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Media Statement
by Dr Chen Man Hin  
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(Seremban, Thursday) : In the 1980s and 1990s, Malaysia was the darling of foreign investors. foreign investors from Japan, USA and other countries were chanelling billions into industries, stock market and trading purposes.

In 1990, Malaysia was ranked fourth in popularity as the country for FDI, and the gross domestic product was riding high at around 9% per year, somewhat similar to present day China with average GDP of 10 to 12% per year.

Times have changed, political and economic environments have altered to the detriment of Malaysia

The two giants of Asia are now sucking most of the FDI with china getting the lion's share of US60 billion or more. India gets round 10 billion.

Smaller countries like Hong Kong and Singapore get more than Malaysia. even countries like Thailand and Vietnam have overtaken Malaysia.

As for Malaysia the FDI was a lowly US3 billion, and by UN ranking, Malaysia is now ranked 62 in 2005, a far cry from position 4th in 1990 while the rest of Asia has benefitted from an increase of FDI, Malaysia is having a DECREASE of investment inflows.

What is the cause of the downfall and why is the world bypassing Malaysia?.

CITIGROUP, the world's largest bank and top financial group issued a report which states that ' one of main reasons why Malaysia is fast losing its competiveness is that the NEP distorts the market.' Citigroup also suggested that direct government subsidies and preferential treatment in social services, such as education and healthcare as being more preferable compared to the NEP requirements which 'distort the property, labour and stock markets'

The NEP has been in implementation for 35 years. its only achievement is to make millionares of privileged UMNO cronies, and created a bumiputra middle class professionals, engineers, doctors, managers and accountants.

the NEP was supposed to eradicate poverty, but it is most unfortunate that is has marginalised poor Malays, Chinese, Indians and bumiputras in Sarawak and Sabah.

Now, it has also marginalised Malaysia as it has become a recipient of the lowest allocation of FDI, because Malaysia is no more on the radar screen of foreign investors, courtesy of the NEP.