The Southeast Asia region, which has a combined gross domestic product of $2.8 trillion, is seeking ways to withstand the impact of a trade war that has widened beyond the US and China.
Sunday 14, July 2019
Malaysia expects to beat its approved investments target this year by working with, rather than competing against, its neighbours, reported Bloomberg.
Abdul Majid Ahmad Khan, the Chairman of Malaysia Investment Development Authority, said that the Southeast Asian country has already reached 47 per cent of its full-year goal of MYR 113.5 billion ($27.6 billion) in the first quarter, with the following two months showing increases compared to 2018. The target is a drop from the MYR 201.7 billion achieved last year.
“We do not want to be competing or pinching from each other, we want to complement each other, each country has its own niche and strengths. that is the ecosystem we are working on,” Ahmad Khan said.
Malaysia borders regional giant Indonesia and manufacturing stronghold Thailand, so it mustn’t directly compete with them, instead, the country will seek to draw in higher-technology investments in sectors including medical devices, aerospace, and biotechnology, added Ahmad Khan.
Malaysia will position itself as a regional supply hub, taking advantage of its location near maritime routes like the Strait of Malacca that connects India to Southeast Asia to China. Malaysia boasts of many ports, a growing infrastructure network and robust rule of law which makes it an attractive jumping-off point for multinational companies.
The country seeks to attract investors fleeing trade tensions by offering incentives, simplifying processes and ensuring returns.