Malaysia is set to attract an inflow of investments and funds from the Middle East, particularly Kuwait, to finance various projects in its manufacturing and services sector. Malaysian Investment Development Authority (MIDA) Director General Datuk Jalilah Baba told Bernama news agency that most of the Kuwait investors were looking to finance viable projects that would ensure continuous return on a long-term basis. They are very keen on alternative energy production, he said. “Alternative energy is very much in demand and they know it will have consistent returns. They don't have the technology, but they do have the funds to invest,” she said on the sideline of the Malaysia International Islamic Financial Center (MIFC) roadshow to Kuwait and Saudi Arabia here on Thursday. As at August this year, 27 manufacturing projects from the Gulf Cooperation Council (GCC) countries have been approved with investment of $1.207 billion with United Arab Emirates accounting for 17 projects worth $1.164 billion and Saudi Arabia 10 projects valued at $42.23 million.In the services sector, she said Malaysia approved 2,439 projects with investments of $19.3 billion in 2007. At a luncheon earlier, Jalilah presented a talk on “Investment Opportunities in the Manufacturing and Services Sectors in Malaysia.” She said other segments that have also attracted Middle Eastern investors were tourism projects and food security. “We would be negotiating in a few days for projects such as wafer fabrication. They have expressed interest in financing those projects. “At least if we can provide the financing, others would come and locate their projects in Malaysia,” she said. Jalilah said that one Kuwaiti group which has a diversified portfolio from manufacturing to finance, was also keen to locate its operational headquarters in Malaysia to serve the Asian region. Declining to identify the party, she said the group has also submitted an application to set up an asset management company with Securities Commission. “We have been establishing contacts with these investors from Kuwait for the past few years. It takes time to convince them. This is why we keep on coming back here and they see a continued interest from our side,” she said. She said Malaysia was also looking to invite the Kuwait Investment Authority (KIA) to invest in other sectors like real estate, rather than just investing in the financial sector. KIA, which has a presence in Malaysia among others via its stake in Kuwait Finance House, usually appoints third parties to invest on their behalf. “For KIA, they will only take equity and will become silent partner. They don't take active participation in the operation.
