1MDB 'not an obstacle' to Malaysia's FDI - Finance Ministry

-A +A

KUALA LUMPUR (Nov 2): The Finance Ministry said on-going 1Malaysia Development Bhd (1MDB) investigations had not deterred foreign direct investments (FDI) here.

In a written parliamentary reply today, the Finance Ministry said foreign investors were here for the long term and they had taken the nation's economic growth prospects into account.

"These include the country's macro-economic growth, low umemployment rate, high savings, adequate international reserves and government debt, which is still within control.

"1MDB is not an obstacle to investments coming into the country," the ministry said.

The ministry said this in response to a question by Kulim-Bandar Baharu MP Datuk Abdul Aziz Sheikh Fadzir, who queried whether state-owned 1MDB had adversely impacted the country's FDI.

According to the ministry, Malaysia had attracted RM22.4 billion worth of FDI in the first half of 2015 (1H15) compared to RM17.5 billion in the second half of 2014.

The ministry also said the Malaysian Investment Development Authority had approved projects worth RM113.5 billion in 1H15 versus RM112 billion a year earlier.

The ministry noted that although there were domestic issues being raised, FDI continue to flow into the country.