Friday, June 28, 2013

Floundering GTP & ETP Leads to Drop in Investor Confidence

The Edge Financial Daily today reported that Malaysia has fallen sharply to 25th position from 10th on the AT Kearney’s 2013 Foreign Direct Investment (FDI) Confidence Index from the previous year even as emerging markets continue to attract FDI.

The report, based on a survey of 300 senior executives of the world’s leading corporations show that while these global corporations may have initially been “attracted” to the Prime Minister Dato’ Seri Najib Razak’s “Economic Transformation Programme” (ETP), such interest has completely fizzled.  The drop is so drastic, that we are now at the bottom of the table of 25 countries.

We are now behind fellow ASEAN countries, Singapore, Thailand and Indonesia, as well as other developing countries such as Poland, Chile and Argentina.

The drastic fall in Malaysia’s FDI confidence has to be strongly co-related with a fall in confidence with the Government’s ability to deliver its transformation promises, which have been in essence, more form than substance.

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