KUALA LUMPUR (March 6): Malaysia’s total approved investments rose 11% to hit a new all-time high of RM426.7 billion in 2025 amid a jump in foreign inflows.
A total of 8,390 projects were approved during the year, with the potential to create 244,902 jobs for Malaysians, according to the latest data by the Malaysian Investment Development Authority (Mida). Domestic investment accounted for 51.5% of the total approved investments.
This year is likely to be challenging amid uncertainty over global trade policies and escalating tensions in the Middle East, said Deputy Minister of Investment, Trade and Industry Sim Tze Tzin.
“We are not taking it lightly,” he said at a press briefing on Friday. "Countries across the world are facing unprecedented challenges, and Malaysia is not an exception, so we will continue to monitor the situation. So I am cautiously optimistic in 2026.”
Neither Sim nor Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid, who was present at the press conference, provided any projection for approved investment growth in 2026.
2025 at a glance
In 2025, domestic investments accounted for RM219.6 billion while foreign investments made up RM207.1 billion. Singapore, China, the US, Japan and Hong Kong were the top five foreign investors.
The services sector led with RM281.3 billion in approved investments, nearly two-thirds of the total while representing a near 10% increase from the previous year. The manufacturing sector saw approved investments totalling RM131.3 billion, while the primary sector accounted for the rest.
By state, Johor attracted the highest approved investments at RM110 billion, followed by Selangor (RM83.9 billion) and Kuala Lumpur (RM63.3 billion). Together with Kedah and Penang, these states accounted for 74.5% of total approved investments.
As of February, Sim said the ministry is overseeing a robust pipeline of 172 projects with proposed investments totalling RM29.1 billion.
Mida is also pursuing RM65.5 billion in high-potential investment leads. “The pipeline is strong. Investor interest has not abated. And we intend to convert every ringgit of that interest into productive investment on Malaysian soil," he said.
Sikh Shamsul added that Mida has yet to observe foreign investors putting their investment plans on hold despite ongoing market uncertainties. “There is still strong interest in data centres, and we are currently evaluating several projects under Mida’s ongoing initiatives,” he noted.