Malaysia Attracts RM42.8 Billion In Approved Investments For Q1 2022

Malaysia has attracted a total of RM42.8 billion (USD10.2 billion) in approved investments in the manufacturing, services, and primary sectors, involving 910 projects in January to March 2022.

Foreign direct investments (FDI) remained the major contributor, at 65 percent or RM27.8 billion, while investments from domestic sources contributed 35 percent amounting to RM15 billion. According to the MInistry of Internation Trade Industries, the approved investments will create 24,906 new jobs in the country.

During the period, the manufacturing sector continued to assume an important role in driving the country’s economic recovery, accounting for more than half (70.1 per cent) of total approved investments of RM30 billion, followed by the services sector at RM12.7 billion (29.7 per cent) and the primary sector at RM0.1 billion (0.2 per cent).

FDI accounted for 65 per cent or RM27.8 billion of approved investments. Of the total investments approved, Germany dominated foreign investments for the period January to March 2022, with investments totaling RM8.9  billion (32 per cent), followed by Brunei RM 5.1 billion (18.3 per cent), the United States of America (USA) RM3.9 billion (14.0 per cent), Hong Kong RM3.3 billion (11.9 per cent), and Japan RM3.2 billion (11.5 per cent) of total approved FDI in the country.

For projects approved by state, five major states, namely Kedah, Penang, Selangor, Sabah and Johor, contributed RM31.8 billion (74.3 per cent) of the total investments approved.

Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry said, “Malaysia remains an attractive investment destination for global investors with the manufacturing sector maintaining its position as a key pillar of the economy for 2022 generating significant multiplier effects on the nation’s growth. Today, we are proud to have over 5,000 companies from more than 40 countries that have made Malaysia their location for manufacturing and related services operations.”

The Malaysian Government has lined-up strategic and focused trade and investment missions (TIM) targeted to capture investments in high technology, innovation and research-driven industries that will complement the Malaysian industrial ecosystem. The recent TIM to USA in May 2022 was indeed a successful initiative that has secured RM16.52 billion in committed investment for 2022.

The country’s economic growth prospects for 2022 are expected to improve further, as the country transitions to the endemic phase of COVID-19 beginning April 1, 2022. According to Bank Negara, Malaysia’s economy is expected to grow between 5.3 to 6.3 per cent in 2022. Reopening international borders and the relaxation of standard operating procedures (SOPs) are expected to have a more positive impact in the country’s economic recovery.

As of 7 June 2022, there are 268 projects with proposed investments of RM14.4 billion (USD3.3 billion) in the manufacturing and services sectors that are within MIDA’s pipeline.

Moving forward, MIDA has identified 446 high-profile investment prospects including Fortune 500 companies in the manufacturing and services sectors with a combined potential investment value of RM150.4 billion (USD34.3 billion) as of 1 June 2022.     

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