Review the reasons for the relative lack of investment in Malaysia from countries such as China, 8.7.2007.
DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw presses the Government to review the reasons why some countries such as China have relatively little investment in Malaysia, whereas they invest heavily in the United States and Africa.
Dr Tan comments on the media reports of trade delegations from China, Hong Kong and Japan (led by its Prime Minister) intending to visit the Iskandar Development Area (IDA) 0n 8 July, 2007.
Exchanging trade delegations and encouraging foreign investment are normal activities. Tomorrow, I am going to resume my speech in Parliament, asking the Government to explain the benefits and otherwise of sending and receiving trade delegations since 1990. How much genuine investment has there been in the last 17 years?
We welcome trade delegations from Japan, China and Hong Kong, hoping that they will invest in the country including IDA. We wish that some of the Members of Parliament from Johor will not sing a different tune.
On 6 July, 2007, I began my soeech in Parliament on the debate on the Bill to amend the Promotion of Investments Act 1986. MPs from Johor said that they would not sing a different tune on foreign such as China's investments.
The Bill includes investment incentives approved in the 2001, 2002, 2003, 2004, 2005 qnd 2006 budgets. Malaysia is one of the countries that use foreign direct investment to create active economy, such as bringing in capital, transfer of technology and job opportunities. For instance, there are tax incentives for pioneer status and investment allowance. What is the cost-benefit analysis for such incentives?
According to the Economic Planning Unit, the total foreign investment in 2004 was RM 28.774 billion, 2005 RM 31. 057 billion and 2006 RM 45.993 billion. What were the genuinme investments?
In 2006, 21.8% of foreign investment came from Japan, 12.7% Australia, 12.2% United States (in 2005 28.8%), 9.3% Singapore (in 2005 16.3%), 3.2% United Kingdom, 2.0% Taiwan, 1.1% Germany, 0.4% France and 37.2% others. Clearly, investment from China is negligible.
Tomorrow, I am going to speak more on foreign investments in Parliament. While the Government is promoting IDA, it must review the reasons for the relatively lack of investment from countries such as China, compared with their investments in the United States and Africa. Is Malaysian economic policy a factor?
Dr Tan Seng Giaw