The role of foreign direct investment in Kedah Darul Aman

• Main Authors: Abdul Karim, Noor Al-Huda, Hassan, Sallahuddin, Othman, Zalilia, Ahmad Samidi, Munzarina
• Format: Monograph
• Language: English
• Published: Universiti Utara Malaysia 1999
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/4286/1/Noo.pdf; http://repo.uum.edu.my/4286/; http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000173679

Kedah state's pattern of economy has changed from its old traditions of agriculture and commerce to a modern industrialization with broadly diversified activities.With regards to foreign direct investment, the state has a good record of which a total proposed capital investment in approved projects was over RM16.2 billion for the period 1990-April 1998.Their investment activities are particularly evident in the manufacturing sector, which is the most dynamic sector of Kedah's economy.For the purpose of this study, 53 foreign companies under the administration of KSDC were curefully selected as respondents.They are located in Kulim Industrial Estate, Kulim Hi-Tech Industrial Park, Bakar Arang Industrial Estate in Sungai Petuni, Sungai Petani Industrial Estate, Tikam Batu Industrial Estate, and Darulaman Industrial Park, However, only 27 companies responded (50.9 per cen!) out of the total population. The major finding of this study is that foreign direct investment (FDI) has acttlally made a positive contribution to the economic development of the state. Specrj7cally, the contribution is reflected in the characteristics crnd the eflects of FDI in the state. The characteristics include reasons of FDI, size of investment, type of activity, equity and control, marketing, management and profitability; while the effects of FDI include employment, technical expertise, training, linkages and transfer of technology.Nevertheless, further efforts from the state government with the cooperation of all the foreign companies themselves are still needed to increase and improve the role of FDI in the manufacturing sector.