Basic Infrastructure Key To Making Sg4 A Success Says Business Group


Former prime minister Dr Mahathir Mohamad has advised Perikatan Nasional (PN) leaders to adopt a more “business-friendly” approach to attract investments. (Facebook pic)PETALING JAYA: Basic infrastructure will play a pivotal role in making the four PAS-led states, collectively known as the “state government four” (SG4), more attractive to investors, said an SME group.
William Ng, the president of Small and Medium Enterprises Association of Malaysia (Samenta), said the four menteris besar should use their respective mandates to bring in more investments.
“The states need strong infrastructure to attract investors, in terms of connectivity, availability of basic utilities like energy and water, a strong SME network to support all businesses, and consistency and transparency in policies,” Ng told FMT.
He was commenting after former prime minister Dr Mahathir Mohamad advised Perikatan Nasional (PN) leaders to adopt a more “business-friendly” approach to attract investment.
Mahathir is an unofficial adviser to SG4, which comprises Terengganu, Kelantan, Kedah and Perlis. The grouping has set the economic development of the four states and the people’s well-being as its goals.
Meanwhile, Universiti Kebangsaan Malaysia economist Lai Wei Sieng said adopting a business-friendly approach would also create job opportunities and enhance overall economic activity.
Lai said being business-friendly went beyond merely allowing the sale of alcohol and gambling establishments.
“SG4 is known for being Islamic, so it can welcome Islamic-friendly businesses. Investments are not limited to (the availability of) alcohol or entertainment per se. There are many other opportunities that can be explored,” he said.
Previously, tourism, arts and culture minister Tiong King Sing said tourists in Langkawi had complained to the ministry about harassment by government officials in relation to the dress code and alcohol consumption.
SME Association of Malaysia secretary-general Chin Chee Seong argues that such prohibitions could send the wrong message to investors, preventing them from setting up businesses there.
He said they need to remove certain religious strictures from their administration to be seen as being business-friendly.
Chin added that natural disasters, such as seasonal flooding at year-end, could also create uncertainty among potential investors about establishing businesses, especially in the east coast states.
International business consultant Azran Deraman said the SG4 states hold significant economic potential.
However, he said, the lack of infrastructure resulting from “political turbulence” over the past few years presents a challenge when it comes to attracting investments.
“I believe Perikatan Nasional is genuinely striving to draw investors to states under it.
“However, for sustainable progress in attracting investments, SG4 must work closely with the federal government, including the international trade and industry ministry, the economy ministry and other pertinent ministries,” he said.
Azran, a former eastern region director for the international trade and industry ministry, said synergy between states and the federal government was vital, as matters relating to investment approvals, incentives, and sustainable infrastructure development remained within the federal government’s purview. - FMT


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