The Impacts of Foreign Direct Investment in Construction Sector and Contractors Perception towards Foreign Direct Investment

Fong, Wai Cheng (2021) The Impacts of Foreign Direct Investment in Construction Sector and Contractors Perception towards Foreign Direct Investment. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

In recent year, Malaysia has been an attractive destination for foreign investor to invest into our country. Foreign direct investment which can be known as a form of equity and investment fund share will influences and boost up economic growth of the country through the transfer of new technologies and knowledges, increase of competition and employment rate in the country, and so forth. However, the participation of these foreign contractors have bring some impact to local construction industry. Therefore, this paper highlights the investigation on the impact of foreign direct investment to the local contractor in the Malaysia and the perspective of local contractor toward the foreign direct investment. The three main question for the research are the factor that attract foreign contractor to invest in Malaysia, the impact of the participation of foreign construction player to local construction industry and the challenges face by local contractor to compete with foreign construction company. The research approach was carried out based on quantitative and qualitative method. There are total 44 feedbacks of questionnaires have been collected from respondents within Klang Valley and 4 respondents have agreed to conduct the phone call interview voluntarily. The data collected was analysed by using Microsoft Excel and presented it as qualitative analysis and descriptive analysis. In conclusion, the findings successfully achieved through the result of questionnaires and phone call interview. The most critical factor that attract the foreign investor and the impact of foreign direct investment to local construction industry has been identified.