MALAYSIA ON TRACK TO ACHIEVE TARGETED FDI

JOHOR BAHARU (Malaysia), Dec 19 (Bernama) -- Malaysia is still on track to
achieve a targeted RM20 billion (US$5.8 billion) in foreign direct investment
(FDI) this year despite the global economic downturn, said Deputy International
Trade and Industry (MITI) Minister, Mukhriz Mahathir.

He said the country had shown a positive economic climate with a total FDI
of RM12.6 billion (US$3.67 billion) having been collected until the third
quarter of this year.

"The FDI figure is encouraging as we must take into consideration that
Malaysia is no longer the main country for foreign investors, given the
emergence of new competing countries, such as Vietnam," he said.

Mukhriz was speaking to reporters after launching a forum on "Generating
Technopreneurs In The Era of New Economic Model and Liberalisation", involving
200 Universiti Teknologi Malaysia (UTM) students at the university's campus here
Saturday.

He said that the country was still attracting FDI, especially in the
electrical and electronic, as well as chemical industries.

He also said the government was focusing on attracting quality FDI from
industries that were capital intensive and of high technology with high
value-added.

According to Mukhriz, apart from the potential foreign investors, incentives
are also being offered to existing foreign companies in Malaysia to prevent them
from taking their businesses elswehere.

On another matter, he said the country had to achieve an annual six per cent
economic growth to realise its vision of becoming a developed nation in 2020.

"Hence, the dire need for quality FDI," he added.

On the recent meeting between Prime Minister Najib Razak and local industry
players, Mukhriz said that local companies must also be given priority, in order
to prosper.

"The local players felt that they also need to be given the same incentives
as foreigners, such as tax cuts," he disclosed.
-- BERNAMA