Putrajaya has been urged by the Malaysia-China Chamber of Commerce (MCCC) to practice clarity over its policies and to make a clear stand on issues related to the republic, adding that recent government statements could impact investor behaviour from Beijing.

A statement by MCCC stated that there had been "vague and ambiguous statements" by government leaders of late.

It also gave the example of claims that the perimeter wall around the Malaysia-China Kuantan Industrial Park had been torn down, and Prime Minister Dr. Mahathir Mohamad's remarks on banning foreigners from buying property in Forest City.

The former statement was later declared a misunderstanding and Mahathir subsequently clarified that there was no such ban, but MCCC is concerned that such remarks could cause a dent in the confidence of existing and potential investors. In turn, this could seriously impact the country's economy, claims MCCC.

"It is necessary for officials to give a reasonable explanation to safeguard Malaysia's reputation."

In order to more effectively try and ensure government leaders exercise caution in making statements, MCCC has proposed the establishment of a specialised department to report to government leaders on matters regarding foreign investment policies.

"By establishing a transparent and rational communication and information mechanism, the government leaders can ensure that they get the right information," it said.