NEW YORK: Despite the rivalry between the United States (US) and China, the tension in the South China Sea and China’s recent huge increase in investments in Malaysia, the US is still the country’s top investor, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said Malaysia is an independent country and welcomes trade and investments from everyone, adding that the past and present US administrations have always been supportive and traditional allies.
“We have excellent ties with China too. I feel comfortable meeting President Xi Jinping, and I have also met with Premier Li Qiang three times,” he said during a question and answer session at the Invest Malaysia New York event here, organised by Bursa Malaysia.
Earlier on, the prime minister had delivered his keynote address, titled ‘Regaining Malaysia’s Lead in Asia’.
Over 100 representatives from major US companies and fund managers attended the event, as well as the roundtable discussion with Fortune 500 companies held earlier.
“That, to me, places Malaysia in a unique position to utilise and benefit from our relationships with both the US and China,” he said.
Anwar, who is also the Finance Minister, said Malaysia has been benefiting from vast investments made by major US firms, such as Amazon Web Services, Boeing and Intel.
He said Malaysia remains one of the countries with the best infrastructures in the region, and is continuously taking steps to alleviate investors’ concerns such as the ease of doing business, financial procedures and corruption.
In 2022, the US topped Malaysia’s list of foreign direct investments with a net inflow of approximately RM37.8 billion.
Last month, outgoing US Ambassador to Malaysia, Brian McFeeters said US companies have pledged investments totalling RM100 billion in various sectors in Malaysia over the last 18 months.
He said these significant investments are in areas where the US wants to strengthen its presence, namely the electronics and semiconductor sectors, as well as the data centre segment which is a major growth area.
Meanwhile in a Facebook posting, Anwar said he has engaged with 15 United States (US) Fortune 500 companies, including Airbnb, Amazon, Amazon Web Services, Boeing, ConocoPhillips and Kimberly-Clark in his mission to attract foreign direct investments (FDI) to Malaysia.
He took the opportunity to share the Madani Economy framework, supported by the New Industrial Masterplan 2030, the National Energy Transition Roadmap and the 12th Malaysia Plan Mid-Term Review which outlines the direction towards achieving the national development goals.
“I also appreciate the positive feedback and constructive inputs shared by these companies,” he said.
The prime minister, currently in New York to attend the 78th United Nations General Assembly (UNGA), said the US has been Malaysia’s third-largest trading partner since 2015.
In terms of investments, Malaysia’s manufacturing sector received FDIs totalling RM1.84 billion (US$395 million) from the US in the first six months of 2023, resulting in the creation of 1,558 jobs.
“I hope that Malaysia will attract more new investments from US corporate giants,” he said.
Anwar, who is also the Minister of Finance, noted that the role played by councils and chambers of commerce such as the US-Asean Business Council and the United States Chamber of Commerce as a medium between the government and the business community would drive the successful implementation of government initiatives that would ultimately benefit the people.
In a related development, the Prime Minister assured global investors looking to venture into Malaysia that the country is taking necessary reforms and providing a better business environment for them.
Anwar said his government is doing its utmost to rectify past mistakes which saw the country’s progress and socioeconomic development being stymied after decades of progress.
“Ignoring the Covid-19 pandemic years, the two decades before and after 1998 witnessed a significant decline in our average economic growth,” he said in his keynote address ‘Regaining Malaysia’s Lead in Asia’ at the Invest Malaysia New York organised by Bursa Malaysia.
Also present were Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Malaysian Ambassador to the United States Datuk Seri Nazri Aziz, Bursa Malaysia Bhd Chairman Tan Sri Abdul Wahid Omar and Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour.
According to Anwar, the past few years saw investment figures drop compared to the percentage of GDP while new economic resources that could boost growth did not emerge prominently as the economy still focused on domestic activities without fully capitalising on global market opportunities.
Upon taking office as Prime Minister in November 2022, Anwar who is also the Finance Minister, said it was clear that his administration had no choice but to cross the Rubicon and reset Malaysia.
“I prioritised three areas…strengthening our governance, restructuring our economy and paving our future,” said Anwar who was Finance Minister from 1991 to 1998.
He said the transformation that Malaysia needs is mapped out in Madani Economy: Empowering the People, a robust framework to systematically address the structural deficiencies in the government’s fiscal policy and revenue drivers, the country’s economic ecosystem and Malaysians’ well-being.
“The Fiscal Responsibility Act (FRA), which will be tabled in Parliament in October, outlines the principles and fiscal rules to enhance accountability, governance and transparency in fiscal management.”
This will be complemented by other fiscal frameworks such as the Medium-Term Fiscal Framework (MTFF) and Medium-Term Revenue Strategy (MTRS), he said.
Besides that, the prime minister also outlined Malaysia’s National Energy Transition Roadmap as well as The New Industrial Master Plan 2030 in advancing the country’s economy and tapping on new growth areas.
In fact, in the past few months, the nation have seen the early results from the government’s commitment to deliver change to the Malaysian economy and its people.
Citing the Germany-based global semiconductor company Infineon Technologies, Anwar said they have agreed to invest an additional 5 billion euro over the next five years to build the world’s largest 200mm silicon carbide power fabrication plant in Malaysia.
“And of course, there is Tesla. Despite the fierce courting by other regional economies, we rather quickly won over Tesla. Together with that of SpaceX,” he said.
The prime minister said companies like Tesla, Amazon and Infineon are but some of the leaders in global industry that have recently stepped up to be part of this change and put their trust in Malaysia. – BERNAMA
