Foreign investments in Malaysia soar with RM71.4bil approved in Q1: Prime Minister
06 Jul 2023
Malaysia has seen a surge in foreign investments with a total of RM71.4 billion approved in the first quarter of this year, according to Prime Minister Datuk Seri Anwar Ibrahim.
This marks a significant increase of 60 per cent compared to the same period last year, Anwar posted on his Facebook after meeting Japanese ambassador to Malaysia Takahashi Katsuhiko and a delegation of the Japanese Chamber of Trade and Industry Malaysia.
Japan, one of Malaysia’s most important trading partners, has committed investments of RM23 billion so far this year, he added.
Anwar said Malaysia and Japan continue to celebrate their strong diplomatic relations, now entering their 65th year.
Japan is Malaysia’s fourth largest trading partner, with a total trade volume of US$41.21 billion (about RM181.51 billion) in 2022.
Japan is also listed as one of the main sources of foreign direct investment (FDI) in manufacturing projects in Malaysia.
Last year, a total of 2,746 projects were implemented, with investments worth US$27.25 billion (RM91.14 billion) and the creation of 336,326 job opportunities.
“This year, we have secured investment commitments from Japan amounting to RM23 billion. Therefore, it is crucial for us to ensure a conducive investment environment and attract more foreign investors to Malaysia.”
The continuous increase in FDI is evidence of the growing confidence of foreign investors in Malaysia’s progress and economic potential, Anwar said.
“I have been informed that based on a survey by the Japan External Trade Organisation (JETRO), 96 per cent of Japanese companies want to continue operating in Malaysia, with half of them aiming to expand their businesses here.
“This expansion rate is higher than the Asean average and the second highest in the region.”
Anwar said Malaysia’s economic foundation remains strong, as demonstrated by low inflation and a more stable political landscape. The demand for Malaysian products and services is also increasing.
“The government is also firmly committed to developing new industries such as the digital economy and green technology. I am very optimistic about the future performance of investments in Malaysia, which will undoubtedly continue to thrive.
“The government will continue to strive to strengthen the investment climate. We are also improving the ease of doing business, attracting high-value and impactful investments, and creating a competitive local workforce.”
He added that the efforts are in line with the upcoming New Investment Policy and will be further detailed in the New Industrial Master Plan, set to be launched in August.
Source: NST
