MALAYSIA AIMS FOR BALANCE IN DDI AND FDI

IPOH (Malaysia), Jan 28 (Bernama) -- The Malaysian government will offer
several incentives to local companies to encourage them to invest domestically
as part of efforts to balance the rate of Foreign Direct Investment (FDI) and
Domestic Direct Investment (DDI) in the country, said Deputy International Trade
and Industry Minister Mukhriz Mahathir.

He said the government was aiming for a ratio of 50:50 in FDI and DDI
compared with the present 70:30.

"We will encourage them to invest in their own country...we will offer them
several incentives and space to see what they have here," he told reporters
after officiating the Perak level "A Day with MITI's Industry and EntrepenuersI"
here Thursday.

Mukhriz, who did not disclose what the potential incentives would be, said
local companies were keen to invest overseas due to many factors among them
being the easily available supply of raw materials.

He said the government would also at the same time increase efforts to
promote Malaysia to foreign investors as the destination for high technology
investment with high value addition.

Investments in some areas that had come into Malaysia in the past have now
gone into neighbouring countries like Indonesia and Vietnam, especially those
that are labour-intensive.

As part of measures, the government is focusing on capital oriented
investments rather than assembly line or labour oriented investments, he
said.

--BERNAMA



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