Jun 22, 2010
Foreign Investment Plunged 52%!
In its annual industry report, the ministry said the 2009 foreign investment level was "encouraging" amid the global slowdown, accounting for about 68 percent of total investment in the manufacturing sector.
Overall, it said total approved manufacturing investments fell 48 percent to 32.6 billion ringgit ($10.2 billion) but still above its official annual target of 27.5 billion ringgit ($8.6 billion).
Trade Minister Mustapa Mohamad said the government is targeting 40 billion ringgit ($12.5 billion) in total approved manufacturing investments this year, up 22.7 percent from 2009.
However, for the first four months this year, total approved investments reached only 7.1 billion ringgit ($2.2 billion).
Mustapa insisted the 2010 target might still be reached.
"It is doable," he told reporters Monday. "Normally things move a bit sluggishly in the first half but as the year goes on, it will gather momentum. We already have a few very sizable investments in the pipeline." He didn't give details on the planned investments.
The report said total approved investments in services also shrank by 23 percent on-year to 38.7 billion ringgit ($12.1 billion), with foreign investments in the sector down 40 percent on-year to 3.3 billion ringgit ($1 billion).
Full Report from Bloomberg HERE.