Cenbet: Erratic announcements can erode investor confidence

KUALA LUMPUR (Aug 29): Putrajaya’s announcing matters and then clarifying them later can erode investor confidence and public trust, the Centre for a Better Tomorrow (Cenbet) said in a statement today.

The Malay Mail reported that Cenbet said an example of this was Prime Minister Tun Dr Mahathir Mohamad’s comments about prohibiting the sale of property in Johor to foreigners.

It caused confusion and this was followed by an explanation by the authorities that non-Malaysians could conditionally own property in the country.

Yesterday, the Prime Minister's Office (PMO) released a statement saying that Malaysia imposes certain conditions on properties purchased by foreigners and information on these conditions are publicly available.

The PMO also stated that the: “Purchase of properties however, does not guarantee automatic residency in the country.”

It said foreigners who wish to reside in Malaysia need to apply for permanent residency through the Malaysia My Second Home program.

The office also emphasised that Malaysia welcomes all tourists including from China and there are no restrictions imposed on foreign tourists as long as they meet all the necessary immigration requirements imposed by the Malaysian authorities.

The PMO statement was released one day after the comments made by Dr Mahathir.

“Such communication gaps can cause jitters among investors. It also raises questions about the federal government's perceived encroachment into land matters, which rightfully should come under the state's jurisdiction,” Cenbet said.

The Malay Mail reported Cenbet noting that projects such as the East Coast Rail Link and the High-Speed Rail continue to exist despite the Dr Mahathir’s announcements that they were scrapped.

“Any announcements on major policy decisions ought to have gone through due processes, including seeking views from various stakeholders. This is part of good governance which we advocate.

“This will also go a long way in enhancing investors' confidence and make Malaysia a magnet for foreign capital.”

Meanwhile, it was reported yesterday that Dr Mahathir has ordered Housing and Local Government Minister (KPKT) Zuraida Kamaruddin to form a committee to assess agreements and deals pertaining to the sale of residential units in the Forest City (pictured) project in Johor.

The Star, quoting Zuraida, reported that the committee would consist of KPKT, the Finance Ministry, the Johor state government and developers.

“That statement (prohibition of the sale of houses to foreigners) will be studied, and we will call the relevant stakeholders for a meeting to discuss the matter.

“Many units there have been sold in China, and we will look at the sales mechanism and other relevant issues,” she said.