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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Anwar trial harms Malaysian investment: Branson AFP - Tuesday, September 28 Send IM Story Print KUALA LUMPUR (AFP) - – British tycoon Richard Branson said on Monday that the ongoing sodomy trial against opposition leader Anwar Ibrahim was discouraging investors from coming to Malaysia. "Malaysia has a good reputation overseas. (But) what is happening to politician Anwar Ibrahim damages Malaysia a lot," he said at an investment conference in Kuala Lumpur. "I think it is not a major issue but it is definitely a thorn. I think this has gone on for a long, long time. It looks bad overseas." Anwar, a former deputy premier who was sacked and jailed on separate sex and corruption counts a decade ago, has said that the new allegations -- of illicit relations with a young male aide -- have been concocted to end his career. Human Rights Watch has urged Malaysia to drop the charges, condemning the case as a "charade of justice", and the United States has warned it is watching the saga closely. "Malaysia can be more liberal and a lot more people will invest. If you are a bold leader you should get rid of these things that are damaging your reputation," Branson said. Malaysia recently announced ambitious plans to double private investment over the next 10 years, to meet its goal of achieving developed-nation status by 2020. The Southeast Asian nation is moving to reverse a sharp decline in foreign direct investment, which fell 81 percent to 1.4 billion dollars in 2009 from 7.3 billion in 2008. Branson, the founder of the sprawling Virgin business empire, said Malaysia would have more success in wooing foreign funds if it adopted a more open and competitive business policy. "A lot of your companies are run by the government. It will be better if you privatise and break up big companies and let them compete against each other," he said. Branson cited the success story of AirAsia, a Malaysia-based budget carrier whose founders went on to launch long-haul airline AirAsia X, in which the Virgin Group has a 20 percent stake. "They came with a lower cost base and they helped transform Malaysia. And that is because they are more nimble than bigger government-run companies," he said. The Malaysian government holds strategic control of key industries including finance, aviation, energy and communications. Anwar has said he is the victim of a plot to prevent him from taking power, after the opposition made huge strides in 2008 elections, stunning the ruling Barisan Nasional coalition, which has been in power for half a century. The opposition leader, who is accused of illicit sexual relations with a 25-year-old former aide Saiful Bukhari Azlan, has said he fears he will not receive justice. Sodomy, even among consenting adults, is illegal in Malaysia. If convicted, Anwar could face up to 20 years imprisonment. His trial opened in February but which has been punctuated by lengthy delays and has made little progress. 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