How much FDI did Malaysia attract in 2020 compared to previous years?

Question

Accepted Answer

Malaysia's Foreign Direct Investment in 2020 Showed a Significant Decline

Malaysia attracted US$2.5 billion (RM10.12 billion) in foreign direct investment (FDI) in 2020. This figure represents a 68% decrease in FDI for the year. Information regarding Malaysia's FDI figures for years prior to 2020 is not available in the provided material, making a direct year-on-year comparison impossible.
Decline in FDI for 2020

The United Nations Conference on Trade and Development (UNCTAD) Report for 2020 indicated a substantial drop in Malaysia's FDI. The country's ability to attract investments in 2020 was significantly impacted, resulting in the reported US$2.5 billion inflow. This decline suggests a potential loss of confidence among foreign investors in Malaysia as an investment destination during that period.
Impact on Existing Investors

Beyond the overall FDI figures, the situation also affected existing investors. For instance, Hyundai Corporation, which has a significant presence in Malaysia, including a training academy, was noted as potentially relocating its operations. Reports suggested plans for Hyundai to invest US$1.55 billion (RM4.65 billion) in Indonesia until 2030, indicating a shift in investment focus away from Malaysia.
Broader Economic Indicators

The economic climate in Malaysia in 2020 was further underscored by significant retrenchments. Data from the Employment Insurance Scheme revealed that up to November 27, 2020, nearly 100,000 workers had lost their jobs. This occurred despite the government's implementation of support programmes such as the wage subsidy and employment retention initiatives, highlighting the severity of the economic challenges faced.
Comparison with Asean Neighbours

In contrast to Malaysia's declining FDI, other Asean nations experienced different trends. The Philippines, for example, was cited as having not only halted its FDI decline but also recorded an increase of 29% in FDI in the same year. This comparison suggests that the factors contributing to Malaysia's investment downturn may have been specific or more pronounced compared to some regional counterparts.

Reading history

Hide →

This history is cleared when the page is closed.

How much FDI did Malaysia attract in 2020 compared to previous years?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

2

0

0

Share with friends