USE M'SIA AS "GATEWAY" TO PENETRATE ASEAN & GLOBAL MARKET, FOREIGN INVESTORS TOLD

By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, March 1 (Bernama) -- Foreign firms wanting to expand their
global reach and intending to penetrate the Asean market should make use of
Malaysia as the "gateway" for their investment, says Former International Trade
and Industry Minister Rafidah Aziz.

With the approach of the Asean Economic Community (AEC) or single market in
2015 and implementation of the Asean Free Trade Agreement (AFTA) on Jan 1, 2010,
goods and services tariff are well in place, which means "we can tell the world
that Malaysia has a big tariff free market."

"We must tell the world that we can be the gateway to Asean which we have
always been. For Malaysia, our biggest trading partner now is Asean as a group,
which means we do a lot of business with Asean. The business link, logistics
link and trading links are already there, so use us as the gateway to the bigger
Asean market," she told Bernama in an interview.

Rafidah, who is also patron of the Malaysia-Europe Forum, said this must be
impressed upon outsiders again and again because "we have competitors."

"We have competitors like India and China. In fact, we can tell them
(investors) that Asean already has bilateral linkages with India, China,
Japan and South Korea.

"Being in Asean countries, investors can have access into other markets and
they can find Asean countries like Malaysia to be competitive and has the right
ingredients, so to speak, to make for competitive manufacturing and for
exports," said Rafidah, who still has a sharp acumen of trade and industry
issues though she was no longer the Minister of International Trade and
Industry.

To maintain Malaysia's competitiveness in wooing foreign direct
investment (FDIs), Rafidah said the relevant authorities must continue to "touch
base" with people who have the potential to invest abroad.

"If we go to America, we must look at companies that are ready to come out
of America and to locate themselves in this part of the world.

"If you don't meet them, we are gone. They will go to other countries that
have already made their first move. So, we must make the first move and present
ourselves," said Rafidah who is also Kuala Kangsar member of parliament.

Rafidah said: "To me, we have everything going for us,with Malaysia's good
track record and political stability."

"There is no reason why we should be looked at negatively by anybody. We
don't want to be as the world's "best kept secret" as far as investment
destination is concerned as that is terrible.

"We want to be a very open knowledge to everybody that we are among the best
in this part of the world," she said.

To achieve this, she said: "We have to go out and reach out to them, big or
small as what local companies like Sime Darby, Guthrie and Genting have gone
abroad to become global players.

"They cannot be re-investing all they have in Malaysia merely. They have
invested abroad in line with our call to go global and become global
conglomerates.

"Similarly, foreign companies wanting to expand globally, they are welcome
to do that in Malaysia.

"There is no reason why we should be looked at negatively by anybody. We
don't want to be as the world's "best kept secret" as far as investment
destination is concerned as that is terrible.

"We want to be a very open knowledge to everybody that we are among the best
in this part of the world," she said.

To achieve this, she said: "We have to go out and reach out to them, big or
small as what local companies like Sime Darby, Guthrie and Genting have gone
abroad to become global players.

"They cannot be re-investing all they have in Malaysia merely. They have
invested abroad in line with our call to go global and become global
conglomerates.

"Similarly, foreign companies wanting to expand globally, they are welcome
to do that in Malaysia.

"We appreciate foreign investors ploughing back their money in our economy.
We've to make sure any amount of FDIs that is coming to this region must come
to Malaysia first.

"We must touch base with them and there is no two ways about it. From my own
experience for 20 over years, it is meeting every investor and
entrepreneurs time and again," she said.

Asked on Asean and Malaysia's competitive edge as compare with China and
India, Rafidah said China and India have had a lucrative domestic
market even from before.

"But we've an Asean domestic market that is equally lucrative. Asean region
with 560 million population is no small matter. Our GDP is very big, we're not
just big in numbers, but we're also big in terms of economic power and
purchasing power in Asean," she said, adding that Malaysia had always been an
important destination for FDIs.

She said gone were the days of low-capital intensity in Malaysia as now the
country was focusing on high-tech and industries that required the latest in
technology and processes that have the potential for spin-offs.

Rafidah said Malaysia was also a suitable place for people intending to do
research and development like in nano technology and photonics to set up their
research centres here.

"If they're looking for a place to produce products using the latest
technology, they should come to Malaysia," she added.
-- BERNAMA