ID :
21250
Thu, 09/25/2008 - 21:34
Auther :
Shortlink :
https://oananews.org//node/21250
The shortlink copeid
MALAYSIA GROWING AS A MAJOR INVESTOR IN ASEAN
KUALA LUMPUR, Sept 25 (Bernama) -- Malaysia's foreign direct investment (FDI) outflows for the first time surpassed inflows by RM8.96 billion (US$2.6
billion) in 2007, according to the 2008 United Nations Conference on Trade and
Development (UNCTAD) World Investment Report.
The report released here Wednesday stated that the country's FDI outflows
surged by 81.9 percent to RM38 billion (US$11.1 billion) in 2007 compared with
RM20.89 (about US$6.1 billion) in 2006.
Meanwhile, the country received RM29.04 billion (US$8.5 billion)in FDIs
last year, an increase of 38.9 percent from RM20.9 billion (about US$6.1
billion) the year before.
In terms of FDI stock, outward stock went up 61.3 percent to RM201.3
billion (about US$59 billion) last year from RM124.8 billion (US$36.3 billion)
in 2006 while inward stock grew by 42.5 percent to RM265.2 billion (US$77.7)
from RM186 billion (US$54.2 billion).
A member of the Economic Council of Malaysia, Aznam Yusoff, in presenting
the report, said the sizeable increase in outward investment was driven by cross
border acquisitions by firms, where transactions occurred particularly in
finance and other services activities.
"Malaysian overseas investment has been rising in recent years and it
reflects the international ambitions of our home grown companies, who are
engaging in international production for various reasons, including to build or
acquire brand names as well as technology, and to harvest natural resources," he
said, adding that government policies have also been supportive of overseas
investment.
The report also ranked Petronas by foreign assets as 56 among the world's
top 100 non-financial transnational companies (TNC) and second to Hong Kong's
Hutchison Whampoa Limited in terms of foreign assets among top 100 non-financial
TNCs from developing countries.
Other Malaysian non-financial companies from developing countries that have
made the top 100 include YTL Corp (27), Genting (43), Telekom Malaysia (53),
Sime Darby (61) and Maxis (68).
Zainal, who is also an economist, said he believed that prospects for the
country will continue to look promising albeit at a more moderate level as
concerns on the impact of the financial crisis and economic downturn triggered
by problems in the subprime mortgage market in the United States remain
unaddressed.
"According to UNCTAD, there will be a drop in the percentage of companies
planning large increases in investment overseas over the next few years but
general improvements in the regions's investment environment will continue to
attract investors," he said.
These, he said include the liberalisation of FDI, strengthened regional
economic integration, resilient economic growth and strong industrial
development.
Zainal said that a continuation of progressive liberalisation with vigour,
especially for services, as well as efficient admission procedures and
attractive investment incentives will augur well for foreign investors.
-- BERNAMA
billion) in 2007, according to the 2008 United Nations Conference on Trade and
Development (UNCTAD) World Investment Report.
The report released here Wednesday stated that the country's FDI outflows
surged by 81.9 percent to RM38 billion (US$11.1 billion) in 2007 compared with
RM20.89 (about US$6.1 billion) in 2006.
Meanwhile, the country received RM29.04 billion (US$8.5 billion)in FDIs
last year, an increase of 38.9 percent from RM20.9 billion (about US$6.1
billion) the year before.
In terms of FDI stock, outward stock went up 61.3 percent to RM201.3
billion (about US$59 billion) last year from RM124.8 billion (US$36.3 billion)
in 2006 while inward stock grew by 42.5 percent to RM265.2 billion (US$77.7)
from RM186 billion (US$54.2 billion).
A member of the Economic Council of Malaysia, Aznam Yusoff, in presenting
the report, said the sizeable increase in outward investment was driven by cross
border acquisitions by firms, where transactions occurred particularly in
finance and other services activities.
"Malaysian overseas investment has been rising in recent years and it
reflects the international ambitions of our home grown companies, who are
engaging in international production for various reasons, including to build or
acquire brand names as well as technology, and to harvest natural resources," he
said, adding that government policies have also been supportive of overseas
investment.
The report also ranked Petronas by foreign assets as 56 among the world's
top 100 non-financial transnational companies (TNC) and second to Hong Kong's
Hutchison Whampoa Limited in terms of foreign assets among top 100 non-financial
TNCs from developing countries.
Other Malaysian non-financial companies from developing countries that have
made the top 100 include YTL Corp (27), Genting (43), Telekom Malaysia (53),
Sime Darby (61) and Maxis (68).
Zainal, who is also an economist, said he believed that prospects for the
country will continue to look promising albeit at a more moderate level as
concerns on the impact of the financial crisis and economic downturn triggered
by problems in the subprime mortgage market in the United States remain
unaddressed.
"According to UNCTAD, there will be a drop in the percentage of companies
planning large increases in investment overseas over the next few years but
general improvements in the regions's investment environment will continue to
attract investors," he said.
These, he said include the liberalisation of FDI, strengthened regional
economic integration, resilient economic growth and strong industrial
development.
Zainal said that a continuation of progressive liberalisation with vigour,
especially for services, as well as efficient admission procedures and
attractive investment incentives will augur well for foreign investors.
-- BERNAMA
