Trade & Investment
From The Report: Malaysia 2014
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Already one of the most trade-oriented economies in the world and an established regional leader in attracting foreign investment, Malaysia now aims to compete with Singapore as an alternative regional trade and investment hub for rapidly developing ASEAN. Although it boasts a liberal investment environment, foreign investment is restricted in certain sectors, especially retail, banking, agriculture and energy. The government is working to persuade multinationals to locate in Kuala Lumpur with a target to attract 100 firms from the Forbes 2000 list to invest in the Greater KL area by 2020. Negotiations for the Trans-Pacific Partnership have been ongoing since 2010, but have been delayed by disagreements between the various economies involved. However, a text could now be concluded by the end of 2014. Likewise, the ASEAN bloc’s integration process has significant momentum, and, with its well-funded banks and deep corporate equity and bond markets, Malaysia is well positioned to play a greater role in the entire region’s development. This chapter contains an interview with Anifah Aman, Minister of Foreign Affairs; Ratan Tata, Chairman Emeritus, Tata Group; Le Luong Minh, Secretary General, ASEAN; Zainal Amanshah, CEO, InvestKL; and Wan Saiful Wan Jan, CEO, Institute for Democracy and Economic Affairs. It also contains a viewpoint from US President Barack Obama.

Articles from this Chapter

Overview

Further steps forward: Continuing with policies to boost foreign investment and strengthen trade ties
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Already one of the most trade-oriented economies in the world and an established regional leader in attracting foreign investment, Malaysia now aims to compete with Singapore as an alternative regional trade and investment hub for the rapidly developing Association of South-East Asian Nations (ASEAN) bloc. For a growing number of multinationals, Malaysia serves as both a regional administrative centre and a middle or final step in production chains that begin in lower-wage ASEAN countries and lead…

Analysis

Deal makers: Negotiations with the EU are in the spotlight
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Malaysia used to benefit from the EU’s generalised system of preferences (GSP) scheme, which offers tariff reductions on exports to developing countries. However, the World Bank’s decision to award the country upper-middle-income-nation status ended its eligibility for these lower levies in January 2014. While EU representatives are confident a new free trade agreement (FTA) will deepen economic integration between its member states and Malaysia, local business representatives have questioned…

Interview

Neighbourhood watch: OBG talks to Anifah Aman, Minister of Foreign Affairs
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Interview:Anifah Aman What effects will increased ASEAN integration have on the geopolitics of the region? ANIFAH AMAN: Greater integration would mean a more resilient and stronger ASEAN, which would lead to greater regional peace, stability and prosperity. It would be positive for the region as a whole for a number of reasons. Firstly, the main aim of ASEAN integration is to ensure higher standards of living, as well as social progress for our peoples. It is only through further connectivity…

Viewpoint

US President Barack Obama on the prospects for growth in the region
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Over the next five years, nearly half of all economic growth outside the US is projected to come from Asia. That means this region is vital to creating jobs and opportunity not only for yourselves but also for the American people. And any serious leader in America recognises that fact. And because Asia is home to more than half of humanity, it will largely define the contours of the century ahead – whether it’s going to be marked by conflict or cooperation, by human suffering or human progress.…

Analysis

Setting targets: Government development plans steer investment flows
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To understand Malaysia’s criteria for recruiting foreign investment, one has to understand something of the country’s tradition of development planning. Malaysia avoided Asia’s post-war wave of communism, but the nationalist government has a similar-sounding tradition of crafting five-year plans. Although short of real central planning, these development plans set goals forgovernment, public services and the business sector, and since much of the business sector is government-owned or dependent…

Interview

OBG talks to Ratan Tata, Chairman Emeritus, Tata Group
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Interview:Ratan Tata What factors are currently driving increased trade between India and Malaysia? RATAN TATA: While bilateral trade is at an all-time high, owing to geographical proximity as well as strong social and cultural ties, the potential has yet to be fully realised. Over the last five years Malaysia’s share of India’s total exports has fallen from 1.9% to 1.3%, increasing at a five-year compound annual growth rate (CAGR) of 7%, whereas India’s overall exports (to all countries)…

Interview

OBG talks to Le Luong Minh, Secretary-General, ASEANOBG talks to Le Luong Minh, Secretary-General, ASEAN
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Interview:Le Luong Minh What challenges do ASEAN countries face before inaugurating the Economic Community in 2015? LE LUONG MINH: We have already accomplished many of the tasks on the ASEAN Economic Community (AEC) Blueprint and intend to track remaining priorities via the AEC Scorecard system. While we are currently at a healthy implementation rate of 80%, as we approach the 2015 deadline, enhancing the implementation of these measures will become more critical. By 2015 all ASEAN member…

Analysis

Towards a single market: Moving to the next stage of regional integration
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As chair of ASEAN for 2015 Malaysia is expected to announce the adoption of the ASEAN Economic Community (AEC) – even if not technically complete – highlighting its own progress in liberalisation to give new impetus to the next stage of regional integration. Progress The latest scorecard on the adoption of AEC measures from the 10-member group shows only two-thirds of the targets have been met. The scorecard does not show compliance at the country level or explain the reasons for the…

Interview

OBG talks to Zainal Amanshah, CEO, InvestKL
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Interview:Zainal Amanshah How does Greater Kuala Lumpur (GKL) as an investment destination fit into the context of the Economic Transformation Programme (ETP)? ZAINAL AMANSHAH: The results of the ETP and Government Transformation Programme (GTP) have done much to convince local and international investors that Malaysia is serious about its transformation. Within the ETP there are 11 sectors and one location that make up 12 National Key Economic Areas (NKEAs). The one location – GKL –…

Interview

OBG talks to Wan Saiful Wan Jan, CEO, Institute for Democracy and Economic Affairs
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Interview:Wan Saiful Wan Jan To what extent does Malaysia need to re-evaluate its economic role prior to the creation of the ASEAN Economic Community (AEC) in 2015? WAN SAIFUL WAN JAN: Malaysia used to hold a key position in the Non-Aligned Movement before the leadership decided to play a bigger role in ASEAN. Unfortunately, in ASEAN our leadership role is gradually declining. In terms of the economy, we are not growing or opening up as fast as we can, and integrating the economies of ASEAN…