FDIs NO LONGER GROWTH DRIVER FOR M'SIAN ECONOMY, SAYS DR M

KUALA LUMPUR, April 15 (Bernama) -- Foreign direct investments (FDIs) will
no longer be a growth driver for Malaysian economy, says former Prime Minister
Dr Mahathir Mohamad.

He said some foreign investors no longer find Malaysia attractive as an
investment destination and instead shifted their focus to China and Vietnam,
which offered lower cost and cheaper labour.

To counter that, Dr Mahathir said the government must encourage more
domestic
investments in the country.

"At the moment, our local investors are going out of the country, taking
with them billions of dollars. Unless we held them here, they are not going to
stay in the country. So government must boost opportunities for them to invest
here," he told reporters after delivering a talk at the Malaysia Industrial
Development Finance Bhd's (MIDF) 50th anniversary lecture.

Earlier, in his talk, Dr Mahathir said the government must develop
strategies
that could boost domestic investments without depending on FDIs solely.

Dr Mahathir said the government should listen to local businessmen's
grouses
to find solutions to help them.

Asked on the strengthening of the ringgit, he said the rise of the Malaysian
currency must be reflected in the import costs as the US dollar was now cheaper
for the people to feel the impact of the local currency appreciation.

"That is why I believe we still need to maintain the currency control. If we
had done that (still maintained ringgit peggging), then every time the currency
appreciated, the value of goods imported into the country using foreign
currencies like the US dollar should come down and the people should reap the
benefits from a stronger ringgit," he said.

Currently, the people are not getting the benefit, he said.

On leadership, Dr Mahathir said a leader was someone with extra qualities.
"One who is able to see the future, say what happens in five years on in 50
years' time and that is not an easy thing, unless (he or she) is able to deduce
from own observations of what is happening in another country," he added.

-- BERNAMA