MALAYSIA can still cater to foreign direct investments (FDI) but should not be dependent on them for its economic and industrial growth, said Dr Mahathir Mohamad.

He said industries should take advantage of locally produced raw materials to churn out international products.

Although Malaysia is the biggest supplier of gloves in the world, it has missed the opportunity to become the biggest producer of other rubber products in the world, he added.

“We make tyres for motor vehicles, but supply only a small number,” he said on his blog.

“Perhaps the quality does not meet the needs of tyres for different uses, but we can set up big research laboratories (to do so).”

The former prime minister said besides tyres, there are hundreds of other rubber products that sell by the millions, and Malaysia needs to look into them in a big way.

Malaysia is unable to attract FDI as well as before, when the country was able to offer relatively cheap labour and tax incentives, he added.

“Other countries offer cheaper labour and better incentives now. It is time for Malaysia to find other ways to develop its economy.”

The Langkawi MP said some of the most successful developments took place in China, Japan and South Korea.

“These countries promote FDI, but they are less dependent on it. Instead, they go into industries that were once monopolised by developed nations.”

Malaysia must take advantage of being one of the largest palm oil producers, he added.

“We produce palm oil, but largely export the oil raw. It is time we add value to our palm oil exports.

“It is not necessary that we go big only when we have the raw materials. We can import raw materials, or parts and components and re-export them as finished products.”

He said the most important thing is to “go big”, and corporations must be locally owned or mostly locally owned.

“We need to master electronics. We have a microchip producer – Silterra.

“Investments in microchips are big and the government can help. Today, South Korea and Taiwan monopolise this industry and the returns are very big.

“If we go into big industries and dominate the market, much of the returns will accrue to Malaysia.” – April 8, 2022.