Malaysia’s International Investment Position (IIP) transitioned to a net liability of RM9.6 billion at the end of the fourth quarter of 2025, according to the latest data from the Department of Statistics Malaysia (DOSM).
This marks a significant shift from the third quarter of 2025, which saw net assets of RM77.3 billion. The reversal is primarily attributed to a robust increase in foreign investments into the country, which outpaced Malaysian investments abroad. At the close of 2025, Malaysia’s total financial assets stood at RM2.56 trillion, while total liabilities reached RM2.57 trillion.
Foreign Direct Investment (FDI) into Malaysia continued its strong upward trajectory, growing by RM47.5 billion in the final quarter. The total FDI position now stands at RM1,069.0 billion, reflecting continued global confidence in the Malaysian economy.
Top FDI Sources & Sectors includes from Singapore as top investor (RM302.3 billion), followed by Hong Kong (RM148.4 billion) and Japan (RM103.8 billion).
The Services sector remains the primary magnet for foreign capital, accounting for 55.0% (RM587.5 billion) of total FDI. The Manufacturing sector follows at 38.2% (RM408.9 billion), with Mining & Quarrying making up 4.0%.
While inbound investment grew, Malaysia’s Direct Investment Abroad (DIA) position saw a decrease, falling to RM587.4 billion from RM615.8 billion in the previous quarter.
Primary Destinations: Singapore continues to be the preferred destination for Malaysian companies, receiving 25.8% (RM151.5 billion) of total DIA. Other major destinations include Indonesia (RM65.9 billion) and the Cayman Islands (RM41.7 billion).
Sector Distribution: Similar to FDI, the Services sector led outbound investment at RM440.2 billion, followed by Mining & Quarrying (RM67.6 billion) and Agriculture (RM43.7 billion).
The shift from a “net asset” to a “net liability” position in the IIP is often a sign of an economy successfully attracting high levels of foreign capital. In Malaysia’s case, the record-breaking FDI position indicates that external investors are committing more resources to the country than Malaysian entities are currently deploying overseas.
