KUALA LUMPUR (March 5): Investment promotion agency InvestKL reported a record high of RM8.7 billion in foreign direct investment (FDI) in 2023, more than tripling from RM2.79 billion in 2022. 

This surge in investment, according to its chief executive officer Datuk Muhammad Azmi Zulkifli, underscores the solid confidence of foreign investors in Malaysia's economic potential, specifically in the city of Kuala Lumpur.

"The unprecedented FDI into Greater KL showcases the city’s attractiveness across diverse sectors, such as technology, healthcare, finance, and engineering, signifying a major achievement in our efforts to attract high-value activities. The success demonstrates Greater KL’s maturing business ecosystem, capable of securing and supporting substantial, intricate investments," he told reporters at a press conference on Tuesday following the announcement. 

According to Azmi, 12 leading global corporations from the Americas, Europe and Asia spearheaded the investments, and made their entry into Malaysia in 2023. They included digital and technology firm Cognizant from the US, healthcare company Demant from Denmark, water and environment services provider Beijing Enterprises Water Group Ltd from China, and the London Stock Exchange Group from the UK. 

The report by InvestKL showed that the investments in 2023 generated 8,329 high-skilled jobs, a substantial rise from the 2,805 positions created in 2022. Notably, a significant 81% of these positions were in the digital and technology sectors. 

Since its inception in 2011, InvestKL has managed to secure a total of RM29.79 billion in cumulative FDI. To date, 66% of the investment, or RM19.74 billion, has materialised, leading to the creation of over 27,000 executive jobs. Currently, 74% of these positions are filled, providing Malaysians with an average monthly income exceeding RM14,000.

"I must commend the multinational corporations, because it's not just about them coming in and parachuting 100 expats — they are coming in to hire locals, work with [Malaysian] graduates, and looking at adding [locals] to their mid-management and senior management levels, and that progress has been significant. Eighty per cent of the 27,000 jobs today are occupied by Malaysians," Azmi added. 

While he did not disclose the agency's target for 2024, Azmi said he is optimistic that FDI will continue to pour into Malaysia this year, specifically Greater KL, as InvestKL focuses on more investment in the aerospace sector, semiconductor, as well as energy.

"I'm optimistic about the outlook for 2024, very encouraged by the momentum that we see, [and I am] confident in the ecosystem that is being developed across the country, especially in KL," he said.