Malaysia Attracted RM264.6 Billion of Approved Investments in 2022

On 8 March 2023, Malaysia’s Minister of International Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, announced the country’s investment performance for 2022 during the MIDA Annual Media Conference (AMC) 2023. The AMC themed “Sustainable Investments for Growth,” revealed that Malaysia had secured RM264.6 billion worth of approved investments, comprising 4,454 projects that are expected to create 140,370 new job opportunities for Malaysians.

Foreign Direct Investment (FDI) accounted for 61.7 per cent of total approved investments, or RM163.3 billion, while Domestic Direct Investment (DDI) recorded 38.3 per cent or RM101.3 billion.

The Minister’s speech highlighted that investing in sustainable technologies and solutions is urgent, and must be a whole-of-nation effort to attract the right investments that will support local SMEs and supply chains, as well as create job opportunities for the rakyat.

Here’s a summary of Malaysia’s approved investments for 2022:

The services sector emerged as the dominant player, with approved investments totalling RM154 billion across 3,581 projects – a 58.8% increase from the previous year (RM97 billion).

Of this value, FDI accounted for 55.1 per cent (RM84.9 billion) of total approved investments in the services sector, while domestic direct investment (DDI) made up the remaining 44.9% (RM69.1 billion).

The information and communications sub-sector dominated the services sector, with approved investments worth RM84.7 billion, or 55 per cent.

Launching of Malaysia Investment Performance Report 2022. From left to right: YBhg. Datuk Seri Isham Ishak (Secretary General MITI), YB Liew Chin Tong (Deputy Minister MITI), YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz (Minister MITI), YBhg. Tan Sri Dato’ Sri Dr. Sulaiman Mahbob (Chairman MIDA), YBhg. Datuk Wira Arham Abdul Rahman (CEO MIDA)

On the manufacturing sector front, Malaysia’s attraction as a top investment destination in the region remains strong, with a steady influx of high-quality investments. This sector contributed RM84.3 billion, or 31.9 per cent of total approved investments in various economic sectors. These approved manufacturing projects are expected to create 76,093 new job opportunities in various managerial, technical and skilled craft positions.

FDI accounted for 78.3 per cent of total approved investments, totalling RM66.0 billion, with DDI contributing the remaining 21.7 per cent (or RM18.3 billion).

Noteworthy is that the number of new projects approved outnumbered expansion/diversification projects, with the numbers recording 416 projects amounting to RM35 billion and 385 projects worth RM49.3 billion, respectively.

Finally, the primary sector recorded 72 projects, contributing RM26.3 billion to the overall approved investments.

Looking ahead:

The investment performance for 2022 depicts Malaysia’s unwavering determination to navigate challenging times. It showcases that for 2023, Malaysia is geared up on an action-oriented path by placing multi-tiered economic, social and governance policies, reforms, and initiatives to ensure equitable and sustainable economic growth, and increase the nation’s attractiveness as an investment destination.

“Moving forward, as Malaysia strives to become Asia’s investment gateway, the country is making every effort to quickly emerge as ASEAN’s digital hub, owing to our highly developed ICT infrastructure, talented STEM pool, strong intellectual property protection framework, and rule of law. The revised New Industrial Master Plan 2030 will set the tone for Malaysia’s industrial development by outlining new growth opportunities, improving the ease of doing business, and attracting high-quality digital investments. To reduce our carbon footprint and promote sustainable development, we will prioritise investments that benefit the people, planet, and profit, as well as funding for green projects and renewable energy. Our goal is to create high-paying jobs for Malaysians while also ensuring that growth is equitable and beneficial to all stakeholders.” Added Tengku Zafrul.

MITI and MIDA, will continue to strive harder to attract high-quality digital investments, generate more value and opportunities for growth through data and cloud-based technologies, and create high-paying jobs for Malaysians.

Q&A Session during the Press Conference. From left to right: YBhg. Datuk Seri Isham Ishak (Secretary General MITI), YB Liew Chin Tong (Deputy Minister MITI), YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz (Minister MITI), YBhg. Tan Sri Dato’ Sri Dr. Sulaiman Mahbob (Chairman MIDA), YBhg. Datuk Wira Arham Abdul Rahman (CEO MIDA)