and spur greater economic development.

Economic bureau member Datuk Dr Norraesah Mohamad said the country needed the NEM to break out of the “middle-income trap”.

“NEM’s greater focus on climbing up the economic value chain, attracting and retaining talent, as well as emphasis on innovation will definitely drive more investments into Malay­sia.

“This is our wake-up call. With stiff competition for FDIs from our neighbours and the world’s focus on the larger Asian economies of China, India, Vietnam and Indonesia, Malaysia faces challenges in not just attracting FDIs but also in attracting talent to our shores,” she said.

The NEM, she said, would address that imbalance.

The Government approved 766 manufacturing investments worth RM32.6bil last year, of which foreign investments accounted for 67.8% or RM22.1bil.