KUALA LUMPUR, June 25 – Malaysia continues to solidify its status as a preferred investment destination, attracting an impressive RM71.4 billion in approved investments for the period of January to March 2023 (Q12023). With a total of 1,265 projects approved, this achievement is expected to generate 23,977 new job opportunities across the manufacturing, services, and primary sectors, fueling economic growth and prosperity. Foreign Direct Investments (FDI) played a significant role, contributing RM37.5 billion or 52.5% of the total approved investments.
Singapore led the FDI inflow with RM11.5 billion, followed by the British Virgin Islands at RM7.1 billion, and the People’s Republic of China (PRC) at RM6.5 billion. The contributions from Hong Kong SAR and the Republic of Korea were also notable, with RM2.9 billion and RM2.5 billion, respectively. Meanwhile, Domestic Direct Investments (DDI) demonstrated renewed confidence in Malaysia’s economic progress, accounting for RM33.9 billion or 47.5% of the total approved investments.
This balanced representation between FDI and DDI indicates the attractiveness of Malaysia’s investment landscape for both local and international investors. Among the states, W.P. Kuala Lumpur took the lead in attracting approved investments, totaling RM21.8 billion. Johor followed closely with RM10.6 billion, while Selangor, Perak, and Sabah secured investments of RM7.4 billion, RM7.1 billion, and RM6.3 billion, respectively. These investments signify Malaysia’s ability to attract capital and generate economic opportunities across various regions.
YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), expressed his satisfaction with Malaysia’s achievement, stating, “Our ability to attract RM71.4 billion in approved investments for the first quarter of 2023 underscores Malaysia’s continued appeal as an investment powerhouse. These investments will have a positive spillover impact, particularly on SMEs in our domestic supply chain, and on the people through the creation of better-paying jobs, which will support our economy in the face of global challenges.”
The services sector dominated the approved investments in Q12023, with RM53.6 billion, representing 75.1% of the total approved investments. This sector experienced significant year-on-year growth of 226.8%, highlighting its attractiveness to investors. Notably, the information and communications sub-sector led the way with RM24.9 billion in approved investments, followed by real estate, distributive trade, financial services, and support services. These investments reflect Malaysia’s diverse opportunities within the services sector and its potential for sustained economic growth.
In the manufacturing sector, Malaysia remained resilient, attracting RM15.6 billion in approved investments and creating over 11,900 new jobs. Key industries such as transport equipment, machinery and equipment, basic metal products, electrical and electronics, and non-metallic mineral products accounted for a substantial portion of the investments. Noteworthy projects included investments in advanced battery technology, cutting-edge lithium-ion batteries, and photovoltaic functional glass.
These ventures reinforce Malaysia’s position as a hub for high-value, high-tech ventures and signify its commitment to technological advancement. Although the primary sector attracted a modest RM2.2 billion in investments, these investments lay the foundation for future growth and innovation. The mining sub-sector received RM2.1 billion in approved investments, emphasizing Malaysia’s capacity to extract valuable minerals, while the plantation and commodities sub-sector focused on enhancing productivity and sustainability in agricultural practices.
Looking ahead, Malaysia’s investment landscape presents promising prospects with a robust pipeline of proposed investments and lead projects. Currently, there are 878 projects and proposed investments totaling RM35.9 billion in the pipeline, along with RM150.4 billion for lead projects. This reflects the confidence businesses and investors have in Malaysia’s potential for long-term growth and success.
With its strategic location, robust infrastructure, skilled workforce, and supportive business policies, Malaysia remains committed to fostering a conducive environment for businesses and investors. As Malaysia moves forward, the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) will continue their efforts to attract new investments aligned with the objectives of the New Investment Policy. These endeavors aim to achieve sustainable and inclusive economic growth, further solidifying Malaysia’s position as a thriving investment destination.
