Deputy Finance Minister Chua Tee Yong said that if foreign investors were not confident in Malaysian markets, FDI would show a downward trend.

“FDI in 2014 was at 35 billion ringgit (US$8.68 billion), and the number shot up to 43 billion ringgit last year.

“In fact, in the first quarter of 2016, FDI was at 15 billion ringgit compared to the same period last year when the FDI was at 9.9 billion ringgit,” he said in response to a question by MP Dr Mohd Hatta Ramli in Parliament Monday (May 16).

Chua noted that Malaysia’s economy is expected to progress, driven by domestic demand and private sector contributions.

“This year, private investment is expected to increase by 5.5 per cent, which is still a high percentage given the global economic uncertainties.

“All economic sectors have recorded progress thus far, except for agriculture which had a drop of 3.8 per cent due to low palm oil prices after the El Nino phenomenon,” he said.

Earlier in response to a question by Annuar Musa, Chua said the government is focusing on more incentives and tax benefits for small and medium enterprises (SMEs) to increase their investment and production.

“We have various initiatives through the Malaysian Investment Development Authority and the Ministry of International Trade and Industry to encourage SMEs to export and also invest,” he said.

On the financial front, Chua said the global crude oil price was stabilising, with the average at US$34 in the first quarter of this year.

“We are confident that with this stability, the government will look towards taking proactive steps to reduce the people’s burden,” he said.