Malaysia’s financial account shows a large net outflow of investments in both the first (far right column) and second quarters of 2009.
| Financial Account | RM million | Q2/09 | -24,198 | -29,758 | |
| Direct Investment Abroad | RM million | Q2/09 | -8,964 | 435 | |
| Direct Investment in Malaysia | RM million | Q2/09 | 863 | 2,761 | |
| Portfolio & Financial Derivatives – Net | RM million | Q2/09 | -9,933 | -12,153 | |
| Other Investment – Net | RM million | Q2/09 | -6,163 | -20,799 |
Where is all the money going? – Source: Bank Negara
The latest Unctad investment flows report shows a similar net outflow of foreign direct investment in 2008.
This is an article I wrote for Asia Times:
PENANG – Although Malaysia appears to have weathered the worst of the global economic slowdown, indications of a recovery are tentative and clouded by a worrying trend of net foreign investment (FDI) outflows as foreign companies shy from new commitments and local ones seek opportunities abroad.
Malaysian gross domestic product (GDP) contracted 3.9% year on year in the second quarter, an improvement on the 6.2% collapse recorded in the first quarter. With exports representing as much as 120% of Malaysia’s GDP, the slump in global demand and commodity prices has taken an especially heavy toll on Malaysian producers. Full article here.
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