Abstract: A competent government and fair rules of governance can facilitate entrepreneurship, encourage investment and sustain business economy. As the government regulations potentially increase equity and efficiency in administrative procedures, the business sector as a whole grows. Similarly, as the government interventions conceivably ensure safety and soundness of the market, the economy as a whole develops. And so why there is a need for an economy like Malaysia to be pursuing to improve regulatory quality and create a competitive business environment were foreign direct investments are attracted? However, most business and other economic regulations are viewed to have been imposing obligations or constraints on business and investment environments as opposed to its intention to provide incentives for mutually beneficial cooperation and opportunities for fairly acceptable competition. As Malaysian Government strike a balance between sustaining a stellar performance of the domestic market while supporting a favorable investment climate given its existing incentive and regulatory regimes, more regulatory reforms are still needed to increase quality of regulations and support the ease-of-doing business initiatives in Malaysia. Although the study did not imply causation, it is enough to establish that higher Doing Business rankings are associated with more foreign investment which in turn generate business, create employment, exchange of technologies, and emergence of innovation, among other, that provide beneficial collateral effects on the economy.
Keywords: foreign direct investment, doing business index, FDI, business regulations, ease of doing business.
Title: The Nexus between Levels of Foreign Direct Investment (FDI) and Doing Business Index (DBI) in Malaysia: How Regulations Affect Business Environment and the Malaysian Economy
Author: Ismail Bashir Aboushakra
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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