Many investors will leave the Klang Valley if the water supply problem in the Klang Valley area is not resolved.

International Trade and Industry Minister Mustapa Mohamed said this was stated by the industry operators themselves as the water supply problem was a burden to them.

Therefore, Mustapa said, harmonious relations and good cooperation between the federal and Selangor governments were very important to avoid adverse effects on the country's economic development due to the water problem.

"The Honourable Member from Tanjung Karang (Noh Omar) and I have had dialogues with industry operators in Shah Alam, Selangor, where they raised the water supply issue.

"They are worried about the water issue and told us that if the problem is not resolved, they would be reviewing their position here," Mustapa said when winding up the debate on the Promotion of Investments Bill (Amendment) 2014 in Parliament this evening.

Car prices to come down by 20 to 30 percent

In reply to the accusation by Rafizi Ramli (PKR-Pandan) that the government would not reduce the price of cars as promised, Mustapa said the BN government would bring down the price by 20 to 30 percent over a five-year period, beginning 2013.

"It's not that there are no motor companies bringing down the prices of their cars. For example, the price of the Proton Saga 1.3 has dropped by 12 percent.  So, the accusation of the Honourable Member from Pandan is baseless," he said.

Earlier, Mustapa said the Promotion of Investments Act 1986 (Act 327) needed to be amended to stimulate economic growth, to strengthen the nation's resilience and to create a dynamic trade and investment climate.

The Dewan Rakyat sitting continues tomorrow.

- Bernama