Anwar: Malaysian FDI Outflow

Malaysian Opposition Leader and KeADILan De factor lately has been mentioned in parliament to debate on the Malaysian FDI- Foreign Direct Investment outflow but has been rejected by the Deputy Speaker Datuk Ronald Kiandee as it was not an urgent matter.

Anwar moved the motion under Article 18(1) of the Standing Orders because he said Malaysia has suffered a negative net-flow of RM9 billion with RM38 billion outflow in FDI as reported in the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2008.

This should be taken serious by parliament member as it deals with the current situation in Malaysia itself. As been stated in Malaysian situation, FDI plays important role in defining Malaysia development movement. The issue must be taken down by all members of government. There is truly needed for serious discussion and also importantly is to seek solution for the matter not just answered on the issue.

"A massive outflow of FDI has been occurring since 2005 and it will cause contraction in the economy, a decrease in gross domestic production and an increase in the unemployment rate" press statement by Anwar itself. Again he stated that The Asean region had an increase of 81.9% in the in-flow of the FDI from RM116 billion in 2006 to RM209 billion in 2007 and Malaysia recorded the lowest in-flow with only 13%.

Anwar said also it was not just a financial crisis but a crisis of confidence to Malaysia because the reports by the World Bank, UBS (an international financial firm) and International Institute of Finance had pointed out that the obstruction of in-flow of FDI into the country was because of its economic policies, including:

>> high requirements and strict regulations, especially in the service sectors;
>> the “mismatch” of training in the vocational schools and universities with the requirements of the industry;
>> high management cost, such as commissions, “which are always linked to corruption”; and
>> lack of transparency in awarding contracts and confidence in the judiciary.

Furthermore, the if was been reported by other organization party which is to be looked by others region as a fact. Deputy Minister of International Trade and industries, Dato’ Liew Vui Keong should not disagree with the statement that Malaysian has been decreased in-flow of FDI. This is because the serious action need to be done pertaining to the problems.