New Straits Times, 3 December 2007
MALAYSIA's competitive edge in terms of investment flows has been improved by the transformation and reforms of its economic structure, the deputy prime minister said.
Najib yesterday ended an investment road show where he met about 50 top global fund managers, potential investors and Hong Kong's captains of industry.
The road show, organised by ECM Libra Avenue Bhd and Credit Suisse, is Najib's second after the one held in Singapore in May. It is aimed at keeping Malaysia on the radar screens of investors.
At the macro level, Malaysia's growth prospects and the strength of its domestic fundamentals had contributed to resilience and strong mitigating effects in reducing the impact of global downside risks, Najib said.
However, Malaysia has been able to withstand the risks.
"We told them that we were in a better position to weather all these as our economy has diversified significantly. They were very happy with the GLC reforms that we have carried out. However, their only concern is the lack of liquidity in our market which is being addressed," Najib said.
The listing of Sime Darby, whose market capitalisation stood at RM58 billion on the first day of listing on Friday, was a clear example of the dividends that had been reaped from government's systematic and long-term reforms, he said. "It has suceeded beyond our expectations."
Malaysia's gross domestic product (GDP) has continued to strengthen from 5.5 per cent in the first quarter of the year to 5.8 per cent in the second quarter and 6.7 per cent in the third quarter.
For the first nine months of this year, the economy grew by six per cent and Najib said the growth target of six per cent for this year was on track.
"With this sustained strong growth, Malaysia's economic fundamentals continue to remain strong," he said.
There were also questions relating to Malaysia's growth corridors, especially the Iskandar Development Region (IDR).
"They want to see things on the ground but they must realise that it will take time for this to be implemented. However, we told them that there would be significant developments by the middle of next year," Najib said.
The fact that Hong Kong Chief Executive Donald Tsang personally made a request for Kuala Lumpur to assist the city in the development of Islamic finance was clear proof of a greater confidence in Malaysia.
Najib, who called upon the former British colony's leader at Government House on Friday, said Tsang raised the matter and he had given him a positive reply.
Malaysia, the world leader in Islamic banking, would have no problem sharing its expertise with Hong Kong.
"Even the fund managers took note that we are the world's leader in this system. We are the only country that can offer a whole range of Islamic financial services and products, including Islamic bonds. Sixty-six per cent of the Islamic bonds are raised in Malaysia and we are in the best position to help Hong Kong," Najib said.
Those in his entourage included Second Finance Minister Tan Sri Nor Mohamed Yakcop, Bank Negara assistant governor Datuk Lillian Bee Liang, Securities Commission executive director Datuk Kris Azman Abdullah, Khazanah Nasional Bhd managing director Datuk Azman Mokhtar, AirAsia Bhd chief executive Datuk Tony Fernandez, Boustead Group Holdings managing director Datuk Lodin Eok Kamaruddin, Genting Berhad Group chairman Tan Sri Lim Kok Thay, Sapura Group president and chief executive Datuk Seri Shahril Shamsuddin, KL Kepong chief executive officer Datuk Seri Lee Oi Hian and ECM Libra Avenue chairman and chief executive Datuk Seri Kalimullah Hassan.
Nor Mohamed, meanwhile, said that part of the objective of the road show was to create regional champions in Malaysian companies, both GLCs and non-GLCs.
"For every MAS (Malaysia Airlines), there is AirAsia, for every Telekom, there is Maxis and Digi."
Nor Mohamed said the success stories of Malaysian companies should be told for stronger growth and development.
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