Azmin: Approved investments in Malaysia soar over 51pc to RM177.8b from Jan-Sept 2021
23 Dec 2021
Malaysia registered a stellar approved investment growth of 51.5 per cent year-on-year to RM177.8 billion, involving 3,037 projects, in the period of January-September 2021 (9M2021).
Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the approved investments, comprising the manufacturing, services and primary sectors, are expected to generate 79,899 jobs in the country.
“The country’s stellar performance is indeed a testament to investors’ strong confidence in Malaysia as a preferred investment hub, particularly our conducive business ecosystem in providing high-skilled talents and having strong readiness in advanced technology.
“This, in turn, further bolsters our role as a prominent site in global companies’ manufacturing networks, enhancing Malaysia’s position as a pioneering, renowned investment destination in the region,” he said in a statement issued by the Malaysian Investment Development Authority (MIDA) today.
Mohamed Azmin said the manufacturing sector account for 58.4 per cent (RM103.9 billion) of total investments, followed by the services sector at 32.5 per cent (RM57.8 billion) and the primary sector at 9.1 per cent (RM16.1 billion).
Foreign direct investments (FDIs) account for nearly 60 per cent of the approved investments at RM106.1 billion, with Singapore, China, Austria, Japan and the Netherlands being the top five FDI countries, accounting for nearly 85.3 per cent or RM90.6 billion of the total numbers.
While FDIs lead the approved investments in the manufacturing sector investments, investments by local companies dominated in the services and primary sectors.
During the nine-month period, domestic direct investments (DDI) totalled RM71.7 billion or 40.3 per cent of the total approved investments.
Kedah, Sarawak, Kuala Lumpur, Selangor and Pahang contributed RM134.8 billion or 75.8 per cent to the total approved investments in various sectors, he said.
He said a total of 522 manufacturing projects worth RM103.9 billion were approved in 9M2021 — a 60 per cent jump compared to RM64.8 billion in 9M2020.
“FDIs drove the strong performance of the manufacturing sector during the period, soaring by 133.5 per cent compared to the same period in 2020, accounting for 88.3 per cent or RM91.7 billion of the approved investments within the sector.
“The remaining RM12.2 billion (11.7 per cent) of approved investments in the manufacturing sector were from domestic sources,’’ he noted.
About 96.8 per cent of the total approved investments for the sector comprised of electrical and electronics (E&E) (RM64.3 billion), fabricated metal products (RM14.0 billion), rubber products (RM5.4 billion), basic metal products (RM5.2 billion), food manufacturing (RM4.6 billion), chemicals and chemical products (RM4.1 billion), scientific and measuring equipment (RM2.1 billion) and transport equipment (RM980.8 million).
Mohamed Azmin emphasised that Malaysia is focusing on pursuing more high quality, capital-intensive projects and those that support the sustainable development agenda of the nation.
“To support our nation’s Shared Prosperity Vision (SPV) 2030 and our 12th Malaysia Plan (12MP), we have been securing new investments that align well with Malaysia’s National Investment Aspirations (NIA) and Environmental, Social and Governance (ESG) principles.
“This is reflected by the increasing number of capital-intensive projects approved by MIDA in 9M2021,” he added.
As a result, a workforce of 2,923 managerial positions and 10,207 technical professionals such as engineers were required in the fields of E&E, mechanical, chemical and other disciplines.
The approved manufacturing projects will also needed 7,907 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, Information Technology personnel, quality controllers, electricians and welders.
The capital investment per employee (CIPE) ratio of the projects approved in 9M2021 increased to RM1.73 million from RM1.27 million in 9M2020.
Notable projects approved include Austrian and global leader of high-end printed circuit boards and integrated circuit substrates, AT&S, that has chosen Malaysia to set up its first production plant in the region via an investment worth RM8.5 billion in Kulim, Kedah.
Nexperia Malaysia, a wholly-owned subsidiary of Nexperia BV (Netherlands), one of the leading players in the high-volume production of essential semiconductors and components, will also be expanding its operations in Negeri Sembilan by investing in building, equipment and automation.
Japan-based Taiyo Yuden also announced an investment of RM680 million for the expansion of its multilayer ceramic capacitors production in Kuching, Sarawak, to meet the growing demands of their clients in Asean.
Meanwhile, the services sector saw approved investments of RM57.8 billion through 2,473 services projects, which are expected to create 19,731 jobs.
Domestic investments dominated those approved within the sector, making up RM46.9 billion or 81.1 per cent, while RM10.9 billion were from foreign sources, he said.
Mohamed Azmin said the real estate sub-sector remained as the largest contributor with RM20.1 billion, whereas global establishments, financial services, hotel and tourism as well as transport services also recorded increases during the period.
“Notably, the approved investments for global establishments saw a significant jump in approved investment from the corresponding period last year at RM9.2 billion.
“A total of 83 projects to make Malaysia their regional or global operations hubs were approved during January-September 2021,” he said.
He added that these activities are expected to create new jobs for 3,760 knowledge-based or highly technical skilled workers and position Malaysia on course for greater integration into the global supply chain.
Mohamed Azmin said the primary sector contributed RM16.1 billion or 9.1 per cent to the total approved investments in 9M2021, soaring by 827 per cent from 9M2020.
The mining sub-sector dominated with approved investments of RM16.0 billion, followed by plantation and commodities with RM84.8 million and agriculture at RM11.5 million, creating 304 new jobs in the country.
Investments from domestic sources made up the bulk of the approvals with a total amount of RM12.6 billion or 78.3 per cent, while foreign investments contributed RM3.5 billion or 21.7 per cent.
“Looking towards 2022, the government has lined-up strategic and focused trade and investment missions targeted to capture investments in high technology, innovation and research-driven industries that will complement the Malaysian industrial ecosystem.
“This will build upon the 523 projects with proposed investments of RM37.2 billion in the manufacturing and services sectors that are within Mida’s pipeline as of Dec 10, 2021,’’ he concluded.