Despite the global challenge and uneven recovery, Asia is expected to remain relatively stable compared to its counterparts in Europe and the United States. Asia’s growth is largely fuelled by steady domestic demand and a healthy banking sector.

In Malaysia, while the economic fundamentals have improved with an impressive 1st Quarter of 2010 GDP growth of 10.1%, we will need to be vigilant to the continuing contagion risks and external headwinds given the challenging global outlook. Nevertheless, Malaysia GDP growth for 2010 should be at 7.0% to 8.0% which is commendable.

Much has been said about the drop in FDI inflows to Malaysia. In 2009, FDI inflows in Malaysia fell 81.1% to US$1.38 billion from US$7.32 billion in 2008. Outflows fell 46.4% to US$8.04 billion from US$14.99 billion. This evidently shows that there is a very competitive environment for FDIs set against a difficult external climate. We are heartened to note that our Government is seriously addressing this issue, namely to create an enabling environment to facilitate trade and promote investments. The New Economic Model (NEM) and the Government’s Economic Transformation Programme seek to address the structural issues afflicting the Malaysian economy and to ultimately create a conducive business environment to enable private sector investments to take the lead role in injecting greater momentum and dynamism into the Malaysian economy.

We must emerge stronger and more competitive. For this to happen, Corporate Malaysia must work hand-in-hand with our Government to create a winning formula to regain this competitive edge to attract domestic and foreign investments. These investments can, in turn, be strategised to enhance our economic linkages with the South-South countries.

I have pleasure to welcome on-board YBhg Tan Sri Ghazzali Sheikh Abdul Khalid and YBhg Dato’ Cheah Sam Kip, the new executive committee members of MASSA. I also want to thank all committee members for their continuing support and commitment.

In line with the festive season, I take this opportunity to wish all our Muslim members and readers “Selamat Hari Raya Aidil Fitri, Maaf Zahir Batin”.

TAN SRI AZMAN HASHIM
President