Malaysia’s Robust Q1 2025 Investment Performance: A Testament to Enduring Confidence!

Malaysia has commenced 2025 with a stable investment outlook, recording RM89.8 billion in approved investments across the services, manufacturing, and primary sectors—a modest 3.7% increase compared to the same period last year. These 1,556 approved projects are anticipated to generate over 33,300 jobs, many of which are expected to be in high-impact and value-added sectors.

Malaysia’s pro-business policies, strategic regional location, and solid economic fundamentals continued to inspire investor confidence, with foreign investments (FI) contributing RM60.4 billion (67.3%) of the total approved investments. Meanwhile, domestic investments (DI) stood strong at RM29.4 billion (32.7%), demonstrating unwavering commitment from local industry players in building the nation’s future-ready economy.

Malaysia’s strategic shift under the National Investment Aspirations (NIA) continues to guide investment direction, with RM48.0 billion (53.4%) of Q1 2025’s approvals aligned with key NIA priorities such as advanced technology, green growth, digitalisation, and inclusivity. These 176 transformative projects are expected to contribute 12,510 skilled jobs, bolstering Malaysia’s move up the global value chain.

The services sector led the charge with RM57.8 billion in approved investments across 1,342 projects—an impressive 39.5% year-on-year increase. This growth is propelled predominantly by data centre-related investments, which accounted for 91.7% of total services approvals, cementing Malaysia’s emerging role as a digital infrastructure hub in ASEAN.

A key contributor is Speedmatrix Sdn. Bhd., a trailblazer in delivering IT Infrastructure-as-a-Service (IaaS), digital infrastructure management, and cloud support to global markets—positioning Malaysia at the forefront of next-generation digital solutions.

The manufacturing sector continued its transformation into a hub of high-value activity, with RM30.5 billion approved across 207 projects—83.8% of which came from foreign sources. These investments are expected to generate 18,317 jobs, many of which are high-skilled positions.

Encouragingly, the Managerial, Technical, and Supervisory (MTS) index rose to 46.3% in Q1 2025, up from 44.2% a year ago. This increase signals Malaysia’s ongoing success in climbing the manufacturing value chain and nurturing a knowledge-intensive workforce.

While smaller in scale, the primary sector secured RM1.5 billion in approved investments across 7 projects, primarily in mining. Domestic investments accounted for RM1.1 billion (72.1%), with foreign contributions at RM0.4 billion (27.9%), underlining continued domestic confidence in this foundational sector.

Malaysia’s investment success is not just in approvals but also in delivery. From 2021 to 2024, the National Committee on Investment approved 3,494 manufacturing projects, of which an impressive 87% (3,042 projects) have advanced into various stages of implementation—including full production, construction, and equipment installation. Notably, over 90% of projects approved in 2021 and 2022 have already progressed, underscoring MIDA’s proactive support and coordination across agencies. This high implementation rate is a strong vote of confidence in Malaysia’s policy consistency and investor services.

Despite global uncertainties, Malaysia remains firmly on the radar of global and regional investors. As of 10 June 2025, MIDA is actively managing a pipeline of RM48.5 billion in proposed projects and RM59.3 billion in investment leads, signalling strong investor interest ahead.

Equally promising, 87% of manufacturing projects approved between 2021–2024 have entered various stages of implementation, reflecting the effectiveness of MIDA’s facilitation and follow-through capabilities.

Malaysia’s role as Chair of ASEAN in 2025 presents a pivotal opportunity to deepen regional cooperation, attract strategic investments, and assert its leadership within the ASEAN Economic Community. With strong government support, robust infrastructure, and an investor-centric ecosystem, Malaysia continues to rise as a premier investment destination and regional economic force.

Q1 2025’s performance is more than a number—it reflects Malaysia’s steady course towards long-term growth, sustainable development, and global competitiveness. The future remains bright for investors who choose Malaysia as their launchpad for innovation, value creation, and strategic regional expansion.