Malaysia Attracts RM132.6 Billion Approved Investments, Propelling Economic Growth and Job Creation

Malaysia has proven its magnetism to investors, securing an impressive total of RM132.6 billion in approved investments across the services, manufacturing, and primary sectors during the first half of 2023. These investments, comprising 2,651 projects, are set to stimulate economic growth and are projected to generate approximately 51,853 job opportunities, reaffirming Malaysia’s appeal to global investors.

Domestic Direct Investment (DDI) made up a significant 52.2% of the total approved investments, amounting to RM69.3 billion. This remarkable surge of 58.2% from the previous year highlights the competitiveness of local players, particularly in the services sector.

Foreign Direct Investment (FDI) contributed 47.8%, or RM63.3 billion to the approved investments, with Singapore leading the way at RM13.7 billion. Other notable foreign sources include Japan, The Netherlands, China, and the British Virgin Islands.

Five states have recorded significant approved investments, namely Wilayah Persekutuan Kuala Lumpur (RM31.7 billion), Selangor (RM29.7 billion), Kedah (RM14.6 billion), Johor (RM14.2 billion), and Sabah (RM9.0 billion). Together, these top five states accounted for an impressive 74.9% of the total approved investments.

The recently introduced New Industrial Master Plan 2023 (NIMP 2023) assumes a pivotal role in this journey, focusing on sustainable industrial transformation and enhancing global competitiveness. NIMP 2030 represents a whole-of-nation effort toward proactively integrating local small and medium-sized enterprises (SMEs) into regional and global supply chains, fostering improved economic cooperation with neighbouring nations and bolstering investor confidence.

The services sector led the investment charge, securing RM82.4 billion, representing 62.1% of the total approved investments. This growth can be attributed to Malaysia’s diversification efforts beyond manufacturing, the flourishing digital economy, and the increasing demand for services such as logistics, healthcare, and education.

Notable projects in the services sector include GDS IDC Services (Malaysia) Sdn. Bhd., Seri Yakin Logistics Sdn. Bhd., and TNB Bukit Selambau Solar Dua Sdn. Bhd.

The manufacturing sector also performed well, attracting RM44.9 billion across 421 projects, set to generate an estimated 26,759 job opportunities. The electrical and electronics (E&E) industry played a leading role in these investments, anticipating a 2024 demand recovery in global semiconductor sales.

The primary sector witnessed a remarkable 22.5% surge in investment performance, with domestic and foreign contributions, particularly in the mining subsector.

Malaysia’s momentum continues as efforts intensify to attract quality investments, with 860 projects in MIDA’s pipeline totaling RM89.9 billion. The services sector leads the way, with 812 projects, while the manufacturing sector comprises 48 projects.

Malaysia’s ability to attract substantial investments during challenging global economic conditions underscores its resilience and promising growth trajectory. This influx not only spells good news for the country’s economy but also strengthens its potential for job creation and long-term prosperity for its rakyat.