Domestic investment initiative: strategy for developing local capabilities

Abstract

The success of Malaysia's industrialisation drive has been largely foreign direct investment (FDI)-driven. In fact, the large inflows of FDI in the late 80's, also directly contributed to the generation of even domestic investments into related industries especially through the equity and local requirements. Nonetheless, the momentum and growth of domestic investments has yet to match the FDI as the primary source of growth in the manufacturing sector.