KULAI, Sept 15 — Foreign companies in Malaysia are rationalising their business rather than winding them up to offset the weakening ringgit.
Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Azman Mahmud said they were rationalising some products and technologies that were becoming obsolete or non-competitive.
“They will bring new technologies and products so that business will be as usual.
“It’s normal to have upswing and downswing when it comes to currencies.
“That’s why, we must look at other fundamentals such as good infrastructure, connectivity and a strong supply chain,” he told a press conference after the opening of a new production facility of Sin Kwang Plastic Sdn Bhd in Senai, here today.
Azman was asked whether there was any investment withdrawal from foreign companies due to the sliding ringgit.
Armed with dynamic ecosystem and fundamentals, and positive investment environment, he said Malaysia still has valuable propositions to offer foreign investors.
He cited the opening of the new production facility of Sin Kwang Plastic as a testimony as it reflected the company’s confidence in long-term investment in the country.
For the first half of this year, MIDA approved RM4.4 billion investments in the electrical and electronic sector, 90 per cent of them from foreign sources.
Built on a 2.02-hectare site, the new production facility of Sin Kwang Plastic is dedicated for Dyson, a British company noted for its innovative technology embedded in vacuum cleaners, hand dryers, bladeless fans and heaters.
SKP, a wholly-owned subsidiary of SKP Resources Bhd, focuses on manufacturing plastics parts and components, precision mould making, sub-assembly of electronic and electrical equipment and other secondary processes. — Bernama
