MITI ANNOUNCES INCREASED FDI IN 2008

KUALA LUMPUR, Jan 23 (Bernama) -- The Ministry of International Trade and
Industry (MITI) Friday announced that Malaysia had recorded an increase of 53.4
percent growth in foreign direct investment (FDI), with inflows totalling
US$12.9 billion (US$1 = RM3.60) in 2008, compared to US$8.4 billion in 2007.

The FDI report is based on the United Nations Conference for Trade and
Development (UNCTAD) preliminary report of January 19,2009, MITI said in a
statement.

The increase gave Malaysia the highest regional FDI growth,outperforming
other investment destinations such as Singapore, Thailand, Indonesia and China.

The former three recorded negative FDI while China posted a 10.6 percent
growth, MITI said.

MITI also said the sectors that recorded the highest FDI inflows were those
of basic metal, electrical and electronics as well as chemical and food
manufacturing products.

MITI secretary-general Abdul Rahman Mamat said the growth in FDI
for Malaysia was remarkable, given that worldwide FDI flow, had dropped by 21
percent on average.

"This growth is a further reflection of the confidence investors have in
Malaysia's investment environment.

"Among the factors that contributed to the surge in Malaysia's FDI were
stable public policies, a favourable investment environment, structural reform,
prompt and effective economic stimulus initiatives by the government and liberal
policies towards FDIs," he said.

"The global financial crisis will definitely impact all FDI flow this
year. MITI is aware of this and has undertaken measures to ensure the continued
flow of FDIs," he explained.

"Investors can look forward to a further liberalisation of service sector
policies, an improvement in the government delivery system and a review of
policies that are impeding trade," he added.

The UNCTAD predicts that FDI flow will drop further in 2009, due to the
global impact of the financial crisis.

-- BERNAMA