KUALA LUMPUR, June 14 – Malaysia’s foreign direct investment (FDI) this year will exceed the RM29 billion figure recorded last year, says
International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said the forecast was backed by the impressive FDI figures amounting to RM11 billion recorded in the first quarter of this year.
“We hope we will be able to achieve last year figure,” he told reporters at the release of the Malaysia International Trade and Industry Report 2010 here today.
Asked on the ministry’s role in handling investments that involved environmental issue, Mustapa said the government was very concerned on the people’s safety before any project was approved by the Malaysian Investment Development Authority (MIDA).
He said new investments must go through various processes especially the environmental impact assessment under the Department of Environment (DOE).
“Even after a project has been approved, the DOE will monitor it on a regular basis,” he said.
Meanwhile, Mustapa said the corporatisation of MIDA, which would provide the organisational flexibility to attract and retain human capital, would be completed by August.
He said the government intended to rename the post of MIDA director-general to chief executive officer as part of the corporatisation exercise.
“The corporatisation of Mida is not just cosmetic changes but it will have more power to respond faster to investment applications and complaints,” he said.
On the impact of subsidy rationalisation on inflation rate and economic growth, Mustapa said Malaysia would gradually reduce subsidies which would cause a slight increase in inflation rate.
He said Bank Negara was doing an excellent job in managing inflation.
Malaysia’s inflation rate rose to a 24-month high of 3.2 per cent year-on-year in April after a three per cent increase in March.