Malaysia lures foreign investors

KUWAIT (KUNA): Board chairman of the Kuwait Finance House (Malaysia branch) Shaheen Al-Ghanim said Tuesday that there are many factors that make Malaysia an important destination for foreign investors. He explained in a work paper presented today to a symposium on investment opportunities in Malaysia that Kuwait Finance House (KFH) has strengthened its strategy in tapping investment opportunities in Muslim countries by inaugurating a branch in Malaysia as an example of the growing capabilities of Islamic financial services all over the world. He said that in the light of economic indicators and positive social and economic benefits Malaysia has become a major player in the sector of innovative financing in the Islamic world. The Malaysian government, he said, has had a key role developing distinct monetary and financial systems integrated to provide key elements of Islamic banking services and products responsive to world money markets and capital markets conditions.

He added: “The interest that we have seen here in Islamic banking services in Malaysia is one of the main factors that encouraged us to enter into this market here where KFH gets clear support of the Malaysian Government and the Central Bank of Malaysia, both of whom encourage financial product innovation. “Al-Ghanim said that the preparations are in full swing now for the opening of the largest commercial complex in Kuala Lumpur (named Pavilion) which has been developed and financed through Kuwait Finance House and is considered the latest milestone in real estate projects in Malaysia.

Clinched

Moreover, the latest deal clinched by KFH in Malaysia involves the development of the city of Iskandar which is an international project to develop an integrated city in the southern part of Malaysia. This investment represents the largest foreign real estate development project in Malaysia and is also one of the largest real estate development projects in the region in which Kuwait Finance House (Malaysia branch) is investing about $330 million.

Al-Ghanim said that the figures show that the Malaysian economy has achieved a growth rate of six percent in 2007 driven by the growth of domestic consumption and the remarkable increase in the volume of private investment and outstanding performance in investment activities in the sectors of services, real estate, oil and gas.

He added that efforts at further enhancing Malaysia’s economic development and competitiveness involved launching the International Islamic Center of Malaysia in 2006 to serve Malaysia as a financial center for Islamic finance. Malaysia occupies a strategic center serving the East Asian region and facilitating the expansion of investment and trade between the region and the Middle East, West Asia, North Africa and strengthens relations among Islamic international financial markets.

In a related development, Kuwait is a top Malaysian trade partner in the region, said Malaysia’s Trade Minister Rafidah Aziz on Tuesday, adding that the bilateral trade had seen remarkable rise over the past few years. Addressing a forum on investment opportunities between the two countries, Aziz said bilateral trade had jumped from $79.3 in 1996 to $507 million in 2006.

Expected

She expected trade exchange for 2007 to see more hike since it hit $672 million that until November; $145 million for Malaysian exports to the Kuwait. Foodstuffs form 21 percent of Kuwait’s imports from Malaysia, equipment and machines 15.6 percent, wooden industries 15.5 percent and electric and electronic appliances 12.2 percent. Oil constitutes up to 87.5 percent of Kuwait’s exports to Malaysia in addition to other chemicals and petrochemicals. Addressing the investment climate at home, Aziz termed Malaysia as “the most attractive” among Asian markets, most of whose economies witness rapid growth, accompanied by developments of legislations and systems to attract more foreign capital.

The total foreign investment approved in Malaysia in 2006 according to the country’s Trade Minister hit $12.5 billion, pumped into 1,077 enterprises, compared to $8.26 billion for 1,027 enterprises in 2005. Malaysia invites the Kuwaiti businessmen and investors to enhance their investments in fields of real estate and Islamic financial services besides development projects for parts of the country, Aziz said.