Hard to draw investors with political instability, says ex-minister

Mohd Farhan Darwis Mohd Farhan Darwis Updated 5 years ago · Published on 18 Jul 2020 7:02PM · 3 Comments

Putrajaya must assure investors it is stable as Malaysia’s neighbours in the region were also busy courting these investors, says former finance minister Johari Abdul Ghani. – The Malaysian Insight file pic, July 18, 2020.

WITH its current political instability, Malaysia will find it hard to attract foreign investors, especially in a world battered by the Covid 19-pandemic, said Johari Abdul Ghani.

Johari, who served as the second finance minister under the Barisan Nasional government from 2013 to 2018, said investors are adopting a wait and see attitude when it comes to the current Perikatan Nasional administration. 

“Investors also fear policies are changing too rapidly. For instance, under BN we had the Goods and Services Tax, which the majority of the world uses,” Johari said in a special web interview today. 

“But when Pakatan Harapan took over (in May 2018) they went back to the SST (Sales and Service Tax) system. 

“So investors are scared that investment policies will change when there is change in government,” Johari said the interview organised by the newly relaunched Utusan Malaysia.

PN came to power in late February through defections from the PH coalition, which had governed since May 2018 after winning the 14th general election. 

The Dewan Rakyat sitting this week revealed that PN only has a two-seat majority of 114 MPs in the 222-seat lower house. 

Johari, who is from Umno, said this slim majority worried potential foreign investors. 

“It’s very difficult for investors if the government only has a one or two-seat majority. It’s not stable. 

“Investors don’t like that. They don’t like it when the government changes too rapidly. When the government is stable they will be confident in investing.”

He added that the government must assure investors it is stable as Malaysia’s neighbours in the region were also busy courting these investors. 

“Investors like Malaysia because our people can speak multiple languages and we have strong infrastructure. But they are waiting for stability. 

“In the past we could ask them to wait. But it is no longer possible as our neighbours are also aggressively courting them.” 

He added that as Malaysia’s borders are still closed, the government must pay more attention to developing the domestic food production industry as the country depends too much on imports. 

The industry has multiplier effects that can boost growth in other sectors and create much-needed jobs. 

“We import a lot of our rice and meat when in reality we can produce a lot of our own. The government should focus on developing this industry.” – July 18, 2020.

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Comments

  • Hi Jo, what are you doing these days? True Malaysia need stable government. If BN ruled properly for 60 over years we are in an advanced country by now. Look at Korea, Japan , Taiwan Singapore . They have no to v little raw materials. Look how they've advanced. No slogans like " demi ugama bangsa dan negara" being uttered by their politicians. If you listen to the Excos of Kelantan. Kito nok hok Isle Isle Isle. Look how backward the states is. Mercedes and bonusus are more important than collecting rubbish by the roadside.

    Posted 5 years ago by Zainuddin Yusoff · Reply

  • Stop thinking of self enrichment, be it by means of kleptocracy, nepotism or cronyism stsrt thinking of developing the nation. Not just slogans.

    Posted 5 years ago by Zainuddin Yusoff · Reply

  • I voted for you Jo but people voted for Rina because of your association with the kleptos. I don't blame you. It's the country that's been plundered left right and centre. We have lots of natural resources and fertile land for agriculture. People worked very hard but where are we heading ? I think the slope is still slippery

    Posted 5 years ago by Zainuddin Yusoff · Reply