M'SIA NOT CAPITAL EXPORTING COUNTRY, SUPPORT FOR DOMESTIC INDUSTRIES CRUCIAL, SAYS DR M

By Nor Baizura Basri

KUALA LUMPUR, Oct 18 (Bernama) -- Malaysia is not a capital exporting nation,
but efforts are needed to continue supporting domestic industries, says former
Prime Minister Dr Mahathir Mohamad.

He said it was vital to allow government-linked investment companies (GLICs) to
invest abroad, especially if opportunities in the country was quite limited.

"I always believe if we have opportunities in the country, it's better not to
export capital. We are not a capital exporting nation, so we should spend most
of our money within the country," he told reporters after delivering a keynote
address at an international conference in conjunction with the 61st United
Malays National Organisation (Umno) General Assembly, which starts Tuesday. Umno
leads the ruling coalition, Barisan Nasional (BN).

Citing the Employees Provident Fund (EPF), Dr Mahathir said the fund, which has
more than RM300 billion fund size, might find difficulty in matching proper
investments for all its fund. (US$1=RM3.09)

Dr Mahathir, who is adviser to the Malaysian national car maker, Proton Holdings
Bhd, and national oil corporation, Petronas, was commenting on the government's
decision to allow GLICs to invest up to 20 per cent of their total managed
assets overseas from only seven per cent currently.

As at March 31, EPF's total fund size is estimated at RM402 billion, most of
which are invested in bonds and equities locally.

Asked whether the move would contradict with government's efforts in wooing
foreign direct investments (FDIs), he said: "Well, it can be said that it is
contradictory."

"I always believe we don't need FDIs now. We need to have support for our local
industries...that's my view," said Dr Mahathir who helmed Malaysia for 22 years.

In Budget 2011 announcement, the government announced that GLICs would continue
to divest their shareholdings in major companies listed on Bursa Malaysia to
increase liquidity and trading velocity in the market.

Meanwhile, Dr Mahathir dismissed claims by several parties that Budget 2011 was
"his budget" as it involved another skyscraper project, "Warisan Merdeka", that
entailed an integrated development project including a 100-storey tower building
costing RM5 billion.

"I think if there's anybody who want to spend money and think that's my
budget...that's wrong.

"I think the government thinks, it needs (it), so perhaps there's a reason for
that. (But) what is interesting for me is that money is being spent to build
this tower.

"When you spend money, then you create jobs and opportunities for doing
business. I don't know whether it should be a 100-storey tower or not...but
spending money is good.

"For me, I always spend money so much so that after I stepped down, they had no
money at all. They didn't even pay civil servants' salary," he said cynically,
prompting laughter from journalists.

Earlier, Dr Mahathir delivered a keynote address entitled "The Creation of
Global Citizen: Media Liberalisation and New Political Realities."

The inaugural conference was held in conjunction with the five-day Umno General
Assembly which ends on Saturday.

Some 400 participants from 20 countries, including 54 from overseas Umno clubs,
attended the one-day conference.
-- BERNAMA



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