Foreign investors take a shine to Indonesia as Malaysia political woes bite
- Slowing inward investment has cast a shadow over Malaysia’s aim to turbocharge the digital economy, as the country remains beset by political feuding
- Meanwhile, greater political stability, clear policies and reforms, and a rapidly-growing middle class are giving Indonesia’s digital economy a boost, an analyst says
Over the past decade, Indonesia has pulled in billions in foreign direct investment (FDI), including from Amazon and Google, and the country of 270 million people is set to grow further with an abundant workforce and a well-educated middle class to power its growth.
“Political uncertainty is a bigger deterrent to investments than corruption, because it creates an uncertain environment where it is more difficult to take decisions,” said economist Carmelo Ferlito, chief executive of the Centre for Market Education.
Dr Thanussha Francis Xavier, vice-president of the Malaysian United Democratic Alliance, a new youth-centric party, said the enduring political feuding had been a cause of concern for the country’s young people, who want the government to invest in them and frame progressive policies.
“It is worrying for young Malaysians – all Malaysians, truthfully – because there is endless political instability and bickering, and little focus on developing our nation,” Thanussha said. “Our neighbour’s advancement proves that if only our leaders were as invested in our country, we too could be developing at a rapid pace.”