Malaysia remains attractive for investments

KUALA LUMPUR: Malaysia remains an attractive place for investments despite the outflow of funds, said Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar.
"We have strengthened and diversified the structure of our economy although the oil price continues to drop. We've already reduced our dependence on oil and gas revenue. In the past, in terms of oil revenue, it used to make up some 40% of our revenue now it is actually below 30%. So we are less dependent on that," he told reporters at the sidelines of a signing ceremony between Destini Bhd and AirAsia Bhd yesterday.
"We have a number of initiatives to help grow our exports so that we can continue to maintain our trade surplus and our current account surplus as well. We will continue to focus on our fundamentals, it is important for all of us to do our respective parts. There's growth to be achieved here in Malaysia and Malaysia continues to be a good place for investments. I would like to encourage people to continue to do that," he said.
He declined to comment on the 1Malaysia Development Bhd (1MDB) issue except to say that investigations are ongoing and the parties involved should be allowed to carry out their duties without fear or favour.
"I think it's very important for all of us to play our respective parts and roles. As far as 1MDB is concerned, I think there are already two parallel processes being undertaken. One is the Public Accounts Committee (PAC) inquiry into the 1MDB issues that's chaired by Datuk Nur Jazlan Mohamed and the members of PAC as you know, comprises both members of parliament from the opposition as well as the ruling party," he said.
The other investigation is being carried out by a task force comprising Bank Negara Malaysia, Malaysia Anti-Corruption Commission, the police and the Attorney-General.
"I think we must allow those two parts to continue without fear or favour. For the rest of us, it is very important to remain focused on our task at hand. On my part, I will work with the other ministries to help execute the 11th Malaysia Plan (11MP) and I think that's how we need to focus. Play our respective roles.
"It is my request to all Malaysians both in the private and public sectors, whether you are a private listed company or private company, to do our respective parts to help grow the economy, continue to spend domestically within your means and to generate economic activities. Leave it to the respective people to play their parts professionally so that Malaysia can continue to progress," he added.
Commenting on foreign reserves, which dropped to a five-year low (US$100.5 billion) as of July 15, 2015 as well as the weakening currency, Wahid said the country today is better prepared to face these challenges compared with its financial position during the 1997/1998 Asian financial crisis.
"Overall, if you look at our position notwithstanding the reversal of the flows back into US dollars given the growing US economy, given the potential of hike in the US interest rates and not just movement away from the ringgit but also from other emerging currencies, I think the fact that we've been able to sustain at this level speaks well of our improved financial position compared to where we were during the Asian financial crisis," he said.