A recent report by an United Nations agency supported European Commission envoy Thierry Rommel's claim that the New Economic Policy (NEP) was detrimental to Malaysia's attractiveness towards foreign direct investments (FDI).

PKR treasurer-general William Leong said today the UN Conference on Trade and Development (UNCTAD) in its World Investment Report 2006 proved that the amount of FDI inflow into Malaysia had pummeled.

According to the report, FDI into Malaysia was estimated to have dipped by 1.6 percent between 2004 to 2005, at a time when foreign funds were pouring into Malaysia's neighbours.

At a luncheon talk in Kuala Lumpur last Friday, Rommel had urged Malaysia to re-look the NEP.

He said the requirements of the NEP was a stumbling block for free trade and was turning away foreign investors because of the lack of a level playing field.

This drew a volley of protest from the government which intends to lodge an official protest on the matter soon.

Show the facts

Leong said the government should refute Rommel's comments publicly by providing facts that Malaysia remains a competitive choice for foreign investors.

"But, if Rommel is correct, then, there is a need to review the causes of the weaknesses and take measures to address and rectify them," he told a press conference in Kuala Lumpur.

Conceding that the goals and objectives of the NEP were "laudable and proper", Leong stressed on the need to address the methodology and implementation of the NEP as its 30-year goals had yet to be attained.

"Ineffective methods must be changed. Programmes must be constantly reviewed and adjusted to meet the challenges of a changing and dynamic world... otherwise, we will be left behind and we will never achieve the goals and objectives of the NEP," he added.

In another development, PKR secretary-general Khalid Ibrahim said the party backed the Malaysian Trade Union Congress' (MTUC) demand for a minimum wage policy.

MTUC had renewed calls for a minimum wage of RM900 and cost-of-living allowances of RM300 ever since a hefty pay hike was given to civil servants in May.

On Monday, MTUC organised numerous pickets nationwide urging the government to initiate such a policy. Should the government not accede to their demands, MTUC might call for a nationwide strike.