The determinants of foreign direct investment in Malaysia / Haziqah Aman

This research aims to determine the factors that affect the Foreign Direct Investment (FDI) in Malaysia. As declared in government budgeting 2019, the FDI in Malaysia shows that our country was increased compare to last year. This research has investigated the dependent variable, FDI and the independent variables to be used are macroeconomic factors which are inflation rate (IN), stock market (SM), gross domestic product (GDP), and interest rate (IR). Several theories and researches relevant to the research objectives have been comprehensively reviewed throughout the literature review process. The theoretical framework has led the research towards the
perspective of how to answer the research questions. The secondary data have been gathered through the journal, news and World Bank's World Development Indicators. This research covered 25 years which commencing from the year 1994 to 2018. The multiple linear regression tests have been undertaken, and the analyses of the findings have been discussed through regression analyses. Through the analysis, IN and SM show a strong positive relationship with FDI while GDP and IR show the negative relationship with FDI. Based on the findings analysed, the conclusion of the research study was developed. Finally, several recommendations were made in order to extend
the research questions for future research.