KUALA LUMPUR (Oct 8): The ministry of economic affairs is encouraging long-term foreign direct investments (FDIs) in greenfield investments, which would create jobs, boost purchasing power and help create better economic eco-system, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

Speaking at the Khazanah Megatrends Forum 2018 titled "On Balance: Recalibrating Markets, Firms, Society and People", here today, Mohamed Azmin explained that while Malaysia needs to emphasise that short-term capital inflows may do wonders to the stock market, it would not translate into value creation.

"The role of government is especially important in the area of research and development (R&D) such as the development of new technology, particularly those with long gestation periods and high initial fixed costs that are typically too risky for pure private sector firms," said Mohamed Azmin, adding that hence, government support is invariably needed.

He also stressed that firms also need to move away from being too narrowly focused on chasing short-term profits.

"Short-term thinking necessarily means that companies will hold off on reinvesting for the future, therefore reducing their long-term sustainability and profitability," said Mohamed Azmin.

Noting that the Prime Minister will be tabling in Parliament the Mid-Term Review of the 11th Malaysia Plan next week, Mohamed Azmin said issues and development challenges will be identified and steps to tackle them will be proposed, adding that progressive socio-economic policies will be introduced to complement current institutional reforms.