Page 147 - Contributed Paper Session (CPS) - Volume 8

CPS2217 Mohd Harith Faiz Md Saad
in Services, particularly for the mode of supply three (Mode 3). This statistic
can be used by government agencies, economists, academicians as well as
individuals for planning and formulations policies, economics analysis,
projections and to assist in business development planning.

2. Literature Review
Tattasawart (2011) stated that the Inward FATS depicted a depth
understanding related to the foreign investment’s activities to the economics
of the host country. The result of these economic activities created the jobs
formation and the exchangeable of trade and investment, technological and
managerial skill transfers. In addition, the inward became the most important
factor in expanding the size of Thailand’s economy through the investment
promotion package that been encouraged by the government. The foreign
affiliates activities in Thailand focusing more on the manufacturing sector.
According to Statistics New Zealand (2014), the companies that have
located enterprises at a foreign country can reach the capital sources to their
country by hiring more workers and also these foreign affiliates involved
mainly in manufacturing and wholesale trade recorded highest sales of
revenue.

3. Methodology
The compilation is based on the guidelines recommended in Manual of
International Trade in Services (MSITS) 2010 of United Nations and Balance of
Payments and International Investment Position Manual, Sixth Edition (BPM6).
Moreover, the Malaysia Standard Industrial Classification (MSIC) 2008 Ver.1.0
is used to classify the inward statistics by economic sector.
In this paper, the data have been retrieved mainly from the Economic
Census, Census of Distributive Trade and other economic surveys conducted
by DOSM. Within the year which the EC is not conducted, the data retrieved
from the Annual Economic Survey (AES) which conducted by the respective
divisions in DOSM. The census and the surveys contained the question
regarding the ownership of residents or non-residents in Malaysia. Those
establishments that stated the equity ownership by non-resident of more than
50 per cent and above are classified as foreign affiliates. The important
information that acquired from EC is on the country of an ultimate parent
company of the establishments whereas most of the companies tend to report
the immediate parent company.

4. Geographical Distribution of Affiliates in 2016
For the year 2016, a total of 2,964 foreign affiliates were located in
Malaysia, an increase of 8.1 per cent (2010: 2,742 affiliates) which controlled
by enterprise group with a decision centre (global headquarter) located

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