ID :
45085
Wed, 02/11/2009 - 16:56
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https://oananews.org//node/45085
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MALAYSIA'S MANUFACTURING REMAINS COMPETITITVE DESTINATION FOR FDI
KUALA LUMPUR, Feb 10 (Bernama) -- Malaysia's manufacturing sector remained a competitive destination for foreign direct investment (FDI) inflows last year, International Trade and Industry Minister Muhyiddin Yassin said Tuesday.
Investments in the sector in 2008 were the highest recorded to-date and more
than doubled the target of RM27.5 billion per annum set under the third
Industrial Manufacturing Plan (IMP3).
Approvals in the manufacturing sector amounted to RM62.8 billion last year
compared with RM59.9 billion in 2007, he said at Malaysian Industrial
Development Authority (MIDA) Annual Media Conference on the Performance of the
Manufacturing and Services Sectors in 2008 here.
For 2008, the significant increase in investments was due to the approval of
several capital-intensive projects, particularly in the basic metal products,
electrical and electronic, petrolchemicals and transport equipment industries,
Muhyiddin said.
A total 12 projects involving investments of RM1 billion and above were
approved, with the investments totalling RM38.3 billion or 61 percent of the
total approved investment for last year, he said.
Muhyiddin said projects involving foreign investments formed the lion's
share of the total investment in 2008.
Foreign investments amounted to RM46.1 billion or 73.4 percent of the total
investment approved, he said.
FDI inflows into the sector were also the highest recorded to-date last
year, which marked the fifth consecutive year of increase in foreign investments
compared with RM33.4 billion in 2007, RM20.2 billion in 2006, RM17.9 billion in
2005 and RM13.1 billion in 2004.
According to Muhyiddin, Malaysia's ability to continue to attract a
substantial amount of FDI is due to, among others, liberal investment polices,
cost-competitiveness as an investment location, well-developed infrastructure,
strong supporting industries, and productive workforce.
"Equally important ino attracting FDI is the government's continued drive to
actively promote domestic investments," he said.
Approved investments last year amounted to RM16.7 billion. Domestic
investments in the sector averaged about RM14.9 billion per annum from
2002-2006, while in 2007, it stood at RM26.5 billion.
For the major sources of foreign investments, the top three investors were
Australia, the United States and Japan.
Australia's investment increased to RM13.1 billion, representing the highest
level of investments recorded over the last five years.
A single project in the basic metals industry with an investment of RM12.5
billion accounted for the bulk of investments.
The United States was the second largest investor with investment totalling
RM8.7 billion, followed by Japan which continued to be a significant investor in
the manufacturing sector with investments worth RM5.6 billion.
Full implementation of the projects approved last year will generate
employment opportunities for 101,173 in skilled professions such as electronics,
chemical, mechanical and software engineers, biotechnologist, microbiologists,
and pharmacists.
As for services sector, it continued to be an important engine of growth in
the Malaysian economy, Muhyiddin said .
A total of 2,755 projects with investments totalling RM47.8 billion were
approved last year, lower than RM66.4 billion for 2007.
Approvals in the services sector, however, surpassed the IMP3 target of
RM45.9 billion per annum.
Domestic investments amounted to RM42.3 billion or 88.5 percent of the
total approved investment.
Foreign investments in the services sector totalled RM5.5 billion or 11.5
percent.
Major approvals in the services sector were in real estate (RM25.9 billion),
financial services (RM4.8 billion), energy (RM4.4 billion), telecommunications
(RM2.8 billion), and support services (RM2.2 billion).
Projects approved in 2008 are expected to generate employment opportunities
for 35,691.
On regional operations, Muhyiddin said a total of 158 new regional
establishments with investments of RM209.7 million were approved, with a
proposed annual sales turnover of RM1 billion.
These operations will provide job opportunities for about 1,000 Malaysians
at the managerial, professional and technical levels, he said.
Of the approvals, 141 were for regional and representative offices, 10 for
operational headquarters, six were for international procurement centres and one
for a regional distribution centre.
-- BERNAMA
Investments in the sector in 2008 were the highest recorded to-date and more
than doubled the target of RM27.5 billion per annum set under the third
Industrial Manufacturing Plan (IMP3).
Approvals in the manufacturing sector amounted to RM62.8 billion last year
compared with RM59.9 billion in 2007, he said at Malaysian Industrial
Development Authority (MIDA) Annual Media Conference on the Performance of the
Manufacturing and Services Sectors in 2008 here.
For 2008, the significant increase in investments was due to the approval of
several capital-intensive projects, particularly in the basic metal products,
electrical and electronic, petrolchemicals and transport equipment industries,
Muhyiddin said.
A total 12 projects involving investments of RM1 billion and above were
approved, with the investments totalling RM38.3 billion or 61 percent of the
total approved investment for last year, he said.
Muhyiddin said projects involving foreign investments formed the lion's
share of the total investment in 2008.
Foreign investments amounted to RM46.1 billion or 73.4 percent of the total
investment approved, he said.
FDI inflows into the sector were also the highest recorded to-date last
year, which marked the fifth consecutive year of increase in foreign investments
compared with RM33.4 billion in 2007, RM20.2 billion in 2006, RM17.9 billion in
2005 and RM13.1 billion in 2004.
According to Muhyiddin, Malaysia's ability to continue to attract a
substantial amount of FDI is due to, among others, liberal investment polices,
cost-competitiveness as an investment location, well-developed infrastructure,
strong supporting industries, and productive workforce.
"Equally important ino attracting FDI is the government's continued drive to
actively promote domestic investments," he said.
Approved investments last year amounted to RM16.7 billion. Domestic
investments in the sector averaged about RM14.9 billion per annum from
2002-2006, while in 2007, it stood at RM26.5 billion.
For the major sources of foreign investments, the top three investors were
Australia, the United States and Japan.
Australia's investment increased to RM13.1 billion, representing the highest
level of investments recorded over the last five years.
A single project in the basic metals industry with an investment of RM12.5
billion accounted for the bulk of investments.
The United States was the second largest investor with investment totalling
RM8.7 billion, followed by Japan which continued to be a significant investor in
the manufacturing sector with investments worth RM5.6 billion.
Full implementation of the projects approved last year will generate
employment opportunities for 101,173 in skilled professions such as electronics,
chemical, mechanical and software engineers, biotechnologist, microbiologists,
and pharmacists.
As for services sector, it continued to be an important engine of growth in
the Malaysian economy, Muhyiddin said .
A total of 2,755 projects with investments totalling RM47.8 billion were
approved last year, lower than RM66.4 billion for 2007.
Approvals in the services sector, however, surpassed the IMP3 target of
RM45.9 billion per annum.
Domestic investments amounted to RM42.3 billion or 88.5 percent of the
total approved investment.
Foreign investments in the services sector totalled RM5.5 billion or 11.5
percent.
Major approvals in the services sector were in real estate (RM25.9 billion),
financial services (RM4.8 billion), energy (RM4.4 billion), telecommunications
(RM2.8 billion), and support services (RM2.2 billion).
Projects approved in 2008 are expected to generate employment opportunities
for 35,691.
On regional operations, Muhyiddin said a total of 158 new regional
establishments with investments of RM209.7 million were approved, with a
proposed annual sales turnover of RM1 billion.
These operations will provide job opportunities for about 1,000 Malaysians
at the managerial, professional and technical levels, he said.
Of the approvals, 141 were for regional and representative offices, 10 for
operational headquarters, six were for international procurement centres and one
for a regional distribution centre.
-- BERNAMA
