Fdi Malaysia and Sigapore

1.0 Introduction

Based on this report, describe about the analysis between Singapore and Malaysia FDI. The objective of this report is to understanding and analysis of in Singapore and Malaysia FDI from years 2000-2010. Furthermore, this report explained about why the both countries FDI increase and decrease. The first part described the Singapore FDI and second part explained about Malaysia FDI. The following part explained about the comparison between Singapore and Malaysia FDI and the reasons for the increase and decrease FDI with evidences. Singapore is a developed country and also leading FDI in ASEAN countries. In Malaysia country FDI remains an imperative feature and play an important role to increase economic growth by improving domestic capital formation (Yusof, 2014). However, based on the 2000-2010 data suggest that Malaysia FDI has dropped with Singapore FDI. Singapore well performed in FDI from 2000-2010. Finally, this report elaborated recommendation of the future study about two countries.

2.0 What is Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) arises when a company invests directly in services to produce or market a product in a foreign country (Hill, 2011). Foreign direct investments change considerably from indirect investments. For example, portfolio flows wherein foreign institutions invest in equities listed on a state's stock exchange.

3.0 Singapore and Malaysia FDI 2000-2010

4.0 Singapore FDI

Foreign direct investment (FDI) is important for Singapore economic growth and Singapore remains an attractive host to FDI (UKEssays, n.d). In 2000-2010, Singapore FDI has generally been strong. In 2007 Singapore FDI reached a peak US$ 37 billion, before in 2008-2009 happen the financial crisis and economic crisis (Locknie, 2012). In 2002-2003 and 2008, sharp decline of Singapore FDI. One of the reasons is a financial crisis. However, in 2010 the FDI increased to US$ 38.6 billion to more twice compare...