Services, Manufacturing Contribute Bulk Of RM160 Bln Investments In First Half Of 2024 - Tengku Zafrul

Malaysia has demonstrated its resilience and continued appeal to investors amid the global economic uncertainty by attracting a substantial 18% year-on-year increase in approved investments to RM160 billion across the services, manufacturing, and primary sectors from January to June 2024 (1H 2024).

This surge in investment was backed by a substantial 2,948 investment projects, which are expected to create 79,187 new job opportunities.

“Malaysia's strong investment performance of RM160 billion, representing an 18% year-on-year increase in the first half of 2024 is a testament to our commitment to creating a pro-investment, business-friendly environment that fosters industrial transformation and economic growth,” Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Zafrul Aziz said in a statement.

He said Asean is forecast to grow at 4.6% in 2024 and 4.7% in 2025 on solid improvement in both domestic and external demand, and Malaysia is determined to capture this growth.

“The 1H 2024 approved investment figures reflect how investors appreciate Malaysia's clear policies that provide a conducive landscape for companies to thrive. Driven by our robust frameworks, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy and the Green Investment Strategy, more and more global businesses have begun to recognise Malaysia's vast potential,” he added.

“MITI and the Malaysian Investment Development Authority (MIDA) will continue to market Malaysia's increasing appeal as a regional manufacturing or services hub to attract high-quality investments and drive sustainable economic growth while ensuring more business opportunities for our SMEs and higher-skilled jobs for Malaysians,” he said.

Meanwhile, MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said for the first half of 2024, the agency witnessed a remarkable value of approved investments that underscored Malaysia's commitment to inclusivity and national prosperity.

“These investments are not just figures on paper; they represent our dedication to creating a more equitable and thriving economy. The approvals recorded aligned with the second quarter gross domestic product (GDP) achievement of 5.9%, driven by enhanced investment activities, among others.

“The true measure of success lies in the implementation of these approved projects, which will drive positive macro-economic performance of the country and spillover effects across communities. MITI and MIDA's focus remains on ensuring that every investment contributes to a more prosperous and inclusive future for all Malaysians, forging a path towards innovation and economic resilience, further strengthening our industrial ecosystem and domestic supply chains,” he added.

MITI said domestic investments (DI) took the lead in 1H 2024, making up a significant 53.4% of the total approved investments, valued at RM85.4 billion. “This is a clear sign of domestic businesses' continued growth and confidence in the country's economic policies. In contrast, foreign investments (FI) accounted for 46.6% of the total approved investments, worth RM74.6 billion.”

It noted that while both domestic investment and foreign investment play an important role in supporting Malaysia's economy, the marked increase in domestic investment's contribution to the country's growth is a clear indication of local businesses' confidence.

The top five states that attracted the most investment in Malaysia are Kuala Lumpur (RM37.6 billion), Selangor (RM35.0 billion), Kedah (RM31.9 billion), Pulau Pinang (RM13.1 billion), and Johor (RM12.9 billion).

A stable MADANI government and a robust business-friendly environment are among the key value propositions for Malaysia to continuously attract foreign investments.

Austria led the approved investments with RM30.1 billion, followed by Singapore with RM16.5 billion, China (RM9.8 billion), the Netherlands (RM4 billion).

Malaysia's manufacturing sector has emerged as a bright spot in the country's economic landscape, attracting RM60.1 billion in approved investments in the first half of 2024. This represented a 34.1% increase from the RM44.9 billion recorded in the same period last year, indicating a strong rebound in investor confidence, said the ministry.

Electrical and electronics (E&E) is the major industry underpinning Malaysia's manufacturing economic growth with approved investments of RM36.9 billion.