He said the whole world is affected by the Covid-19 pandemic, and as a result there are pluses and minuses in every country.
“There is a downside and an upside. So, we want the public to be fair when making assessments,” he told reporters after a briefing on “Developing Malaysia and the World” at the Jeffrey Sachs Center on Sustainable Development here today.
Mustapa, commonly known as Tok Pa, was asked about the concerns that have been raised by all quarters over the emergency, especially fears that it may keep investors away from Malaysia.
He said the government acknowledged the concerns of the rakyat.
“(But) there is also an upside. We have been doing well in some areas, and we want the public to be balanced when making any assessment about any sectors,” he added.
The country’s net foreign direct investment (FDI) fell 56% to US$3.4 billion in 2020, as the Covid-19 pandemic hit economic activity globally.
Malaysia’s economy contracted by 5.6% last year, marking its worst performance since a 7.4% fall in 1998 during the Asian financial crisis.
Net foreign investment totalled RM13.9 billion in 2020, down from RM31.7 billion the previous year, according to a report published by the Malaysian Investment Development Authority.
Sunway Group founder and chairman Jeffrey Cheah, who is a member of the government’s Economic Action Council, was also present.
He said FDI levels were likely to recover as investors are familiar with the country.
“They like Malaysia because of our diversity and education system,” Cheah said.
He added that Sunway would also be gaining from a major investment by a foreign government.
“Until we announce it to the stock exchange, we can’t say anything more. It is a big investment from a sovereign fund overseas,” he added.
Cheah said the retail business at Sunway Pyramid was also picking up now that customers were returning to the mall.
“Crowd sizes on weekends seem to be back to normal, maybe even larger than before, due to pent-up demand,” he added.
Meanwhile, Tok Pa said states and various government agencies have so far requested a total of RM900 billion under the 12th Malaysian Plan 2021-2025. To date, RM69 billion had been allocated for development this year.
He added that handling Covid-19 and saving lives remains the government’s priority.
“We need to make sure that the people have food on the table.
“Because of these challenges, the priority is the highest (in these areas),” the Jeli MP said, adding that state governments need to be more cautious in requesting allocations for development projects.