MSIA TO ATTRACT FUNDS FROM KUWAIT FOR MANUFACTURING AND SERVICES SECTOR

From Umi Hani Sharani

KUWAIT CITY, Oct 24(Bernama) -- Malaysia is set to attract an inflow of
investments and funds from the Middle East, particularly Kuwait, to finance
various projects in its manufacturing and services sector.

Malaysian Investment Development Authority (MIDA)'s director general,
Jalilah Baba told Bernama that most of the Kuwait investors were looking to
finance viable projects that would ensure continuous return on a long term
basis.
They are very keen on alternative energy production, he said.

"Alternative energy is very much in demand and they know it will have
consistent returns. They don't have the technology, but they do
have the funds to invest," she said on the sideline of the Malaysia
International Islamic Financial Centre (MIFC) roadshow to Kuwait and Saudi
Arabia here Thursday.

At a luncheon earlier, Jalilah presented a talk on 'Investment
Opportunities in the Manufacturing and Services Sectors in Malaysia'.

She said other segments that have also attracted Middle Eastern investors
were tourism projects and food security.

"We would be negotiating in a few days for projects such as wafer
fabrication. They have expressed interest in financing those projects.

"At least if we can provide the financing, others would come and locate
their projects in Malaysia," she said.

Jalilah said that one Kuwaiti group which has a diversified portfolio from
manufacturing to finance, was also keen to locate its operational headquarters
in Malaysia to serve the Asian region.

Declining to identify the party, she said the group has also submitted an
application to set up an asset management company with Securities Commission.

"We have been establishing contacts with these investors from Kuwait for
the past few years. It takes time to convince them. This is why we keep on
coming back here and they see a continued interest from our side," she said.

She said Malaysia was also looking to invite the Kuwait Investment
Authority (KIA) to invest in other sectors like real estate, rather than just
investing in the financial sector.

KIA, which has a presence in Malaysia among others via its stake in Kuwait
Finance House, usually appoints third parties to invest on their behalf.

"For KIA, they will only take equity and will become silent partner. They
don't take active participation in the operation.

"But now we prefer to deal direct with them," she said, adding that
Malaysia
was also promoting the real estate sector to them, especially with prices having
come down. "Comparatively, Malaysia is still cheaper."

They could also take equity in tourism related real estates such as hotels,
she added.

Meanwhile, Jalilah said the total approved manufacturing projects in
Malaysia as at August 2008 was 22,213 projects, with approved investments
amounting to US$74.7 billion from local investors and US$91.7 billion foreign
investments.

Major investors are the United States, Japan and Singapore.

As at August this year, 27 manufacturing projects from the Gulf Cooperation
Council (GCC) countries have been approved with investment of US$1.207 billion
with United Arab Emirates accounting for 17 projects worth US$1.164 billion and
Saudi Arabia 10 projects valued at US$42.23 million.

On the services sector, she said Malaysia approved 2,439 projects with
investments of US$19.3 billion in 2007.

-- BERNAMA