KUALA LUMPUR, Aug. 7 (Xinhua) -- Regional cooperation between ASEAN nations could foster future growth and stability, said an economist here on Thursday.

    The Star, a local daily, quoted Deutsche Bank Group global chief economist Dr. Norbert Walter as saying establishing close ties among the ASEAN members was for the good of economy.

    Better integration among the countries also meant better representation in international forum, added Walter.

    Touching on Malaysia, Walter said the country should make concrete effort to improve its investment environment and remain competitive.

    Walter told a press conference on worldwide recession here on Thursday that the move was to curb the 11 percent drop in the country's investment in the first half of 2009.

    He noted that political instability, uncertainty in the application of Syariah (Islamic) law and lack of plans dedicated to infrastructure development might be a drawback to attract and retain investment.

    Walter said global investors were questioning Malaysia's competitiveness while searching for investment opportunities in the Asian region.

    He also said that the weakness of the ringgit against the U.S. dollar might be due to investment capital outflows.

    On energy, Walter urged the Malaysian government to fully utilize its geographical advantage by embracing the use of renewable energy sources such as solar.

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