What's driving private investment in Malaysia?
Subtitle: aggregate trends and firm-level evidence
By: prepared by Roberto Guimaraes and Olaf Unteroberdoerster.
Contributors: Unteroberdoerster, Olaf.; International Monetary Fund. Asia and Pacific Dept.
Series: IMF working paper -- WP/06/190
Publisher: International Monetary Fund, Asia and Pacific Dept.
Published: 2006
Place of publication: [Washington, D.C.]
Language: eng
Number of pages: 26
Subjects: Investments -- Malaysia -- Econometric models.; Business enterprises -- Malaysia -- Econometric models.; Financial crises -- Asia -- Econometric models.
Description: Private sector investment has been a key source of growth in Malaysia over the last three decades, but after an unprecedented decline in the wake of the Asian crisis it has remained sluggish in recent years. Using aggregate and firm-level data, this paper aims to explain these trends and their implications for Malaysia's investment and growth outlook. Aggregate data point to sustained overinvestment in the years prior to the Asian crisis and the role of shifts in investor perceptions as important determinants of the recent decline in private investment. Meanwhile, firm-level data suggest that low profitability, along with financing constraints affecting smaller firms and those in the services sector, has also been important.
Notes: Caption title.

"August 2006."

Includes bibliographical references (p. 25-26).

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