Malaysia’s financial account shows a large net outflow of investments in both the first (far right column) and second quarters of 2009.
|Financial Account||RM million||Q2/09||-24,198||-29,758|
|Direct Investment Abroad||RM million||Q2/09||-8,964||435|
|Direct Investment in Malaysia||RM million||Q2/09||863||2,761|
|Portfolio & Financial Derivatives – Net||RM million||Q2/09||-9,933||-12,153|
|Other Investment – Net||RM million||Q2/09||-6,163||-20,799|
Where is all the money going? – Source: Bank Negara
The latest Unctad investment flows report shows a similar net outflow of foreign direct investment in 2008.
I stumbled across those figures while writing the following piece on the Malayisan economy for Asia Times:
PENANG – Although Malaysia appears to have weathered the worst of the global economic slowdown, indications of a recovery are tentative and clouded by a worrying trend of net foreign investment (FDI) outflows as foreign companies shy from new commitments and local ones seek opportunities abroad.
Malaysian gross domestic product (GDP) contracted 3.9% year on year in the second quarter, an improvement on the 6.2% collapse recorded in the first quarter. With exports representing as much as 120% of Malaysia’s GDP, the slump in global demand and commodity prices has taken an especially heavy toll on Malaysian producers. Full article here.