Business

Wednesday October 17, 2007

FDIs into Malaysia up 52.8% to US$6.1bil in 2006



PETALING JAYA: Foreign direct investments (FDIs) into Malaysia surged 52.8% to US$6.1bil last year, according to the United Nations Conference of Trade And Development (Unctad) World Investment Report 2007.

It said Malaysia surpassed Indonesia to rank seventh among economies in South Asia, East Asia and the South-East Asia in terms of attracting FDIs.

The report also highlighted that Malaysia's FDI outflows had more than doubled to US$6.04bil as a result of strategic asset acquisitions abroad and overseas expansion activities by Malaysian corporations and banks.

It said Malaysia's FDI stocks, which rose to US$53.6bil in 2006, reflected investment activities by transnational corporations to their own foreign affiliates.

The report said Petronas was second among non-financial transnational corporations with foreign assets worth US$61.6bil.

Regionally, FDI inflows to South Asia, East Asia and South-East Asia rose 19% in 2006 to a new high of US$200bil, while outflows jumped by 60% to US$103bil.

China and Hong Kong retained their positions as the largest FDI recipients in the region, followed by Singapore and India, it said.

Global FDI inflows, meanwhile, amounted to US$1.3 trillion in 2006 following strong economic performance around the world.

It added that global cross-border mergers and acquisitions rose 58% during the first half of 2007, indicating that FDIs should continue to grow in 2007.


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