Malaysia recorded a strong rebound in foreign direct investment (FDI) in 2025, with inflows rising 41.2 per cent year-on-year to RM65.9 billion compared with RM46.7 billion in 2024, according to the latest data from the Department of Statistics Malaysia (DOSM).
The increase lifted Malaysia’s cumulative FDI position to RM1.09 trillion as at the end of 2025, up from RM993.9 billion recorded a year earlier.
Meanwhile, income generated by foreign enterprises operating in Malaysia stood at RM98.2 billion in 2025, slightly lower compared with RM100.6 billion in 2024.
DOSM said the Services sector remained the main driver of FDI growth, attracting net inflows of RM59.5 billion in 2025, significantly higher than RM35.6 billion recorded in the previous year.
The Mining and quarrying sector followed with RM3.0 billion, while the Manufacturing sector recorded RM2.6 billion in FDI inflows.
Within the Services sector, investments were mainly channelled into Information and communication activities as well as Financial and insurance/takaful activities, reflecting Malaysia’s growing appeal as a regional digital and financial hub.
The Manufacturing sector’s inflows were supported mainly by Electrical and electronic (E&E) products, alongside non-metallic mineral products, basic metal and fabricated metal products.
Singapore, Hong Kong and China emerged as the largest sources of FDI inflows into Malaysia during the year.
Despite receiving lower FDI inflows compared with Services, the Manufacturing sector remained the largest contributor to foreign investment income in 2025.
The sector generated RM55.5 billion in FDI income, compared with RM54.2 billion in 2024, driven mainly by strong performance in the E&E industry.
The Services sector was the second-largest contributor, generating RM35.4 billion in FDI income, supported by Financial and insurance/takaful activities as well as Wholesale and retail trade.
Investors from the United States, Singapore and Hong Kong recorded the highest earnings from their investments in Malaysia during the year.
In terms of Malaysia’s total accumulated FDI position, the Services sector continued to account for the largest share at RM596.7 billion as of end-2025.
DOSM said this was mainly driven by investments in Financial and insurance/takaful activities, Information and communication, and Wholesale and retail trade.
The Manufacturing sector ranked second with a cumulative FDI position of RM419.3 billion, largely supported by investments in Electrical and electronic products.
Singapore, Hong Kong and Japan remained the largest contributors to Malaysia’s overall FDI position.
The latest figures highlight Malaysia’s continued attractiveness among global investors, particularly in high-value services, digital infrastructure and advanced manufacturing sectors, amid ongoing efforts to strengthen the country’s position in regional supply chains.
