MIDA expects higher investment inflows with lower ringgit.
20 Jan 2015
The Malaysian Investment Development Authority (MIDA) expects to see more investment inflows riding on the lower ringgit, which will make Malaysia an even more cost-competitive location for business.
Investors from countries, where their currencies appreciated against the ringgit, particularly the United States are expected to invest more in Malaysia as it would be cheaper and more competitive for them to invest here, MIDA Deputy Chief Executive Officer, Datuk Phang Ah Tong said after the opening of the seminar- “Investment Opportunities in the Renewable Energy Sector in Malaysia, organised by MIDA and the ASEAN Korea Centre in Kuala Lumpur, yesterday.
He said export-oriented industries such as electronics, medical device, aerospace, engineering and machinery sectors as well as resource-based industries such as rubber and furniture with high local content would stand to benefit from the weaker ringgit.
On renewable energy, Phang said Malaysia is keen to raise its energy mix, which currently is dependent on coal, natural gas, small hydro and diesel, adding that the country aims to have 5% of its energy needs from renewable energy (RE) sources by year-end, up from 2% last year. By 2020, Malaysia targets to reach 11% or 2,080 MW of its energy requirements from RE.
Source: NST Business Times and StarBiz