The government, he said, would even permit foreign equity participation in the nation's carrier, Malaysian Airline System, and the long-protected Proton national car project. The foreign investors aren't impressed. Mahathir has stressed that he prefers not to let companies fail. He points to Malaysian Airlines as an example of a company in need of change. A budget that is cosmetically pro-business will do little to fix Malaysia's economy.
Investors say too many companies are still coddled by the government, leading to unfair competition.
Malaysia being a country that has changed the rules so many times, investors would like to see a deal actually going through before being convinced. Still, the fact that Malaysia is expanding foreign ownership in the country's strategic assets, even to the point of having a managing stake, could be the beginning of significant change. It is not an easy decision considering that it involves two key projects very dear to the heart of this government. Of course, there are limits to how far the opening-up process goes. But we want someone who will give us technology and export markets.