U.S DEPARTMENT of STATE study group used to produce annual investment climate report of all countries around the world to provide their investors with indept information of business environment of respective countries. The following is the summary of the report "2007 Investment Climate Statement - Malaysia". You can view the full report here.
1) The UN Conference on Trade and Development (UNCTAD) reported that in 2005 global FDI increased by 29% and FDI to Southeast Asia increased by 45%. However, FDI to Malaysia decreased by 14% during the same period. A longer term outlook shows a similar trend. Total FDI inward stock for Southeast Asia increased by 42.4% from 2000 to 2005, while total FDI inward stock for Malaysia decreased by 9% over the same time period. UNCTAD ranked Malaysia as the sixth largest destination for FDI in 1995; based on final 2005 figures, Malaysia now ranks 62nd.
2) An in-depth study of the investment climate, conducted by the GOM in collaboration with the World Bank and published in 2005,[3] identified Malaysia’s top two economic constraints as 1) its regulatory burden, especially for services, and 2) its shortage of skilled labor. Two similar studies, one conducted by UBS and the other by the Institute of International Finance, reached similar conclusions.
3) One of the government’s racial preference policies is a requirement that foreign and domestic non-manufacturing firms take on bumiputera partners (with a minimum of 30% of share capital). If a company seeks public listing on the Bursa Malaysia (formerly Kuala Lumpur Stock Exchange), it is required to reserve at least 30% of its initial public offering (IPO) for purchase by bumiputera. In 2003 the GOM ended a formal requirement that corporations issue additional stock to bring bumiputera equity back up to 30% if those shareholders had sold their stock. However, bumiputera equity remains a consideration when companies apply for an array of required permits and licenses -- many of which must be renewed either annually or biennially.
4) Malaysia’s requirements for the licensing and operation of direct selling companies include a provision that a locally incorporated direct selling company must allow for 30 percent bumiputera equity. The Ministry also “recommends” local content targets. Local companies that seek multi-level direct selling licenses require paid-in capital of RM 1.5 million ($423,700), while companies with foreign shareholders must have paid-in capital of RM 5 million ($1.4 million).
5) The Malaysian government also included local content requirements in "Guidelines on Foreign Participation in the Distributive Trade Services" that came into effect in December 2004. Among other provisions, department stores, supermarkets and hypermarkets are required to reserve at least 30 percent of shelf space in their premises for goods and products manufactured by bumiputera-owned small and medium sized industries. The guidelines also require that at least 30 percent of a store’s sales consist of bumiputera products, a rule that does not take into account discretionary behavior on the part of consumers.
6) The Ministry of Energy, Water, and Communications enforces broadcast content quotas on both radio and television programming. 80% of television programming must originate from local companies owned by bumiputera. However, in practice, local stations have been granted substantial latitude in programming because of a lack of suitable local programming. Radio programming also must consist of 60% locally originated content. Foreign ownership of radio and television stations is not permitted. Foreign investment in terrestrial broadcast networks is prohibited. As a condition for obtaining a license to operate, video rental establishments are required to have 30 percent local content in their inventories. Malaysia regularly censors movies and television shows deemed offensive on religious or sexual grounds.
7) The government owns approximately 36% of the value of firms listed on the Bursa Malaysia through its seven Government-Linked Investment Corporations (GLICs), including a majority stake in a number of companies. Only a minority portion of stock is available for trading for some of the largest publicly listed local companies. After the economic crisis of the late 1990s, the government began to re-acquire a number of entities it had privatized earlier, including the national air carrier, MAS, and Kuala Lumpur's light rail transit system. The government has given no indication of interest in restarting its privatization efforts. Khazanah, the government’s largest GLIC, handles many of the country’s major infrastructure projects, typically through companies in which it owns a majority stake. The Prime Minister and the Central Bank Governor sit on Khazanah’s Board of Directors.
And many many more...full report.I tried to search for the 2008 report but it's seems that Malaysia is missing out from the 2008 list. You can find the 2007 list here. Can you find Malaysia in 2008 list? I think they are giving up on Malaysia!
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