Malaysia still attractive for foreign investors eyeing to set up regional offices
Malaysia still attractive for foreign investors eyeing to set up regional offices
Given its strong and diversified base across multiple industries, Malaysia remains an ideal destination for foreign investors looking to set up regional offices, said Tan Sri Amirsham Abdul Aziz, chairman of Malaysian Investment Development Authority (Mida).
As of Q1 2015, Mida approved 3,569 regional establishment projects, which include regional offices, representative offices, international procurements centres and operational headquarters, among others, reported The Star.
Notably, investments in 1H 2015 were strong and the trend is expected to continue in 2H despite the challenging domestic and global economic environment, said Amirsham.
“We are also hoping that domestic investors would continue to invest because we need both elements to accelerate the growth of the country,” he said at the sidelines of the opening of Arla Foods Asia regional office.
When asked whether the cabinet reshuffle will affect investors’ confidence in the country, Amirsham noted that investors do not consider the political scenario as a major factor in setting up their business locally.
He explained that investors come to Malaysia “to do business and they are looking for a long-term prospects and politics is not a concern.”
Commenting on the weakening ringgit, Amirsham said foreign investors are looking at using Malaysian inputs in order to reduce cost, upon realising that local supply chain is good.
“Therefore, the impact is minimal as they are leveraging on domestic supply chain and technology. This is good for the country,” he added.
Meanwhile, Jesper Colding, Arla head of business activities in Asia, noted that the set-up of the regional office in the country will help the firm access the Asia market.
“The Malaysian market is relatively small at the moment. However, it has certain advantages, such as safe and friendly environment to develop the business… Cost-wise, this country is still attractive compared to Beijing, Shanghai or Singapore,” he said, noting that the Arla’s main market in Asia is Indonesia, China, Bangladesh and the Philippines.