MITI and MIDA Committed to Ensuring Success of National Investment Aspirations and Robust and Sustainable Economic Recovery
Malaysia achieved robust and impressive performance for the first half of 2021 with foreign direct investments (FDI) soaring by 223.1% compared to 1H 2020, signaling the confidence of foreign investors in the country’s stable and conducive economic climate and business ecosystem. This augurs well for Malaysia’s path to vibrant and sustainable economic recovery. The stellar performance also demonstrates that Malaysia’s strategy of positioning the country as an attractive investment destination of choice and a supply chain hub in ASEAN, particularly for manufacturing operations, is showing positive results. FDI drove the strong and vibrant performance of the manufacturing sector during the period, registering RM58.2 billion in approved investments. The remaining RM8.7 billion approved investments in this sector were from domestic sources.
In terms of total approved investments, Malaysia recorded RM107.5 billion of FDI and domestic direct investments (DDI) in the manufacturing, services and primary sectors, chalking up a massive jump of 69.8% compared to the same period last year. Achieved amidst a very challenging global economic landscape, the investments involved 2,110 projects and are expected to generate 44,994 job opportunities in the country. Leveraging on the positive progress on the National Recovery Plan (NRP), improvement in the overall public health situation, and gradual reopening of economic sectors, Malaysia continues to attract high value and high – tech investments, bolstered by our capacity and capability in providing high-skilled talents and firm readiness in adopting advanced technology for value – added industries.
In tandem with our National Investment Aspirations (NIA), Malaysia consistently pursues more capital-intensive projects and those that support the development agenda of the nation, consistent with Environmental, Social and Governance (ESG) goals. This is reflected by the increasing number of capital-intensive projects approved by MIDA. Simultaneously, there is an emphasis on creating jobs across a wide spectrum of skills for the rakyat. In this regard, the 367 manufacturing projects worth RM66.9 billion approved during the first half of 2021, will create 32,220 job opportunities in various positions and roles, leading on the path for high – value and skilled employment.
The workforce required for the approved investments include 1,367 managerial positions and 4,031 technical professionals such as engineers in the field of E&E, mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector. The approved manufacturing projects will also require 4,144 skilled craftsmen. Meanwhile, domestic investments, leading in the services and primary sectors, totaled RM45.0 billion or 41.9% of the total approved investments.
Notable projects approved in 1H 2021 include Republic of Korea’s SK Nexilis project for a new copper foil manufacturing plant, Risen Energy’s proposed project to produce bi – facial technology solar products, and OCIM’s proposed investment to expand the capacity of its solar grade polysilicon plant. These projects will not only further enhance Malaysia’s industry ecosystem but boost employment opportunities in the field of high-tech skills as well as enable local businesses to leverage on the global value chain.
Going forward, from the strategic vantage point of the NIA, we will continue to pursue high quality investments to bring value to the nation and people, not just in preserving jobs but in creating new high value – added employment. We are committed towards positioning Malaysia as the ideal partner for investors in the region, enhancing our economic complexity and propelling long term growth for Malaysia through the flow of sustainable quality investments in new and complex growth areas.
With the trajectory of Malaysia’s strong economic fundamentals, positive factors underpinning growth prospect as well as expected stronger external demand for our products, the Government is fully committed to ensuring robust and sustainable recovery, equitable economic growth and shared prosperity for Malaysia.
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