Malaysia Summary Of The International Investment Position 2009
Overall
Net international investment position of Malaysia was RM120.1 billion, up RM5.8 billion or 5.1 per cent on 31 December 2009 compared a year ago. The increase was driven by larger expansion of external assets by RM101.4 billion compared to external liabilities by RM95.6 billion.
Total external assets broadened to RM860.7 billion from that of RM759.3 billion in 2008. Such an increase was mainly attributable to direct investment abroad (DIA) and portfolio investment. Reserve assets continued to remain as the largest component of total external assets of 38.5 per cent, followed by DIA (32.0 per cent), other investment (17.5 per cent), portfolio investment (11.1 per cent) and financial derivatives (0.9 per cent).
Meanwhile, total external liabilities stood at RM740.6 billion (2008: RM645.0 billion), mainly due to an increase in stock position of portfolio investment. In terms of contribution, portfolio investment was the largest component of 39.2 per cent, followed by foreign direct investment (FDI) of 36.4 per cent, other investment (23.2 per cent) and financial derivatives (1.2 per cent).
Direct investment
As of end 2009, direct investment recorded a net assets position, whereby DIA exceeded FDI by RM5.7 billion. DIA grew almost nine fold to stand at RM275.6 billion in 2009 from RM31.7 billion attained eight years ago. Meanwhile, within a year, the level of DIA was higher by 17.7 per cent or RM41.5 billion from RM234.1 billion in 2008. The proportion of DIA in the form of equity capital & reinvested earnings remained fairly constant (range between 55.0 to 68.0 per cent) throughout 2001 to 2009. At the end of year under review, equity capital & reinvested earnings represented 67.3 per cent while other capital constituted the remaining.
FDI in Malaysia rose steadily from RM129.1 billion in 2001 to RM270.0 billion in 2009, a growth of 109.1 per cent. While year-on-year, FDI increased by RM16.2 billion or 6.4 per cent. FDI experience similar circumstances as DIA whereby equity capital & reinvested earnings component formed the largest portion amounted to RM250.8 billion.
Portfolio Investment
Between 2001 and 2009, Malaysia portfolio investment assets grew from RM6.2 billion to RM95.2 billion. In the short term, the investment position increased by RM39.0 billion or 69.5 per cent against a year ago. From the total of portfolio investment, equity securities held by Malaysian consisted RM69.0 billion (2008: RM40.1 billion) while debt securities were RM26.2 billion (2008: RM16.0 billion).
Total value of portfolio investment liabilities increased in 2009 to RM290.4 billion, due to foreign acquisitions of both equity and debt securities. The current year saw the performance of domestic equity securities market had recovered from large liquidation during 2008. This led to an increase of 48.9 per cent in holding of that instrument by foreigners at RM142.9 billion. Over the past three years gradual increment was noted in debt securities position to reach at RM147.5 billion at the end 2009.
Other Investment
The position of other investment assets as at December 2009 mount to RM150.8 billion, an increase of RM7.0 billion or 4.9 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 trade credits and loans.
The level of other investment liabilities showed upward trend to RM171.6 billion (2008: RM160.9 billion), an increase of RM10.7 billion or 6.6 per cent. Deposits from abroad held in domestic banks constituted the largest item in the investment.
Reserve Assets
As at December 2009, reserve assets stood at RM331.3 billion (2008: RM317.4 billion). This reserve position was adequate to finance 9.7 months of retained imports.
External Net Position
As of end 2009, the net assets of international investment position was reflected by:
- direct investment : net assets position of RM5.7 billion (2008: -RM19.7 billion);
- portfolio investment : net liabilities position of RM195.2 billion (2008: -RM166.8 billion); and
- other investment : net liabilities position of RM20.7 billion (2008: -RM17.1 billion).
| Download | : International Investment Position Table - Malaysia, 2009 |
| : Technical Notes |
