Malaysia attracted RM92.8 billion in approved investments in the first quarter of 2026 (1Q26), with the projects expected to create 50,226 new jobs, highlighting the country’s resilience in drawing capital despite ongoing global geopolitical and economic uncertainties.
According to the Malaysian Investment Development Authority (MIDA), the approved investments, spanning 1,249 projects across the services, manufacturing and primary sectors, were marginally lower than the RM93 billion recorded a year earlier.
However, the number of jobs expected to be generated rose 46.7% year-on-year, reflecting a stronger economic and labour market impact from incoming investments.
Foreign investments contributed RM56.2 billion, accounting for 60.5% of total approvals, while domestic investments increased 13% year-on-year to RM36.6 billion, underscoring growing confidence among Malaysian businesses.
Among foreign investors, Japan emerged as the largest source of approved investments at RM21.5 billion, a sharp increase from RM1.6 billion a year ago. China and the US followed with RM10.1 billion each, ahead of Singapore at RM6.7 billion and Thailand at RM2.5 billion.
MIDA Chairman Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the performance reflected Malaysia’s ability to attract more resilient and technology-driven investments.
“Malaysia’s 1Q26 investment performance sends a clear signal — our economic fundamentals are strong. Both global and domestic investors continue to place confidence in this nation,” he said, adding that Malaysia is emerging as a strategic hub for industries that will shape ASEAN’s next phase of growth.
By state, MIDA shared that Selangor led with RM33.5 billion in approved investments, followed by Johor and Kuala Lumpur at RM16.9 billion each, Penang at RM6.2 billion and Sarawak at RM4 billion. The top-performing states continued to benefit from strong inflows into digital infrastructure and data centre-related projects.
The services sector remained the largest contributor, accounting for RM60.8 billion or 65.5% of total approved investments. Information and communications activities led the way with RM38.9 billion, of which data centre and cloud computing projects contributed RM34.6 billion across 33 projects amid rising demand for AI and digital transformation infrastructure.
Manufacturing attracted RM24.1 billion in approved investments across 501 projects and is expected to create 30,468 jobs, representing more than 60% of total projected employment. Key industries included electrical and electronics, chemicals, machinery and equipment, food manufacturing and transport equipment.
The primary sector recorded RM7.9 billion in approved investments, up sharply from a year ago, driven by oil and gas exploration and development activities, particularly in Sarawak.
Meanwhile, MIDA Chief Executive Officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Malaysia’s investment performance reflects the country’s ability to convert approvals into actual projects.
“Despite continued global headwinds, Malaysia remains firmly on investors’ radar, supported by clear policies, strong economic fundamentals, and our ability to move projects from approval to operationalisation,” he said, noting that more than 85% of manufacturing projects approved since 2021 have reached various stages of implementation.
Looking ahead, MIDA is facilitating a pipeline of 182 potential projects worth RM38.3 billion and is in active discussions on an additional RM91 billion in prospective investments, signalling sustained investor interest in high-growth sectors such as semiconductors, artificial intelligence infrastructure, renewable energy and advanced manufacturing.
