COVID-19 has stemmed the flow of foreign direct investments (FDIs) worldwide. FDIs will decline by as much as 40 per cent in 2020.
Malaysia may lose as much as half of the flows of last year. For Malaysia, therefore, it is not so much the quantity but the quality of FDIs that should matter.
Accordingly, in its quest to attract the desired investments, the government has designated three catalytic and two high growth sub-sectors in manufacturing.
Manufacturing still retains the nation’s focus despite its shrinking contribution to the gross domestic product (GDP). Its share of GDP fell from 32 per cent in the 1990s to 20 per cent this decade.
This is because of the inherent competitive advantage that we have built in manufacturing since the development of the electrical