FOREIGN direct investment (FDI) in Malaysia expanded by RM24.1 billion to record RM836 billion at the end of the second quarter of 2022 (Q2) compared with RM812 billion in the first quarter.

In a report released by the Department of Statistics Malaysia, the manufacturing sector remained the largest recipient with a value of RM360 billion or 43.1%, followed by financial activities at 22.7% (RM190 billion), and wholesale and retail trade chalked up 6.3% (RM53 billion).

Chief statistician Mohd Uzir Mahidin said the sources for FDI were largely from the Asia region, which amounted to RM431 billion or 51.6% mainly from Singapore and Hong Kong, followed by Europe and the Americas.

“Singapore remained the biggest FDI, accumulating 20.8% or RM174.1 billion, followed by Hong Kong at 10.9% (RM91.1 billion), the United States contributed 10.8% (RM90 billion) and Japan recorded 10.3% (RM84.2 billion),” he said.

Meanwhile, Malaysia’s international investment position registered net assets of RM62 billion for the period under review compared with net assets of RM47.3 billion in Q1.

Both total financial assets and liabilities increased to RM2.16 trillion and RM2.1 trillion, respectively.

Malaysia’s direct investment abroad (DIA) position increased to RM577 billion compared to RM552 billion at the end of the last quarter.

This investment was largely in financial activities which contributed 42.5% or RM245 billion, followed by mining and quarrying (12.4%) and manufacturing (9.7%).

The top three destinations for DIA position were Singapore with a value of RM118 billion or 20.4%, followed by Indonesia (RM59.8 billion; 10.4%) and the Cayman Islands (RM35.5 billion; 6.1%). – Bernama, August 12, 2022.