Investment: the impact of Foreign Direct Investment (FDI) in Malaysia

The problem statement of this study is how far FDI gives benefit to Malaysia according to the area which is economic growth, employment, technology diffusion and transfer, and spillover/linkage to domestic firms. This research also study about what most impact that FDI gives to Malaysia. As far as concern with the FDI, this research will focus to analysis whether Malaysia gain either positive or negative impact from receiving the FDI. The research objective is to determine the majority level of FDI impacts, to measure the central tendencies and dispersion, and to determine the trend analysis between FDI and its impact. This research use exploratory and descriptive because an exploratory study is undertaken when not much is known about the situation of FDI in Malaysia, in descriptive research design it would ascertain and to describe the characteristics of the variables of interest in the impact of FDI Malaysia. The secondary data were used in this study which is journals and articles related to this study for the literature review writing. In this research, the program that will use is SPSS. To analyze there have three type of analysis which is frequency, descriptive statistics and line chart for trend analysis. The finding of this research is technology not easy to diffuse and transferred from MNCs to Malaysia through FDI. However, FDI gives meaningful impact to our domestic firms because spillover/ linkage exist between MNCs and domestic firms through copying foreign affiliates’ technique.