KUALA LUMPUR: Tun Dr Mahathir Mohamad today called on the government to encourage domestic investment instead of relying on foreign direct investment (FDI).
Dr Mahathir, who is also Langkawi member of parliament, told the Dewan Rakyat it was time to review the government's investment policy.
"I'd like to know if the ministry and the government still want to prioritise FDI in developing our industries because FDI alone cannot turn us into a successful industrial nation.
"If we look at Japan, South Korea and China, they don't rely on FDI. Instead, they take control of their technology and create products that are marketed for both the local and international markets.
"This is why they are ahead of us. We are still dependent on FDI, which is why we are unable to catch up with them.
"It is time we try a different method and review the policy," the former prime minister said during a debate on the International Trade and Industry Trade Ministry's budget at the Dewan Rakyat today.
Dr Mahathir also called on Putrajaya to market local products overseas, saying domestic promotions alone would not help Malaysia in becoming one of the top industrial nations in the world.
He said the government could take Malaysia's glove industry as an example and continue exploring all the assets that the country had to offer for foreign export.
"We have rubber, palm oil, sand. These are the assets that we can use to market both domestically and internationally. Find fields that we could be great at.
"Don't just focus on one thing, either for foreign export or for domestic use. Think of both. If we keep selling our products overseas, then our locals don't get to benefit from it.
"If the government is willing to change its policy and focus on both markets, perhaps our other local industries can be as successful as our glove industry," he said.
On a related matter, Dr Mahathir advised the government to instil confidence among investors, instead of cancelling contracts that were already inked due to the change of government back in February.
He said the government should also become bold and creative in exploring new opportunities.
"For example, there is an investment opportunity involving breeding king prawns at paddy fields but until today, no approval is given.
"And the reason given is, Malaysia has never done this, so no approval. Actually, this is for the Chinese market. They want to buy and they want to invest.
"But all we said was, we have never done this so it's not happening. If we continue to behave this way, it will be very difficult to expand our industries."