Page 401 - Special Topic Session (STS) - Volume 3

STS552 Norhayati Razi
The illustration for the Integrated IIP Framework are as follows:

Integrated IIP Framework Diagram 1

BOP
Current Account

Capital Account

IIP
IIP Other Changes in Fin. Assets & Liabilities IIP

Beginning Financial Account (Changes in volume or revaluation End of

of Period (Transactions) covering exchange rate and price Period
changes)
Errors and Omissions

Note: Transactions reported in the integrated IIP framework provides BOP flows, while closing position is the IIP
statistics, with EDS being derived from stock position of non-equity liability instruments. CDIS and CPIS refer to stock
position of direct and portfolio investment respectively, while IBS is the IIP of banking sector.

The quarterly IIP Survey collects granular data on item-by-item reporting,
whereby the items reflect the financial instruments and are reported in the
dimensions of the country of the counterparty, currency of transactions and
maturity structure for selected financial flows. There are 36 data items that are
identified by unique purpose of transactions, namely equity capital, retained
earnings, equity securities, debt securities, loans, deposits and others. These
items are reported with further details based on each individual counter party,
which are crucial identity to determine the types of investment for BOP
classification. Additional details, such as name, relationship, percentage
holdings of investors and affiliated companies are collected in order to
facilitate more in-depth analysis, particularly in the areas of foreign direct
investments in Malaysia as well as Malaysia’s direct investment abroad.
The main sources of external sector statistics compilation for the IIP Survey
on external assets and liabilities (EAL) vis-à-vis non-residents are as follows:
i. Data on EAL of banking institutions;
ii. Data on EAL of selected resident entities, which include direct and portfolio
investment abroad, foreign direct investment in Malaysia, credit facilities
from non-residents and any other assets and liabilities vis-à-vis non-
residents;
iii. Data on portfolio investments reported by custodians, which include
holding of Malaysian securities by non-residents and portfolio investments
of residents vis-à-vis non-residents;
iv. Data on EAL of entities in Labuan offshore, managed by the Labuan
Financial Services Authority; and Data on the government sector, obtained

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