POLITICS AMONG REASONS FOR LOWER FDI ENTRY, SAYS DEPUTY MINISTER

KANGAR (Malaysia), June 29 (Bernama) -- The Malaysian government is certain
that it will be able to restore a higher level of confidence for more foreign
direct investments (FDIs) into the country.

FDIs are still at a low level currently with continuing internal political
strife being among the barriers for its entry, said Deputy Minister of
International Trade and Industry, Mukhriz Mahathir.

According to him, the long standing political strife and the attitude of
leaders in the opposition parties who were constantly raising issues that
frightened off foreign investors were among the factors making it difficult to
recover the declining FDIs.

Political stability will speed up the process to push up FDI, he told
reporters after the closing ceremony for the national level young entrepreneurs
conference held at the Politeknik Tuanku Syed Sirajuddin in Ulu Pauh, near here,
on Sunday.

"We hope the political conflicts will end as fast as possible so that the
country can return to a more competitive level than it is presently at," he
said.

More aggressive efforts must be taken to resolve the country's internal
problems to ensure that foreign investors' confidence in the country returned.

Mukhriz also took to task opposition parties who were good at raising issues
but not offering solutions for the issues.

However, he said that although the country's investment climate might appear
to be in uncertainty, many European investors he had met were of the opinion
that the political siuation in Malaysia was not critical.

"They themselves come from countries where there is political conflict every
day. What is happening in Malaysia is not as bad as what happens in their
country," he said.

He said that while there was still confidence among foreign investors, what
was more important was continuing with the efforts to put in place an investment
climate that will attract them more.

This is because investors have now started to show interest in other
countries including Vietnam and India while previously Malaysia was among the
first choice of countries to invest in, he said.

Mukhriz also called on all parties to focus on the main issues that can help
strengthen the country's economy including through processes that will reduce
political conflicts.

Meanwhile, 600 students attended the four-day convention here.

Regent of Perlis , Tuanku Syed Faizuddin Putra Jamalullail officiated the
closing ceremony.

-- BERNAMA