Foreign Direct Investment (FDI) in Malaysia registered a net inflow of RM14.6 billion in 2020 as compared to RM32.4 billion in the previous year, contracted by 54.8 per cent partly as repercussion from the global economic uncertainties due to the pandemic situation. In terms of position, FDI expanded to RM698.8 billion as at end of December 2020 (2019: RM687.8 billion). Meanwhile, investment income decreased to RM44.6 billion from RM60.5 billion in 2019, attributed by lower income received by foreign companies.
FDI flows were predominantly in the form of equity & investment fund shares. Nevertheless, this component showed a decline as compared to previous year attributed by lower inflows in equity. In the meantime, debt instruments recorded a turnaround to net outflow, due to higher loans extended to affiliates abroad.
Services and Manufacturing sectors were the main contributors for FDI flows while FDI income was largely in Manufacturing sector, followed by Services.
The largest investment flows were mainly from Singapore, Thailand and China. Meanwhile, investors from Singapore, USA and Hong Kong gained the highest earnings in 2020.
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