Thirdly, on international competitiveness.

The Royal Address quoted the World Competitiveness Yearbook 2006 where Malaysia’s position has improved from 28th place in 2005 to 23rd place in 2006.

Since last month, the government has tried to generate a “feel good” atmosphere among the people with the message that good economic times are back.

Parliament was told that since 3rd January 2007, the Bursa Malaysia Composite Index has been recording an encouraging performance and exceeded 1,200 points, a level which has not been reached since the Asian currency crisis in July 1997. There was the record 2006 trade volume breaching RM1 trillion. We are told that in 2006, “total investments in the country remained strong, reaching its highest level in the history of our nation”.

On February 13, International Trade and Industry Minister, Datuk Seri Rafidah Aziz announced that Malaysia is back on the global investment map, with a record RM46 billion investments in 1,077 approved manufacturing projects last year by local and foreign investors — a 48 per cent jump from the RM31 billion invested in 2005. This was made up of RM20.2 billion of foreign investments and RM25.8 billion in local investments.

Is the government right that Malaysia is “out of the woods”, dispelling the gloomy news in the past few months that Malaysia is in danger of dropping out from the radar of foreign investors because of increasing lack of international competitiveness, whether in efficiency of public service, quality of education, good governance, transparency and integrity?

The United Nations Conference Trade and Development (Unctad) World Investment Report 2006 last October revealed unflattering figures about Malaysia for the year 2005, viz: Read the rest of this entry »