KUALA LUMPUR (Feb 24): 1Malaysia Development Bhd (1MDB) sentiment has dented foreign investors' confidence in Malaysia, as they doubted the country's transparency in its 1MDB investigations, according to global law firm Hogan Lovells.
 
Hogan Lovells said in its 2016 Global bribery and corruption review report that key performance indicators showed the country's economy has been affected by corruption allegations surrounding 1MDB.

“This (doubt on transparency) makes it hard to confidently do business there (Malaysia),"  Hogan Lovells said.

According to Hogan Lovells, Malaysian authorities' inability to find any wrongdoing in the 1MDB probe has not deterred regulators in Singapore and Switzerland, besides the U.S. and UK, to conduct their own investigations.  

As such, foreign investors in sectors like manufacturing and oil and gas "have been affected", the firm said. 

Malaysia has indicated its commitment to cooperate with international regulators in their 1MDB probe.
 
In September last year, Reuters quoted Prime Minister Datuk Seri Najib Tun Razak as saying Malaysia would cooperate with global authorities investigating 1MDB.
 
"We are equally concerned about good governance in Malaysia and the rule of law. So within the bounds of good governance and the rule of law, Malaysia will do its best to cooperate and to do whatever is necessary," Najib said.