Nanyang Siang Pau, Editorial, 09-06-2014

There have been delicate changes in the investment environment in Southeast Asia of late. Last month, anti-Chinese demonstrations erupted in Vietnam resulting in major damage to enterprises set up by investors from China, Taiwan, Singapore and Malaysia. It also dented the confidence of foreign investors. Subsequently, in Thailand, the military staged a coup and seized power. As the nation is now under military control, the future is still fluid. The political upheavals have also affected the confidence of foreign investors. As such, many investors from China and Taiwan are casting their eyes on Malaysia in search of investment opportunities.

At the recent Malaysia-China and Malaysia-Taiwan seminars on business prospects, the representative of Chinese and Taiwanese investors commended the favourable investment environment in Malaysia which is a big attraction to Chinese and Taiwanese enterprises. ACCCCIM Deputy President Datuk Ter Leong Yap said that Malaysia offers the best location for foreign investors to make inroads into the Southeast Asian market because of its political stability, well developed legal system, extensive educational and multicultural social environment.

Mr Li Zhongping, President of the Association of Chinese Entrepreneurs in Malaysia, said Malaysia has been the first choice of Chinese investors wanting to set foot in Southeast Asia because of its favourable geographic location, beautiful natural environment and well developed legal system. Another important factor is the six million Malaysian Chinese in this country who are able to speak Chinese that still follow many of the Chinese customs and traditions which they find comfortable and endearing.

However, he was frank to point out the many problems faced by foreign investors which include manpower shortages, unpredictable labour law, poor security, and laborious application procedure for visas and work permits. He hoped that the authorities can take such problems seriously and resolve them as soon as possible.

One of the biggest Chinese investors in the telecommunications industry of our country is Huawei Technologies (M) Sdn Bhd which sees the strategic value of Malaysia in its global set-up. Malaysia is the testing ground for its foreign strategies and its global training centre as well. Huawei is planning to build a Regional Data Hosting and Logistics Centre in Iskandar Malaysia. It has also located many of its major overseas departments in Malaysia and uses Malaysia to service its clients in the Asia Pacific Region. It has 1,900 employees, 75 per cent of whom are locals.

Huawei is an outstanding Chinese investor in Malaysia. The presence of the Chinese telecommunications giant shows that Malaysia has an unique investment environment that has attracted it to set up its regional base to service the entire Asian Pacific Region. Our Government should take full advantage of the current favourable conditions to attract investors from China and Taiwan to set up manufacturing facilities here to drive our economic development. Our Government must also take the problems faced by foreign investors seriously, especially problems pertaining to foreign workers and poor security. If we can solve these problems in a more proactive way, we believe that we can attract even more foreign investments.

If the Government could also simplify the application procedures of visas and offer better facilities to help them, we can attract more foreign investors so that they can create more jobs and contribute more to our economy.