MNCs return to Johor for investments


  • Business
  • Wednesday, 11 Jun 2003

BY ZAZALI MUSA IN JOHOR BARU

MULTINATIONAL corporations (MNCs) that had shifted part or their entire operations from Johor to China in recent years are making a comeback to Johor. 

State Industrial Development, Entrepre-neurs, Small and Medium-Scale Industries, Science and Technology Committee chairman Salikon Sarpin lauded this as a good development for Johor. 

He said feedback from the MNCs and international investors showed that Johor was still a conducive place for them despite growing competition particularly from China. 

“They have expressed interest to come back to Johor while those who stayed will raise their investments or expand operations.”  

Salikon said this after chairing a close-door meeting with members of the Malaysian In-ternational Chamber of Commerce and In-dustry (Johor chapter), utility companies, port operators and state government agencies yesterday. 

He believes that investors that had relocated their operations from Malaysia to places such as China and Vietnam were attracted by lower labour costs offered by these countries. 

He said that while there was abundant la-bour supply in these countries, companies should take into consideration other costs of doing business. 

Salikon said that it was only after operating in China that the MNCs realised there were other “hidden costs” which added to their operating expenditure. 

Salikon admitted that there were still weaknesses in the state agencies and departments in handling investment-related matters but they were opened to constructive criticism. 

He said the main priority now was to attract new investments from all over the world and to encourage existing investors to put in additional investment. 

Salikon said the state government would also look into suggestions made by expatriates such as allowing more international school operators to open branches here, better shopping and recreation facilities as well as international arts and cultural programmes. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Across the site