Factors Influencing Foreign Direct Investment (Fdi) Inflows from West Asia/Middle East to Malaysia Between 2018 And 2023: A Qualitative Analysis from a Political Economic Perspective

Abstract

This study examines the factors influencing Foreign Direct Investment (FDI) inflows from West Asia/Middle East to Malaysia between 2018 and 2023. Using a qualitative approach based on political economy analysis, the research employs semi-structured interviews, document analysis, and case studies to investigate economic, political, institutional, and socio-cultural determinants of FDI. The study aims to address a gap in South-South economic cooperation literature and provide insights for policymakers. Findings reveal that while economic factors such as market potential and strategic location are primary drivers, socio-cultural factors, particularly cultural and religious affinities, play a significant role in facilitating investment. Political and institutional stability, despite transitions, emerged as important considerations. Global events, including the COVID-19 pandemic, and regional integration also influenced FDI patterns. The research contributes to FDI theory in emerging economies and offers practical implications for enhancing Malaysia's attractiveness to West Asian and Middle Eastern investors.