"With the (depreciation of the) ringgit, to other (foreign) investors, it is much cheaper, and Malaysia will be more competitive. So, we assume all investment will be coming from the US, where all these countries' currencies have appreciated against ringgit," its deputy chief executive officer Datuk Phang Ah Tong told reporters after officiating a seminar on investment opportunities in renewable energy sector in collaboration with Asean Korea Centre (AKC) yesterday.
Commenting on the impact of the falling in ringgit and global oil prices on local investments, Phang said not all sectors will be negatively impacted by it.
He said among the areas of investment that will benefit from the downtrend includes electronics, medical devices, aerospace, machinery engineering, as well as resource base industry, such as rubber products, glove, and furniture industry.
Phang said export-oriented manufacturers with large local content will gain from the weaker ringgit, as their products will be traded in US dollar.
"As long as you have large local Malaysian content, where you sell in US dollar, and you convert it back to ringgit, you will find that immediately you get more revenue," he said, adding that the oil & gas industry will probably see a slowdown in implementation, as the company will have to review their proposal before they move further.
"We see that the oil & gas industry will likely see (some) consolidation," he said.
Moving forward, Phang is optimistic that the growth in the electronics industry will increase, due to positive order books in local and multi-national companies, as well as an upbeat outlook for the semi-conductor industry in 2015.
"Yes, we are now in (an) oil slide, but we are also up on many other sectors, especially in exports. If you look at export, I think oil and gas only contribute about probably 10%, where 34% of our total exports are from electronics."
"Electronics take out 49% in the manufacturing sector, so it is huge," he added.