KUALA LUMPUR, June 2 — Prime Minister Datuk Seri Najib Razak today questioned critics who insist on Malaysia retaining full ownership of companies that are not doing well, pointing out that it would be more beneficial to open up such businesses to investors.

Najib also highlighted Malaysia’s popularity as a country for investors, saying that it would be bad for the country to turn away foreign direct investments out of a "narrow and foolish belief” and "fundamental misunderstanding of economics”.

"Some people seem to think that it is better to have loss-making companies that are 100 per cent Malaysian owned — instead of a smaller percentage in a company that stands to gain access into bigger markets, economies of scale and cutting edge technology.

"I ask you, which one will create more wealth and jobs for Malaysians? The answer is obvious,” he said at the opening of China Construction Bank’s branch in Kuala Lumpur, but did not specify who or what he was referring to.

Former prime minister Tun Dr Mahathir Mohamad, who is also a harsh critic of Najib’s policies and now an opposition politician, had however lamented the sale of a stake in national car brand Proton to a firm from China.

Lamenting the sale of a 49.9 per cent stake in Proton to Chinese automaker Zhejiang Geely Holding Group, Dr Mahathir had said he could no longer be proud of the car brand which he claimed no longer belonged to Malaysia even if he predicted great success for it.

Following the recent deal between Proton parent DRB-Hicom and Geely, Second Finance Minister Datuk Seri Johari Abdul Ghani had however said that Proton would remain a national car and a source of pride as local firm DRB-Hicom still holds the majority stake at 50.1 per cent.