Capital outflow from Malaysia – where to?

Much has been said about the capital outflows from Malaysia. But where exactly are Malaysian firms investing in?
The top 10 destinations for Malaysian investments in 2009 were:

1. Singapore – RM5.8 billion
2. Hong Kong – RM4.3b
3. Mauritius – RM3.4b
4. Indonesia – RM2.2b
5. The Netherlands – RM1.9b
6. United States – RM1.9b
7. Cayman Islands(!) – RM1.8b
8. Thailand – RM1.3b
9. United Kingdom – RM1.0b
10. Bahamas(!) – RM0.9b

In terms of sectors, the investments were in:

• services (46 per cent)  i.e. oil and gas, banking and telecommunications services;
• oil and gas (38 per cent); and
• manufacturing (6 per cent) – mainly upstream and downstream activities in the palm oil sector

This information was contained in a reply from the International Trade and Industry Ministry in response to an oral question raised in Parliament by MP for Segambut Lim Lip Eng on 30 June 2010.