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NEWS UPDATES 29 July 2009

Declining private investment worries Malaysian govt

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Malaysian government is concerned over the declining trend in private investment, national news agency quoted Second Finance Minister Ahmad Husni Hanadzlah as saying.

In his speech at the Focus Group on Private Investment 2010 Budget meeting Tuesday, Husni said growth in private investment had moderated to an average 9.4 percent from 1999 to 2008.

“In terms of contribution to the gross domestic product, private investment has declined from 26.9 percent to 10.6 percent during the same period,” he added.

According to Husni, prior to the Asian financial crisis, private investment had been the key source of growth in Malaysia, expanding 21.4 percent on average from 1990 to 1997.

He said major factors hindering private investment included a severe shortage of skilled workers, lack of investment in research and development, low level of productivity and the relatively high cost of doing business.


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