MALAYSIA has attracted a total of RM42.8 billion approved investments in the manufacturing, services and primary sectors, involving 910 projects from January to March 2022 (1Q22).
Malaysian Investment Development Authority (Mida) said today that the foreign direct investments (FDI) remained the major contributor, at 65% or RM27.8 billion, while investments from domestic sources contributed 35% amounting to RM15 billion.
The approved investments for this period are expected to create 24,906 new jobs in the country.
During the period, the manufacturing sector continued to drive the country’s economic recovery, accounting for more than half (70.1%) of total approved investments of RM30 billion, followed by the services sector at RM12.7 billion (29.7%) and the primary sector at RM100 million (0.2%).
“Malaysia remains an attractive investment destination for global investors, with the manufacturing sector maintaining its position as a key pillar of the economy for 2022, generating significant multiplier effects on the nation’s growth.
“Today, we are proud to have over 5,000 companies from more than 40 countries that have made Malaysia their location for manufacturing and related services operations,” Senior Minister and Minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali (picture) said.
Mohamed Azmin highlighted that Malaysia will continue to focus on high growth and high value-added sectors which offer Malaysians more job opportunities.
“Aligning to the 12th Malaysia Plan, Malaysia has been securing new investments that position well with the country’s National Investment Aspirations and Environmental, Social and Governance (ESG) principles.
“This will stand us in good stead to capture more economic opportunities. We look forward to seeing more significant growth for the 2Q22,” he added.
FDI accounted for 65% of approved investments. Of the total investments approved, Germany dominated foreign investments for the 1Q22, with investments totalling RM8.9 billion (32%), followed by Brunei with RM5.1 (18.3%), the US with RM3.9 billion (14%), Hong Kong with RM3.3 billion (11.9%) and Japan with RM3.2 billion (11.5%).
For projects approved by state, five major states, namely Kedah, Penang, Selangor, Sabah and Johor, contributed RM31.8 billion (74.3%) of the total investments approved from January to March 2022.
In terms of top-performing industries in January to March 2022, the electrical and electronics (E&E) took the lead (RM18.6 billion), followed by petroleum products (including petrochemical) (RM5.1 billion) non-metallic mineral products (RM1.9 billion), chemicals and chemical products (RM1.1 billion), machinery and equipment (RM700 million), food manufacturing (RM700 million), paper, printing and publishing (RM300 million) and textiles and textile products (RM300 million).
These industries made up RM28.9 billion (96.3%) of total approved investments for the manufacturing sector.
The capital investment per employee ratio of the projects approved during the period was RM1.38 million compared to RM2.09 million during the same period last year.
“Our efforts to keep our borders open, maintain external connectivity and ensure business continuity have given global companies the confidence to continue to site their projects in Malaysia.
“MITI and Mida will continue our efforts to identify more quality projects to be implemented in the coming years,” added the senior minister.
A total of 21,666 job opportunities are expected to be created in the manufacturing sector, including 1,086 managerial positions and 2,562 technical professionals such as engineers in the fields of E&E, mechanical, chemical and other disciplines, reflecting the manufacturing sector’s higher value chain transition.
As of June 7, 2022, there are 268 projects with proposed investments of RM14.4 billion in the manufacturing and services sectors that are in Mida’s pipeline.
Moving forward, Mida has identified 446 high-profile investment prospects including Fortune 500 companies in the manufacturing and services sectors with a combined potential investment value of RM150.4 billion as of June 1, 2022. — by TMR / pic MUHD AMIN NAHARUL