CONSTRUCTION, manufacturing and retail are expected to draw in the lion’s share of investments this year, said International Trade and Industry Minister Darell Leiking.

The government also wants to renew focus on agriculture to reduce the country’s hefty food-import bill and to create new sources of income for locals, he said.

It will be a challenging year for investments due to factors outside of Malaysia’s control but the government is committed to achieving or improving on its performance from last year, Leiking said.

In 2018, Malaysia reeled in RM201.7 billion in foreign and domestic investments, up from RM200.1 billion in 2017.

A big highlight was how the country managed to get 48% more foreign direct investment (FDI) than in 2017. FDI last year increased to RM80.5 billion from RM54.4 billion in 2017.

“It is going to be challenging because as you can see, in the first quarter of the year, we have gotten negative feedback from people, for reasons only known to them,” the 47-year-old former lawyer told a media briefing on his first year in office.

“But we expect our growth to be the same. I don’t see growth going down badly because our fundamentals are quite good, our people are resilient and this government is going to react to the market when necessary.”

Since taking over on May 9 last year, Pakatan Harapan has had to contend with a stream of criticism and suspicion about its business policies and the picture it presented on the country’s financial health.

The government’s revelations of how scandals, such as the 1Malaysia Development Bhd (1MDB), damaged the nation’s coffers and drove up debt, have been criticised for spooking investors.

Recently, analysts were reported to have said Malaysia is the worst performing stock market in the world because it is “really, really boring”.

But Putrajaya argued that the 2018 FDI haul, of which 57% came between June and December after PH took office, disproved its critics’ claims.

Reviving the economy

The construction sector is likely to get a major boost from the revived East Coast Rail Link (ECRL), which now costs RM44 billion.

With the addition of Negri Sembilan, Leiking said, the 648km rail line will now benefit five states instead of the original four – Selangor, Pahang, Terengganu and Kelantan.

The PH government also hopes that its renewed focus on manufacturing will help Malaysia become a regional economic powerhouse, like in the 1990s, he said.

“We were there but we need to go back to that kind of industry. We know that industry. We have people who know it very well and we have these agencies, companies and conglomerates who can run the high-tech industries.”

Manufacturing was the star performer in 2018, with RM87.4 billion worth of projects approved or 43.3% of all investments.

“Malaysia seems to be a hub for many of these major companies all over the world because they see our big landmass and our security, airports, logistics and our storage is good.”

The government is also putting an equal emphasis on upgrading agriculture so that it can provide more income opportunities, especially for Sabahans and Sarawakians.

“In Sabah and Sarawak, we’re looking at two industries… and the chief minister has high hopes in the agro-based industries, where we can supply our produce to many parts of the world.

“As we move up value chain, in semi-conductors and those kinds of businesses, we must not forget our agriculture business. It is something that many people can participate in with skills already available Malaysia.

“The ministry of agriculture and we can work very closely. YB Sim (Deputy Agriculture and Agro-based Industries Minister Sim Tze Sin) has been instructed to go to China to learn how they upgraded their agriculture industry.” – May 1, 2019.