Malaysia attracted a total of RM132.6 billion (USD28.4 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,651 projects from January to June 2023 and is expected to create 51,853 job opportunities in the country.
MIDA released the latest data on investment acknowledging the return of confidence in Malaysia’s economy and its offerings to investors, including a Government that supports and develops pro-business policies, and continuously enhances the ease of doing business and being in a strategic location in Asia with strong growth potential.
MITI Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, commenting on the report said, “Despite global demand slowdown and a higher interest rate environment in key markets, Malaysia managed to attract approximately a similar amount of approved investments in 1H2023 year-on-year, reflecting confidence in the nation’s economic growth prospects. Notably, direct domestic investment increased by 58%, and represented over 52% of approved investments which, to us, is a clear vote of confidence in the MADANI Economy policies. The total approved investments are also set to create at least 50,000 jobs for Malaysians.”
The Minister said the achievement closely mirrors the ten-year average of RM222.6 billion and is confident Malaysia will be able to achieve the full-year target.
Domestic Direct Investment (DDI) accounted for 52.2% of the total approved investment, or RM69.3 billion (USD14.8 billion). This is a remarkable surge of 58.2% from the same period in 2022, underscoring the competitiveness of local players. The strong performance of DDI was driven by investments in the services sector, particularly real estate and primary sector. The balance amount is from FDI, which contributed 47.8%, or RM63.3 billion (USD13.6 billion) to the approved
investments. Singapore is the leading source of FDI with approved investments totalling RM13.7 billion (USD2.9 billion). The nation has also attracted quality investments from other countries, such as Japan (RM9.1 billion) (USD2.0 billion), The Netherlands (RM9.0 billion) (USD1.9 billion), the People’s Republic of China (PRC) (RM8.4 billion) (USD1.8 billion), and British Virgin Islands (RM7.1 billion) (USD1.5 billion).
Five states have recorded significant approved investments, namely Wilayah Persekutuan Kuala Lumpur (RM31.7 billion) (USD6.8 billion), Selangor (RM29.7 billion) (USD6.4 billion), Kedah (RM14.6 billion) (USD3.1 billion), Johor (RM14.2 billion) (USD3.0 billion), and Sabah (RM9.0 billion) (USD1.9 billion). Together, these top five states accounted for an impressive
74.9% of the total approved investments.
Malaysia’s Services Sector Led the Investment Wave with Diverse Sources The services sector led the way in terms of investment approvals in Malaysia in the first half of 2023, with a total of RM82.4 billion (USD17.6 billion) approved, accounting for 62.1% of the total. A total of 24,747 new jobs are expected to be created in the services sector as a
result of these investments.
Of the total approved investments in the services sector, RM54.5 billion (USD11.6 billion) came from DDI, accounting for 66.1% of the total. The remaining 33.9% or RM27.9 billion (USD6.0 billion) were from FDI. The real estate sub-sector was the largest recipient of investments in the services sector, with RM30.7 billion (USD6.6 billion) approved. Other major sub-sectors included information and communications (RM29.1 billion, USD6.2 billion) distributive trade (RM8.2 billion,
USD6.2 billion), financial services (RM5.5 billion, USD1.2 billion), and utilities (RM3.8 billion, USD0.8 billion).
There was also a significant increase in investments in green technology, with RM1.3 billion (USD268.0 million) approved, reflecting a 21.9% year-on-year growth. These approved investments encompass diverse green technology initiatives, including renewable energy, energy conservation, waste management, green buildings, and services.
Notably, Malaysia’s competitive prowess shines on the world stage, ranking 27th in the 2023 IMD World Competitiveness Ranking. Within ASEAN, Malaysia secures an impressive second spot as the Most Competitive Country in the 2023 IMD World Competitiveness Yearbook, underscoring its enduring appeal for businesses and investors.
