OPIC mission to Malaysia will find many business opportunities - Overseas Private Investment Corp - related article: "OPIC offers Investment Information"

Business America, May 26, 1986

Much to its credit, rather than borrow its way out of the current economic slowdown, Malaysia has taken a realistic look at its interdependence on the world economy and is adopting fiscal and economic measures to maintain its growth, namely: liberalizing foreign equity requirements, refusing to support unrealistically high tin prices, implementing reforms in the banking system, reducing electricity and telephone costs, reducing the number of business licenses, and revamping oil production sharing contracts.

With its pragmatic fiscal outlook, Malaysia should be able to sustain reasonable economic growth and suitable progress toward its economic targets through 1990.

Malaysia's infrastructure is one of the best developed in all of ASEAN.

Infrastructure is Sound

Transportation: Malaysia has four modern maritime ports, with several shipping lines providing regular service to its major trading partners, including the United States. Transport time to the States varies from 30-50 days depending on the U.S. port of call.

Malaysia has five international airports equipped to handle wide bodied craft. Several international airlines serve Malaysia with daily service to all points of the globe. The government-owned Malaysian Airline System has regular flights to the United States, Japan, India, Australia, and the Middle East. Domestic air service is good in Peninsular Malaysia and adequate in East Malaysia, with current upgrading of facilities in progress.

Peninsular Malaysia has a well-developed road system, with some 17,978 miles of roads serving commercial centers and reaching into new settlements, including a main highway that runs from the Thai border in the north to Singapore. Highways also link the settled western areas of Peninsular Malaysia with the less developed eastern coast. Road infrastructure programs are keeping pace with rapidly increasing traffic.

The railway system operates north and south along the eastern and western coasts of Peninsular Malaysia and in Sabah in East Malaysia. Under the fourth development plan nearly M$600 million was allotted for improving services. River transport remains important in East Malaysia, particularly in Sarawak.

Utilities: Electric generating capacity in Malaysia (2,400 megawatts) more than adequately supplies the country's needs, exceeding required demand by 1,100 megawatts. Currently 71 percent of electric power comes from petroleumfired stations. Government plans are to develop the generating capacity of water power, gas, and coal to reduce dependence on fuel oil. Electricity costs 9-10 U.S. cents per kwh.

Potable water is available to 90 percent of all urban areas and 47 percent of rural zones in Peninsular Malaysia, but less than 25 percent of the inhabitants of East Malaysia have access to drinking water. Considerable investment is being made to rapidly expand the water supply system.

Communications: Telecommunications are modern and efficient, with direct dialing service from the capital, Kuala Lumpur, to the United States, England, and Japan. The same telephone service connects all principal cities and towns in Malaysia. International telex service is readily available to subscribers and airmail service between Malaysia and overseas destinations is considered excellent.