Author Topic: Foreign Direct Investment (FDI) & Fund Flows  (Read 3852 times)

Offline zuolun

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Foreign Direct Investment (FDI) & Fund Flows
« on: October 24, 2016, 08:32:48 AM »
Malaysia keen for cooperation with Iran in Halal industry ~ 23 Oct 2016

RI remains global investment sweet spot ~ 14 Oct 2016

1MDB fund flows: DBS, UBS to take action against staff for control lapses ~ 12 Oct 2016

Growth Outlook remains resilient for East Asia & Pacific in 2016-18 ~ 5 Oct 2016

Bond market staying its course in Malaysia ~ 1 Oct 2016

Foreign investment flows the highest since 2009 ~ 21 Jun 2016

Will the ringgit get better? ~ 18 Jun 2016
The value of a country’s currency is based on the macroeconomic fundamentals of the country. It depends on trade flows, foreign direct investments (FDIs) and other services between the host country and other countries. These factors determine the supply and demand for the currency. For instance, a higher level of FDIs draws higher demand for the ringgit. When there is high demand for our goods and services, the ringgit gets better. When the stock market becomes an attractive destination for the funds, the ringgit tends to get stronger.

Malaysian ringgit may worsen over the economy, negative news on 1MDB scandal and Najib
The Malaysian ringgit has fallen about 40% over the past year.

Malaysia is China’s ‘weak link’ in checkmating ASEAN ~ 15 Jun 2016

China-Malaysia: tightening economic ties

May 6th 2016

China has been tightening its economic relationship with Malaysia over the past six months. Already its main trading partner, and among the five main foreign investors, China has taken a number of initiatives in support of Malaysia's struggling economy through a mix of official statements of confidence, highly publicised investments and significant sovereign bond purchases. This rapprochement makes both economic and geopolitical sense for China. It is also welcome in Malaysia, despite criticisms of Chinese "interference" and increasing tensions in the South China Sea.

China's involvement in Malaysia takes place at a time of economic difficulties for the country, which continues to suffer from a slowdown in economic activity, low oil prices, a volatile ringgit and high consumer debt. The country is also dealing with the repercussions of a lingering scandal at a state-owned investment entity, 1Malaysia Development Berhad (1MDB), which has put pressure on the embattled prime minister, Najib Razak. China's support thus comes at a much-needed time.

Three-pronged support

China's support for Malaysia has so far come in three main forms. The first is unflagging official support from China's top leaders for the country's government, despite the 1MDB scandal. This was exemplified by the visit of the Chinese premier, Li Keqiang, to the country in November 2015, during which he pledged to help the Malaysian economy through support to 1MDB, the purchase of Malaysian Government Securities (MGS, long-term interest bearing bonds) and greater openings for local institutional investors to acquire mainland Chinese equities.

Soon after Mr Li's visit, the state-owned China General Nuclear Power Group (CGN) purchased 1MDB's energy assets in Edra Global Energy Bhd for US$2.3bn. One of the three pillars of 1MDB's rationalisation plan, this buyout effectively prevented a default on one of 1MDB's loans and relieved it from intense short-term pressure. The acquisition therefore eliminated the systemic risk that Edra's debt represented for Malaysia's public finances and banking system.

Support continued in April this year with the purchase of about M$30bn (US$7.2bn) worth of MGS by China. Both the timeframe and scale of this purchase momentarily dispelled the risk of sudden and massive outflows of capital, such in September 2015 when the ringgit dipped to a multi-year low.

Although not solving all Malaysia's ills—or those of 1MDB—Chinese support has provided some much-needed breathing space. It had temporary but positive effects on the ringgit at different stages of its deployment. It has also helped to assuage the concerns of investors about the impact of 1MDB's financial difficulties on Malaysia's creditworthiness. A US-based credit rating agency, Moody's, recently announced that it did not consider 1MDB to pose a "systemic threat" to Malaysia's public finances or economy. Finally, China's investments helped Malaysia to come closer to its foreign direct investment target for the year.

What is in it for China?

