Although the rate of economic growth in Malaysia is one of the fastest in the south east Asian region and is predicted to accelerate next year, analysts are concerned that a lack of foreign direct investment in the country could put a brake on the trend.
From January to July of this year the rate of applications for foreign investment has risen by 24.7%, whereas the rate of approval for applications has fallen by 43.4%.
Several analysts are of the opinion that the key to maintaining growth through attracting foreign investment is corporate reform. However, as the spectre of insurgency looms in Indonesia, it is likely that the Malaysian government will be concentrating more effort on maintaining social stability than on attracting foreign investment
Financial Times
