Determinants of inward flow of foreign direct investment in Malaysia

The study of the inward of the foreign direct investment (FDI) in the Malaysia is a crucial due to the drop of the investment in 2017. Many factors affect the inward flow of the FDI such as the macroeconomic variables and also the stability of the country itself. In this study, the focuses are on the selected macroeconomic variables to seek the relationship with the inward flow of the foreign direct investment in Malaysia. The data use is in time series and it is quarterly from the year 2008 until 2018. The study uses the Ordinary Least Square (OLS) in measuring the relationship of the independent variables and the inward flow of the foreign direct investment. This paper also gives a brief idea to the bodies or the policy maker to make the Malaysia a better country with a healthy flow of foreign direct investment inflow in Malaysia. The Industrial Revolution 4.0 and also the 5G internet can be achieve with the steady inward flow of the foreign direct investment.