Beyond its partner's interests, China throwing its weight behind Malaysia and 1MDB, despite downgraded economic prospects and a lingering political crisis, has a clear economic and geopolitical rationale. Economically, China's continued engagement with Malaysia comes in the context of a push to expand Chinese investments in the region, as signalled by the "One Belt, One Road" strategy. Malaysia has so far reaped impressive benefits from this shift. China's Ministry of Commerce reported a rise of more than 200%  in overseas direct investment (ODI) in Malaysia in 2015 in its preliminary accounting. Chinese ODI in Malaysia was officially recorded at US$521.3m in 2014, against flows of US$7.8bn to the Association of South-East Asian Nations (ASEAN) as a whole.

It also helps to support Chinese companies' operational expansion into the country, which increasingly serves as a stepping stone for development in the region as a whole. CGN, for example, is looking for opportunities to promote its clean energy and nuclear power activities in South-east Asia, and seems to have identified Malaysia as a valuable hub. It recently announced that it would set up its South-east Asia regional headquarters in the country.

Less spoken of was another 1MDB-related investment by a state-owned railway company, China Railway Group (CREC), to develop a property project in the outskirts of the Malaysian capital, Kuala Lumpur. The project, which will house the terminus for the planned Singapore-Kuala Lumpur high-speed rail project, will also host CREC's regional headquarters. CREC hopes to pilot its regional expansion from there.

China's investments have directly benefited both players, with CREC seen as a front-runner for the upcoming high-speed rail bid, and CGN now the largest foreign investor in Malaysia. Its ownership of Edra means that it controls around 14% of total energy generation capacity in the country.

The increased weight of China, and Chinese companies, within Malaysia's economy also brings with it political advantages. It contributes to deflate, or at least drown under billions in investment, Malaysian criticism of "interference" from China. These had emerged in September last year when China's ambassador to Malaysia commented that China would oppose any form of racial discrimination and not tolerate violent demonstrations in Malaysia ahead of a planned rally by ethnic Malay supporters of the government in Kuala Lumpar's Chinatown area.

These comments triggered an angry reaction in some quarters in Malaysia, where they were perceived as a Chinese attempt to interfere in the country's internal affairs. China's ambassador was also criticised for refusing to heed a summoning by Malaysia's Ministry of Foreign Affairs to explain his comments. In any case, the event rocked an otherwise burgeoning relationship. China's renewed vow of friendship, backed by significant financing, might have been aimed at eliminating remaining resentment on the issue.

Preserving China's and Malaysia's "special relationship" also serves China's regional objectives. Malaysia has in the past been an effective mediator and often been sympathetic to Chinese concerns in the context of debates within ASEAN. As China grows more assertive in the South China Sea, it will want to make sure that Malaysia remains committed to its rather cautious stance on territorial disputes in the region. Malaysia has recently voiced concerns about China's construction works on islands in the South China Sea, deeming them an "unwarranted provocation".

But Malaysia also undoubtedly needs China's support. As the US finds it harder to deal with the Malaysian government in the context of the 1MDB corruption scandal, China could seize this opportunity to reassert the strength of Malay-Chinese relations and demand more of its partner. This comes at a particularly important time, as an international ruling is soon expected over the legality of China's controversial "nine-dotted line" that demarcates its territorial claims in the South China Sea.

Overall, the tightening of Chinese–Malaysian economic relations illustrates China's distinctive approach to foreign policy, with the country using a mix of politico-diplomatic and economic influences to build good relations while ensuring that its interests are preserved. In the short term more China-initiated projects, investments and initiatives should be expected. This will provide Malaysia with some partial relief from its economic challenges. Nevertheless, The Economist Intelligence Unit still expects the country's real GDP growth to ease from 5% in 2015 to 4.3% this year.

China's approach is not without risks, however. Its support could backfire if it is perceived as attempting to prop up Mr Najib's embattled administration. We expect Mr Najib to leave office before the end of this year. Changes in government in other countries with close economic relations with China, such as Myanmar and Sri Lanka, have been accompanied by a cooling in bilateral relations. In Malaysia's case, with Mr Najib's replacement likely to come from the same political party, the risks are more understated, but nevertheless present.

