Malaysia’s RM815 billion investment pipeline could create close to 245,000 jobs if fully realised, but its long-term success will depend on whether it produces higher incomes, stronger local companies and meaningful technology transfer.
Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said the investments approved over the past two years were equivalent to almost half of the country’s annual GDP.
“Much of the capital is being directed towards advanced manufacturing, semiconductors, digital technologies and modern machinery, sectors expected to expand Malaysia’s productive capacity and reshape the economy.
“The challenge for us from the outset was not to simply attract more investment, but to attract the right kind of investment,” Abdul Rasheed said in his keynote address at Sasana Symposium 2026.
He shared that a sizeable portion of the potential jobs is expected to involve higher-skilled work, offering Malaysia an opportunity to lift productivity, wages and living standards.
The share of high-skilled employment increased from 27.5% in 2019 to 30.1% in 2025. However, more than two-thirds of Malaysians remain employed in low- or mid-skilled roles.
Abdul Rasheed said creating new jobs was only half the equation; Malaysians must also possess the skills needed to fill them as artificial intelligence and other technologies transform industries.
“Employers, educational institutions, training providers and policymakers must work more closely to strengthen technical, digital and analytical capabilities.
“For these skills to result in better outcomes, they will have to go hand in hand with a labour market that rewards rising skills and productivity with higher pay,” he said.
Meanwhile, the governor also cautioned that the value of the RM815 billion pipeline should not be judged solely by the amount of capital entering Malaysia.
“Its true impact will depend on whether local companies become more capable, workers acquire new expertise, technologies spread across the economy and productivity improves.
“The objective is therefore not simply to bring investment into Malaysia. It is to ensure that investment leaves something behind,” Abdul Rasheed said, emphasising that this would require Malaysian firms to automate, participate more deeply in global supply chains and gain access to financing that enables them to expand and compete.
Abdul Rasheed said Malaysia’s next growth phase must move from value extraction towards value creation and retention, with greater emphasis on innovation, research and development, advanced engineering and domestic talent.
The RM815 billion pipeline may provide the capital for Malaysia’s next economic leap. The bigger test is whether that capital translates into stronger businesses, better-paying jobs and lasting opportunities for Malaysians.
