Abstract

Foreign Direct Investment (FDI) is not new to the Malaysian economy. Malaysia’s GDP growth rate has increased annually for the past three decades thanks to the emergence of inwards FDI into Malaysia. One sector that has attracted the attention of FDI into Malaysia is Malaysia’s growing services sector. This paper will analyze secondary researches that are related to Malaysia’s Small Medium Enterprises (SMEs), FDI inflow and services sector. The authors managed to get 182 top managers of selected Malaysia’ SMEs in the services sector to take part in this research via questionnaire. The results from the questionnaires were then analyzed using descriptive statistics, as well as a statistical software of SPSS. Using SPSS, the authors managed to identify and analyze the reliability of the data collected using Cronbach’s alpha, and to analyze the level of significance for each data using Pearson r Correlation Coefficient. The empirical result shows that the reliability based on Cronbach’s alpha is acceptable. Furthermore, the levels of significance for selected variables are positive and significant which resulted in the hypothesis being null rejected and alternative accepted.

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