Comments by Malaysian companies ahead of this week’s infrastructure conference suggest they will take a lead in developing projects in the country.
Leading law firm Zaid Ibrahim & Co says it will be bringing more than 30 Malaysian companies to the conference, noted that the delegation will include “senior decision makers” from industry, government and international agencies.
Malaysian companies have been expanding strongly offshore over the past few years, aware that opportunities for growth at home are limited. Indonesia, already a popular destination for Malaysian plantation and financial companies, is now emerging as a playing field for infrastructure and manufacturing.
Labeling company Komarkcorp announced that it too will be making the move into Indonesia, expanding on its existing offshore operations in China, Singapore and Thailand. It will make a $5 million investment in the country.
“Indonesia is quite stable now and the population there is huge,” noted chairman and chief executive officer David Koh Gak Siong, announcing the five-year program.
In other news in a quiet week as the country celebrated the Idul Fitri holiday, Finance Minister Sri Mulyani Indrawati said growth is likely to come in under the revised budget forecast of 5.8%.
While she said growth was picking up and could reach 6% in the fourth quarter, she pointed to full-year growth of 5.6% or slightly above.
But, she said, government spending was way down on forecasts, with the deficit standing at only Rp6.3 trillion by the third week of October, far below the full-year estimate of Rp42.4 trillion.