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Factors Influence Malaysia Economics

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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 …show more content…

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

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