Muhyiddin: Government will review the implementation of the NEP

By Neville Spykerman-The Malaysian Insider

KUALA LUMPUR, Feb10 — Malaysia will review the implementation of the New Economic Policy (NEP) and liberalise certain sectors to provide new avenues for foreign and domestic

investment in Malaysia.

The government is looking at liberalising various sectors amid a gloomy outlook this year for manufacturing and services.

Minister of International Trade and Industry Tan Sri Muhyiddin Yassin said the liberalisation of some of the sectors will take place “sooner than later”.

“We will slowly liberalise (the NEP), wherever possible and when we are ready.”

Muhyiddin, who was speaking during the Malaysian Industrial Development Authority (MIDA) annual press conference, today, was responding to calls from CIMB Bank Chief Executive Officer Datuk Seri Nazir Abdul Razak, for the NEP to be reviewed.

Nazir, who spoke last Tuesday, said the policy, was putting a strain on the Malaysian economy and society.

However Muhyiddin said the NEP, in its original form, was perfect and good but acknowledged weaknesses during implementation.

He disagreed that the policy in itself had to reviewed.

Meanwhile he said the outlook for the manufacturing and services sectors this year was “not too good” as developments in the global economy continue to influence investment inflows, into Malaysia.

He said Malaysia was anticipating a slow down but would concentrate on attracting investment from surplus capital regions, such as the Middle East.

MIDA is set to organise 25 specialised project mission targeted at attracting specific industries and sectors to Malaysia.

Muhyiddin said Malaysia was not very bullish about the situation but there were glimmers of hope and opportunities for the country.

He said some companies in Japan are considering relocating some of their motorcycle and vehicles assemblies to Malaysia, because of the exorbitant cost of manufacturing there.

“It’s these types of companies which are interested in seeing what Malaysia has to offer and are being targeted by MIDA.”