Today another damning report was highlighted.
FDI Outflow at Record High... reads the news in malaysiakini.
Not many days ago... now I can't seem to find the article.. if anyone has please notify me. There was an article that our PM Abdullah claimed that Anwar was speaking rubbish when he claimed what Anwar claimed was untrue... Anwar had claimed there was huge investment outflow from Malaysia. That was dismissed as rubbish and if I am not mistaken Abdullah also claimed that what Anwar had said was destabilising the nation... that was what I remembered, but I am trying to locate the article but can't seem to find it... anyway.. this news came about today... and the excuse was that.. hey! now Malaysians are "investing" abroad...
Zainal Aznam Yusoff, a member of the Malaysian Economic Council, told a the press conference held after the report’s release that the net outgoing was caused by Malaysians investing more of their money abroad.
"Malaysia is actively integrating and going into Asean and beyond," said Zainal, adding that a sizeable chunk of the off-shore investments made by Malaysians went into countries such as Singapore, Indonesia, China and Middle-East.
Building infrastructure, such as telecommunications, agriculture, manufacturing, finance and mining were favoured investments. "We are quite diversified," Zainal said.
He said another reason for the greater outflow was because many Malaysian firms had partaken of cross border acquisitions - a stance in keeping with the government’s call to invest abroad.
"The overall balance of payment is fairly healthy, despite the sizeable outflow," said Zainal when quizzed about the figures.
"So you can’t generalise. You must look at the second and third round effect of the benefit you get from the repatriation of money that comes back here and what you use it for," he said.If that is true then we should be a very rich country in that we are "moving out"... but is it the case? He (Zainal) did not give any statistics to support the statement!
Abdullah called Anwar a liar on this, but who is the liar now?
Further the report said, This took place despite the fact that the Southeast Asian region recorded its highest ever FDI inflow - which leapt 81.1 percent to RM209.2 billion in 2007 from RM115.5 billion in 2006.
FDI inflow leapt 81.1%! From the graph, FDI inflow into Malaysia was up less than 40%.
The report also noted that our outflow surged 81.9%. I wonder who is sending out the money.. hmmmm...