Kuala lumpur: Foreign investments brought into Malaysia must deliver tangible benefits to the national economy, including helping to strengthen the trade surplus, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. He noted that the country's import value has reached RM1.45 trillion. While exports continue to grow, the rise in imports has caused the national trade surplus to narrow.

According to BERNAMA News Agency, Johari emphasized the importance of ensuring that the trade surplus does not continue to shrink, as it must grow to benefit the nation. He pointed out that in the last six months alone, the trade surplus reached RM147.15 billion compared to RM151.80 billion for the whole of last year. These comments were made during the Proton's e.MAS 7 PHEV ceremony at the Proton EV assembly plant.

Johari stated that all industrial sectors, not just automotive, are welcome to invest in Malaysia. However, investors must consider the contributions they can make to the country rather than merely treating Malaysia as a market. He cited Proton as an example, highlighting its tax contribution to the country, which has reached RM806 million, comprising corporate taxes, excise duties, import duties, sales taxes, income tax, and corporate tax.

An investment can only generate a significant multiplier effect on the national economy if the investor develops their business in tandem with the local industrial ecosystem, rather than operating in isolation. Johari explained that Malaysia does not want incoming investments to harm existing ones but rather to coexist and complement each other. Using Proton as an example, he noted that Proton lacked the opportunity to boost production through advanced technology, which was provided by Geely, leading to certain intellectual property being registered in Malaysia.

Johari also addressed the issue of imports reaching RM1.45 trillion, which has contributed to a narrowing trade surplus despite export growth. He mentioned that the government has introduced various incentives, including excise duty exemptions, to attract investment. Companies benefiting from these incentives must reciprocate with investments that bring about tangible returns to Malaysia.

He concluded by noting that the government has allowed electric vehicles to enter the country for four years without import or excise duties, resulting in a total tax revenue foregone by the state amounting to RM3.3 billion.