Nearly one-third of 2023 approved investment in manufacturing sector realised, says MITI

Nearly one-third of 2023 approved investment in manufacturing sector realised, says MITI

01 Apr 2024

Malaysia saw a total of RM152 billion approved investments for the manufacturing sector in 2023, of which RM46.1 billion were realised last year, involving 445 projects, according to the Ministry of Investment, Trade and Industry (Miti).

The achievement, which created 29,693 jobs, is deemed “encouraging”, considering that the projects have been able to be implemented in less than the usual period, which usually takes between 18 to 24 months, Miti told Dewan Negara on Monday.

Throughout 2023, Miti said only one manufacturing investment project was cancelled, involving RM19.2 million, while the implementation of nine projects were deferred, involving some RM455 million.

Malaysia’s approved investment rose 23% to a record high of RM329.5 billion in 2023, of which 57.2% was from foreign capital while 42.8% from domestic.

The services sector constituted the largest portion of total approved investment in 2023, amounting to RM168.4 billion or 51.1%, followed by the manufacturing sector’s RM152 billion or 46.1%, and the primary sector’s RM9.1 billion or 2.8%.

Miti said approved investment refers to investment planning for the capital expenditure of a project in the long term, including the cost of purchasing land, factories, machines, machinery and others.

“Generally, an approved project takes between 18 and 24 months to be implemented or realised, depending on the scale and complexity of the projects concerned,” it said.

Source: The Edge Malaysia