Malaysia still an FDI magnet, approves RM71.4bil of projects in first three months

Malaysia still an FDI magnet, approves RM71.4bil of projects in first three months

29 May 2023

Malaysia attracted RM71.4 billion in approved investments from January to March 2023 (1Q23), once again proving its value as a preferred investment destination. 

The Malaysian Investment Development Authority (MIDA) said with an impressive number of 1,265 projects approved, the projects would generate 23,977 new job opportunities across the manufacturing, services and primary sectors. 

Malaysia also captured more foreign direct investments (FDI) than domestic direct investments (DDI) in 1Q23, with its conducive investment landscape. 

FDI contributed RM37.5 billion, representing 52.5 per cent of the total approved investments. 

DDI accounted for RM33.9 billion, representing 47.5 per cent of the total approved investments, clearly reflecting domestic investors’ renewed confidence in Malaysia’s economic progress and prospects, MIDA said.

The top five states that attracted a significant portion of the approved investments for 1Q23 were Kuala Lumpur with RM21.8 billion, followed by Johor (RM10.6 billion), Selangor (RM7.4 billion), Perak (RM7.1 billion) and Sabah (RM6.3 billion). 

International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s ability to attract RM71.4 billion in approved investments for 1Q23 underscored the country’s continued appeal as an investment powerhouse. 

He added that both foreign direct investments and domestic investments almost matched each other in value.  

“From a domestic perspective, this clearly reflects renewed confidence in Malaysia’s growth prospects. 

“All these will have positive spillover impact particularly on the small and medium enterprises (SMEs) in our domestic supply chain, and on the rakyat in terms of better paying jobs, which will help support our economy in the face of various global challenges this year,” he said in a statement today. 

In 1Q23, the services sector surpassed all other sectors in terms of approved investments, registering RM53.6 billion, which accounted for 75.1 per cent of the total approved investments. 

This represented an impressive 226.8 per cent year-on-year growth over the previous year’s figure of RM16.4 billion for 1Q22.  

The RM53.6 billion represents an impressive 1,058 approved projects, expected to create 12,051 new job opportunities. 

Malaysia also continued to attract a healthy level of investments in the manufacturing sector in 1Q23, with a substantial value of RM15.6 billion or 21.8 per cent of the total approved investments. 

This commitment was evident through the approval of 192 manufacturing projects, slated to generate over 11,900 new job opportunities. 

Additionally, the primary sector in Malaysia drew investments valued at RM2.2 billion in 1Q23. 

According to MIDA, Malaysia’s investment landscape presented bright prospects with a pipeline of proposed investments and lead projects overseen by the agency. 

There are currently a total of 878 projects and proposed investments amounting to RM35.9 billion for pipeline projects, and RM150.4 billion for lead projects.

The manufacturing sector took the lead with 78.8 per cent (RM28.3 billion) of pipeline projects, while the services sector accounted for 21.2 per cent (RM7.6 billion), showcasing a diversified investment portfolio. 

MIDA chief executive officer Datuk Arham Abdul Rahman said the robust pipeline and lead project portfolio solidify Malaysia’s reputation as an attractive and thriving investment destination, fueled by its strategic location, robust infrastructure, skilled workforce, and supportive business policies.

Source: NST