Opinion:
Generally our economy is based on a few politician cum economists perception that it is still growing and extremely competitive based on the coming GST and Iskandar project.

But I believe the flow of FDI slowing down into the country is among the first few signs, foreign investors are not keen to come to Malaysia.

As compare to Thailand, Thailand FDI is double or even triple of Malaysia despite the country government unrest. But technically Thailand is more stable than Malaysia.

Remember, during 1997 Asian Crisis, Thailand was mauled almost to death by the crisis and needed IMF help, Malaysia didn't.

But I also believe the same group also believe in moving their wealth out from the country in case the Malaysia economy collapse? Who will suffered, it is not those group who suggested so-called economic policies but the people of Malaysia.

Sorry to tell you this, our ladies are already going to Australia to be maids. The maid export has already started.

And yes, we are already exporting men to be laborers. Just go to Japan, UK or USA and be amazed at how many Malaysians there are working as dishwasher, construction workers, hair dressers and other similar types of jobs.

But unlike the foreign workers of other nations, Malaysian foreign workers tend to keep their money outside the country.

Our Dear PM wants to double the current income level in 10 years from yesterday, with such a situation, how good is the chances that we could hit GDP of USD15,000/= by 2020???

Did anyone see Mahathir's lame excuse on the low FDI? He said many countries are faced with an economic crisis and they have no money to invest in Malaysia. This came out from the mouth of a man who once ruled Malaysia for umpteen years. How does he account for the FDI in Thailand and Vietnam?

Did anyone see the response of the minister at a student summit on being asked the need of the new palace? Why would investors want to invest here with ministers who cant handle simple questions and yet has a hand in running the government apart from the glaring negative incidences. Why pay APCO?

The NEM was stated by Najib to the HK investors that foreign companies would enjoy bumiputra status in Malaysia, however the other non-bumiputra races would still be effected by selective discrimination. This was the promise offered by Najib to get foreign investors into Malaysia.

"-- not only of diminishing FDIs into Malaysia but for us to do worse than the rest of our neighbors in the region. In 2008 we accounted for 15.5% of FDI flows into SE Asia; in 2009 it was down to 3.7%."

It is hard enough to attract back FDI even if the NEM completely replaces NEP, but this will clearly not happen.

We are a nation self-shackled. We are people shackled when the poor and marginalised cannot reach their full human potential. East Malaysia is shackled, its full human and economic potential held back by deliberate neglect and exploitative policies.

First the tidal flow of human capital, now capital outflow outstrips FDI by a few times. Skilled productive and innovative human capital is getting replaced by cheap relatively unskilled labour, thus handicapped in moving up the value chain.

Looking at others. Pharmaceuticals and biomed-products now feature among the exports of Singapore; robust services sector rebound. It is no wonder that Indonesia is experiencing robust domestic demand as the FDI effects flow through the consumer economy; car sales and other consumption items booming in Jakarta, inflation from domestic demand ---.

Timed out; start all over from square 1; that is Reformasi !

i agreed with all the comments.
Malaysia will die. No hope, no future.
Very soon our ladies are going to the neighbouring country to work as maid and the men going to work in indonesia palm oil estate.

The scary thing about structural economic problems is the fact is happens slowly and started with a few symptoms that we are seeing now, i.e. low FDI, narrowing of the manufacturing sector, loss in competitiveness, brain drain.

Once the decline became entrenched, it will be very difficult and take years if not generations to recover. Phillipines is a good case study. Before the era of Marcos, Phillipines was among one of the Asian countries with great potential, with its US-style democratic system, English speaking population and good natural resources.

We can see how much damage that the Marcos rule in the 1970s to 1980s has done to the country. Until recently, remittances from its thousands of maids around the world ranked among the Top 5 income earned from overseas. According to a WSJ article, there are towns in Philippines where a big number of men/husbands do not work as their pay are 1-2X lower than what their wifes remitted back from their overseas jobs as maids.

The more scary thing about countries like Phillipines is that you have a very small group of ruling elites and very rich families controlling all economic and social life of the country. E.g. like the Aquinos and Cojuangco (late Corazon Aquino's family) are playing key political (President - Benigno Jr) and business (Eduardo Cojuangco - One of richest man). Others include the Macapagal-Aroyo, Marcos and de Alaya families.

