OECD Investment Policy Reviews: Malaysia 2013

Malaysia stands out as one of the economic success stories in Asia. Foreign
direct investment (FDI) has played a major role in the growth and
diversification of the economy, and has been a key part of an outward-oriented
development strategy. As an early mover in terms of export-led development,
Malaysia has traditionally received significant amounts of foreign investment
relative to the small size of its economy. Today, Malaysia is a net outward
investor, with its companies increasingly becoming regional and global
players.

In spite of this enviable performance, the Malaysian economy is confronting
numerous inter-related challenges as it strives to attain developed country
status by 2020. Private investment as a share of GDP has declined, and FDI as
a share of total FDI in ASEAN has decreased since the early 1990s.
The government has engaged in ambitious reforms across the board which have
led to increased liberalisation and more efficient regulations and have
contributed to a strong enabling environment for business. Malaysia will also
continue to benefit from a dynamic and rapidly integrating region, thereby
retaining the attention of investors.

OECD Investment Policy Reviews: Malaysia presents an assessment of the
investment climate in Malaysia, including the institutional and legislative
framework for investment. It focuses on policy options in the areas of
investment, infrastructure, finance, responsible business conduct, corporate
governance and green investment and discusses measures to help revive both
foreign and domestic investment.