SESRIC


Training Course on ‘Foreign Investment Survey’ in Kuwait
 
Date : 20-22 November 2017 Venue : Kuwait City Kuwait

In accordance with its 2017 Annual Work Plan and within the framework of Statistical Capacity Building (StatCaB) Programme, SESRIC organised the Training Course on ‘Foreign Investment Survey’ at the Central Statistical Bureau (CSB) of Kuwait on 20-22 November 2017.

The Training Course was conducted by Mr. Mohd Ridauddin Masud, Deputy Director, Balance of Payments (BOP) Division, Department of Statistics Malaysia, with the participation of 14 officials of the CSB of Kuwait.

As defined in the Classification of Statistical Activities (CSA Rev. 1 - October 2009 http://goo.gl/olg3Tz); foreign direct investment is classified under International trade and balance of payments which deals also with statistics on all crossborder transactions recorded in the balance of payments, includes topics like trade in goods and services, external positions and debt, foreign affiliated trade, tariffs, market access, foreign aid, development assistance, resource flows to developing countries.

The Training Course on ‘Foreign Investment Survey’ included discussion activities with a focus on the following topics:

Background to Foreign Investment

  • BPM6 Standard Components on Financial Account

Direct Investment

  • FDI Definition (According to BPM6)
  • Terms and Glossaries related to FDIs
  • Importance of FDI : benefits to the Host economy - benefits to the destination economy
  • Uses of FDI statistics: Globalization - employment - technology -  management techniques - Economic Development
  • FDI Flows and FDI Positions

Portfolio Investment

  • Introduction to portfolio investment
  • End investor and custodian survey
  • Stock market
  • Portfolio investment data collection
  • Strategy of selection of entities to be surveyed

Other Investment

  • Introduction to other investment
  • Financial instruments
  • Other investment data collection
  • Strategy of selection of entities to be surveyed

FDI Concept

  • The need to compile FDI Position
  • FDI Treatment between BPM5 and BPM6, (Other Changes)
  • Valuation of FDI
  • FDI Inward and FDI Outward
  • FDI setup (Greenfield - Expansions - Mergers & Acquisitions)
  • FDI and the Function component of BOP and IIP
  • Consistent with BOP and IIP: economic territory, residence/foreign, enterprise, voting power, equity and ownership of equity
  • Ways in which a foreign enterprise can own part/all of a resident enterprise
  • Valuation of an enterprise: uses accounting identity All Assets = Equity + All Liabilities; so Net Asset Value = Equity
  • Need consistent criterion to define FDI
  • “10% or more of voting power” rule: usually means 10% or more equity ownership

FDI Relationships Framework (FDIR)

  • Direct Investor/Direct Investment Enterprise relationships
  • Attribution of equity to Direct Investors
  • Corporate structure of enterprises
  • Branch, Subsidiary, Associate, Wholly owned
  • Immediate and Indirect relationships
  • Ultimate Investing Country
  • Fellow enterprises

FDI Sample Survey

  • Why the surveys approach?
  • Develop FDI Survey Questionnaire (One time collection variables - Regular collection variables)
  • Sample Survey: most common method, outline of main stages
  • Sample survey questionnaire: covering page, data collection tables, operational
  •   Outline of financial statements: handout an example advantages and disadvantages

FDI Reporting System

  •  Snapshot of FDI Online Reporting System : Malaysia's case 

Sign up for an account at OIC-StatCom Forum (http://forum.sesric.org/) to join the group discussion on the Training Course on ‘Foreign Investment Survey’ in Kuwait available at: http://forum.sesric.org/?p=30283