Chinese Investments in Malaysia: Synthesising the Evidence Ten Years into the Belt and Road Initiative (BRI)

Abstract

The launch of the BRI in 2013 raised the interests of Chinese investors in Malaysia. However, views of the BRI in Malaysia are often based on a few mega projects, which are financed by federal loans. This leads to a misleading view that Chinese investments are motivated by geoeconomic interests alone rather than commercial interests. This study synthesises the existing evidence on Chinese investments in Malaysia, ten years into the BRI, using an antecedent, decision and outcome (ADO) framework. It seeks to shed light on the nature, drivers and motivations as well as some of the outcomes of these investments. It is found that Chinese investments in Malaysia are diverse in terms of sectoral coverage, drivers and entry modes while the long-term impact on technology transfer remains unclear. The focus on geoeconomic considerations has led to a general neglect in research on examining the impact of these investments on Malaysia’s economy.