KUALA LUMPUR – The government is optimistic that the trade and investment targets set for this year are achievable despite the ringgit’s current depreciation against the US dollar, as many other major fundamentals remain attractive and appealing to global investors.
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said investors would look at the long-term outlook and fundamentals in making their decisions.
“Ringgit is one of the major factors. They want to see the stability of the ringgit, and I think we are within the stable range,” he told reporters after launching BYD Malaysia’s latest electric vehicle marque, BYD SEAL.
Tengku Zafrul said investors would usually take between six months and up to one year to decide on their investments, and up to two years to set up their factory in the respective country, therefore, they would not look at currency fluctuations too much.
Investments are important for economic growth, he said, noting that investments currently account for approximately 22% of the national gross domestic product (GDP).
“To make investments one of the key engines of growth, we need to double the amount. When the percentage of investment to GDP increases, it will boost Malaysia’s economic growth.
“We can’t just depend on consumption and government spending,” he said.
Tengku Zafrul added that the government is looking at 5% growth in trade this year, slightly higher than the 3% global trade growth projected by the World Trade Organisation. – February 22, 2024