ASEAN KEY DESTINATIONS
Malaysia invests $4.8 bln in South-South in 2006
Through South-South cooperation, developing countries could in the long term increase their economic well-being by investing jointly in the infrastructure and manufacturing sectors, said Auk R. Karunakaran, director-general of the Malaysian Industrial Development Authority (MIDA), who representing Minister of International Trade and Industry Auk Seri Rafidah Aziz.
He made the remarks at the familiarisation program for officials of investment promotion agencies of South-South countries, which attended by about 30 international participants from 16 countries.
The investment also reflects Malaysia's "prosper the neighbor policy" in engaging developing countries in both trade and investment in a manner that would bring about mutual benefits to both parties.
This was evident even recently when Prime Minister Auk Seri Abdullah Ahmad Badawi visited Sudan, Namibia and Kenya, a move which would continue to take South-South linkages to a significantly higher level.
Malaysia would also host the 8 Global Langkawi International Dialogue (LID) from August 6 to 8 to foster smart partnerships which is expected to further widen the avenue for increased collaboration with South-South nations, the national news agency Bernama reported.
"The increasing globalization and liberalization of trade and investment makes it imperative for South-South Countries to collaborate and expand trade and investment ties," he said.
Malaysia also established close relationships and cooperative linkages with many South-South Countries in manufacturing, services, banking and finance, marketing of commodities, exchange of information, technical corporation and trade, he said.
The government offered many incentives for firms to invest overseas, particularly in South-South countries, including start-up expenditure which could be tax exempted, he said.
The government has also concluded Investment Guarantee Agreements (IGAs) with many developing countries to encourage and foster the flow of investments between Malaysia and these countries.
Total Malaysian investment overseas has increased to US$5.9 billion in 2006 from U$3 billion in 2005, according to the data released by the ministry. Xinhua