PUTRAJAYA is looking to expedite the approval process for investments and to attract high-tech and high-value investments through the National Committee for Investment (NCI), said Finance Minister Lim Guan Eng.

The NCI will be co-chaired by both Lim and International Trade and Industry Minister Darell Leiking, and has so far approved projects worth RM2.2 billion.

“Rest assured that if you have an investment, bring it to the committee and we will escalate the process,” he said at the NCCCI National Economic Forum today.

Lim said bureaucracy and tedious business processes were areas that warranted attention and needed to be addressed to attract investments, especially in the backdrop of a trade war between US and China.

“The committee co-chaired by Darell Leiking and I demonstrates the government’s seriousness in attracting the highest quality investment that will provide jobs of the future for all Malaysians,” he said.

“We held the first meeting yesterday and the committee has approved three projects with the combined worth of approximately RM2.2 billion.”

The RM2.2 billion investment is linked to a foreign company and two local companies, said Lim, adding that the NCI will hold monthly meetings.

“I think the most critical factor is still bureaucracy. It has to improve to be more efficient, responsive and also up its game,” he said in response to a question on what Malaysia has to change to be on par with its regional peers.

He said bureaucracy and red tape have also earned the displeasure of investors who cannot get processes completed within three months.

“When we look at the numbers, we have to admit that some investments that should come to Malaysia do not do so and what is the reason?” he said.

“Many businesses are already moving and we cannot afford to wait,” he added.

The backlog in approval is not due to incompetent officers. It is caused by several levels of bureaucracy involved, he said.

Hence, the government – through the committee – is looking to cut the process short.

Meanwhile, Lim said Malaysia’s industrial landscape is different with that of Vietnam, a neighbouring country enjoying foreign direct investment.

“We do not want to compete with Vietnam. Let me be very frank here that Vietnam’s industrial structure is different to Malaysia.

“I think we are a bit more advanced in terms of technological development but what Vietnam can offer in terms of its lower cost will definitely attract industries that are labour intensive and focused on cost advantage.

“Whereas in Malaysia we want to see more high quality, high value added, high technology that can give local Malaysians high income,” he said, while explaining that the focus is on industries that are based on innovation, high value and creativity. – August 29, 2019.