Monday, January 24, 2011

The challenge behind the Quantum leap in foreign investment

In 2010 PENANG State broke the record attracting more than Rm12 billion of foreign investment and became the top investor destination in Malaysia for the first time in history. A great part of the foreign investment is contributed by expansion and diversification projects by the existing electronic firms in the state.Is there any challenge behind the Quantum leap in foreign investment?.I am also of the opinion that the quantum leap in foreign investment is not solely due to the effort by Lim Guan Eng led Penang State government , but the key factors are the market force and investment atmospheres. The electronic and telecommunication industry has entered into the new transformation stage characterized by short product life cycle and range of varieties,high levels of customization and automation. The PENANG State which is also known as Silicon Valley in Malaysia of course is not exclusive of this transformation. .In order to remain
survive and remain competitive , it is natural for the manufacturing firms to expand their automation lines and upgrade their manufacturing and research cope for the change in the market trend.Despite tough competition from countries in this region , the investor still make Malaysia first choice of destination for investment because of our country political stability and world class infrastructure. But just depend on these two factors alone is not sufficient to sustain our growth .Minister of Foreign Trade Dato Dr, Mustapha pointed out , during his dialog with foreign investor , one of the biggest concern of the foreign investor in Malaysia is the shortage of professional and skill worker , therefore it is now important for us to give priority to human capital development and at the same time we have to encourage each company and individual worker to actively participate in life long learning program. This is to ensure that we main dynamic and innovative admist the challenge that lies ahead.

No comments: