Factors affecting foreign direct investment decision in Malaysia perspective / Syaza Najiha Mohd Noor

The development and the economic growth of one country are depending on the foreign direct investment (FDI). Foreign Direct Investment (FDI) is one of an extremely important role of a country. Most of the developing countries are rely on the FDI to expose their country economy as they face lack of capital in their developing process. FDI bring out capitals, technology and skills into the developing countries that immediately helping to satisfy country's need.

In Malaysia growth performance, it really depends on FDL It generates the economic growth by increasing the capital formation which include production capacity, export growth and employment in Malaysia. FDI inflows in Malaysia fluctuate in 1996 until 2010 and the volatility of FDI inflows drew questions to the researcher regarding the factors affecting FDI decision in Malaysia by annual time series data from 1982 until 2015. The dependent variables and independent variables are applied to the multiple regression model to examine the relation between both variables.

All independent variables are significantly and have the positive affect in the Malaysia FDI inflows except one of the independent variables. Further explanation regarding the one independent variables that are failed to be significant relationship with Malaysia FDI inflows.