In 2007 inward FDI flows to Malaysia were around US $ 8,043 millions , and it was
2.62% of total inward FDI inflow to Asia and Oceania and at that time share of china was
26.05%.(World investment report, 2008).
However, there has been a persistent decline in the ratio of FDI inflows to GDP since the
early 1990s (figure2&3). While this disappointing pattern of development has become a
major concern of researchers and policy makers. The Malaysian –American Electronics
Industry(MAEI) argue that the fall in the flow of FDI into Malaysia is because her
incentives are not competitive.