'Screening of Foreign Investments and the Bilateral Investment Treaties of Malaysia'.

In absence of any global treaty, the bilateral investment treaties are playing an important role of regulating foreign investments in the host countries. According to the United Nations Conference on Trade and Development, there are 2361 bilateral investment treaties are in force and like other members of the World Trade Organization Malaysia also signed bilateral investment treaties to facilitate trade. The primary purpose of economic globalization is the economic development of the developing and least-developed countries as well as to facilitate benefits of the home states. Malaysia foreign investment laws and bilateral investment treaties mainly protects foreign investors, however, neither of them has any specific provision regarding screening of foreign investments. This paper addresses two questions: (a) Do the bilateral investment treaties of Malaysia allow the host state for screening of foreign investments at entry stage? (b) Should the screening of foreign investments be required during the entry of foreign direct investment in Malaysia? Using doctrinal research method, we critically analyzed 15 bilateral investment treaties to explore whether there is any reference for screening of foreign investmentsinMalaysia. We find that the existing Malaysia bilateral investment treaties has provisions to promote and protect foreign investments but has no reference in relation to screening of foreign investments, therefore, the government of Malaysia should consider this important factor while signing any future bilateral investment treaties. [ABSTRACT FROM AUTHOR]