KUCHING: Over 11 per cent or RM6.8 bi l lion of the total RM59.5 billion of Foreign Direct Investment (FDI) that Malaysia received last year was invested in Sarawak.
Second Minister of Resource Planning and Environment Datuk Amar Awang Tengah Ali Hassan said such a steady flow of investment in the country “is a clear testimony of the conducive investment climate and the ease of doing business in Malaysia”.
“In this regard, Malaysia will continue to offer generous incentives to investors,” he said during the Sarawak Presentation at the fourth annual investment meeting at Dubai International Convention and Exhibition Centre in Dubai, United Arab Emirates on Tuesday.
Awang Tengah said Sarawak, through its well-diversified economy, had been able to raise its gross domestic product (GDP) 142 times from RM527 million in 1963 to RM75 billion last year.
“Similarly, our GDP per capita has also increased almost 62 times from RM688 to RM42,509 over the same period.
Sarawak has been able to achieve a steady annual growth rate of between 4.5 to 5 per cent over the last few years despite the global economic slowdown.
” The state’s economy, he added, has been rated by international credit rating agencies at A- (stable outlook) by Standard & Poor’s and A3 (stable outlook) by Moody Investors Services.
“Our conducive investment climate supported by good credit rating has also been instrumental in attracting private investment into the state especially the FDI. ”
He stressed Sarawak has embarked on the development of the Sarawak Corridor of Renewable Energy (SCORE) to raise the income level of its people through a high-income economy by 2020.
The mega project, he said, was built on the energy potential of 28,000 megawatts of which 20,000 megawatts would be hydropower.
“With our hydropower, SCORE has emerged to become the preferred investment destination in Malaysia for heavy and energy intensive industries in Samalaju Industrial Park.”
Awang Tengah said Sarawak is also positioning itself in the global Islamic world with the development of Tanjung Manis Halal Hub, the biggest in Malaysia for high value-added industries including agriculture, aquaculture, biotechnology and food processing.
“Blessed with abundant natural resources, Sarawak is also promoting its resource based industries namely timber and oil palm. These industries have tremendous opportunities for investors who wish to invest in the downstream processing activities.
“In terms of trade, oil palm and timber are ranked third and fourth largest export earning for Sarawak. The biggest is liquefied natural gas (LNG) followed by petroleum and petroleum products.”
He assured Sarawak “is the preferred investment destination” in the region given its stable politics, economic environment and strategic location that is well connected by air and sea as well as a stable and business-friendly government.
“We have put in place established legal framework to safeguard investment. We are very peaceful and harmonious society with good quality of life.”