Foreign direct investment and trade in Malaysia : past, present and future

Abstract

The recent elections and change of government in four states of Malaysia, especially in Penang has raised questions on the continuity of policies in these states. In particular, foreign investors are concerned to know whether Malaysia's relatively open investment and trade regime will be continued. In other words, will the government continue to maintain an investor-friendly climate in these states? The objectives of this paper are three fold. First, it will assess the need for foreign direct investment and trade in the last fifty years and its contributions toward the Malaysian economy. Second, it will examine whether the same needs are valid in the current environment and finally, it will suggest whether these needs will continue to be valid for the next 50 years.