Investors show growing confidence in Malaysia
15 Dec 2022
Malaysia remains a top investment destination among global investors and a hotspot for business expansion with investors continuing to show confidence to invest in the country with the new leadership focused on strengthening the country’s economic growth and retaining its reputation as a stable investment destination.
Malaysia attracted RM193.7 billion (US$41.7 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022 and is expected to create 98,414 job opportunities in the country. This is a 2.5 % increase as compared with the RM188.9 billion (US$45.1 billion) investments approved in the same period last year.
International Trade and Industry Minister Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said, “Malaysia’s success in attracting almost RM194 billion of approved investments in the first nine months of the year is a testament of its established standing as a gateway to Asean and an investment destination of choice in Asia.”
He said the Ministry of International Trade and Industry (Miti) and its agencies will ensure that new investment opportunities will build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner.
Foreign direct investment (FDI) remained the major contributor, at 67.5% or RM130.7 billion (US$28.1 billion), while domestic direct investment contributed 32.5% to RM63 billion (US$13.6 billion). This is a 15% increase compared with the FDI approved in the same period in 2021.
Of the total investments approved, China dominated with RM49.2 billion (US$10.6 billion) followed by the United States RM16.9 billion (US$3.6 billion), the Netherlands RM16.5 billion (US$3.6 billion), Germany RM9.2 billion (US$2 billion) and Singapore RM8.7 billion (US$1.9 billion).
During this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion (US$24.4 billion). The sector’s stellar performance exceeded expectations for January to September 2022, an increase of 60.9% from the same period in 2021.
The manufacturing sector followed with RM64.9 billion (US$14 billion) or 33.5% and the primary sector with RM15.5 billion (US$3.3 billion) or 8%.
Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman said, “Malaysia enjoys a strong reputation internationally and investors have confidence in us. The nation has a solid foundation to provide opportunities for investors.
“The government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors. The government focuses on digital economy, energy and high-value manufacturing activities such as transport technology which includes electric vehicle and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.
For the period, the services sector accounted for the largest share of the total approved investments, amounting to RM113.3 billion (US$24.4 billion) from 2,167 projects. This is a significant increase compared with the RM70.4 billion (US$16.8 billion) investments approved for the services sector in the same period last year.
Based on the total approved investments for January to September 2022, foreign investments made up the most significant portion, recording RM69 billion (US$14.9 billion) or 60.9% of the total approved investments for the services sector, while the remaining 39.1% or RM44.3 billion (US$9.5 billion) were from domestic sources.
Malaysia continued to attract high-quality investments in the manufacturing sector from January to September 2022. The sector accounted for RM64.9 billion (US$14 billion) or 33.5% of the total approved investments in various economic sectors, compared with RM103.9 billion (US$24.8 billion) for the same period in 2021.
Of the total approved investments in January to September 2022 for the manufacturing sector, FDI amounted to RM50.2 billion (US$10.8 billion) or 7.3%, while domestic investments contributed to the remaining RM14.7 billion or 22.7%.
Meanwhile, the primary sector recorded RM15.5 billion (US$3.3 billion) approved investments (8%) from January to September 2022, compared with RM14.7 billion (US$3.5 billion) for the same period in 2021. FDI was valued at RM11.5 billion (US$2.5 billion) or 74.2%, while domestic sources contributed the remaining RM4 billion (US$0.9 billion) or 25.8%.
Source: The Sun Daily