M'SIA SEEKS MORE BRITISH INVESTMENTS IN AEROSPACE, FINANCIAL SERVICES SECTORS

From Amer Hamzah Md Sap

LONDON, Jan 13 (Bernama) -- Malaysia wants more British investments in the aerospace industry and financial services sector, says Deputy Prime Minister Muhyiddin Yassin.

He said Malaysia was a viable location for manufacture of aircraft
components,
maintenance, repair and overhaul for both regional and global markets.

"Aerospace companies in the United Kingdom should take advantage of
Malaysia's
International Aerospace Centre established by the government to
develop Malaysia into a regional aerospace centre by 2015," he said when
addressing 16 British investors here.

Muhyiddin, on a five-day official visit to Britain from Sunday, said the
Malaysian Government had announced comprehensive tax incentives that include tax
holidays and allowances to further promote aerospace industry growth in
Malaysia.

Malaysia was now on a higher plane of industrialisation, focusing on
attracting quality and high technology investments, capital intensive, high
value-added, knowledge-based and skills-intensive operations, incorporating
activities like design and development and research and development programmes,
he said.

"Our priority sectors are advanced electronics, information and
communications
technology, machinery and equipment, biotechnology, medical devices and
renewable energy," he said.

Muhyiddin said the government had announced additonal liberalisation
measures
in the financial services sector which include increasing foreign equity
participation in the banking and insurance sectors.

He said Central Bank of Malaysia had also signed a memorandum of
understanding with the UK Trade and Investment, a government agency, to promote
Islamic Finance and business linkages between the United Kingdom and Malaysian
financial institutions.

"With the growing interest in Islamic banking, British banks are invited to
collaborate with Malaysian banks in the Islamic financial services areas to
enter the financial markets, not only to serve the Asean region but also the
Middle East," he said.

The government had also announced deregulation of investment guidelines
administered by the Foreign Investment Committee in the areas of acquisition of
equity stakes, mergers and takeovers, acquisition of properties and treatment of
funds raised by listed companies, he said.

Muhyiddin said the deregulation would strengthen Malaysia's attractiveness
as
the place to do business and to invest for Malaysians and foreigners alike.

The Deputy Prime Minister said the government was also in consultations with
service providers to identify additional services sub-sector for liberalisation.

He said this was achieved in line with Malaysia's commitment to Asean and
the World Trade Organisation to enhance Malaysia's stature as a competitive
investment environment for the services sector.

On regional establishments as Malaysia was transforming from a manufacturing
dependent to a more service-oriented economy, Muhyiddin said the government was
promoting the setting up of regional establishments.

Among them are operational headquarters, international procurement centres
and regional distribution centres for which attractive incentives are being
offered to investors who set up such operations.

To date, some 2,600 regional establishments have set up operations in
Malaysia, of which 53 are from the United Kingdom.

Muhyiddin said Malaysia had also emerged as an important hub for shared
services, data centres, back offices and customer service centres.

On medical tourism, he said the government was also promoting healthcare
tourism industry by offering incentives to entrepreneurs and investors.

"This include converting the status of foreign patients entering Malaysia
for medical treatment on emergency via "Visa On Arrival" to social visit pass,"
he said.

On pull factors, the Deputy Prime Minister said Malaysia had provided and
would continue to provide political and social stability, strong economic
fundamentals to ensure the momentum for economic growth and business potentials,
strong public sector support and collaborations and business-friendly policies,
highly-productive workforce and global trade linkages.

The other factors are availability of a wide range of both fiscal and non-
fiscal incentives including pre-packaged customised incentives for projects and
activities targeted for development by the government, added Muhyiddin who was
former International Trade and Industry Minister.

-- BERNAMA