KL woos foreign investors

KL woos foreign investors

KUALA LUMPUR (AFP): Malaysia is willing to ease restrictions holding foreign investors to minority positions in joint ventures if the projects feature technologies new to the country, a minister was reported saying Saturday.

"Normally, for such projects, the government only allows minority shareholding to foreign investors," International Trade and Industry Minister Rafidah Aziz was quoted saying by the Bernama news agency.

Under a new plan to boost industrialization, foreigners might be allowed major equity in local joint-ventures for a stipulated period if they brought technologies "really new, sophisticated and not available in the country," Rafidah said.

The foreign parties would have to ultimately divest their majority stake to Malaysian firms, as the objective of the plan was to boost technology of local industries, she said.

Such technologies should produce better goods, facilitate technological development, enhance research and development and create more effective marketing systems, Rafidah said.