So, there is so much concerntration of power and wealth within a small group/family whereas the majority of Filipinos (60-70%) are living in poverty or near poverty.

Will Malaysia end up with the same fate as countries like Philippines or we can progress by reforming like Indonesia?

I wish I have more optimism but have to agree with Dr Lim that TIME IS RUNNING OUT......

On 2nd April a symposium on the Tenth Malaysia Plan was organised by the Asean Strategy and Leadership Institute, Centre for Public Policy Studies and the American Malaysian Chamber of Commerce( AMCHAM). Many speakers have pointed out that the NEP was making the country falling behind in terms of social economic development.

In particular, I wish to point out the comment made by the President of AMCHAM in which he said that as an example of how a US company which wanted to supply products to the government saw the original contract value rise to US$300 million from US$30 million via a Bumiputera owned company.

The whole article can be read in Star newspaper dated 2nd Aug....page B8.

We r harping on FDI only. Plse look
at how many investors had taken their
factories to other countries.

More than tewnty years ago, Japan,Taiwan and Hongkong all started off by making toys and then slowly moving up to higher technology.Today China is the king exporter of toys; see how history is repeating itself. Recent news just confirmed that China is now 2nd after USA in GDP terms and has just taken over Japan. So toy-making is the first step to take. The Melayu should learn this. Start making toys and exporting before talking about becoming developed nation. Anyway would anyone invest in a country that burns churches and temple?
There is no hope; Thailand and Vietnam would be a better place to invest.
Malaysia boleh should now be Malaysia bodoh.

RESPECT BEING OBJECTED

Anyone who wants to be still respected
Let him do what is truly, clearly expected
And thus avoid being always publicly suspected
Having one's freedom fully, foolishly manipulated

(C) Samuel Goh Kim Eng - 030810
http://MotivationInMotion.blogspot.com
Tue. 3rd Aug. 2010.

There are many reasons for collapse of FDI, it doesn't happened overnight.

I think Malaysia now has a dysfunctional system of governance as a result of 20 yrs of corrupt Mahathir regime. Just take a look at the functioning of the government and it's not hard to see signs of CHAOS!

A complete failure of national education policy that flips and flops all the time, producing a bunch of racist and incompetent civil service that damage our competitiveness. Just take a look at the Penang CM vs the Federal Chief Secretary. What a shame.

A broken judicial system that does not carry any credibility in the eyes of the public, eg. Anwar case, RPK case etc.

It is not unreasonable to state that the current bad shape that Malaysia currently in can be totally attributed to the unilateral policy of the evil Mahathir regime. It's the side effect and payback time now for the people to suffer after a few doses of 'steroid' injected by Mahathir during the 80s and 90s.

No sound person or company would invest in a Muslim dominated country where only Islam rules. This is the reason why Thailand has higher FDI; it is a buddishist country; stable and sound.
Keep dreaming on and you will never achieve vision 2020. Talk will never get you anywhere.
You also cheated in your education system with bumi being passed when they failed.

Yes, as far as I know, time HAS RUN OUT because the root causes are all in place.

Talk would not change the little napoleans, talk won't change my people from taking bribes and give billions to their own cronies.

The trouble with Malaysis , these guys do not konw how to rule a country!

Could it possibly be because we're turning more and more into an Islamist state? When the only viable opposition contains a party that prides itself into turning their territory into an Arab like state, it kinda puts modern educated people off.

Philipines is even more corrupted and full of weird regulations compared to Malaysia yet they've overtaken us now. This is something that most people here refuses to even acknowledge or talk about.

The root of the serious economic woes of Malaysia is its ruling Leadership's "Political" rather than the "Business & Economic" agenda! The urgency & depth of our deteriorating problem is not being addressed head on!

The Malaysian Public is being fed with "falsified & feel good" news by the Government-controlled national media! Window dressed information & made-up MIDA data on FDIs, in contrast with UNWIReport 2010, is leading the country dangerously to economic suicide & disaster!

