| Summary: | Nowadays, in-migration is one of the important phenomena that affects urbanisation and development in the destination
area. Indirectly, it will cause the rapid growth of the population, leads to overcrowding, competition for jobs,
unemployment, poverty and the formation of new towns in the destination area especially urban areas. However, for
rural destination areas, in-migration of professionals is important to stimulate economic growth. Hence, the objective
of this study is to forecast and analyze the effect of macroeconomic variables on in-migration into developed states in
Malaysia. Using the annual time series data from 1980 to 2012, Autoregression Distributed Lag (ARDL) and Grangercausality
test were conducted. The findings have found that long run and short run relationships exist between inmigration
and macroeconomic factors for developed states. The forecasting until year 2020 expects that in-migration
will increase in Perak and Penang. Investment factors that are concentrated in the developed states also affect the
population’s decision to migrate especially in Kuala Lumpur and Selangor. To promote the economic growth, foreign
direct investment and domestic investment for development sector should be intensified to improve household incomes
in the region. Besides, Perak and Selangor need to improve the existing policies to ensure that there is an increase in
foreign direct investment and domestic investment.
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