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||2 February 2010
Malaysia to focus on China, India to draw FDI
Malaysia will step up promotion efforts to woo investments from China and India to diversify sources of foreign direct investment (FDI) since funding from traditional sources among the more advanced economies has fallen due to the economic recession, reported local business daily StarBiz.
“As a measure to diversify the sources of FDI, Malaysia is now looking to promote investments from emerging economies such as India and China,” International Trade and Industry Minister Mustapa Mohamed was quoted by the paper as saying.
The Statistics Department’s November 2009 report on external trade data revealed that China was Malaysia’s number two export destination while Malaysia was the top destination for Chinese imports.
The minister said Malaysia’s lower FDI last year reflected a substantial drop in global FDI flows. Malaysia is India’s number two trading partner in Southeast Asia with two-way trade exceeding $10 billion in 2008.
A report by the United Nations Conference on Trade and Development (Unctad) showed that global FDI flows had decreased by 39 percent last year to just over $1 trillion compared with 2008.
Unctad estimates that Malaysia’s FDI inflows last year totalled $2.7 billion compared with $8.1 billion the country attracted in 2008. Malaysia has experienced a net outflow in FDI since 2006 as state investment agency Khazanah Nasional Bhd and other local corporations have expanded abroad due to a smaller market and lower profit margins at home.
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