FDI DROPPED BY ABOUT 40 PCT WORLDWIDE IN 2009

KUALA LUMPUR, Jan 19 (Bernama) -- The United Nations Conference on Trade and
Development (UNCTAD) says the global flows in foreign direct investment (FDI)
dropped by about 40 per cent to US$1 trillion in 2009 from US$1.7 trillion in
2008.

UNCTAD indicated this in the "Monitor", its new quarterly publication and
the second issue released Tuesday.

The organisation also reported that FDI flows remained relatively stable
during the third quarter of 2009 but at a low level. No pick-up in FDI was
detected in the fourth quarter.

"The overall decline in FDI for the year was widespread across all major
groups of economies.

"After experiencing a severe reduction in 2008, FDI flows to developed
countries continued to plummet,dropping by a further 41 per cent in 2009,"
UNCTAD said.

According to the UNCTAD,flows to developing and transition economies which
rose in 2008,declined by 39 per cent in 2009 as the global financial and
economic crisis continued to unfold.

It added that in terms of the mode of entry of FDIs, cross-border mergers
and acquisitions were the most affected, as it decreased by 66 per cent in 2009
compared to the previous year.
--BERNAMA