Industry members in Canada have said that the government's recent policies and decisions are harming the country's Investment attractiveness.

The Canadian Council of Chief Executives and the Canadian Chamber of Commerce have said that there are concerns among investors as there is not clarity over the criteria for determining if any investment proposal is beneficial to the country.

Investors expressed concerns after government's ambiguous rules over foreign investment and its decision to block Petronas's takeover bid. The moves might deter investments from Asian countries, according to experts.

Prime Minister Stephen Harper has said that the government has not yet decided upon the $6-billion takeover of a Canadian natural gas producer by the Malaysian national energy company. Mr. Harper has said that the government might soon release a new foreign investment policy.

Government officials had earlier said that the Petronas's proposed takeover of Progress Energy Resources is being blocked because the proposal does not meet the requirements of the "net benefit" test under the Investment Canada Act.

"The uncertainty that comes from this is going to make life difficult for business. It isn't good for Canada's international reputation. The fact that nobody really understands exactly what it is that drives the decision right now is a problem," said John Manley, president of the Canadian Council of Chief Executives