Foreign Direct Investments (FDI) and Covid-19 Pandemic Affecting Exchange Rate Movement in Malaysia

by Vijaya Subramaniam

June 2021

Abstract

The purpose of this study is to analyse the empirical study on the movement of the exchange rate has a significant impact on the level of foreign direct investment and pandemic covid-19 The main goal of this study is to figure out some factors that influence’s the exchange rate movements. The movements of FDI and Pandemic Covid-19 indicators may also have a negative impact on movement of the exchange rate of Malaysia.

The impact of movements of foreign exchange will influencing the economics growth of Malaysia, the government stability, the challenges on medical sectors and balance of payments. The cross-sectional research approach was applied with using the random sampling designs with 118 respondents were participated in this study. The qualitative and quantitative also applied in this research to give a comprehensive approach and supportive of research outcomes. The elements of independent variables such as FDI and pandemic covid-19 are shown the negative relationship and significant to influencing the movement in foreign exchange in Malaysia. Some recommendations also proposed from research finding from government’s macroeconomics interventions and strategies to combating the issues of pandemic covid-19.

The present study focus on two independent variables but may be take into consideration factors such as government policy, related sectors and private sectors involvement. So its finding cannot be generalized as a whole overview. Further in depth comparative studies in other different government strategies, the position of macroeconomics, public cultural and SOP policy reinforcement settings will help to authenticate the research findings. The changes of FDI will be declining the foreign capital mobility to Malaysia and reducing the economic growth. In the same time, the issue of pandemic covid19 will be reducing the industries growth and the public life standard. Linking these topics has created a new study within the combating the threat of cybercrimes in Malaysia.

The present study also enhances the understanding of customers’ role to combat the impact of cybercrimes on the banking industry performances. Malaysia, on the other hand, is in a poorer situation than its regional counterpart due to the instability of the government and public uncertain policies and initiatives.

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