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.



Preface by Angel Gurría, Secretary-General, OECD

Malaysia’s economic performance during the last half century has been impressive. From an agricultural economy in the 1950s, the country has now built global competitiveness in high-end manufacturing and is pushing out its technology frontier, an immediate goal of its national vision. This performance is the result of a sustained commitment to improving the business climate. Malaysia is attracting record levels of foreign investment and its companies are becoming increasingly global. The country is also shaping the regional dialogue on numerous policy fronts, from corporate governance to science and technology. These have brought Malaysia closer to the OECD policy community, with co-operation progressing beyond investment policy to areas such as competition, anti-corruption, regulatory reform, global value chains and innovation.


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