MALAYSIA, which had a new record-breaking year of investments in the manufacturing, services and primary sectors in 2013, was ranked seventh top recipient of foreign direct investments (FDIs) in Asia.
According to the United Nations Conference on Trade and Development’s (Unctad) World Investment Report 2014, Malaysia’s 22 per cent increase of net FDIs, valued at US$12 billion (RM38.52 billion), compared favourably with the nine per cent increase in global FDIs.
Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud, commenting on the report, said investments in the country have been on an uptrend against a backdrop of global uncertainties.
He was confident that Malaysia, which has been placed ahead of South Korea, Vietnam and Taiwan, would be able to make it to the top six.
“We are on track to chalk a double-digit growth (for approved investments),” he said, adding that the efforts of the public-private sector delivery system have been paying off.
Net FDI inflows into Malaysia have grown by US$9.06 billion (2010) to US$12.19 billion (2011), and US$10.07 billion (2012).
The government has recognised the need to shift to high value-added, high-technology, know-ledge-intensive and innovation-based industries to sustain economic growth and Malaysia has been promoting renewable energy, environment management, healthcare, private education and food manufacturing sectors.
Sustainability and inclusiveness are within the New Economic Model and the Economic Transformation Programme.
Unctad head of investment trends and issues branch from
the division on investment and enterprise, Dr Masataka Fujita, said global FDI inflows increased by nine per cent to US$1.45 trillion last year and growth is expected to continue in the years to come.
Asia continues to be a popular FDI region, accounting for 30 per cent of the global FDI inflows.
In terms of regional grouping, the share of Asia-Pacific Economic Cooperation (Apec) countries rose to 54 per cent last year while the Trans Pacific Partnership (TPP) grouping rose 32 per cent and the Regional Comprehensive Economic Partnership (RCEP) accounted for more than 20 per cent of global FDIs.
Fujita noted that the number of investor state dispute settlementcases had increased to a record 56 new ones last year.
The World Investment Report proposes a plan of action for increased private-sector investment in sectors such as infrastructure, food security and climate-change mitigation.
The Sustainable Development Goals (SDGs)that will replace the Millennium Development Goals, point to an estimated funding gap of US$2.5 trillion.
United Nations Resident Coordinator Michelle Gyles-McDonnough was concerned that the level of investment in sectors for SDGs remain insufficient.
Meanwhile, the United Nations will embark on consultations and focus group discussions to achieve the SDGs in Malaysia starting from next week.