KUALA LUMPUR: The Ministry of Investment, Trade and Industry (Miti) expects approved investments to record stronger growth in the second half of 2023 (H2’23), on track to hit its target for the year, after achieving RM132.6 billion worth of approved investment in the first six months.
“I am pleased with our achievement in first-half 2023, 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,” Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement today.
Malaysia attracted a total of RM132.6 billion (US$28.4 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,651 projects from January to June and is expected to create 51,853 job opportunities in the country.
Tengku Zafrul said the investments are a vote of confidence in Malaysia’s economy and its offerings to investors, including a government that supports and develops pro-business policies and continuously enhances the ease of doing business in Malaysia.
The minister said Malaysia is a trusted hub for the ecosystem, supply chain, capital and talent, flows of goods and data and growing innovation capabilities.
Tengku Zafrul said Malaysia managed to attract roughly a similar amount of approved investments in H1’23 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.
“Notably, direct domestic investment increased by 58% and represented over 52% of approved investments which to us is a clear vote of confidence in the 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 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 total 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 has been a major factor in this growth.
He said Miti 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 is clearly demonstrated in the amount of FDI, which contributed 47.8%, or RM63.3 billion, to the approved investments.
He said the country’s source of FDI 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 British Virgin Islands RM7.1 billion.
Five states/zones recorded significant improvement in approved investments, namely Kuala Lumpur (RM31.7 billion), Selangor (RM29.7 billion), Kedah (RM14.6 billion), Johor (RM14.2 billion) and Sabah (RM9 billion).
Together, they accounted for 74.9% of the total approved investments. – Bernama