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Indeed, Benchmarked against itself, Malaysia has made lots of improvement.But compared with other countries, especially in the area of foreign investment, it needs to act more speedily, (Joseph Tan, Singapore-based Economist of Standard Chartered, quoted by Jasin, A. Table: 2 FDI Inflows in ASEAN-5, Countries: (US$ million) Country World ASEAN Indonesia Malaysia Philippine Singapore Thailand Note: Figures in the parenthesis refer to year on- year growth ratio.Malaysia, on the whole, represents a rising trend of FDI inflows over the years since 1970.From the bottom of US$ 94 million FDI inflows in 1970, the Malaysian economy had received a peak level of US41 million FDI inflows in 1996.Its share in the ASEAN FDI inflows, thus, increased from 25 percent to 35 percent.The rising trend in the flow of FDI in the country may be attributed to the policy shift and growing market orientation of the country.Bhatt (2000), for instance, presents a generalized account and empirical analysis of the trends and pattern as well as determinants of FDI flows in the ASEAN countries. J (1994) observed an inverse savinginvestment correlation in Malaysia over the period This is attributed to public sector investment and FDI. Khan (2005) traced the role of some macroeconomic variables such as market size, openness of the economy, interest rates, and other factors, such human capital formation and information in attracting FDI into ASEAN-4 Countries and observed that the market size, interest rate, and exchange rates trend to be significant influencing factors.Hill (1990) furnished an explanation to this by saying that Malaysian authorities might have preferred FDI to local nonindigenous (non-bumiputeras) investment to check the racial economic imbalance in the country. In the seventies and eighties, Malaysia was regarded as the most attractive place for FDI in the region. Methodology and Research Design The main focus of the present study aimed to provide a comprehensive study of recent Malaysian experience in FDI since In particular, this paper has three-fold objectives.
It has a quantum jump from US70 million in 2003 to US$ 2971 million in In Malaysia, Petronas Petroliam National Berhad has made remarkable achievements globally.
In 2005, Singapore claimed the highest FDI inflows amounting to USD 20,083 million worked out to be 14.2 % of the total world FDI inflows and claiming 59% share in the total FDI inflows in the entire ASEAN region.
On the other hand, Indonesia claimed USD 5,260 million as against USD 3963 million FDI inflows in Malaysia.
Mithani, Ahmad & Saifudin 252 Table: 1 FDI Flows: World, ASEAN and Malaysia (US $ Million) Years World ASEAN Malaysia * 14500** 3203** Sources: UNCTAD, World Investment Reports, 1998, 2002, 2004, 2006 * Ministry of International Trade and Industries, MITI Report, 2003, ** Association of South East Asian Nations, ASEAN Economic Report 2005 5.
Current Scenario in the ASEAN Setting Mithani, Ahmad & Saifudin 253 Data in Table - 2 portrays the ASEAN-5 scenario regarding the FDI inflows.