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...

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Main Authors: Norhidayat Zainal, Andrew Kam Jia Yi
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2023
Online Access:http://journalarticle.ukm.my/25597/
http://journalarticle.ukm.my/25597/1/Sinergi_3_2_4.pdf
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author Norhidayat Zainal,
Andrew Kam Jia Yi,
author_facet Norhidayat Zainal,
Andrew Kam Jia Yi,
author_sort Norhidayat Zainal,
building UKM Institutional Repository
collection Online Access
description 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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spelling oai:generic.eprints.org:255972025-07-15T01:05:04Z http://journalarticle.ukm.my/25597/ China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs) Norhidayat Zainal, Andrew Kam Jia Yi, 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. Penerbit Universiti Kebangsaan Malaysia 2023 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/25597/1/Sinergi_3_2_4.pdf Norhidayat Zainal, and Andrew Kam Jia Yi, (2023) China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs). SINERGI: Journal of Strategic Studies & International Affairs, 3 (2). pp. 46-66. ISSN 2805-4520 https://spaj.ukm.my/sinergi/index.php/sei/issue/view/6
spellingShingle Norhidayat Zainal,
Andrew Kam Jia Yi,
China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title_full China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title_fullStr China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title_full_unstemmed China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title_short China’s Foreign Direct Investment (FDI) in Malaysia: impact on Malaysia’s Sustainable Development Goals (SDGs)
title_sort china’s foreign direct investment (fdi) in malaysia: impact on malaysia’s sustainable development goals (sdgs)
url http://journalarticle.ukm.my/25597/
http://journalarticle.ukm.my/25597/
http://journalarticle.ukm.my/25597/1/Sinergi_3_2_4.pdf