Singapore, China, India among the top 10 markets for foreign investment in 2016 ~ 4 May 2016

Chinese investments springing up in Malaysia ~ 19 Apr 2016

Malaysia's 1MDB says completes sale of US$2.3 billion power assets to China's CGN ~ 23 Mar 2016

China becomes Malaysia’s biggest foreign investor, thanks to 1MDB purchases

By Amy Chew
12 January, 2016

China is now Malaysia’s largest foreign investor, following its recent acquisition of 1MDB assets, extending Beijing’s reach into the Southeast Asian country’s economy.

The scale of China’s rise to become the top foreign investor is compelling - just a year ago, it was nowhere near the top of the table. While official figures for 2015 are not out yet, economists say China will certainly emerge in first place.

In 2014, foreign direct investment (FDI) to Malaysia mainly originated from Singapore, Japan, the Netherlands, the US and Norway, which amounted to RM257.7 billion (US$58 billion), or 55.1 per cent of total FDI.

However, some economists do not expect China’s top position to be sustained as Malaysia’s economic transition plan (ETP) to become a high-income nation by 2020 aims for high-value industries.

“I do not expect China’s pole position for FDI to be sustainable as Malaysia wants to move up the value chain into high technology . That will come from its traditional FDI sources of US, Japan, EU and Singapore,” says Yeah Kim Leng, Dean of the School of Business at the Malaysia University of Science and Technology.

China, however, has been Malaysia’s largest trading partner since 2009, and is both the largest market for Malaysian exports and the largest importer to Malaysia. Total trade between the two countries in 2014 reached RM207.85 billion.

On November 23 last year, Chinese Premier Li Keqiang said China would buy more Malaysian government bonds and give the country a 50 billion yuan (US$7.6 billion) quota to invest in Chinese stocks and bonds.

China’s investments in Malaysia are well diversified. It is not only securing natural resources for its energy needs but building infrastructure and educational facilities.

Call it soft power.

China’s Xiamen University launched its first overseas campus in Malaysia, which can accommodate 10,000 students, in 2013. The first phase of the RM1.03 billion campus located in Sepang, Selangor state, was completed in October 2015.

The initial intake for undergraduates starts in February.

Other major Chinese investments include property and industrial developments.

Three Chinese companies are developing properties in Iskandar Malaysia, a special economic zone in the southern state of Johor which borders Singapore.

China’s Guangzhou R&F Properties Co Ltd is investing RM4.5 billion to build condominiums in Iskandar, while Country Garden Holdings Co Ltd is investing RM900 million in 45 condominium towers, offering a total of 9,500 units.

Greenland Holdings Group Ltd is investing RM2.4 billion in its Iskandar property development.

In Pahang state, Guangxi Beibu Gulf International Port Group is spending RM8 billion to expand and deepen the provincial capital’s Kuantan port on the eastern seaboard as well as build the Malaysia-China Kuantan industrial park.

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #1 on: November 06, 2016, 02:00:32 PM »
Fake debt and investable bank credit… ~ 6 Nov 2016

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #2 on: November 19, 2016, 01:35:56 PM »
China looks to seize Asia free trade leadership ~ 19 Nov 2016

Deglobalization danger ~ 17 Nov 2016
  • Multinational business model is at risk
  • Housing bubbles will be pricked
  • Treasury yields will rise
  • Dollar to strengthen further

Deglobalization is here: What it means for global macro:

Singapore October exports slump 12%, far worse than the 3.5% expected ~ 17 Nov 2016

Pakista's Foreign Direct Investment (FDI) shrinks 48% in Jul-Oct ~ 16 Nov 2016

日本转向 安倍表态“如果TPP失败,将把重点转向RCEP” ~ 15 Nov 2016

Asia troubled by Trump ~ 15 Nov 2016
Republican Donald Trump’s victory in the U.S. presidential elections has drawn mixed reactions. Thailand hopes that a Trump presidency will adhere to a “balanced” foreign policy, while Singapore, Vietnam and Malaysia have expressed concerns that he will dismantle the Trans Pacific Partnership (TPP) trade agreement.

