Malaysia attracts RM139.3b investments in first nine months

KUALA LUMPUR (Dec 20): Malaysia attracted RM139.3 billion in approved investments in the manufacturing, services and primary sectors in the first nine months of 2018, a rise of 18% from RM118.1 billion during the same period last year.

The Malaysian Investment Development Authority (MIDA), which announced this in a statement today, said the investments covered 3,243 projects and are expected to create 93,379 job opportunities in the country.

MIDA said Malaysia saw a 109.7% increase in foreign direct investment during the January-September period this year to RM64.1 billion, from RM30.55 billion in the same period last year, due mainly to the 249.4% growth recorded in the manufacturing sector.

“Approved FDI in the primary sector also rose by 99.3%. This indicates that investor confidence in Malaysia remains high, despite the challenging global economic environment.

“Meanwhile, domestic investments led with RM75.2 billion, contributing 54% to the total approved investments in all three sectors,” the agency said.

MIDA also highlighted that the manufacturing sector saw an increase of 70.5% in capital investments for the first nine months 2018 with a total of 468 projects worth RM59.1 billion, compared with RM34.6 billion stemming from 463 projects for the same period in 2017

Foreign investments approved in the manufacturing sector recorded a total of RM48.8 billion in January-September 2018, a rise of 249.4% from RM13.9 billion in the same period last year.

China accounted for RM15.6 billion or 32% of total foreign investments, followed by Indonesia (18.4%), the Netherlands (17%), the US (6.3%), South Korea (4.9%) and Japan (4.3%).

Approved investments in the services sector, meanwhile, amounted to RM69.9 billion in the first nine months of 2018, compared with RM74.2 billion in the same period of 2017, consisting of 2,721 projects, which are expected to create 50,896 job opportunities.

Domestic investments made up the largest portion, recording RM60.4 billion or 86.45% of the total approved investments for the services sector during this period. The balance of RM9.5 billion were from foreign sources, said MIDA.

“The services sub-sectors that showed increase in approved investments were healthcare, education, global establishments, real estate, and supporting services,” it said.

MIDA said the government will ensure that the Malaysian economy remains on a sustainable growth trajectory by providing a conducive and favourable environment to attract investors and businesses.

“Quality FDI continues to assume an important role in the development of Malaysia due to its multiplier impact on the economy,” it said.

“The strong presence of foreign investments in the manufacturing sector, in particular, has helped to enlarge the market through the growth of the local supply chain ecosystem and related services industry.

“MIDA continues to urge industries to leverage on growing opportunities by embracing advanced technology to enhance productivity and competitiveness.” it added.

Source: TheEdgeMarkets