KUALA LUMPUR (Feb 25): Malaysia secured RM378.5 billion in approved investments in 2024 — the highest in the nation's history — marking a 14.9% year-on-year increase from the previous record of RM329.5 billion in 2023, according to the latest data released by the Malaysian Investment Development Authority (Mida).

The services sector led the surge with RM252.7 billion in approved investments (66.8% of the total), a 50.1% jump from the previous year. The manufacturing sector followed with RM120.5 billion (31.8%), while the primary sector contributed RM5.3 billion (1.4%).

Domestic investments dominated with RM208.1 billion (55%), while foreign investments made up RM170.4 billion (45%). The US, Germany, China, Singapore, and Hong Kong emerged as the top five foreign investors, collectively contributing RM128.9 billion.

Selangor attracted the highest approved investments at RM101.1 billion, followed by Kuala Lumpur (RM91.5 billion) and Johor (RM48.5 billion). These three states and territories, alongside Kedah and Penang, accounted for 84.3% of the total investments.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Mida has set a 5% growth target for approved investments in 2025, in line with the country's projected gross domestic product (GDP) growth. The official forecast for GDP growth in 2025 was set at a range of 4.5% to 5.5%.

"This year is going to be a challenging year because there are a lot of uncertainties with respect to the geopolitical landscape, and as such, we are monitoring and addressing some of the investors' concerns," he told reporters at a press conference organised by Mida on Tuesday.

Despite global uncertainties, Zafrul remains optimistic that strong domestic investments and sustained interest in high-growth sectors like electrical and electronics and the digital economy will continue driving the investment momentum.

As of Jan 31, 2025, Mida is overseeing a robust pipeline of 1,049 projects with proposed investments totalling RM58.8 billion. Additionally, RM63.5 billion in high-potential investment leads are currently being actively negotiated by Mida.

At the press conference, Zafrul also announced the formation of a data centre task force to address concerns and chart the future of data centre investments in Malaysia.

Co-chaired by Zafrul and Digital Minister Gobind Singh Deo, the task force was approved by the National Investment Council and is set to meet next week to discuss industry projections and mitigation strategies.

“After the data centre task force meeting, we will come back and report the decisions,” Zafrul said.

To further strengthen the investment ecosystem, Zafrul added that the government is rolling out a new incentive framework in collaboration with the Ministry of Finance.

The framework, he said, will emphasise generating positive spillover effects for Malaysian companies and local job creation, ensuring that investments in key sectors translate to broader economic benefits.

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