FöRFATTARE
Safavizadeh, Ali

DATUM
2000-04-27

INSTITUTION
Industriell ekonomi och samhällsvetenskap / Nationalekonomi

SAMMANFATTNING
Since the beginning of the 1970s, Malaysia has succeeded in attracting foreign direct investment. The flow of foreign direct investment into Malaysia has been exceptionally high, amounting to just under 5 percent of GNP between 1989 and 1994. Malaysia is stimulating foreign direct investment on an ever-increasing scale, by improving investment conditions and by creating a more attractive destination for the relocation of overseas firms. The purpose of this paper is to examine the reasons behind the high rate of foreign direct investment into the Malaysian oil industry. To find out the reasons behind the decisions companies make when selecting a country to invest in, a questionnaire directed to ten foreign oil investors in Malaysia was conducted. The results show that investment into the industry has mainly been stimulated by long-term national stability, certain ownership of energy rights, high import taxes and advantage of low cost labour. Malaysia is a fast growing market and it seems like that the Malaysian government has created and maintained a stable business climate for foreign investors.

ISSN 1404-5508 / ISRN LTU-SHU-EX--00/069--SE / NR 2000:069