Clarify Obscure Inconsistent Policies To Attract Investors Govt Told


 
Prime Minister Anwar Ibrahim said Amazon Web Services only decided to invest in Malaysia because they believed the unity government is stable and provides “policy clarity”. (Bernama pic)PETALING JAYA: Prime Minister Anwar Ibrahim trumpeted recently Malaysia’s “policy clarity” that enabled it to attract top notch international companies like Amazon Web Services (AWS) to set up multi-billion-dollar operations in the country.
While that may be true in the case of AWS, the reality is that Malaysia still has a raft of unclear, muddled and inconsistent policies that put off multinational corporations and foreign companies from investing in the country.
Such unclear policies need to be addressed by the unity government if it is to attract big investors, say business groups.
Malaysian International Chamber of Commerce and Industry (MICCI) executive director Shaun Cheah said clear policies are essential for investor confidence, but there were still a few “obscure” ones that need sorting out.
“For instance, applying for a permanent residency visa. Countries like Singapore actively offer talent PR status without needing to apply for one.
“Valuable foreigners who have been residing in Malaysia for many years, and (who have) contributed to the economy should be given PR status so they can continue to be an asset to the country,” he said.
Cheah cited another example of an unclear or arbitrary policy – defining what is considered essential under the Movement Control Order (MCO) during the Covid-19 pandemic lockdowns.
He said alcohol is defined in the Food Act 1983 as a beverage, and which is defined as an “essential item” in the Prevention and Control of Infectious Diseases Act 1988.
“However, the administration (at the time) declared that alcohol is not essential, and businesses were not allowed to operate. In contrast, tobacco – which is not a food – was declared an essential item and (those businesses) were allowed to operate,” he said.
His remarks came on the heels of Anwar declaring AWS only decided to invest in Malaysia because they believed the unity government is stable and provides “policy clarity”.
No-censorship policy
Last week, AWS – the cloud computing division of Amazon.com Inc – announced it would invest US$6 billion (RM25.5 billion) in Malaysia by 2037 to strengthen cloud services infrastructure here.
Cheah said the nearest Amazon cloud data centres are in Singapore. He also pointed out that companies requiring a data storage hub would look at Malaysia to see if it had a “no-censorship policy”.
“For Amazon, the proof of the pudding (that Malaysia provides policy clarity) will be whether contents that Amazon data centres store or host in Malaysia will be censored. This requires a clear no-censorship policy. What can and cannot be included,” he said.
Meanwhile, economist Yeah Kim Leng, who is on the advisory team to counsel Anwar in his capacity as finance minister, said “policy clarity is improving”.
“An example is the recruitment of foreign workers where the intake was increased significantly, direct registration by employers and fees lowered substantially to meet the severe labour shortage faced by numerous industries,” said Yeah, a Sunway University Business School economics professor.
The government’s short-term policy relaxation is accompanied by policy thrusts to accelerate automation and digitalisation, and create better-paying jobs, he added. - FMT


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