Evaluating the Effects of Chinese Outward FDI in Malaysia

Through case studies of Chinese investment in the Digital Free Trade Zone (DFTZ) and Forest City, chapter 6 unpacks the effects of Chinese investment in Malaysia and their drivers.  In terms of effects, this chapter offers three observations.  Firstly, doubts remain over the quantity and quality of technology transfer.  Secondly, the DFTZ and Forest City are not delivering impressive job effects and indeed the former may entail negative ones.  Thirdly, these projects’ realization depends on partnerships between technology- and knowledge-intensive Chinese business groups and Malaysian state-owned enterprises.  These partnerships entrench the status quo.  This chapter does not find that Malaysia’s regime type or diplomatic relationship with China play a notable role in shaping the aforementioned effects.  Instead, Malaysia’s modest ability in absorbing know-how results from its development model that neglects the local private sector as well as related microeconomic factors.  More information about the book can be found at https://www.routledge.com/The-Effects-of-Chinese-FDI-in-Southeast-Asia-Cheer-Commonsense-and-Clarification-Along-the-Belt-and-Road/Blanchard/p/book/9781041066002.