Fdi Inflow, Current Account Balance, Inflation and Interest Rate: How Do They Impact the Malaysian Economy?

People often tell lies to evade punishment for their wrong doings, however sometimes these lies become out of control and a person must test their weaknesses and courage. This is exactly the delmia the characters in The Crucible must find a solution to. The play takes place in the Puritan village of Salem, Massachusetts during the 1692-1693 Salem Witch Trials. The mayhem of the trials begins when Reverend Parris catches Abigail Williams and several other girls dancing in the woods with his Barbados slave, Tituba, singing. Furthermore, Dancing is considered a sin by the Puritans.

Australia has traditionally relied on inward FDI to meet the shortfall between domestic saving and the level of domestic investment. Inward FDI also continues to play a significant role in making Australian industry internationally competitive, and thereby contributing to export growth. Over the past 15 years Australian outward FDI stocks have grown more strongly than inward FDI stocks. Outward FDI enables Australian firms to expand their business beyond the potential constraints imposed by the limited size of the domestic market. To support increasing investment by Australians at home and abroad, Australia will need higher levels of foreign investment in the future.

Solomon Northup was born in July of 1808, in Minerva, New York. Solomon was born free due to the death of his father’s, Mintus, owner. His father’s owner was named Captain Henry Northup, which is how Solomon and his father received their last name. While Northup was a child, he had acquired some education, but mainly worked on his family’s farm. In 1828, Solomon married Anne Hampton. In 1834, he and his wife moved to Saratoga Springs, New York. They later had three children, Elizabeth, Margaret, and Alonzo. While in upstate New York, Solomon Northup received the reputation of a talented fiddler.

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)

According to Kolodkin(2013), the FDI is major source which helps the countries which have limited of capital or funds for the government expense and receive finance aid from wealthier countries investor. For example, the united state is the world’s largest economy which are consist a lot of investors which have surplus fund to invest in companies and the project internationally. FDI is determined by the investor to invest into the countries based on the country situation and environment. For example, the government of Malaysia wants to attract the investor around the world to invest in Malaysia by giving a benefit such as tax reduced, percentage of share that they can buy.

Due to the inflation, Malaysia government already applied different strategies to face the inflation that occurred recently. Bank Negara Malaysia controls the inflation rate by implementing the monetary policies such as influence the level of interest rate that commercial banks have to pay on their loans. Sometimes commercial banks have unexpected or urgent needs for extra funds, Bank Negara Malaysia will make a short term loan to them in such case. Acceptable collateral and a promissory note (IOU) such as government securities are given when commercial banks borrow. Bank Negara Malaysia will obstruct commercial banks to make loan from them for obtaining additional funds when the inflation

So due to the aforesaid benefits economy has consistent flow of FDI over the past few years. In addition to that, the govt. has also taken step to enhance the FDI (eg. Telecom, civil aviation) FDI up to 100% through the Reserve Bank's

Malaysia government has a generally favourable attitude toward foreign investment, especially regarding projects that facilitate technology transfers, create high skilled jobs and contribute capital

The inflation rate in Malaysia was reported at 3.1% in July 2011. From 2005 to 2010, the average inflation rate in Malaysia was 2.77% reaching an historical high of 8.5% in July 2008 and a record low of -2.4% in July 2009 (Trading Economics Malaysia Inflation Rate).

In the recent time, significant rise of outward foreign direct investment (FDI) was witnessed from developing countries like China and India. The Organisation for Economic Co-operation and Development (OECD) defines FDI as an investment that reflects the objective of establishing a lasting interest or long-term relationship by a resident enterprise in one economy (direct investor) in an enterprise (direct investment enterprise) that is resident in an economy other than that of the

Abadie and Gardeazabel (2007) agreed that the stock markets are the main source of FDI, it is well known. But foreign firms that have been purchased through the stock market are in desperate need of financial services. This way, as a prospective investor makes decisions regarding his investments, he will be able to take into account the country’s financial development and banking development, and determine how such factors will ultimately affect their investments

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%.

Foreign Direct Investment plays a vital role in the growth of recipient countries (de Mello, 1997). FDI inflows help recipient country with the financial resources and even employment that may not be available with them; this helps boosting the economic performance of the country. FDI increase the production output of the country and more efficient use of resources by getting in more advanced technology and funds and by observing the unemployed resources of the

Foreign direct investment (FDI) inflows rose from $24.5 billion in 2003 to $76.2 billion in 2010. Intra-ASEAN capital flows have increased more than fourfold, accounting for 16.1% of the regional total in 2010 compared to 11.1% seven years ago. Only the EU contributes more.

In the 1970 the leading sector in development had been a wide range of export manufacturing industries such as textiles, electrical and electronic goods, rubber products. In the 1980s, Malaysia was hit with a brief recession. Bank Negara Malaysia knew they had to come up with a plan to save