Malaysia’s Strong First Half of 2025 Investment Performance: Driving Growth and Confidence

Malaysia continued to chart a resilient course in the first half of 2025 (1H 2025), recording RM190.3 billion in approved investments across the services, manufacturing, and primary sectors—an 18.7% increase compared to the same period last year. These 3,011 approved projects are expected to generate over 89,000 new jobs, further cementing Malaysia’s position as a premier regional investment hub.

Investor confidence remained strong, with foreign investments (FI) contributing RM106.8 billion (56.1%) of the total approved investments, while domestic investments (DI) accounted for RM83.5 billion (43.9%). This healthy balance demonstrates enduring trust from global investors alongside unwavering commitment from local industry players in driving Malaysia’s future-ready economy.

The National Investment Aspirations (NIA) continue to guide Malaysia’s transformation towards high-value, sustainable growth. In 1H 2025, RM88.3 billion (46.4%) of approved investments were aligned with NIA’s priorities—advanced technology, digitalisation, green growth, and inclusivity. These 426 transformative projects are projected to create nearly 34,000 jobs, underscoring Malaysia’s progress in moving up the global value chain.

The services sector led with RM118.6 billion in approved investments across 2,476 projects—a 25.6% year-on-year increase. This growth was broad-based, with major contributions from information and communications (RM59.6 billion), real estate (RM38.6 billion), and utilities (RM6.0 billion).

Notable projects include DHL Express (Malaysia)’s RM300 million Kuala Lumpur Gateway, one of Southeast Asia’s most advanced logistics facilities; Adventist Hospital & Clinic Services’ RM300 million expansion in Penang to strengthen healthcare offerings; and large-scale renewable projects such as the Batang Ai Floating Solar Farm in Sarawak. Together, these initiatives reinforce Malaysia’s rise as a digital infrastructure hub and a leader in green investments.

The manufacturing sector attracted RM68.4 billion across 518 projects, reflecting a 13.8% year-on-year increase. Foreign investments contributed the lion’s share at RM53.3 billion (78.0%), with domestic investments at RM15.1 billion (22.0%). These projects are expected to create 46,690 jobs, many in higher-skilled categories.

Encouragingly, the Managerial, Technical, and Supervisory (MTS) index climbed to 46.9%, up from 42.7% in the same period last year—signalling steady progress in nurturing a knowledge-intensive workforce.

Notable projects include Pentamaster Technology’s RM1.8 billion investment in next-generation semiconductor test equipment; QL Foods’ RM1.2 billion expansion to boost agro-food production and exports; and major semiconductor facilities by Chipbond and Altera, each worth RM1.0 billion. Other significant investments include Hunan Yuneng’s RM560 million lithium battery cathode material plant, Singda Superalloy’s RM336.8 million high-performance superalloy materials facility in Johor, and NetZero Technology’s RM340 million green insulation plant in Kedah. Collectively, they reinforce Malaysia’s competitiveness in advanced industries while opening new frontiers in energy transition and sustainable production.

The primary sector registered RM3.3 billion in approved investments across 17 projects, mainly in mining. Domestic investments made up RM1.8 billion (54.2%), while foreign contributions stood at RM1.5 billion (45.8%). While modest in scale, this sector continues to provide steady support to Malaysia’s broader economic foundation.

Malaysia’s strong performance is not only reflected in approvals but also in implementation. Between 2021 and June 2025, 85.1% of 3,883 approved manufacturing projects have already progressed into stages of implementation—ranging from full-scale production to construction and equipment installation. Over 90% of projects approved from 2021 to 2023 are now operational, underscoring Malaysia’s reputation for policy consistency and effective investor facilitation.

As of July 2025, MIDA is facilitating 385 potential projects worth RM22.5 billion and actively engaging on RM103.8 billion in high-impact investment leads. The services sector continues to dominate this pipeline, with major opportunities also emerging in high-tech manufacturing and green industries.

Malaysia’s role as ASEAN Chair in 2025 further enhances its strategic positioning, providing a platform to strengthen regional cooperation and attract quality investments.

1H 2025’s performance demonstrates more than growth—it is a testament to Malaysia’s enduring resilience, policy clarity, and ability to deliver real outcomes for investors. With strong fundamentals and forward-looking reforms, Malaysia remains a launchpad for innovation, sustainability, and regional expansion.