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Malaysia’s total approved investments up 51.5% y-o-y to RM177.8b in January to September

Photo Credit: The Edge Markets

Malaysia attracted a total of RM177.8 billion in approved investments in the manufacturing, services and primary sectors, involving 3,037 projects, in January to September 2021, according to the Malaysian Investment Development Authority (MIDA) in a statement on Thursday (Dec 23).

This, it said, represented a 51.5% increase compared to the same period last year and is expected to generate 79,899 jobs in the country.

In the statement, Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said: “The country’s stellar performance is indeed a testament to investors’ strong confidence in Malaysia as a preferred investment hub, particularly our conducive business ecosystem in providing high-skilled talent and having strong readiness for advanced technology. This, in turn, further bolsters our role as a prominent site in global companies’ manufacturing networks, enhancing Malaysia’s position as a pioneering and renowned investment destination in the region.”

The statement noted that the manufacturing sector accounted for the largest share of total investments in the January-to-September period, amounting to RM103.9 billion (58.4%), followed by the services sector with RM57.8 billion (32.5%) and the primary sector with RM16.1 billion (9.1%).

It added that foreign direct investment (FDI) accounted for nearly 60% of approved investments, valued at RM106.1 billion, noting that Singapore, China, Austria, Japan and the Netherlands were the top five foreign investment sources, contributing nearly 85.3% or RM90.6 billion of total approved FDI.

While FDI led approved investments in the manufacturing sector, MIDA noted that investments from local companies dominated in the services and primary sectors. Domestic direct investment totalled RM71.7 billion or 40.3% of total approved investments.

It added that five states, namely Kedah, Sarawak, Kuala Lumpur, Selangor and Pahang, contributed RM134.8 billion or 75.8% of total approved investments in various sectors.

Edited by Joyce Goh