What is a Foreign Direct Investment or known as FDI?
According to Investopedia,
FDI is 'an investment abroad, usually where the company being invested in is controlled by the foreign corporation'.
According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2008 released today,
In 2007 , outflow increased by 81.9% to RM38 billion.
In 2006, outflow was RM20.89 billion. A difference of RM8.99 billion!
As for the inflow increased by only 39% to RM29.07 billion versus RM20.91 billion in 2006.
Let's do the maths, outflow = RM38 billion, inflow = RM29.07 billion. Negative flow/Deficit = RM8.93 billion!!
Among the Asean countries, Malaysia is the only country to record a negative flow.
The interesting but strange development is that, as a whole, countries in ASEAN are experiencing highest ever FDI inflow - which jumped 81.1% to RM209.2 billion in 2007 from RM115.5 billion in 2006.
Did Malaysia miss the boat? In times when South East Asia is having high FDI inflows, Malaysia is looking at the reverse trend.
The government is not doing enough to attract foerign investors? or the investors are shying away?
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