Optimistic about getting more foreign investment
05 May 2023
Local business groups are expecting Johor to continue attracting foreign investments following a strong performance since Malaysia reopened its borders on April 1 last year.
Johor Baru Chinese Chamber of Commerce and Industry (JBCCCI) president Low Kueck Shin said the organisation welcomed news that the state would be getting multi-billion ringgit investments from China.
“Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to China is a success, as the country was able to secure RM170bil worth of investments.
“The investments include RM80bil from China’s largest petrochemical company, Rongsheng Petrochemical Co Ltd, coming to Johor.
“This is a good opportunity for the state to further strengthen its economic growth,” said Low.
He said Johor had always been attractive to foreign investors wanting to expand their businesses.
“We have ample land and Johor is strategically located in the region.
“There is good infrastructure in place and our logistics system includes sea ports which are among the best in the world.”
He said China’s RM80bil of investment in Pengerang showed foreign investors had confidence in the state.
Low highlighted that Johor was ranked top in the country in recording the highest amount of foreign direct investment (FDI), amounting to RM70.6bil in 2022.
“I believe the state will continue to attract more foreign investments, which will help make the local economy vibrant again following the Covid-19 pandemic.
“But the government must make sure that these investments will help benefit the locals, not only by offering employment opportunities but also better wages,” he added.
Johor South SME Association advisor Teh Kee Sin said many local businesses were still reeling not only from the impact of the pandemic and movement restrictions but also from other factors such as increasing costs.
“Some foreign companies have since relocated to other countries.
“Malaysia needs fresh foreign investments, especially as local small and medium enterprises (SMEs) are mainly in supporting industries.
“The new investments can help fill the gap left by the previous investors,” he said, emphasising that SMEs needed foreign direct investments to grow their businesses.
During Anwar’s official visit to China from March 29 to April 1, the Malaysian delegation secured billions in investment commitments from China.
The Prime Minister also met China’s president Xi Jinping and witnessed the signing of 19 memoranda of understanding.
Source: The Star
