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Since gaining independence, Malaysia has seen an influx of foreign investors to
stimulate its economy. It is the mainstay of the country's revenue as it serves
as a stepping stone for Malaysia to achieve progress along with other developed
countries. Therefore, steps to attract foreign investors need to be identified
and planned so that the country's economy gets a good boost to continue
developing and become competitive. The question is, what factors encourage
foreign investors to invest in our country? Factors Encouraging Foreign Direct
Investment One of the main factors in attracting foreign investors is by looking
at a country's political landscape. Foreign investors are more interested in
investing in a country that has political stability where their companies are
not at risk of incurring losses. Political stability indicates that the country
has a clear economic direction and is committed to improving its economic
position. With this confidence, foreign investors will trust the country's
bureaucracy and agree to invest. Therefore, we as citizens are responsible for
choosing the best leaders among the country's politicians so that they can
fulfill the people's trust and bring the country towards global progress.
In addition, a country that has good diplomatic relations is also an
attractive factor for foreign investors. Bilateral and multilateral relations
must be strengthened to establish good trade relations between Malaysia and
other countries. Bilateral relations are strengthened through diplomatic visits
by the Yang di-Pertuan Agong, Prime Minister, or Minister of Trade and
International Relations to other countries. For example, the visit of the
Malaysian Prime Minister to Japan and the United Kingdom. Multilateral relations
are pursued by joining conferences of organizations involving various countries
such as ASEAN. This conference will stimulate the regional economy as well as
help other Southeast Asian countries introduce the latest and most beneficial
economic models. Therefore, it is clear that diplomatic relations between
Malaysia and other countries since Malaysia became a sovereign state until now
have been effective in increasing foreign investment in our country.
Other factors that can encourage foreign investors to invest in our country
are by having a comprehensive infrastructure. Infrastructure such as a
systematic transportation system such as ports and airports, continuous
electricity and water supply, and an efficient telecommunications system should
be provided for factory operations. This infrastructure is a very important
prerequisite for bringing investor products to foreign markets. Strategic trade
zones should also be increased. These trade zones should be close to raw
material sources, especially agricultural products such as palm oil, to ensure
that they are not damaged and are in the best quality before reaching processing
plants. Examples of trade zones are in Shah Alam, Gurun, and Senawang. More
areas should be made into free trade zones (FTZ) such as in Bayan Lepas, Penang,
to attract foreign investors. As a result, new investors are very interested in
trade zones that are complete with all planned infrastructure.
Finally, the supply of professional labor also plays an important role in
attracting foreign investors to our country. The productivity of a factory will
increase with the presence of many skilled local workers. Therefore, the number
of skills training programs should be increased by the Malaysian government with
the assistance of government agencies |
