PERC REPORT ALLEGING MALAYSIA BECOMING UNSTABLE IS WRONG

KUALA LUMPUR, March 30 (Bernama) -- A report by Hong Kong-based Political
and Economic Risk Consultancy (PERC) claiming that Malaysia under Prime Minister
Najib Tun Razak is heading towards instability, is wrong.

International Trade and Industry Deputy Minister Jacob Dungau said not
only was the report wrong, it also contradicted its own other report which
showed that based on all the socio-political variables, the risks were on the
decline from January 2009 to January last year.

"This clearly shows that Malaysia is on the right track as a competitive
investment destination," he said in reply to a question from Dr Dzulkefly Ahmad,
a Member of Parliament (MP) in the House of Representatives, here, Tuesday.

Dungau said Malaysia always followed reports made by the foreign media and
international economic and political research bodies on developments in the
country.

"The governmment is aware of reports that are inaccurate, not objective and
even unfair to Malaysia as they contain information that do not reflect the real
situation in the country."


He said to provide foreign investors with the correct and up-to-date
information pertainig to current developments in Malaysia, the International
Trade and Industry Minister often met up with foreign journalists and the
international business community here or during Malaysia's trade and investment
promotion missions abroad.

Dungau said investors still had confidence in Malaysia as a choice
investment destination and this was proven by the investment figures in the
manufacturing sector in the last three years -- RM59.9 billion (US$1=RM3.25) in
2007, RM62.8 billion in 2008 and RM32.6 billion in 2009.

"Malaysia has a positive attitude towards all the valid criticisms from in
and outisde the country as such criticisms show that Malaysia has a high
international profile and is always being watched by the world."

Dungau also said that Pemudah (the high-powered special task force dedicated
to facilitating business) would form working groups before the end of April to
focus on issues relating to government procurement, the labour law, business
termination, licensing and facilitation of business.

He said the issue of the judiciary's service delivery was being studied by
Pemudah.

"With the changes taking place, the new Commercial Court is expected to
dispose of cases, except those involving intellectual property and financial
transactions, within 270 days compared with the average of 585 days currently,"
he said.

-- BERNAMA