Stop biting the helping hand ~ 13 Nov 2016
Let’s not bite the hand that is trying to help us at a time when Malaysia needs to secure more foreign investment to shore up our flagging revenue from oil and gas.

Malaysia’s January to September total trade valued at RM1.077 tln ~ 5 Nov 2016

MITI: 3% drop in exports in Sept, overall trade down ~ 4 Nov 2016
For the first 9 months of 2016, Malaysian exports grew by 0.5%, imports increased by 0.7% and the country recorded a trade surplus of RM59.77b from RM60.93b last year.

The China X factor in Malaysia’s future ~ 4 Nov 2016

Malaysia, China make history with RM144 bln deals inked ~ 2 Nov 2016

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #3 on: November 21, 2016, 09:29:16 AM »
Singapore's exports slump 12% in October ~ 17 Nov 2016

Economic snapshot for ASEAN ~ 16 Nov 2016

Malaysia: Activity picks up in Q3

In Q3, GDP growth accelerated and came in at 4.3%—the fastest rate in three quarters. Q3’s expansion was driven by strong private consumption growth, which was fueled by higher wages and increased employment, as well as by a positive contribution from net exports, resulting from a faster contraction in imports. Meanwhile, growth in fixed investment and government consumption decelerated sharply in Q3, partly due to dwindling oil-related government revenues. In terms of monthly indicators, growth in industrial production and exports moderated in September. Despite Q3’s rebound, on 11 November, the ringgit plunged to a multi-year low in the offshore market as a reaction to Donald Trump’s unexpected victory in the U.S. elections. However, Bank Negara kept a tight grip on the onshore market and maintained the spot rate essentially unchanged.

Domestic demand, particularly private sector activity, will continue to support growth in 2017. However, Trump’s victory in the U.S. elections poses a risk to Malaysia’s export-dependent economy, if he follows through with introducing barriers to trade. FocusEconomics panelists expect GDP to expand 4.1% in 2016. For 2017, the panel sees GDP accelerating to 4.4%, which is unchanged from last month’s forecast.

Inflation inches up in October

Preliminary data show that inflation in ASEAN rose slightly from 1.9% in September to 2.0% in October. The result was driven by higher price pressures in Indonesia and Vietnam. Despite the slight rise, inflation remains at historic lows, which has opened the door for many central banks in the region to ease monetary policy rates and in October, Bank Indonesia cut its policy rate by 25 basis points.

Our panelists see price pressures remaining meek in the coming months and inflation averaging 2.3% in 2016. Upside risks to the inflation forecast have increased in recent weeks due to the currency depreciation following the U.S. elections. Next year, price pressures are expected to pick up as the deflationary effect from low commodity prices fades out and some scheduled subsidy cuts and tax hikes take place in key economies. Our panel sees inflation averaging 3.2% in 2017, which is unchanged from last month’s forecast. The stable outlook reflects unchanged projections for 7 of the economies surveyed, including major players Indonesia and Malaysia.

Singapore Economic Outlook ~ 15 Nov 2016

Singapore’s economy continued to weaken in the third quarter, weighed down by a significant drop in manufacturing output and a slight contraction in the services sector. The bad print reflected the impact of sluggish external conditions on the small, highly trade-dependent city-state economy, which is experiencing a cyclical downturn. The weakness in the most export-oriented sectors of the economy is being partially offset by the relative resilience of domestic-oriented segments, such as public construction and healthcare and education services. Some timid positive signs came from the manufacturing PMI, which, after returning to expansionary territory for the first time since June 2015 in September, broadly matched the previous month’s print in October, thanks to a slight improvement in new orders.

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #4 on: January 02, 2017, 12:09:35 PM »
《远方的家》 20161219 一带一路(77)马来西亚 奋斗在新山 ~ 19 Dec 2016




$100 billion Chinese-made city near Singapore 'scares the hell out of everybody' ~ 22 Nov 2016

Planeloads of buyers fly in as condos rise from the sea

Malaysia's economy just got a US$33 billion boost from China... so why the unhappiness?

