International Trade and Industry Minister Rafidah Aziz has been told not to gloat over the amount of foreign direct investments (FDI) flowing into the country.

An opposition leader has argued that Rafidah's comments were marred with the fact Malaysia's inflow of FDI is still low compared to other major Asian countries.

"Malaysia is still not on the radar of foreign investors and the minister should know why," DAP's life advisor Chan Man Hin said in a statement.

He was responding to Rafidah's announcement reported by the Star on Tuesday that FDIs in approved manufacturing projects last year reached a record RM20.2 billion (US$5.7 billion) last year.

This was comparably better than RM17.9bil (US$5.1 billion) in 2005 and RM13.1bil (US$3.7 billion) in 2004.

According to her, the FDIs surged on a backdrop of RM46bil of total investments - both local and foreign - approved for the sector last year, which is the highest level recorded to date.

"Despite the increasing global competition, Malaysia continues to attract foreign outflows, reflecting the country's cost-competitiveness as a manufacturing and export base," she was quoted as saying.

Record highs

However, Chan pointed out that her figures does not correspond with the figures in United Nations Conference on Trade and Development's (UNCTAD) latest investment brief [see chart].

According to Unctad, FDI flows to Asia last year reached a new high of US$230 billion - up 15 percent from 2005.

"China and Hong Kong remain the leading destinations, followed closely by Singapore with some US$32 billion of inflows - an unprecedented level. India also saw record inflows."

Its preliminary estimates for 2006 show that China pulled in US$70 billion, Hong Kong (US$41.4 billion), Singapore (US$31.9 billion), India (US$9.5 billion), Thailand (US$7.9 billion), Malaysia (US$3.9 billion) and Indonesia (US$2 billion).

Chen said: "There is no reason for the minister to boast and gloat over figures which are much lower than even our Asean countries," he said.

He then took potshots at Rafidah saying her efforts to secure a free trade agreement would failed because the US cannot tolerate the New Economic Policy (NEP).

The Malaysia-US FTA talks that started last year have been bogged down by issues considered sensitive including the services sector, investment and government procurement.

'No-go' issues out

Rafidah has said sensitive or 'no-go' issues, such as Malaysia's positive discrimination policies for the Malays, would be excluded from the next round of negotiations.

Chen also quotes Citigroup's report last year that pointed the finger at the NEP for causing foreign investors to fight shy of investing in Malaysia.

"For the same reason, foreign companies are not keen to list their companies on Bursa Malaysia but prefer to list in the Singapore Exchange where there is no NEP.

"It would be wise for the minister to recommend to the cabinet to revoke the NEP," he added.