1887

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

.

Investment trends

Malaysia was an early mover in export-led development based on multinational enterprises. Until the Asian financial crisis in 1997, it was a leading destination for FDI, particularly in the electronics sector. Its performance since then has deteriorated, and its share of total ASEAN FDI has fallen steadily over time. At the same time, established investors from many different countries and regions are continuing to reinvest. Malaysian firms, particularly government-linked companies, are also becoming major outward investors, and Malaysia is now a net outward investor on an annual basis.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error