Taiwanese investors are steering clear of Malaysia because of the 'terrifying' crimes here, said Dr Ting Chung Cheng, president of Taipei Investors' Association Malaysia (Tiam).

"Two Taiwanese businessmen had been murdered this year and some have become victims of major robberies," he added when contacted today.

Tiam's advisor, Dr Lee Fang Hsing concurred, saying these cases cannot be dismissed as 'minor problems'.

"Crimes involving Taiwanese businessmen have happened in the Klang Valley, Malacca and Johor Bahru," he told malaysiakini .

The Tiam leaders warned that if the Malaysian government failed to act, it would bring about serious consequences.

Inefficient administration

Another contributing issue, according to the duo, was the government's administrative inefficiency.

While conceding that major improvements have been effected in this area, they said Taiwanese businessmen were still facing nitty-gritty problems.

"Take electricity supply in industrial areas as an example. Factories are built but there is no electricity supply although complaints were lodged. However, the problem is solved immediately following instruction by the minister through the media."

Ting and Lee said compared to other countries such as China and Vietnam, Malaysia was no longer the preferred choice of Taiwanese investors.

"Malaysia's competitiveness has dropped. The performance of other countries in the region has been better than Malaysia in the past 10 years. They improve much faster," said Lee.

He added that the number of Taiwanese investors in the past years has been stagnant. Some have even transferred their businesses to Vietnam and China.

The accumulated Taiwanese investment in Malaysia was recorded at RM36.4 billion till June this year with 2,065 projects, making it the third largest foreign investment here.

Effective steps

To improve the situation, Lee urged the government to take effective steps instead of denying the reality of things.

"We want the government to solve the problems, not give endless explanations and excuses," he said.

On existing investors, Ting advised the government to ensure that they remain here by according them more privileges and incentives.

"Existing Taiwan investors have been here for an average of 10 years. Many treat Malaysia as their home.

"The government should encourage them to expand their business in the country rather than attract new investors which is difficult in the current situation," he said.

Labour policy

Meanwhile, the Tiam leaders also revealed that Malaysia's changing labour policy is also affecting Taiwanese-owned factories here.

The government's decision not to rely on foreigners has led to an increase in labour cost.

"Recruiting Malaysian workers with higher wages will increase their cost. Even if they have successfully applied for foreign workers, they still have no confidence in the government's policy which keeps changing," said Lee.

"Who will dare to expand their factory in Malaysia? What happens if they are prohibited from recruiting more foreign labour in the future after they expand?" he asked.