FOREIGN direct investments (FDI) in the manufacturing sector for January-September 2018 tripled to RM48.8 billion year-on-year, said the International Trade and Industry Ministry.

“The latest figures show that FDI in manufacturing (January-September 2018) is RM48.8 billion compared with RM14 billion for the same period last year,” Deputy Minister Ong Kian Ming told Parliament today.

Ong was responding to a question from Mahdzir Khalid (Padang Terap-BN) on the amount of FDI into Malaysia in 2018 and the size of China’s investments.

The total FDI into Malaysia (January-June 2018) was RM26.5 billion, said Ong.

“Manufacturing contributed the most with RM15.2 billion, with services garnering RM6 billion and primary industries RM5.3 billion.

“In the manufacturing sector, FDI from China was the highest at RM6.6 billion followed by South Korea (RM2.4 billion), Japan (RM1.6 billion), and Singapore (RM800 million),” said Ong.

In primary industries, China’s FDI was highest in rubber products (RM3.1 billion), steel products (RM2.9 billion), followed by petroleum and petrochemical products (RM309 million).

Ong said that Malaysia remains committed to China’s Belt and Road Initiative and would not lose out in FDI to neighbouring countries such as Indonesia and Vietnam.

“Malaysia want to encourage FDI in high-technology industries that are environmentally friendly, give opportunities to SMEs to participate, and create job opportunities for Malaysians.

“As a result of our restrictions on the use of foreign labour, lower value industries will go to other countries. We only want higher quality investments,” said Ong.

Ong was responding to a question from Mahdzir on where Malaysia stood in regards to competition for FDI from Vietnam and Indonesia. – November 19, 2018.