US retail giant Wal-Mart eyeing Malaysia: official
The US retail giant Wal-Mart is keen to open stores in Malaysia, a junior minister said Friday, amid a government drive to lure investment and boost economic growth.
"Wal-Mart has shown interest," deputy trade minister S. Veerasingam told AFP, but he declined to elaborate further amid reports the company had formally applied to enter the Malaysian market.
He added that German company Metro, one of Europe`s largest retailers, had applied for permission to set up operations.
Another official said the entry of foreign retail giants would create jobs. "It will not only provide more jobs locally but will make the retail market more competitive besides injecting foreign investments in the country," consumer affairs minister Shafie Apdal told the New Straits Times.
He said foreign retailers were keen to invest in Malaysia due to the strong purchasing power of local consumers.
Malaysia has restricted the entry and expansion of supermarkets over recent years to protect smaller local businesses.
But major foreign retailers including France`s Carrefour, Britain`s Tesco, Japan`s Isetan and IKEA of Sweden already operate in the country.
Malaysia, with a population of 27 million, expects to post strong economic growth of 6.0 percent this year, after its economy expanded by 5.9 percent in 2006.
It is Southeast Asia`s third largest economy but has seen foreign direct investment steadily declining. In 2006 it amounted to an estimated 3.9 billion dollars, compared to 5.5 billion dollars in 2001.
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