Linkages of Malaysian foreign direct real estate investment and trans- pacific partnerships agreement: a literature review

Abstract

Foreign direct investment (FDI) is a type of investment on business by an investor coming from another country which that investor has control on the company. Organization of Economic Cooperation and Development or better known as OECD views control as having 10 percent ownership or more of a business. Multi-national corporations (MNCs) in large make foreign direct investments. Trans-Pacific Partnership Agreement (TPPA) is a free trade agreement that will open up possible frade and investment between 12 countries namely New Zealand, Australia, Canada, Chile, Peru, Japan, Malaysia, Mexico, Brunei, Singapore, United States of America and Vietnam. The treaty was signed by the countries but has not yet entered into force. This paper provides a critical review through literature review on Foreign Direct Real Estate Investment (FDREI) in Malaysia and other parts of the world. This study also intends to highlight the linkages of Malaysian FDREI and TPPA through a previous literature review. The paper is organised by looking at the aspects of FDI, advantages and disadvantages of Foreign Direct Real Estate Investment (FDREI) in terms of socioeconomy, politics, environment, education, security and treaty as well as technology. The last section looks at the linkage between FDREI and TPPA for future research in this growing area of real estate investment.