MALAYSIA TO WOO MORE EUROPEAN FIRMS TO INVEST HERE

KUALA LUMPUR, Aug 26 (Bernama) -- Malaysia will take advantage of the
setbacks in the European economy to attract companies to relocate to Malaysia,
said Deputy Minister of International Trade and Industry, Mukhriz Mahathir.

"There are still uncertainties in the euro zone, especially in Greece and
Portugal. So, when there is a challenge like this, there will also usually be
opportunities to attract them to relocate to Asia which has high growth," he
told a media briefing after the soft launch of the KL International Trade Forum
2010 here Thursday.

Besides, he said, some products could be produced here at a much lower cost
and for specific industries, Malaysia also has the skill.

"We are talking to companies like that who may consider moving out from
their own market," he said, citing German Q-Cell AG in Malaysia.

The products produced here can be re-exported to Germany, he said.

Mukhriz said some of the companies Malaysia was talking to were involved in
the electrical and electronic and chemical sectors as well as in producing solar
panels.

"Such moves are among the efforts the government is taking to attract more
foreign direct investments (FDIs) into the country," he said.

At the same time, he said, the government was also keen to increase the
domestic direct investments (DDIs) to further boost the economy.

"DDIs are equally important for us," he said, adding that he was optimistic
there would be an improvement in FDIs by year-end.

Meanwhile, Mukhriz said, there would be no major impact if the French retail
giant, Carrefour, were to exit Malaysia as its assets would remain here.

"The decision is usually made by companies based on commercial factors," he
said.
-- BERNAMA