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.