Malaysia has a thin skin when it comes to perceived personal attacks. But its important to correct the misperception that Malaysia was somehow a base for the WTO attacks.

Over the past 6 weeks, some foreign media reports have sensationally suggested that Malaysia was a "launch-pad" for WTO attacks.

Today, Reuters reports: "The FBI Thursday ruled out Malaysia as a launch pad for the September 11 attacks on the United States but said hijacking suspects may have visited the country.

The Federal Bureau of Investigation chief, speaking after a meeting with Malaysian Police Inspector General Norian Mai, was referring to a Newsweek cover story issued last month.

Such a view is not without circumstancial evidence. Malaysian PM Mahathir for years before the WTO attack has publicised the danger of some Muslim extremist groups in Malaysia, their international connections and their prediliction for violence. Malaysia, with it's Muslim majority, leading edge communication facilities, a over-trusting popularion, and the persistence of corruption amongst immigration officials (though this is relatively low in regional terms), could also be seen as attractive for a bunch of extremists bent on planning from a nice peaceful and central place.

However, other countries in a region also offered their own advantages, including Middle East countries themselves, Indonesia, and even security conscious Singapore according to recent reports.

Malaysia is sensitive to reports that they see reflect on their competitive strengths such as security, tolerance, and safety. We doubt many investors have been scared away - the smart ones of course never rely on the mainstream press (from Malaysia or anywhere else) for their intelligence. So it's important to Malaysia to have the US FBI make this statement.

Regardless, Malaysia's economic prospects and investment advantages continue to improve as South East Asia stages a mini comeback in the foreign investment arena...