Malaysia's Public Accounts Committee (PAC) has noted that foreign investors were not restricted to acquire minority interests in Malaysia-listed companies, local reports said on Monday.

The practice would not change the control of the companies, PAC Chairman Shahrir Samad said on Sunday when commenting on media reports about the purchase of local telecommunications, banking and engineering companies by foreign investors.

Malaysia practiced an open economic policy and encouraged foreign investors to buy equity in local firms, he said. It was part of the globalization process and could not be prohibited.

Shahrir stressed, however, that the Malaysian government would not allow foreigners to acquire the nation's interests in strategic industries, such as the supply businesses to the Malaysian armed forces.

It was reported that Singaporean companies were seeking to acquire stakes in some key companies in Malaysia, including Telecom Malaysia, the state-run car maker Proton, and the low-cost carrier AirAsia.

Shahrir said that such acquisitions were not that sensitive.

Source: Xinhua