Although the transaction was concluded at RM703.44 per sq ft (psf), a source said the special-purpose vehicle (SPV) created by the MoF to undertake the transaction had initially wanted
KUALA LUMPUR: Malaysia's foreign direct investment (FDI) improved in the fourth quarter (Q4) of 2018, registering a larger net inflow of RM12.9 billion from RM4.3 billion in the third quarter (Q3) of 2018.
According to Bank Negara Malaysia's (BNM) Quarterly Bulletin for the Fourth Quarter 2018, FDI inflow was channelled mainly into the manufacturing and non-financial services sectors.
It said the direct investment account registered a higher net inflow of RM2.1 billion compared with a net inflow of RM0.5 billion in Q3 2018.
However, BNM said the financial account recorded a net outflow of RM6.1 billion from a net inflow of RM2.3 billion in Q3 2018.
“This was due to higher net outflows in the portfolio and other investment accounts, which more than offset the net inflows of direct investment during the quarter,” it said.
Meanwhile, direct investments abroad (DIA) by Malaysian companies recorded a higher net outflow of RM10.8 billion in Q4 2018 against a net outflow of RM3.8 billion in the previous quarter.
DIA outflows were channelled primarily into the mining and non-financial services sectors. The portfolio investment account registered a net outflow of RM5.8 billion from a marginal net inflow of RM1.0 billion in Q3 2018.
“This reflected a turnaround in residents' portfolio asset transactions, following higher purchases of equity securities abroad,” said BNM. Non-residents recorded a smaller outflow of portfolio investments, amounting to RM2.5 billion compared with a net outflow of RM3.6 billion in Q3 2018.
BNM said this was due to a net liquidation of equity securities, amid heightened global financial market volatility.
The other investment account recorded a net outflow of RM1.8 billion from a net inflow of RM1.0 billion in Q3 2018.
“This was attributable to outflows following the maturity of interbank deposits within the domestic banking sector and trade credits, which were partly offset by the inflows from the maturity of currency and deposits and the repayment of trade credits to the private sector,” it said.
Net errors and omissions amounted to -RM10.8 billion, or -2.2 per cent of total trade.
The international reserves of BNM amounted to US$101.4 billion as at end-December 2018, compared with US$103.0 billion as at end-September 2018. - Bernama
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