Determinants of Foreign Direct Investment in the Malaysian Manufacturing Sector
Foreign direct investment (FDI) has played a significant role in the development of the Malaysian manufacturing sector. Unfortunately, the pattern of FDI is unevenly concentrated in a few industries such as electrical and textile which involve less skilled labour, less intensive technology and are...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Universiti Putra Malaysia Press
1994
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| Online Access: | http://psasir.upm.edu.my/id/eprint/2997/1/Determinants_of_Foreign_Direct_Investment_in_the.pdf |
| Summary: | Foreign direct investment (FDI) has played a significant role in the development of the Malaysian manufacturing
sector. Unfortunately, the pattern of FDI is unevenly concentrated in a few industries such as
electrical and textile which involve less skilled labour, less intensive technology and are highly dependent
on imported inputs. This has led to the problems associated with a narrow manufacturing base, vulnerability
to external fluctuations as well as low value added. It is therefore necessary to promote a broader manufacturing
base and to further encourage FDl in resource-based industries. This study attempts to look at several
quantitative factors that influence FDI in the Malaysian manufacturing sector. The results of the study
indicate that a nation's economic health, currency stability, access to local financing, availability of
adequate human and physical infrastructures as well as investment incentives are among the important
factors influencing FDI in the manufacturing sector of Malaysia |
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