Exchange rate, foreign direct investment, inflation and export performance in Malaysia

Abstract

USA and China are the top two economy powers. Trade is one of the platform of geopolitical dispute platform. A study was conducted to estimate the impact of the USA and China investments to Malaysia. Data were collected from sources including DOSM and MIDA. The study was conducted from 2008 till 2018. The data was analysed using statistical software SPSS 16.0 version. Analysis showed significant results from PR China FDI inflow and US exchange rate found to be significant, while it is not significant for US FDI inflow and Inflation rate. FDI has an important role in increasing Malaysia electronic and electrical export. Domestics product produced were cheaper as comparison to the same product producing by other country due to the low currency exchange. The data covered in this study is from 2008 to 2018 to run this model; longer data years is recommended in the future research.