ID :
144547
Sat, 10/02/2010 - 16:43
Auther :
Shortlink :
https://oananews.org//node/144547
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MALAYSIA STILL AN ATTRACTIVE DESTINATION FOR AMERICAN INVESTORS
By Manik Mehta
NEW YORK, Oct 2 (Bernama) -- Notwithstanding the challenging economic times in the United States, where companies are keeping the cards close to the chest and are reticent about making investments abroad, especially cash-strapped small companies, Malaysia still exudes some appeal as an attractive destination for
American investors.
The latest economic data released by the Department of Commerce confirms
that the pace of the US economic growth slowed down in the second-quarter of
the year to 1.7 per cent in the second-quarter of the year, down from 3.7 per
cent in the first-quarter.
Given the economy's strong reliance on consumer spending, some two-third of
the country's economic activities are attributed to consumer spending.
The 2.2 per cent rise in consumer spending has, indeed, brought some relief
to the beleaguered US administration which is particularly worried by the
persistent high unemployment level of 9.6 per cent in August, that is precluding
a substantial surge in consumer spending.
"Although the pace of economic growth has slowed, the good thing is that the
economy is not contracting.
"But it is obvious that things need to improve. Most US companies are still
not hiring," said Arham Abdul Rahman, Malaysian Investment Development Authority
(MIDA) Director in New York.
Arham said in an interview with Bernama that American experts also contended
that US companies would first have to cater to their domestic needs before they
can think of venturing abroad.
Complicating the situation was the appreciation of the ringgit which can
possibly have a dampening effect on the plans of small US companies to invest in
Malaysia, besides making Malaysia's exports more expensive.
The MIDA director described Malaysia as one of the attractive investment
destinations for US companies, saying that a number of organisations supported
that view.
The 2010 World Investment Report, released on July 22 by the United
Nations Conference on Trade and Development, said although foreign direct
investment (FDIs) flows worldwide in 2009 declined 37 per cent, Malaysia
remained "one of the top 15 host countries for FDI for 2010-2012".
Indeed, Malaysia was also ranked as the 10th most competitive nation,
according to the yearbook.
The report also suggested that Malaysia was currently promoting high
value-added, high-tech and high-wage investment into Malaysia in alignment with
the Malaysian government's effort to become a high-income nation.
Malaysia's neighbours Vietnam, Indonesia and the Philippines are attracting
low value-added and labour intensive investments, though Vietnam and Indonesia
have also received high-level of investments in infrastructure development.
Under its New Economic Model and the Tenth Malaysia Plan, Malaysia was also
addressing concerns such as its narrow human-capital base, lack of knowledge
synergies from research and development laboratories and slow build up in
technological capabilities.
Once addressed, these concerns could become attributes that could attract
greater inflows of FDIs.
According to Arham, 14 applications by US companies were approved for
investments in Malaysia during the first seven months of 2010 with a total
value of US$287.7 million.
Five of the applications were for investments in the electronic and
electrical sector, two for machinery/equipment, three for plastics, one for
chemical products, one for food manufacturing, one for fabricated metal products
and one for others.
In 2009 Malaysia attracted US$685.6 million from US companies for the
entire year.
"We are confident we will reach last year's level of investments by
year-end", Arham said.
The MIDA director praised the recent visit by the International
Trade and Industry Minister Datuk Seri Mustapa Mohamed, who made a strong pitch
for Malaysia as an investment destination during round-table presentations in
Atlanta and Philadelphia.
Arham said the minister's presentation would positively influence US
companies to invest in Malaysia as they were "very impressed" with Malaysia as
an attractive FDI destination.
One such company, PDC Machinery Inc of Pennsylvania, which manufactured
machinery components, has already decided to set up base in Malaysia.
Company representatives would be visiting Malaysia during the first week of
November to finalise the location for their plant for the production of
diaphragm compressors and pressure vessels for petrochemical and gas industry.
Two more companies, one in Atlanta and Philadelphia, are also interested to
invest in Malaysia buthave yet to finalise their investment plans.
Despite the current economic slowdown, the USA continued to be the second
largest source of FDIs after Japan.
Malaysia was placing emphasis on manufacturing-related services, including
assembly and procurement.
The Malaysian government has liberalised 27 sub-sectors within the
manufacturing-related services sector.
Malaysia's manufacturing sector has contributed some 30 to 34 per cent of
the national Gross Domestic Product during the past 10 years.
