Bank Negara has projected a net inflow of RM 2.66 billion into Malaysia and the international reserves stand at just over US$ 30.3 billion. But, some sectors are still having difficulty.

While we hope that foreign investors will be attracted by measures such as the extension of 100 per cent foreign equity in manufacturing firms, we urge the Government to review the effects of tariffs on manufacturers. Some foreigners have complained of the bureaucracy and the fluctuations of the tariffs. If this is true, then the Government must do something about it.

REVIEW ECONOMIC FACTORS

People are watching the Government's policy on the reform of corporate
management. Its purchase of 29.09 per cent MAS shares from Tan Sri Tajuddin, the floating of RM 6 billion bonds to reorganize the Light Rail Transit and Renong and United Engineers Malaysia saga make investors wary of its intention.

Apart from tariffs, capital control, and corporate management, the stock
market is depressed with the composite index around 670 points. Why? Let us review all the sectors including the stock exchange, searching for the reasons for the foreign investors' perception or lack of confidence of the Malaysian economy. As a relatively small country, we need foreign investment to create a healthy economic growth. The growth in the 80's and 90s last century came from foreign direct investment. Without foreign money, the stock market will not do well.

The US market is facing a downturn. Hence, the US Federal Reserve Board has cut key interest rates. The downturn will affect Malaysia.