The MP for Bangi, Ong Kian Ming had
expressed clearly his views on what needs to be done to reverse FDI flows to
Malaysia. This was expressed in a MalaysiaKini article on 29 March 2021.
FDI inflows refers to investments in
manufacturing and services – not equity flows. Existing MNCs do a periodic
evaluation of their investments in Malaysia. So, it is necessary to be in touch
with them and their Chambers of Commerce. Key requirements include:
·
a
stable investment environment which usually means a stable government and
hence, policy environment;
·
access
to the necessary human capital;
·
various
tax incentives and grants;
·
decent
quality of life especially for their expatriate workers; and
·
for
some, access to the local market.
Malaysia is no longer competitive on a low-cost
basis with the likes of India, Philippines and Vietnam. And hence we have IBM’s
Global Delivery Centre in Cyberjaya closing shop. That impacts 1,000 plus high
skilled workers. It may have a “wave effect” for other MNCs to consider similar
steps. In addition, MNCs who are considering Malaysia as a base will now
re-consider.
IBM Cyberjaya Global Delivery Centre to Close Down On 31 May
Then there are cost “surprises” which
suddenly emerge from regulatory or government agencies – in the form of contributions
or taxes. It requires “attentive care” from MDA, InvestKL or such other agency
to resolve issues.
Procedural and approval processes are another
bane in any government bureaucracy. It takes considerable effort and
imagination to re-tool/ re-figure existing procedures. The objective is to
fast-track approvals and onto implementation.
The MP for Bangi suggested 3 steps to
improve:
I.
Update
guidelines/ goals consistently (and constantly) ；
II.
Consolidation
of existing Investment Promotion Agencies;
III.
Benefits
of FDI made clear for the ordinary rakyat.
There are many more steps that could be
taken but the PN Government is probably not able or willing to implement them
especially when their focus is purely survival!
Reference:
Ong Kian Ming, MP SPEAKS | How to
prevent M'sia from turning into 'Sick man of Southeast Asia', 29 March 2021,
MalaysiaKini
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