Saturday, July 24, 2010

Parliament Should Discuss FDI Slide

Politicians from both sides of divide should sit back and take note of the of gloomy economic signs. Both sides should cease all unwarranted, wasteful and senseless political bickering and focus their attention on what they were elected to do - govern and come out with policy responses to address the current economic malaise.

The significant FDI slide and negative net flow should be discussed thoroughly in the parliament. We demand these policy makers to take this matter seriously before this country continues with the perpetual slide.

According to this report:

A nosedive in foreign direct investments in Malaysia in 2009 follows a continued downward trend in FDI, increasingly overshadowed by regional players, noted a United Nations report.

According to the World Investment Report 2010, FDI plunged 81 percent from US$7.32 billion (RM23.47 billion*) in 2008 to just US$1.38 billion (RM4.43 billion) in 2009.
(*Calculated based on exchange rate of US$1 = RM3.20650)

The 2009 FDI is less than half of the annual average FDI inflow between 1995 to 2005, which encompasses the long recovery period following the 1997 economic crisis.

Malaysia's performance also pales in comparison with neighbouring economies like Thailand and Indonesia whose FDI figures did not contract as severely, despite the global financial crisis.

Thailand suffered a decline of US$4.44 billion (RM14.24 billion) while Indonesia saw a more modest drop of US$2.60 billion (RM8.32 billion) in foreign investments in 2009.

The severe dip also places Malaysia in the red for the first time in the last 15 years, with figures for cumulative FDI (see chart right) surpassing incoming investments by about US$1 billion (RM3.21 billion).

The FDI outflow has a serious repercussion on jobs creation, domestic industrial development and broad economic development. If not enough investments are committed domestically, the industrial sectors are going to remain narrow and limited.

Inevitably, the economic structure itself is going to push out brains to find jobs elsewhere, especially in other more developed economies, if they cannot get their desired employment with the right compensation in the country.

The government's effort to attract 70k brains to come back to the country by 2015 will be an effort in futility if this economic bottleneck is not solved.

It is time for policy makers to leave negative, counter productive and superficial politics behind. Instead of spending a great deal of time and resources to promote parochial politics, racist propositions and other self-centred interests, they should put similar efforts to help take this country out of its economic doldrums.

Malaysians of all races should wake up and demand the best out of our politicians or replace them.


Anonymous said...

THis is BN government and UMNO leaders still managed to get inflows.
Beside BN can realign the subsidies to better refect ongoing situations.

Anonymous said...

Dream on dear Khoo. FDI drop is inversely proportional to domestic capital flight.
Without a change in government it will remain unabated.
This is a classic Catch 22 situation. BN cannot change and investors are intelligent.

Anonymous said...

The question is can those in UMNO/BN argue or debate the above? Do they have the materials in them to discuss the case? The likes of Kinabatangan, Seri Gading? Can they discuss economic issue, besides making a fool of them in Parliament? PR lawmakers can debate without doubt but the UMNO/BN lawmakers will definitely create a ruckus to stop the discussion. Sickening is the performance of those from Sarawak and Sabah!

FUCKup said...

Blame it on the NEP,the senile ex-PM autocratic rule and the no-brain UMNO grassroot leaders who make make statement that scares investor away(recently the PM told those flers not to chase away Singapore investor to the Johore state,remember?) and now with the likes of PERKASA and the abettment of the senile mamak ex-PM,matters can only get worse!

Anonymous said...

Kay Peng,

You must be day-dreaming !

Do you in your right mind think BN will allow this ? Even when the Opposition tried to raise these critical and important issues in Parliament, the BN speaker will brushed it as non-issue or of no public importance.

Anyway, how many of the BN lawmakers comprehend basic economics or financial matters to debate such issues ? Be honest.

Most of them know how to shout at their opponents to show their might. These are pea-brained politicians who masquerade as champions of their followers and drawing fat rewards at the rakyat's expense.

Anonymous said...

Even if a Pakatan MP were to move a motion on this drastic FDI drop, the UMNO-dog Speaker will say it is not urgent, not important nor of public interest.
Motion dismissed.

Anonymous said...

With Perkasa,Buang there is no two way flow. Only one way. Foreign is not ding to invest here as the Government is spending time on race issue and locals found that it is harder to do business with Mahatail maling all kinds of comments. Money is better spend in Viet, Cambodia andChina

Anonymous said...

