Malaysia's Titiwangsa MP Johari Ghani said it is important to monitor the implementation of MoUs entered by Malaysian companies with foreign entities. (Photo:freemalaysiatoday.com) Kuala Lumpur (VNA) –Malaysian Prime Minister Anwar Ibrahim has announced that the his government cabinet will set up a committee to supervise investments.
Earlier, Malaysia secured a record of 170 billion MYR (40 billion USD) worth of investment commitments from China. This was a result of the signing of 19 Memorandum of Understandings (MoUs) between Malaysian and Chinese companies.
The projects are being monitored by the Ministry of International Trade and Industry (MITI), the Malaysian Investment Development Authority, and Malaysia External Trade Development Corp.
Former second finance minister Datuk Seri Johari Abdul Ghani said the government should set up a committee under the International Trade and Industry Ministry to monitor investments coming into the country.
Johari, who is the Titiwangsa MP, said it was important to monitor the implementation of MoUs entered by Malaysian companies with foreign entities so they can take the next action steps as well as grasp the difficulties and obstacles that investors encounter.
He emphasised that there must be a team to monitor such investments and this can be done through MITI. Reports from time to time are needed, on why the investments were successful, why they were not, and why postponements were warranted.
He said there must be follow-ups on the MoUs to understand the issues, including those faced by potential investors.
In an interview granted to the Vietnam News Agency, Dr. Carmelo Ferlito, Chief Executive Officer of Centre for Market Education (CEM), said there are three main issues that need to be monitored and popularised properly, namely the difference between the approved MoU, foreign direct investment (FDI) and actual (realised) FDI; the transition from MoUs to FDI which have been approved and then to FDI implemented; and the final matters that have hindered the implementation of FDI projects.
To enhance Malaysia's ability to attract FDI and develop an appropriate communication strategy, the official suggested that MITI should establish an FDI monitoring committee with the participation of International Chambers of Commerce and representatives from Malaysia’s industry./.