Only the TRUTH of the situation & the Sensible Political Wisdom & Will to deliver "simple" & very necessary solutions can help Malaysia!

Mr Lim Teck Ghee has always been very objective & transparent in all his eye-opening writings. It was the biggest mistake that such an intellectual source & talent has not been tapped for the good of the country. For speaking out the truth, I understand that Mr Lim's tenor in "ASLI' was terminated, much to the dismay & "Great Loss" of the Nation!

Agreed with you,Mr.Jonathan.Just recall the recent happenings between the CM of Penang and the SDO(a federal appointed officer) and the impartial stand of the Chief Secretary of Malaysia,you will know why the foreign investors shunned Malaysia.

What is the incentive for foreigners to invest here? Fun? nada e.g banning beer, lousy entertainment,etc. Transparent? nope. Red Tape? Cheap? Maybe.

But basically every country is either more fun, more transparent, less red tape or cheaper than us. We do not stand out.

We are definitely more dangerous than Thailand. The Reds vs THe Yellow but 1 Thailand.

But we are not.

We cannot trim the Civil service because they can work for 1 Boss.

My 2 cent - going down only how fast and when will be the "Clash of No return " -the Foreigners Know it - why they want to take the risks???.

The government agencies which are tasked to speared head the economy are corrupted. Worst corruption is already entrenched at all levels in the civil service and this has spread to the private sector.

50 years plus of UMNO/BN rule is enough. Malaysia do not have the financial capacity for a new PM and its cronies to plunder the country's coffers anymore.

MM with more than 2 decades of rule has already 'milked' the lembu (i.e. Malaysia) dry, then came AB and his gang, although not as corrupted as MM and gang, this one also did some damage...for awhile only...but still cause damage thanks to you know who-la in the gang (very prominent, young and very very close to AB)....then come now the NR and gang.....so you see, the Lembu (i.e. Malaysia) is nearly the end of its 'milking' days (i.e. going bankrupt soon). So guys better change your MYR to SGD, AUD, USD or even THB for security.

Wat can we expects, when clowns and jockers helm the leadership. Only monkey business will do, we only have a dream.

The BN government denial syndrome is a major contributor of the fallen FDI. We in "Bolehland" likes to remain status quo and fail to acknowledge that why our neighbor countries are more conducive for FDI. We only put our energies on political and race related issues. How can attract investors have confidence in us if we can not even put our house in order.

Basiccaly, this government doesnt see that its own regulations and civil service has killed the goose.

The hopelessly high number of licensing and regulatory authorities as evidenced by its huge civil service has just put off all investors. No one is going to build a factory here if you have to go through 25 regulatory authorities.

A very good example is an orthopaedic surgeon. my neighbour at Leeds. He just refuses to go back because he says he needs to serve a 4 year compulsory service and then will require all soughts of licensing to open a clinic. And mind you he is a Malaysian doctor. Why dont the politicians reign in the runaway civil service. Or have they lost control completely?

There is no way Bill Gates / Steve Jobs, etc are going to fly in and be made fools off by the Malaysian government civil service.

Malaysian politicians must move into less government and truly rid itself of unnecessary civil servants and regulations if Malaysia is going to survive. Its tough. Malaysia complies or it joins the also rans. The future of the country is indeed bleak.

The sad thing is that most of our lawmakers MPs still think that foreign investors overseas most likely will buy our local newspapers (which all drum up "positive" news only)and courier back to their countries to read everyday!These investors only read online and 90% of the malaysian online news are bad news.The only way to save the country is to let Perkasa Ibrahim be PM and all troubles will stop.

Kuli said "we were once Malaysian", we act '1 malaysia' before, we play and win merdeka cup, all-eglan as Malaysian! as it could. P Ramli is more malaysian than any malaysian today!. And, now! we shout "1 malaysia" slogan.

"We were also once a FDI magnet", “We were once having respected judiciary system??? and the list get longer...

Mr. Najib are you saying '1 malaysia' or 'once Malaysia'?

What does the P.M. know about the economy ?
He is just getting Malaysia faster into bankruptcy, he is just interested to dick into the national coffer like the rest of the cabinet especially those from UMNO.