Media Release: UNCTAD Reports Impressive FDI Growth In Malaysia In 2010 Investor confidence has returned strongly to Malaysia.

According to the UNCTAD Global Investment Trends Monitor: Global And Regional FDI Trends in 2010 report, released on 17 January 2011, a total FDI inflow of USD7.0 billion into Malaysia was recorded in 2010, compared with USD1.4 billion in 2009. This is an impressive growth of 409.7 per cent which is the highest recorded in the region as well as among the 153 economies surveyed by UNCTAD.

The UNCTAD figures reaffirm my statement on 11 December 2010 that Malaysia recorded significant inflows of FDI amounting to USD5.4 billion in the first nine months of 2010, based on data released by the Department of Statistics. Malaysias achievement is all the more significant as the UNCTAD report showed that world FDI inflows in 2010 remained relatively stagnant with a marginal growth of 1 per cent to USD1.12 trillion in 2010, from USD1.11 trillion in the previous year.

This achievement is a reflection of increasing investor confidence in Malaysia. This demonstrates investors belief that the Government of Malaysia is able to deliver and successfully implement its economic transformation and reform programmes, as contained in the New Economic Model.

During the ETP Update earlier this month, the Prime Minister announced an additional 19 Entry Point Projects (EPPs) which would contribute almost RM67 billion in investments and create 35,000 jobs. The ETP is going into overdrive with more EPPs in the pipeline.

On the manufacturing front, Malaysia attracted higher levels of investments in 2010 compared with 2009. I recently announced the approved investments in the manufacturing sector of RM47.2 billion in 2010, compared with RM32.6 billion in 2009. Malaysia is also back on the radar of international investors as evidenced by the inflow of foreign funds into Bursa Malaysia since last September. The bourse hit the highest mark on 7 January 2011 at 1,572.21 points.

The UNCTAD numbers clearly negate the claims by certain quarters that the decline in FDI in Malaysia in 2009 was due to the Governments poor governance and endemic corruption. Proactive measures to improve the Government delivery system and reduce the cost of doing business, as well as close collaboration with the private sector contributed to this investment growth in the country. The Government will continue to transform the Malaysian economy to enhance its attractiveness as the preferred investment destination in the region.

To further stimulate the investment environment in the country, MITI has established an Investment Committee which I am co-chairing with YB Senator Dato Seri Idris Jala, CEO of PEMANDU, to monitor, address and resolve cross-cutting investment-related issues in the country. We meet fort-nightly.

I am confident that for 2011 and beyond, inflows of FDI into Malaysia will remain strong.

Ministers Office Ministry of International Trade and Industry Kuala Lumpur, Malaysia 19 January 2011