Record FDI levels a key triumph for Malaysia PM: Umno official

Malaysia has rekindled foreign investors' interest in the country under the watch of Premier Ismail Sabri Yaakob, receiving record levels of foreign direct investment (FDI), said economic director in the Prime Minister's Office Shahril Hamdan yesterday.

Crediting Prime Minister Ismail for making Covid-19 lockdowns "a thing of the past" and his ability to keep economic activities running, Mr Shahril said: "I think many understate his achievements in office." He also highlighted how, in less than a year since Datuk Seri Ismail took on the premiership last Aug 21, foreign direct investment (FDI) figures have hit records for two quarters.

Government data shows that Malaysia approved RM24.9 billion (S$7.8 billion) in the final quarter of 2021 and RM26.8 billion in the first quarter of this year.

The next growth report will also reflect a figure that will "impress", Mr Shahril said.

He was speaking as a panellist at The Straits Times Connect webinar, titled Malaysia: On The Path For A Reset? moderated by ST foreign editor Bhagyashree Garekar.

His fellow panellist, ST's Malaysia bureau chief Shannon Teoh, said critics had once panned Malaysia as "a sick man of Asean" when investment figures in 2020 were "very low".

Noting that the investments cited would take some time to actualise and create jobs, he said: "But it is a good signal, and I think if you were in the administration right now, you want to keep this momentum going."

The question is how much time there is for this government to make an impact, he added, referring to growing speculation that Malaysia may go to the polls soon.

A general election must be held by September 2023, but the Prime Minister may decide to call it before that.

Mr Shahril said polls may be called within six months.

Mr Teoh, however, said it could benefit Mr Ismail's party Umno, which leads Malaysia's Barisan Nasional (BN) coalition, if elections were held early next year.

This could give the administration time for inflation to taper off as well as for Umno to sort out its infighting. The party is divided into two camps - one loyal to Mr Ismail and the other to party chief Ahmad Zahid Hamidi.

Mr Shahril, who is also Umno's information and deputy youth chief, called for party unity last week.

"I think the public now is waiting and needing a strong government, stable politics.

"They want to see an Umno that is not riddled with internal divisions," he told the panel yesterday, adding that "a unified Umno is probably a strong favourite for the next election".

Mr Teoh added: "I think what any government going into the next election should be campaigning on - not just in the interest of the country or even in the interest of your own party - is about what you can promise people economically.

"I think that's the first question that would be on their minds... How is the government going to protect my livelihood, my financial situation."

On a viewer's question about the prospect of former premier Najib Razak making a comeback as prime minister at the upcoming election, Mr Shahril sidestepped the question and dismissed candidates other than the incumbent as "speculation".

"It's clear that our PM candidate is Ismail Sabri," Mr Shahril said.

While conceding that other politicians have made a comeback after being jailed or convicted, Mr Teoh added: "I don't think that it would be wise for himself or the party to seriously entertain this idea of him becoming the prime minister again in such a short space of time."