MITI SEEKS TO EMPOWER MIDA AS ONE-STOP AGENCY

KUALA LUMPUR, Jan 12 (Bernama) -- Malaysia's Ministry of International Trade
and Industry (MITI) is seeking to enhance the role of the Malaysian Industrial
Development Authority (MIDA) to become a one-stop agency in approving investment
incentives.

"Now we are drafting the amendments to MIDA's Act, before presenting to the
Cabinet and then the Bill will brought to Parliament for approval,"
International Trade and Industry Minister Muhyiddin Yassin said at a
briefing for senior editors here Monday.

"Currently, the global invesment environment is very competitive where
investors have choices where they want to go, either China or India and other
parts of the region," Muhyiddin said.

Therefore, Malaysia has to strengthen its position to sustain and
improve its competitiveness, he said.

Muhyiddin said the ministry has proposed that MIDA's name be changed
to Malaysian Investment Authority Development.

"One of the areas that we are focusing is the liberalisation of the
manufacturing-related services sector," he said.

As part of the effort to further liberalise this sector are the
recommendation to empower MIDA and upgrading of incentive packages related to
the sector, the minister said.

"We proposed that MIDA be empowered as one central body so that changes can
be made," he said, adding that whatever related to investment incentives should
be under MIDA.

Muhyiddin said that MITI currently does not have the full power to approve
investment incentives.

This has led to problems where investors needed to get approval on
investment incentives not only at the MITI level but also from the Finance
Ministry, according to him.

"That is why we have to change MIDA, (but) we have to go to the Cabinet
first," he said.
-- BERNAMA