KUALA LUMPUR – Malaysia’s Domestic Direct Investments (DDIs) should be just as aggressively promoted as the country’s Foreign Direct Investments (FDIs).
Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy), said that both investments are just important to bolster the country’s economic growth.
He stated that as both DDIs and FDIs are complementary to one another, it is important that the country finds the right balance between them.
Speaking at the ‘How to Revive Domestic Direct Investment?’ forum by the National Chamber of Commerce and Industry of Malaysia (NCCIM), he added that Malaysia intends to continue collaborating closely with the private sector to develop a business environment that is more hospitable and efficient for the domestic and foreign investors.
“The government will continue to engage and open discussions to gather constructive feedback from the business and investment groups,” he added.
Additionally, Mustapa stated that the goverment recognises that there is a need to increase private investments in order for Malaysia to achieve the status of a high income nation by 2025.
He asserted that private investments are essential to driving a sustainable economy after the COVID-19 pandemic.
Prior to the pandemic, there was a 4.8% per annum growth in private investments from the year 2016 to 2019. The figure tumbled by 11.9% in 2020 and recovered moderately by 2.6% last year.
Also in 2021, private investments make up 15.6% of the country’s overall gross domestic product.
“The objective is for private investments to grow by 3.8% per annum under the 12th Malaysia Plan, contrast to the 1.2% per annum in the 11th Malaysia Plan,” he explained.
For that purpose, Mustapa stated that the government is looking to expand and implement policies that would enable Malaysia to achieve its economic potential over the medium to long term.
He added that the 12th Malaysia Plan seeks to relaunch and revitalise Malaysia’s socio-economic development for sustainability and prosperity over the long term while at the same time improve on the wellbeing of Malaysians.
Furthermore, the government had also adopted the National Investment Aspiration to rejuvenate the country’s investment climate though implementing a comprehensive strategy to improve the investment ecosystem that is in response to emerging trends while fulfilling the evolving needs of DDIs and FDIs investors, he continued.
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