"We will continue to further liberalise our services sector," Arham added.
-- BERNAMA
NEW YORK, Oct 2 (Bernama) -- Notwithstanding the challenging economic times in the United States, where companies are keeping the cards close to the chest and are reticent about making investments abroad, especially cash-strapped small companies, Malaysia still exudes some appeal as an attractive destination for
American investors.
The latest economic data released by the Department of Commerce confirms
that the pace of the US economic growth slowed down in the second-quarter of
the year to 1.7 per cent in the second-quarter of the year, down from 3.7 per
cent in the first-quarter.
Given the economy's strong reliance on consumer spending, some two-third of
the country's economic activities are attributed to consumer spending.
The 2.2 per cent rise in consumer spending has, indeed, brought some relief
to the beleaguered US administration which is particularly worried by the
persistent high unemployment level of 9.6 per cent in August, that is precluding
a substantial surge in consumer spending.
"Although the pace of economic growth has slowed, the good thing is that the
economy is not contracting.
"But it is obvious that things need to improve. Most US companies are still
not hiring," said Arham Abdul Rahman, Malaysian Investment Development Authority
(MIDA) Director in New York.
Arham said in an interview with Bernama that American experts also contended
that US companies would first have to cater to their domestic needs before they
can think of venturing abroad.
Complicating the situation was the appreciation of the ringgit which can
possibly have a dampening effect on the plans of small US companies to invest in
Malaysia, besides making Malaysia's exports more expensive.
The MIDA director described Malaysia as one of the attractive investment
destinations for US companies, saying that a number of organisations supported
that view.
The 2010 World Investment Report, released on July 22 by the United
Nations Conference on Trade and Development, said although foreign direct
investment (FDIs) flows worldwide in 2009 declined 37 per cent, Malaysia
remained "one of the top 15 host countries for FDI for 2010-2012".
Indeed, Malaysia was also ranked as the 10th most competitive nation,
according to the yearbook.
The report also suggested that Malaysia was currently promoting high
value-added, high-tech and high-wage investment into Malaysia in alignment with
the Malaysian government's effort to become a high-income nation.
Malaysia's neighbours Vietnam, Indonesia and the Philippines are attracting
low value-added and labour intensive investments, though Vietnam and Indonesia
have also received high-level of investments in infrastructure development.
Under its New Economic Model and the Tenth Malaysia Plan, Malaysia was also
addressing concerns such as its narrow human-capital base, lack of knowledge
synergies from research and development laboratories and slow build up in
technological capabilities.
Once addressed, these concerns could become attributes that could attract
greater inflows of FDIs.
According to Arham, 14 applications by US companies were approved for
investments in Malaysia during the first seven months of 2010 with a total
value of US$287.7 million.
Five of the applications were for investments in the electronic and
electrical sector, two for machinery/equipment, three for plastics, one for
chemical products, one for food manufacturing, one for fabricated metal products
and one for others.
In 2009 Malaysia attracted US$685.6 million from US companies for the
entire year.
"We are confident we will reach last year's level of investments by
year-end", Arham said.
The MIDA director praised the recent visit by the International
Trade and Industry Minister Datuk Seri Mustapa Mohamed, who made a strong pitch
for Malaysia as an investment destination during round-table presentations in
Atlanta and Philadelphia.
Arham said the minister's presentation would positively influence US
companies to invest in Malaysia as they were "very impressed" with Malaysia as
an attractive FDI destination.
One such company, PDC Machinery Inc of Pennsylvania, which manufactured
machinery components, has already decided to set up base in Malaysia.
Company representatives would be visiting Malaysia during the first week of
November to finalise the location for their plant for the production of
diaphragm compressors and pressure vessels for petrochemical and gas industry.
Two more companies, one in Atlanta and Philadelphia, are also interested to
invest in Malaysia buthave yet to finalise their investment plans.
Despite the current economic slowdown, the USA continued to be the second
largest source of FDIs after Japan.
Malaysia was placing emphasis on manufacturing-related services, including
assembly and procurement.
The Malaysian government has liberalised 27 sub-sectors within the
manufacturing-related services sector.
Malaysia's manufacturing sector has contributed some 30 to 34 per cent of
the national Gross Domestic Product during the past 10 years.
"We will continue to further liberalise our services sector," Arham added.
-- BERNAMA
