The Star, Saturday 19 August 2006

7.7% annual growth in investments likely

AS the country's gross domestic product (GDP) is expected to grow at an average of 6.3% between 2011 and 2020, total investments are projected to improve 7.7% annually.

To achieve the targets, the Government has outlined several strategies under IMP3. This include attracting foreign direct investment in a more focused approach as well as positioning Malaysia as a major hub for manufacturing and services in the global supply chains.

Besides initiating more trade agreements with regional countries and trade partners, industries are encouraged to liberalise from the present levels of protections, consolidate and strengthen their capabilities.

Meanwhile, government-linked companies should diversify their investments overseas.

To promote outward investments, the Government will encourage banks to support financially, promote more mergers and acquisitions overseas, develop industrial parks abroad and set up offices in targeted countries.

Focus would also be given to sectors with export potential and competitive advantage such as halal food, palm biomass products, oleochemical derivates, machinery and equipment, including engineering support services and biotechnology.

On the operating environment, the Government intends to smoothen the delivery system by introducing a standardised mechanism for various levels of approvals involving the federal, state and local authorities.

This will also be achieved by exempting projects in approved industrial zones from having to apply for planning permits.

Furthermore, grants, funds and other incentives would continue to be reviewed and improved during the IMP3 period.