KUALA LUMPUR (June 26): After Malaysia’s approved investment grew 13% in the first quarter (1Q2024), the country's approved investment growth for 2024 should at least match its annual gross domestic product (GDP) growth, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Malaysia achieved a record year in 2023, with approved investments totalling RM329.5 billion, up 23% from RM267.7 billion in 2022. Of 2023’s tally, 57.2% of the approved investments came from foreign capital and 42.8% from domestic investments.

The official forecast for GDP growth this year is 4% to 5%.

“We are still working on this year’s [approved investment] target. The number that Malaysian Investment Development Authority (Mida) had given me, I cannot accept at the moment because I think it is low balling,” Zafrul said at the Stratum Focus Series, jointly held by Bursa Malaysia and Hong Leong Investment Bank (HLIB) on Wednesday.

“With the first quarter (1Q2024) approved investment already up 13%, how can it be flat? To me, there should be at least a positive correlation with the GDP growth. This year’s GDP growth is between 4% and 5%, so approved investment should grow at least one time that rate.

“Of course, we can see from the pipeline of projects and investments, [that] it looks very strong,” he added.

It was reported that Malaysia recorded approved investment amounting to RM83.7 billion in the first three months of 2024 (1Q2024), marking a 13% increase from the RM74.1 billion recorded in the previous year’s corresponding period.