Malaysia Moves To Attract More Investments From Indonesia

By Ahmad Fuad Yahya JAKARTA, July 11 (Bernama) -- The encouraging rise in investments by Indonesian companies in Malaysia in the recent years has seen Malaysia increasing its efforts to attract more investors from the republic. Indonesia meanwhile has also become an important investment destination for Malaysian companies. This year, the Minister of International Trade and Industry Mustapa Mohamed has twice led trade and investment missions to Indonesia with one to Surabaya in April and another which began on Sunday. The missions were aimed at increasing bilateral trade and investments between the two countries. Mustapa said the efforts to get more Indonesian investors into Malaysia was also aimed at bringing further balance to the ratio of investments between the two countries which currently favoured Malaysia. He, however, added that the difference in investment ratio between the two countries was beginning to narrow down. Ten years ago, the investment ratio of Malaysia and Indonesia was at 5:1 respectively but it has been reduced to 3:1 in the last few years, Mustapa, who is currently here to also attend the Asean-Latin America Business Forum, told Malaysian journalists. In terms of value, Indonesia's investments in Malaysia in the manufacturing and services sector increased to US$398.6 million last year compared with US$141.7 million the year before. The rising trend in investment value was also seen in the preceding years of 2007 which recorded investments of US$52.6 million, 2008 with US$84.4 million and in 2009 where investment value went up to US$104.4 million. Pointing to this success, Mustapa urged Indonesian investors to see Malaysia as a strategic trade and investment destination although it had a population of 28 million compared with Indonesia's 240 million. He said Indonesia's investments now were concentrated in the hotel sector, golf courses and food processing. Mustapa said the efforts to attract more Indonesian investors to Malaysia would be focussed along three key strategies namely building good relations with the Indonesian media, closer ties with their Parlimentarians, particularly the People's Representative Council and enhancing links and cooperation with Indonesia's Chamber of Commerce and Industry. He said good relations with the local media would be important to correct the wrong perceptions of Malaysia while helping to impart a fresh look at the Malaysian economic climate among Indonesian investors. "More meetings with local media with a focus on business should be held as we want to ensure that the negative views of Malaysia are corrected through the media. "With the provision of a more accurate picture of Malaysia via the Indonesian media, we are bound to attract more investors from the country," he said. Mustapa had a bilateral meeting with his Indonesian counterpart, Gita Wirjawan, apart from meeting up with leading business figures and investors from the republic. --BERNAMA