Despite Malaysia’s low growth in the second quarter of 2020, local and international investors remain optimistic of keeping their investments in the country.
Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the confidence of the business community and investors have been strengthened by the government’s success in tacking the Covid-19 pandemic, the decline in unemployment rate and the government’s commitment via the economic stimulus packages worth RM295 billion, reported Bernama.
He believes that the International Monetary Fund (IMF) and World Bank’s forecast of 6.3% to 7.5% growth in gross domestic product (GDP) for next year also contributed to the positive sentiment of investors towards the country.
“Although this is just a projection, it shows the level of confidence of foreign and local investors in Malaysia and the Perikatan Nasional (PN) government,” he told Bernama following the launch of the National Month Celebration 2020.
“In order to record a positive growth as projected by the IMF and World Bank, we need to accelerate the country’s economy from now onwards.”
He shared that the government remains committed to keeping the country as a competitive investment destination, while still attracting more foreign investors.
And given the strides made by the government, Azmin is confident that Malaysia’s economy will return on a better path next year.
In the Q2 2020, Malaysia saw its GDP contract 17.1% – the worst double-digit quarterly drop registered since 1998 due to the government’s implementation of the Movement Control Order (MCO) to curb the spread of Covid-19.
As of 31 May 2019, the Malaysian Investment Development Authority (MIDA) lured 32 projects to relocate to the country with investments totalling RM17.5 billion.
Of these, 28 projects have been approved, while four projects are still under evaluation.