KUALA LUMPUR : Malaysian Industrial Development Authority's (MIDA) outlook for 2010 foreign direct investments inflows in Malaysia is expected to sustain. Based on a United Nations Conference on Trade
and Development (UNCTAD) World Investment Report 2009, Global FDI inflows are expected to recover
moderately in 2010 before gaining momentum in 2011.

In announcing MIDA's annual performance of the manufacturing and services sectors in 2009 this morning,
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said, given the improving global economy and investment environment, Malaysia's economy is expected to grow between 4 per cent to 5 per cent in 2010.

Recognising the importance of the services sector as a pillar of economic growth and the potential for increased investment inflows into the country, the government will undertake measures to progressively liberalise the other service sub-sectors.

He said the government will launch the New Economic Model in the first quarter of this year, where strategies
will be outlined to propel Malaysia from a middle income to a high income economy based on innovations creativity and high value sources of  growth.

It is intended to push the country towards a knowledge driven and hightechnology industrial base.

"Efforts will also be intensified to target and attract industries in which Malaysia has strong foundations as
well as new growth areas such as automotive, aerospace, electronics, petrochemical, bio-technology,  machinery, pharmaceutical and medical equipment," Mustapa said.

Green technology has also been identified as a new growth area by the government. The government will
also encourage the setting up of energy efficient and conservation projects for sustainable development.

"MIDA will work together with its 19 overseas officers to intensify its promotional efforts in the service sector by
promoting investments for supply chain management, research and development, design and development,  total solution providers, logistics, IT based and back office operations and treasury centres," he said.

The GDP for the whole of 2009 is expected to contract by around 3 per cent. Manufacturing continued to be an important contributor to the economy, accounting for 26.8 per cent of the country's GDP for the first nine months of last year.

The services sector accounted for the largest share of 57.3 per cent for the same period and expanded at 1.6
per cent.

Foreign investment approvals totalled RM22.1 billion or 67.8 per cent of the approved investments. Of this figure, foreign investments in projects with investments of RM1 billion and above totalled RM12.2 billion or 37.3 per cent of the total investments approved, indicating FDI inflows into the country were mainly for quality
investments.

Domestic  investments approved last year stood at RM10.5 billion or 32.2 per cent of the total investments approved.