Factors affecting foreign direct investment (FDI) inflow in Malaysia / Marfazira Nur Mohd Mahadar

Foreign Direct Investment (FDI) is one of the critical component to a country's economic growth and development. Developing countries frequently confront a capital shortfall throughout the development process. As a result, they rely increasingly on FDI, which contributes capital and technology. According to statistics, FDI is the driving force behind Malaysia's rapid economic expansion, so it is important to know what attracts FDI inflow. The issue of a drop in FDI in Malaysia occurred in 2000, and it occurred again last year in 2020. As a result of the problem, the researcher wants to look at the aspects that influence FDI performance. The independent variables used in this research are inflation rate, interest rate, exchange rate and unemployment rate in Malaysia. All the data used in this study are secondary and time series data that consists of 30 data sets gathered from 1991 to 2020. Multiple linear regressions analysis was used to regress the data in this study. From the findings, only two of the independent variables which are inflation rate and exchange rate that have a significant relationship with FDI inflow while the other two independent variables; interest rate and unemployment rate are not significant.