PETALING JAYA: The foreign direct investment (FDI) inflow momentum is expected to continue despite the cut in the Overnight Policy Rate (OPR) as investor confidence in Malaysia’s economy remains strong, says Deputy Finance Minister Datuk Ir Amiruddin Hamzah.
He said the economy’s intact fundamentals and competitiveness as well as the government’s prudent moves to ensure a good fiscal environment have also enhanced investor confidence.
“Investors don’t just look at the OPR, as many other economic factors are also considered when making an investment decision.
“We need to give top priority to foreign investment inflows, and give quick approvals to FDI proposals as reflected in our improving Ease of Doing Business ranking,” he told reporters after launching the 38th International Customs Day celebrations today.
He was asked to comment on the decision yesterday by Bank Negara Malaysia’s Monetary Policy Committee to reduce the OPR to 2.75% from 3% as a pre-emptive measure to secure the improving growth trajectory amid price stability.
The committee said downside risks remain due to geopolitical tensions and policy uncertainties in several countries, although monetary easing across major economies in the second half of 2019 has helped financial conditions and is expected to continue to support economic activity.
Meanwhile, Amiruddin said 160 foreign online service providers have registered with the Royal Malaysian Customs Department since registration began on Oct 1 last year.
“That is a good sign because when they register, it means they have the intention to pay tax.
“There are still foreign companies that have yet to register, but the big ones already have,” he added. – Jan 23, 2020, Bernama