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Malaysia Summary Of The International Investment Position 2010 (Updated: 22/06/2011)
Overall
As at end of 2010, the international investment position of Malaysia vis-à-vis the rest of the world recorded net assets of RM13.3 billion represented 1.7 per cent of Gross Domestic Product (GDP) at current prices. Compare with last year, the net assets position decreased by RM92.5 billion. This lower net assets position was mainly due to significant increased in portfolio investment liabilities by 36.5 per cent.
Total external assets expanded by 5.7 per cent to RM901.2 billion from RM852.4 billion in 2009. Such an increase was mainly attributable to direct investment abroad (DIA), portfolio investment and other investment. In the mean time, reserve assets continued to remain as the largest component of total external assets of 36.5 per cent, followed by DIA of 33.1 per cent, other investment of 17.5 per cent, portfolio investment of 12.3 per cent and financial derivatives of 0.6 per cent. For the period of 2001 to 2010, the total external assets widened almost four fold from RM226.6 billion recorded nine years ago.
Meanwhile, total external liabilities rose by 18.9 per cent accumulated to RM887.9 billion against RM746.6 billion a year ago. In terms of contribution, portfolio investment was the largest component of 44.6 per cent, followed by foreign direct investment (FDI) of 35.2 per cent, other investment of 19.7 per cent and financial derivatives of 0.5 per cent. For the period of 2001 to 2010, the total external liabilities broadened by 143.8 per cent from RM364.2 billion in 2001.
Direct Investment
DIA stock rose by RM25.8 billion to stand at RM298.4 billion in 2010 from RM272.5 billion attained a year ago. Such an increase was mainly attributed to equity capital & reinvested earnings of 65.4 per cent. In terms of proportion, equity capital & reinvested earnings represented 67.7 per cent while other capital constituted the remaining. The bulk of this investment was generated mainly by Malaysia companies in oil & gas sector of 27.6 per cent followed by financial & insurance sector of 24.6 per cent and information & communication sector of 12.3 per cent. The top three destinations of DIA were Singapore, Indonesia and Mauritius.
FDI stock in Malaysia rose from RM129.1 billion in 2001 to RM312.5 billion in 2010, a substantial growth of 142.1 per cent. While year-on-year, FDI stock increased by RM42.3 billion or 15.7 per cent. Equity capital & reinvested earnings component formed the largest portion amounted to RM293.7 billion or 94.0 per cent. The manufacturing sector maintained its position as leading FDI stock recipient of 46.8 per cent, followed by financial & insurance sector of 23.1 per cent and wholesale & retail trade sector of 8.2 per cent. The top three sources of FDI were from Singapore, Japan and USA.
Portfolio Investment
Between 2001 and 2010, Malaysia’s stock of portfolio investment assets grew from RM6.2 billion to RM110.7 billion. In the short term, the portfolio position increased by RM15.5 billion or 16.3 per cent against a year ago. From the total, equity securities held by residents consisted RM77.2 billion or 69.8 per cent share while debt securities were RM33.4 billion or 30.2 per cent share.
In 2010, total stock value of portfolio investment liabilities surged to RM396.3 billion (2009: RM290.3 billion) due to foreign acquisitions of both local equity and debt securities. This was partly portrayed by the upward trend of local shares composite index throughout the year. Both equity and debt securities increased by 42.2 per cent to RM203.2 billion and 31.0 per cent to RM193.1 billion, respectively.
Other Investment
The position of other investment assets as at December 2010 rose to RM158.3 billion, a positive growth of RM12.7 billion or 8.7 per cent from the preceding year. The bulk of accumulated investment was attributed by currency and deposits abroad in the banking sector as well as loans.
The position of other investment liabilities showed downward trend to RM174.5 billion (2009: RM177.4 billion), a decrease of RM2.9 billion or 1.6 per cent. Deposits from abroad placed in domestic banks constituted the largest item in other investment.
Reserve Assets
Reserve assets position remained strong, despite a decrease of RM2.6 billion or 0.8 per cent to attain RM328.6 billion (2009: RM331.3 billion).
Net Position
As at year-end 2010, Malaysia’s net assets position of RM13.3 billion was derived from:
- net liabilities position of direct investment of -RM14.1 billion (2009: +RM2.3 billion);
- net liabilities position of portfolio investment of -RM285.6 billion (2009: -RM195.2 billion);
- net assets position of financial derivatives of RM0.6 billion (2009: -RM0.9 billion);
- net liabilities position of other investment of -RM16.2 billion (2009: -RM31.7 billion); and
- reserve assets of RM328.6 billion (2009: RM331.3 billion).
| Download: | Table: Malaysia - International Investment Position, 2001 - 2010 |
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| Technical Notes |
