M'sia needs to address high labour cost: Japan trade unit
Tuesday, September 18, 2007
MALAYSIA needs to address its high labour cost, upgrade infrastructure and launch innovative projects in order to attract more sophisticated investments, according to the Japan External Trade Organisation.
"This country has a lot going for itself but it must look at these few factors with regards to competition from emerging surrounding markets," said Yasuo Hayashi, chairman of the organisation better known as Jetro.
Jetro is a government-related organisation that works to promote mutual trade and investment between Japan and the rest of the world.
Malaysia still remained one of the best investment destinations in the region with advantages such as intellectual property right enforcement, political stability, consistent economic policy and favourable tax regime, Hayashi said recently.
He said the local labour cost is slightly higher compared with emerging markets like Vietnam, although labour skills and language command are better in Malaysia.
"With ongoing local developments, of course the labour cost has been increasing. But Malaysia has to put in more efforts to lessen the burden of foreign investors," he said.
Hayashi said Malaysia also needed to upgrade its infrastructure to facilitate investment logistics.
"I think the infrastructure here has not necessarily caught up with Malaysia's economic development. I hope Malaysia will intensify its efforts to not only build more but also upgrade its existing infrastructure to attract more investors," he said.
More innovative develop-ments and projects such as Cyberjaya and Putrajaya will also help the country in getting foreign investments, Hayashi said.
"These kind of innovative projects will certainly attract more foreign investors here," he said, adding that Cyberjaya was a successful project as it has become an information technology and outsourcing centre for multinational firms while projects like Putrajaya could create a certain hype for the country to get the attention of investors. Bernama
"This country has a lot going for itself but it must look at these few factors with regards to competition from emerging surrounding markets," said Yasuo Hayashi, chairman of the organisation better known as Jetro.
Jetro is a government-related organisation that works to promote mutual trade and investment between Japan and the rest of the world.
Malaysia still remained one of the best investment destinations in the region with advantages such as intellectual property right enforcement, political stability, consistent economic policy and favourable tax regime, Hayashi said recently.
He said the local labour cost is slightly higher compared with emerging markets like Vietnam, although labour skills and language command are better in Malaysia.
"With ongoing local developments, of course the labour cost has been increasing. But Malaysia has to put in more efforts to lessen the burden of foreign investors," he said.
Hayashi said Malaysia also needed to upgrade its infrastructure to facilitate investment logistics.
"I think the infrastructure here has not necessarily caught up with Malaysia's economic development. I hope Malaysia will intensify its efforts to not only build more but also upgrade its existing infrastructure to attract more investors," he said.
More innovative develop-ments and projects such as Cyberjaya and Putrajaya will also help the country in getting foreign investments, Hayashi said.
"These kind of innovative projects will certainly attract more foreign investors here," he said, adding that Cyberjaya was a successful project as it has become an information technology and outsourcing centre for multinational firms while projects like Putrajaya could create a certain hype for the country to get the attention of investors. Bernama
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