KUALA LUMPUR (Sept 4): Malaysia secured RM85.4 billion in foreign investments in the first half of 2024 (1H2024), with Austria leading at RM30.1 billion.
This was followed by Singapore (RM16.5 billion), China (RM9.8 billion), the Netherlands (RM4.0 billion), and Taiwan (RM2.4 billion), according to the Malaysian Investment Development Authority (Mida).
The RM85.4 billion in foreign investments accounted for 53.4% of total approved investments of RM160 billion in 1H2024. Domestic investments contributed 46.6% or RM74.6 billion.
The total approved investments of RM160 billion represented an 18% year-on-year increase from RM135.6 billion in the same period last year, Mida reiterated, following Prime Minister Datuk Seri Anwar Ibrahim's announcement of the same on Tuesday.
These investments span the services (RM97.2 billion), manufacturing (RM60.1 billion) and primary sectors (RM2.7 billion), and involve some 2,948 projects, which are expected to create 79,187 new job opportunities across the country.
The top five states or territories attracting the most investments in Malaysia were Kuala Lumpur (RM37.6 billion), Selangor (RM35 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), and Johor (RM12.9 billion).
"Malaysia's strong investment performance is a testament to our commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth," said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Zafrul added that the higher approved investment figures also reflect investor confidence in Malaysia’s clear policies and frameworks, such as the New Industrial Master Plan 2030 and the Green Investment Strategy.
"Miti (the Ministry of Investment, Trade, and Industry) and Mida will continue to market Malaysia’s increasing appeal as a regional manufacturing and services hub to attract high-quality investments and drive sustainable economic growth," he noted.
Services sector dominates investments with ICT leading
In the services sector, which accounted for over 60% of the total approved investments, the sub-sector of information, communications and technology (ICT) drew the most investments at RM45.9 billion.
Other top-performing sub-sectors were real estate (RM31 billion), transport services (RM4.9 billion), utilities (RM4 billion), and global establishments (RM3.6 billion).
Mida is anticipating the sector to create 45,249 jobs.
In the manufacturing sector, Mida said the RM60.1 billion in approved investments across 519 projects is expected to create 33,887 jobs, with 80% reserved for Malaysians. The electrical and electronics sub-sector led with RM36.9 billion in investments, particularly in semiconductors.
Other manufacturing sub-sectors included transport equipment (RM4.7 billion), non-metallic mineral products (RM3.6 billion), chemicals and chemical products (RM3.1 billion), and machinery and equipment (RM2.8 billion).
The primary sector, which secured RM2.7 billion in approved investments across 25 projects, is expected to create 51 jobs, primarily in mining (RM2.4 billion) and agriculture (RM300 million).