FOLLOWING the results of the 12th general election, there have been some concerns within the community of foreign investors in Malaysia on the country’s future business outlook, especially in states that have experienced a change in political administration.
Over the years, the country’s economy has benefited from the involvement of foreign multi-national corporations (MNCs) which have set up base here to do various kinds of business activities such as manufacturing, assembling, and research and development (R&D).

The government needs to alleviate MNCs’ fear in the political administration changes, by ensuring that business-friendly policies will continue to be enforced and that Malaysia remains a conducive environment to conduct business.

FOLLOWING the results of the 12th general election, there have been some concerns within the community of foreign investors in Malaysia on the country’s future business outlook, especially in states that have experienced a change in political administration.
Over the years, the country’s economy has benefited from the involvement of foreign multi-national corporations (MNCs) which have set up base here to do various kinds of business activities such as manufacturing, assembling, and research and development (R&D).
The conducive business environment, political stability and business-friendly policies have all contributed to positioning Malaysia as one of the top destinations in the region for foreign investors.
In the information and communications technology (ICT) scene, the MSC Malaysia (formerly known as the Multimedia Super Corridor) initiative, has been instrumental in attracting leading tech companies of the world to locate their industries here and undertake research, develop new products and technologies and export from this base.
MSC Malaysia has also become an ideal growth environment for local ICT small and medium enterprises to transform themselves into world-class companies.
In 1996, there were less than 300 ICT companies in Malaysia. The figure has since grown to over 3,000, out of which over 1,700 are MSC-status companies. In 2006, MSC-status companies attained revenue of over RM10 billion.
According to International Data Corp (IDC), ICT spending in Malaysia is expected to grow 9.1 per cent annually between 2008 and 2011. This would translate to 100,000 new jobs and 800 new businesses in the IT sector over that period of time.
ICT spending in Malaysia last year amounted to RM16.75 billion. Malaysia is one of the fastest growing ICT markets in Asia.
Having progressed this far, it would be wise to ensure that the growth momentum continues, despite some changes in the political scenario.
The Government and relevant authorities need to alleviate whatever fears that the MNCs have by ensuring that business-friendly policies will continue to be enforced and that Malaysia remains a conducive environment to conduct business.
As far as the ICT industry is concerned, these factors are of paramount importance if Malaysia aspires to become a global tech hub. More so, as the competition becomes more intense with the emergence of digital economies like China and India.