-
Essay / The Effect of Malaysia's Political Situation on Foreign Investment
The political situation of a country plays an important role in how it is perceived by other countries, especially considering that the country is still a developing country which depends a lot on investments and good relations with other countries. A large amount of funds are required to carry out several development projects, and to obtain these funds, the country usually has to outsource money from other sources, including primary foreign investors. As such, the current political state of a certain country is important to external parties because it constitutes a representation of the current stability of that country. Therefore, a country should aim at all costs to stabilize its political situation in order to maintain a good repertoire with other nations. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayOver the years, Malaysia's political situation has fluctuated. Before exploring the current state of the political climate, it is worth briefly reviewing what has happened in the past. After Malaysia's independence on August 31, 1957, it was poised to become one of the major countries in Southeast Asia, as it has many valuable natural resources (e.g. tin, copper). palm oil, etc.) which are not intrinsically present in the country. most other countries, hence the need for countries to import these materials for their own country. Furthermore, with its strong trade relations with partner countries, Malaysia was making steady progress towards industrialization, especially under the fourth Prime Minister; Tun Dr. Mahatir with contributions such as the announcement of the 'Proton' national car project as well as a vision for Malaysia which was aptly dubbed 'Wawasan 2020'. Malaysia looked promising and seemed on track to achieve the goals set by the “Bapa Pemodenan Malaysia”. In 2009, a government investment company, "1MDB" (1Malaysia Development Berhad) was established under Najib, the 6th Prime Minister of Malaysia who headed its advisory board and directly involved the company as a whole. His intentions were to attract foreign direct investors and subsequently establish Kuala Lumpur as a global financial hub, with the motto “Forging Partnerships, Advancing Growth”. This was a wise move by former Prime Minister Najib Razak, as transforming Kuala Lumpur into a financial center was a stepping stone to further consolidate Malaysia and become a powerful country. Kuala Lumpur, being the capital of Malaysia, was a strategic position to form the financial center. Apart from the existing revenue generated by tourism, this also means that the creation of financial institutions has a greater chance of increasing the country's overall tax revenue. Furthermore, land prices around the financial center area would increase significantly as the demand for housing near the capital would also increase due to the arrival of new workers and workers. However, the only question that could be raised on this would be whether the benefits of transforming Kuala Lumpur into a financial hub outweigh the costs for low-wage citizens, as the city's overall standard of living would only continue to rise. increase. The question remains relevant because making a city the preferred location for commercial transactions means that it will also become a capitalist gold mine since businesses, whether local or foreign,..