Malaysia's Investment In South Countries Amount to US$4.8 Billion In 2006

KUALA LUMPUR, July 2 (Bernama) -- Malaysia's investment in South-South countries amounted to US$4.8 billion (RM17.6 billion) last year owing to brisk efforts by the government to encourage local firms to invest in developing nations, Minister of International Trade and Industry Datuk Seri Rafidah Aziz, said here Monday.Through South-South cooperation, developing countries could in the long term increase their economic well-being by investing jointly in the infrastructure and manufacturing sectors, she said in her keynote address at the familiarisation programme for officials of investment promotion agencies of South-South countries.Her speech was read out by Datuk R. Karunakaran, director-general of the Malaysian Industrial Development Authority (MIDA).Some 30 international participants from 16 countries are attending the programme.The investment also reflects Malaysia's "prosper thy neighbour" policy" in engaging developing countries in both trade and investment in a manner that would bring about mutual benefits to both parties.This was evident even recently when Prime Minister Datuk Seri Abdullah Ahmad Badawi visited Sudan, Namibia and Kenya, a move which would continne to take South-South linkages to a significantly higher level.Malaysia would also host the eight Global Langkawi International Dialogue (LID) from Aug 6-8 to foster smart partnerships which is expected to further widen the avenue for increased collaboration with South-South nations."The increasing globalisation and liberalisation of trade and investment makes it imperative for South-South Countries to collaborate and expand trade and investment ties," said Rafidah.She said that Malaysia also established close relationships and cooperative linkages with many South-South Countries in manufacturing, services, banking and finance, marketing of commodities, exchange of information, technical corporation and trade.She said the government offered many incentives for firms to invest overseas, particularly in South-South countries, including start-up expenditure which could be tax exempted.The government has also concluded Investment Guarantee Agreements (IGAs) with many developing countires to encourage and foster the flow of investments between Malaysia and these countries.To date, 56 IGAs has been signed with South-South Countries.Rafidah said total Malaysian investment overseas has increased to US$5.9 billion (RM21.5 billion) in 2006 from US$3 billion (RM11.3 billion) in 2005.