Analysis of Foreign Direct Investment Environment in Malaysia

Hosani, M A, Mahri, A A and Fernandez, M (2021) Analysis of Foreign Direct Investment Environment in Malaysia. The International Journal of Business Management and Technology, 5 (1). pp. 63-77. ISSN 2581-3889

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Globalization and exponential growth in technology have made worldwide mobility of money extremely easy and fast. Investors prefer to invest in places that offer attractive returns and are relatively less risky. The inflow of Foreign Direct Investment (FDI) gives developing countries access to capital that would otherwise be not available. FDI also provides much needed foreign exchange and therefore helps to adjust some of the macroeconomic imbalances in developing countries. Every country is trying to attract investors by providing a business-friendly environment. The main objectives of this study are to find out the status of Malaysia as a destination for FDI; the factors that attract FDI into Malaysia and how these can be enhanced, and the factors that hinder the flow of FDI into Malaysia and how these can be reduced. The study covers a period of five years from 2014-2015 to 2018-2019. The study analysis various determinants of FDI like market size, economic growth, infrastructure, political risk, corruption, labor market, technological readiness, innovation, financial system, taxation, cost of capital, ease of doing business, and government policies. The study shows that Malaysia’s performance in attracting FDI relative to both earlier decades and the rest of the Association of Southeast Asian Nations (ASEAN) had slowed. But the business climate in Malaysia is generally conducive to investment.

Affiliation: Skyline University College
SUC Author(s): Fernandez, M ORCID:
All Author(s): Hosani, M A, Mahri, A A and Fernandez, M
Item Type: Article
Uncontrolled Keywords: Foreign Direct Investment, Malaysia, Market size, Multinational Companies, Growth rate
Subjects: A Business and Management > AH Finance
Divisions: Skyline University College > School of Business
Depositing User: Mr Veeramani Rasu
Date Deposited: 16 Feb 2022 08:50
Last Modified: 16 Feb 2022 08:50
Publisher URL:
Publisher OA policy:
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