Highway hijackings of trucks in Malaysia have led to millions of dollars in losses and are eroding investor confidence.

Transport Minister Chan Kong Choy said trucks with consignments of electronic chips and computers were often targeted last year, with losses estimated at RM30 million ringgit.

"The consignments are usually high-value goods such as electronic items and there have been cases where lorries belonging to one transport company have been hijacked 10 times," Chan was quoted as saying in the New Straits Times .

The minister vowed Malaysia's cabinet would tackle the problem, highlighted in a meeting Chan held with an association of truck drivers from Malaysia's northern region, reports said.

"It brings an adverse impact on the investment environment as a lot of high-value goods are based on just-in-time delivery. Such robberies will erode the confidence of local and foreign investors," Chan was quoted as saying in the Star daily.

Fear of losing business

The drivers, who presented a memorandum outlining their concerns to the minister, fear losing business.

"When there are too many hijacking cases, insurance companies refuse to provide any more insurance coverage. The lorry company also faces the risk of losing contracts," said Chan.

The complaints represent another blow to Malaysian authorities, who were left red-faced when chips worth RM50 million were stolen in November from a cargo complex in Penang, known as Southeast Asia's "Silicon Valley".

The robbery, the largest in Malaysia's history, left US semiconductor giant Intel shocked at poor security at the facility and triggered fears that investment in Malaysia could be hit.