Selayang MP William Leong Jee Keen asked the Senior Minister of International Trade and Industry to state the number of foreign investors who have closed down their business, what is the Government doing to maintain them and how to attract more foreign investors during this Covid-19 pandemic period.
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Deputy Minister of International Trade and Industry Datuk Lim Ban Hong said according to Malaysian Investment Development Authority (MIDA), nine foreign manufacturing companies from the textiles, steel and machinery, chemicals, building materials, electrical and electronics sectors were shutting down their operations in the country from March 2020-May 2021.
Among factors that led to the closures include the contraction in the global economy due to the pandemic, the drop in sales and demand from overseas, rising operating costs, lack of demand for the products as well as the restructuring of operations. Other factors are increased operating costs of the same manufacturer, no demand for products manufactured as well as (implementation of measures) restructuring.
“Nevertheless, Malaysia remains a major investment destination for investors in the region, as the total investment from January to June 2021 rose by 69.8 per cent year-on-year to RM107.5 billion,” he said, adding that foreign direct investments (FDI) surged by 214.9 per cent y-oy to RM62.5 billion.
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SOURCE: Parlimen Malaysia
