INVESTMENT, Trade and Industry Minister Tengku Zafrul Abdul Aziz said approved investment was expected to record stronger growth in the second half (H2) of this year, on track to hit the annual target, after achieving RM132.6 billion worth of approved investment in H1 2023.

“I am pleased with our achievement in H1 2023 in securing RM132.6 billion, representing 60.3% of our annual target.

“This achievement closely mirrors our 10-year average of RM222.6 billion, emphasising our consistent efforts in attracting quality investments and driving economic growth,” said Tengku Zafrul in a statement today.

In H1 2023, Malaysia attracted RM132.6 billion worth of approved investments in the services, manufacturing and primary sectors involving 2,651 projects, expected to create 51,853 job opportunities domestically.

He said the investment was a vote of confidence in the local economy and its offerings, including a government that supported the development of pro-business policies.

The minister said Malaysia was a trusted hub for supply chain, capital, talent, flow of goods and data, and growing innovation capabilities.

He said Malaysia managed to attract a similar amount of approved investments in H1 2023 year-on-year, reflecting confidence in the nation’s economic growth prospects despite global demand slowdown and a higher interest rate environment in key markets.

“Direct domestic investment increased by 58%, representing over 52% of approved investments, which to us is a clear vote of confidence in Madani Economy policies,” he said.

“As various global supply chains shift to Asia, our key aim is to position Malaysia as a regional hub for both international companies and entrepreneurs seeking to expand their footprint in Asia.

“To that end, the recently unveiled New Industrial Master Plan 2023 (NIMP2023) represents a pivotal step in Malaysia’s journey toward sustainable industrial transformation and enhanced global competitiveness,” he said.

Domestic direct investment (DDI) accounted for 52.2% of the approved investment, or RM69.3 billion, driven by investments in the services sector, particularly real estate and primary sector.

Tengku Zafrul said the government’s commitment to ensure quality housing for the people was a major factor in this growth.

He said his ministry and the Malaysian Investment Development Authority remained steadfast in their commitment to achieve a balanced blend of foreign direct investment (FDI) and DDI.

The minister said this balance was clearly demonstrated in the amount of FDI, which contributed 47.8%, or RM63.3 billion, to the approved investments.

He said the country’s FDI mostly came from Singapore, with approved investments totalling RM13.7 billion, followed by Japan (RM9.1 billion), the Netherlands (RM9 billion), China (RM8.4 billion) and the British Virgin Islands (RM7.1 billion).

MIDA chief executive officer Arham Abdul Rahman said Malaysia’s strong economic fundamentals and reputation for being stable, reliable and neutral allowed it to capture quality investments from diverse sources.

“The long-term prospects and outlook for the digital industry remain promising. Companies across a variety of industries continue to build capabilities in data, digitalisation and automation,” he said.

He said there were opportunities from the growing digital economy in Southeast Asia, including in fintech, cloud, cybersecurity and gaming.

“We anticipate sustained demand for tech-related skills across all sectors in Malaysia.

“Our journey towards the future also hinges significantly on our ability to align with global mega-trends, particularly in the context of environmental, social and governance (ESG) practices,” he said.

He said implementing an ESG-based business model, especially by local SMEs, would lead to the nation’s increased competitiveness and stronger presence in the global value chain, propelling the country into a future dictated by sustainable and responsible growth. – Benama, September 17, 2023.