Malaysia Summary Of The International Investment Position 2012 (Updated: 21/08/2013)

Introduction

The implementation of Balance of Payments and International Investment Position Manual Sixth Edition (BPM6) is adopted in IIP 2012 compilation, in accordance with the publication of BOP statistics first quarter 2013. Previously the compilations were based on Balance of Payments Manual Fifth Edition (BPM5). The back series data from 2001 are also published based on BPM6.

Current adoption of BPM6 involves synchronisation of classification in financial assets and liabilities with the SNA 2008. The classification, netting and ordering in the IIP are consistent with the structure of financial account and primary income account in BOP statistics. The presentation on direct investment is according to gross assets and liabilities basis. To facilitate the users, direct investment data on directional basis (as per BPM5) are also presented in the publication.

Overall International Investment Position

As at end of 2012, the total assets expanded by 7.7 per cent to RM1.2 trillion from RM1.1 trillion in 2011. This was mainly due to the increase in position of direct investment by 7.0 per cent, portfolio investment 21.3 per cent and other investment 14.0 per cent. Reserve assets remained as the largest share of total assets which contributed 34.9 per cent, followed by direct investment 34.7 per cent, other investment 16.9 per cent, portfolio investment 12.6 per cent and financial derivatives 0.9 per cent.

In the meantime, total liabilities broadened by 12.7 per cent accumulated to RM1.2 trillion against RM1.1 trillion a year ago. In terms of type of investment, portfolio investment and direct investment rose by 22.3 per cent and 8.8 per cent, respectively. This increase managed to offset the decrease in other investment by 1.5 per cent. From the total, portfolio investment accounted the largest share of 44.6 per cent, followed by direct investment 37.3 per cent, other investment 17.2 per cent and financial derivatives 0.9 per cent.

As of December 2012, the level of Malaysia's net international investment position reverted to net debtor position. The value of Malaysia's liabilities exceeded assets abroad by RM14.7 billion against +RM36.6 billion as at end of 2011.

Direct Investment

Direct investment is presented on the following basis:

i. Assets and liabilities basis

Direct investment assets stock grew by RM27.8 billion to stand at RM425.2 billion in 2012 from RM397.4 billion attained a year ago. This increase was mainly attributed to debt instruments by RM17.0 billion. In terms of proportion, equity and investment fund shares accounted 55.5 per cent while debt instruments constituted the remaining. The bulk of this investment was generated mainly by Malaysian companies in financial & insurance sector of 27.8 per cent, followed by oil & gas sector 24.3 per cent, and manufacturing sector 13.2 per cent. The top three destinations were Singapore, Indonesia and Australia.

The level of direct investment liabilities expanded to RM461.9 billion in 2012 from RM424.7 billion in 2011, an increase of RM37.2 billion or 8.8 per cent. Equity and investment fund shares component formed the largest portion amounted to RM382.4 billion or 82.8 per cent. The manufacturing sector remained as the leading direct investment recipient of 48.3 per cent, followed by financial & insurance sector of 20.1 per cent and wholesale & retail trade sector of 9.2 per cent. The top three sources of direct investment were from Singapore, Japan and USA.

On net basis, direct investment liabilities showed a higher position as compared to assets to record a net direct investment position of -RM36.7 billion (2011: -RM27.4 billion). Equity and investment fund shares recorded a net position of -RM146.5 billion (2011: -RM117.5 billion). In contrast, debt instruments showed a positive net position of RM109.8 billion from RM90.1 billion in 2011.

ii. Directional basis

DIA stock rose by RM30.0 billion to stand at RM368.2 billion in 2012 from RM338.2 billion attained a year ago. Equity capital and reinvested earnings amounted to RM235.9 billion and other capital RM132.3 billion.

The level of FDI in Malaysia rose to RM404.9 billion in 2012 from RM365.6 billion in 2011, an increase of RM39.4 billion or 10.8 per cent. Equity capital and reinvested earnings amounted to RM382.4 billion and other capital RM22.5 billion.

Portfolio Investment

The year 2012 saw portfolio investment assets accumulated to RM154.7 billion (2011: RM127.6 billion), increased by RM27.1 billion or 21.3 per cent. Both equity and investment fund shares and debt securities held by residents contributed RM100.1 billion (64.7 per cent share) and RM54.6 billion (35.3 per cent share), respectively.

The total stock value of portfolio investment liabilities widened to RM552.3 billion (2011: RM451.8 billion) due to foreign acquisitions for both equity and investment fund shares and debt securities issued by residents. Both instruments increased by RM36.4 billion to RM247.9 billion and RM64.1 billion to RM304.4 billion, respectively. From the total portfolio investment liabilities, equity and investment fund shares formed 44.9 per cent share while debt securities 55.1 per cent share.

On net basis, portfolio investment showed a net liability position of RM397.6 billion (2011: -RM324.2 billion), of which net liability equity and investment fund shares were RM147.7 billion (2011: -RM127.3 billion) and net liability debt securities were RM249.9 billion (2011: -RM197.0 billion).

Other Investment

The position of other investment assets as at end December 2012 stood at RM206.2 billion, a positive growth of RM25.3 billion or 14.0 per cent from the preceding year. The bulk of accumulated investment was attributed by currency & deposits as well as loans.

At the end of the current year, other investment liabilities valued at RM213.4 billion (2011: RM216.5 billion), decreased by RM3.1 billion or 1.5 per cent reflected by a decline in currency & deposits, other account payable and trade credit & advances.

On net basis, other investment continued to record a net liability position of RM7.2 billion from RM35.6 billion in 2011.

Reserve Assets

Reserve assets position increased by RM3.9 billion to stand at RM427.2 billion (2011: RM423.3 billion).

Download :	Table : Malaysia - International Investment Position, 2001-2012
	Technical Notes