Foreign Direct Investment in Malaysia

Foreign Direct Investment is one of the dynamic types of capital inflows in the world economy throughout the past decades. In more countries, most of the firms in industries are raising foreign direct investment more than before, and almost all economies try to attract multinational enterprises (MNEs). FDI is important for developing economies and accelerating growth in developing countries such as Malaysia. It is supposed that the benefits that FDI creates to the outlook and standard of living for economy growth of the host country mostly outweigh its weaknesses. Despite the vast research by Malaysians and other foreign researchers about FDI in Malaysia, there are still other indicators that affect Malaysia as an attractive destination for FDI flows and consideration for any investment opportunity. This research is based on primary data which was collected through questionnaires with a sample of 34 foreign companies invested in Malaysia. The SPSS software is used to analyse the data. This research can be useful and reliable for Malaysian government to change its policy in some industries and focus more in incentives that attract more foreign investors.