The British tycoon said at an investment conference in Kuala Lumpur that the trial would not impact investment “in a major way”.
“It will be better if Malaysia can be more liberal and open,” Branson (right) argued. “It will attract people to invest.
“This has gone on for a long, long time. It looks bad overseas. If you are a bold leader, you should get rid of things like that which damage your reputation.”
Branson argued that Malaysia has a relatively good reputation overseas.
"(But) what is happening to politician Anwar Ibrahim damages Malaysia a lot," he said.
"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."
Branson 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.
Victim of a plotAnwar, 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.
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.
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 BN coalition, which has been in power for half a century.
In the 2008 general elections, the opposition quadrupled its seats in the national Parliament besides taking control of the governments of five states out of 13. Previously, the opposition had managed to rule only one state.
Local and international human rights groups have also condemned the trial as flawed and have called for the charges to be dropped.
- Agencies
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