Deals by PM Najib have stoked resentment of Chinese influence among ethnic Malays, but they could be among the big winners if they play their cards right

By Amy Chew
21 Nov 2016

The rumblings of discontent started before Malaysian Prime Minister Najib Razak had even set foot back on home soil.

While some of his countrymen saw his recent visit to China as a groundbreaking feat that would boost the nation’s flagging economy – he did, after all, secure deals worth RM144 billion (HK$258 billion) – others, in particular the country’s opposition parties, accused him of selling Malaysia’s sovereignty and compromising its territorial claims in the South China Sea, where the two countries are in dispute.

Businessmen complained they could be overwhelmed by cash-rich Chinese companies, stoking discontent among ethnic Malays – the two-thirds of the population known as the bumiputra or sons of the soil.

Many bumiputra already resent Chinese influence, despite enjoying special privileges over Chinese Malaysians in university admissions, scholarships and civil service jobs under affirmative action policies enshrined in the country’s constitution.

How will Najib’s golfing buddy Trump treat Malaysia’s 1MDB probe?

“Obviously it will create resentment. The majority in this country already feels provoked by the Malaysian Chinese and their grasp of the economy,” said a young ethnic Malay entrepreneur.

But any such resentment may not be universal . Some analysts expect members of the Umno ruling party, who have complained about potentially losing business to the Chinese, to actually benefit from Beijing’s largesse.

“Yes, there is resentment among Umno leaders with regards to the deals, but again these are the same leaders that will benefit through contracts from the projects and other means,” Asrul Hadi Abdullah Sani, an analyst with risk consultancy BowerGroupAsia said.

But businessmen and bankers dealing with mainland Chinese investors say Malaysia’s ethnic Chinese may not turn out to be the prime beneficiaries of Najib’s deals.

“China’s first preference for business partnership is with government-linked companies. There will be plenty of opportunities there for Malay entrepreneurs,” said one investment banker.

Xi Jinping seeks ‘cooperation’ as Najib Razak takes swipe at West

Tan Yew Sing, president of the Malaysia-China Chamber of Commerce, said Chinese investors were pragmatic and did not take ethnicity into account when doing business. “Besides, there is no pure Chinese company in Malaysia. Every company here has around 30 per cent Malay partnership,” Tan said.

Indeed, one ethnic Malay businessman in the property sector said mainland Chinese may even be more keen to partner Malay entrepreneurs as some felt Malaysian Chinese were arrogant and “looked down” on them as “nouveau riche and low class people”.

The Chamber of Commerce said such attitudes were not the norm, but acknowledged mainland Chinese might be inclined to partner Malay entrepreneurs with their better government connections.

Furthermore, some Malaysian Chinese who had invested in mainland China had suffered contractual and other disputes, making them more cautious.

“Malay entrepreneurs, as this is their first time working with mainland Chinese investors, may be more open without preset ideas. So mainland Chinese investors may find it easier working with them,” said the chamber’s Tan.

Malaysia PM Najib rapped for bringing 1MDB-linked stepson on China trip

Many analysts were upbeat about growing links with China, Malaysia’s largest trading partner for the past seven years. Trade between the countries hit US$55.7 billion in 2015.

“I don’t think it is fair to claim that Najib is selling the country … it will be positive for Malaysia’s growth prospects, especially with the proposed East Coast Rail Line, which will bring development to the eastern peninsular states, and the much needed power boost in Sabah from the Trans Sabah Gas Pipeline,” said Asrul .

Others felt Malaysia had few options but to turn to China, as funding from the West was drying up. “It’s not as if [Malaysia] has a lot of choices when it comes to fresh sources of FDI [Foreign Direct Investment] or trade or even favourable foreign loans nowadays. The harsh fact is that countries in the West are not able to put up any of these nowadays, as their own economies are in the doldrums,” said Oh Ei Sun, senior fellow at the S. Rajaratnam School of International Studies in Singapore. “Even previously antagonistic Asean countries, such as Vietnam and the Philippines, are availing themselves of this Chinese largesse, so why not Malaysia, which has maintained steady and productive relations with China over the years?” Oh added.

Still, some young entrepreneurs in the digital economy, while welcoming foreign investment, feared China’s giant fintech companies would dominate.

