10th August, 2012
KUALA LUMPUR: Malaysia is one of the most attractive business destinations for setting up regional bases among the Asean countries, with its business friendly environment, competitive cost structures and well-skilled workforce, according to a survey by the Malaysia-German Chamber of Commerce and Industry (MGCC).
Its executive director, Alexander Stedtfeld, said the survey – Asean Business Climate Survey 2012, also found that 50 per cent of respondents in Malaysia felt that the overall economy of Malaysia would be maintained by the end of the next 12 months while 30 per cent of them expect it to get better.
Speaking at a media briefing here yesterday, Stedtfeld said the Malaysia-European Union Free Trade Agreement, currently under negotiation, will provide an additional push to the country.
Stedtfeld yesterday also disclosed that trade between Malaysia and Germany was expected to reach 12.5 billion euros this year, slightly up from 11.3 billion euros recorded last year.
Meanwhile, the survey was conducted among MGCC member companies in Indonesia, Malaysia, Singapore, Thailand and Vietnam.
Questions in the survey focused on business confidence, growth intentions and investments within the countries in the past year and the year ahead.
Among key findings, 63 per cent of the companies expect their overall situation to be better by the end of the next 12 months and 59 per cent of them expect capital expenditure to be higher.
Stedtfeld said Germany’s investment in Malaysia was expected to remain broad based as it has been all along.
The investment trend is expected to continue in the areas of electrical and electronics, medical equipment, chemical, pharmaceutical, specialised industries such as industrial adhesive, machineries, automotive and original equipment manufacturer, he said.
A majority of the companies surveyed also stated that the availability of skilled labour was a major factor influencing a company’s engagement in the respective countries.
As Malaysia continues to strive towards a high-income nation status by focusing on innovation-led growth, 82 per cent of the survey respondents in Malaysia saw an increase in the number of workforce while 87.5 per cent of them expect to hire more workforces in the next 12 months.
The survey found that other factors influencing a company’s engagement in the country were domestic, regional and international demand.