CONDUCIVEENVIRONMENT: We have the infrastructure, says Muhyiddin
SEOUL: SOUTH Korean companies should explore business opportunities in the information and communications technology (ICT) sector in Malaysia, which is promoting the sector.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said among the ICT areas that the companies could focus on were the wireless and convergence technology.
Another significant growth area, he said, was in the renewable energy sector, where many global manufacturers had established production facilities in Malaysia to produce components, such as solar cells and modules.
"These are new and emerging industries that require modern infrastructure and support facilities, which are available in Malaysia.
"We invite Korean companies to explore the potential in these areas," he said during a meeting with South Korean captains of industry here yesterday.
Muhyiddin said the government's focus on high value-added and capital-intensive industries would also allow more companies from the republic to invest in Malaysia.
"Given South Korea's strength in these areas, especially in research and development, there is good potential for collaboration in electronics, ICT, biotechnology, agro-based products, pharmaceuticals, renewable energy as well as the development of machinery and engineering equipment."
Since South Korea was the global hub for the electrical and electronics sector, their companies should continue to invest and expand their operations in Malaysia, which was recognised as a leading manufacturing centre for many high value-added, electronic components and equipment, he said.
There are more than 300 South Korean companies in the manufacturing sector in Malaysia with a total investment of more than RM15.5 billion.
Among them are Samsung, Kiswire, Donghwa, SK Telecom and Honam Petrochemicals.
"South Korean companies have not only made substantial investments in Malaysia but have also brought with them suppliers and subcontractors that helped build the local supply chain."
Muhyiddin said the government's decision to liberalise 44 services sub-sectors would allow greater participation of foreign investors in sectors such as health and tourism services.
South Korea was the main investor in the manufacturing sector last year with investments totalling RM5 billion.
He said Malaysia had made significant strides in key global rankings, rising from 26th to 21st among 142 countries in the World Economic Forum's Global Competitiveness Report 2011. The World Bank's Doing Business Report 2012 had also ranked the country at 18th place.
Muhyiddin earlier made a courtesy call on Prime Minister Kim Hwang-sik at his office at the Central Government Complex in Jongrohu.