M'SIA TO WOO INVESTMENTS FROM COUNTRIES WITH SURPLUS CAPITAL

KUALA LUMPUR, Feb 16 (Bernama) -- The Malaysian government will continue to
woo inflow of more investments from countries with surplus capital from the
Middle East, China, India and Asean region.
The King Tuanku Mizan Zainal Abidin, said besides
maintaining exports to traditional markets, efforts would be stepped up to
explore new potential markets

"My government will continue to strive to cushion the impact of the
global economic downturn on the trade and industrial sectors," he said when
opening the first meeting of the second term of the 12th Parliament.

The King said the government would create a more conducive economic climate,
boost competitiveness and introduce a more liberal and transparent investment
policy.

Measures to liberalise the service sector would also be taken in a planned
and progressive manner to make the country more competitive at regional and
global levels.

"This is because the service sector is the main contributor to the Gross
Domestic Product and plays a crucial role in generating growth, expand economic
fundamentals and instrumental to the country's export revenue," he said.

Focus would also be given to initiatives to boost efficiency in the public
delivery system which would contribute to the country's increased
competitiveness to bolster investment inflow, he said.

He also said Malaysia's position in the World Bank Study Report for
incentives to do business had also moved up to 20th spot from 24th
among 181 countries in 2009.

Tuanku Mizan also urged banks to continue providing credit facilities to
companies in efforts to generate economic activities and support national
economic growth.

To help viable small-and medium-scale industries that have been affected by
the gloomy economic landscape, he said Bank Negara has set up a RM2 billion
Credit Guarantee Scheme to help SME entrepreneurs to have access to financing at
at a lower cost.

He also urged industries, be they big, medium or small, to shift to
hi-tech-based industries such as biotechnology.

"The Industrial sector should also seize the opportunities available in the
agriculture sector to venture into modern and large-scale food production," His
Majesty said.

The private sector should also take advantage of the international
community's confidence in the Malaysian halal certification Scheme to strengthen
Malaysia's position as the world's halal goods and services hub, he said.

The King said Malaysia's expertise in Islamic banking recognised by the
international community can also be exploited to upgrade Malaysia's status as
the hub for Islamic banking system.

The government will also enhance cooperation with commodity producing and
exporting nations to stabilise commodity prices in the international market in
view of uncertainties in commodity prices, thus taking a toll on smallholders'
income, he added.

-- BERNAMA