Only 8 Majority Foreign-Owned Firms Close Operations in Jan-Oct - MOF

KUALA LUMPUR, Nov 20 (Bernama) -- The Ministry of Finance (MoF) has refuted claims that many foreign investors have either closed their operations here or moved to other countries. “Only eight majority foreign-owned companies in the manufacturing sector had closed their operations in Malaysia in the January to October 2017 period,” the MoF said in a written reply circulated to the media Monday. The ministry said among the reasons for the closures were weak market following decline in sales and demand, emergence of new technology to replace existing technology and products and increase in production cost. “Other contributing factors included the limited and declining availability of raw materials, takeover by other companies and company restructuring exercise,” it said in reply to an oral question from MP Sim Tong Him. However, the ministry said Malaysia continued to attract quality and high-technology foreign direct investments from companies like Robert Bosch (M) Sdn Bhd during the January to June 2017 period. “New foreign investors’ confidence in the country is manifested in new projects approved in the January to June 2017 period, like JCT Industries Group Sdn Bhd and Kato Manufacturing (M) Sdn Bhd,” it said. To a question on the country with the highest investment in Malaysia, it said as of 2016, Japan was in top position with RM88.5 billion worth of investments, followed by the United States (RM71.9 billion) and Singapore (RM39.2 billion). -- BERNAMA