“Foreign investment is always welcome. I believe it will help in exposing local businesses to the needs of demanding Chinese investors especially in manufacturing and lately, the digital economy,” said Fazil Fuad, the 28-year-old CEO of C27, a digital innovation agency. Fazil hoped the government deals would be transparent so local entrepreneurs could “leverage” Chinese investment. “China is one of the world’s economic powerhouses and the benefits we can reap are almost limitless – as long as the interests of local businesses are protected and policies written to ensure financial fair play and access to capital to compete.”

A Malaysian government spokesman said Chinese FDI would boost all segments of society. “While some have tried to make political capital at the expense of these agreements, there is no question of Malaysian sovereignty being eroded in any way ... [projects] will remain owned by Malaysia and operated by Malaysians. FDI from any destination in no way affects the rights and protection of the bumiputra, whose development will always be a priority for the government. [Neither will it affect] the equitable and inclusive distribution of the fruits of the country’s growth to all its citizens.

While the initial rumblings of too much cosying up to China can be managed and the economic benefits be evenly spread, the underlying reality of race cannot be ignored, said observers. If the situation is not well-managed, ethnic Chinese, who make up a quarter of Malaysia’s population of 31 million, could end up being on the receiving end.

“With the increased racial rhetoric in Malaysian politics and deep rooted distrust of the Chinese, this could be a problem in the future,” Asrul said.

Malaysia's Najib risks backlash at home after deals with China ~ 7 Nov 2016

Offline CurryLee

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #5 on: January 02, 2017, 04:49:52 PM »
 :clap: :D :nod: :thumbsup:
malimalimaliongongongnotongchefbutishua thuatong

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #6 on: January 12, 2017, 03:55:13 PM »
Hong Kong billionaire Li's force field may be fading ~ 11 Jan 2017

Bank of America warns US-China tension puts global economy at risk in 2017 ~ 10 Jan 2017

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #7 on: February 07, 2017, 04:05:35 PM »
Malaysia's decade-old push for Mid-East investments stumbles

Saudi Aramco's pullout from joint venture is latest crack in policy to draw Arab capital

By Leslie Lopez
6 Feb 2017

The decision by the Saudi Arabian Oil Company (Saudi Aramco) to pull out from a multibillion-dollar petrochemical project in Johor with state-owned Petronas has exposed cracks in Muslim Malaysia's decade-old push to attract capital from the Middle East.

Early last week, Malaysia's Second Finance Minister Johari Abdul Ghani confirmed international news reports that Saudi Aramco had decided to withdraw from the US$27 billion (S$38 billion) refinery and petrochemical joint-venture development in Pengerang, Johor.

Mr Johari gave no reasons for Saudi Aramco's pullout, but he emphasised that it would not impact the project because Petronas has the financial muscle to proceed with the petrochemical venture.

There is little doubt among oil industry executives that the project, which is central to Malaysia's plans to rival Singapore as a regional oil and gas processing hub, will go ahead as planned.

But Saudi Aramco's surprise decision to axe its Malaysian plans has added to a growing list of troubles Malaysia is facing with investors from the Middle East, who are also facing financial problems because of the slump in oil prices.

In recent months, economic ties with Abu Dhabi, which has long ranked as the Arab world's most aggressive investor in Malaysia, have hit the skids over a dispute stemming from the financial debacle at state-owned 1Malaysia Development Berhad (1MDB).

Abu Dhabi's International Petroleum Investment Company is demanding US$6.5 billion from the Malaysian state fund after it defaulted on a multibillion-dollar financial assistance arrangement.

The dispute has gone into arbitration and, since then, Abu Dhabi's state-owned entities have withdrawn their involvement from several planned real estate projects in Malaysia, such as the development of a financial hub in the Iskandar region in Johor and the 1MDB-led Tun Razak Exchange project in the capital city of Kuala Lumpur.

Malaysia has long relied on foreign investment to drive its economy and the push to attract capital and tourists from the Middle East began under former premier Abdullah Ahmad Badawi, who succeeded Tun Mahathir Mohamad in late 2003.

