Malaysia braces for huge FDI inflows

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Artist’s impression of the Second Penang Bridge project

With a number of large projects coming up in Malaysia starting from 2013, the nation is expecting new record capital inflows into the several of the country’s economic sectors.

The bulk of these projects will come from the oil and gas, infrastructure and real estate sectors, said Frederico Gil Sander, World Bank Senior Economist for Malaysia, according to news agency Bernama.

Projects in the oil and gas sector include the $20 billion Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor, and the $1.2 billion Sabah Oil and Gas Terminal in Kimanis.

Investor interest is also spurred by the progress in the infrastructure and real estate sectors, such as the $330 million Mass Rapid Transit project in Kuala Lumpur, the $1.5 billion Second Penang Bridge and the $8.5 billion Tun Razak Exchange.

While Sander noted that these projects will bring a big push for the country’s economy, he also said that the challenge for Malaysia going forward would be “to ensure investments in non-commodity sectors, such as manufacturing and knowledge-intensive services.”

However, in the long-term, Malaysia should remain “an attractive destination for foreign portfolio investors, given the potential for higher-than-average growth, and provided that structural reforms are rapidly implemented,” he said

 

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Reading Time: 1 minute

Artist’s impression of the Second Penang Bridge project

With a number of large projects coming up in Malaysia starting from 2013, the nation is expecting new record capital inflows into the several of the country’s economic sectors.

Reading Time: 1 minute

Artist’s impression of the Second Penang Bridge project

With a number of large projects coming up in Malaysia starting from 2013, the nation is expecting new record capital inflows into the several of the country’s economic sectors.

The bulk of these projects will come from the oil and gas, infrastructure and real estate sectors, said Frederico Gil Sander, World Bank Senior Economist for Malaysia, according to news agency Bernama.

Projects in the oil and gas sector include the $20 billion Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor, and the $1.2 billion Sabah Oil and Gas Terminal in Kimanis.

Investor interest is also spurred by the progress in the infrastructure and real estate sectors, such as the $330 million Mass Rapid Transit project in Kuala Lumpur, the $1.5 billion Second Penang Bridge and the $8.5 billion Tun Razak Exchange.

While Sander noted that these projects will bring a big push for the country’s economy, he also said that the challenge for Malaysia going forward would be “to ensure investments in non-commodity sectors, such as manufacturing and knowledge-intensive services.”

However, in the long-term, Malaysia should remain “an attractive destination for foreign portfolio investors, given the potential for higher-than-average growth, and provided that structural reforms are rapidly implemented,” he said

 

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