FOREIGN DIRECT INVESTMENT (FDI) IN MALAYSIA
Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. More specifically, foreign direct investment is a cross-border corporate governance mechanism through which a company obtains productive assets in another country .Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor. Foreign Direct Investment (FDI) in Malaysia is set up following the holding of at least 10% of the total equity in a resident company by a non-resident
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Any actions by individuals who try to incite racial tensions are dealt with strongly. Strong conflict is largely avoided although political power, largely being held by the Malays who with other indigenous Malaysians call themselves Bumiputera, or Sons of the Soil is used to increase their status in the Malaysian economy and other areas. Malaysia travel is safe and tourists will not feel in anyway threatened. Malaysians are generally friendly, and when asked for directions, will obligingly point you to your destination. There is a fairly large expatriate community working and living in Malaysia, especially centered in Penang, Kuala Lumpur and Selangor. It should be noted however that in April 2000, terrorist group Abu Sayyaff of the Southern Philippines kidnapped 20 hostages from the island of Sipadan, off the East coast of Sabah, including a number of tourist. The hostages were eventually released after nearly five months. Since then, security has increased on this island and the surrounding waters. While terrorism has reared its ugly head once in Sipadan, Malaysia has been able to contain terrorism due to its diligence and swift action against any individuals or groups involved. Airport security has increased and a few more policemen posted on certain embassies, other than that, the rest of Malaysia maintain its peaceful lifestyle.
ECONOMIC
In narrow terms, FDI is simply all capital transferred between a firm and its new or established foreign affiliates. In its broadest sense, FDI represents competition: among workers, governments, firms, markets and even economic systems. (ibid)
Immigration is defined as the act of leaving your country of origin and going to another different one to stay there permanently (Dictionary.com). Reasons, why people escape or leave their original countries, are varied; ranging from war, poverty, natural occurrences such as earthquakes while others just take the step for fun purposes. A reform is a change from the way things were done originally and make them better. Therefore, immigration reform is a term that is frequently used in political talks that refer to the alteration of the immigration policy of the nation. The debate is currently prevalent in the United States of America. It is a topic that has been discussed and reforms put across since around 1986 but it’s never addressed fully due to the conflicting stands taken by the leaders, the democrats, and the Republicans always have different views. Recently, the President Obama tenure has reawakened the issue. Some people support the reforms while others do not. It is a time the United States of America undertook immigration reforms as a solution to its porous borders.
FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)
FDI can be defined as a process whereby an investor places money into a business overseas, therefore implying that the investor now has a certain level of control over the foreign business that was purchased (OECD 2008). Due to the vast size of MNCs, it is common for an investor to purchase a section of an overseas MNC as they may wish to expand their own company and branch out (OECD 2008). However, it is also common for the MNC itself to participate in FDI by investing in an overseas company, as again they may wish to expand the size of their corporation and increase their scope and tenancy (OECD 2008). It is therefore
For me, China is a very complicated yet a unique country. So why did this thought came up?
Lebih separuh populasi Sarawak dan 66% populasi Sabah terdiri daripada kaum bumiputera bukan Melayu. Mereka terbahagi kepada berpuluh-puluh kumpulan etnik tetapi memiliki budaya umum yang sama. Sehingga abad ke-20, kebanyakan daripada mereka mengamalkan kepercayaan tradisional tetapi kini telah ramai yang sudah bertukar kepada agama Kristian atau memeluk Islam. Selain itu, Malaysia juga mempunyai penduduk yang berasal daripada Eropah yang dikenali sebagai
Masyarakat Cina di Malaysia merujuk kepada sekelompok manusia iaitu orang Cina yang mengamalkan budaya yang hampir seragam, termasuk adat resam, pakaian, bahasa, dan kegiatan ekonomi di negara kita. Mereka biasanya berasal dari luar negara yang menjadi warganegara atau penduduk tetap di Malaysia. Kebanyakan daripada mereka adalah pendatang dari China yang tiba di Malaysia sekitar abad ke-15 hingga pertengahan abad ke-20.
Malaysia recorded inward FDI of USD 7.3 billion and USD 6.3 billion in 1996 and 1997 respectively. The lower figures in 1997 may be attributed to the lack of confidence as a result of the Asian financial crisis but by 1998, figures indicate that investor confidence had improved. Malaysia’s highest FDI inflow was recorded in 2007 when the amount surged to USD 8.4 billion from USD 6.0 billion in 2006.
For the last sixty years, a majority of Malaysia’s population has been composed of indigenous Malays, with Chinese Malaysians and Indian Malaysians occupying the minority roles.
Furthermore, macroeconomic management, maintained economic growth and the existence of a well performance and functions of financial system have made Malaysia an attractive prospect for FDI. Investment activities that have been made by the foreign companies are in the major areas of sectors such as electronics and electrical products, chemicals and chemical products, basic metal products, non metallic mineral products, food manufacturing, plastic products and scientific and measuring equipment (Ministry of Finance, 2001).
In Spite of the day by day challenging global economic circumstances, the Malaysian economy had expanded to 5.1% during the first half year of 2012 compared with the previous year of 2011 which is 4.7% and this has been increased by 0.4%. As the Euro region debt crisis shows no obvious indication of alleviate, the global economic is prospective to further ease up during the second half of 2012. During second half year of 2012, the depravation of the slowdown of emerging economies especially in India and China or the economic growth in developed economies correction in merchandise prices are prospective to weigh Malaysia’s export performance. By reason of the resilient domestic economy and external sector consider cause of downside risk, the real Gross Domestic Product (GDP) is predicted to extend from 4.5% to 5% in 2012, while the previous year is 5.1%.
FDI has broadened its meaning into the acquisition of a lasting management interest in a firm outside the investing enterprise’s home country. For the reason above, it comes in different forms which include direct acquisition of foreign companies, construction of a factory in a foreign country and investment in joint ventures. Britton and Worthington (2009) described FDI as an important aspect of globalisation as well as the activities of multinational companies.
Foreign direct investment (FDI) which is the investment that made by an organization from a country that benefits the other country by operating there physically, (Staff, 2017). FDI includes;
Foreign Direct Investment is the investment of a country domestic assets into foreign structures, equipment and organizations, but does not include investment into stock markets. Foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise). The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. Direct investment involves both the initial transaction between the two entities and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated.
Capital punishment is the ruling of the life of a man or woman to be taken as result of their heinous crime. I believe capital punishment should be used in the right cases. Capital punishment should be legal and used because it deters violent crime, it is constitutional, and sometimes it is the only reasonable answer.