The factors that influence foreign direct investment in Malaysia / Nur Adilla Othman

This study examines the factors that attract foreign direct investment in Malaysia for the period 1986 to 2015. FDI had contributed significantly to the transformation of the Malaysian economy as reflected by the changing composition of its exports and the raising share of FDI inflows. This study attempted to find out determinants of FDI inflows in Malaysia. The study used data concerning the FDI inflows into Malaysia from year 1986-2015 by using Ordinary Least Square method. Analysis was then carried out to identify the relevance of these determinants towards FDI inflows into Malaysia. Based on the result obtained, it shows that FDI inflows have significant positive relationship with gross domestic product, inflation and trade openness. While, real exchange rate show the negative impact towards foreign direct investment in Malaysia.