PETALING JAYA: The disclosure by Home Minister Datuk Seri Ahmad Zahid Hamidi that Islamic State (IS) is plotting to kidnap wealthy Malaysian Chinese will cause panic in the corporate world, and this is detrimental to the country's economic well-being, says Federation of Chinese Associations of Malaysia (Hua Zong).

Hua Zong president Tan Sri Pheng Yin Huah says the Home Ministry should have conveyed this message to those it regards as IS targets behind closed doors, instead of through the media, which will only create fear among business tycoons, Sin Chew Daily reported today.

"At a time when businessmen are already hard-hit by the economic slowdown, the minister's remarks will only create panic and keep potential investors at bay, further affecting the economy."

Pheng, who is Kinsteel Berhad managing director, added Ahmad Zahid should not have emphasised that the rich people in Malaysia are not Malay, as there are tycoons from all races in the country.

In a joint interview with Chinese dailies last Thursday, the minister said the tactics employed by IS is to hold these tycoons for ransom and use the money to funds its activities.

"Anyone who is a rich is considered a potential target for IS, and in Malaysia, most of them are not Malay," he was quoted as saying.

Asked if he is worried about his safety, Pheng said: "The threats posed by IS cannot be mitigated by strengthening personal security alone; it has to be tackled at the government level. The government has the responsibility to ensure the safety of the people."

Pheng said the police should also foster closer cooperation with Interpol on countering IS, to allay the public's fear.

His sentiment was echoed by Associated Chinese Chambers of Commerce and Industry of Malaysia vice-president Tan Sri Lam Kam Seng, who said it is the duty of the police to protect the people.

He said many tycoons hire bodyguards for peace of mind but he believed an effective police force is the key to security.

He said he will not step up personal security just because of the home minister's remarks.

Bina Puri managing director Tan Sri Tee Hock Seng also said he will not fret too much over Ahmad Zahid's warning as he believed that police can handle IS threats.

He said he has confidence in the force and believes it will enhance security for tycoons.