Govt to review red tape over FDIs

 

Azmin Ali denies Malaysia is losing its competitive edge to attract foreign investors.

KUALA LUMPUR: Senior minister for economy Azmin Ali said he will review the reasons for the two-year delay in a multi-billion ringgit investment in Lahad Datu, Sabah.

Replying to Redzuan Yusof ((PN-Alor Gajah), the international trade and industry minister also said that foreign investments had increased in the first half of this year compared with January to June last year.

Redzuan had wanted an explanation for a stalled RM10 billion investment in Lahad Datu since 2019, questioning if other projects had been abandoned or delayed due to bureaucracy.

Azmin said he would look into the reasons for the delay, adding that he would ensure coordination between local councils, state governments, and the federal government to ensure that foreign investors could start their projects as soon as possible.

He gave the example of AT&S, a high-tech company in Kulim, Kedah that is soon to start operations, just 10 months after it filed its application papers.

Redzuan also asked about the number of jobs created by foreign investors, to which Azmin again referred to AT&S, the Austrian technology company which will begin operations in Kulim by the end of the year.

Azmin said AT&S would invest RM10 billion, creating jobs for 5,000 people, including local engineers.

The minister also denied that Malaysia was losing its competitive edge to attract foreign investors, stating that FDIs had increased by 69% in the first half of this year to RM107.5 billion, compared with RM63.3 billion in the same period last year.

Replying to Fong Kui Lun (PH-Bukit Bintang) on foreign investors who had left Malaysia, Azmin said those who moved their operations to other countries did so due to various factors, including lower wages, domestic demand, and the availability of raw material.

He said there were also investors who left due to rationalisation plans undertaken by their parent companies and not due to any “non-conducive” environment, adding that Malaysia remained competitive under the World Competitiveness Ranking after moving up two ranks this year. - FMT