GEORGE TOWN, January 30 – Malaysia should leverage on its status as a founding member of Organisation of Islamic Cooperation (OIC) to attract Middle Eastern investments in Penang, said Penang State Executive Councillor for Tourism and Creative Economy YB Yeoh Soon Hin.
He said that most foreign investments in Penang are from the American and European continent, coupled with some Asian countries such as China, Japan and Korea as well as numerous neighbouring southeast Asian players.
“However, it should be noted that the Middle East and North Africa (MENA) market has an arsenal of capitalists, all of which are foreign investments packed with enormous potential,” he said in a statement today.
Commenting further, Yeoh said that Malaysia has an upper hand in this facet, mainly due to the nation’s large Muslim population.
“Southeast Asian countries with a strong Muslim presence will be favoured by Middle Eastern companies which are scouting for investment opportunities because many Western countries are wary and have imposed strict policies towards Muslim counterparts.
“In fact, Indonesia has eyed this golden opportunity to attract Middle Eastern investments, in which its capital relocation plan that entails liberal and open policies have drawn in promising investments in industrial economy and construction,” he added.
Earlier last week, Yeoh was part of the Penang State Governor Tun Ahmad Fuzi Abdul Razak’s delegation to Expo Dubai 2020, which opened a broad scope of discussion with local businesses from the United Arab Emirates.
While speaking about the Expo, Yeoh highlighted that he has promoted Penang’s vibrant manufacturing hub to the officials, and in return have learned that many Middle Eastern companies are considering investment and expansion in the areas of agriculture, industry, education, healthcare, logistics, multimedia, tourism and telecommunication.
Data from The Sovereign Wealth Fund Institute shows that the Middle Eastern region is a major player globally by occupying 4 seats in the “Top 10 Largest Sovereign Wealth Fund Rankings by Total Assets”.
In the list, Kuwait Investment Authority is ranked highest amongst the Middle Eastern counterparts, marking Top 3 internationally by totalling a whopping $737,938,500,000 in total assets; Abu Dhabi Investment Authority (No. 4: $697,863,828,480); Public Investment Fund (No. 8: $480,000,000,000); Qatar Investment Authority (No. 10: $366,744,000,000); Investment Corporation of Dubai (No. 11); Turkey Wealth Fund (No. 12) and Mubadala Investment Company (No. 13).
The Middle East sovereign investment funds mentioned above have significant assets and investments in finance, real estate, technology, telecommunications, media, natural resources and consumer goods industries worldwide, all of which will yield handsome returns while benefiting the development of other countries.
On this note, Yeoh commented that Malaysia and Penang must recognise and explore the Middle East’s robust investment capability.
Yeoh also added that Penang is armed with an airport and seaport to facilitate imports and exports, making the state an ideal logistical hub backed by strong infrastructure and vibrant manufacturing scene, which he believes will be a pull factor for Middle Eastern investors.
The delegation to Expo Dubai 2020 led by the Penang State Governor also witnessed the signing of a Memorandum of Understanding (MoU) between Penang Development Corporation and an Abu Dhadi partner concerning renewable technology development in Penang.
