A study on relationships of interest rate and exchange rate with foreign direct investment in Malaysian services sector / Siti Norlailly Mohamed Nor

The purpose of this study is to identify what are the relationship between interest rate and exchange rate with FDI in Malaysia services sectors. Data for FDI and interest rate are based on the monthly basis bur data for exchange rate based on daily basis. Exchange rates that were chosen consist of US Dollar (USD), Japan (Yen), Korea (Won), Singapore Dollar, and Thailand (Baht). All the data taken from the Statistical Bulletin Bank Negara and Ministry of Finance starting from the year 2005 to 2007. In analyzing the data, Simple Linear Regression and Multiple Linear Regression model are used. Based on the analysis, it shows that there is significant relationship between the interest rate and FDI in services sector. For the exchange rate, only Korean (Won) currency that has a significant relationship with FDI In services sector. For the others of exchange rates were react negatively with FDI in services sector in Malaysia.