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Govt: 40 foreign companies moved overseas in past 4 years

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International Trade and Industry Minister Mustapa Mohamed says the inflow of high-value FDI has negated any impact from the companies that ceased operating here.

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PETALING JAYA: International Trade and Industry Minister Mustapa Mohamed told the Dewan Rakyat today that about 40 foreign companies have closed down and moved their operations to other countries since 2013.

He said this in a written reply to a question from Fong Kui Lun (DAP-Bukit Bintang) about the inflow of foreign investments in the country over the past four years, as well as about companies deciding to move operations elsewhere.

“A drop in sales and demand, as well as the weak market environment are among the factors for companies to transfer their operations to other countries.

“Other push factors include the emergence of new innovations that have replaced existing technologies and products, as well as the rise in manufacturing cost,” Mustapa (BN-Jeli) said, adding that these foreign companies had mainly been labour-intensive firms.

According to him, some of the companies had also cited business restructuring and take-overs by other companies and a drop in raw materials supply aa their reasons for leaving Malaysia.

However, the minister reiterated that the impact from the departure of the companies is minimised as the country continues to receive high-value foreign investments.

“Between 2013 and 2016, some 1,598 foreign investments in the manufacturing sector were approved, with a total value of RM119.5 billion.

“From the total, 705 projects were new projects worth RM64.3 billion, while the other 893 projects valued at RM55.2 billion involve expansion and diversification,” Mustapa said.

He listed some of the major investors as Lotte Chemical Titan, Biocon, Robert Bosch and B Braun Medical Industries.

On that note, Mustapa said that the government is optimistic Malaysia’s competitiveness in attracting high quality foreign investments would be maintained despite the challenging global economic situation.

“This is because of the government’s commitment to enhance and introduce various strategies. This was evident in Budget 2018, which emphasised on high quality investment promotional activities, including allocation for high-impact strategic funds,” he said.

 

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