The Malaysian Investment Development Authority (MIDA) has showcased Malaysia’s position as a favoured investment hub with the revelation of approved investments worth RM264.6 billion for 2022. Despite a tough economic environment, the country’s manufacturing, services, and primary sectors have exhibited robustness under the “Sustainable Investments for Growth” theme, demonstrating that Malaysia remains a reliable and sought-after choice for global investors seeking secure, lasting prospects.
During the Annual Media Conference (AMC), the Minister of International Trade and Industry (MITI) highlighted the significance of investing in sustainable technologies. He underlined that given the increasing concerns about climate change, it is crucial to invest in sustainable technologies and solutions.
MITI is taking sustainability seriously and is developing policies to encourage companies and industries to contribute to creating a more sustainable and fair world. This necessitates a collective effort by the nation to attract suitable investments that will benefit local SMEs and supply chains and provide employment opportunities for Malaysians. Ultimately, it is about achieving comprehensive socio-economic benefits and securing a better future for all Malaysians.
Malaysia has approved investments worth RM 264.6 billion, expected to create 140,370 job opportunities through a total of 4,454 projects. Foreign Direct Investment (FDI) contributed 61.7% with RM 163.3 billion while Domestic Direct Investment (DDI) made up 38.3% with RM 101.3 billion.
Five (5) states have seen significant investment activity, with Johor having the most approved investments, totalling RM 70.6 billion (USD 16 billion). This is followed by Selangor (RM 60.1 billion) (USD 13.6 billion), Sarawak (RM 28.2 billion) (USD 6.4 billion), Wilayah Persekutuan Kuala Lumpur (RM 25 billion) (USD 5.7 billion) and Pulau Pinang (RM 16.3 billion) (USD 3.7 billion).
The Chairman of MIDA acknowledged that the impressive investment results are a culmination of the collective efforts of stakeholders towards promoting economic growth, social stability, talent development, sustained economic inclusivity, and the advancement of Malaysia’s digital economy. This demonstrates the country’s commitment to fostering a conducive business environment and attracting foreign and domestic investments to support Malaysia’s overall economic growth and development.
Services Sector Dominates
- Malaysia’s services sector saw a 58.8% increase in investments to RM 154 billion, with 3,581 projects expected to create 63,464 new jobs.
- Foreign investment accounted for 55.1% of total investments in the services sector, worth RM 84.9 billion, while domestic investment made up the remaining 44.9%, or RM69.1 billion.
- The information and communications sub-sector led the services sector, with investments worth RM 84.7 billion, or 55% of total investments.
- Within the information and communications sub-sector, there were five projects related to ICT services, with investments of RM 72.4 billion, or 85.5% of the total investments in the sub-sector.
- These investments include data centres and cloud computing services, reflecting the growing importance of the digital economy in Malaysia.
Manufacturing Sector
- The manufacturing sector contributed RM 84.3 billion (USD19.1 billion), or 31.9% of total approved investments in Malaysia.
- FDI accounted for 78.3% of total approved investments in the manufacturing sector.
- Electrical and electronics (E&E) is the top-performing industry in the manufacturing sector.
- A total of 76,093 potential new job opportunities are expected to be created in the manufacturing sector, reflecting the higher value chain transition of this sector.
The Primary Sector
The primary sector attracted RM 26.3 billion (USD 6 billion) in approved investments, contributing 9.9% to the total investments. Domestic investment dominated the primary sector with RM 13.9 billion (USD 3.1 billion), accounting for 52.9% of the total investment. Foreign investment recorded 47.1% or RM 12.4 billion (USD 2.9 billion) of the approved investments.
Looking ahead
MIDA has a pipeline of promising projects with a potential investment of RM 14.6 billion (USD 3.3 billion), indicating robust growth potential for Malaysia’s economy. The manufacturing sector has 31 projects with a potential investment of RM 10.6 billion (USD 2.4 billion), while the services sector has 218 projects with a potential investment of RM4 billion (USD 0.9 billion).
Malaysia’s Finance Minister stated that Malaysia is striving to become ASEAN’s digital hub due to its advanced ICT infrastructure, skilled STEM workforce, strong intellectual property protection, and rule of law. He also mentioned that the revised New Industrial Master Plan 2030 will highlight new growth opportunities, improve the ease of doing business, and attract high-quality digital investments.
MITI and its agencies, including MIDA, will strive to attract top-notch digital investments, create growth opportunities through data and cloud-based technologies, and generate high-paying jobs for Malaysians. The government aims to achieve balanced growth and sustainable economic development that benefits all stakeholders, ensuring prosperity for the people as the country seeks to become Asia’s investment gateway.
