Malaysia remains an attractive investment destination

By

Petronas Twin Towers

Petronas Twin Towers

The country’s economic growth remains sturdy owing to the stability of its institutions and the diversification of it economic structure, said Prime Minister Dato’ Sri Najib Razak.

He said Malaysia’s economy is expected to grow by between 4.5% and 5.5% this year and over the next four years, while the Organisation for Economic Co-operation and Development (OECD) predicts the country will enjoy an annual growth of 5.6%.While a number of economies were facing challenging times, the Prime Minister said Malaysia’s Gross National Income grew by 47.7% between 2009 and last year and foreign direct investment reached record highs.

While a number of economies were facing challenging times, the Prime Minister said Malaysia’s Gross National Income grew by 47.7% between 2009 and last year and foreign direct investment reached record highs.

“When we meet our target for 2015, we will have reduced the fiscal deficit for a record six years in a row.

“With economic fundamentals remaining strong, the country is on track to achieve its goal of reaching high-income nation status by 2020,” he said in his keynote address at the 2015 Invest Malaysia conference.Dato’ Sri Najib said the Government has put in place various measures to ensure continued growth of the economy to make it a more attractive investment destination.

image003

image003Dato’ Sri Najib said the Government has put in place various measures to ensure continued growth of the economy to make it a more attractive investment destination.

Among others, he pointed out the introduction of the Goods and Services Tax, the removal of state subsidies on the prices of petrol and diesel, and increased spending on development and infrastructure projects, as some of the measures implemented.

He said the efforts undertaken by the government have resulted in tangible progress and this has been recognised internationally by various parties.

The IMF and the World Bank have both recently issued reports showing Malaysia near the top of their rankings for competitiveness and ease of doing business, and the Asian Corporate Governance Association ranked Malaysia alongside Asia’s developed markets, such as Japan, Hong Kong and Singapore.Dato’ Sri Najib also highlighted the strong growth of the country’s capital markets and fund management industry which continue to play a key role in positioning Malaysia as a leading investment destination.

Dato’ Sri Najib also highlighted the strong growth of the country’s capital markets and fund management industry which continue to play a key role in positioning Malaysia as a leading investment destination.

“Malaysia’s capital market has witnessed strong growth and currently stands at RM2.82 trillion, almost three times the size of the Malaysian economy, with the equity market at RM1.74 trillion and the bond market at RM1.08 trillion.

“The scale of capital market-based financing has also deepened significantly, with an annual average of RM111 billion raised through corporate bonds and IPOs over the last three years. This is more than double the corresponding average of RM48 billion a decade ago.”

Malaysia continues to be the global leader in the sukuk market

Dato’ Sri Najib said Malaysia also has a well-developed Islamic fund management industry, holding 22% of the USD73 billion Islamic assets under management globally last year.To firmly establish Malaysia as a leader in the field, he said, the Securities Commission is developing a comprehensive Blueprint for Malaysia’s Islamic Fund and Wealth Management industry to map out strategic direction for the industry.

To firmly establish Malaysia as a leader in the field, he said, the Securities Commission is developing a comprehensive Blueprint for Malaysia’s Islamic Fund and Wealth Management industry to map out strategic direction for the industry.The Prime Minister said Islamic Finance has also provided a natural platform for the country to embark on Sustainable and Responsible Investment (SRI) and Malaysia is well placed to drive the sustainability agenda further with the various initiatives being rolled out.

The Prime Minister said Islamic Finance has also provided a natural platform for the country to embark on Sustainable and Responsible Investment (SRI) and Malaysia is well placed to drive the sustainability agenda further with the various initiatives being rolled out.

“Malaysia’s Islamic capital market, which recorded an average of 12% annual growth over the last five years, currently stands at RM1.6 trillion. It also continues to be the global leader in the sukuk market, accounting for 66% of global sukuk issuance and 57% of global sukuk outstanding in 2014.”

“The Employees Provident Fund has embarked on an initiative to offer a shariah compliant investment option for its members as of 2017, creating the largest shariah fund of its kind in the world.

“Following the launch of the SRI Sukuk Framework by the Securities Commission last year, the first Malaysian SRI Sukuk Programme of up to RM1 billion has been approved and will be issued by Ihsan Sukuk, an Independent Special Purpose Vehicle with full recourse to Khazanah Nasional. The proceeds from this programme will be used to fund eligible Shariah compliant SRI projects, such as education initiatives.”

Leave a Comment