"Malaysians of all races should wake up and demand the best out of our politicians or replace them."

The Chinese (and some enlightened Malays and Indians) have woken up.

By and large the Indians are more concerned about who they want as their leader and not what the country wants. The remaining Malays are so concerned about quotas, their religion , race, skin colour and their Ketuanan that they don't know there nothing left in the coffers for them to get their share of 30%.
They don't even realize they can't find jobs.
If Malays have woken up they would have shunned Perkasa and Ibrahim Ali.

Anonymous said...

I am not surprise with the figures.It is expected! Going forward in 2010 will be another pathetic year.Do you seriously think that by building huge corridors with fantastic infra-structures will attract investors?
Just compare Iskander,I think it has attracted RM18b.How much is foreign? How much is public? Red dot's Marina Bay alone roped in S20b and most are foreign and private.

Anonymous said...

In another country the people would have forced the government to resign or the government itself respectfully resign for its shame - but here our clowns would blame media misreportings, biased western propaganda to destabalise ruling government,dispute vehemently the figures by our old playboy politicians who dont even know what's petty cash. Also those umno warlords in JB chasing away Spore investors!Perkasa chasing away local non-malays talent!civil servants making life difficult for returning talents to get visa/approval, some racists stupid persistent in another may 13 to bully minority submission,mca-mic-ppp-others' legendary golden silence.....Khoo,why is our country so stupid one?

Tpg2Sg said...

This is the story fr my Japanese MNC customer in Johor. This Japanese facotry is producing mobilephone for US market. Few years back, their mobilephone cargo worth few million RM was hijacked while on the way to port for export. It was never found again.

Few months after the incident, Msia’s Trade Minister visited Johor, the Japaneses MD brought up this incident but the minister reply was; my customer should consider hire security gaurd with gun to escort the cargo.

What a joke!

Anonymous said...

The question we should ask is not if we can save the nation. A task we certain can not do as I don't see BN leaving in a peaceful democratic manner. Rather we should be asking, how do we save ourselves?

The malaysian economic engine is about to give out on us. It needs serious overhaul which will only occur over the dead body of BN, AMNO and Perkasa. The Malaysian private sector is effectively dead, most Malaysian private companies actually serve GLC.

I would say, take all your savings out of the country. Keep them in banks in Singapore, Australia, US, UK etc. I mean seriously, if our BN leaders are working quickly to move their assets overseas, we, the common people should do the same. These elite have all their money manager to give them professional advice. And that advice seems to be "Get out!". So what is good for the goose is good for the gander.

Also keeps money in US dollars. In Zimbabwe, they use US dolar as their unofficial currency as their own money is worthless.

Anonymous said...

How do have FDIs if you have racialistic, lazy and pea brain dickheads in Perkasa, Gertak and some NGOs championing to the whole world about rights and grabbing the country wealth WITHOUT doing anything!! In addition, we have a bunch of nothing to do, holier than thou religious bigots telling everyone what one should and should not do as if they are god send and know everything.
Even the local investors went overseas.
The rate the Bolehland is going, we will be below Burma and even Loas real soon.

Anonymous said...

The issue of Football Jerseys is more important
The news of TJ LOw is more interesting
The slogan of 1 malaysia is more challenging

What is FDI as TDM had said "we do not want all of them but we have the rights to choose???

We are choosy lah and we can have all of the FDI if we want too.

True enough, we will wait until there is no hope or pure recalcitrant like TDM.

The good old days will never return " SIANG TANG NIEN"

Anonymous said...

Don't waste time discussing this issue, plan for Next GE13 to change government will be more practical.

Anonymous said...

This colossal illegal ponzi scheme started by Mahafiraun keeps expanding at lightning speed and the money-sucking black hole is growing at the same velocity. Year after year, they spend billions and billions to bribe thousands of branch leaders, divisional chiefs, party delegates, cronies, cronies of the cronies, mullahs, ulamas, and the list goes on.
Now even the relatives, in-laws and wives of polygamous union and even concubines of these thieves are claiming the RIGHT to loot the people dry. No wonder it is THE mother-of-corruption political party. Author Barry Wain sees dim future for the country for the next decade. Can any right-thinking man reach other conclusion?