Malaysia has jumped five rungs – from 11th in 2014 to the 6th – in this year’s Baseline Profitability Index (BPI), a ranking of destinations of attractiveness for foreign investors, published by the Foreign Policy Magazine.
Among Asean countries, only Malaysia and Singapore featured in the top 10. The BPI ranking, which covered 110 countries across six continents, reaffirms that Malaysia is an attractive profit centre in this region for investors.
In a statement, Malaysian Investment Development Authority chief executive officer Datuk Azman Mahmud said this endorsement dissolves lingering misperceptions and attests the country’s improving economic fundamentals and the government’s prudent, proactive and pragmatic policies to restructure and diversify the economy.
He said the BPI ranking sends a clear message that Malaysia provides a friendly business environment that makes it an attractive place to invest.
This ranking is based not only on historical conditions but also on expectations about conditions prevailing over the next five years, he noted.
“The country has consistently registered a double-digit growth of gross fixed capital formation (GFCF) since 2010.
“In fact, Malaysia has exceeded the average annual investment target of RM148 billion set in the 10th Malaysia Plan with a growth rate of 12.6% per annum.
“In the first quarter this year, the GFCF has also surpassed the Q1 2014 figures by 13.6%, from RM45.3 billion to RM51.5 billion in Q1 2015.
“As at June 2015, MIDA already has several exciting projects in the pipeline with investments worth RM25.8 billion for the manufacturing and services sectors.”
The BPI, introduced by an adjunct professor of New York University’s Stern School of Business since 2013, uses a holistic approach based on eight factors that will affect the ultimate success of a foreign investment.
These factors cover economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates.
-The Rakyat Post