At the time, the oil-rich Middle East countries were shunning the West following the Sept 11, 2001 attacks by militants on the United States and Malaysia emerged as a natural fit because of its Muslim credentials and stable politics.

More than a decade later, results from this push to attract Arab capital are mixed.

Malaysia's banking sector has benefited from the presence of three Middle Eastern financial institutions that have set up base in the country.

The country is also a popular destination for Middle Eastern tourists, who take advantage of the weakening local currency and the relatively cheap shopping compared with Singapore.

But larger ventures have not worked out so well.

For example, the Malaysian government wanted Middle Eastern investors to take the lead in the development of the Iskandar region in Johor, particularly in Medini, a 930ha mixed-use development that would feature a financial district envisioned as a hub for global Islamic finance.

The project attracted big names such as Kuwait Finance House, Abu Dhabi's state-owned Mubadala Development Group and Aldar Properties, another real estate developer in Abu Dhabi.

But Arab involvement in Medini quickly fizzled out after the 2008 global financial crisis and the investments were subsequently taken over by private Malaysian interests.

Other big-ticket Arab-led projects in Malaysia that have been quietly axed in recent years include plans by Abu Dhabi business groups to invest in a US$7 billion oil storage facility in Johor, and a US$4.2 billion aluminium smelter project in Sarawak.

Abu Dhabi investors have also pulled out from 1MDB's multibillion-dollar Tun Razak Exchange real estate development on the fringes of Kuala Lumpur.

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #8 on: March 05, 2017, 01:05:50 PM »
Malaysia's FDI drops 5% in 2016

By Sulhi Azman
March 2, 2017 : 6:44 PM MYT   

KUALA LUMPUR: Malaysian Investment Development Authority (MIDA), a government-owned promotion agency, saw total foreign direct investment (FDI) in the country fall by 5% to RM41.18 billion in 2016, compared to RM43.44 billion in 2015.

"The decline was due to lower investment in the manufacturing and primary sectors," International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in a briefing in here today.

"Malaysia has been more selective in its investment agenda, preferring quality projects in targeted ecosystems that will have a significant knock-on and multiplier effect throughout domestic economy," he added.

The decline in the country's FDI, said Mustapa, was in line with the global FDI inflow, which slowed by 13% to US$1.52 trillion in 2016 from US$1.7 trillion a year earlier.

China was the largest contributor to the country's FDI last year, with RM4.7 billion of committed investments, followed by Netherlands (RM3.2 billion), Germany (RM2.6 billion), United Kingdom (RM2.6 billion), South Korea (RM2.2 billion) and Singapore (RM2.1 billion).

As for total investments in the country, MIDA clocked in RM207.9 billion in 2016, a 7.7% increase from RM193 billion a year ago, driven by investment in the services sectors.

According to MIDA, the ratio of foreign and domestic investment is still healthy, with 71.6% or RM148.9 billion generated domestically, while the balance 28.4% or RM59 billion came from foreign investors.

"United States, Netherlands, China, Japan, Singapore, South Korea and the United Kingdom," Mustapa said, adding that together, these seven countries jointly accounted for 55.8% of total foreign investments in the three core areas: manufacturing, services and primary sectors.

Last year, investment in the manufacturing sector fell by 21.7% to RM58.49 billion from RM74.69 billion in 2015, while total number of projects increased to 733 from 680 a year ago.

"The investment numbers looked big in 2015, but that was bumped up by two lumpy projects in Pengerang, Johor, and Sarawak," explained Mustapa, who foresees investment in manufacturing activities slowing further to RM55 billion this year.

"We have some mitigating strategies to support activities in the manufacturing sector, which include increasing efforts to develop and enhance local supply chains to support the multinational companies," he added.

As for the services sector, Mustapa said investment activities continued to rise to RM141.21 billion in 2016 from RM114.55 billion in 2015, anchored by key real estate projects.

"In 2017, we see investment in the services sectors to come in at RM75 billion, with global establishments, healthcare, education and hospitality to be the main key driver," said Mustapa, who “prefers to give moderate targets as opposed to ambitious ones”.

