Think tank backs proposal to set up FDI monitoring panel

 

Center for Market Education’s Carmelo Ferlito and former second finance minister Johari Ghani have called for the setting up of a special committee under Miti to monitor investments in the country.

PETALING JAYA: A think tank has urged the government to set up a foreign direct investment (FDI) monitoring committee to strengthen Malaysia’s ability to attract FDIs and develop a proper communication strategy.

The Center for Market Education (CME) said the committee, which should come under the international trade and industry ministry (Miti), should include representatives from international chambers of commerce and local industries.

CME said the committee should be tasked with obtaining feedback from international and domestic industry players to understand the reasons which eventually block investors from entering the country.

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It said the committee should also review the reasons why approved investments do not turn into implemented projects.

Its other tasks should include communicating data about approved and implemented FDIs as well as drafting proposals to strengthen Malaysia’s investment attractiveness.

In a statement today, the centre’s CEO, Carmelo Ferlito, said the most important issues surrounding investment attractiveness are labour legislation and banking regulation.

He said too many limitations are placed that impede the emergence of a vibrant labour force involving both talent and low-skilled workers’ level.

Ferlito said restrictive banking rules make it impossible or extremely time-consuming for big corporations to open a bank account locally, with the rising risk of appointment of fake directors and shareholders.

“A regular revision of the investments, to understand what is right and what is wrong, and a constant dialogue with industry players are key elements for revitalising Malaysia’s vocation to international trade and investments,” he said.

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This follows a call by former second finance minister Johari Ghani for the government to set up a special committee under Miti to monitor investments in the country, in the wake of Malaysia securing a RM170 billion investment commitment from China.

Johari, who is the Titiwangsa MP, said it was important to monitor the implementation of memorandums of understanding (MoUs) entered by Malaysian companies with foreign entities, as well as follow up on issues involving the MoUs, including those faced by potential investors.

Yesterday, Prime Minister Anwar Ibrahim, who is also the finance minister, said he will chair a special meeting on the RM170 billion investment from China to ensure that the projects are implemented effectively. - FMT