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The ‘reverse bamboo network’: Sociocultural dialectics of China’s FDI in housing (FDIH) in Iskandar Malaysia

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  • Hasniyati Hamzah

Abstract

The ‘bamboo network’ is used to conceptualise the investment flow into China from the Chinese diaspora, particularly those who resided in South-east Asia. However, global economic events have decimated the wealth of overseas Chinese whilst mainland Chinese businesses prospered, resulting in what is now reimagined as the ‘reverse bamboo network’. In Iskandar Malaysia (IM), which is a transnational economic region bordering Singapore, the foreign direct investment in housing (FDIH) from China has surpassed that of IM’s more prosperous neighbour Singapore, yet the interscalar interactions between market and actors in FDIH have yet to be unpacked. The aim of this paper is to examine how mainland Chinese developers operate within a bamboo network country by arguing that the similar socioculture helps in moderating institutionalised barriers, such as the unfamiliar legal framework and local personnel management. Framed by the ‘reverse bamboo network’ argument and underpinned by the sociocultural explanation, this paper explains the spatial and business transformations caused by FDIH from China. Data and information from desk research and fieldwork are used to construct macro-, meso- and micro-level dialectics in the paper. Ultimately, this paper argues that the sociocultural dialectic provides a complementary explanation of transnational shapers of the urban space in IM, and having political and cultural allies in the host country could tremendously improve business operations of international developers.

Suggested Citation

  • Hasniyati Hamzah, 2020. "The ‘reverse bamboo network’: Sociocultural dialectics of China’s FDI in housing (FDIH) in Iskandar Malaysia," Urban Studies, Urban Studies Journal Limited, vol. 57(8), pages 1786-1802, June.
    • Handle: RePEc:sae:urbstu:v:57:y:2020:i:8:p:1786-1802
    DOI: 10.1177/0042098019853480
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