Najib Tun Razak
KUALA LUMPUR: The Malaysian capital market increased nine per cent to RM3.1 trillion in the first six months of this year and is now ranked fifth in Asia, relative to the gross domestic product (GDP), Prime Minster Datuk Seri Najib Tun Razak said.
He said Malaysia is also home to the largest number of listed companies in ASEAN and at US$29 billion, Bursa Malaysia also recorded the highest in funds raised in the last five years among the 10-member regional body.
“All this can point to only one conclusion, namely, our economy continues to prosper and we are stronger than ever as a result of the reforms and programmes the government has put in place,” he said in his keynote address at Invest Malaysia 2017 here today.
He said as the business community and companies like strength and stability, they want the certainty provided by a government that understands the prosperity of its people, is best served by being business-friendly and that sovereignty is not compromised by foreign direct investments.
“The business community wants the certainty of knowing the government is committed to the necessary reforms and to fostering a culture of entrepreneurship, transparency, accountability, and good regulations,” he added.
He said among the major investments pledged by foreign companies in Malaysia include China’s Huawei, which is making the country its global operations headquarters, data hosting and global training centre, at a project cost of RM2.2 billion, while employing more than 2,370 people.
He also said another significant investment is Saudi Aramco which is investing US$7 billion – the company’s biggest downstream investment outside Saudi Arabia – for a 50 per cent stake in the Petronas Refinery and Petrochemical Integrated Development in Johor.
“That is the single largest investment in Malaysia, and shows the confidence Saudi Arabia has in our people, our technology, and ability to be a strong partner with their most important business,” he added.
Apart from that, Najib said London-based HSBC is investing over RM1 billion to build its future regional headquarters at the Tun Razak Exchange, recognising Malaysia’s increasing status as an international financial and business centre.
Another company, Broadcom Ltd, one of the world’s largest semi-conductor entities with a market capitalisation of nearly half a trillion dollars, is transferring its global distribution hub that will manage the group’s global inventory of RM64 billion annually to Malaysia from Singapore this year. “Others who are already here are expanding their operations. Finisar Corporation, a global technology leader in optical communications, will invest a further RM610 million in its operations in Perak, bringing its total investment in Malaysia to RM1 billion,” he said.
Najib also criticised those opposing the Goods and Services Tax (GST) and said the government would always be straight with the people and do what is right for them.
“We will always put their interests first, from economic welfare to security. Even if it is not the most popular thing to do, we will not hesitate, because it is the responsible thing to do for the country,” he added.
He said this is a reason what he is not very popular with a certain person, under whose leadership, many corners were cut, and the people had to pay a very high price, so that a few of his friends benefited.
“This was even when symbols of national pride had horrendous and catastrophic decisions hoisted on them.
“But, under this government, we are cracking down on crony capitalism. No more sweetheart deals. No more national follies to keep stroking the ego of one man. No more treating national companies as though they are personal property,” he said.
Najib said the government since 2010 had introduced a New Economic Model designed to transform Malaysia into a high income nation and make the country into a more inclusive, equitable and sustainable society, with no one left behind, and opportunities made available for all.
“This is alongside the right fundamentals put in place to secure a stable and successful future.
“We have a plan of reform and economic transformation, while taking tough but responsible choices. It is clear today, that, aided by the hard work of millions of Malaysians, the plan has worked and is continuing to work,” he added.
He said between 2009 and 2016, the Gross National Income (GNI) increased by nearly 50 per cent, and GNI per capita using the Atlas method, increased to US$9,850.
“Based on the World Bank’s latest high income threshold of US$12,235, we have narrowed the gap towards the high income target from 33 per cent to 19 per cent,” he said, adding, 2.26 million jobs had also been created.
“This represents 69 per cent of the 3.3 million target the government wants to reach by 2020. Inflation and unemployment have also been kept low,” Najib added. – Bernama