Reinvestigating the Presence of Environmental Kuznets Curve in Malaysia: The Role of Foreign Direct Investment

Over the past forty years, Malaysia has achieved tremendous economic growth because of higher investment from foreigner such as China, Japan, and US. Many multinational companies (MNC) have allocated their factories especially in more developed state Selangor, Penang Johor to focused on operation. The country able receive various benefits this form job creation, advancement technology, better income distribution at same time, some negative externalities environmental degradation can also take place those Given situation, it is interesting investigate current sustainable development for by considering impacts FDI. This paper investigating presence Environmental Kuznets Curve (EKC) well Pollution Haven Hypothesis (PHH) using a latest annual dataset period 1971 until 2019. study used Bound test determine impact FDI other selected macroeconomic variables quality proxied Carbon emission (CO2). outcomes shows that showcased U shaped EKC inflows worsening country’s pollution. These posit bad alarm policymakers be aware consequences cause carbon emissions release how MNC contribute with make scenario worsen. Heavy rules should imposed foreign investors need directing following principles set out United Nation pursing development.