PUTRAJAYA, Aug 13 (Bernama) -- The approach in implementing the Foreign Direct Investment (FDI) policy has to be changed to tide over with the uncertainties in the global economy, former Prime Minister Tun Dr Mahathir Mohamad said Thursday.He said the change was inevitable as Malaysia could no longer compete with neighbouring countries, particularly in terms of wages and land lease, despite enjoying political stability and social well-being.
"The government should not merely focus on efforts to woo as much foreign capital as possible but should also tap skills and technology from foreign investors.
"It should buy or borrow foreign technology to produce goods for export. By doing so, the money will remain in the country and our own people can hone their skills and upgrade their capabilities," he said when delivering a talk entitled "Strategic Leadership For The Future" here today.
The one-day programme organised by the Higher Education Leadership Academy was opened by Higher Education Minister Datuk Seri Khaled Nordin.
Dr Mahathir said the current FDI policy was to invite investors to build factories and export the products.
"Then we claim they are our exports but actually they are not. The goods are the foreign investors' products but its good for the country's economic performance.
"But the FDI in Japan and South Korea is...they acquire foreign skills and technology. They not only build and run factories but also produce goods and make profit," he said.
Dr Mahathir said the government should also provide incentives, including financial assistance, to local companies using technology or skills from foreign investors to expand.
"This is the approach practised in Japan and South Korea. They help local companies using skills and technolgy from foreign investors, thus contributing to their nation's progress," he added.
tunku : it is time to change the FDI policy as what Tun Mahathir said.we need foreign skills and technology to be the best player in this region.we can't compete with cheap labour and land lease with our neighbours any longer such as indonesia and thailand but if we have the skills and technology we will have the advantage and be the best choice for FDIs.
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1 comment:
Yang Amat Ariff Tun has got it wrong. It is the local Malaysian investors who should be given incentives to invest in this country. When that happens you do not have to promote foreign investments. The foreign investors on seeing local investors investing in their country will come in droves.
Investors from First World countries make money in the Third World and keep it in their own countries i.e First World countries. We in the Third World make money in our country and export it to the First World countries.
Capital flight is our problem. I hope that our new PM will take heed and try to run this country in accordance with the constitution and create an environment in which not only our citizens will keep their money in this country but foreigners will come here in droves and have the confidence to keep their money with us. Ramalx
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