China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
Since its initiation, Malaysia has engaged in many BRI-related infrastructure and connectivity projects. These projects, which are mainly Foreign Direct Investments (FDI) from China, have mixed impacts on the three key dimensions enshrined in the UN Sustainable Development Goals (SDGs) - econo...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2023
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| Online Access: | http://journalarticle.ukm.my/25597/ http://journalarticle.ukm.my/25597/1/Sinergi_3_2_4.pdf |
| Summary: | Since its initiation, Malaysia has engaged in many BRI-related infrastructure and
connectivity projects. These projects, which are mainly Foreign Direct
Investments (FDI) from China, have mixed impacts on the three key dimensions
enshrined in the UN Sustainable Development Goals (SDGs) - economy, society,
and the environment. As FDI from China continues to be an important source of
Malaysian economic growth, its contribution to the country’s SDG goals
warrants further attention. The study examines China’s FDI impact on
Malaysia’s SDG performance and finds that its presence positively influences
index scores and global ranking performance. The impact on human capital is
encouraging as moderate knowledge transfers and competition enhance workers’
skills. As for the environment, the impact is both positive and negative - gains
from China’s investment in green technology but losses in environmental
degradation. While the effect on political security and national security is
generally positive, the social impact of China’s FDI cannot be determined due to
data limitations. The study concludes that Malaysia should continue to engage
with China to harness its positive impact toward achieving its SDGs. |
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