Pic 01: Boy... the Water Creature is big. Really?
Pic 02: Its not that big if you benchmark to a Sperm Whale. Look how many humans are standing on it.
When we take a report, take the source into consideration. Today the news reported that Ministry of International Trade trumpeted that FDI (Foreign Direct Investments) has increased over 400%. But could this be the big picture of macro success. Its comes from those who lacks independent and objectivity.
Impressive as a headline:
"UNCTAD Reports Impressive 409.7 Per Cent FDI Growth In Malaysia In 2010"
Well, shall we do a bit of benchmark with competing nations for FDI.
Year--------------------2010 (US$ billion)-------2009 (US$ billion)
Malaysia---------------- 7.0--------------------1.4
Singapore---------------37.4--------------------16.8
China-------------------100.1--------------------95
Hong Kong-------------- 62.6---------------------48.4
Indonesia---------------12.8---------------------4.9
Thailand----------------6.8----------------------5.9
Source: UNCTAD, 2011
Yep, we have the SMALLEST after Thailand in quantum compared to our neighbours. Thailand's 2 years combined is ahead by US$5billion. Singapore, a tiny population of 4.5million, has 500% more FDI than Malaysia with population of 28million. Which is considered a success? A FDI increase of US$5billion plus seen in Malaysia or >US$20billion as seen in Singapore? Singapore didn't that well if benchmarked to Hong Kong.
The Malaysian Government once said that FDI is smaller but more productive in generating employment if the investments are concentrated in Services industry. The statistics here shows that service-centric economies like Hong Kong and Singapore have bigger FDIs. This means their economic growth prospects are much larger in growth potential compared to Manufacturing centric economies like Malaysia and Thailand.
If you rank the economies based on Corruption Perception Index, you will find a strong positive correlations that least corrupt countries tend to attract higher FDIs underpinned by stronger investors' confidence. In 2010, Malaysia is ranked 59th least corrupt nation compared to Singapore at No.2!! Corporate Governance is key to attracting investment and a competitive advantage to both country and firm. Even Casino-land Macau is viewed as less corrupt than Malaysia.
What do we learn?
This is a simple P3 (Business Analysis) paper using the Benchmark tool when making critical analysis. When analysing ratios which likely will be a main feature in exams, do take care what is said and what is presented as statistics.
Please read below of an article of rather biased and self-congratulatory report of Government's achievements.
Have a Hard Working Year 2011. Work so hard that you put the Japanese and bees to shame.
Cheers.
Dedicated Lecturer- Marcus
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UNCTAD Reports Impressive 409.7 Per Cent FDI Growth In Malaysia In 2010
PUTRAJAYA, Jan 20 (Bernama) -- Investor confidence has returned strongly to Malaysia, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said the optimism was based on the latest UNCTAD Global Investment Trends Monitor: Global And Regional Foreign Direct Investment (FDI) Trends in 2010 report which showed that the total FDI inflow of US$7 billion (US$1=RM3.00) into Malaysia was recorded last year compared with US$1.4 billion in 2009.
The report was released on Jan 17, 2011.
"This is an impressive growth of 409.7 per cent which is the highest recorded in the region as well as among the 153 economies surveyed by UNCTAD," he said in a statement Thursday.
Mustapa said the UNCTAD figures reaffirmed his statement on Dec 11, 2010 that Malaysia recorded significant FDI inflows amounting to US$5.4 billion between January and September based on the data released by the Statistics Department.
Malaysia s achievement was all the more significant as the UNCTAD report showed that world FDI inflows in 2010 remained relatively stagnant with a marginal growth of one per cent to US$1.12 trillion in 2010 from US$1.11 trillion in 2009, he said.
"This achievement is a reflection of increasing investor confidence in Malaysia. This demonstrates investors belief that the Malaysian Government is able to deliver and successfully implement its economic transformation and reform programmes as contained in the New Economic Model," he said.
During the Economic Transformation Programme (ETP) Update earlier this month, Prime Minister Datuk Seri Najib Tun Razak announced additional 19 Entry Point Projects (EPPs) involving RM67 billion in investments and create 35,000 jobs.
Mustapa said the ETP was going into overdrive with more EPPs in the pipeline.
In the manufacturing front, Mustapa said Malaysia attracted higher levels of investments in 2010 compared with 2009.
The ministry had also recently announced approved investments in the manufacturing sector totalling RM47.2 billion last year compared with RM32.6 billion in 2009.
It noted that Malaysia was also back on the radar of international investors as evidenced by the inflow of foreign funds into Bursa Malaysia since last September. The BursA Malaysia hit the highest mark on Jan 7, 2011 at 1,572.21 points.
Mustapa said the UNCTAD numbers clearly negated the claims by certain quarters that the FDI decline in Malaysia in 2009 was due to the government s poor governance and endemic corruption .
"Proactive measures to improve the government delivery system and reduce the cost of doing business as well as close collaboration with the private sector contributed to this investment growth in the country."
"The government will continue to transform the Malaysian economy to enhance its attractiveness as the preferred investment destination in the region," he said.
To further stimulate the investment environment in the country, the ministry said it has established an Investment Committee which Mustapa is co-chairing with Datuk Seri Idris Jala, Minister in the Prime Minister's Department and chief executive officer of PEMANDU, performance management and delivery unit, to monitor, address and resolve cross-cutting investment-related issues in the country.
The committee meets every two weeks.
"I am confident that for 2011 and beyond, FDI inflows into Malaysia will remain strong," Mustapa added.
Source: Bernama, 2011, UNCTAD Reports Impressive 409.7 Per Cent FDI Growth In Malaysia In 2010, http://www.bernama.com/bernama/v5/newsindex.php?id=558160, 21st January
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