The impact of China's economic growth towards investment opportunities in the Malaysia property industry for FDls / Suhana Ibrahim

Foreign Direct Investments (FDls) have become one of the major contributors to country economic growth. Since 1973 until 2003, the FDI inflows have give impact to the economic growth for both China and Malaysia. FDI inflows have indirectly affected the investment opportunities in the property industry since they need the office and land for their business operation. So, it is indirectly give affect to the growth of Malaysian property industry. However, the emerging China nowadays made them the major player in the global economy. Many investors like to invest there and this might be affecting the FDI growth in Malaysia. To study the impact of FDI inflows in China to FDI in Malaysia, the researcher have use the secondary data. The data is for the total FDI inflows in million USD in China and Malaysia from 1973 until 2003. From the data, the researcher does the analysis for the impact of FDI inflows in China to the FDI in Malaysia by using the Microsoft Excel to compare the movement of the FDI in both countries. To analyze the level of significance of the FDI inflows in China and Malaysia, the researcher use the Statistical Package for Social Science (SPSS version 14.0) to analyze the correlation between the FDI for both countries. As the objective of the study to analyze the impact of the FDI inflows in China to the FDI in Malaysia, the result shows that in thirty years period of time from 1973 to 2003, the movements of FDI in China have indirectly affected the FDI in Malaysia. From the correlation analysis, the level of significance has been achieved where the level is significance at 0.000 and the Pearson correlation is 0.649. It means that, when FDI inflows in China increase by 100%, the FDI inflows in Malaysia decrease by 64.9%.