KUALA LUMPUR, Aug 29 — The government’s predilection for announcing matters and subsequently clarifying these later can erode investor confidence and public trust, said the Centre for a Better Tomorrow (Cenbet).
The pro-moderation group that is closely linked to MCA said it fully supported the government’s intention to address “lopsided” deals signed by the previous administration, but said this should not be tackled in a mercurial manner.
Citing the confusion over Prime Minister Tun Dr Mahathir Mohamad’s remark prohibiting the sale of property in Johor to foreigners as an example, Cenbet noted it was later explained that non-Malaysians could conditionally own property in the country.
“Such communication gaps can cause jitters among investors. It also raises questions about the federal government's perceived encroachment into land matters, which rightfully should come under the state's jurisdiction,” the group said in a statement today.
It also noted that projects such as the East Coast Rail Link and the High-Speed Rail continue to exist despite the prime minister’s public announcements that these were cancelled.
Cenbet added that the magnitude of the projects meant these would be closely scrutinised worldwide and the government’s inconsistencies in handling them would fuel uncertainty at a time when the Malaysian economy could do with foreign investment.
“Any announcements on major policy decisions ought to have gone through due processes, including seeking views from various stakeholders. This is part of good governance which we advocate.
“This will also go a long way in enhancing investors' confidence and make Malaysia a magnet for foreign capital.”
A day after the PM’s announced “ban”, Housing and Local Government Minister Zuraida Kamaruddin explained that this was not yet a formal policy.
The Prime Minister’s Office also issued a statement yesterday explaining that residency visas were not automatic for foreign property buyers, ostensibly to clarify Dr Mahathir’s remarks saying he did not want the Forest City development in Johor to be sold exclusively to non-citizens.
