BN HAS FAILED TO ATTRACT FDI?

By : SAPP MEDIA

SAPP CLC Organising Secretary Clement Lee says the table above indicates that the BN-led government has failed to attract Foreign Direct Investment (FDIs) into Malaysia due to unfriendly investment policies, red-tape, hidden costs, and unattractive investment packages. For the past 13 years, most of the listed companies in KLSE remain uncompetitive compared to those of our neighbour, Indonesia.

A brief introduction to the table above, in 1997 the economy crisis that hit Malaysia, KLSE index had dropped to 589 points compared to the Indonesia Index (Formerly known as Jakarta Index) which had dropped to 401 points. Fast forward to April 2011, KLSE index has increased to 1557 points (264.35%) but the Indonesia Index has increased even more staggeringly to 3735 points (931.42%) which is more than triple that of former.

*Supra State covers production activities that beyond the centre of predominant economic interest for any state in Malaysia.

From the table above, Sabah recorded the 6th largest GDP contribution which stood at 5.9% in 2009, boosted by very encouraging sentiments in crude oil production, but unfortunately most of these were contributed by non-local based companies operating in Sabah, the likes of IJM, IOI and FELDA just to name a few . This caused our state to suffer losses whereby billions of Ringgit was and still is being siphoned out of Sabah every year.

We are not against any non-local companies setting up businesses here, but why do we need them to invest in an industry that our local companies are already very capable and eager to develop, engage and participate in?

Lee further noted that, there are only about 25 Sabah-based companies listed in KLSE as of 2011, a figure which contributes to only a trivial 2.2% of the total number of listed companies in KLSE which currently stands at 1132.

Sabah is the 2nd largest state in Malaysia, and generously blessed with vast and fertile agriculture lands. Sabah also has the 3rd largest population in Malaysia at around 3.12 million, based on the findings of the Human Development Index (HDI)'s New 2010 Report from Malaysia Statistic Department.

Unfortunately, the state also has the highest poverty level in the country, standing at 16%, which is more than three times the national average. Due to the lack of industries that can provide steady jobs for professionals and highly skilled workforce, large numbers of Sabahans have literally migrated or moved away to either, the Peninsular, Singapore, Australia and some to as far as Britain and America.

After 47 years, dare I say, faithful years of being part of Malaysia, the BN-led government has failed to improve the economy let alone the standard of living of fellow Sabahans.

Sabah has seen its economy dwindled, its standard of living obscured, its people, the poorest of any states. If we do not make our collective voices heard, and diligently vote for change, we are likely to see a familiar pattern of continuous downward spiral of all things that are relevant and close to our hearts.