PM: Malaysia will continue to welcome FDI
Prime Minister Datuk Seri Najib Tun Razak said the government would remain investor-friendly, making Malaysia an attractive destination for foreign direct investments (FDIs). “Whether the investments are from China, Japan, Saudi Arabia, the United States or Singapore, they add value to our economy, create more jobs, bring in new technologies.” He added that other global corporations from all over the world would be able to see that Malaysia continued to be an attractive investment destination.
On Malaysia-Japan bilateral relations, Datuk Seri Najib said the strengthening of bilateral economic relations between the two countries offers huge potential for both counries. “Malaysia, with its diversified, robust and open economy is the perfect gateway to ASEAN for Japanese firms,” he said. He added that the government would work closely with the Japanese Ambassador to Malaysia, Dr Makio Miyagawa, to facilitate the entry of more investors and tourists from the country. In 2016, Japan ranked Malaysia as its fourth largest trading partner with bilateral trade at RM120 billion.
Fitch: Recovery in global growth strengthening, expected to pick up to 2.9% this year and peak at 3.1% in 2018
Fitch Ratings said the recovery in global growth is strengthening and is expected to pick up to 2.9% this year and peak at 3.1% in 2018, the highest rate since 2010. In its latest Global Economic Outlook (GEO), Fitch chief economist Brian Coulton said faster growth this year reflects a synchronised improvement across both advanced and emerging market economies. The biggest positive forecast revision since Fitch’s March GEO is to the Eurozone. The rating agency said stronger incoming data, improving external demand and greater confidence that ECB QE is gaining traction on activity have resulted in an upward revision of 0.3pps to the 2017 Eurozone growth forecast, taking it to 2%.
The report said the changing impact of fiscal policy on growth in the advanced economies also remains an important factor behind the improved near-term outlook. It said fiscal policy began to shift to a mild easing stance from 2016 in the US and the Eurozone after several years of substantial fiscal tightening over 2011 to 2015. Fitch’s analysis of multipliers suggests this shift has had a significant impact on growth dynamics in the advanced economies and seems likely to provide a further boost to growth over the next couple of years. The GEO said demand growth in the larger emerging market economies is recovering strongly in 2017.
Malaysia on track for 5% growth
Meanwhile, Minister of International Trade and Industry (MITI), Datuk Seri Mustapa Mohamed said Malaysia is on track to achieving five per cent growth in trade in 2017. Speaking at the launch of the MITI Report 2016, he said that the record trade growth of 23.6 per cent in the first four months of 2017 was providing the momentum for the record growth. He said in 2016, trade growth was 1.5 per cent. According to the report, Malaysia’s total trade in 2016 stood at RM1.48 trillion, with exports rising 1.1 per cent to RM785.9 billion and imports rising 1.9 per cent to RM698.6 billion, creating a trade surplus of RM87.2 billion for the nation. Datuk Seri Mustapa added that the electronics and electrical (E&E) sector is still a huge contributor to Malaysian trade, accounting for 35 per cent of the country’s outgoing trade. Going forward, he said that the creative and legal professions, and components of the service sector need to be leveraged as these also generate export incomes for the country.
India’s Tata Group Teams Up With Lockheed Martin To Make Latest F-16s
India’s Tata Group and American defence and aerospace company, Lockheed Martin, have signed an agreement to produce F-16 fighter aircraft in India, hoping to grab potential big Indian Air Force (IAF) contracts. Tata Advanced Systems Ltd (TASL), the Indian conglomerate’s unit involved in military business, and Lockheed will make the latest F-16 Block 70 planes as India looks to modernise and replenish its air force. They will be competing with other manufacturers to grab future multi-billion-dollar Indian military aircraft deals, Tata and Lockheed said in a joint statement yesterday in Paris.