MIDA: Malaysia approved RM83.7b investments for January-March period, a 13pct jump from last year - MIDA | Malaysian Investment Development Authority
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MIDA: Malaysia approved RM83.7b investments for January-March period, a 13pct jump from last year

MIDA: Malaysia approved RM83.7b investments for January-March period, a 13pct jump from last year

21 Jun 2024

Malaysia saw a 13 per cent jump in approved investments to RM83.7 billion for the January to March 2024 (1Q24) period, the Malaysian Investment Development Authority (Mida) said.

Of this, more than half came from foreign investors, while domestic investments made up the balance 43.8 per cent.

About 51 per cent of investments were for manufacturing, 47 per cent for services and 1.7 per cent for primary sectors.

These approved investments comprise of 1,257 projects, which are expected to generate 29,027 new job opportunities for Malaysians.

Austria topped the list of foreign investors by a very wide margin, with RM30.1 billion (64 per cent) in approved investments, followed by Singapore (RM5.6 billion), The Netherlands (RM3.6 billion), The People’s Republic of China (RM3.4 billion), and The United States of America (RM632.8 million).

In terms of states, Mida said Kedah recorded the highest value of approved investments (RM31.3 billion), followed by Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion), and Johor (RM4.1 billion).

Target sectors stipulated by the National Investment Aspirations (NIA) contributed RM53.7 billion, accounting for 64.1 per cent of the total approved investments across 252 projects, which are expected to create 17,056 new job opportunities.

Of the total approved investments, RM47.5 billion, or 56.8 per cent, fall under the jurisdiction of the Ministry of Investment, Trade and Industry (Miti)/Mida, covering 500 projects with 18,517 new job opportunities.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the approved investments of almost RM84 billion for 1Q24 reflect how Malaysia has earned investors’ trust.

He added that working closely with Mida, his ministry has delivered not just the investment numbers, but also their speedy realisation to quickly translate these investments into business opportunities for SMEs and jobs for Malaysians.

Making reference to Malaysia’s drop in world competitiveness ranking by the International Institute for Management Development, Tengku Zafrul said the real proof of Malaysia’s competitiveness is in the actual, continuous inflow of investments.

Malaysia now places at 34 among 67 countries on the list, from 27 in 2023.

On a sectoral basis, Malaysia’s manufacturing sector experienced significant momentum with approved investments of RM43.0 billion, registering a jump of 174.9 per cent compared to 1Q23.

Mida said a total of 252 projects were approved, which would create 17,991 new employment opportunities.

Of these, 80.8 per cent or 14,528 are for Malaysians, with 50.6 per cent in management, professional, technical, supervisory, and skilled labour roles.

FI accounted for RM38.2 billion or 88.8 per cent of the total approved investments in the manufacturing sector.

DI contributed RM4.8 billion or representing 11.2 per cent of the total.

Meanwhile, the country’s services sector recorded RM39.3 billion in investments across 994 projects, creating 10,988 employment opportunities.

DI accounted for RM30.6 billion (77.9 per cent), while FI contributed RM8.7 billion (22.1 per cent).

Mida said DI’s robustness was driven by government incentives, a stable economic environment, strategic national initiatives for digital transformation and infrastructure enhancement, and supportive policies for local enterprise development.

On the other hand, the primary sector secured RM1.4 billion in approved investments across 11 projects, mainly in mining.

The approved investments, dominated by domestic sources with RM1.3 billion (88.7 percent), while foreign sources contributed RM161.1 million (11.3 percent), are expected to create 48 new jobs.

Since beginning of the year, Miti and Mida have executed nine high-level overseas investment missions to key countries such as Germany, France, Australia, Italy, Singapore and Japan.

According to Mida, as of May 31, 2024, it is actively pursuing 1,775 proposed projects worth RM68 billion, with 1,709 in the services sector (RM44.7 billion) and 66 in manufacturing (RM23.3 billion), while negotiations are ongoing for high-potential leads totaling RM60.4 billion.

The National Committee on Investment also approved 2,638 manufacturing projects between 2021 and March 2024. Notably, 77.2 per cent of these projects are in various stages of implementation, ranging from production to factory construction and machinery installations. Meanwhile, 21.1 percent are in the planning phase, focusing on initial steps like site selection and consultations with developers and consultants, while a minimal 1.6 per cent remain unimplemented. Malaysia also achieved a high ranking in the UN Trade and Development (UNCTAD) Technology and Innovation Report 2023, securing the seventh position in the industry rank and placing 32nd among 166 countries in the Frontier Technologies Readiness Index.

Source: NST