China’s Foreign Direct Investment (FDI) in Malaysia: Impact on Malaysia’s Sustainable Development Goals (SDGs)
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Abstract: Since its initiation, Malaysia has engaged in many BRI-related infrastructure and connectivity projects. These projects, which are mainly Foreign Direct Investments (FDI) from China, have mixed impacts on the three key dimensions enshrined in the UN Sustainable Development Goals (SDGs) - economy, society, and the environment. As FDI from China continues to be an important source of Malaysian economic growth, its contribution to the country’s SDG goals warrants further attention. The study examines China’s FDI impact on Malaysia’s SDG performance and finds that its presence positively influences index scores and global ranking performance. The impact on human capital is encouraging as moderate knowledge transfers and competition enhance workers’ skills. As for the environment, the impact is both positive and negative - gains from China’s investment in green technology but losses in environmental degradation. While the effect on political security and national security is generally positive, the social impact of China’s FDI cannot be determined due to data limitations. The study concludes that Malaysia should continue to engage with China to harness its positive impact toward achieving its SDGs.
Keywords: Foreign direct investment (FDI), sustainable development goals (SDGs), Malaysia, China.
DOI: 10.17576/sinergi.0302.2023.04
Article information:Submission date: 7 May 2023; Acceptance date: 9 June 2023; Publication Date: 31 December 2023.
Declaration and acknowledgement: The Authors would like to show their gratitude to SINERGI’s anonymous reviewers and their constructive feedback in improving the quality of the manuscript. Authors are also immensely grateful for their comments on earlier versions of the draft. No potential conflict of interest was reported.
Abstrak: Malaysia telah terlibat dalam pelbagai projek pembangunan infrastruktur dan projek ketersambungan di bawah Inisiatif Jalur dan Laluan (BRI). Projek-projek mega ini, yang kebanyakannya melibatkan Pelaburan Langsung Asing (FDI) dari China, mempunyai kesan-kesan yang berbeza ke atas pembangunan mampan ekonomi, masyarakat dan alam sekitar negara - tiga dimensi utama yang dimaktub dalam Matlamat Pembangunan Mampan (SDGs) Perubuhan Bangsa-bangsa Bersatu (PBB). Memandangkan FDI dari China terus menjadi sumber penting dalam pertumbuhan ekonomi Malaysia, sumbangannya kepada pencapaian SDG negara memerlukan perhatian lanjut. Kajian itu meneliti kesan FDI China terhadap prestasi SDG Malaysia dan mendapati kehadiran FDI China mempengaruhi prestasi SDG secara positif dari segi skor indeks dan kedudukan global. Kesan kepada modal insan adalah positif kerana pemindahan pengetahuan dan persaingan yang sederhana dalam usaha meningkatkan kemahiran pekerja. Dalam aspek alam sekitar, terdapat kelebihan dalam pembangunan infrastruktur melalui pelaburan China dalam teknologi hijau, manakala terdapat juga kekurangan kerana kesannya kepada kemerosotan kualiti alam sekitar. Walau pun kesan ke atas keselamatan politik dan keselamatan negara secara amnya positif, kesan sosial daripada FDI China tidak dapat ditentukan kerana keterbatasan data. Kajian merumuskan bahawa Malaysia harus terus terlibat dengan FDI China untuk memanfaatkan impak positif ke arah mencapai objektif SDGnya.
Kata kunci: Pelaburan langsung asing (FDI), matlamat pembangunan mampan (SDG), Malaysia, China.
DOI: 10.17576/sinergi.0302.2023.04
Maklumat artikel: Submission date: 7 Mei 2023; Acceptance date: 9 Jun 2023; Publication Date: 31 December 2023.
Penghargaan dan pengisytiharan: Para penulis ingin merakamnkan rasa terima kasih mereka kepada pengulas tanpa nama SINERGI dan maklum balas membina mereka dalam meningkatkan kualiti manuskrip. Pengarang juga amat berterima kasih atas komen mereka pada versi awal draf. Tiada potensi konflik kepentingan dilaporkan.
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