The New Economic Model (NEM) will need specific measures to address concerns of falling foreign direct investment (FDI) and local private investment, according to the Centre for Public Policy Studies (CPPS).

Its chairperson Ramon Navaratnam said to achieve the six percent growth in gross domestic product (GDP) as targeted under the 10th Malaysia Plan, there was a need to boost the faltering level of private investments.

"However, the policy and environment do not make it feasible to achieve the target," he said during the National Symposium on the 10th Malaysia Plan in Petaling Jaya today.

Edmund Terence Gomez from Universiti Malaya's faculty of economics and administration, said there was lack of political will to face the challenges that Malaysia was facing currently.

"Investors are not responding to what the government says," he said during the symposium.

Gomez said to attract FDI, there was a need to address the human capital and education system of the country to prevent people from leaving the country to look for long-term rewards and careers.

"Another issue is that while the government talks about 1Malaysia, which has inspired many Malaysians, the kind of discourse from political parties is more race-based," he said.

According to Gomez, there must also be clear evidence that institutions acting on corruption is independent and have capacity to act freely as this will promote investor confidence.

"There is criticism that if there is any action is taken against corrupt individuals, what we see is only selective prosecution," he said.

American Malaysian Chamber of Commerce president Nicholas S Zefferys said the government had made significant steps in terms of the competition law to create a level playing field.

"However, there is a need to look at labour laws," he said.

- Bernama