Malaysia

September 2005 | Risk Summary

The Malaysian government has reversed a key tenet of former premier Mahathir Mohamed, by soliciting external advice on development policy. Prime Minister Abdullah Ahmad Badawi has tasked a panel of business and development experts with helping Malaysia respond to the economic challenge posed by China and India. Under Mahathir, Malaysia largely ignored outside advice, but now Abdullah is keen to hear suggestions relating to geopolitical and economic developments, focusing on the emerging Asian giants. Of immediate concern to Abdullah is a 16% decline in foreign direct investment in 2004, largely a consequence of China's economic boom.

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