Overseas investments in Malaysia amount to a whopping US$3.39b in 2Q11

And guess what countries were the top sources of foreign direct investments in Malaysia?

Japan, USA, and Mauritius were the top three sources of FDI inflows in the country, according to Maybank IB.

Here’s more from Maybank IB:

FDI: Net inflows in 1H 2011 after four consecutive years of net outflows. FDI into Malaysia remained strong at RM10.16b in 2Q 2011 after the RM11.073b recorded in 1Q 2011 and RM10.737b in 4Q 2010. FDI inflows were primarily channelled into healthcare services, manufacturing, oil & gas, and wholesale & retail trade sectors. The top three sources of FDI were Japan, USA, and Mauritius. 1H 2011 total was RM21.233b, on track to achieve – even exceed – the official target of around RM30b or USD10b this year. FDI has registered net inflows in the last four years, but in 1H 2011 it recorded a net inflow of RM3.2b as Malaysia’s direct investment abroad trailed the above-mentioned FDI into Malaysia at RM17.993b. The major sectors attributed to DIA were financial & insurance, information & communication and agriculture. The top three immediate investing countries of DIA were Singapore, Mauritius, and Australia.

Eighth consecutive quarter of net portfolio investment inflows. Portfolio investment net inflows surged to RM48.055b in 2Q 2011 and to RM56.430b in 1H 201. The bulk of the inflows went into the bond market as indicated by the sustained uptrend in foreign holdings of debt securities since mid-2009, in contrast to the somewhat flattish foreign shareholdings in Bursa Malaysia. Meanwhile, Malaysia still enjoyed net equity inflows up to July 2011 (+USD90m) although the pace has been slowing on monthly basis since the recent high in Apr 2011 (+USD237m) with possible net outflows position this month following the global equity sell off.

Sustained current account surplus of RM23.397b in 2Q 2011 and RM49.292b in 1H 2011. This is equivalent to 11.2% of GDP in 2Q 2011 and 11.9% of GDP in 1H 2011, the same as in 1H 2011.

 

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