Malaysia draws stronger investment interest from Singapore

"With the stock of Singapore investment currently stands at almost US$30 billion, it indicates a stronger part of Singapore in Malaysia, not only in Johor particularly Iskandar Malaysia but also in other parts of the economic region," he said during a friendly chat with locals and foreign media here on Wednesday.

Also present was Malaysian High Commissioner to Singapore Datuk Husni Zai Yaacob.

Mustapa was here leading a trade and investment mission to Singapore together with Datuk Seri Abdul Wahid Omar, Minister in the Prime Minister’s Department, to update businesses and investors on the latest development and policy measures taken by Malaysia at the Malaysia Business Forum held in conjunction with the mission.

Mustapa, who has been here for the fourth time this year, said although Singapore investors have been investing in Malaysia all these years but now their interest in the other corridors is gaining stronger.

Not forgetting his origin from Kelantan in the east coast of Malaysia, Mustapa said: "We are here not only to promote Iskandar but also the east coast where I come from and other parts of the Malaysian economic corridors."

Apart from Iskandar Malaysia, Mustapa said Singapore companies are now on the ground investing in various sectors including properties, hotels and manufacturing, in Sabah, Sarawak, Melaka and Penang.

Sharing his frank views on development in Iskandar Malaysia which now enters its seventh year, Mustapa said when he first came to Singapore after being appointed to his position in 2009, there was not much confidence seen from investors in Iskandar Malaysia.

"But now we are in the stage where we have lots of Singaporeans who not only go to have a look but invest in Iskandar Malaysia."

Earlier this year, he said Singapore Prime Minister Lee Hsien Loong went over to launch a couple of projects there.

"So that was an endorsement on the part of leaders for Iskandar Malaysia, so there is a strong interest," he said adding they were not only keen on Iskandar but invested big in properties in Sabah, Melaka and Sarawak.

Touching on the Malaysia Business Forum, Mustapa said the event was a platform where he can communicate to share the latest developments in Malaysia with the business community and get their feedback on investment in Malaysia.

He said when he was here before the general election six months ago, there had been some concerns on the part of some Singapore friends as to what might happen after the elections.

As Malaysia wants to continue being the premier investment destination from overseas including Singapore, Mustapa said the business community was aware that there is continuity and stability in Malaysia.

The forum, which received overwhelming response from the business community, was also briefed by Abdul Wahid who talked about the budget, fiscal deficit and "how we are dealing with that".

Based on feedback, Mustapa said: "We got the sense that the business community wants the governments of both countries to move even faster like having seamless travel, reducing barriers, and for us, on how we can further simplify procedures, reduce red tapes, and we got to know some practical problems on the ground.

"Overall they are happy with investing in Malaysia."