KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) ranks second in the top 25 non-financial transnational corporations (TNCs) in terms of foreign assets, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2006.
United Nations resident coordinator Dr Richard Leete said in 2004, there were five companies from developing economies in the list of top 100 TNCs.
“The higher flow of outward FDI (foreign direct investment) from TNCs in developing countries is accompanied by a significant increase in developing country firms in the universe of TNCs,” Leete said.
He said this at the launch of the UNCTAD report entitled FDI from Developing and Transition Economies: Implications for Development yesterday.
In all developing regions and in the Russian Federation, major TNCs have emerged in the primary sector (oil, gas and mining) and resource-based manufacturing (metals and steel).
Leete said the new links that TNCs were forging with the rest of the world would have far-reaching repercussions in shaping the global economic landscape of the coming decades.
“There were significant increases in outward investments by developing economies led by Hong Kong with US$33bil.
“Outflows from these economies corresponded to 17% of the world total. Malaysia is ranked number eight in the list of developing economies in terms of stock of outward FDI,” he added. – Bernama
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