Local MNCs outbound investment ensures better returns, spurs economy

KUALA LUMPUR: Malaysian multinational companies' (MNCs) outbound investment is crucial and a normal practice to widen their markets in order to earn better returns for shareholders and spur the country's economy, International Trade and Industry Minister Datuk Seri Mustapa Mohamed (pix) said.
Local MNCs such as Petronas, Sime Darby and YTL have been investing abroad, which turned out to be a great investment, promising good returns to their shareholders, he told reporters after officiating the Malaysian Investment Development Authority (Mida) Open Day here, today.
He was commenting on Datuk Seri Najib Abdul Razak's recent visit to the United States.
During the delegation meeting with US President Donald Trump, the Prime Minister said the Employees Provident Fund (EPF) and Khazanah Nasional Bhd planned to expand their investment in the US, where the EPF alone is expected to spend between US$3 billion (RM13 billion) and US$4 (RM17 billion) to support the country's infrastructure redevelopment.
Mustapa said President Trump has proposed an infrastructure development spending of US$1.3 trillion (RM5.4 trillion) involving roads, bridges and highways, for which some of them needed restoration or renovation.
"EPF has been investing abroad, it has invested US$8 billion (RM34 billion) in the US since 2008. Our money has grown over the years and of course, EPF has to look at (more) investment opportunities (abroad)," he said, adding that other Malaysian MNCs such as Petronas and Sime Darby had also been making outward investment for a long time thus.
"So, the plan to increase investment in the US is normal. There are opportunities in Malaysia, but this is a small country and some of the local companies need to widen their investment abroad," he said.
Earlier, in his speech, Mustapa said companies needed to cultivate and manage their intellectual assets (employees), especially in knowledge economy as the availability of the right skill set talents would be a critical enabler in accelerating Malaysia's shift into high value-added, high-technology and knowledge-intensive industries.
"Miti (the Ministry of International Trade and Industry), through Mida and other agencies, has been an active conduit between the industry and academia, bridging the gaps in building talents.
"We want to ensure that our talents have the necessary skills and competencies to advance the country's economic transformation agenda," he said.
Meanwhile, Mida Chief Executive Officer Datuk Azman Mahmud said 57 local and foreign companies involved in the aerospace, chemical, machinery and equipment, electrical and electronics, and logistics and e-commerce industries took part in the career fair at the Mida Open Day.
He said 76.9% of over 7,000 job vacancies offered were for managerial, professional, technical and associate professionals category, while the rest were for semi to low-skilled levels, including craftsmanship and customer service and sales.
"Mida places strong emphasis on being customer centric, as well as doing things that add value," he said. — Bernama