Malaysia 'could lose out on FDI'

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17 Mar 2010

Japan's ambassador to Malaysia has warned the country could lose out on foreign direct investment (FDI) if current economic conditions prevail.

Masahiko Horie told assembled journalists today (March 17th) the shortage of manpower in the manufacturing sector combined with the government plan for the removal of a fuel subsidy could limit Malaysia's ability to attract FDI, reports the Edge Malaysia.

During his visit to Penang, Mr Horie said these factors were the pressing concerns of the businesses he had spoken to.

"Since the Malaysian government has disallowed the intake of foreign workers, many Japanese companies are finding it difficult to employ production operators," he said.

Japan is Malaysia's largest source of FDI and Mr Horie suggested other countries would find the same conditions and would reduce investment.

A debate in parliament yesterday saw the opposition leader accuse the government of mishandling FDI and allowing the country's standing to drop, according to the Malaysian Insider.
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