Malaysia Needs To Boost Competiveness To Remain On Investors Radar

KUALA LUMPUR, Nov 25 (Bernama) -- Malaysia will continue to attract more foreign funds but its share of regional inflows is likely to drop significantly if it does not take steps to further boost its competitiveness immediately. Senior Fund Manager of Kumpulan Sentiasa Cemerlang Sdn Bhd, Yeoh Keat Seng said for now, Malaysia will continue to ride along with the rest of Asia in attracting funds inflow from US/Europe because of the region's favourable dynamics. "The largest and fastest growing markets will attract a larger share of funds flows over time. "Currently, Malaysia is behind Singapore and Indonesia is very close behind us, and I will not be surprised if Indonesia can surpass us in terms of attracting foriegn funds in coming years," he said during a talk given in conjunction with the 16th Malaysian Capital Market Summit, here today. Yeoh said the government's initiative through the Economic Transformation Programme must be applauded and regarded as the right move at the right time to transform the economic approach. "If we do not do it now, then we will be left out among our neighbouring countries," he said. "The government must remove long standing protection to force companies to compete rather than perpetually operate on a subsidy lifeline. "Companies have to earn government contracts on competitive tender," he said, adding that it could be done by imposing certain key performance indicators (KPI) on regional expansion. He added that Bursa Malaysia must continue to remain relevant to issuers and international investors. He also believed that more Malaysian companies will choose to list on the Singapore Stock Exchange and Hong Kong Stock Exchange or others where they will get better valuation and liquidity. Yeoh also called on for a tie up with other regional exchanges to gain scale and diversity while continuously developing the regulatory framework to be more attractive to foreigners. --BERNAMA Malaysia