BRITISH INVESTORS EXPECTED TO INVEST ABOUT US$167.34 MLN OVER NEXT TWO TO

From Amer Hamzah Md Sap

LONDON, Jan 14 (Bernama) -- Deputy Prime Minister Muhyiddin Yassin says
Malaysia had the potential to receive investments totalling RM558 million
(US$167.34 million) in various investment areas, the biggest being aerospace,
over the next two to three years.

Muhyiddin said at least five British aerospace companies had already
invested and planned to increase their investment or undertake new ones in
Malaysia during the period.

"This new trend is one which is encouraging," he told the Malaysian media
covering his official five-day visit to the United Kingdom (UK).

"Maybe, the British aerospace companies in the United Kingdom see Asia as a
region of growth," he said.

He added that he had directed the Malaysian Industrial Development Authority
(MIDA) to further pursue the matter.

The five aerospace companies expected to make additional or new investments
in Malaysia are Spirit Aerosystems (Europe) Ltd, Cobham PLC, Thyssenkrupp
Aerospace, Trelleborg Sealing Solutions UK and Pexa Ltd.

On Wednesday, he met with 16 captains of industry, including those from the
aerospace companies, for a round-table discussion.

"At the meeting, I took the opportunity to explain the country's economic
position, the policies introduced under the leadership of Prime Minister Najib
Razak, such as the One Malaysia concept as well as new initiatives to liberalise
a number of sectors such as security to attract new investments," he said.

Most of those who came are already in Malaysia and they were present to
indicate their satisfaction, not only in respect of hospitality, but to extend
various forms of support, he said.

According to him,the assistance given by the government and the Malaysian
people to ensure investors in the country produced good products, was benfitting
them.

Muhyiddin said they raised several issues, such as Malaysia giving attention
to the question of gas for industries and electricity tariffs as companies that
had made investments in the country used a higher amount of electricity while
expressing fear that the tariff will rise as a result of an increase in world
oil prices.

"The session was very useful for me as I was able to clarify issues they
raised," said Muhyiddin, adding that as a whole, British companies were still
keen on coming to malaysia

"One of the new sectors which I see as being rather attractive is
aerospace," he said.

He said that the sector had already begun in Malaysia a few years ago, with
Subang being identified as the hub for the aerospace industry.

Muhyiddin said Malaysia was suitable to become the base or hub for the
development of the aerospace industry.

In this context, he said he had encouraged the companies concerned to
explore Malaysia's potential and if keen, they would be given assistance in the
form of incentives and other facilities needed.

For companies already operating in Malaysia, he said they had already been
given incentives, among which is pioneer status for what is a long period of 15
years.

"Other incentives are encouragement in respect of capital, capital allowance
and we also extend support for industries that we can develop, such as the
production of components.

"If they bring along specialised fields, such as research and development,
there are a lot of incentives we can ofer them.

"I have informed them that if they have specific needs,we can provide
customised incentives just for them, as the form of investment is slightly
diffErent. This is a form of better encouragement that we can offer," he said

Although this is the case, he said Malaysia would leave it to the investors
as to the proposals, they wish to forward.

Malaysia views investments as being not just for the short term, as even at
the session yesterday, there were those who had already invested in Malaysia and
planned to expand their individual investments.

As an example, Dyson limited, one of the largest producers of vacuum
cleaners in the world, was already in Johor.

The company had closed its operations in Nanjing, China, after operating
there for a long time, due to logistics,legal and difficult new rules.It moved
back to Johor and now the company wants to recruit more engineers.

As a whole, he said it was hoped that all the investment proposals, can be
realised within the next two to three years.

Meanwhile, the United Kingdom is Malaysia's third largest export market
within the European Union (EU).

The UK's total imports from Malaysia decreased by 14.47 per cent to 1.29
billion pounds in the first 10 months of 2009, compared to the 1.51 billion
pounds registered in 2008.

The UK's major import items from Malaysia included electrical machinery
(30.35 per cent of total), machinery (13.38 per cent), furniture and bedding
(8.28 per cent), plastic (7.0 per cent) and rubber (6.92 per cent).

The UK's exports to Malaysia decreased by 6.47 per cent to 870.5 million
pounds in the first 10 months of 2009.

Major export items from the UK were machinery (30.21 per cent of total),
electrical machinery (11.01 per cent), vehicles (10.94 per cent), optical,
medical product (6.09 per cent) and iron and steel (5.89 per cent).

The balance of trade is in Malaysia's favour at 419.7 million pounds.
--BERNAMA