MIDA calls for more domestic direct investment to sustain economic growth

MIDA calls for more domestic direct investment to sustain economic growth

08 Nov 2022

Enhancing domestic direct investment (DDI) is important for Malaysia’s sustainable growth given its huge contribution to the country’s economy, said the Malaysian Investment Development Authority (MIDA).

Chief executive officer Datuk Arham Abdul Rahman said DDIs play an important role in the local economy, especially against the backdrop of global uncertainties, and is essential to woo foreign direct investment (FDI).

He pointed out that FDI and DDI complement one another, arising from the same market conditions – a competitive, equitable, stable business and regulatory climate – and that both segments deserve equal attention.

“FDI is only one part of the equation in the economy, a strong domestic industry and ecosystem are also important.

“Strong domestic demand results in more DDI and a healthy DDI is essential for a successful FDI,” he said at a panel discussion titled “Shifting the Paradigm: Enhancing DDI for Sustainable Economic Growth” here today.

In 2012-2021, DDIs contributed 64.2 per cent, or RM1.364 trillion, of the total approved investment in Malaysia’s economy, while the remaining 35.8 per cent (RM761.7 billion) was FDIs.

In the services sector, 84.2 per cent or RM1.014 trillion of total approved investment in the country was dominated by DDI, while FDI amounted to RM190.4 billion.

As for manufacturing, 35.5 per cent, or RM290.8 billion, of approved investment was contributed by DDI while the bigger chunk was FDI, totalling RM527.6 billion.

Source: Bernama