Malaysia Summary Of The International Investment Position 2011 (Updated: 06/06/2012)

Overall

As at end of 2011, the total external assets expanded by 19.2 per cent to RM1.1 trillion from RM901.6 billion in 2010. This was mainly due to the increase in position of reserve assets by 28.8 per cent, portfolio investment 15.7 per cent, other investment 13.2 per cent, and DIA 12.9 per cent. Reserve assets remained as the largest share of total external assets which contributed 39.4 per cent, followed by DIA 31.4 per cent, other investment 16.7 per cent, portfolio investment 11.9 per cent, and financial derivatives 0.6 per cent. Total external assets widened almost five folds from RM226.6 billion recorded a decade ago.

Meanwhile, total external liabilities rose by 16.7 per cent accumulated to RM1.0 trillion against RM888.4 billion a year ago. In terms of type of investment, other investment rose 23.2 per cent, FDI 16.3 per cent, and portfolio investment 14.0 per cent. From the total, portfolio investment accounted the largest share of 43.6 per cent, followed by FDI 35.1 per cent, other investment 20.7 per cent, and financial derivatives 0.6 per cent. For the period of 2001 to 2011, the total external liabilities expanded by 184.7 per cent from RM364.2 billion in 2001.

Consequently, Malaysia’s IIP 2011 recorded a net assets position of RM37.7 billion (4.3 per cent of GDP at current prices), increased by RM24.6 billion from RM13.1 billion in 2010. This has been the fourth consecutive years since the total external assets exceeded total external liabilities.

Direct Investment

DIA stock rose by RM38.7 billion to stand at RM337.5 billion in 2011 from RM298.8 billion attained a year ago. Such an increase was mainly attributed to equity capital & reinvested earnings of RM23.7 billion (11.7 per cent). In terms of proportion, equity capital & reinvested earnings represented 66.9 per cent while other capital constituted the remaining. The bulk of this investment was generated mainly by Malaysian companies in financial & insurance sector of 28.9 per cent, followed by oil & gas sector 27.3 per cent, and agriculture sector 10.1 per cent. The top three destinations of DIA were Singapore, Indonesia, and Mauritius.

The level of FDI in Malaysia rose to RM363.9 billion in 2011 from RM313.0 billion in 2010, an increase of RM50.9 billion or 16.3 per cent. Equity capital & reinvested earnings components formed the largest portion amounted to RM341.6 billion or 93.9 per cent. The manufacturing sector remained as the leading FDI recipient of 47.5 per cent, followed by financial & insurance sector of 22.4 per cent, and wholesale & retail trade sector of 8.3 per cent. The top three sources of FDI were from Singapore, Japan, and USA.

On net basis, FDI showed a higher position as compared to DIA to record a net direct investment position of -RM26.5 billion (2010: -RM14.2 billion). Equity capital & reinvested earnings recorded a net position of -RM115.7 billion (2010: -RM91.8 billion). In contrast, other capital showed a positive net position of RM89.2 billion from +RM77.5 billion in 2010.

Portfolio Investment

For the period 2001 - 2011, portfolio investment assets position rose from RM6.2 billion to RM128.0 billion. Year-on-year, the position increased by RM17.3 billion or 15.7 per cent from RM110.7 billion. Both equity and debt securities held by residents contributed RM84.4 billion (65.9 per cent share) and RM43.6 billion (34.1 per cent share), respectively.

In 2011, total stock value of portfolio investment liabilities widened to RM451.8 billion (2010: RM396.3 billion) due to foreign acquisitions for both equity and debt securities issued by residents. Both equity and debt securities increased by RM8.3 billion to RM211.5 billion and RM47.2 billion to RM240.3 billion, respectively. From the total portfolio investment liabilities, equity securities formed 46.8 per cent share while debt securities 53.2 per cent share.

On net basis, portfolio investment showed a net liability position of RM323.8 billion (2010: -RM285.6 billion), of which net liability equity securities were RM127.1 billion (2010: -RM126.0 billion) and net liability debt securities were RM196.7 billion (2010: -RM159.7 billion).

Other Investment

The position of other investment assets as at end December 2011 rose to RM179.1 billion, a positive growth of RM20.9 billion or 13.2 per cent from the preceding year. The bulk of accumulated investment was attributed to deposits as well as loans.

At the end of the current year, other investment liabilities position rose to RM214.9 billion (2010: RM174.5 billion), up by RM40.5 billion or 23.2 per cent. Deposits from abroad placed in domestic banks constituted the largest item in this component.

On net basis, other investment continued to record a net liability position of RM35.8 billion from RM16.3 billion in 2010.

Reserve Assets

Reserve assets position increased by RM94.7 billion or 28.8 per cent to stand at RM423.3 billion (2010: RM328.6 billion).

Download :	Table : Malaysia - International Investment Position, 2001-2011
	Technical Notes