Year 2008 - Foreign Direct Investment ("FDI") is RM46 billion. If USD1 = RM3.30 then it's only a paltry sum of USD14 billion for one whole year.
How did 2009 fare in the early months then?
The Malaysian Industrial Development Authority ("MIDA") was very frank when they said that the FDI for 2009 would fall by 50%.
Why would Malaysia's FDI fall that drastically?
Up to May 2009, it was reported that the FDI has reached the level of RM4.2 billion. Now, half of RM46 billion is RM23 billion. Will Malaysia be able to add another RM18.8 billion to meet at least 50% of year 2008's FDI?
On the other hand, what was reported by the local media differentiated from the overseas news. It was stated in United Nations Conference on Trade and Development ("UNCTAD") under their World Investment Report 2009 that inflows to South, East and South-East Asia witnessed a 17% expansion to hit a new high.
Malaysia's International Trade and Industry Minister did mention that the FDI for January to September 2009 is around RM12.6 billion. That's really bad.
By the end of 2009, MIDA has shown us that foreign investments/projects approved for 2009 is RM16.4 billion. Way below what was mentioned earlier.
But I think the worse is yet to come. Foreign investments/projects approved for Jan-Mar 2010 is only a measly RM760,000. And the government is telling us that they can hit 6% growth for 2010?
The government just has to be truthful and share with us the pain. They should prepare us instead of giving us the nice painted picture.
UNCTAD will be launching the World Investment Report 2010 on 22 July 2010. I wonder what will be reported of Malaysia then.
Tags: United Nations Conference on Trade and Development, UNCTAD, World Investment Report, Foreign Direct Investment, FDI, Malaysia FDI