Malaysia’s Direct Investment Abroad (DIA) recorded a significant moderation in 2025, with net outflows declining to RM12.4 billion from RM35.5 billion in the previous year, according to data released by the Department of Statistics Malaysia (DOSM).
Despite the lower outward investment flows, Malaysian companies operating overseas continued to deliver substantial returns, generating RM39.9 billion in investment income in 2025, compared with RM45.4 billion recorded in 2024.
The overall DIA position stood at RM589.3 billion as at the end of 2025, lower than RM622.1 billion a year earlier, reflecting adjustments in overseas investment positions amid changing global economic conditions.
The Services sector remained the largest contributor to Malaysia’s outward investment flows, recording net outflows of RM15.6 billion during the year. The sector’s investments were mainly concentrated in financial and insurance/takaful activities, highlighting the continued expansion of Malaysian financial institutions and service providers abroad.
Other sectors contributing to DIA outflows included Construction, which recorded RM3.0 billion, and Mining & quarrying at RM2.0 billion.
In terms of investment returns, the Services sector continued to lead, generating RM25.3 billion in income from overseas operations. This was followed by the Mining & quarrying sector with RM7.8 billion, while the Agriculture sector contributed RM2.9 billion.
The Services sector also remained the largest component of Malaysia’s cumulative DIA position, accounting for RM440.2 billion as at end-2025, although this was lower compared with RM463.7 billion in 2024.
The strong position of the Services sector was largely driven by investments in financial and insurance/takaful activities, reflecting Malaysian companies’ growing international presence in banking, financial services and related industries.
The Mining & quarrying sector followed with a DIA position of RM68.9 billion, while Agriculture recorded RM44.0 billion.
Regionally, Africa emerged as the largest destination for Malaysia’s DIA flows in 2025, attracting RM7.0 billion, with significant investments channelled into countries including Mauritius and Angola.
However, Asia remained Malaysia’s preferred destination for overseas investments, maintaining the largest cumulative DIA position at RM339.0 billion as at end-2025.
The latest figures indicate that while Malaysian companies adopted a more cautious approach in expanding overseas investments, they continued to maintain sizeable international assets and generate steady income from global operations.
