Business

Published: Tuesday November 24, 2009 MYT 2:33:00 PM
Updated: Tuesday November 24, 2009 MYT 2:44:44 PM

Tell the Malaysian story to global investors, says Najib


NEW YORK: Datuk Seri Najib Tun Razak said Malaysia's message of reforms and transformation needs to be told to foreign investors consistently or risk being overshadowed by countries like China and other emerging economies.

The Malaysian Prime Minister also said Malaysia may need to introduce further measures to make its capital market more attractive to foreign fund managers if it does not want to be marginalised by them.

Following a series of meetings with American fund managers and investors as well as corporate figures here on Monday, Najib said: "I think they like the Malaysian story, but they want us to continue our reform measures because they say that the outcome is very important."

Speaking to the Malaysian media covering his visit to New York, he said they were also receptive to the proposed re-listing of Maxis Bhd.

"They were saying that it's a move in the right direction as this will give them a bigger opportunity to invest in bigger companies as some of them are managing funds worth trillions of dollars," he said.

Elaborating further, the Prime Minister said American financiers and investors had pointed out the lack of suitable companies for them to invest in Malaysia.

"They would like to see more Malaysian companies with big market capitalisation. They're not keen on small companies. So, size in terms of market capitalisation is important for them. They want to see more companies like Maxis Bhd," said Najib.

He also said the investors indicated that prospective Malaysian companies should also adhere to the principles of good governance.

"In addition, they would like entities like Employees Provident Fund, Khazanah Nasional Bhd and Permodalan Nasional Bhd to reduce slightly their holdings in companies so that shares are available on the open market," he said

Najib said he would raise all suggestions and feedback gathered in New York with the National Economic Advisory Council for further discussions and decision.

"We need to study all the suggestions, including the implications of listing certain companies," said Najib who is visiting the United States for the first time as Prime Minister.

Najib said the government would need to read the signals coming out of New York correctly and act accordingly in order to make the Malaysian capital market more attractive.

"Malaysia is no longer the darling of the world's capital markets. So, we have to make Malaysia more exciting by engaging them and asking them what else do we need to do. And, we'll decide whether those things are doable," he said.

To a question, the Prime Minister said the government would do more to attract foreign direct investments (FDIs), including from the United States.

"I'm not happy because overall FDIs has gone down. We need to do whatever we can to resuscitate FDIs and domestic investment as well," he said.

Earlier, Najib held talks with Genting Chairman Tan Sri Lim Kok Thay, Chelsea Property Group Chief Executive Officer John Klein, CIMB Chief Executive Officer Datuk Seri Nazir Tun Razak and Forbes Inc President, Steve Forbes.

The Prime Minister disclosed that the factory outlet centre in Iskandar Malaysia, a collaboration between Genting and the Chelsea Property Group, would be ready by mid-2011, with construction scheduled to begin in the first quarter of next year.

It aims to attract four million visitors a year.

"I'm happy that the outlet is to be sited in Malaysia. Besides promoting tourism, Malaysian small-and-medium industries will have the opportunity to get involved," he said, adding that local products like batik would likely be featured alongside international brands.

Najib also said he has been invited to attend a nuclear security summit in the United States April next year and to deliver a lecture at the Harvard Business School.

On his meeting with the publisher of Forbes magazine, the Prime Minister said Forbes proposed that Malaysia host the Forbes Global CEO Conference in 2011.

"I've decided in principle that we can accept the invitation for Malaysia to host the conference again," he said, adding that Forbes was happy with the one hosted by Malaysia in September.

The 2010 edition will be held in Australia. Najib and his wife Datin Seri Rosmah Mansor later left New York for Washington, enroute to Trinidad and Tobago, for the Commonwealth Heads of Government Meeting. - Bernama


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