Malaysian Minister of Finance Tengku Zafrul Abdul Aziz has said that Malaysia is confident of attracting more foreign investments this year after a big decline in 2020, and is looking at incentives to help support that goal.
Incentives had traditionally been linked to the size of investments, but that they could also focus on “soft skills,” the official was quoted by Reuters as saying.
He explained that the drop in foreign direct investment (FDI) last year was largely due to the one-off impact of the coronavirus pandemic and political uncertainties.
In a January report, the United Nations Conference on Trade and Development said FDI into Malaysia plunged 68 percent last year, the biggest decline in Southeast Asia.
Malaysia is also considering reintroducing consumption tax to increase tax revenue.