KL to up overseas investment

KL to up overseas investment

KUALA LUMPUR (AFP): Malaysia's government is to encourage greater investment overseas amid greater liberalization of newly developing and emerging economies, a government report said.

Malaysia's investments overseas jumped by 40 percent year-on- year to 6.6 billion ringgit (US$2.64 billion) last year, due partly to its entry in new markets, the international trade and industry ministry report said.

"Malaysian investors should take advantage of opportunities in areas where they have the expertise, especially in telecommunication, construction and infrastructure development," said the report by trade and industry minister Rafidah Aziz.

Fifteen pacts were signed last year between Malaysian enterprises and foreign firms for joint ventures in infrastructure development, manufacturing, power generation and information technology.

These investments were mainly concentrated in Singapore, which took up 30. 3 percent, Hong Kong 9.5 percent, the United States 8.9 percent, Australia 8. 2 percent, the Philippines 8.0 percent, Britain 7.5 percent, China 4.8 percent and Indonesia 4.5 percent.

Investments in South Africa jumped 51 percent to 68.9 billion ringgit last year due to the liberalization of its economy.

The ministry said Malaysia was making a strategic shift in its next phase of industrial development as it shifted out of labor- intensive into capital-intensive industries.

In terms of investment inflow, that shift had not dampened the amount of funds coming into the country, Rafidah said.

"In fact, new applications to set up operations here in the first four months of the year amounted to 14.57 billion ringgit," Rafidah said.

"These figures are the real indication of interest," she added.

The data compared favorably with the 26.9 billion ringgit in proposed total capital investment for the whole of 1995, up from 24.4 billion ringgit in 1994, she said.

Japan led the list of investors heading towards Malaysia, Rafidah said.