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373319
Fri, 07/03/2015 - 06:13
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Minister: Fitch Outlook Upgrade Clears Up Lingering Misperceptions Among Investors

KUALA LUMPUR, July 3 (Bernama) -- Fitch Rating's decision to upgrade Malaysia's outlook to 'stable' from 'negative' will help clear up lingering misperceptions among investors and could further enhance Malaysia's attractiveness as a preferred investment destination. In a statement Thursday, Minister of International Trade and Industry, Mustapa Mohamed, said the upgrade came on the heels of several other reports by independent international organisations, including World Bank and World Economic Forum, that had seen Malaysia continued doing well as the preferred place to do business. "Investors are cognisant of these credible and influential reports. "The latest Fitch rating is likely to give an added boost to our efforts in attracting the high-quality and high-value-added investments that are crucial towards achieving our aim of attaining the status of a high-income economy by 2020," he said. Mustapa said Fitch's decision was especially relevant at a time of uncertainty in the global economy and the ongoing turbulence in geopolitics. Nevertheless, he said, even before the revised rating, Malaysia was experiencing annual double-digit growth in realised investments. "Private investments in 2013 grew by 13.1 per cent and 11 per cent from 2013 to 2014," he said. He said the ministry was striving to maintain the momentum of the past two years, although the world political and economic environment would present additional challenges this year. "All the investments, those approved and implemented as well as those approved but awaiting implementation, represent employment opportunities for talented and hard-working Malaysians," he said. For the first quarter of this year, approved investments stood at US$15.2 billion (RM57.4 billion). (US$1 = RM3.77) Mustapa said Fitch's decision to upgrade Malaysia's outlook was also a strong endorsement of the country's economic fundamentals and the government's management of the economy. "This is also an affirmation of the government's prudent, proactive and pragmatic policies under the Economic Transformation Programme to re-structure and diversify the economy," he said. However, he said, Fitch's decision and the positive reports by other international entities, should not lead to any complacency, given the rising competitiveness globally. "Quite the opposite, actually. They should spur us to fix any shortcomings and enhance our efforts to promote Malaysia as a preferred place for doing business," he said. -- BERNAMA

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