Bloody rotten economic news for us.
Foreign investments in Johor have been abysmal this year, but merely follow the current national economic trend.
According to the 2006 World Investment Report published by the United Nations, foreign direct investment (FDI) into Malaysia fell by 14.2%, whereas the region (SE Asia) enjoys a massive 45% leap in FDI. When you look at the total picture for the region, the Malaysian case has suffered a Godzilla-ish drop.
A report by the United Nations Conference on Trade and Development (UNCTAD) pointed out Malaysia, on the scale of attractive destinations for FDI, has plummeted fron 4th position in 1990 to the current lowly 62th.
We used to sneer at Indonesia for its rampant pungli-ness (pungli = pungutan liar), a deterrent to FDI, but she who laughs last laughs best because Indonesia has now overtaken Malaysia with a shocking increase of 177% FDI, amounting to US$5.26 billion.
Meanwhile, in the Land of the Smiles, Thailand’s FDI receives a 161% jump in its FDI, closing the gap that Malaysia previously enjoyed.
Our neighbours are prospering while we are sliding back into obscurity in the world of investments, with dire consequences for our economy and national development, and we haven’t yet mentioned places like the two giants of China and India, and a fast developing Vietnam.
Johor Menteri Besar Abdul Ghani Othman last month revealed the worrying statistics over the lack of foreign investment in his state, where Singapore’s investment in our southern state has nose-dived to an alarming level.
Don’t forget he was the bloke who insisted that Malays must be the pivotal race in Malaysia. He even twisted the words of the most respectable Datuk Oon Jaafar to suit his supremacist views. For more, read:
(1) Johor UMNO: 'Bangsa Malaysia unacceptable!'
(2) Johor UMNO's Neo-Judaistic 'Super-Race'
(3) Maligning Datuk Onn Jaafar's illustrious name
I wonder whether that would have an impact on Chinese Singaporean thoughts about investing their Sing dollars in Johor?
And then, we have his Royal Loose Cannon insulting foreigners, which include Singaporeans, as ‘dirty’ and calling for the removal of the Causeway. For more of his diatribe, read Mahathir's away, pussy starts to play!
And no doubt the MB, he of the neo-Judaistic 'super-race', must be wondering why Singaporeans have been shy of investing in his 'Promised Land'. Maybe we should send Wonder Boy down south with his magic 'pot of spice'.
The problem with the issue of FDI is that no one worries too much because the trade and foreign reserve numbers don't look bad yet. What is bad understood is how FDI has a multiplier effect beyond just simple trade imbalances and balance of payment.
ReplyDeleteThe story of FDI is bad because it relates to productivity. What no one is noticing and not being reported is our productivity numbers. Productivity in this country is very closely linked to FDI so if the numbers are published chances they have been bad for a long time by now.
What does that mean? More than just losing out we are actually hawking our future away basically by spending our way out of trouble with the resorces and advantages we are given i.e., higher oil and palm prices and exports to China.