In total, there are 984 projects in the pipeline with an expected new investment of RM105.3 billion under the supervision of the Malaysian Investment Development Authority (MIDA) as of 31 August 2023, said Minister Of Investment, Trade And Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz today.
In reply to a question raised in the Dewan Rakyat today on how much foreign investment is expected for 2024,, he said of that amount, the expected foreign direct investment (FDI) is as much as RM89.5 billion, while domestic direct investment (DDI) is as much as RM15.8 billion.
This total investment includes projects from the manufacturing sector with a proposed investment of RM73.6 billion involving 53 proposed projects as well as 931 proposed projects in the service sector under the supervision of MIDA with a proposed investment of RM31.7 billion.
The investment coming into all states can be seen through projects that have been successfully approved in the service, manufacturing and primary sectors amounting to RM267.8 billion throughout the year 2022, involving 4,517 projects and expected to create 140,440 job opportunities in this country.
Of this amount, domestic direct investment (DDI) is 39%, while foreign direct investment (FDI) contributes as much as 61%, the minister said.
He added, the five (5) main states approved for investment in 2022 are Johor, Selangor, Sarawak, Kuala Lumpur and Penang. Approved investment in the Klang Valley, which is the Federal Territory of Kuala Lumpur and Selangor, only covers 31.9%.
This shows that the investment approved in Malaysia is not only concentrated in the Klang Valley. In principle, the selection of an investment location by an investor is based on the investor’s own business decision and depends a lot on the ecosystem and the strength of the industrial cluster in a state.
In addition, the Malaysian Government through MIDA provides a package of tax incentives to domestic and foreign investors to encourage these investors to manufacture products or carry out high-value-added and high-tech activities under the Investment Promotion Act 1986.
“In order to reduce the development gap between regions, the New Investment Policy based on the National Investment Aspirations (NIPNIA) also underlines the importance of regional balance. In fact, the New Industrial Master Plan (NIMP) 2030 also sets the mission of “Ensuring economic security and inclusion” as one of the missions in the NIMP,” he explained.
The strength of industrial clusters in each state can complement each other and benefit from economic spillovers from existing clusters. For example, Kedah and Perak benefited from economic spillovers from the Electrical and Electronics (E&E) cluster in Bayan Lepas and Batu Kawan.
This economic spillover will be able to create new industrial clusters or supporting industries such as high-tech manufacturing and research activities and This document is printed through the SSJP System development in High-Tech Parks in Kulim and Perak that can support E&E clusters in Penang.
