Malaysia’s International Investment Position (IIP) swung into a net asset position of RM68.3 billion at the end of the second quarter of 2026 (2Q 2026), from net liabilities of RM67.8 billion in the preceding quarter, according to the Department of Statistics Malaysia (DOSM).
The turnaround reflected a stronger external balance sheet, with Malaysia’s total financial assets rising to RM2.82 trillion, while total financial liabilities stood at RM2.75 trillion as at end-June 2026.
Malaysia’s Direct Investment Abroad (DIA) position also strengthened significantly during the quarter, increasing by RM35.8 billion to RM624.9 billion from RM589.1 billion in 1Q 2026.
The Services sector remained the largest contributor to Malaysia’s overseas investment position at RM440.1 billion, followed by Mining and quarrying at RM106.2 billion and Agriculture at RM45.5 billion.
In terms of destinations, Singapore remained the largest destination for Malaysian investments abroad, accounting for RM155.6 billion or 24.9% of total DIA.
Indonesia followed with RM61.4 billion or 9.8%, while the United Kingdom ranked third with RM59.5 billion or 9.5%.
Meanwhile, Malaysia’s Foreign Direct Investment (FDI) position edged higher to RM1.11 trillion at the end of 2Q 2026, compared with RM1.1138 trillion in the first quarter.
The Services sector continued to dominate Malaysia’s FDI position, accounting for RM630.9 billion or 56.6% of the total.
Manufacturing was the second-largest recipient, with an FDI position of RM384.9 billion or 34.5%, while Mining and quarrying accounted for RM67.8 billion or 6.1%.
Singapore remained Malaysia’s largest source of foreign direct investment, with an FDI position of RM307.6 billion, representing 27.6% of the total.
Hong Kong followed with RM153 billion or 13.7%, while Japan ranked third at RM107.8 billion or 9.7%.
The latest figures point to Malaysia maintaining strong cross-border investment linkages, with the Services sector continuing to play a central role in both the country’s overseas investment footprint and its ability to attract foreign capital.
