KUALA LUMPUR (Jan 29): Malaysia will take a more strategic approach towards new foreign investments, prioritising value-added projects and fast movers that can execute commitments quickly, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.

Speaking during his keynote address at the Malaysia Economic Forum 2026 Outlook on Thursday, Johari explained that this was because while investor demand remains strong, the nation is constrained by limited land and resources.

Using the recent surge in data centre investments as an example, Johari noted that the Malaysian Investment Development Authority continues to see strong interest from foreign investors.

However, the agency is unable to proceed with some of the new applications as certain approved commitments from earlier — including those approved two years ago — have yet to make any progress.

“We welcome all investors, but we cannot wait for you. There are so many people who want to come here,” Johari said, adding that investors with a proven ability to move quickly will be prioritised.

And utility providers must be prepared to support the increased capacity required by these facilities. Hence, committed data centre capacities must materialise promptly, otherwise the excess electrical or water capacity built to cater for them will remain idle.

“If they don’t come, we cancel. Bring someone who’s coming in now and wants to start tomorrow,” he said.

Malaysia has seen a significant upward trend in foreign direct investments in recent years. Foreign investments in the first nine months of 2025 jumped 47.5% year-on-year to RM150.8 billion. These strong investment commitments suggest the country is on track to surpass 2024’s record RM170.4 billion.

Meanwhile, Johari noted that in 1992, Malaysia committed to maintaining at least half of its land area under forest cover. With the current figure at 54%, there is little margin left for further deforestation.

This also has implications on the development of Malaysia’s rare-earth resources, which are predominantly located beneath forest reserves, complicating extraction and development efforts.

This is a challenge that Malaysia and its potential partners will need to resolve before further progress can be made. “We are open; whoever can solve our problems, they will have the first advantage,” Johari said.