Foreign direct investment has played as an important role in many of the economies of the region, especially in export sectors. FDI has been a main key factor increasing export-led growth in developing countries, particularly in Malaysia. The purpose of this paper is to analyze the impact of uncertainty risk factors and mega event have tremendously affected global FDI inflows to Malaysia. This study investigates and empirical relationship of uncertainty risks and mega event-Financial Crisis 2008 to global FDI inflows to Malaysia. This paper examines four uncertainty risk factors which are Political stability and Absence of violence (H1), Rule of law (H2), Labor cost risk- Labor cost per employee (H3), Exchange rate risk- Exchange rate (H4) and one mega event- Financial crisis 2008 (H5) during 2000 to 2009.
A multiple regression model is used to investigate the significance of the uncertainty risk and mega event on FDI inflows to Malaysia. Econometric-Views (E-views) program is used to analyze the collected data, and regression analysis will be employed as the method of empirical study. The result shows that four of five hypotheses to be supported to the depended variable FDI. The variables which are significant as following: Political stability and Absence of violence (H1), Labor cost per employee (H3), Exchange rate (H4) and Mega event- Financial crisis 2008 (H5).

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