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.