KUALA LUMPUR: Turning away foreign direct investment (FDI) from China, as suggested by the opposition, makes no economic sense to the country, Prime Minister Datuk Seri Najib Razak said today.
He said such near-sighted approach to the country's economy would only put Malaysia in a bind.
"Allow me to dwell on the state of foreign direct investment, with special reference to the government’s stand on Chinese investments into Malaysia, which has been increasingly politicised and blown out of proportion.
"China is the world's second-largest economy and a trading nation that is looking increasingly outwards. So it makes no economic sense for Malaysia to turn away Chinese FDl, as some politicians are suggesting," he said before launching the National Chamber of Commerce of Industry of Malaysia Economic Forum 2017 today.
He added that such a myopic and narrow-minded view betrays a fundamental misunderstanding of economics, which would only spell doom for Malaysia.
Najib backed his argument with a report from the Statistics Department for the first quarter of 2017, which shows that investment from China represents merely 2 per cent of total FDI stock In Malaysia.
"Let me also make it clear that the government will not compromise the country’s sovereignty one inch.
"They are scaremongering and spreading lies for their own selfish political reasons. They do not have the good of Malaysia and its people at heart."
"The same opposition politicians who warn about Chinese investment are the same politicians who want to abolish GST (Goods and Services Tax) with no answer at all about how they would find the RM41 billion in revenue that GST brought in last year.
China is Malaysia’s largest trading partner, while Malaysia is China’s eighth-largest trading partner, and the second-largest in Asean.
Najib also said the government would be fair in steering the country towards becoming a better nation and better future.
"We will not be a populist government for the sake of saying things just to win favours.
"But we don't mind you supporting us in the next election," he said with a smile on his face, which drew laughter from the crowd.
Najib also assured the participants in the forum that the government would be open to engagements and consultations which would be taken into consideration for the 2018 Budget.
The situation outside his office, he said, was like a "fish market" as many people had come to meet him personally with high hopes.
"I am worried that I may not be able to realise everybody's expectation. When you walk through the door of the prime minister's room, they expect what they want to be approved.
“But this is the challenge I face as prime minister. I will not shirk from my responsibilities and will execute them the best I can for those who still want me to lead this nation,” he added.