Mustapa: Investors still confident in Malaysia

BATU KAWAN: Malaysia continues to receive a vote of confidence from investors, both domestically and abroad, to establish business presence as well as expanding operations.

International Trade and Industry Minister, Datuk Seri Mustapa Mohamed, said existing investors in Malaysia continued to expand their operations, while at the same time attract new investors.

He said growing market in Malaysia and fast-expanding Asean market had encouraged existing investors to expand operations here and sell products not only in Malaysia but also to the regional market.

Mustapa said Malaysia continued to receive good interest from new investors, especially the Japanese, following the long and strong economic relationship between Malaysia and Japan.

“In terms of realised investments in Malaysia in the manufacturing sector, Japan remains No.1 with investments exceeding US$20 billion,” he told reporters at the official opening of Boon Siew Honda’s new motorcycle production plant here yesterday.

Mustapa said the Malaysian government was committed to ensure continued good growth and attracting more investments to generate job opportunities for the people especially young generation.

“Our policies now is to encourage companies to move up value chain, increase automation, introduce latest and modern technology so Malaysia can become a high-income country by 2020,” he said.

On Boon Siew Honda’s new motorcycle production site, Mustapa said the RM200 million plant was a reflection of investor confidence in Malaysia and provided 1,100 job opportunities for local people.

“For years, the Honda brand has been synonymous with the Malaysian motorcycle industry and it was part of Malaysia’s development success for the past 50 years,” he said.

Mustapa said Boon Siew Honda was also among the major contributors to the national economy.

“Its products are 60-65 per cent local content with engines and components manufactured in Malaysia since 1985 by HICOM-Honda Manufacturing Malaysia Sdn Bhd, a joint-venture company between HICOM Holdings, Honda and Boon Siew,” he said.

On whether Malaysia was providing incentives to help motorcycle companies export, Mustapa said: “We do not have special incentives for motorcycle companies to expand as it was a competitive market.”

He said most of the companies would venture to countries with large population like Indonesia, India and Vietnam to start production rather exporting as it was more cost-efficient.