To the foreign companies, thank you for not leaving Malaysia

By ZAIDI ISHAM ISMAIL
[email protected]

KUALA LUMPUR Dec 17 - Earlier this year, rumours were rife that some foreign companies were planning to leave Malaysia.

This is due to the strict measures slapped by the government such as the movement control order to nip COVID-19 in the bud.

At the time, the situation was dire in Malaysia, of which there were more than 10,000 cases a day.

The hospitals were overflowed with patients and economic hardships began to strangle the rakyat.

Not surprisingly, many multinationals (MNCs) pondered on the possibility of leaving the country.

They are further enticed by other countries to pack up their bags and shift their operations out of Kuala Lumpur.

The chamber of commerce and industry of a certain country also advised its members to move out of Malaysia and relocate due to the erratic political situation and stifling lockdowns.

Changed for the better

But a few months down the road, the situation has improved of which COVID-19 cases dipped at below 5,000 cases daily.

Economic activities have returned in tandem with the re-opening of state borders and almost all of the nation's adult population have been vaccinated.

"A few small companies did leave Malaysia but they are mostly medium sized SMEs but the big MNCs have stayed pat and did not leave Malaysia.

"This is due to the consistent economic policies which is more attractive than anywhere else," said a source at the International Trade and Industry Ministry.

Speaking to DagangNews, he said some of the companies were really tempted to relocate but in the end decided not to due to the various incentives already set in place by Malaysia.

"Remember, Malaysia ranks highly as one of the world's 20 top trading nations, top 20 most competitive and top ten in ease of doing business as ranked by the World Bank."

So these carrots are not easily found anywhere and so it is better they stay put in Malaysia," said the source.

Meanwhile, a Panasonic Malaysia official said admittedly some of its distribution offices in the country have been closed.

However the crux of its operations in Shah Alam is here to stay due to the long term value proposition which Malaysia offers.

"Panasonic has been in Malaysia for decades and it is unlikely that we will abandon the country, the source told DagangNews.com.

However, the source added that the government must be consistent in its business policies as well as introduce new ones to ensure that no company leaves the country.

The source added some of the measures which the government could do is to continue to do away with the reinvestment tax for existing foreign companies so that they can reinvest again and again.

The source added it is understandable that the government needs to close its borders right  now and freeze the entry of foreign workers.

"But we need foreign workers and thus there should be a mechanism to bring them in after they are double vaccinated," said the source.

Ismail Sabri's pro-business policies

Prime Minister Datuk Seri Ismail Sabri Yaakob had said part of the government’s strategy to attract investors is its pro-business philosophy.

This is evident by its commitment to the concept of a public-private partnership, Ismail Sabri said recently at the Global Chinese Economic and Technology Summit.

Ismail Sabri also called upon the private sector to be the catalyst for reform, to drive sustainability and contribute to the collective goal of making Malaysia ever more resilient. - DagangNews.com