Friday, September 26, 2008

Commenting Malaysiakini: FDI outflow at record high

  • FDI outflow at record high
  • Andrew Ong
  • Sep 25, 08 8:37am
Foreign direct investment (FDI) outflow in Malaysia has exceeded inflow for the first time ever, underscoring fears that investors might be losing confidence in the government and its economic policies.
  • Outflow up, inflow down
  • M'sia worst performer in Asean

  • Free ISA detainees or lose more investments
  • Sep 25, 08 2:35pm
Transparency International Malaysia today called on the government to free all ISA detainees or risk losing further foreign investments.
  • Nation suffers drop in tranparency rankings
  • Perceptions will improve if laws reviewed


1 Capital inflows to Asia will slow, says Fitch. For the first six months of the year, foreign net selling in Asian equity markets totalled $13.7 billion, the worst in seven years. Capital inflows to Asia have started slowing down and this trend will likely continue, according to Fitch Ratings. Fitch attributes the slowdown to the heightened risk aversion of global investors and Asia’s deteriorating economic fundamentals.
2 UNCTAD sees decline in FDI flows this year
The UN Conference on Trade and Development (UNCTAD) foresees a perceptible decline in foreign direct investment (FDI) flows in the world economy in 2008, though developing countries would likely to be less affected.

3 While global foreign direct investment trends are up 30 per cent from 2007, New Zealand’s share of cash coming in has declined significantly. The report also highlights the growing importance of sovereign wealth funds, the importance of infrastructure investment, and notes that the current US financial crisis is likely to slow foreign investment next year.

4 Foreign direct investment (FDI) inflows to Taiwan amounted to a new high of US$8.16 billion for 2007, an increase of nearly 10 percent over the year-earlier level, according to the U.N. World Investment Report 2008 released Wednesday. The amount made Taiwan the seventh largest FDI recipient in South, East and South-East Asia behind China, Hong Kong, Singapore, India, Thailand and Malaysia, stated the report published by the United Nations Conference on Trade and Development (UNCTAD)

5 The Executive Director of Tanzania Investment Centre (TIC), Mr Emmanuel Ole Naiko, said in Dar es Salaam yesterday during the launching of World Investment Report 2008 that increased exploration and exploitation of natural resources were behind the increase. "Globally, FDI inflows grew at 30 per cent in 2008 from 1,300 billion US Dollars in 2006 to 1800 billion last year thus surpassing the record set in 2000," Mr Ole Naiko said.

6 It is perhaps no surprise that the advisory body is headed by V. Krishnamurthy, a former chairman of Maruti Udyog. He couldn’t have missed a cue from South Korea, where the 1962 automobile industry promotion policy banned all foreign automobile companies, except in partnership with domestic firms. Toyota first and then General Motors partnered with the South Korean firm that went on to become Hyundai Motors.

7 "Outward FDI is likely to grow even more as Asian firms are increasingly aspiring to become significant regional and global players in their respective ..."Outward FDI is likely to grow even more as Asian firms are increasingly aspiring to become significant regional and global players in their respective industries — particularly in telecommunications, finance, and manufacturing," the UNCTAD said.


related stories
Tanzania FDI may surpass $750 mln in 2008: TIC official
Reuters South Africa, South Africa
NZ foreign direct investment drops by more than half
National Business Review, New Zealand
FDI inflows to Taiwan hit new high eTaiwan News