Dr M: Malaysian investors should get perks too

LANGKAWI: Former prime minister Tun Dr Mahathir Mohamad said
local businesses should be given incentives like those given to foreign
multinational corporations to invest in Malaysia.

He said the
country has people with capital and skills to handle large businesses
and the government should back them up with incentives like lower
taxes.

"So, the money will stay in Malaysia, which will create
jobs, better pay and bigger exports. "Money from foreign direct
investment (FDI) goes out from the country," he told some 100
participants at the MIDF Investment Forum here on Saturday.

Dr
Mahathir said if local businesses grow big, it can help Malaysia achieve
Vision 2020 whereby the country produces high-value products, people
earn higher pay and productivity also increases.





He noted that Malaysia is too dependent on FDI. He understands that
foreign investors only bring 10 per cent of their investments into
Malaysia, while the rest are borrowed from locally-incorporated foreign
banks.

He said the FDI have over the years generated so many
jobs until the country needs foreign workers to fill the vacancy, adding
that FDI should only be allowed if it contributes to the transfer of
technology and higher pay for the locals.

On concerns about
budget deficit and the government debt that represents 60 per cent of
gross national product, Dr Mahathir said: "It is not that the deficit is
not acceptable, but the question is do you borrow from inside the
country or outside?"