Friday 29 Mar 2024
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KUALA LUMPUR (Sept 5): Vague statements and inconsistent policies by the new government may dent investors' confidence in Malaysia, the Malaysia-China Chamber of Commerce (MCCC) said today.

MCCC said this in connection with a statement by Prime Minister Tun Dr Mahathir Mohamad on the perimeter wall around the Malaysia-China Kuantan Industrial Park (MCKIP) in Pahang, and the alleged prohibition on the sale of properties in Forest City in Johor to foreigners.

According to the chamber, the relationship between Malaysia and China should have strengthened after Dr Mahathir's recent visit to China, but the ambiguous statements by Malaysian leaders could have affected the confidence of both existing and potential investors with regards to investing in Malaysia.

This may have a serious impact on Malaysia's economy, MCCC said in the statement.

Stressing that it has "always been committed to maintaining and promoting Malaysia-China economics and trade relations, MCCC called on government leaders to be cautious when issuing statements concerning China.

"MCCC, which is made up of multiracial, independent members and private business groups, recognises the need to clarify our view and standpoint on this matter," it said.

The chamber urged the government to establish a special department or group to report to government leaders promptly and clearly on foreign investment policies.

It added that by establishing a transparent and rational communication and information mechanism, government leaders are assured of obtaining the right information.

Referring to the statement on the perimeter wall around MCKIP, MCCC said it was later identified that the statement was merely a misunderstanding.

"The wall is completely reasonable and legal (as) it was built to safeguard the safety of the employees and the assets of the factories.

"MCCC hopes that the official institutions could make a clarification on the untrue statements so as to prevent the incident from being used by people with intention, and to let the industry to move on smoothly," the chamber said.

On Forest City, MCCC said Dr Mahathir's remarks had (initially) "given a shock" to both foreign investors and developers although the prime minister later clarified that there was no prohibition.

"This incident could bring a negative impact on attracting investment and the 'second home' plan. It is necessary for the official institutions to make reasonable explanations and appeasements to safeguard Malaysia reputation," it added.

MCCC said the Belt and Road Initiative is celebrating its fifth year this year, and the willingness of Chinese investors to go global has become stronger.

"Malaysian companies of all races and fields are more willing to co-operate with skilled, talented and experienced China enterprises. In a striving economic era, we will continue to act as a link for Malaysia and China to complement each other on trades," it said.

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