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Malaysia's Investment Malaise: What Happened and Can It be Fixed?

Publication | April 2012
Malaysia's Investment Malaise: What Happened and Can It be Fixed?

For private investment in Malaysia to recover from the impact of the Asian financial crisis, this paper recommends to address the distortions in the New Economic Policy and curtail the influence of government-linked corporations.

This paper aims to critically examine the factors underlying the decline in private domestic and foreign investment in Malaysia, with a view to identifying policy changes that could reverse this trend. Private investment in Malaysia has never fully recovered from the impact of the Asian financial crisis. Resolving the problem requires addressing the distortions in the New Economic Policy and curtailing the influence of government-linked corporations.

Contents 

  • Abstract
  • Introduction
  • Domestic Investment (Pre- and Post-AFC)
  • Foreign Inward and Outward Investment (Pre- and Post-AFC)
  • The Fall in Private Investment: Likely Causes
  • Policy Changes to Retain and Revive Private Investment
  • Conclusion
  • References