Saturday, September 20, 2008

Foreign Investors Adopt 'Wait-and-See' Attitude


-- Foreign investors are adopting a 'wait-and-see' approach following the uncertain socio-political situation during the last three months.

Second Finance Minister, Tan Sri Nor Mohamed Yakcop, this has affected investments in the short term.

"The effects are not serious because there were already huge investments earlier. During the last three months, I have noticed that the investors are adopting the wait-and-see attitude," he told reporters at the Majlis Penyampaian Sijil Amal Jariah here Saturday.

Nor Mohamed was asked to comment on talks that foreign investors had pulled out their investments following claims by Parti Keadilan adviser, Datuk Seri Anwar Ibrahim, he would take over the government and become the prime minister.

He said the government has taken various steps to assure foreign investors that Malaysia's investment climate was still the best.

"The appointment of Datuk Seri Najib Tun Razak as finance minister was also seen as positive by the investors," he said.

Nor Mohamed urged the various parties to set aside politics and worked together to create the confidence and attract foreign investors back.

He said apart from a good investment climate, investors would also look at other factors like the profit in the short and long term, infrastructure, skilled manpower and a legal system that was efficient before investing in a country.

On the RM1.3 billion contract to build the second Penang bridge, he said the government has not received the feedback from UEM Builders Bhd.

"UEM is studying the matter. If it sees that the price is good, it will accept the offer," he said, adding that negotiations could still be held.

UEM Builders was given two weeks from Sept 8 to decide whether to accept the offer.