Malaysia’s net FDI outflow jumps to US$6b

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According to Unctad’s World Investment Report 2009 released last night, Malaysia experienced a net FDI outflow of US$6.0 billion in 2008, more than double the US$2.7 billion net outflow posted in the previous year.

Inward FDI fell to US$8.1 billion (18.4 per cent of GDP) in 2008 from US$8.4 billion (20.6 per cent of GDP) the previous year. Outward FDI, on the other hand, soared to US$14.1 billion from US$11.9 billion in 2007.

In comparison, Indonesia experienced a net inflow of US$2.0 billion for 2008 while Thailand posted a net inflow of US$7.3 billion.  The South-East Asian region as a whole saw a net inflow of US$27.8 billion.

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Itam Man

The rich folks are taking the money out in case…! I bet the BN (people) are already hedging their bets by putting the money in UK, Australia and Switzerland.

KSTan

While the figures provided are just a snap shot in time, it does foretell our abysmal future. (The recent increase in FDi outflow might probably be due to Oil and Gas activities.) A decade ago, the Genting Group were already looking for greener pastures and ended up with the Star Cruise and now a new casino in Singapore. Many might remember tycoons Robert Kuok, who is now living in Hong Kong. These and many more are examples of capital flights to safety. This is reminiscent of the human brain drain which started some 40 years ago. So what is left… Read more »

LBJ

Inspite if all the noise about SMI in Malaysia, this is the most undeveloped segment. If you are not a bumi. then you are really squeezed. 1. Cannot get grants from Govt 2. Hard to get loan from banks 3. Have to pay under table money for all kind of things 4. No technical support from govt 5. If you make it, you have to share with bumi partners Why bother to start a business in Malaysia? If you have your own technology, do it in Thailand, Indonesia, Vietnam or even China. There is a new generation of Malaysian entrepreneurs… Read more »

RH

..Is, as seemly suggested by this post, Malaysia is losing out to Thailand and Indonesia?

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jo fernandez,

You bet it is, don’t be surprised that when Malaysia’s crude oil reserve ran out, Malaysians will be working as maids and labourers in Thailand and Indonesia.

looes74

Joe,
Doubling of Net outflow is no good. As an advocate of job creation in Malaysia, this is a bad news. While strengthening SMI, we need FDI inflow investments
Construction industry is one way of spurring growth. Keynes advocate this to get troubled country out of economic quadmire. If I am mistaken, he’s a socialist.
Unfortunately, when one has plenty of Anarchist around, people in general would suffer. No Jobs, no money, no spending, economy go kaput.
IT’S ECONOMY, STUPID!

LBJ

The answer is simple. Malaysian businesses are putting money else to pursue opportunities not available to them in the country. Investment funds are parked outside if not used in Malaysia. With what is happening in the country, this is a reasonable measure to protect spare cash.

Chinese owned businesses are disadvantaged inside the country. Why bother doing business in Malaysia. The opportunity is bigger out there.

This increasing outflow is expected.

jo fernandez

The story in The Star put a positive spin on this as being malaysian cos spreading their wings.

Can anyone go behind the figures and explain what is actually happening.

Is, as seemly suggested by this post, Malaysia is losing out to Thailand and Indonesia?

rajan

Hi Anil,

WISHING ALL MUSLIMS A HEARTY SELAMAT HARI RAYA.

Anil, keep up the good work !