The role of multinational corporations in developing states

Abstract

The pros and cons of the role of foreign investment in promoting economic development have been widely discussed in economic literature. The aim of our discussion this afternoon is to examine the role of foreign investment inthe context of the Malaysian economy where foreign ownership and control of the country's major economic activities are already substantial. In 1970, 60.7 percent of the share capital of limited companies was owned by foreigners. Their dominance amounted to 75.3 per-cent in agriculture, forestry and fishing, 72.4 percent in mining and quarrying, 63.5 percent in commerce, 59.6 in manufacturing and 52.2 percent in banking and insurance.