Malaysia: An Overview of the Legal Framework for Foreign Direct Investment

Among the Southeast Asian countries Malaysia has keenly pursued in attracting Foreign Direct Investment (FDI). In this respect it has constantly striven to maintain the competitiveness of FDI determinants, including the legal infrastructure. Various policy instruments and institutions have been deployed. Today, Malaysia is encountering fresh challenges has FDI flow seems to have dwindled in the region. To counter this phenomenon the Government of Malaysia (GOM) has enhanced the utility of the existing determinants and is constantly considering new strategies to attract FDI. Accordingly, the FDI legal framework has also been enhanced. This paper examines the legal aspects of FDI in Malaysia on a broad basis and within the context, the emerging legislative policy trends.