SUBANG JAYA: Investment, International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has assured that the fluctuations in the ringgit does not affect Malaysia's investment climate.
Tengku Zafrul emphasised that investments are primarily influenced by long-term considerations rather than currency fluctuations.
"I think on the issue of ringgit, it is more regarding trade. Investment is long-term in nature...it takes a while before a company decides to invest in Malaysia.
"Investors will have a long-term horizon and I think the strength of any particular currency, in this case ringgit, will be determined by their view of our economic fundamentals.
"The fluctuations in currency are short term in nature" he told reporters during the joint venture (JV) announcement between Proton Holdings Bhd and Aapico Hitech PLC here today.
Tengku Zafrul noted that the key concern for investors lies in ensuring that Malaysia maintains continuous and consistent policies and a robust talent pool to support sustainable growth.
While acknowledging the significance of monitoring the currency's value, the minister said the main focus should be on fostering an environment conducive to investment and ensuring a steady and predictable business landscape.
He added that stable policies and a skilled workforce are critical elements that can instill confidence in potential investors.
Tengku Zafrul also said his ministry is working on an initiative to streamline the roles and functions of all investment promotion agencies (IPAs) in Malaysia.
He added that the National Investment Council has acknowledged the external threats to Malaysia's competitiveness and has entrusted the ministry with enhancing the ease of doing business for investors by streamlining and realigning the IPA landscape.
He said ultimately, the ministry's focus is to provide investors, both foreign or domestic, with a simple and seamless journey facilitated by clear roles and responsibilities of each approving authority.
"While we just started this initiative, I would like to invite both existing and new investors to share their experience and suggestions on how we can eliminate pain points and vastly improve the investor's journey in Malaysia.
"We at Miti are always open to constructive feedback," he noted.
Tengku Zafrul said with better, streamlined processes and improved investor journey, the ministry and its agencies will be better equipped to position Malaysia as a truly pro-investment, pro-trade and pro-industry destination.
Commenting on the JV, Tengku Zafrul said the partnership is expected to contribute to the development of the Automotive High-Tech Valley, which aims to transform Tanjung Malim into an automotive hub that attracts global manufacturers and component suppliers.
He said this is particularly in advanced automotive technologies such as EVs and Next Generation Vehicles (NxGV).
Nevertheless, he said while attracting high quality investments remains a priority for the government, it is equally important to consider the spillover effects that each investment brings.
"Guided by the New Investment Policy, the projects undertaken should not only create high value job opportunities but also extend domestic linkages while prioritising environmental, social, and governance considerations.
"This holistic approach will ensure a balanced and inclusive growth for the nation," he added.
Proton and Aapico signed a JV agreement to produce dies, jigs, hot stamping parts, body assembled parts and chassis components.
Source: https://www.nst.com.my/business/2023/07/926881/malaysias-investment-climate-unaffected-ringgit-fluctuations-tengku-zafrul