It is well documented that Malaysia is a country that experiences fast and rapid growth in its overall economy. According to the Asian Development Bank (ADB), Malaysia has the potential to become one of the seven engines of the Asian economy by 2050, led by China, India, Indonesia, Japan, South Korea, Malaysia and Thailand (Malaysian Insider, 2011). . In the 1970s, Malaysian companies began to focus on foreign investment, but the numbers were still small. These investments began by focusing on the banking and financial sectors of developed countries such as the United States and Australia. The country only started venturing into outward foreign direct investment (OFDI) in the 1990s. Malaysia's OFDI skyrocketed from a low of RM0.45 billion in 1980 to RM10.41 billion in 1997, and further to RM36.7 billion in 2007 (Goh and Wong, 2011). Malaysia is experiencing a particular trend when it comes to foreign investment. The country experienced a drastic decline in FDI inflows while FDI outflow increased at a remarkable pace especially in 2007 as seen in the graph. It is worth discussing whether OFDI is capable of displacing domestic investment and will cause a significant decline in production in domestic markets (Stevens and Lipsey, 1992). From a different point of view, OFDI can also integrate national markets and increase local industry activities by home country multinationals and, consequently, increase domestic production (Desai et al., 2005) . Therefore, there is a conceptually causal relationship between OFDI and domestic economic growth that could result either way. This essay revolves around efforts to determine the push and pull factors influencing OFDI and to critically analyze the effects of Malaysia's transition to... middle of paper... managing ambiguity, asset specificity and the volatility of the environment are some arguments for deciding whether it is wise for a company to insource rather than outsource its operations. Berjaya Hotels and Resorts is a member company of the Berjaya Corporation group of companies. It is one of the largest publicly listed conglomerates in Malaysia. The company owns several properties in Malaysia, Asia Pacific and the United Kingdom. The company also owns several hotels and resorts abroad, located in the Seychelles, Sri Lanka, Vietnam and London. Berjaya Group Berhad recognizes the concept of internalization advantage as it conducts its overseas business and operations in close proximity to top management. The company has sufficient capital, human expertise and technological capacity to independently manage the hotels and resorts, giving them total control of their overseas operations.