Malaysia lacks advantage, Covid-19 not sole factor for FDI drop, say economists

Bernard Saw

Economists say the Covid-19 pandemic is not the only reason why Malaysia performed the worst in the Asean region in terms of FDI. – The Malaysian Insight file pic, February 6, 2021

MALAYSIA’S foreign direct investment (FDI) decline in 2020 is due to more than just the Covid-19 pandemic, economists said, as neighbouring countries have begun to outpace the former Asian tiger.

The FDI drop is the worst in the region, at a plunge of 68% to US$2.5 billion (RM10.2 billion) last year, figures for 2020 released by the United Nations Conference on Trade and Development (Unctad) last week showed.

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  • A very long and convoluted explanation when its quite simple. A house divided against itself cannot stand. If electoral wishes are overruled by selfish politicians then investors will see the instability as a threat and invest elsewhere. Rules of employment based on race and not talent is another turn off in a world of BLM and a growing awareness of racial inequality being unjust.

    Posted 3 months ago by Malaysia New hope

    • Decision to invest or move out was made earlier in 2018, pre C19. Political instability, corruption + stagnant policy only speed up the process

      Posted 3 months ago by Zaini Nordin