Malaysian companies, including government-linked firms, are open to investments from Singapore's state investment arm Temasek Holdings, Malaysian trade minister Rafidah Aziz said today.

"We are open. Should there be opportunities, they (Temasek) should discuss it with these companies," Rafidaz told reporters after attending a seminar involving Singaporean and Malaysian business leaders in Singapore.

She said that while the Malaysian government has some stakes in these companies, "they are not government companies per se" so the firms make their own decisions.

"It's a business decision that they should make. If it is convenient to have a joint venture in whatever way or having equity from Temasek or whichever party that's linked to the government in Singapore, it's their decision," she said.

Cash-rich Temasek has been increasingly scouting for investment opporunities in the region as it expands beyond the small domestic market, including in Singapore's next-door neighbour Malaysia.

There have been reports Temasek was interested in buying a stake in Malaysia's Alliance Bank, the second smallest of the country's 10 domestic lenders.

Analysts have said Temasek's interest in Malaysia could be fuelled by the improvement in bilateral ties after the election in March of Prime Minister Abdullah Badawi, who is seen as more friendly than his predecessor, the combative Dr Mahathir Mohamad.

Failed bid

In 2001, Singapore Telecommunications Ltd (SingTel) failed in a bid to buy a stake in Malaysia's Maxis Communications allegedly due to opposition from politicians because of the government's controlling interest in SingTel.

Rafidah however said Friday that except for defence, all other sectors in Malaysia are open to foreign equity as long as they are "viable" ventures and the investors meet the required criteria.

In some cases, the state-linked Malaysian companies may seek government advice if a potential foreign investor requests to have a higher stake than what is normally required, she added.

Malaysia allows 100 percent foreign equity in manufacturing and related services only, Rafidah said. - AFP