Malaysia lost investments worth RM1.1 billion between 2001 and 2002, after 10 foreign companies relocated operations to other countries.

Parliamentary Secretary to the Ministry of International Trade and Industry (Miti), Fu Ah Kiow, said six companies left Malaysia in 2001. The others followed suit last year.

"Five of them moved to China. The rest went to Mexico, France, Sri Lanka, Indonesia and Thailand," he said in response to questions from Abdul Rahman Yusof (Keadilan-Kemaman) and Liow Tiong Lai (BN-Bentong) in the Dewan Rakyat today.

Gloomy scenario for workers

Fu said five of the companies had been involved in the manufacture of food products, electrical products and components, textiles, furniture and jewellery respectively.

Meanwhile, in 2001, 34 manufacturing companies wound up operations, involving a total investment worth RM2.2 billion.

Another 24 manufacturing companies wound up last year, which affected investments worth RM638.9 million.

The closure of these companies saw 9,486 workers being retrenched in 2001 and 6,994 more last year.

The downsizing of 66 other companies led to 10,352 more workers being retrenched in 2001. Last year, 51 companies downsized, causing 5,611 job cuts.

However, Fu said, the government has been offering incentives to make Malaysia a more competitive and attractive investment destination.