"Despite the volatilities, we are off for a good start this year, the latest of which is (the) collaboration between Petronas and Saudi Aramco which has committed [an investment of] US$7 billion," he concluded.

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #9 on: March 08, 2017, 06:27:26 AM »
Malaysia’s edge in drawing investments from China ~ 7 Mar 2017
Among countries along the Maritime Silk Road, Malaysia has a large ethnic Chinese population, Chinese language education system and impeccably preserved Chinese culture.

Works on Bandar Malaysia will begin soon ~ 6 Mar 2017

Bandar Malaysia

Malaysia says Saudi Aramco will invest $7 billion in oil hub ~ 27 Feb 2017

Hey, Big Spender ~ 21 Jan 2017

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #10 on: March 20, 2017, 10:08:08 AM »
Jack Ma to launch Alibaba's regional distribution hub in Malaysia ~ 18 Mar 2017

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #11 on: March 31, 2017, 01:52:08 PM »
DAP rep asks Selangor not to help with ECRL project ~ 30 Mar 2017

DAP: Come clean on RM55 billion ECRL project ~ 30 Mar 2017
Tony Pua says paying nearly twice the estimated cost for rail link project is 'absolutely scandalous', following a reply in the Dewan Rakyat to his query on the project.

RM 55bil East coast rail kicks off ~ 29 Mar 2017
China’s state-owned enterprise China Communications Construction Co Ltd (CCCC) will fund the project. It was reported that the project will also be financed via a soft loan from the Export-Import Bank of China.

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #12 on: April 24, 2017, 07:34:55 AM »
Local enterprises have become the backbone of China’s outbound investments ~ 24 Apr 2017
China’s outward FDI in 2016 rose 30% year-on-year to a record high of US$188.8 billion.

BMY Group hit by China investment crackdown ~ 23 Apr 2017
BMY Group founder Eric Gao is revising his plans to raise $50 million from Chinese investors due to the country's capital controls.

China investments start rolling into Bengal ~ 22 Apr 2017
The investments are in the fields of agro machinery manufacturing, fertilisers, food processing, chemicals and pesticides manufacturing and seeds.

Perkasa wants updates on China investments every 6 months ~ 22 Apr 2017

Malaysia has no fear of the facts: Najib ~ 20 Apr 2017
On the contrary, what FDI shows is that people around the world believe that Malaysia is a good place to do business, to grow new businesses, and to expand.

China capital outflows stabilized in first-quarter as capital controls bite ~ 20 Apr 2017
Reduced pressure from outflows has helped steady the yuan this year and brought China's foreign currency reserves back over the closely watched $3 trillion mark.

Chua: Matrade expected to ink MOU with China Post at CAEXPO 2017 ~ 14 Apr 2017
  • Bilateral trade between Malaysia and China grew by 28.9% year-on-year (y-o-y) to RM19.79 billion in February 2017, whereby exports jumped 47.6% y-o-y to RM9.57 billion.
  • The increase in exports was mainly driven by higher exports of electrical and electronics products, petroleum products, chemicals and chemical products, rubber products, liquefied natural gas, as well as palm oil and palm oil-based agriculture products.

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #13 on: May 05, 2017, 09:32:38 AM »
China fund fears creep up in Malaysian market ~ 5 May 2017
  • Now, there is the perceived implications on political uncertainty, ‘murkiness and reliability’ of government deals, and dampened sentiment of the Chinese foreign direct investment theme in Malaysia.
  • This potential u-turn in sentiment could halt or reverse the strong year-to-date foreign equity inflow into Malaysia, and hence, the ringgit’s recent uptrend.
  • Hence, we foresee a period of risk-off, marked by profit-taking on the many concept stocks which have gone ballistic year-to-date.

Offline zuolun

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Re: Foreign Direct Investment (FDI) & Fund Flows
« Reply #14 on: May 14, 2017, 07:52:57 AM »
CREC to build oil terminal at Asia Petroleum Hub ~ 13 May 2017
RM1.8bil contract comes days after collapse of Bandar Malaysia deal

Dalian's involvement in Bandar Malaysia will spur FDIs: Analysts ~ 13 May 2017