Experts say less bureaucracy will held Malaysia continue to attract foreign investors.
The United Nations stated last month global FDI flow fell almost 50% in the first half of 2020 because of the economic fallout from the worst health crisis of the century, which had made investors more picky.Nazari Ismail of Universiti Malaya’s Business Strategy and Policy Department said Malaysia should do away with certain rules and regulations pertaining to investments which slow down processes and add to the cost of doing business.
He said globalised companies need flexibility in their operations, and rules and policies that prevent companies from hiring the best workers or obtaining the best input for production will discourage foreign investors.Sunway University economics professor Yeah Kim Leng praised the Malaysian Investment Development Authority for its closer engagement with international business chambers and sharper focus on quality investment in the service sector and high-end manufacturing.
Yeah argued that while top-level government support is crucial for Mida to succeed in pulling in domestic and foreign investments, a conducive operating environment is just as important. Mida has approved 35 Principal Hub projects with total approved investments of RM35.5 billion under the incentive, starting in October 2019. This hub project potentially created more than 2,700 high-value jobs.
but stay away from dirty investments, focus on high paying high tech industries and stop the cheap labour influx