Thursday, 26 July 2018

(The Star) FDI in manufacturing sector to remain subdued this year

PETALING JAYA: Foreign direct investment (FDI) flows into the manufacturing sector is expected to remain subdued in 2018, according to Ambank Research.

This is on the back of the government’s increasing focus on quality investments in targeted ecosystems, which is likely to yield a positive impact on the domestic economy.

“Thus, we expect the strategy to zoom in on developing and enhancing local supply chains to support multinational companies.

“On the services side, we believe the main drivers will be global establishments, healthcare, education and hospitality,” AmBank group head of research and chief economist Anthony Dass said.

On Tuesday, the Statistics Department said FDI into Malaysia fell 12.7% or RM6bil last year to RM41bil from the record RM47bil achieved in 2016.

Dass pomted out that the decline in FDI in 2017 was due to slower growth in investments into the manufacturing and construction sectors.

He said the decline was also in line with global FDI inflow which dropped by 23.5% to an estimated US$1.43tril due to moderate global economic growth and world trade volume.

“Despite the current volatilities on the global front driven by noises like the risk of emerging market debt crisis, trade war and currency war, we are off to a good start in 2018,” he said.