Speaking at an online seminar today, he said examining domestic direct investment would prove to be a better indicator of the economy’s health.

“What is important to me is what about Malaysian investors. Without them making needed investments, it’s difficult for the economy to be competitive as we strive to recover,” said Jomo, who is research adviser to Khazanah Research Institute.

He said he did not want to read too much into a recent report by a United Nations agency that foreign investment in Malaysia fell by 68% last year, the largest drop in the region.

Jomo said domestic investment was a better indicator of the economy’s health.

Noting that more than 90% of investment in the country is by Malaysians, Jomo questioned what could be done to induce greater confidence among investors wary of more lockdowns, political instability and a nationwide emergency.

“FDI, like in other countries, follows DDI,” he said. “Looking at FDI is useful, but it’s not the be-all and end-all. We must look at what is happening in Malaysia (and) what can be done to induce greater certainty?”