1. Asian Development Bank
Securing funds to build the future of Malaysia
A Special Brief for the Office of the Prime Minister of Malaysia

2. Action Items
To ensure Malaysia is positioned for continued development:
Secure ADB funding for infrastructure projects
Increase cooperation with Japan
Demonstrate to foreign investors our
commitment to development
Goal of 2020

3. Emerging Regional Leader
Development Potential
Over the several decades prior to Asian Financial Crisis Malaysia achieved impressive growth rates. Even after crisis, through calculated measures and careful financial policies Malaysia was able to keep growth rates pretty constant.

4. Export-Oriented Economy
Because of the substantial direct financial investment, we were able to rely heavily on private-public partnerships for achieving development objectives, but the current economic climate has curtailed such efforts, burdening the domestic government.
Private-Public Partnerships
Foreign Direct Investment

5. Current Economic Environment
Negative Growth
-3.3% GDP/per capita in 2009
FDI plummeted

6. Court Japan Research Shows… Commercial ties are important to Japan
Japan’s weight at ADB
Allocation of funds reflects concerns of donors
Court Japan
Focus our attention on further expanding our infrastructure to accommodate and compete for quality investment. It has been shown that Multinational Corporations, in deciding where to locate, are significantly influenced by infrastructure considerations. As an upper-middle income country, we can “no longer rely on low wages and the accumulation of physical capital to sustain the robust levels of growth achieved in the past.” Nor will this strategy help us to become a fully developed economy by “Growth in the future will increasingly depend both on a move into activities that are intensive in knowledge, skills, and technology, and on an increase in total factor productivity.”

7. Questions?