Malaysia Secures Historic RM329.5 Billion in Approved Investments, Generating Close to 130,000 Jobs in 2023

Amidst the challenges of a tumultuous global economy, Malaysia stands tall, showcasing unprecedented growth and resilience. On 29 February 2024, Malaysia’s Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, announced the country’s historic investment performance for 2023 during the MIDA Annual Media Conference (AMC) 2024. The AMC themed “Advancing Responsible Investments” revealed that Malaysia had secured a staggering RM329.5 billion in approved investments, comprising 5,101 projects that are expected to create 127,332 new job opportunities. This remarkable performance is a 23.0 per cent increase as compared to RM267.7 billion approved investments last year.

Foreign Investments (FI) accounted for 57.2 per cent of total approved investments, or RM188.4 billion, while Domestic Investments (DI) recorded 42.8 per cent or RM141.1 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.

The services sector led the way, with approved investments totalling RM168.4 billion, anticipated to generate 52,732 opportunities from 4,143 approved projects.

A significant portion of the services sector’s investment comes from domestic sources, amounting to RM110.5 billion or 65.6 per cent, with FI contributing the remaining 34.4 per cent or RM57.9 billion.

The Information and Communications sub-sector stands out with RM63.7 billion in approved investments, representing 37.8 per cent, and leading the charge in the services sector’s growth.

On the manufacturing sector front, Malaysia attracted a total of RM152.0 billion in approved investments, accounting for 46.1 per cent of the total approved investments across various economic sectors. This marks a significant increase of 80.3 per cent from RM84.3 billion recorded in 2022.

FI was a major force behind this surge, contributing RM128.5 billion or 84.5 per cent of the total manufacturing sector investments, showcasing a striking 94.5 per cent growth from the previous year, while DI, remained substantial at RM23.5 billion or 15.5 per cent. This investment landscape highlights Malaysia’s capacity to attract significant foreign capital, reinforcing its status as a competitive manufacturing hub on the global stage.

Noteworthy is that the surge in manufacturing investments is poised to create 73,939 job opportunities, with a significant emphasis on high-impact roles in management, professional/technical, supervisory, and skilled worker categories (MTS) amounting to 30,407 jobs, of which 91.7 per cent are expected to be filled by Malaysians.

The electrical and electronics (E&E) industry, a cornerstone of Malaysia’s manufacturing prowess, secured the lion’s share of investments with RM85.4 billion, representing 56.2 per cent of the sector’s total.

Finally, the primary sector recorded 75 projects, contributing RM9.1 billion to the overall approved investments, which anticipates creating 661 new jobs.

Looking ahead, Malaysia celebrates this historic achievement while remaining committed to fostering an environment conducive to high-quality investments. Efforts to centralise investment promotion and streamline processes highlight Malaysia’s dedication to becoming a premier investment destination.

Echoing the Minister’s sentiments, “The goal is to attract quality investments that complement national objectives, focus on essential industries, ensure the swift realisation of approved investments, and boost investors’ contentment. In ensuring that we remain focused on the implementation of all these committed and approved investments, I just wish to share that MITI and its agencies will be guided by the mantra “DELIVER TOGETHER, NOW”.

MITI and MIDA will continue to remain steadfast in our commitment to fostering an environment conducive to high-quality investments aimed at creating high-paying jobs for our rakyat. Rest assured, our dedication to this cause is unwavering as the MADANI Government strives to ensure prosperity, stability, and inclusivity.

Note: More details on this announcement is available on www.mida.gov.my