KUALA LUMPUR, Feb 19 — Japanese investors previously avoided Malaysia as they were spooked by the 1Malaysia Development Berhad (1MDB) scandal, Finance Minister Lim Guan Eng said today. 

The Bagan MP said their confidence was only restored after the Pakatan Harapan (PH) government began cracking down on the many alleged financial crimes involving the state investment firm.

“I was in Japan earlier this month on a roadshow to market our Samurai bonds, where we are leading a ¥200 billion Samurai bond issuance, and where I met plenty of Japanese financial institutions, as well as investors.

“I was told that they had avoided Malaysia previously because of the 1MDB scandal, but now that the new government is taking action on the 1MDB scandal, they are willing to return back to Malaysia,” Lim told attendees at the Pheim Asset Management’s 25th anniversary celebration here.

Lim said that in the first nine months of 2018, there was a 249-per cent increase in foreign direct investment (FDI) year-on-year.

“The increase in FDI for the first nine months of 2018 was RM49 billion, and this would help to create an additional 41,000 manufacturing jobs over the next two to three years,” he said, adding Malaysia also reached the highest export value of RM998 billion.

Lim said the trade surplus also rose by 22 per cent from RM98 billion to RM120 billion, adding that this is a record achievement for Malaysia.

He also called on local investors to bet on Malaysia.

“Even domestic consumers have shown that they are confident about 2019. The recent consumer confidence index database shows that Malaysia’s consumer confidence stood at 180 points for 2018, 24 points higher than 2017. Now, this is the largest jump among all countries in the world.

“At least we are number one in the world for the right reason,” Lim added.