Rogers, who was speaking at the CIMB Private Banking Investment Conference yesterday, said the business environment in Malaysia was not conducive for foreign investors.
“There is no level playing field. While there are indicators that they welcome foreign investment, in fact very little is being done about it to attract investors,” he said.
Rogers was part of a panel session entitled “Investment Opportunities, Challenges and Pitfalls in Southeast Asia” at the conference organised by CIMB Investment Bank Bhd.
He said Malaysia could leverage on its rich natural resources and grow if the proper incentives were put in place to attract investors.
“Do not say that Malaysia is a small country. There are small countries like Singapore, Japan and Taiwan who have done well economically, and they do not possess the amount of natural resources that Malaysia has,” he said.
Also speaking at the session were CIMB Group regional economist Song Seng Wun, HwangDBS Investment Management CEO and executive director Teng Chee Wai, KRA Group CEO Karim Raslan, and RCM Asia Pacific managing director and senior portfolio manager Stuart Winchester.
ATTRACTING FOREIGN INVESTORS... Investment guru and author Jim Rogers urges Malaysia to open up its market and make its business environment more conducive to foreigners in order to attract more foreign investments. Photo by Mohd Izwan Mohd Nazam
Song said the region could benefit from intra-regional policies that would propel economies in the region further.
“The new casinos in Singapore actually depend on Malaysians and Indonesians coming in to make them successful. Malaysia could ride on it and find ways to create more opportunities for consumption,” he said.
Song said the Southeast Asian economy was expected to experience a lull for the next 12 months.
“There is uncertainty of growth after the rush of stimulus packages in the various governments. While China and Singapore would exhibit strong numbers for the first half of the year, we expect the third quarter to be quieter than usual,” he said.
Nonetheless, RCM Asia Pacific’s Stuart said opportunities abound for investors to gain in the stock market as it all boiled down to finding a business with a great product.
“Regardless of the economy, you can always find a stock that works. You have to be ahead of the curve and identify them,” he said.
Teng said investors needed to be patient and wait for the right opportunities in the market.
“However, it is hard to find good companies to invest in Malaysia as we know that it’s the real big players that determine the prices. Now is a hard time for investors to pick good stocks at a cheap price,” he said.
Earlier, Thailand’s National Economic and Social Development Board deputy secretary-general Dr Porametee Vimolsiri said there were many investment opportunities in Thailand.
He identified mass transit railway, electricity and telecommunication as the sectors foreign investors could invest in, as part of the country’s 11th Economic and Social Development Plan.
“The cabinet had approved a mass transit master plan in 2008, and there are plans for a railway track rehabilitation. We are also looking at investment in the energy and telecommunication sectors,” he said.
This article appeared in The Edge Financial Daily, July 8, 2010.
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