Malaysians are investing more abroad than what foreigners are investing in Malaysia, the country’s balance of payments figures indicate.
| Financial Account |
RM million |
Q3/09 |
-11,078 |
-24,198 |
|
| Direct Investment Abroad |
RM million |
Q3/09 |
-13,283 |
-8,964 |
|
| Direct Investment in Malaysia |
RM million |
Q3/09 |
3,565 |
863 |
|
| Portfolio & Financial Derivatives – Net |
RM million |
Q3/09 |
18,580 |
-9,933 |
|
| Other Investment – Net |
RM million |
Q3/09 |
-19,939 |
-6,163 |
The “Financial Account” (IMF format) of Malaysia’s Balance of Payments – Source: Bank Negara. Figures in the middle are for the third quarter of 2009, compared to the second quarter (far right column). All figures in RM million.
Malaysians invested RM13.3 billion in stakes in companies abroad while foreigners invested RM3.6 billion in Malaysian firms during the third quarter of 2009.
Portfolio funds appear to have returned in a big way in the third quarter. Has the impact been felt in the country? Or does this represent just a return of portfolio funds seeking higher returns in emerging markets as a result of the low-interest rate regimes in developed nations that have introduced stimulus packages?
The ‘Other Investments – Net’ figure shows an outflow of RM19.9 billion, which warrants a closer look: