KUALA LUMPUR – In just a year since Datuk Seri Anwar Ibrahim began helming Putrajaya, the prime minister has successfully attracted approximately RM312 billion in investment commitments for Malaysia through 22 ministerial-level trips to 14 foreign countries.
While several economists commend Anwar for his adeptness in securing foreign direct investments (FDI) and signing Memoranda of Understanding (MoUs) with various trading partners, they caution against overlooking domestic issues.
Assoc Prof Ahmed Razman Abdul Latiff, an economic analyst at Putra Business School, acknowledges Anwar’s role in bolstering Malaysia’s business prospects through high FDI values and MoUs.
He said although pledges may not immediately translate into confirmed investments, the larger commitments increase the likelihood of realisation.
“Higher FDIs will ensure the creation of highly paid and skilled jobs, technology transfer and the development of a domestic ecosystem to support investments,” Razman said, adding that consistent efforts are needed to address leakages, wastage and corruption.
While Anwar and the government have maintained economic stability with a low inflation rate (2%), positive GDP growth for three consecutive quarters, a 3% overnight policy rate, and a 3.2% unemployment rate, Razman urges ongoing efforts to improve transparency, accountability and business-friendly practices.
Rome was not built in a day
Meanwhile, Bank Muamalat chief economist Mohd Afzanizam Abdul Rashid said the unity government is trying its “level best” to navigate the “challenging” global landscape, adding that there is hope for the administration to take the Malaysian economy “to the next level”.
However, he noted that challenges to the global economy still exist, and while it is out of the government’s control, it will require time for the administration’s plans to materialise with the journey spanning Anwar’s leadership.
“I think the present administration is trying to juggle a lot of things to be more sustainable and resilient, but focusing on short-term measures is also something they cannot afford to lose out on.
“(Cost of living) prices are high now, that is a fact – especially for food, basic necessities and raw materials.
“It is not easy (to create a balance), and expecting a miracle to happen in one year is perhaps a little bit too much (to ask),” he said.
Afzanizam said Anwar’s good rapport with foreign investors contributed to the investment pledges, affirming that they were very much “real”. However, he reiterated that it would take time to be fully implemented.
Nonetheless, he said economists lauded the investments, as it could create a spillover effect that aids the economy by creating more job opportunities.
Afzanizam also suggested that the government could reduce the bureaucracy and red tape in investing, as expediting procedures for investors will create a better investment experience.
Speaking about Anwar’s recent approval ratings, Afzanizam speculated that the ongoing cost of living and high-interest rate issues could be the main factors that influence sentiments.
The nations Anwar visited on official trips include Brunei, Thailand, Cambodia, the Philippines, Laos, Vietnam, the United Arab Emirates (UAE) and Egypt.
He has also visited China, Indonesia, Türkiye and the United States (US) twice each, and three times each in Singapore and Saudi Arabia.
From the trips, Anwar managed to garner a whopping RM170.7 billion during his trip to Beijing in March, and another RM19.84 billion on his second visit to Nanning in September.
Similarly, Anwar, who is also finance minister, obtained RM4.74 billion in pledges during his first visit to the US. He made another RM63.02 billion on his most recent trip to the Apec Summit in San Francisco.
During his visit to the UAE, Anwar successfully secured an additional RM40.6 billion in investment commitments, with a substantial RM37.8 billion attributed to the Abu Dhabi Future Energy Company. – November 25, 2023
