Malaysian Reverse Investments: Trends and Strategies

Available data indicate that Malaysian investments abroad (MIA) rose significantly in the 1990s. Singapore, Hong Kong and the U.S. are the major recipients of MIA. In order to understand why Malaysian companies invest abroad, as well as their business strategies, seven companies were interviewed. Finding new markets was cited as the main reason for locating overseas. Unlike most mature multinational corporations from developed countries, most MIA takes the form of standalone affiliates. Moreover, most respondents decentralize their decision making regarding the management of these subsidiaries. While Malaysian companies do plan to expand their overseas investments, they advise new entrants to form strategic alliances with other companies, be cautious, patient, and sensitive to the hosts' cultures in executing their ventures.