KUALA LUMPUR (May 29): Malaysia attracted approved investments worth RM71.4 billion in the manufacturing, services and primary sectors for the first quarter (1Q) of 2023, according to the Malaysian Investment Development Authority (Mida).

The government’s principal investment promotion and development agency said this involves 1,265 projects that are expected to generate 23,977 new job opportunities.

“With its conducive investment landscape, Malaysia continues to capture more foreign direct investments (FDI) than domestic direct investments (DDI).

“FDI contributed RM37.5 billion, representing 52.5% of the total approved investments,” Mida said in a statement on Monday (May 29).

Singapore leads with approved investments totalling RM11.5 billion, followed by the British Virgin Islands (RM7.1 billion), China (RM6.5 billion), Hong Kong (RM2.9 billion), and South Korea (RM2.5 billion).

Meanwhile, DDI accounted for RM33.9 billion, reflecting domestic investors’ renewed confidence in Malaysia’s economic progress and prospects, the agency said.

On approved projects by state, Mida said the top five states that attracted a significant portion of the approved investments were Kuala Lumpur with RM21.8 billion, followed by Johor (RM10.6 billion), Selangor (RM7.4 billion), Perak (RM7.1 billion), and Sabah (RM6.3 billion).

In terms of sector, the services sector drew the lion’s share of approved investments at RM53.6 billion (with over 12,000 job opportunities), followed by the manufacturing sector (RM15.6 billion, over 11,900 new jobs), and the primary sector (RM2.2 billion).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s ability to attract RM71.4 billion in approved investments for the quarter underscores the country’s continued appeal as an investment powerhouse.

“Both foreign direct investments and domestic investments almost match each other in value. From a domestic perspective, this clearly reflects renewed confidence in Malaysia’s growth prospects.

“All these will have a positive spillover impact, particularly on the small and medium enterprises in our domestic supply chain, and on the rakyat (people) in terms of better-paying jobs, which will help support our economy in the face of various global challenges this year,” he said.

Malaysia’s investment landscape presents bright prospects, with a pipeline of proposed investments and lead projects overseen by Mida.