Signal Malaysia had the decade's most frequent reversals in capital inflows

Summary

Among the six Southeast Asian growth markets, Malaysia saw the most frequent changes of direction in capital inflows over the decade. In 2015, foreign direct investment was the only type of inflow that was positive. From then until 2019, total inflows generally rose. In 2020 a global flight to safety caused a sharp fall in money entering Malaysia. A recovery began in 2021 and has lasted through 2024, interrupted only by a temporary dip in 2023, which underlines how exposed Malaysia is to shifts in global risk appetite.