12/09/2011 (Channel Asia News) - Foreign direct investment inflows into Malaysia have been holding up, despite the global economic uncertainty.

For the first half of this year, foreign direct investment rose by 76 per cent on-year to 21.3 billion ringgit (more than US$9 billion ).

That is being supported by the economic transformation programme crafted by Malaysian Prime Minister Najib Razak.

When delivering the latest progress update on the government's ambitious economic transformation programme, PM Najib was all smiles.

He unveiled eight new initiatives from covering palm oil, retail and communications to electrical and electronics.

So far, Mr Najib said 84 per cent of the total 87 initiatives unveiled have been implemented.

The projects are on track and investors confidence is gaining.

Some analysts said the prime minister deserves to take the credit.

RAM Holdings head of research Yeah Kim Leng said: "It's a testimony of the success or the early success of the economic transformation programme launched by the government, but the slowdown in the global economy may result in foreign investors withholding some of the projects."

In a bid to sustain the momentum, Invest KL, specialising in offering customised advisory service to multi-national companies (MNCs) to relocate their businesses in greater Kuala Lumpur, was formed in July.

Spanning 2,900 square kilometres, the area surrounding the Malaysian capital, KL Invest can also serve as a regional launch pad.

Invest KL CEO Zainal Amanshah said: "We have aggressively gone out there and talked to the various embassies; they are happy to see a focused entity for KL. They've always felt that we needed a single entity to bring the best of KL."

Invest KL is currently wooing MNCs from China, Japan and the Middle East, and particularly from neighbouring Singapore.

Mr Zainal said: "MNCs in Singapore need to expand. When they look at expansion,the question is, do they expand in Singapore or do they expand at a mirror hub in a mirrored country?

"Here's the leverage between KL and Singapore -- because of the proximity factor, we are so near, with so many airlines flying in and out, I think the proximity factor between KL and Singapore is good for investors."

Invest KL has set itself an ambitious target to attract 100 global MNCs to set up regional offices in KL by 2020.

Analysts said its success will depend how well it coordinates various government agencies to fast-track approval process amid cut-throat competition for foreign direct investment in the region.