Malaysia has always been open, friendly and fair to foreign investors. Foreign investment in Malaysia dates back to more than a hundred years ago. In fact, foreign investors have been major partners of our economic growth. Foreign investment had contributed significantly towards the expansion of the country’s manufacturing sector, the creation of employment and the birth of economic hubs. Today, foreign investors remain key allies in our quest to become a high income nation. Periodic reviews and dismantling of burdensome regulations have been our ethos. In 2009, we reduced barriers for partnership with local companies and liberalised 27 service subsectors. Since then, at least 15 more subsectors have been liberalised. These measures have boosted investments in many corridors around Malaysia. Malaysia is a profit centre with no restriction in repatriation of profits even during difficult times. Foreign investments have indeed yielded significant returns for investors. Returns on FDI have grown by an average of 13% per annum, higher than Malaysia’s nominal GDP growth of 7.7% and one of the highest in Asia. Clearly, Malaysia is a regional profit centre where foreign investments are protected and is allowed to operate in a conducive environment. More importantly, profits by investors are freely movable. Malaysia does not impose any restriction on the repatriation of profits, even during difficult times. A fact sometimes missed by analysts. Even during the 1997 crisis, we did not restrict the movement of profits from Malaysia. Our compass in attracting investment has always been guided by seeking quality, rather than quantity, of investments.

Our rules and treatment are fair to all genuine investors. Any incentives 1/6  BIS central bankers' speeches  granted to both foreign and domestic investors are subject to stringent performance requirements. This ensures adequate safeguards for the goals of the incentives and underscores our fair treatment to all. This would also create a relationship built on the principle of mutual reinforcement, beneficial to both Malaysia and its partners. A growing economy which parallel global development and growth. The Malaysian economy has always been very well run. It has bright growth prospects, in the immediate future and in the longer term. We have been one of the fastest growing economy in the last decade. Our economic growth has consistently outpaced global growth since the TransAtlantic Financial Crisis. Comparing average growth rates since then, Malaysia’s growth rate has been 170 basis points higher than the global economy, growing faster by 38% to be exact. In the region, we are among the fastest-growing middle-income economy. I am quite confident that this trend is set to continue as we move forward. In the first quarter of the year, Malaysia grew by 5.6%, surpassing market expectations. Growth has been lifted by the stronger domestic demand with additional impetus from exports. Our export performance is generating greater positive spillovers to the domestic economy. Judging by these, the economy is poised to register stronger growth in 2017. Many factors account for the sustained economic performance. A key reason is our economic diversification.