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RM42.8 Billion of Approved Investments Recorded in The First Quarter 2022

>Highlights>RM42.8 Billion of Approved Investments Recorded in The First Quarter 2022

RM42.8 Billion of Approved Investments Recorded in The First Quarter 2022

Malaysia has attracted a total of RM42.8 billion approved investments in the manufacturing, services and primary sectors, involving 910 projects in January to March 2022. The foreign direct investments (FDI) remained the major contributor, at 65 per cent or RM27.8 billion, while investments from domestic sources contributed 35 per cent amounting to RM15 billion. The approved investments for this period will create 24,906 new jobs in the country.

 

Germany dominated foreign investments for the period January to March 2022, with investments totaling RM8.9 billion, followed by Brunei RM5.1 billion, the United States of America (USA) RM3.9 billion, Hong Kong RM3.3 billion, and Japan RM3.2 billion of total approved FDI in the country.

 

For projects approved by state, five (5) major states, namely Kedah, Penang, Selangor, Sabah and Johor, contributed RM31.8 billion (74.3 per cent) of the total investments approved from January to March 2022.

Manufacturing Sector

 

Malaysia continues to attract high quality investments in the manufacturing sector for the period January to March 2022, reflecting the country’s competitiveness as a preferred location for investment in the region. The manufacturing sector contributed RM30 billion, of the total approved investments in various sectors of the economy through 184 projects.

 

Of the total approved investments in first quarter 2022, FDI amounted RM26.8 billion or 89.3 per cent, while the remaining RM3.2 billion or 10.7 per cent were from domestic sources. This testifies investors’ confidence in Malaysia as a choice of location and to continue reinvestment in high-tech industries and benefit from the vibrant business environment and diversified domestic supply chain ecosystem.

 

A total of 21,666 job opportunities are expected to be created in the manufacturing sector, including 1,086 managerial positions and 2,562 technical professionals such as engineers in the fields of E&E, mechanical, chemical, and other disciplines, reflecting the manufacturing sector’s higher value chain transition.

 

Notable projects approved during the period include:

 

  • TTM Technologies Malaysia Sdn. Bhd. a leading U.S. based global manufacturer of printed circuit boards (PCBs), radio frequency (RF) components and RF microwave/microelectronic assemblies is investing RM550 million in Pulau Pinang. This project will further boost Malaysia’s domestic E&E ecosystem by creating high-tech jobs for Malaysians and opportunities for local vendors.
  • Petroventure Energy Sdn. Bhd. (PESB), a foreign majority owned company from Brunei will be manufacturing petroleum products in Sabah. This project will help to spur Sabah’s economy as the products from the refinery will create a new supply chain that will benefit many businesses. Also, the project is anticipated to create 500 potential job opportunities in the state.

 

Services Sector

 

In the first three (3) months of 2022, a total of 720 services projects were approved with investment valued RM12.7 billion. Once implemented, these projects are expected to generate 3,219 jobs.

 

Based on the total approved investments for the period January to March 2022, domestic investments made up the largest portion, recording RM11.7 billion or 92.1 per cent of the total approved investments for the services sector, while the remaining 7.9 per cent or RM1 billion were from foreign sources.

 

A total of two (2) sub-sectors saw an increase in investment, namely the hotel and tourism sub-sector and other services, which saw increases of 581.7 per cent and 70.4 per cent respectively. This is in line with the Government’s strategy in implementing the domestic travel bubble, which aids in the growth of the hotel and tourism industries.

 

Primary Sector

 

The primary sector contributed RM169.5 million, of total investments approved in various sectors of the economy for the period January to March 2022 compared to RM6.2 billion approved for the same period last year.

 

The agriculture sub-sector has shown a significant growth in total approved investments of RM164.2 million, up 1,327.8 per cent from RM11.5 million for the same period in 2021.

 

Domestic investment dominated the primary sector with RM151.6 million (89.5 per cent), while foreign investments totalled RM17.8 million (10.5 per cent).

 

Looking ahead

 

Undeniably, Malaysia continues to offer comparative advantages to potential investors. This is proven by the Global Opportunity Index 2022 by Milken Institute which ranked Malaysia first in emerging Southeast Asia as the country with the most potential to attract foreign investors.      

 

The country’s pro-business administrative continues to be prudent and pragmatic in its policies to ensure that Malaysia’s investment climate remains attractive for businesses; not only to conduct business activities, but also expand and diversify existing operations.

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