Business

Wednesday December 12, 2007

Malaysia ranks 16th among top 25 destinations for FDI



NEW YORK: Although China and India continue to rule the roost, Malaysia has been rated 16th among the 25 top destinations for foreign direct investments (FDI).

China is the world's number one FDI destination with India taking the second spot while three other Asean nations are also in the list - Singapore at seventh, Vietnam 12th and Indonesia 21st, according to a study by global strategic management consultancy A.T. Kearney.

The current malaise in the credit markets does not seem to have dampened corporate plans for a fresh flush of FDI, according to the study that was based on a survey of top executives conducted since the subprime crisis began this summer.

The assessment of senior executive sentiment at the world's largest companies found corporate investors optimistic about the prospects for developing nations and increasingly targeting them for more corporate investments in the years ahead, according to Kearney's FDI Confidence Index.

Workers at a construction site in New Delhi, India. - AFP
The index provides an overview of the prospects for international investment flows. Companies that participated in the survey accounted for more than US$3.8tril in global revenue.

While China and India remain uncontested as the leading FDI destinations in the 2007 index, 15 of the most attractive FDI destinations are developing markets.

Brazil, the United Arab Emirates (UAE) and Russia figure in the top 10 destinations.

South Africa and other Gulf states (Bahrain, Kuwait, Oman and Qatar) made their debut in this year's index while Vietnam, Malaysia and Indonesia are returning to the index's top 25 most attractive destinations.

Emerging markets have also registered the strongest investor optimism, with India, China, Brazil, the UAE and Vietnam experiencing the most positive change in investment outlook in the past year, according to executives. – Bernama

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