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OECD Investment Policy Reviews: Malaysia 2013

image of OECD Investment Policy Reviews: Malaysia 2013

Malaysia stands out as one of the economic success stories in Asia. Foreign direct investment (FDI) has played a major role in the growth and diversification of the economy, and has been a key part of an outward-oriented development strategy. As an early mover in terms of export-led development, Malaysia has traditionally received significant amounts of foreign investment relative to the small size of its economy. Today, Malaysia is a net outward investor, with its companies increasingly becoming regional and global players.

In spite of this enviable performance, the Malaysian economy is confronting numerous inter-related challenges as it strives to attain developed country status by 2020. Private investment as a share of GDP has declined, and FDI as a share of total FDI in ASEAN has decreased since the early 1990s.

The government has engaged in ambitious reforms across the board which have led to increased liberalisation and more efficient regulations and have contributed to a strong enabling environment for business. Malaysia will also continue to benefit from a dynamic and rapidly integrating region, thereby retaining the attention of investors.

OECD Investment Policy Reviews: Malaysia presents an assessment of the investment climate in Malaysia, including the institutional and legislative framework for investment. It focuses on policy options in the areas of investment, infrastructure, finance, responsible business conduct, corporate governance and green investment and discusses measures to help revive both foreign and domestic investment.

English

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Assessment and recommendations

This review assesses the investment climate in Malaysia, including both the institutional and legislative framework for investment and also a broad range of policies in other areas. It documents the reforms implemented by successive government administrations to improve the investment climate, describes the remaining challenges faced by Malaysia in moving towards becoming a high-income economy and discusses what further measures might help to revive both foreign and domestic investment. A good investment climate concerns more than just the rules and regulations faced by investors; it results from complementary policies across almost all of government. Equally importantly, a good investment climate is not static; it requires that governments and firms become more nimble in order to respond to new challenges and opportunities as they arise.

English

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