Paris, Nov 6 – Malaysia welcomes more investments from France, particularly in new growth areas in high-technology, high value-added, knowledge-based and skills-intensive industries which provide high-income jobs, said Deputy Prime Minister Tan Sri Muhyiddin Yassin.
He said given the strong level of French technological expertise and innovative culture, Malaysia believed that there were many opportunities for investments by the French companies, especially in a number of key sectors in which France was known to have excelled, such as the aerospace, motor vehicle, machinery and chemical industries.
Speaking at a roundtable meeting with French industry captains, Muhyiddin said France continued to be Malaysia’s important trading and investment partner with total trade amounting to US$3.54 billion (RM11.23 billion) for January to August this year.
“The investment and economic relationship between France and Malaysia is a key pillar in our bilateral relationship. In 2012, France was Malaysia’s 16th largest trading partner with total trade of US$6.02 billion (RM19.10 billion).
“France is ranked the 14th largest foreign investor in the manufacturing sector in Malaysia with investment of over US$1 billion (RM3.17 billion).
“The French investments are in major sectors like petroleum and petrochemical, machinery and equipment, chemical and chemical products, transport equipment, and basic metal products,” he said here Tuesday.
Muhyiddin said the Malaysian government would continue to pursue pro-business, prudent and pragmatic policies to ensure that the nation’s investment climate remained attractive for businessmen to not only conduct their business activities but also expand and diversify their existing operations.
“It is my hope that through our discussions today, you will be further encouraged to consider having a presence in Malaysia to cater to the Asia-Pacific and global markets.
“I would like to invite you to visit Malaysia and explore the business opportunities and facilities available. We are committed to ensure that investors’ needs in Malaysia are met,” he said.
With a stable economic and political environment, good infrastructure and also proximity to the large Asean and Asia-Pacific markets, the French companies would find Malaysia to be a prime location for their businesses, he said.
On Malaysian economy, Muhyiddin said he was confident it would remain resilient, underpinned by the comfortable level of reserves, strong domestic consumption, low unemployment rate and healthy inflows of foreign direct investments.
“Approved investment for the first six months of 2013 saw an increase of 29.9 per cent to US$31 billion (RM98.36 billion) compared with the same period in 2012. The government is confident of surpassing the US$53.41 billion (RM169.47 billion) in 2012,” he said.
Muhyiddin said the ‘Services Sector Master Plan’, which outlined strategies, measures and identified potential sub-sectors for development, would be introduced in 2014, to further encourage the growth of the sector.
He said through this new initiative, Malaysia’s economy was projected to grow at a stronger pace of five per cent to 5.5 per cent, which would be driven by private investments expanding at 12.7 per cent and private consumption at 6.2 per cent.
“In supporting the growth of the services sector, the Malaysian government is increasingly liberalising the sector as this will be a key driver for our growth.
“To-date, the government has liberalised 45 services sub-sectors which include tourism services, healthcare, education, business services and professional services,” he said.
Muhyiddin said the services industries, where Malaysia has emerged as a strong leader included regional establishments, tourism, health services, Islamic finance, research and development activities, education, logistics and business services.
“These industries can be an avenue to further enhance bilateral investment. I urge French companies to explore some of these opportunities highlighted,” he said.
Malaysia’s commitment and continuous response to the ever-changing needs and sophistication of the global market had been recognised by institutions ranking global investment locations, he said.
“The World Bank 2014 Report placed Malaysia in sixth position for Ease of Doing Business, a jumped from 12th within a year. This is the country’s highest position ever attained since the World Bank started compiling the annual ranking in 2005.
“The IMD World Competitiveness Year Book 2013 placed Malaysia among the top 15 of the world’s most competitive countries. Malaysia registered commendable improvements in the economic efficiency, business efficiency and government efficiency parameters,” he said.
– Bernama
