KUALA LUMPUR: Malaysia should be less dependent on foreign investments to achieve its aim of developed nation status, said former prime minister Tun Dr Mahathir Mohamad.
“These foreign firms benefited us less than we expected. Ask Bank Negara, if they are honest, they will tell you there is no capital inflow.
“Foreign investors bring in 10% of their money, 90% is our money which they borrowed,” he said in a talk entitled “Vision 2020 Revisited: How we have fared so far? What to do next?” at the 14th Civil Service Conference here yesterday.
He said the benefit of foreign direct investments (FDIs) to Malaysia was not maximised as foreign investors often received tax exemptions and low interest loans.
“It is possible to achieve Vision 2020 if we change the strategy of attracting FDIs to become an industrialised nation,” he said.
With countries like China, the country could not rely on FDIs and continue to be low cost.
“Of course we won’t become attractive to foreign investors. Wages go up and the cost of living will also go up slightly,” he said.
Dr Mahathir said the Govern- ment could help propel local private companies by providing low interest loans and facilitating licensing.
“This will provide two sources of revenue for the Government. The Government gets back interest (from the loans), and when the company makes a profit, 25% belongs to the Government (through corporate tax),” he said.
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