Malaysia - Investments may see falloff in 2012, says Mustapa

KUALA LUMPUR, Nov 24 — Investments in Malaysia may drop-off next year, , said International Trade and Industry Minister Datuk Seri Mustapa Mohamed in Singapore today.

Bloomberg reported the minister as saying that Malaysia’s investment may soften in 2012 after foreign and domestic investment rose this year from 2010.

Mustapa (picture) also said that exports may grow 8-9 per cent this year.

Malaysia is on an investment drive to hit an average of 12.8 per cent in annual growth in private investment till 2015 under its 10th Malaysia Plan, although investments grew only two per cent on average between 2006-2010.

To hit the growth target, the country would need to generate an average of RM115 billion in private investment annually.

Lim Seng Gim, head of the Finance Ministry’s macroeconomics division said yesterday that  private investment in the country is estimated to hit RM113bil in 2012, compared with an estimated RM94 billion this year as more projects under the ETP and the Iskandar Malaysia strategic development region take off.

Many economists are expecting the ETP projects to help bolster the economy in the face of gloomy conditions in advanced European economies.

So far, some RM15 billion worth of ETP related investments have been committed for 2011 of which 66 per cent or RM10 billion have actually started as at October 15.

Lee Wei Lian

The Malaysian Insider

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